CONGRESSIONAL OVERSIGHT-CIA

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CIA-RDP90-00610R000200090001-6
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December 15, 2016
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January 8, 2004
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REPORT
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Approved For Release 206Ai CONGRESSIONAL OVERSIGHT - CIA A. GENERAL CIA was established as part of the National Security Act of 1947. The Agency's enabling legislation, the Central Intelligence Agency Act of 1949, provided for the general administration of the Agency and exempted the Agency from normal reporting requirements which could compromise Agency security. On the basis of the provisions of this latter Act, the CIA appropriation is handled securely and the organization, its functions, and the names of its personnel are protected. 1. The Armed Services Committees (on the basis of juris- diction over the legislation) and the Appropriations Committees (to approve funds) have exercised continuous legislative oversight. (a) The Committee on Expenditures in the Executive Departments (now the Committee on Government Operations) actually held hearings and reported out the National Security Act of 1947 but under the new Legislative Reorganization Act the House Armed Services gained permanent jurisdiction. (b) In the Senate the corresponding Committee on Expenditures challenged the referral of the National Security Act of 1947 to the Armed Services Committee, but it was defeated when the Senate upheld the ruling of the President pro tem. Approved For Release 200 ' -m ' Approved For Release 2004/03/11 :fAyPOp az iR000200090001-6 vwai t (c) From time to time the Government Operations Committees particularly on the. House side have insisted on a right of congressional oversight of the economy and efficiency with which the Agency conducts its activities. Up to now the issue has not been joined, essentially as a result of our voluntary cooperation with their various investigations or informal handling between committees. Chairman Holifield has been generally supportive of the Agency position. Mr. Moorhead and Mr. Moss being most interested in asserting some type of jurisdiction. (d) The Senate Foreign Relations Committee, over recent years has pressed to extend its jurisdiction over intelligence activities through the efforts to establish the overall authority abroad of State, which it oversees, and to include broad limitations on funding of programs principally administered by CIA. B. CHRONOLOGICAL DEVELOPMENTS 1. 1947 through early 1950's - Oversight was benign. Approved For Release 2004/03/11 : CIA-RDP90-0061OR000200090001-6 y I i ~~ 11 Av ; Approved For Release 2004/03/11 : CIA-R900~}ib00200090001-6 (a) Controlled by strongly entrenched congressional leadership and senior chairmen. (b) Cold war psychology--rant: and file not pre- disposed to interference. (c) On the appropriation side, the basic concern was--do you have enough money? 2. Late 1950's (a) Record of infrequent briefings of oversight committees leads to Senator Mansfield's initiative for Joint Committee (defeated in 1956 by vote of 59 to 27, with 12 original sponsors opposing the resolution). (b) Sputnik era triggered wider congressional interest in Agei y information on the Soviet threat. Agency initiated program of debriefing members of Congress who had travelled abroad, inviting them to visit Agency facilities and on occasion field installations. 3. Early 1960's (a) The Agency furnished intelligence briefings to a number of committees including the Joint Committee on Atomic Energy on the Soviet nuclear energy program, and general intelligence briefings to House Foreign Affairs and Approved For Release 2004/03/11 : CIA-RDP90-0061OR000200090001-6 n) R ^a Vin, Approved For Release 2004/03/11: Cli#=RDI =OPG1P1 4000200090001-6 the Senate Foreign Relations Committee, Soviet space program briefings to the House Science and Astronautics Committee and Senate Aeronautical and Space Sciences Committee, and Soviet military posture briefings to the full Armed Services Committees and the Defense Subcommittee of House Appropriations. (b) Pressure continued to grow for a Joint Intelligence Committee which spurred the CIA Subcommittee of House Armed Services to examine Agency activities rather intensively. (c) Chairman Vinson appointed Representative Paul J. Kilday as Chairman of the CIA Subcommittee of House Armed Services with the mandate to give CIA more attention. (d) The "Soviet Missile Gap" argument in the 1960 Presidential election spurred further interest in the Agency's intelligence product. (e) The U-2 flight of Gary Powers over the Soviet Union and the Bay of Pigs invasion heightened congressional debate and the Cuban missile crisis of 1962 refocused attention on the Agency's capabilities. (f) Reflecting Senator Russell's growing responsibilities for appropriations matters, sessions of the CIA Subcommittee Approved For Release 2004/03/11 : CIA-RDP90-0061OR000200090001-6 Approved For Release 2004/03/11 CIA-RDP90-00QIOR000200090001-6 of Senate Armed Services and Senate Appropriations were held in joint session. Even so by 1965 Agency briefings of these Subcommittees rose to 34 as contrasted with 9 the previous year. 4. Late 1960's (a) In 1966, the Foreign Relations Committee reported a resolution to establish a Joint Committee on Intelligence with Senator Russell defeating the move by 61-29 on jurisdictional grounds. (b) In 1967 the Agency undertook a programmed effort to contact and brief all new members of Congress on the Agency. (c) 1967 was also the year of exposure of Agency funding of the National Student Association. (d) In 1969 the Agency's intelligence product came to the front again on the ABM system leading to a closed session of the Senate to discuss the classified aspects of the subject including data provided by the Agency. (e) Legislative initiatives were beginning to be proposed in an effort to circumscribe executive action through CIA principally i4 25 Approved For Release 2004/03/11 CIA-RDP90-=006108000200090001-6 Approved For Release 2004/03/11 : CI ('iQF4O00200090001-6 5. 