SECRECY, CENSORSHIP ARE REAGAN LEGACIES

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP91-00901R000100120001-6
• Release Decision: RIPPUB
• Original Classification: K
• Document Page Count: 133
• Document Creation Date: December 19, 2016
• Document Release Date: January 10, 2006
• Sequence Number: 1
• Publication Date: December 28, 1987
• Content Type: NSPR

The Washington Post
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i.,rk Times
The Washington Times
ANTHONY
LEWIS
Secrecy, Censorship
Are Reagan Legacies
BOSTON
Secrecy in government has a thousand fa-
thers: a thousand excuses. But Frank Car-
lucci, the new secretary of defense, came
up with a particular gem last week. He testified
that the president should not have to inform the
congressional intelligence committees promptly
about covert operations because foreign countries
whose help we need do not like the idea.
"These countries don't always understand our
institutions," Carlucci said, "and simply cannot ap-
predate the oversight mechanism. They are basi-
cally mistrustful of the dissemination of informa-
tion beyond the executive branch."
In other words, the United States has to trim its
system of government to suit other countries, many
of them tyrannies. Of course the excuse of what
other countries think is just that: an excuse. The
real reason for opposing this bill is power. The
president and his people want the power to act on
their own, without the inconvenience of having to
explain and justify their policy.
Every effort by the executive branch to keep its
policies secret is essentially a grab for power. Se-
crecy is the modern battleground of the eternal
struggle for power and the American system of
divided government.
Indeed, it is the current habit of executive offi-
cials to claim that any effort to keep the president
accountable to Congress is an invasion of his con-
stitutional power.
STAT
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1.01.4 is Asiz IA, 3-8
Date
Congress, with its plenary authority over what
the government spends, could at any time prohibit
all covert operations. To require a prompt report
on them is a far milder exercise of its undoubted
power. But nowadays there is a cult of presidential
power on the American right. Its spokesmen argue
that presidents must be free to do whatever they
want in foreign affairs: start wars, spend money,
ignore Congress.
Anyone seriously interested in how our constitu-
tional system governs the conduct of foreign af-
fairs should read an article in the current issue of
Foreign Affairs by Louis Henkin, a professor at
Columbia University.
He concludes that current clashes over the Con-
stitution and foreign policy stem "not from consti-
tutional uncertainties but from unhappiness with,
even resistance to, what the Constitution pre-
scribes." Presidents just regard the Constitution as
out of date for our work].
The royalist view of the presidency has in fact
been tried in recent years, and the record speaks
for itself. Presidents acted on their own, in secret,
at the Bay of Pigs, in Vietnam, in the Iran-Contra
affair. Those exercises of power without account-
ability were disastrous.
It turns out that the men who wrote our Constitu-
tion 200 years ago knew best after all. In foreign
affairs, as in domestic, policy is wiser when there
are checks on its exercise.
The Reagan administration has, pushed the
claims of executive secrecy and power to new
extremes. A recent report by the civil liberties
group People for the American Way traces the
growth of secrecy in myriad ways: a secret Penta-
gon "black budget," unreported presidential direc-
tives, censorship. It will be one of Reagan's most
crippling legacies to this country.
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Date 11 Per._ 'it?
Corporate Post Made Carlucci Rich
By Molly Moore
Washington Post Staff Writer
Defense Secretary Frank C. Car-
lucci became a millionaire in private
business during the four years be-
tween leaving the Pentagon's No. 2
position in 1983 and returning to
government employment earlier
this year, according to his federal fi-
nancial disclosure reports.
Carlucci's disclosure papers, filed
after he was nominated defense
secretary in November, state that
his salary and bonuses totaled $1.2
million in 1986, including a
$735,722 "termination settlement"
when he resigned as chairman of
Sears World Trade Inc.?which
went out of business following
heavy losses?to become President
Reagan's national security adviser
earlier this year.
As a member of Reagan's Cab-
inet, Carlucci is being paid $80,100
per year.
Carlucci's salary in 1986 as a
Sears executive was $385,794, ac-
cording to the report. In addition,
he was paid $63,000 in directors'
fees and other compensation from
six other corporations including
UNISYS Corp., a computer firm
that does business with the Penta-
gon; Rand Corp., and the American
Stock Exchange.
The report also shows that Car-
lucci's investment and stock assets
for 1986 and 1987 are worth be-
tween $1.1 minion and $2.6 million,
a sharp contrast to the assets he
listed in a 1982 report, while he
was at the Pentagon, that showed
assets of between $30,000 and
$100,000. Precise figures are not
available because the federal re-
ports only show a general range of
values.
Carlucci, 57, earned between
$72,000 and $201,200 from those
investments during 1986 and 1987,
according to the report. The
records he filed in 1982 showed in-
come from his assets as $1,900 to
$11,500.
The defense secretary listed his
only liability as a mortgage of
$50,000 to $100,000 on a McLean
rental property.
The four years as a top executive
of Sears, Roebuck and Co. were
Carlucci's only stint in the private
sector after a long career of almost
exclusive government service.
He was a foreign service officer
early in his career, then was ambas-
sador to Portugal. His resume in-
cludes a long list of administrative
its: the second-ranking position at
ihiOffice of Economic Opportunity,
No. 2 job at the Office of Manage-
ment and Budget, second in com-
mand for the Central Intelligence
Agency under Stansfield Turner
and deputy defense secretary under
Caspar W. Weinberger from 1981
to 1983.
He left Sears in December 1986
to become Reagan's national secu-
rity adviser, replacing Rear Adm.
John M. Poindexter. Carlucci suc-
ceeded Weinberger last month.
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Soviet marshal to see
Carlucci at Pentagon
By Bill Gertz
THE WASHINGTON TIMES
One of the Soviets' highest-ranking
military officers will make an unprec-
edented visit to the Pentagon today and
tomorrow at the invitation of Defense
Secretary Frank Carlucci.
