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December 27, 2016
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November 7, 1986
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. ... .............. Declassified in Part - Sanitized Copy Approved for Release 2011/12/22 : CIA-RDP88GO1332R000901030004-5 ROUTING AND TRANSMITTAL SUP Name, office symbol, room number, Udint Agency/Post) ECA/DDA IRO/DDA DDA/Registry For Your Infownstion Pummem Investi ate oMihation Justiy C,1 PD/oiJ' rec v~ c~~, . J en+ '1e OCA 4; - o.~'1-:.. 17 Nov 86 Prepare Repy See N. Snature DO NOT use this form as a RECORD of approvals. Concurrences, disposals, clearances, and similar actions FROM: (Name, org. symbol, Agency/Post) Room No.-Bldg. n U S.G.a.O.: 1983 -421-529/320 OffXW& FORM 41 (Rev. 7-76) Intl ~1 M 101-11.206 Declassified in Part - Sanitized Copy Approved for Release 2011/12/22 : CIA-RDP88GO1332R000901030004-5 a.,...e~..~:...,...~- Declassified in Part - Sanitized Copy Approved for Release 2011/12/22 : CIA-RDP88GO1332R000901030004-5 ,c.,C... F" _- TO: ACTION :INFO DATE INITIAL 1 DCI 2 DDCI 3 EXDIR 4 D/ICS 5 DML -mm DDA 8 DDS&T 9 Chm/NIC 10 GC 11 IG 12 Compt 13 D/OLL - 4 D/PAO 15 D/PERS 16 VC/NIC 17 IP 18 19 20 22 STAT Executive Secretary 14 NOV 86 Date Declassified in Part - Sanitized Copy Approved for Release 2011/12/22 : CIA-RDP88GO1332R000901030004-5 Declassified in Part - Sanitized Copy Approved for Release 2011/12/22: CIA-RDP88GO1332R000901030004-5 BILL FRENZEL TNMO D,STNICT, MINNESOTA WASHINGTON OFFICE: 1026 LONSwo11TN BUILDING 202-225-2671 Congrea of ttje 1niteb Otate; out of tpre5entatibeo Nagfjington, IDC 20515-2303 November 7, 1986 Mr. William J. Casey Director Central Intelligence Agency Washington, D.C. 20505 Dear Mr. Casey: MNINI $OTA ONICt: 11o0M 445 6120 hNN AvINuc SOUTH 6LOOMINSTON, MN 66431-1326 $12-481-4600 Mr. John L. O'Neill, Jr. of the Department of Minnesota, Veterans of Foreign Wars has forwarded to me a copy of his recent correspondence with you regarding the authenticity of Mr. David MacMicheal's claim to be a former CIA analyst. A copy of Mr. O'Neill's letter is enclosed for your reference. I would greatly appreciate your sharing a copy of your reply to Mr. O'Neill with me. Thank you for your assistance. Yours ver truly, Bill Frenzel Member of Congress BF: jd C Declassified in Part - Sanitized Copy Approved for Release 2011/12/22 :_CIA-RDP88GO1332R000901030004-5 Declassified in Part - Sanitized Copy Approved for Release 2011/12/22 : CIA-RDP88GO1332R000901030004-5 DEPARTMENT OF MINNESOTA VETERANS OF FOREI,110 GN WARS OF THE UNITED STATES BOX 17146, RICE ST. STATION 20 WEST 12TH ST. PHONE 612/291 17 s7 ST. PAUL, MINNESOTA 55117 VETERANS SERVICE BUILDING ST. PAUL, MINNESOTA 55155 00V ('t 110 October 30, 19861 LARRY ZIEBARTH State Commander DEAN MEANS Senior Vice Commander RICHARD CARROLL Junior Vice Commander LES ORTON Adjutant/Ouarlermaster MICHAEL BRAINARD Judge Advocate JOE SCHIRMERS Surgeon REV ROMAN SCHAEFER Chaplain LEN KELLER Chief of Staff KENNETH J. HENDRICKSOI Chief Inspector PATRICK T. BOHMER Past Commander JAMES HESSELGRAVE Assistant AdlutantOuar 1e, master ROBERT E. HANSEN Past Commander in-Chief JOHN S. STAUM Past Commander in Chief PATRICK T. BOHMER National Council Member HAROLD PAINE 1st District Commander JAMES MURTAUGH 2nd District Commander WALLACE DICKMEYER 3rd District Commander FRANK M. SCHMIDT 4th District Commander HARROL D. COLLINS 5th District Commands, GARLAND JOHNSON 6th District Commander DALE HURDLIK 7th District Commander MARTIN A. STEINBACH 8th District Commander CLARENCE ANDERSON 9th District Commander William J. Casey, Director CIA Old Executive Office Building 17th Street and Pennsylvannia Ave NW Washington, D. C. 20506 [,ru#rie ii~ i t $C'-5093x Dear Mr. Casey: I had been contacted by Tim Dunn of the Minnesota Public Interest Research Group to debate David Mac Michael about U.S. Policy in Nicaragua on Friday, October 17, 1986. Unfortunately, I was scheduled to attend meetings in Detroit, Michigan that weekend and had recommended Earl Pike. MacMichael claims to have been "a former CIA Analyst, a Counter-- insurgency expert, who once analyzed Central America intelligence information for the CIA". I have