1970's (a) The congressional structure which has for a quarter of a century served to shield the Agency from intrusion or attack by the rank and file membership is in a state of flux. The Russell's and Rivers' are gone. McClellan is 78, Mahon is 74, and Stennis and Hebert are 73. Men down the seniority lists have become suspicious or jealous over the secretive manner in which the oversight responsibilities have been exercised and their ranks are being periodically reinforced by newly elected younger members. Many feel Agency information and Agency activities should be more broadly accessible to the Legislative Branch, and particularly to the Foreign Relations and Foreign Affairs Committees. (b) In 1971, as a result of the limitation by the Democratic Caucus on subcommittee chairmanships and taking note of the writing on the wall, Chairman Hebert appointed Representative Lucien N. Nedzi (D, Mich.) as Chairman of a rejuvenated Intelligence Subcommittee of House Armed Services Committee. Nedzi has proved to Approved For Release 2004/03/11 : CIA-RDP90-0061OR000200090001-6 Approved For Release 2004/03/1 f'r3f-P be an invaluable ally in dealing with problems in the House because of his reputation for diligence, thoroughness, objectivity, and skepticism. (c) In an analogous reaction to the changed political atmosphere in the Senate, both Chairmen Stennis and McClellan have changed earlier practices. Thus both now regularly take transcripts. Senator McClellan invited Senator Church to attend 25X1 (ono leaks occurred) and Senator McClellan has offered any Senator the specifics of CIA's budget on a classified basis (Tab A). (d) Many members while sharply critical of foreign and defense policy appear to have a high regard for the Agency's intelligence product, fearful only that the Agency's capabilities in the covert action field may be misused by an Administration. They are anxious to have a closer relationship with the Agency and thus more influence on its activities. Others are highly supportive in foreign and defense fields, but are anxious to avoid battle on issues such as the Agency's covert action authorities. C. CURRENT CONGRESSIONAL OVERSIGHT PROCEDURES 1. Under existing guidelines so far supported by the chairmen of our oversight committees, Agency operational activities are reported solely to the four oversight committees. 1 Approved For Release 2004/03/11 : CIA-RDP90-0061OR000200090001-6 Approved For Release 2004Q 0-00610R000200090001-6 2. Security Precautions: In formal sessions before these subcommittees, the following security procedures are followed: (a) Only selected staff members of the subcommittee (no personal staff of members) are permitted to attend. (d) Under House rules all members are entitled access to all Committee records. (Tab B) (e) The membership of the four oversight Subcommittees are set forth in Tab C. 25X 25X 25 Approved For Release 2004/03/11 : CIA-RDP90-00610R000200090001-6 25X1 Approved For Release 2004/03/11 : CIA-RDP90-0061OR000200090001-6 Next 1 Page(s) In Document Exempt Approved For Release 2004/03/11 : CIA-RDP90-0061OR000200090001-6 Approved For Release 2004/03/11 : CIA-RG~?f?9iQ061 dQg0200090001-6 Stennis had a reporter present who made a stenotape of the session, at the end of the hearing Stennis ordered that it not be transcribed and the stenotape is in the Agency's possession, Senator Stennis lamented the leak but was glad it did not occur on the Senate side--where he said the record is good, and it is--and agreed that the covert action capability is necessary and he had no problems with any of the current covert action programs. (2) On 16 September 1974 the Director met with the Nedzi Subcommittee and reviewed current covert action programs. A reporter was present for a preliminary substantive intelligence briefing but was dismissed by Chairman Nedzi before the Director's briefing on covert action. All members except Messrs. Arends and Fisher were in attendance. Mr. Nedzi said that the Harrington matter is a matter for the Committee to investigate and they will be meeting with Harrington possibly later in the week. Approved For Release 2004/03/11 : CIA-RDP90-00610R000200090001-6 Approved For Release 2004/03/11 : CIA-RDP90-00610R000200090001-6 in a joint session with the Senate Armed Services xi The Jafi s reminding Chairman McClellan of this fact. Except for the incident involving Mr. Harrington, the four Agency Subcommittees have had an outstanding record on the protection of covert operational information. E. OPTIONS Clearly the credibility of this Government in its ability to protect intelligence sources and methods is under suspicion as a result of the revelations concerning (3) Chairman Mahon has scheduled a briefing of the House Appropriations Subcommittee on 19 September 1974 to review the matter. (4) The Senate Appropriations Subcommittee, ST (We have already received many inquiries from cooperative foreign intelligence services. ) (1) In light of the House rules, the most obvious protective device is that our Subcommittees not maintain records on covert operational information provided by the CIA. The Nedzi Subcommittee Approved For Release 2004/03/11 : CIA-RDP90-00610R000200090001-6 Approved For Release 2004/03/11 CIA-RDP90-0061OR000200090001-6 `,udrrrnan ivlorgan, Tab G~ ) Approved For Release 2004/03/i 1 C 061 OR000200090001-6 action on 16 September 1974 in dismissing the reporter was a result of an affirmative determination by the Committee in this regard. Senator Stennis' action on 12 September is of a like nature. The problem with this solution is that there is then no evidence of the infor- mation provided by the .Agency, which makes it possible for the Com- mittees to distance themselves from responsibility in the event serious issues arise in the future about the extent to which the Agency has kept its oversight committees informed. (2) The overall arrangement could be made for the