Marshal Sergei Fedorovich Ak-
hromeyev, chief of the Soviet general
staff and first deputy minister of de-
fense, will meet Mr. Carlucci in his office
during a brief visit this afternoon, ac-
cording to Pentagon spokesman Fred
Hoffman.
The marshal, a key player in Soviet
arms control negotiations, will join Adm.
William J. Crowe, chairman of the Joint
Chiefs of Staff, for breakfast at the Pen-
tagon tomorrow morning, followed by a
tour of the National Military Command
Center, Mr. Hoffman said.
The center, located deep within the
Pentagon and dubbed "the tank" because
of its tight security, is a huge, high-tech
operations center used for directing U.S.
forces in the event of nuclear war.
"lb my knowledge, it's the first time a
senior Soviet military officer will be in
the building, let alone meeting with U:S.
officials," Mr. Hoffman said.
A former Defense Intelligence Agency
chief, retired Lt. Gen. Daniel 0. Graham,
said he saw nothing unusual about the
marshal's visit. He said he met with
lower-ranking Soviet military officials in
his office during his career at DIA.
Mr. Hoffman said Mr. Carlucci, when
he extended the invitation, did not dis-
cuss the possibility of U.S. officials visit-
ing Soviet defense facilities during a pos-
sible summit in Moscow next year.
Mr. Hoffman said the Soviet military
leader will not receive a "full-blown"
military honor guard. Instead, a military
honor cordon ? two lines of soldiers ?
will greet Marshal Akhromeyev when he
arrives for the meetings.
No agenda has been set for either ses-
sion, he noted.
James T. Hackett, a national security
affairs specialist at the Heritage Founda-
tion, said he thought it was unusual that
no reciprocal visits by U.S. defense and
military leaders had been worked out in
advance.
"One of the basic guidelines for deal-
ing with the Soviets over the years is that
you never do anything without seeking
reciprocal treatment," Mr. Hackett said
in an interview. "I would think that any-
thing we do, like showing them our facili-
ties, should be based on reciprocity"
Mr. Hackett said Pentagon visits are
normally reserved for close U.S. allies.
"It sounds to me as if the administra-
tion is forgetting that the Soviet Union is
an adversary," he said. "They're letting
this whole business of 'glasnost' [open-
ness] get out of hand."
Marshal Akhromeyev, 64, is the Sovi-
et's second-ranking military official after
Defense Minister Dmitri Yazov, Mr.
Yazov took over the military post last May
following a military shake-up sparked by
the penetration of Soviet airspace by
Matthias Rust, a West German who
landed a small plane in Moscow's Red
Square.
Marshal Akhromeyev arrived with So-
viet leader Mikhail Gorbachev on Mon-
day. Mr. Yazov remained in Moscow.
U.S. officials said Marshal Ak-
hromeyev is viewed as a shrewd
negotiator who deftly protected the So-
viet military's interest during arms talks
at the Rekjavik summit last year.
"He's regarded by our people as a
pretty savvy pragmatist and he's got
Gorbachev's ear," said one administra-
tion official, who declined to be named.
Other official sources said Marshal
Akhromeyev is a Kremlin hardliner who
in the past has expressed displeasure
with the Soviets' 18-month moratorium
on nuclear testing.
A biography released by the Pentagon
describes him as "highly intelligent and
well-informed."
"An engaging conversationalist but
tough negotiator in the past, he has dem-
onstrated that he can be reasonable and
for a Soviet, uncommonly flexible," the
Pentagon stated.
Marshal Akhromeyev became chief of
staff in September 1984, replacing
Nikolai Ogarkov, the Soviet military of-
ficial who reportedly was relieved of
command after a Soviet interceptor jet
shot down a South Korean airliner in Sep-
tember 1983.
He was wounded in World War II dur-
ing the siege of Leningrad.
The marshal became chief of staff and
first deputy commander of the Far East-
ern Military District in 1972 and moved
up to the Moscow general staff in 1974.
Between 1979 and 1984 he was first
deputy chief of the general staff.
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Car1i1edf131ge "?
Man About
Intelligence
By Amos Bamford
CAMBRIDGE, MA23.
Ayear ago he ran a small, money-
losing division of Sears. Two
weeks ago he was in charge of a
micro-sized unit, the National Security
Council, in the White House. Today Frank
C. Carlucci, the newly appointed Secre-
tary of Defense, directs the activities of
close to 31/2 million people and supervises
the spending of more than a quarter of a
trillion dollars. At the same time, in a far
less visible role, he directs the free
world's largest and most complex intelli-
gence organization.
Carlucci's swearing in last week com-
pletes a revolution in the U.S. intelligence
community that began with the appoint-
ment of former FBI chief illiam H
Webeter to take over the critically
Central Intelligence Agency. Although
little noticed by the public, responsibility
for the collection of intelligence has
I shifted dramatically over the last three
' decades from the CIA to the Pentagon.
The primary reason is technology. In the
19508, former CIA Director Allen W.
Dulles chose to concentrate on the tradi-
tional human side of espionage, allowing
the Pentagon to grab onto the budding
techno-spies ?satellites, listening posts
and reconnaissance planes.
Eventually, because it became more
efficient to take a high-resolution photo-
graph from space or eavesdrop on key
communications than attempt the difficult
task of recruiting an agent-in-place, the
Pentagon began getting a larger share of
the intelligence dollar. So the CIA, to
justify its existence, began shifting efforts
away from its original purpose?espio-
nage?toward the risky and questionable
areas of covert action and paramilitary
operations.