heard that MacMichael never was a CIA employee but worked for a contract firm. I would like to know if MacMichael was a CIA employee. To your knowledge, does MacMichael-qualify to be a counter Insurgency expert regarding Central America? I believe it is time to clear the air and correct the mis-state- ments and half truths by people such as MacMichael who seem to prosper on their criticism of our government. While I realize there might be reason to say such information might violate the Privacy Act, there should also be reason to correct any false or mis-leading statements. National Security Chairman Department of Minnesota Veterans of Foreign Wars CC: U.S. Senator Durenberger U.S. Congressman Frenzel VFW National Security Director Steadman State Commander Ziebarth Earl Pike ohn L. O'Neill, Jr` Declassified in Part - Sanitized Copy Approved for Release 2011/12/22 : CIA-RDP88GO1332R000901030004-5 im realla - U, 1 1 k Declassified in Part - Sanitized Copy Approved for Release 2011/12/22 : CIA-RDP88G01332R000901030004-5 plan approved by Reagan did not G opt . lies fpecistoill for the planting of false stories in in the U.S. media.' According Irene Kirkpatrick Woodward cites a whole series of to deliberately false statements by ('Journalists shouldn't be so gullib- U.S. officials linking U.S. diplomatic $e, Oct. 14), we must hold the and military activity to action press, not the govemment, ac- % against Gadhafi. He quotes docu- disinformation. Kirkpatrick equates the disclosures about disinforma- tion with accounts of one ambassa- dors expenses. She claims that in both cases, the original news ac- counts `changed.' And she chiefly blames the problem on ' 'authorita- tive' but anonymous sources.' It would take a statement of equal length to untangle this mass of misrepresentation. Take only one example: the assertion that Bob Woodward's original account of disinformation 'changed.' Kirkpa- trick writes that Woodward initially implicated top government officials in encouraging Gadhafi's assassina- tion and targeting the press in their disinformation campaign. With more information, Woodward's story changed, said Kirkpatrick. Woodward wrote that the National Security Decision Document ex- cluded assassination and specified that deception was to be directed against Gadhafi, not the U.S. press. Let's look at the actual Woodward accounts. The original story ( Wash- ington Post, Oct. 2) says almost nothing about Kirkpatrick's first 'implication' - assassination. It does refer to the 'presidentially authorized, year-long CIA effort to - oust' Gadhafi. Further, this story clearly states that "the mid-August ments tying these statements to the disinformation campaign. But this takes up less than one-quarter of the story. Nowhere does Wood- ward say that this campaign made ,the U.S. press the principal target.' That is Kirkpatrick's, not wood, ward's 'implication.' How did Woodward's actual ac- count 'change?" We are given an alleged Woodward statement (but no source) negating Kirkpatrick's 'implications." We find part of the statement in Woodward's Oct. 5, Washington Post report. The final decision document on disinforma- tion, he writes, "did not mention assassination.' He had just quoted a State Department working paper, which did mention it. But the rest of the alleged statement? It appears nowhere in this or any other Woodward account. It is another of Kirkpatrick's inventions. Woodward's story did not change. It is not the conduct of Woodward but the conduct of our government that is in question. It was systematic lying inside and outside of govern- ment that led us into and kept us in Vietnam. It was systematic lying, again, that initiated and perpetu- ated Watergate. If now we shrug it off, because maybe we don't like Gadhafi, we only prepare the way for further disaster. hostile venue. As stated in the Daily's editorial ("Debate, at last, Oct. 16),"War advocates ... must be heard and challenged.' It is disturbing when anyone exhibits a reluctance to thoroughly examine arguments which he or she dis- agrees with. Most of the questions asked evi- denced similar views to those of MacMichael. There was, however, one question asked about alleged Sandinista religious