Committees to keep no transcripts or records but that CIA would keep them in a segregated collection. As directed by the four Chairmen, they could be made available under escort for examination but not copying. Howeve practical, this might pose political and constitutional problems. (3) The House rules could be changed to limit access to sensitive operational information to the Subcommittee and perhaps certain other designated members in leadership positions. This would not be likely to be accepted by the full House. (4) Committee access to certain operational information having a substantial impact on the deliberations of the House Foreign Affairs Committee and the Senate Foreign Relations Committee could be expanded to those Committees, or selected subcommittees thereof, on the premise that such information would be handled with wisdom and restraint. The increase in the exposure possibility from such a course of action is clear. (Letter from Representative Fascell to Ii90-006108000200090001-6 Approved For Release 2001 (5) A Joint Committee on Intelligence might be established with members from Appropriations, Armed Services, Foreign Affairs and Government Operations, with a separate staff. The resolution establishing it should clearly state that it will have access to all information but that no information about intelligence sources and methods will be made available to other committees or Members without a specific congressional resolution. (6) All of the above, of course, would have to be worked out with the appropriate leadership and, in addition, the President might want to consult the leadership as to other alternatives. 14 Approved For Release 2004/03/11 : CIA-RDP90-00610R000200090001-6 Approved For Release 2004/03/11 : CIA-RDP90-0061OR000200090001-6 Approved For Release 2004/03/11 : CIA-RDP90-0061OR000200090001-6 Approved For Release 2004/03/11 : CIA-RDP90-0061OR000200090001-6 On 4 June 1974 the Senate by a vote of 55 to 33 defeated an amendment to the Defense Procurement Authoriza- tion bill (S. 3000) which would have required the Director of Central Intelligence to submit an annual unclassified report to the Congress disclosing the total amount of funds requested in the budget for the National Intelligence Program. A number of Senators, including the Chairman of the Agency's Oversight Committees in the Senate, strongly opposed the amendment on the basis that such disclosures would provide valuable assistance to our adversaries by virtue of the trends disclosed over the years and. that the publication of the total figure would only stimulate further inquiry for. greater detail on foreign intelligence activities, for explanations of changes or trends, and for the component elements of the total figure. They also pointed out that the four committees charged with oversight of the Agency in the Congress are fully aware of the details of the foreign intelligence. budget and inquire into these matters deeply. The point was also made that if any member of the Senate wished to know what the total figure was it would be furnished to him on a classified basis. The discussion on the amendment is covered on pages S. 9601-9613 in the Congressional Record of 4 June 1974. Excerpts follow::. Approved For Release 2004/03/11 : CIA-RDP90-0061OR000200090001-6 Approved For Release 2004/03/11 : CIA-RDP90-0061OR000200090001-6 'Senator Stennis: ". .. True, we are an open society and, so far, we have been able to carry on an intelligence prcgram cffr!,iively which has been worth to us billions and billions and billions of dollars in savin ;s. But, if we are going to abandon the idea of keeping these figures from being dis- closed. then, in my humble opinion, we might as well abolish the agency. It would be like saying, in effect, that we do not want this secret intelligence after all, that we do not need it, and that we will abandon it. We will pay an awful price for that. I am familiar with the CIA budget. I can satisfy most any Senator in the cloakroom, talking to him some about this, but I will publicly say that it is a clean budget and they have justified many times over the expenditure of the money. " Senator Pastore: " We have to know what they are doing, so we can know what we have to do in order to guarantee. the security of, our own country. So we cannot come out here and tell the whole world, "We spent $1 billion or $2 billion for the Central Intelligence Agency." What does that mean to any- one else, except that perhaps some people think they are spending too much. And the minute the question is asked where they are spending It we are in serious trouble. So what happens to your children and my children; Mr President? What hap- pens to you when You go home tonight? What happens tomorrow? What hap- pens to the security of our country? Can we afford to tell them? Oh yes, I would like to tell the public everything it is possible to tell them. I believe in that. I have been in public life continually for 40 years. I believe in the right of the public to know. But I certainly would not come to the floor of the Senate and tell you, Mr. President, how rn out to- gether an atom bomb. I would not tell you that. I would not tell you how far our nuclear subs are able to travel; I would not tell you how we can detect an enemy sub; and I would not teU you how they might detect ours.' I would not tell you that. Why would I not tell you that? I would not tell you that because the minute I told you that I would jeopardize the future of your children. I have sat down with the Senator from Wisconsin (Mr. Pnox?.nas), the Senator from California (Mr. CR,\nsToN), to find a solution, and I have sat down with Mr. Colby, who Is a great American. He said, "Please do not do this. If you want to make my job easier, please do not do this." I cannot sit there after that ad- monition and exhortation and turn around and say, "Mr. Colby; I do not believe what you have to say." If I be- lieved that for 1 minute, I would, say. "You ought to give up your job.