Today the Pentagon controls the larg-
est intelligence machine the world has
ever known and it will be one of Carlucci's
most difficult tasks to bring it under
control. Among the organizations now
under his authority is the National Re-
connaissance Office, the highly secret and
expensive joint Pentagon-CIA agency
responsible for the development and
operation of the nation's growing fleet of
spy satellites. For the loft several years
the NRO has been in a state of near
emergency, as the launch systems de-
signed to put new and replacement satel-
lites into space?the space shuttle and
Titan rockets?encountered serial disas-
ters. The organization now appears on its
way to recovery with the successful
launch lastArrientilveal kir Res%
rocket carrying a critically needed er
photographic satellite.
-IktrueusHto
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Another large network now under
Carlucci is the Defense Intelligence
Agency, the Pentagon's own expanding
organization that performs myriad
tasks?from analyzing photos by spy
satellites to running the Defense Intelli-
gence College to collecting human intelli-
gence from a worldwide corps of military,
naval and air attaches.
But there are two areas the new
secretary will have to take an especially
close look at: the National Security Agen-
cy and the ad hoc intelligence units set up
by various military services. NSA eaves-
drops on communications and makes and
breaks codes, making it the agency that
could most effectively spy on U.S. citizens
If directed to do so. In 1975 91011-Sen.
Frank Church (D-Ida.), who conducted a
Senate investigation of intelligence abus-
es, said of NSA technology: That capa-
bility at any time could be turned around
on the American people and no American
would have any privacy left; such [is] the
capability to monitor everything . . .
there will be no place to hide."
Because of its potential for abuse, NSA
directors must demonstrate absolute
trustworthiness or else be replaced. And
this is an evaluation Carlucci will have to
make about the current director, Lt. Gen.
William E. Odom, whose actions during
the Iran-Contra affair raised important
questions. Because of the agency's enor-
mous capability to intercept communica-
tions worldwide, it picked up many mes-
sages and telephone conversations among
and involving the participants in Iran,
Israel and Washington. Instead of passing
this information on to his boss, then-Sec-
retary of Defense Caspar W. Weinberger,
as required, Odom bypassed the normal
chain of command and gave it to the
National Security Council. Thus Wein-
to.ur 1d tilt find out the policy he had
opposed was being implemented.
This led to Weinberger's extraordinary
admission during last summer's Iran-
Contra hearings, his first discovery that
the United States was negotiating with
Iran came through an NSA intercept that
was placed on his desk by accident. He was
thfIr ?;oti by th:, NIA, his subordinate
given the report
by mistaite and wasn't entitled to know
anything more. The American public
needs reassurance that such behavior will
not be repeated.
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The other area requiring a hard look by
Carlucci is the maze of small, specially
trained intelligence and paramilitary
- ?-? ?-? -- ? - ? secrecy
L., the
Bet
up
m i. At the tate, NSA's Odom, then
the Army's intelligence chief, argued that
the ISA was needed to fill a gap in the
CIA's many activities. Congressional in-
telligence committees were never in-
formed of the unit's creation and, like
Weinberger in the Iran negotiations,
discovered it only by accident. Eventual-
ly, the ISA placed agents throughout the
world, operating under various covers. In
Panama, for example, the agents used a
refrigeration company as a front
Among its activities was an unauthor-
ized plan to conduct a raid into Laos in
search of missing Americans from the
Vietnam War. According to one report,
Weinberger became so incensed that he
ordered the ISA disbanded. But it sur-
vived nonetheless. Other mysterious,
highly compartmentalized intelligence
units set up in the Army have now come
to light, including those with such bizarre
names as Sea Spray, Yellow Fruit and
FOG ( Field Operations Group). When one
such organization gets into trouble and
has to be disbanded, it often simply
reemerges under a new name. A secret
naval intelligence unit known as Task
Force 157, for example, became public and
was supposedly disbanded in 1976. But a
few years later a nearly identical unit,
Task Force 168, quietly emerged and still
exists.
There are probably few people better
equipped to deal with these problems than
Carlucci, who has served in the Office of
Management and Budget, as a U.S. am- ,
bassador and in the State Department, as
the former No. 2 man at the Pentagon and
as the CIA deputy director under Stens-
field Turner. To some extent the problems
may seem like dela vu.
In his book, "Secrecy and Democracy,"
Turner wrote that Carlucci "had come to
perceive that running the CIA from the
director's office was like operating a
power plant from a control room with a
wall containing many impressive levers
that, on the other side of the wall, had
been disconnected. We decided that we
were not really in charge of a single CIA,
but of three separate organizations oper-
ating almost with autonomy. Neither of us
had ever seen anything like it before." 0
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Frank Carlucci's challenge
"My own philosophy," Frank Carlucci
the Senate Armed Services Committee
1981 when he was appointed deputy sec
tary of the Defense Department, "is that
all have to compromise. That's what it's
about." While Mr. Reagan's choice to repla
departing Defense Secretary Caspar We
berger brings outstanding credentials to t
herculean task of running the Pentagon
the last days of the Reagan era, a philosop
of compromise is not what gained Mr. Wei
berger the reputation for integrity an
strength for which Mr. Reagan praised hi
last week. Moreover, it is unlikely that wi
ingness to compromise will help the pre
ident in the months to come.
Still, Frank Carlucci brings to his new jo
long experience from the foreign service, th
CIA, the Pentagon itself in the first year o
the Reagan administration and, most r
cently, the National Security Council in a
era when that office seemed about to decom
pose in the wake of the Iran-Contra episode
The one quality that distinguishes him i
his ability to serve different masters effi
ciently and faithfully.ty director o
the CIA under Stansfield
Carter administration for exam leMr. Car
lucci amed the re utation of bein Admiral car--M-"Tr----*'9
forms that left the a enc nearl blind in an
K.ae o rain t terrori and an escalating
kyltuagasuLb..uildugo. At the NSC, Mr. Car-
lucci ironically was instructed to do a similar
thing in the wake of the Iran-Contra affair.