persecution and press censorship. One could tell by the muted hisses and hostile grum- blings from the rest of the audience that this was not a 'correct' ques- tion. Although I oppose aid to the Contras, I am glad the question was asked. The prime focus of suc debate should be to address difficult issues and not merel' provide a forum for prerecou- Contra- or Sandinista-bashing It is the mark of immaturity tc desperately attached to one's that any counter ideas are pe ceived as an immediate threa warranting attack. Just as the - amined life is not worth living- unexamined opinion is not w having. Charles Betz Honors student, Freshman, CLA Is that what we really want? Eric Shambach Extension student Both sides now Kudos to all who helped make last Friday's Nicaragua debate such a resounding success and to the audience's respect for rational, civi- lized discourse and debate. One may not agree with Earl Pike's views, but he obviously displayed a great deal of courage in accepting the invitation to appear in such a Letters Policy The Daily welcomes viewpoints'from readers. Letters should be kept as brief as possible and are subject to condensation. They must include signature, valid mailing address, telephone numbs the writers year In school or occupation. Please double or triple space. Names will not be withheld unless approved by the editor-in-chief. Because of the volume of mail received, unpub letters cannot be answered Individually. - If you have any questions regarding letters to the editor, call the Daily at 625-6666, or stop in at: 10 Murphy Hall, University of Minnesota, Minneapolis, MN 55455. tip. Declassified in Part - Sanitized Copy Approved for Release 2011/12/22 : CIA-RDP88GO1332R000901030004-5 Declassified in Part - Sanitized Copy Approved for Release 2011/12/22 : CIA-RDP88GO1332R000901030004-5 eclitorialzi rnnnc$ota dc Debate, at last The campus is going to get its debate over the Reagan Doctrine after all. To readers of yesterday's Daily, the debate looked as certain as the latest CIA denials of involvement in Nicaragua. The Minnesota Public Interest Research Group, which in one day had invited and then canceled a pro-Contra debater, was sticking by its guns. It had found a critic of the Reagan administration against whom no pro-Contra debater could hope to stand - none, at least, that MPIRG could find locally or afford to fly in. Rather than risk the unpredictability of a dialogue, it canceled its tentative invitation to pro-Contra speaker Earl Pike, a Honeywell manager, and scheduled instead a solo speech by former CIA analyst David MacMichael. Fortunately - how fortunately remains to be seen Friday - Pike is back. Such a debate should be of interest to the entire campus for deciding where each person stands on the crucial moral issue of U.S. aid to the Contras. This was close to MPIRG's original goal when it who gave some two dozen speeches on Central America last year and as an advocate of the Reagan administration's policy who maintains ties with the pro-Contra Midwest Council for Democracy in Central America - will probably never match those of MacMicheal. But debates aren't won on the merit of who has the most information. And far from something to scoff at, Pike's credentials suggest that he is adequate for representing his position. Now the debate will have a voice for the abhorrent policy of U.S. interference in Central America. Despite this newspaper's philosophical opposition to Pike's politics, we want to see him face MacMi- chael. War advocates, whether in Honeywell or elsewhere, are currently ascendant. Their voices must be heard and challenged if for no other reason than that public discourse is shaped outside the conclaves or last week's Progressive Student Organi- zation meeting. A member of MPIRG says that PSO and the Central American Working Group (which co-sponsor the debate with MPIRG) balked at the initial invitation of "a right-wing ideologue" who is "moralistic." Too bad. Surprisingly enough. more heads are likely to be turned by hearing Mac- Michael rebut Pike, if he can, than by staging one more partisan attack. That is why we are glad that MPIRG has changed its mind and will present the debate at 12:15 p.m. Friday