FINAL REPORT FINDS CASEY 'INATTENTIVE'

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP90-00552R000201080021-9
• Release Decision: RIPPUB
• Original Classification: K
• Document Page Count: 1
• Document Creation Date: December 22, 2016
• Document Release Date: August 11, 2010
• Sequence Number: 21
• Publication Date: December 3, 1981
• Content Type: OPEN SOURCE

Sanitized Copy Approved for Release 2010/08/11: CIA-RDP90-00552R000201080021-9
ARTICLE APPEARED
ON PAGE-' ,_
NEW YORK TINES
3 DEC EER 1981
't ai. epo . rods Casey 'nattentive'
By JUDITH MILLER
Spectal toTbe New York Tftms,
Select Committee on intelligence re-
leased a final report. today finding that
William J. Casey had been "at mini-
mum inattentive to detail" In comply-
ing with Government financial disclo-
sure requirements but concluding that
he was not "unfit" to be Director of Cen-
tral Intelligence.
Several Democrats on the 15-member
committee expressed a lack of confi-
dence in Mr. Casey's candor witlr the
I panel, but only Senators Joseph' A.
Leahy. of Veimont, dissented from the
conclusion that a review of the facts in
the four-month examination had
produced "no basis for concluding that
Mr. Casey is unfit to hold office as Direc-
Mr. Leahy, emphasizing that he sup.
sion, characterized then report cn Mr.
Casey as "damning him with faint
Catalogue of Omissions,
The six-page, single-spaced report
- catalogued Mr. Casey's omissions on
financial . disclosure ., statements re-
quired after his appointment as chief of
the-intelligeace agency.
The? report noted, for example; that
before his confirmation hearings last
January the 68-year-old Mr. Casey had
failed to report to the Senate panel "nine
investments valued at more than a
quarter of a million dollars; personal
debts and contingent liabilities of nearly
.S.50O,000, a number of corporations or
foundations on whose board Mr. Casey
served, four civil lawsuits and more
than 70 clients hehad represented in pri-
vate practice in the last fiveyears."
. Senator Daniel Patrick Moynihan.
Inquiry
Mr. gasey
an ingeiry in
violations ste
rnanship of th
-Committee.
Federal E3
the allegatio
"pending the
The committee's wide-ranging. i nves-
tigation began last July after Max C_
Hugel, who had been appointed by Mr.
Casey to head the C.I.A.'s clandestine
operations, resigned in the wake of all e.
gations of financial misconduct. Mr.
Hugel denied those charges: But his se-
lection by Mr. Casey. who had worked
linessforhispost. .
W1Wam J. Case3V The report stated that Mr. Casey had
Democrat of New York, acting chair-
man, said' the; Issue of whether Mr.
Casey should have registered as a for-
eign agent while representing the Gov-
ernment of Indonesia in 1976 was "unre-
solved"'unit would be- referred to the
Justice Department.
In addition to Indonesia, Mr. Casey
also failed to disclose among his former
t''volunteered Fn a hearing July that
M. Hugel's appointment was a "mis.
take" for which he assumed "full re-
sponsibility."
"The committee concurs," the report
said.
Need forlmprovement Cited = , ?
Ala news conference, Mr. Moynihan
declined comment on whether he and
other committee members believed that
rnent of South Korea. However, Mr. Moynihan and Senator
"The committee is concerned that John H. Chaffee, Republican of Rhode
this pattern suggests an insufficient ap- Island, acting vice chairman, said the
predation of the obligation to provide Hugel affair indicated that background
complete and accurate information to checks by the C.T.A. and other Govern.
the oversight committees of the Con- ment agencies needed improvement.
cress,"theretortsaid. - Mr. Casey said in a brief statement
The document also disclosed that Mr. late this afternoon that he was
Casey had been.audited by the Internal "pleased" that the committee
afteran
,
} Revenue Service for two tax years. 1976 "exhaustive investigation, had re-
and 1977.E He received a refund after the ported "nothing which reflects on the in-
1978 audit, the report noted, and the 1977 tegrity, the business practices and ethi-
audit is being conducted now. In addi- cal standards in which I have.always
lion, the LR.S. is conducting "a routine taken pride."
examination" of a limited partnership "I look forward to continuing to work
that Mr- Casey helped structure, the re- together with the committee to improve
pori.statas. Committee officials de- the nation's intelligence capabilities,".
clinedtaidentify the partnership. Mr. Caseysaid. "
The committee also reviewed Mr. SomeDemocrats, however, expressed
Casey's testimony in the 1914 trial of for- doubts about the wisdom of permitting
merAttorney General John N. Mitchell, Mr. Casey to retain his post. Senator
who ultimately was.acquitted of trying Walter]). Huddleston, of Kentucky, said
to Impede an investigation. There had that while only President Reagan could
'been a suspicion of discrepancies be- ask Mr. Casey to resign, there were suf.
tween Mr. Casey's trial testimony and ficient reasons to prompt such a re-
his testimony before the grand jury that quest.
indicted Mr. Mitchell. But "'no major Senator Biden praised Mr." Casey for
? _ discrepancies-were found which would his"decisive, imaginative leidership at
Indicate tbat,Mr. Casey committed per. the C.TA's helm." But, citing "a con.
jury :'. thereportsaid.. ,- sistent pattern of omissions, misstate
meats and contradictions inhisdealings:
with this and other committees of Con.
tit mesa." Mr. Bider said: "Mr. Casey has-
Sanitized Copy Approved for Release 2010/08/11: CIA-RDP90-00552R000201080021-9