He thus has shut down operations and retired
staffers who had done more than their own
part in reconstructing vitally needed pro-
STAT
Date
told grams. Conversely, as ambassador to Portu-
in gal in the 1970s, Mr. Carlucci helped prevent
re- the rise of a communist government there,
we even though his strategies put him at odds
all with Henry Kissinger.
ce
in- Frank Carlucci, then, is the consummate
he aparatchik. He now faces his most difficult
in challenge ? to follow the example set by Mr.
hv Weinberger, and fight relentlessly to keep
n-
- American defenses strong. That means, at a
U very minimum, promoting the Strategic De-
m fense Initiative, and ensuring that it does not
11- become a strategic arms control bargaining
chip.
s-
It also means that he not only must battle
b Congress to keep our defenses strong, but
that he also must wage internecine warfare
f to keep the Pentagon in the policy loop in
e- arms control. The Pentagon is not formally
b part of the arms control process, but Mr.
Weinberger by his own adherence to princi-
ple for the last seven years kept at bay the
s party of compromise with Moscow, and again
Mr. Carlucci would do well to follow his exam-
f pie.
Mr. Carlucci's hearings before the Senate
Armed Services Committee should present
an opportunity for eliciting commitments
from him on SDI and arms control issues that
will show Congress ? and Moscow ? that he
will stand fast for the policies of the man who
appointed him. If he makes these commit-
ments clear, then we will be able to say of him
what Mr. Reagan said of Mr. Weinberger last
week, that he brought "courage, constancy,
loyalty, together with uncommon brilliance,
decisiveness, and determination" to a diffi-
cult job.
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The Washington Post
Carlucci a Tough Pragmatist
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By EI4INE SCIOLINO
to The New York Times
WASHINGTON, Nov. 5 ? When
President Reagan was considering
several ideas about how to retaliate
against Iran's attack on a Kuwaiti
tanker flying the American flag last
month, he accepted the option proposed
by his national security adviser, Frank
C. Carlucci.
The Joint Chiefs of Staff argued that
the United States should sink an Ira-
nian frigate, while Secretary of State
George P. Shultz telephoned from the
Middle East that he favored an attack
against the Iranian Silkworm missile
installations on the Fao peninsula. But
Mr. Carlucci fought for a more meas-
ured response to give the Administra-
tion more room to maneuver should it_
have to retaliate again, persuading the
President to attack two Iranian off-
shore oil platforms.
That the 57-year-old Mr. Carlucci
won illustrates how much the Presi-
dent has come to rely on him in the 10
months since he assumed the White
House's top foreign policy position. It
also reflects how Mr. Carlucci. a con-
, trolled, low-key official who has held
? senior military, diplomatic and intelli-
gence posts both Democratic
Republican admimstrations, f
quentlyworked his will on Administra-
tion golicy.
"He has a realistic appreciation of
what to do in difficult circumstances,"
one senior White House Official said of
Mr. Carlucci, who was chosen today as
Secretary of Defense. "He took over
the job in incredibly difficult circum-
stances but gradually has gotten every-
body's confidence."
Warm Relations on Capitol Hill
' Unlike the retiring Tefense Secre-
tary, Caspar W. Weinberger, who has
repeatedly clashed with lawmakers
over key military issues, Mr. Carlucci
has taken pains to cultivate his rela-
tionship with Capitol Hill.
-Last week the White House sent out
signals that it would delay its request
for a $270 million aid package to the
Nicaraguan rebels after Mr. Carlucci
reported he was persuaded by key Re-
publican lawmakers that the Adminis-
tration would_ lose badly if it pressed
for a vote. Earlier last month he was
instrumental in working out a compro-
mise with leading senators to rescue $1
billion of the floundering arms package
for Saudi Arabia.
1
Until recently, Mr. Carlucci, sensi-
tive to criticism by Secretary of State
Shultz of the expansion of the National
Security Council's role in foreign poli-
cy, has avoided the limelight.
When Mr. Carluc'ci consulted di-
rectly with ambassadors in Washing-
ton and took a highly Visible trip to
European capitals last summer to gar-
ner support for the Administration's
Persian Gulf policy, Mr. Shultz was
said to be deeply annoyed.
But last month Mr. Carlucci began to
assume a higher profile. He appeared
on television talk shows two weeks in a
row. Wednesday night in an on-the
record address to the Council on For-
eign Relations in New York, he
strongly defended the Administration's
military buildup in the Persian Gulf
and titillated,. the audience of foreign
policy experts with his first-hand anec-
dotes about the Soviet leadership.
Despite his origins as the grandson Of
an Italian immigrant stonecutter, Mr.
Carlucci grew up comfortably in
Scranton, Pa., the son of a successful
insurance broker. After graduating
from Princeton University and attend-
ing Harvard Business School, he spent
two years in the Navy and a brief stint
as a rental agent, salesman and swim-
wear management trainee before join-
ing the Foreign Service 31 years ago.
A short, athletic man who was on the
wrestling team in college, Mr. Carlucci
has been known to embrace dangerous
assignments. As a junior Foreign Serv-
ice officer in the Congo in the early
1960's, he was stabbed and beaten by
an angry African mob, challenged at
bayonet point by Congolese soldiers
and threatened with arrest, winning a
State Department award for bravery.
Mr. Carlucci has probably held a
wider ram of senior Government
positions than anyone in Washington.
He has held the post of chief deputy at
the Pentagon, the Central Intelligence
Agency, the Office of Management and
Budget and the now defunct Depart-
ment of Health. Education and WeI-
fare. He was also of the Office of Eco-
nomic Opportunity, the domestic pov-
erty program under President Nixon.
Foreign Service Officer
A former Ambassador to Portugal,,
he has also served as a Foreign Service
officer in South Africa, the Congo, Zan-
zibar and Brazil.