in the Mississippi Room of Coffman Memorial Union. Save us the best seats. invited MacMichael and sought a CIA representative to debate him. Although admirable, this was also an outl unlikely plan, since the CIA has become extremely reluctant to visit f campuses or any reason other than recruitment. MPIRG's decision to broaden the scope or the rorum was admirable, too. But its plan to scrap the debate because it could not rind a debater as knowledgeable as MacMichael - admittedly a rare species - cried out for reconsideration. The issue is not whether Pike is the best choice to debate MacMichael. If sheer knowledge is the measure, Pike's qualifications - as a tested debater, as a defense industry specialist, as a public speaker damned spot! A scourge along our federal highways has reached Capitol Hill, and it's not Dutch elm disease. Billboards, competing for our attention along high- ways and rising on pylons from the East Coast, to the Gulf of Mexico, have the Coalition for Scenic Beauty and other environmental groups outraged. This "parasitic' pollution "scars the facE . erodes the quality of life ... undern America's heritage and sense of place" traffic accidents, they say. In fact, high- lobbying efforts and loopholes in the H Beautification Act have resulted in a rep of obtrusive billboards. A sensible amen the U.S. Senate Highway Reauthorizatiu currently pending in the legislature, has mentalists hoping for an end to 'billbo~ The Highway Beautification Act, which- pet project of Ladybird Johnson in 196` miserably. Intended to limit billboards highways and prohibit them in scenic a actually resulted in the federal governrr out $200 million last year to owners of signs for their removal - at the taxpavi .And the number of billboards tripled ar and local governments have no control ber, kind or placement of billboards. M billboard companies build shacks on ru beside their signs to sidestep commerci regulations. The Senate amendment proposes to re, that. But therein lies the rub. The billbc pays a 50 cents per word honorarium t( Congress for speeches and public appe return, congressmen "decide" to block legislation. The bad guys seem to residf the House of Representatives. Their rer they passed in August, sustain the statu The Senate's amendment won't make a honoraria but might clean up the lands( ending subsidies to billboard companie that illegal billboards be cleaned up at t expense would ease the financial strain giving state and local governments pow own landscape, communities can decid not their scenery or esthetics warrant pi billboard removal in their area. Our sce 10,000 Lakes could only benefit from st rebellion against scenic 'parasites.' Declassified in Part - Sanitized Copy Approved for Release 2011/12/22 : CIA-RDP88GO1332R000901030004-5 West Bank in secc Declassified in Part - Sanitized Copy Approved for Release 2011/12/22 : CIA-RDP88G01332R000901030004-5 ,,,y ,u,C ,,,r lu?",v? V. WC The proposal from the planning commission would rezone much of the neighborhood from R-3, which g>snerally allows houses to have more than two units, to R-28, which is more rigid and bans more than two units to a house. At least, if you do pass this measure, please consider a resolu- tion to work with the University to provide alternative housing for students,' Wilensky said. 'Don't fall behind in what you're doing,for students.' Council Member Van White (DFL- 5th Ward), who represents the o''er part of the Marcy-Holmes neighborhood, supports the rezon- ing. The zoning study is also supported by the Marcy-Holmes Homeown- ers Association, a group of neigh- borhood residents who say the city should phase out some of the many houses owned by absentee landlords and rented to students. Many of the houses, they say, do not meet city safety codes and are Robert Distad, the association chairman, said it wasn't his group's intention to displace students. 'We want the continuation of the exist- ing housing in the neighborhood,' he said. 