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Document Number (FOIA) /ESDN (CREST): 
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Document Creation Date: 
December 22, 2016
Document Release Date: 
May 24, 2011
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Publication Date: 
December 1, 1980
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PDF icon CIA-RDP90-00806R000100140083-4.pdf63.9 KB
Sanitized Copy Approved for Release 2011/05/25: CIA-RDP90-00806R000100140083-4 THE PROGRESSIVE December 1980 k try w ~, 1"'^' 10, 10%e y4fr1 M7= K? Z+r y~~A~l~:7- Q./{!~ y J.4 Fighisng words ... A shouting match broke out during the recent an- nual meeting of the Association of Former Intelligence Officers, a public education" group for some 1,500 former CIA, FBI, and military intelli- gence officers, founded in 1975 by former CIA Chile Task Force chief David Phillips. During a panel on terrorism, Ray Cline, once the CIA's Intelli- gence Division chief and a Reagan campaign adviser, argued that !eft-wing terrorists- were trained and controlled by Moscow. The FBI's terrorism chief said there was "no proof-" An ang Howard Bane, , who recently re- tired as CIA's terrorism chief, scoffed at Cline: "That's just right-wing non-. sense. It's divisive and untrue.'-. Troubled waters ... The mysterious death of John-Paisley, a former top CIA analyst of Soviet arms developments, continues to find its way into the new-and now in Australia. Last year, it was reported that Paisley, who supposedly committed suicide on his sloop in Chesapeake Bay in Sep- tember 1978, was a CIA contact for Richard Nixon's White House "plumbers." Reports from Australia say Paisley was a close friend of Walt McDonald, a twenty-five-year consultant to the CIA and, at the same time,.. a participant in a shady worldwide financial operation called the "Nugan Hand Bank." Founded in 1973 by former Green Beret Nlichael Hand and several other individuals listing their addresses as "do Air America, San Francisco" (a wholly-ownedC IA subsidiary), the bank opened with offices in Asia, Latin America, West Germany, and Saudi Arabia with Si million .t in assets, which increased a thousand-fold within a few years. Other high CIA and intelligence-connected ofiicials,.including William Colby, were i close to the bank's founders. According to Australian press reports, the firm was bankrolling international narcotics operations. Some of the money ended up in pro-U.S. Australian labor union coffers. Following the reports, .-` Michael Hand disappeared. Partner Frank Nugan was found shot dead in his Mercedes. The bank has collapsed. Sources suspect the Paisley and Nugan Hand affairs are linked. On board hisyacht, Pais+ey had highly classified radio gear capable of communicating via.satellire with the CIA ground station at Pine Gap, Australia. His tele- phone diary had Walt McDonald's name in it. . More irstehigence... Jim Hougan, author of Spooks, and Washington researcher Roi'ert Fink have signed a contract to write the story of the Wa- tergate affair- What's new about that? Hougan and Fink are said to have conchided d at the CIA set up the White House plumbers to be captured at the Watergate, thus knocking Nixon out of office. J. S. Sanitized Copy Approved for Release 2011/05/25: CIA-RDP90-00806R000100140083-4