Mr. Carlucci's only serious foray into
the private sector was unsuccessful. In.
the three years before becoming na-
tional security adviser after the abrupt
resignation of Vice Adm. John M. Poin-
USA Today
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Date 11 WOO T1---
dexter, he did not distinguish himself
as president and chief operating officer
of Sears World Trade Inc., an interna-
tional business subsidiary of Sears,
Roebuck & Company. Early this year,
the unprofitable subsidiary was folded
into other Sears operations.
A fiercely competitive tennis player,
Mr. Carlucci plays on his own court in
the backyard of his McLean, Va., home,
which a Washington monthly recently
assessed at $1 million. Although Mar-
cia, his second wife, is generally re-
garded as a better player, he is known
to publicly criticize her game in their
doubles matches. Mr. Caducei has
three children, two by his first wife and
one by the second.
As Secretary of Defense, Mr. Car-
lucci is expected to be less combative
than Mr. Weinberger, whom he served
as deputy, and less likely to make snap
judgments, according to his colleagues.
Like his former boss, however, he in-
tensely mistrusts journalists and
fiercely opposes . unauthorized disclo-
sures of classified. information.
"He's much calmer, more realistic
and less ideological than Weinberger,"
said one senior official who works
; closely with both men. "And that, by
j God, is what. we need these days."
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The Washington Post
1 010012T01,011t6York Times
The Washington Times I? 6_
The Wall Street Journal
The Christian Science Monitor _
New York Daily News
USA Today
The Chicago Tribune
Carlucci has been a key player
for Democratic, GOP presidents
Date _ "LW 0 !?/_ 1 7
Frank Charles
Carlucci III
? Born Scranton, Pa., Oct. 18,
1930; A.B., Princeton University,
1962.
? Foreign Service officer in
South Africa, The Congo,
Zanzibar, Brazil, 1956-1969.
? Assistant director for
operations, Office of Economic
Opportunity, 1969; director.
1970.
? Associate director, Office of
Management and Budget, 1971;
deputy director, 1972.
ARTICLE APP
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STP
NSC chief scores Times editorial on covert actions
I am writing to correct the pro-
found mistakes of fact and interpre-
tation contained in The Washington
Times' Aug. 12 editorial, "The Rea-
gan dissolution continues."
A revised system for approval, re-
view and notification of special ac-
tivities was outlined in President
Reagan's letters of Aug. 7 to Sens.
David Boren and William Cohen, re-
spectively chairman and vice chair-
man of the Senate Select Committee
on Intelligence. Far from "disabling
our spy activities" as The Times'
editorial suggests, the procedures
established by the president ensure
that such activities will continue to
be effective. They reflect his firm
view that, while the existing stat-
utory framework in this area should
not be changed, new executive
branch procedures to implement
current statutes nevertheless are de-
sirable.
'lb correct the principal errors of
fact, I note the following.
First, there has been and will be
no redefinition of so-called special
activities, which will continue to be
defined as in Executive Order No.
12333 of 1981. The new procedures
accordingly will not affect counter-
intelligence activities or sensitive
intelligence collection operations.
Second, in affirming that special
activities conform to applicable law,
the procedures fit within existing
statutes, which do not require ap-
proval by the intelligence commit-
tees as a condition precedent to ini-
tiating such activities.
Third, for the most part these
procedures merely regularize exist-
ing practice followed by the NSC and
CIA, including accepted mecha-
nisms and timetables for notifica-
tion to the intelligence committees.
In this respect, they establish an ap-
propriate framework for ensuring
the indispensable congressional
support for special activities. As the
president wrote, "We cannot con-
duct an effective program of special
activities without the cooperation
and support of Congress."
Finally, The Times' editorial mis-
leads readers to believe that the
president surrendered his constitu-
tional authority and, in the process,
rendered our intelligence services
ineffective. Indeed, the adoption of
new procedures by the president re-
presents the exercise of that very
authority. Meaningful executive
branch review and coordination and
appropriate notification to Con-
gress, implemented with due regard
for protection of intelligence
sources and methods, will not
"bureaucratize covert actions:' Nor
will they reduce the president's abil-
ity to act in the most extraordinary
circumstances with that degree of
secrecy and dispatch necessary to
ensure the security of the nation and
its citizens. Rather, they will better
ensure that special activities are
properly authorized, are carried out
according to law and are consistent
with the national policy they are in-
tended to serve.
FRANK C. CARLUCCI
Assistant to the President
for National Security Affairs
Washington
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21 May 1987
Webster expected to
000100120001-6
reins with quiet efficiency
By Bill Gertz
THE WASHINGTON TIMES
The CIA, subject to unusual pub-
lic scrutiny and with a new leader, is
not expected to undergo radical
changes under William H. Webster,
according to present and former in-
telligence officials.
Several intelligence officials,
speaking on condition of anonymity,
said Mr. Webster, a former federal
judge who ran the FBI for the past
nine years, plans to approach his
sTAltiew job with an impartial "judicial"
perspective that they welcome.
Mr. Webster was confirmed as
CIA director by the Senate Thesday,
by a 94-1 vote.
One senior FBI official said Mr.
Webster will be "coming over light"
to the agency's headquarters in
Langley, Va. The new director is ex-
pected to bring a small staff that in-
cludes FBI Special Assistant John B.
Hotis, FBI Assistant Director for
Public Affairs William Baker, two
law clerks and his longtime FBI sec-
STATetary, the official said.
"He will be depending a lot on the
people already over there, espe-
cially [CIA deputy director] Bob
Gates," the official said. "He dcralit
y strong feelings on the way
the agency should be run."
The official said Mr. Webster'
plans to operate at the CIA in much
the same way he approached the FBI
in 1978, when the bureau was faced
with public and congressional pres-
sure over alleged improper domes-
tic intelligence activities.
"He plans to take a studied look,
to be briefed and briefed and briefed
again," said the official. "And then
he'll make some deliberate moves.
But he's not going in with any fixed
agenda."