'We want to retain diver- sity and the long-term presence of students.' But he says unscrupu- lous landlords in the area are charging top-dollar rents for shod- dily maintained housing. One former student and resident of the neighborhood said he sup- ported Distad's goals. MPIRG dismisses debater 111 supporting administration By Tim Wolf Staff Writer After scheduling a debate over U.S. policy in Nicaragua, the Minnesota Public Interest Research Group told one side's debater he wouldn't be needed. inside Liberals be gone ? Are you a-liberal? Peter Kizi- los says move to New Zea- land. Page 7 Turn it up it KUOM, the University' cam- pus radio station wants to increase power and change to a 24-hour format. So stay tuned. Page 9 - More damn football ? That slimy pigskin sage, Mr.. Football, is running off at the mouth again. Page 19 MPIRG asked Earl Pike to defend' the Reagan administration's Nicara- guan policy at a debate on Friday sponsored by MPIRG, the Progres- sive Student Organization and the Central American Working Group. MPIRG asked David MacMichael, a former CIA analyst and critic of administration policies, to rep- resent the opposing view. Because Pike was dropped, the debate will now be an educational presentation with only MacMichael speaking. Tim Dunn, MPIRG campus orga- nizer, said Pike was dropped be- cause the debate's sponsors felt it was unfair for him go up against MacMichael. Pike would be less prepared than MacMichael, he said. 'We felt he (Pike) had no real background in Central America or with the CIA. Since the debate is :specifically about Nicaragua, it would not have been a very good debate.' keen and frequent speaker on Nicaragua, I felt my qualifications to speak on affairs there were equal to the occasion.' Pike has written a book about terrorism and has spent 24 years in the Marine Corps - 16 of which were with a bomb disposal unit. But Pike's experience with terrorist bombing techniques does not qual- ify him to speak about U.S. policy in Nicaragua, Dunn said. Dunn said the sponsors had wanted both sides represented at the debate. 'Ideally what we wanted was the CIA.' The CIA declined, however. They next turned to an organization of ex-CIA agents, but could not afford to pay a representative to come to the University. Then they attempted to schedule a local conservative to defend the Reagan administration's policies. Because none of the sponsors were But Pike said he is qualified. 'As a MPIRG to 4 said quality was lacking in the transplanted organ. ' neighborhood. I was charged $250 a month to live in a living room,' he said of his former resi- dence. 'There was no heat in the bathroom. It was horseshit. As a student I felt I was being exploi- ted.' The rezoning would also help diversify the neighborhood, said Wexler, who lived there from 1984 until early this year. 'There should be families and other kinds of people there besides just stu- dents,' he said. Kirt returns home after being listed as .missing Jane Anne Kirt, the former Uni- versity student who had been missing for more than a week, returned to her parents' Excel- sior home Monday. The 23-year-old international relations graduate was the sub- ject of an intense search after she disappeared without a trace last Monday. The alarm was false, according to Charlie Palmquist, an officer of the Minneapolis Police De- partment's 5th Precinct. 'Miss Kirt left the city-volun- tarily for personal reasons and was not the victim of a crime,' Patrnn?ict read from an official MPIRG from 1--. familiar with conservatives, they turned to the Veterans of Foreign Wars for recommendations, he said. Their original choices were unavailable, so they decided to ask Pike, but later decided against him, Dunn said- ALG prevents this rejection proces, by killing the T-lymphocylcs or rendering them inactive. It is given routinely to the patient for about seven days after the transplant operation. Because continued use of ALG alone may overly suppress the immune system, it is used in con- . junction with cyclosporin, another widely used drug that suppresses tissue rejection. Condie said that both cyclosporin and ALG have advantages and disadvantages, but, when used together, doctors can take maxi- mum advantage of each drug. 'Nobody foresaw that these two drugs would work together so nicely,' Condie said. 