-' . . Approved For Release 2004/03/11 : CIA-RDP90-0061OR000200090001-6 Approved For Release 2004/03/11 : CIA-RDP90-0061OR000200090001-6 Senator Humphrey: 'rise to commend the Senator from I6iode Island and to associate myself full? with his comment,;. The Senator pointed out very properly that the Central Intelli- gence Agency has in the past engaged in activities that have been looked upon by certain Members of the Congress as im- desirable: but 'I want to make it clear that every one of those activities had been ordered by a President. The Cen- tral intelligence Agency does not Just engage in activities for the love of work. I know that the Central Intelligence Agency, during the Kennedy years and the Johnson years, was engaged in ac- tivities in Laos--- Mr. President, the Central inteugence Agency is possibly the most important agency in this Government. By and large, it is made up of people who are com- petent, able, and who have served this country well and faithfully. To be sure, there are times when it has engaged_ in activities, as we have said. Chat are looked upon with suspicion; but I think it would be folly for us to publicize all of its activities, to publicize the amounts it receives, particularly when there are ways and means within this body and within the other body of Congress to superviset it..and to keep a check rein upon it. serving on the National Security Council. and I want to tell my colleagues that the Central Intelligence Agency was the most accurate and effective instrument of Government for that council. Its reports were most accurate, and had we followed the advice of the Central Intelligence Agency in many areas, we would have been better off, but at least it was there.. But just as surely as we are in this body today debating whether or not we ought to have a release of the figure, next year it will be whether it is too big or too little, and then it will be what is in it. Then when we start to say what is in.it, we are going to have to expose ex- actly what we have been doing in order to gain information; for example, years ago as to where the Soviet Union was building its nuclear subs and the kind of nuclear subs they were. I saw that ma- terial In 1365--how far they were along, what their scientific progress was. I do not think it would servg the public in- terest for all of that information to have been laid out. It would have destroyed our intelligence gathering completely. Approved For Release 2004103 11 : CIA-RDP90-0061 OR000200090001-6 Approved For Release 2004/03/11 : CIA-RDP90-0061OR000200090001-6 Senator McClellan: But, let us bear in mind that If we are to have a security intelligence agency, we cannot have it with. national publicity on what it does, how it does it, and how much it spends here` or how much it spends there. . . ? On my responsibility to my colleagues, they in CIA keep a clean house. They have had a conservative operation dollar- wise and have accounted for the money in a splendid way. That has been true without exception. There has been no great spillage of money or great extrava. gances, and not one bit,,of scandal or odor of any kind. Senator Thurmond: ". I believe that our Nation is unique in the attention ito legislature has given to specifying and thrum oeri'?invt the activi- ties of the agency designated to perform its foreign intelligence missions., Senator Proxmire: Mr. President, the purpose of the amendment which I am offering now is to provide that the overall figure for the intelligence community.as a whole, not broken down but the overall figure, would be made available, so that the tax- payers of this country would have some ideca of how much, -how many billions of .. dollars-and it is billions of dollars- are going for intelligence efforts by our. Government. ' Now just -what would this tell our ad-?1 . versaries? They would not know if it all went to the CIA, or DIA. Whether the- NSA spent most of the money, or the Air Force. How about yearly fluctuations? Say for example, that the budget went up 10 percent in 1 year. What what they con- clude? That manpower was more expen- sive? That the CLA was spending more for Laos? That the DIA had bought a new computer division? That NSA was hiring more people? They would know- nothing. - 4 - Approved For Release 2004/03/11 : CIA-RDP90-0061OR000200090001-6 Approved For Release 2004/03/11 : CIA-RDP90-0061OR000200090001-6 Senator Hughes: The threat will come from losing con- trol on the inside. if maiiitaining that control requires an ounce of rL k, then I t; inl; we should be Prepared to take that ounce of risk in at least letting us see Publicly and the people see publicly whether we are spending $3 billion, $7 billion. or $90 billion, and how we are concealing it and hiding it, and if we are protecting ourselves from the inside as well as from the outside. I think that ounce of risk, if it exists, is worth taking, and I thank the dis- tinguished Senator from Wisconsin for y elding.. .. . t... _ _. 1. Senator Jackson: In summary, our foreign intelligence service arises out of an act of Con? Tess and all of its activities are closely scru- tinized by n number of representative members of both the Senate and the House of Representatives. This is how we have resolved the balance between the needs of an open society and the needs for a secret forei-,m intelligence service. I certainly do not think that this is the time t' nnhalan.r;e the situa-- Lion as I am confident enactmeir~ of the proposed amendment would do. Senator Young: ". . I know there is treat interest in the -public knowing everything possible, but X think there arc some things that should be kept secret for our own security. Approved For Release 2004/6/11 : CIA-RDP90-0061OR000200090001-6 Approved For Release 2004/03/11 : CIA-RDP90-0061OR000200090001-6 Approved For Release 2004/03/11 : CIA-RDP90-0061OR000200090001-6 Approved For Release 2004/03/11 CIA-RDP90-0061OR000200090001-6 RULES OF THE HOUSE OF REPRESENTATIVES ? 