The official said Mr. Webster, who
is referred to at the FBI as "the
Judge," does not plan to restrict CIA
activities, but expects to "keep peo-
ple accountable" to the often com-
plex executive guidelines and con-
gressional regulations imposed on
the agency.
As FBI director, Mr. Webster has
been praised by most intelligence
officials for his role in building up
STgte FBI's counterespionage cap-
" lities.
sen. Chic Hecht. Nevada Republi-
can and member of the Intelligence
Committee, said in an interview that
Mr. Webster's record as FBI chief
and his good relations with congres-
sional oversight panels are his best
asset and will serve him well as CIA
director.
"He has in place a tremendous op-
erations staff over there," Mr. Hecht
said. "That will be his true test: if he
allows the staff in place to continu
carrying on what [former CIA direc
]tor] Bill Casey built up."
Mr. Casey, who died of cancer thi
month after resigning May 6, di
rected a major buildup of the agen
cy's operations capabilities involv
ing "a top group of dedicated an
professional young people" posted a
CIA stations around the world, M
Hecht said.
Witnesses in the Iran-Contra in
vestigation in Congress have closel
linked Mr. Casey and a Centra
American CIA operative to the case
but so far broad agency involvemen
in the operation has not been uncov-
ered.
One administration official,
speaking on condition he not be iden-
tified, said morale in most parts of
the agency remains high depite the
continuing investigations.
The official said Mr. Webster is
expected to learn his new job
quickly since he has more exper-
ience in intelligence than past direc-
tors brought in from outside the
agency.
However, the Iran-Contra inquiry
has affected the morale of some field
agents in Central America who feel
that "there are more investigators
than case officers," he said.
Officials said Mr. Webster's pres-
ence at CIA will help to ensure that
legal restrictions on agency oper-
ations will be strictly enforced.
The Senate Intelligence Commit-
tee recently informed the CIA and
the National Security Council that
the committee plans to conduct spot
checks of financial records to en-
sure that operations conformed to
legal guidelines.
Another reform recently put in
lace by National Security Adviser
'rank Carlucci, according to offi-
cials, was to set up a covert action
review board, similar to a CIA re-
view board, that will periodically re-
view all such programs.
However, one official said that
contrary to some reports describing
a one-third cutback in covert action
programs, there has been no reduc-
tion as a result of the Iran-Contra
affair.
Some reports have suggested that
Mr. Webster's friendship with for-
- Omer CIA Director Stansfield
may signal major porky changes at
the agency.
Adm. ilirner, CIA director during
the Carter administration, brought
in a large number of Navy officials
to assist him and he dismissed or
transferred many of the agency's
most experienced operatives.
The official pointed out that while
Mr. Webster knows Adm. 'Rimer
from their days at Amherst College,
Mr. Webster also is close to former
CIA Director Richard Helms. an
agency stalwart well respected by
hard-liners.
One senior CIA operations offi-
cial, who retired in the late 1970s,
described Mt. Webster as
independent-minded official who
"goes by the book" and thus may
have a "tempering affect" on agency
covert operations.
"I don't think he'll abandon it as a
tool, but he may just wait until he's
more comfortable with it," the of-
ficial said.
He said Mr. Webster could have
the greatest impact on developing
CIA counterintelligence, which has
rebounded in recent years from a
decline that began in the late 1970s.
David Atlee Phillips. former CIA
Latin America operations chief, said
some agency operatives have taken
a "wait and see" approach to Mr.
Webster because of his lack of ex-
perience.
"There's a big difference between
handling a really clandestine type of
operation as opposed to a partially
clandestine type of operation that
the FBI is used to running," he said.
"People in the operations director-
ate are wondering if he'll be able to
do that."
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....011.1 19 April 1987
Cuts Urged
In Covert_
Operations
White House Review
Follows Iran Affair
LWBy David Hoffman
and Walter Pincus
ashingtoft Post Staff Writers
SANTA BARBARA, Calif., April
18--An internal White House re-
view of secret intelligence opera-
tions has concluded that nearly a
third ot the covert missions author-
ized by President Reagan should be
terminated, informed administra-
tion sources said today.
The review, ordered following
the Iran-contra affair, focused on
secret intelligence "findings" such
as the one that Reagan signed to
allow sale of arms to Iran. The
Tower commission criticized the
White House for failing to monitor
the covert operation properly and
failing to notify Congress, and Rea-
gan later ordered a review of all
other active findings.
Sources said a decision to cancel
nearly a third of them could indicate
a significant scaling back from the
emphasis on covert operations as a
foreign policy tool under former
Central Intelligence Agency direc-
tor .The sources
said EFTeWew targeted covert op-
erations, as distinct from secret
intelligence-gathering efforts.
The sources said national secu-
rity adviser Frank C Carlucciis
more reluctatifto use covert oper-
ations because of the potential for
political backlash, and his views are
shared by acting CIA directoRsdk_
eifiate.s., who has been more
e.sely associated with the intelli-
gence collection and analysis func-
tions of the agency.
Reagan is expected to receive
results of the review shortly, the
sources said. The review was con-
ducted by a special group under
del)* national security adviser
Colin L. Powell and included rep-
resemtatives from other agencies as
well as the White House.
Approved For Release
Although the precise nature of
the operations targeted for termi-
nation could not be learned, one
informed source said many are
counterterrorism operations in the
Middle East and Southwest Asia.
Some were apparently an out-
growth of efforts to free Americans
held hostage in Lebanon, the
sources said.
The review has found that some
operations were outdated and that
others had run astray, the sources
added. In addition, the review
showed that some "findings" were
unnecessarily kept active as an um-
brella for future operations al-
though no current missions were
under way, the sources said.
Some of the covert action find-
ings are to be studied longer, offi-
cials said. The White House has
also decided to keep Powell's re-
view group for periodic checking of
all covert operations.