'Rather than cvclosporin eliminating the need for ALG, it has actually increased the need.' ALG is currently being produced it Research East, a research and labo ratory building near the East Bank, campus. The basement of the Phillips-Wangensteen Building, which is part of the medical schoo complex, was also considered as a site, but the U.S. Food and Drug Administration requires that the drug be produced in a separate facility. Pike said that by rescinding their offer to him, MPIRG has acted a, partisan advocate rather than the non-partisan organization it mair tains to be. 'MPIRG staffers could reclaim some semblance of objectivity if they would return to the debate originally established,' Pike said. But Dunn denied his organizatioi was partisan. They had tried to secure a pro-administration de- bater, he said. Also, the debate is non-partisan because no political parties are represented, he said. Declassified in Part - Sanitized Copy Approved for Release 2011/12/22 : CIA-RDP88GO1332R000901030004-5 Declassified in Part - Sanitized Copy Approved for Release 2011/12/22 : CIA-RDP88GO1332R000901030004-5 Debate from I The U.S. has always demanded hegemonic control over the gov- ernments of Latin America.' Mac- Michael said. It wouldn't matter if the Nicaraguan government was made up of vegetarians.' When the Reagan administration took office in 1981, one of its goals was to overcome the Vietnam Syndrome, he said. The Vietnam Syndrome refers to a perceived reluctance on the part of government officials and the Amer- ican public to use force to stem the tide of communism after the wounds incurred in Vietnam, Mac- Michael said. The Reagan administration saw Central America as an opportunity to stand up to the Soviet Union. MacMichael, however, called the administration's policies an 'egre- gious failure." But Pike cited a Gallup Interna- tional poll indicating that over 90 percent of the Central American population sees Nicaragua as a Ex-CIA analyst, author debate aid to Contras By Tim Wolf Staff Writer Administration proponents and op- ponents had it out over U.S, policy in Central America in Coffman Memorial Union Friday. The debate featured David MacMi- chael, a former CIA analyst and outspoken critic of U.S. govern- ment policy and Earl A. Pike, a speaker, author, and advocate of the Reagan administration's Central American policy. Included in the debate on Central American issues were: U.S. aid to the Contras, CIA activity, the Sandi- nista regime in Nicaragua, Cuban- Soviet involvement, and specu- lation on the future. The debate produced applause, laughter, and some hissing from the standing-room-only crowd. MacMichael said continued sup- port of the Contras fighting the Sandinistas will eventually bring about a large-scale conventional invasion by the United States. He called the Reagan administration's support for the Contras a 'policy of state terror, directed and funded by the U.S. government.' Pike countered by calling the Sand- -.inistas an aggressive threat to the rest of Cerltral, America. On the American continents there isn't a more repressive regime.' Continued support of the Contras is the only chance to combat an aggressive world-wide marxist revo- lution and establish a representative democracy in Nicaragua, he said. Pike said international reports com- pletely document Sandinista re- pression. The 6,500 political prison- ers in Nicaragua, the oppression of the Miskito Indians and the shutdown of La Prensa, an opposi-tion newspa- per in Nicaragua, illus-trace this re- pression. MacMichael questioned the accu- racy of the reports Pike cited. He said a "very sloppy job" was done on the reports, which were com-pleted in only a week. After the debate MacMichael said, if every police force in Latin America acted like the Nicaraguan police, you, would not see thick volumes of human rights abuse in the area.' MacMichael said the Reagan ad-mir - istration is only continuing the tradi- tional policy pursued by both Democrats and Republicans for the last 1q0 years. Whether it's called gunbodl diplomacy, good-neighbor policy or supporting the `freedom fighters" - the same actions con- tinue. Debate to 5 threat and that approximately 70 percent of the people favor U.S. aid to the Contras. The Central American debate was sponsored by the Minnesota Public Interest Research