735. Rule XI. record vote is demanded. The result of each rollcall vote in any meeting of any committee shall be made available by that committee for inspection by the public at reasonable times in the offices of that com- mittee. Information so available for public inspection shall include a description of the amendment, motion, order, or other proposition and the name of each Member voting for and each Member voting against such amendment, motion, order, or proposition, and whether by proxy or in person, and the names of those Members present but not voting. With respect to each record vote by any committee on each motion to report any bill or resolution of a public character, the total number of votes cast for, and the total number of votes cast against, the reporting of such bill or resolution shall be included in the committee report. The first part of this paragraph was derived from See. 133(b) of the Legislative Reorganization Act of 1946 (60 Stat. 812) and made part of the standing rules on January 3, 1953, p. 24. The requirements that committee roll calls be subject to public inspection and that the committee report on a public bill or resolution include the vote thereon, were added by Sec. 104(b) of the Legislative Reorganization Act of 1970 (84 Stat. 1140) and made a part of the rules on January 22, 1971, p. --, H. Res. 5. C(@All committee hearings, records, data, charts, and files shall be kept separate and distinct from the congressional office records of the Member serving as chairman of the committee; and such records shall be the property of the House and all Members of the House shall have access to such records. Each corn- RULES OF THE HOUSE OF REPRESENTATIVES Rule XI. ? 735. mittee is authorized to have printed and bound testimony and other data presented at hearings held by the committee. This provision from Sec. 202 (d) of the Legislative Reorganization Act of 1946 (60 Stat. 812) was made a part of the standing rules January 3, 1953, p. 24. (d)(1) It shall be the duty of the chairman of each committee to report or cause to be reported promptly to the House any measure approved by his committee and to take or cause to be taken necessary steps to bring the matter to a vote. (2) In any event, the report of any committee on a measure which has been approved by the committee shall be filed within seven calendar days (exclusive of days on which the House is not in session) after the day on which there has been filed with the clerk of the committee a written request, signed by a majority of the members of the committee, for the reporting of that measure. Upon the filing of any such request, the clerk of the committee shall transmit immediately to the chairman of the com- mittee notice of the filing of that request. This sub- paragraph does not apply to a report of the Com- mittee on Rules with respect to the rules, joint rules, or order, of business of the House or to the reporting of a resolution of inquiry addressed to the head of an executive department. (3) If, at the time of approval of any measure or matter by any committee (except the Committee on Rules) any member of the committee, gives notice of Approved For Release 2004/03/11 : CIA-RDP90-0061OR000200090001-6 Approved For Release 2004/03/11 : CIA-RDP90-0061OR000200090001-6 Approved For Release 2004/03/11 : CIA-RDP90-0061OR000200090001-6 Approved For Release 2004/03/11 : CIA-RDP90-0061OR000200090001-6 September 1974 CIA SUBCOMMITTEES SENATE APPROPRIATIONS INTELLIGENCE OPERATIONS John L. McClellan (D., Ark.), Chairman John C. Stennis (D., Miss.) Milton R. Young (R. , N. Dak. ) John O. Pastore (D., R. I.) Roman L. Hruska (R., Nebr.) SENATE ARMED SERVICES CIA SUBCOMMITTEE John C. Stennis (D., Miss.), Chairman Stuart Symington (D., Mo.) Peter H. Dominick (R., Colo.) Henry M. Jackson (D., Wash.) Strom Thurmond (R., S. C.) HOUSE ARMED SERVICES SPECIAL SUBCOMMITTEE ON INTELLIGENCE Lucien N. Nedzi, (D., Mich.), Chairman F. Edward Hebert (D., La.) William G. Bray (R. , Ind. ) Melvin Price (D., Ill.) Leslie Arends (R. , Ill.) O. C. Fisher (D., Texas) Bob Wilson (R., Calif.) HOUSE APPROPRIATIONS "SPECIAL GROUP" George H. Mahon (D., Texas), Chairman Jamie L. Whitten (D., Miss.) William E. Minshall (R., Ohio) Robert L. F. Sikes (D., Fla.) Elford A. Cederberg (R., Mich) Approved For Release 2004/03/11 : CIA-RDP90-0061OR000200090001-6 Approved For Release 2004/03/11 : CIA-RDP90-0061OR000200090001-6 Approved For Release 2004/03/11 : CIA-RDP90-0061OR000200090001-6 Approved For Release 2004/03/11 : CIA-RDP90-00610R000200090001-6 TAT TASS Reports Colby Testimony on CIA actions in Chile L231442 Moscow TASS in English 1350 GMT 23 Oct 73 L (TEXT) WASHINGTON OCTOBER 2.3 TASS--FRESH FACTS HAVE BEEN LEARNED HERE ABOUT THE SUBVERSIVE ACTIVITY OF THE USA CENTRAL INTELLIGENCE AGENCY AGAINST SALVADOR ALLENDE'S POPULAR UNITY GOVERNMENT PRIOR TO SEPTEMBER ELEVENTH. THESE FACTS ARE CONTAINED IN THE TRANSCRIPT OF SECRET TESTIMONIES BY CIA DIRECTOR WILLIAM COLBY AND CIA SENIOR STAFF-MEMBER F. DAVIS AT THE INTER-AMERICAN AFFAIRS SUBCOMMITTEE OF THE HOUSE OF REPRESENTATIVES. A SUMMARY OF THE TESTIMONIES WAS PUB- LISHED BY THE"WASHINGTON POST." THE TESTIMONY OF THE CIA LEADERS SHOWS THAT THE DEPARTMENT CARRIED ON LARGE-SCALE SECRET INTERVENTION IN THE INNER-POLITICAL AND ECONOMIC AFFAIRS OF CHILE. THIS ACTIVITY, THE NEWSPAPER SAID, INCLUDED INFILTRATION INTO ALL PRINCIPAL POLITICAL PARTIES, SUPPORT OF ANTI-GOVERNMENTAL DEMONSTRATIONS AND ALIGNMNETS, SUBSIDIES FOR OPPOSITION PRESS ORGANS. THE UNITED STATES, THE WASHINGTON POST GOES ON TO SAY, REFUSED CREDITS TO THE ALLENDE GOVERNMENT TO WRECK THE CHILEAN ECONOMY AND ALSO OBSTRUCTED THE GRANTING OF LOANS TO CHILE.-BY INTERNATIONAL FINANCIAL AGENCIES. THE ONLY EXCEPTION WAS MADE FOR THE SALE ON CREDIT OF AMERICAN WEAPONS TO THE CHILEAN ARMED FORCES. THUS, THE UNITED STATES SOUGHT TO SPEED UP THE ECONOMIC CRISIS IN THE COUNTRY AND TO ENCOURAGE INTERNAL OPPOSITION TO THE POPULAR UNITY GOVERNMENT. THE TESTIMONY OF THE CIA DIRECTOR AND OTHER INFORMATION SHOW THAT THE UNITED STATES MAINTAINED CLOSE CONTACTS WITH THE CHILEAN MILITARY THROUGHOUT THE PERIOD FOLLOWING ALLENDE'S ELECTORAL VICTORY, THE NEWSPAPER SAYS. THE WASHINGTON POST ADDS THAT THE CIA ALLOCATED 400,000 DOLLARS FOR SUPPORTING PRESS ORGANS OPPOSING ALLENDE ON THE EVE OF THE PRESIDENTIAL ELECTIONS. 