The president's covert action
findings will "come back up on the
scope again on a regular basis," one
official said.
Such a regular review was urged
by members of the Senate Select
ommittee on Intelligence during
nfirmation hearings for FBI Di-
tor William H. Webster to head
e CIA,-ga-Webster agreed to do
so. Webster drew a parallel with a
Federal Bureau of Investigation
program to review the use of in-
formers.
In the Iran affair, the Tower
commission found that White House
officials drew up a covert action
finding only after they had started
the arms sales to Iran. The report
said the finding was not shown to
key policy-makers and that it was
wrongly kept from Congress as
well.
The Tower commission said it
"found no evidence that an evalu-
ation was ever done during the life
of the operation to determine
whether it continued to comply with
the terms" of the Jan. 17, 1986,
finding Reagan had signed approv-
ing it.
Reagan, vacationing at his ranch
near here, said in his weekly radio
address today that Secretary of
State George P. Shultz had "made
constructive progress" on arms
control and other issues during his
20460D4144:0 IDIMMDP61-00901R000100120001-6
Shultz "made clear," Reagan said,
"that Americans take human rights
seriously, as is evident during this
week of religious import. We cannot
and will not close our eyes to the
suppression of religious freedom,
be the victim a Christian, a Jew or
other religious faith."
Reagan also reviewed the status
of the arms-control talks and said
the superpowers "have an oppor-
tunity to take tangible, step-by-step
progress toward a more peaceful
world. This is in both our interests."
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WASHINGTON POST
16 rarch 1987
SIAI
00100120001-6
milliminwl=T JACK ANDERSON and DALE VAN ATTA
Conservatives Had CIA 'Hit List'
Within days after Ronald Reagan's election as
president in 1980, a transition team for the
incoming administration compiled a secret
hit list of 26 "leftists" to be purged from the Central
ntelligence Agency. The conservative blacklist
ncluded Frank C. Carlucsj?..now the president's
iational security adviser.
The hush-hush plan to politicize the nation's top
itelligence agency failed, primarily because
illiam . Case who had served as Reagan's
ampaign chairman decided not to follow through
on it when he became CIA director.
The politically suspect names were contained in a
transition team report on the CIA dated Nov. 22,
1980?just 17 days after Reagan's landslide victory
over Jimmy Carter. The report was classified (then
and now) top secret and submitted to Casey, who
approved its general conclusion.
But not long after he took over at the CIA, Casey
abandoned at least the recommendation to fire the
26 supposed leftists. Carlucci, who was No. 2 man
in the agency, did leave?to become No. 2 man in
the Pentagon at the insistence of Defense
Secretary Caspar W. Weinberger. Carlucci's place
at the CIA was taken by joh.alaaw.4.14:12o had
been in charge of clandestine operations?and who
was also on the secret hit list.
Another person on the list, F.L.Lareal, also
was promoted. In 1980, Hineman was deputy
director for the National Foreign Intelligence
Center. He was promoted to deputy director of the
Science and Technology Division.
What had the 26 CIA people done to incur the
wrath of the Reaganites?
"[Thesei individuals are, in the main, Carter
administration proteges who advanced in grade and
position during the past four years because of their
willingness to support leftist-oriented perceptions
and programs," the report charged. It added that
there "should be immediately some key and visible
staff changes at the top, both for the internal
morale of the agency and in order to reverse the
effect of Carter administration policies. Decent
intelligence from the agency is not likely for at
least six months in the new administration, almost
regardless of what actions are taken, but a start
must be made."
We have been able to determine the current
status of most of the people on the blacklist. Four,
are still with the agency, but according to CIA and
other intelligence sources, only two of the 19
known to have left were forced out of their jobs.
The 17 others we were able to track either
resigned after lengthy service with the agency or
went on to better jobs elsewhere. For example,
Robert Dean, then an assistant national intelligence
officer specializing on the Soviet Union, left to
accept a top post in the State Department.
The flip side of the "leftist" purge didn't play any
better. The secret report offered the names of 15
politically reliable people who should be given top
posts in the CIA. Casey didn't hire a single
one?but several did join the staff of the National
Security Council.
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ON PAGE....?? Y.....s
New NSC Chief's Ties to Men Cited in Iran Crisis,
Illegal Amis Deal May Cloud Housecleaning Task
By JONATHAN KWITNY
Staff Reporter of THE WALL STREET JOURNAL
WASHINGTON ? Frank Charles Car-
lucci HI, who became President Reagan's
fifth national security adviser last Friday,
has already ordered wholesale staff
changes, and friends who have long en-
joyed his loyalty predict he'll cleanse the
National Security Council in the wake of
the Iran-Contra arms scandal. No one has
challenged his integrity.
If there's a shadow on Mr. Carlucci's
housecleaning prospects, however, it is
other old loyalties?loyalties he has shown
to members of a circle that seems deeply
involved in the same shadowy world of
overseas arms sales and secret dealings
that has been exposed in the Iran-Contra
scandal. They are former associates of Ed-
win Wilson, the former U.S. intelligence
operative who amassed tens of millions of
dollars by illegally selling U.S. arms, ex-
plosives and expertise to Libyan leader
Moammar Gadhafi and others. Mr. Wilson
is now serving a 52-year federal sentence
for weapons exports and for conspiracy to
murder at least 10 people, including two
federal prosecutors.
? Mr. Carlucci says he has never met Mr.
Wilson and doesn't believe in guilt by asso-
ciation. But he acknowledges investing
great faith in two men who have associ-
ated with Mr. Wilson, and who have been
linked to?though never formally charged
with?a plot to steal taxpayers' money on
arms shipments to Egypt.