Group, the Cen- tral American Working Group and the Progressive Student Organiza- tion. - Monday, October 20, 1986 Volume 88, Number 19 t Photo/QYOff F Way Rai' ,ti ,. ~ # .: - t Kevin Lovely from the Alternative Demo Teich showed off his high- technique Friday In front of Coffman Union, The team is sponsored Alternative Bicycle Repair Shop. i Declassified in Part - Sanitized Copy Approved for Release 2011/12/22 : CIA-RDP88GO1332R000901030004-5 _n Declassified in Part - Sanitized Copy Approved for Release 2011/12/22 : CIA-RDP88GO1332R000901030004-5 Fornjpianalyst expects escalation in Nicaragua "' Nicnoias w. Pillugin Staff Writer attempt to seize territory, they will be immediately surrounded by the A former CIA analyst predicted in o~ the Bay of Pigs invasion ofsCuba. St. Paul Friday that Contra rebels He believes that direct U.S military may try to seize territory in Nicara- involvement will then be likely, gua, an action that could lead to starting with a naval blockade, direct U.S. military involvement, followed by U.S. troops. David MacMichael, a counter-in- "Believe me, 'a lot of Minnesotans surgency expert who once ana- will be coming home in plastic lyzed Central American intelligence sacks." MacMichael said U.S. mili- information for the CIA, came to tary involvement in Nicaragua the Twin Cities Friday campaigning would continue for some time for Democratic U.S. House candi- because the Nicaraguan army is date Ray Stock, who's running well trained. against incumbent Bill Frenzel (R- 3rd District). MacMichael called the recent 'if this thin downing of a cargo plane in Nicara- MacMichael sagoes into ,' a 'an id, referringttoeU.S. he five-year-old war. Helatio aid that support for the rebels, "there will while this was the 17th aircraft to be a very great pressure on the be shot down over Nicaragua, it Contras to seize some territory." was the first aircraft downed with He said the Atlantic coast, around also noted that there has been Puerto Cabezas, was the most "frenzied recruiting" for American likely point for such an attempt aircrews by air cargo firms such as because it is where the Sandinista Southern Air Transport, the com- government is weakest. pany that owned the downed MacMichael said if the Contras plane, that fly to Central America. Local Democrat Stock 01110, = uses Nicaragua crash as campaign.issue By Nicholas W. Pilugin central theme of his campaign. Staff Writer When the Reagan administration to k ff' ~ Former CIA analyst David MacMichas thinks.d arrypaet of tine Co Nicaragua will eventually bring a large-scale invasion by.tt as {Mind Slane 0 ice in 1981, one or its goals The cargo plane shot down over Since the Nicaraguan government was to overcome the Vietnam The Reagan administration saw threat and-that approximateh downed the C-123 cargo plane, Syndrome, he said. Central America as an opportunity Nicaragua two weeks ago directed Stock has used the publicity over favor I. attention to U.S. Policies in Central in.,..i.,e.,.e.,. ,.a y up to the Soviet nion. to stand u std to the Contras. A-'- Declassified in Part - Sanitized Copy Approved for Release 2011/12/22 : CIA-RDP88GO1332R000901030004-5 Another indication of impending escalation in the conflict is the sudden doubling in Southern Air Transport's fleet and government contracts. For 1986, Southern Air Transport received government contracts totaling $42 million, about double th amount received in any of the lasifive years. MacMichael said that while these contracts are for above-board serv- ices for the military and govern. ment agencies; he believes they are "well-padded" to cover clandestine operations. Southern Air Transport was once owned by the CIA, and MacMi= chael charged that when the firm was sold to private owners, the agency agreed to use the airline for such missions. MacMichael entered public debate over U.S policy on Nicaragua 2! years ago when he revealed that as a CIA analyst he had seen no . evidence or alleged arms shipments from Nicaragua to Salvadoran re- bels. Debate from 1 "The U.S. has always demanded hegemonic control over the gov- ernments of Latin America." Mac- Michael said. it wouldn t matter if the Nicaraguan government was made up of vegetarians."