23 OCT 1755Z JB/GS Approved For Release 2004/03/11 : CIA-RDP90-00610R000200090001-6 Approved For Release 2004/03/11 : CIA-RDP90-0061OR000200090001-6 By T(td Szulc Szvlc is a Washington writer -and a former foreign correspondent. Ifia lat- est book is "Compulsive Spy: The Strange Career of E. Howard Hunt." \,' AS THE United States, through V the Central Intelligence Agency or otherwise, directly involved in the events thst led to the bloody coup d'2tat in Chile last Sept. 11? Actual involvement in the military revolution that ousted the late President baivador Allende (,ossens, a Socialist, has been roundly denied by the Nixon administration and the CIA in particular. But given the CIA's track record in overthrowing or attempting to over- throw foreign governments-] ran, Guate- mala, the Bay of Pigs, Laos and-so on -deep suspicions have persisted that, the agency, operating under White Ilouse directives, has been much more than an innocent observer of the Chilean scene since Allende's election in 1970. Ten days ago, the CIA rather sur- prisingly if most reluctantly, went quite a way to confirm many of these suspi- cions. It did so in secret testimony on Oct. 11 before the House Subcommittee on Inter-American Affairs by its di- rector, Willian E. Colby, and Frederick Dixon Davis, a senior official in the agency's Office of Current Intelligence. .The transcript of the testimony was made available to this writer by sources'. In the intelligence community. This. extensive testimony touches principally on the -CIA's own and very extensive covert role in Chilean poli- tics, but' it also helps in understanding and reconstructing the administration's basic; olicy of bringing about Allende's fall one wr+y or another. We are apprised not only that ti?e Ct \'s estimate of the number of vie- WASHINGTON POST 21 OCT 1973 war -there remains "a real possibility." Yet, even Colby warned that the junta may "overdo" repression. Colby's and Davis' testimony, in parts unclear and contradictory, offered a picture, of the CIA's Activities in Chile between Allende's election in 19'10 and the Sept. 11 coup ranging from the "penetration" of all the major Chilean .political parties, support for anti-regime demonstrations and financing of the op- position press and other groups to here- tofore unsuspected Agency involvement in financial negotiations between Wash- ington and Santiago in last 1972 and early 1973 when the Chileans were des- perately seeking an accommodation. , There are indications that the CIA, acting on the basis of its. own reports on the ."deterioration" of the Chilean economic situation, was among the agen- cies counseling the While Mouse to re- buff Allende's attempts to work out-.a . settle jtent on the compensations to be 11. For political reasons, It preferred paid for naionalized American property, ., a gradual destruction from within of and a renegotiation of Chile''s $1.7 bit the Chilean economy so that the Al- lion debt to the Unitotl States. lende regime would collapse of its own' weight. The CIA's role, it appeared, A No-HelV Polio] was to help quicken this process. ACTUALLY, the bhsic U.S.. i,7sture Under questioning by Rep. Michael toward Allende v:ss set i'orth by J. Harrington (D-Mass.), Colby thus Henry A. Kissinger, then the White testified that the CIA's "appreciation" Louse special assistant for national se-' of the Chilean economy was that] it curity affairs, at a background briefing was on a declining plane on the eco- for the press in Chicago on Sept. 16,1970, nomlc ground In terms of internal eco- 12 days after Allende won a plurality in nomic problems -- inflation, with 320 the elections and awaited a run-off vote01 per cent inflation in one year, the clos- in Congress. Kissinger said then. that if ure of the copper mines, and so forth, Allende were confirmed, a Communist. your total foreign deficit was more reginte-would emerge in Chile and that than the need for it. They ebuldn't im. .Argentina, Bolivia and Peru might fol- port the food because their deficit was low this example. such that over the long term they had For the next three years, the U.S. no base for It." Elsewhere in his testi- policy developed along two principal mony, Colby said that the CIA reported lines. One was the denial of all credits "accurately an overall assessment of to the .Allende govern ment-Washing- deterioration" and that with the Chilean ton even blocked loans by international navy pushing for a coup, it was only a institutions-to aggravate Chile's eco- question of time before it came. nomic situation when Allende himself But Colby also told the subcommittee was boggin down in vast mismanage that "our assessment was it might be ment of his own. The other line was unfortunate if it coup took place. The the supportive CIA activity to accelerate National Security Council policy was the economic crisis and thereby encour-7P2.7-that it is consistent with the feeling it age domestic opposition to Allende's. is not in the United States interest to Marxist Popular Unity government Lromote it." Ho made this comment coalition after Rep: Charles W. Whalen (R-Ohio) The only exception to the ban on credits was the sale of military equip- - ment to the Chilean Armed forces- Including the decision last June S. to sell Chile F-5E jet fighter planes -- presumably to signal United States sup- port for the military. Colby's testimony as well As other information ahowec: fusel to h"lp Chile, even on humani- tarian- grounds, was emphasized about a week before the military coup when it turned down Santiago's request for credits to buy 300,000 tons of wheat here at a time when the Chileans had. run out of foreign currency and bread shortages were developing. On Oct. 5, however, the new military junta was granted $24.5 million in wheat credits after the White House overruled State Department objections. The department's Bureau of Inter- American Affairs reportedly believed that such a gesture was premature and could be politically embarrassing. An "Unfortunate" Coup PARADOXICALLY, Washington had not hoped for the kind of bloody military takeover that occurred on Sept asked Colby whether he agreed with earlier testimony by Jack Kubi,ch, the Assistant secretary of state for Inter- American affatrs, that the administra- tion believed that. "!t would be adverse to our own Unit,.d States interest if the government of Chile were overthrown." Th1_s theme was further developed In on Oct. 8 front Richard A. Fagen, I l rt eel actence at Stnn- tiros of the nlilitar& government's ice'. that tho United States had maintained professor of po pression is four tI Appf1QVRdcFa rsReleq?#e2QQ4/c,Qa ij;lh:tg"lai?9AtQQ4il0F 0' 0 ~~0t1 e'i. J. William Ful- lia o figures but that the United States, non , c tairntan of the Senate Foreign g after Allende 's election. Relations Committee, reporting on a in effect, condones mass'executions and The Nixon administration's' firm re- meeting between Kubisch and a group 'Approved For Release 2004/03/11 : CIA-RDP90-0061OR000200090001-6 'A' lie 1 ,oitozrtic Role "Conncern Over Seettrity;' ? I the dissidents. The military leaders &p 11 NL', OF THE MOST intriguing dlis? ~HIIOUGIIOUT his testimony, Colby p$ parently are willing to alienate some ~J closures made by Colby In his tes- drew a grim picture of the janta'e. support at hone and endure a bad tintony was that the CIA is actively en- repression and, in effect, predicted thr.t press abroad, in order 1o consolidate gaged in economic hcgotiations between it would worsen even more becausm of their hold on the country and finish the United States and foreign coup- the continued strength of the Chilean the job of rooting out Marxist influ? tries. This has not been generally known left. His estimates of the death toll ence." here but Colby told. the subcommittee were roughly four tines the figures n {UtatS"we would normally contribute to announced by the. junta and he told the C}taboo of "Civil War (a) negotiating team." subcommittee that the Chilean military. HArmed ESCRIBING the present situation. He said that "we would try to pro. had a list of the "most wanted" Allende Colby said: vide them intelligence as backdrop for followers whom they hoped to find and resisters continue to be PSI their negotiations and sometimes help possibly execute. I executed where they are found, and a them with appreciation of the prob- 'Communist Party chief Luis Corti number of prisoners have been shot, 1em . We follow the day-to-day prog- Lalan Is being or will be tried for PPF upposedly while `trying to escape.' a ths probably number 200 or 5CE7 ress in negotiatio:,: If it's an import-p/ treason. He may well be sentenced to Such dea nt economic negotiation, like (Trcas-! death regardless of the effect on inteir- more .; . Several thousand people rn- S.uail 4 ury) Secretary Shultz over in Nairobi death L regardless opinion," Colby said. This in,, main under arrest, Including high-rank. and places like that, we would be in formation led to this exchange: ing 'officials of ? the Allende govern. formed of what they are doing and try VVIiAL N: You mentioned those moot:' to help them." In the context of the Chilean-Amerl- being accused of treason. Did these Al- Answering questions, Colby aoretd legedly treasonable activities occur after that the CIA's figure of more than Z00 an negotiations before the coup, the 7c CIA's Davis said that..,wc did have the takeover by the militaryT executions was higher than the jttnta's ~?? official estimate. He added that1"thrre some quite reliable reporting at thepW COLBY: I think what I referred t. rere a couple thousand, at leant, kill- time indicating that the Russians were was the head of the Communist Party d (luring the fighting which surround. advising Allende to put his relations who would probably be tried for that L! with the United States In order, if not treason. d ou the went coup. to a It is city quite morgue possible you tgeoid - to settle compensation, at least to reach He would probably be tried feY nd that number. The official figure of some sort of accommodation which treason. He would probably be tricd1l total killed is 476 civilians and 57 troops 7,53 would ease the strain between the two for activities prior to the takeover. You I to a total of 513. We would truess, we countries. There were reports Indicat? can have some question as to how valid would estimate, it is between 2,000 and ing that, unlike the Cubans, they were that is In a constitutional legal sense. 3,000 killed during the struggles. That In effect trying to move Allende 'to- There have been some who have baon would not be in my classification as 9y 7I/' ward a compromise agreement .. . It accused of it since the takeover. execution Some of those were shot S QF TEj' was our judgment that the [Chileans] WHALEN: That confuses me. If he !e down. There is no question about that. C were interested In working out some kind of modus vivendi without, however, tried for treason against a government !'hey'arc not just bystanders . . retreating substantially from their.. po- [he] supported, I cannot understand Colby disagreed, however, with Rep. sition." that. Q63 Robert I3. Steele (R-Conn.) that the F Davis added' that "our intelligence L-QQLBY: You are right. . ? junta' killin s have "done no one any I requirement in the negotiations be- This was Colby's assessment of the good." twecn the United States and Chile resent situation: "I think our appreciation is that it -l'- does them some good ;~:. The Junta, %,f: 'ify r i~S6would be to try to find out, through "Armed opposition now appears to f our sources, what their reactions to a be confined to sporadic, isolated at. their concern is whether they could negotiating session were, what thni~r tacks on security forces, but the regime take this action of taking over the reading of our position was, what their believes that the left Is regrouping farP63 government and not generate a real assessment of the state of negotiation coordinated sabotage and guerrilla Ll war, which was the real chance p7-Festivity. The government probably In ause the Allende supporters were a right in believing that its opponents ly activist. There were armies In In his narration of the events leading country. There was at least' a good have not been fully neutralized. Our to the coup, Colby said that "under the reports indicate that the extremist nce of a real civil war occurring as general deterioration, it was only a movement of the Revolutionary Loft esult of this coup," Colby said. pS -1matter of getting the Army, the Nail believes its assets have not been Asked whether civil war remained a id the Air Force to cover it. Eventu- damaged beyond repair. It wants to possibility, Colby replied that " was. ? launch anti-government 'activity as It's obviously declining, but it was a Laally they did get them all i.n. Colby real possibility. Yea, I think it is it real __then compared the Chilean coup to thtt soon as practical and is torp.i opposition ~J possibility. Whether it's a certainty or 1967 Indonesian revolution, reputedly parties. Other leftist groups, Including Lnot Is not at.al.l sure." assisted. by the CIA, when the army the Communist and Socialist parties, ousted President Sukarno. He said the are in disarray, but they have not bran CIA shared the suspicions of the CUP destroyed. Exiled supporters of the oust. ~C~I can military that Allende was plan- ed government are organizing abroad, namely in Rome." . i - -n -fursr ning a coup of his own on Sept. 19 to Colby -told the subcommittee that neutralize the armed forces, but ssl'9 "concern over security undoubtedly is the CIA had no firm information con- what accounts for the junta's contin? firming these suspicions. ued use of harsh measures to deal with Approved For Release 2004/03111 CIA-RDP90-00610R000200090001-6 Approved For Release 2004/03/11 : CIA-RDP90-0061OR000200090001-6 Approved For Release 2004/03/11 : CIA-RDP90-0061OR000200090001-6 25X1 Approved For Release 2004/03/11 : CIA-RDP90-0061OR000200090001-6 Next 6 Page(s) In Document Exempt Approved For Release 2004/03/11 : CIA-RDP90-0061OR000200090001-6 Approved For Release 2004/03/11 : CIA-RDP90-0061OR000200090001-6 Approved For Release 2004/03/11 : CIA-RDP90-0061OR000200090001-6 Approved For Release 2004/03/ 0610R000200090001-6 25X1 DATE COMMITTEE MEMBERS SUBJECT April 1964 May 1964 19 May 1964 1-louse & Senate Appropriations Chairmen House & Senate Appropriations Chairmen CIA Subcommittees Senate Russell Appropriations & Armed Services Saltonstall Hayden Stennis Young July 1964 House & Senate Appropriations Chairmen August 1964 House & Senate Appropriations Chairmen 25 March 1965 CIA Subcommittees Senate Stennis Appropriations & Armed Services Saltonstall Young 25 March 1965 CIA Subcommittee of House Rivers Armed Services Philbin Hebert Price Hardy Bennett Bates Arends O'Ko.nski Bray SECRET) 25X1 25X1 Approved For Release 2004/03/11 : CIA-RDP90-00610R000200090001-6 Approved For Release 2004/Q %I,: IA-RDP90-0 610R000200090001-6 25X1 15 April 1965 CIA Subcommittee of House Mahon Appropriations Bow Lipscomb 11 August 1965 Special Group, House Mahon Appropriations Committee Andrews Lipscomb Bow 14 September CIA Subcommittees of Senate Russell 1965 Appropriations and Armed Stennis Services Hayden Young 21 September CIA Subcommittees of Senate Russell 1966 Appropriations and Armed Symington Services Stennis Saltonstall Young Smith September 1968 House & Senate Appropriations Chairmen 13 October 1970 CIA Subcommittee of House Mahon Appropriations Andrews Bow Minshall 25X1 25X1 No briefing on covert action. Intelli-- gence briefing 7CRET 25X1 2 Approved For Release 2004/03/11 : CIA-RDP90-00610R000200090001-6 Approved For Release 2004/03/11 : CIA-RDP90-00610R000200090001-6 -E CB. E DATE COMMITTEE November 1970 House & Senate Appropriations 19 November Defense Subcommittee, Senate 1970 Appropriations Ellender Stennis Pastore Mansfield Young Smith Allott Hruska Symington Jackson Thurmond 11 June 1971 Intelligence Operations Sub- Ellender Committee of Senate Stennis Appropriations Young 3 February 1972 Defense Subcommittee, House Mahon Appropriations Sike s Whitten Flood Addabbo McFall Minshall Rhodes Davis Wyman May 1972 House & Senate Appropriations Chairmen Approved For Release 2004/03/11 : CIA-RDP90-00610R000200090001-6 25X1 25X1 Approved For Release 2004/03/11 : CIA-RDP90-0061OR000200090001-6 DATE 3 CRS January 1973 House & Senate Appropriations 16 January 1973 Defense, Military Construction Subcommittees, House Appropriations 13 March 1973 CIA Subcommittees of Senate Armed Services and Appropriations 13..March 1973 Same Mahon Sikes Whitten Flood Addabbo McFall Flynt Minshall Rhodes Davis Wyman Patten Long Hansen McKay Cederberg McClellan Pastore Hruska Symington Jackson Thurmond McClellan Hruska Symington Church (invitee) 25X1 25X1 25X1 25X1 25X1 Approved For Release 2004/03/11 : CIA-RDP90-0061OR000200090001-6 DATE March 1974 Approved For Release 2004/03/11 : CIA-RDP90-00610R000200090001-6 COMMITTEE MEMBERS Subcommittee on Multinational Corporations, Senate Foreign Relations Committee Church Fulbright Symington Aiken Case Percy .C-'., ,n Approved For Release 2004/03/11 : CIA-RDP90-00610R000200090001-6 25X1 SUBJECT 25X1 25X1 Approved For Release 2004/03/11 : CIA-RDP90-0061OR000200090001-6 DATE COMMITTEE 11 October 1973 Intelligence Operations of Senate Appropriations 11 October 1973 Inter-American Affairs Fascell Subcommittee of House Foreign Rosenthal Affairs Harrington Steele Whalen 16 October 1973 Special Group of House Appropriations Mahon Whitten Sikes Minshall Cederberg 25X1 25X 26 November Subcommittee on Western Hemi- McGee 1973 sphere Affairs of Senate Foreign Sparkman Relations Committee Muskie Aiken Case Scott Pearson 22 April 1974 Subcommittee on Intelligence of Nedzi House Armed Services McClellan Young SECR 25 25X1 25X1 25X1 Approved For Release 2004/03/11 : CIA-RDP90-0061OR000200090001-6 Approved For Release 2004/03/11 : CIA-RDP90-0061OR000200090001-6 Approved For Release 2004/03/11 : CIA-RDP90-0061OR000200090001-6