Three years ago, the Justice Depart-
ment declined to prosecute the two men,
Maj. Gen. Richard Secord and Erich von
Marbod, who have steadfastly proclaimed
their innocence. By various accounts, both
were occasional visitors to Mr. Wilson's $4
million Virginia estate while he was still a
$32,000-a-year civil servant, and continued
friendly relations with him after he was
ousted from his Naval Intelligence job in
1976. Gen. Secord regularly used Mr. Wil-
son's private plane, and had an investment
transaction with him.
In a recent interview, Mr. Carlucci con-
firmed that, as deputy defense secretary in
1982, he overrode the
Pentagon's general
counsel and person-
ally rescued Gen.
Secord's career
when the general
was suspended be-
cause of a grand
jury investigation
Into his dealings
with Mr. Wilson.
Gen. Secord wasn't
indicted, but he later
resigned his senior
Pentagon post after
newspapers reported his Wilson ties.
Some current and former law-enforce-
ment officials who were active in the
Egyptian arms investigation are still furi-
ous over Mr. Carlucci's reinstatement of
Gen. Secord in 1982. Now, Gen. Secord has
become a focal point of the current scan-
dal surrounding Mr. Reagan's National Se-
curity Council, the house Mr. Carlucci is
assigned to clean. Gen. Secord reportedly
has been involved both in supplying equip-
ment to the Nicaragua rebels and in aiding
NSC officials in the covert shipment of
arms to Iran. Twice last month, he invoked
his Fifth Amendment right against self-in-
crimination in refusing to testify before
congressional committees probing the
arms sales and Contra money.
Carlucci's Right-Hand Man
But it is to Mr. von Marbod that Mr.
Carlucci has the closest ties. Mr. von Mar-
bod was the Pentagon's chief arms-sales
official, until he resigned, asserting health
reasons, while under investigation in the
Egyptian arms scandal. Although it was
determined that the transactions Mr. von
Marbod had approved had led to massive
abuses, it was decided there was too little
information to charge him with criminal
misconduct.
Mr. Carlucci, who is 56 years old, came
to the national security adviser's post with
broad experience in several administra-
tions, Republican and Democratic. He first
entered government as a foreign-service
officer in 1955, held high posts in the Office
of Economic Opportunity, the Office of
Management and Budget, and the Depart-
ment of Health, Education and Welfare
during the Nixon administration, and was
deputy director of the Central Intelligence
Agency under President Carter before be-
coming deputy defense secretary during
President Reagan's first term. He is ex-
pected to be the most powerful national se-
curity adviser of the five to serve Presi-
dent Reagan, largely because of his broad
government experience and because his
services are so needed right now.
When Mr. Carlucci left the Defense De-
partment in 1982 to become president of
Sears World Trade, the Sears, Roebuck &
Co. unit that is now closing its doors, he
brought Mr. von Marbod along as a $200,-
000-a-year consultant.
Roderick M. Hills, former chairman of
the Securities and Exchange Commission
and the original chairman of Sears World
Trade, who left it in 1984, says, "Erich
von Marbod was at least chief of staff for
Frank. Erich read all his mail, answered
all questions, went to all meetings." Susan
Clough, Mr. Carlucci's executive assistant
at Sears World Trade and a former per-
sonal secretary to President Carter, says
Mr. von Marbod was one of the three peo-
ple most influential with Mr. Carlucci, the
others being his wife and former Defense
Secretary Donald Rumsfeld.
"Yes, I listened to him," Mr. Carlucci
responds, laughing. Mr. von Marbod, now
a representative of LTV Corp. in Europe,
hasn't returned telephone calls.
The relationship of Mr. Wilson, Gen. Se-
cord, Mr. von Marbod and former CIA offi-
cer Thomas Clines was reported by The
Wall Street Journal and The Washington
Post in October 1982. The Journal story
concerned a 1979 Egyptian arms deal that
later resulted in $10,000 in criminal fines
paid by a holding company headed by Mr.
Clines, and the repayment of $3 million of
an alleged $8 million in illegal profits made
by Egyptian American Transport & Serv-
ices Corp., or Eatsco. The profits came
from an arms-shipping contract approved
by Mr. von Marbod while at the Pentagon;
Gen. Secord also oversaw some aspects of
the Egyptian arms sales.
Eatsco was co-founded by Mr. Clines,
who also has played a role in the secret
National Security Council dealings with
Iran. Mr. Clines used funds borrowed from
Mr. Wilson to establish Eatsco.
Connections Charged in Book
"Manhunt," last year's best-selling
book about Mr. Wilson by Peter Maas, con-
tained charges that all four men owned
stock in a trading company that invested,
through Mr. Clines's holding company, in a
major chunk of Eatsco. All but Mr. Wilson
have denied this, and Gen. Secord's law-
yer, Thomas Green, complained it was an
"outrageous accusation" without "a shred
of reliable evidence." The book's pub-
lisher, Random House, has refused his de-
mand for a retraction.
According to 1979 correspondence be-
tween Mr. Wilson, his lawyer and Mr.
Clines's lawyer, which Mr. Maas made
available to the Journal, Mr. Wilson ex-
pected an ownership share in the trading
company. A Jan. 18, 1979, memo from Mr.
Wilson's lawyer says stock will be owned
by four "individual U.S. citizens," but
doesn't name them. Mr. Wilson's bOok-
keeper and companion, Roberta Barnes,
told the Justice Department that Mr. Wil-
son had identified Messrs. von Marbod and
Clines and Gen. Secord as in on the deal;
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she and Messrs. Wilson and von Marbod
and Gen. Secord met over dinner in Lon-
don late that January. During the subse-
quent investigation, Mr. Clines denied he
had any partners besides the Egyptian
with whom he started the company, and
the Justice Department decided it couldn't
prove otherwise.
Mr. Carlucci says he first met Mr. von
Marbod when he was proposed for the Pen-
tagon arms job. Mr. Carlucci was so im-
pressed, he says, that he battled the Joint
Chiefs of Staff to make the appointment;
they had wanted a military officer in the
job.
A year after Mr. von Marbod resigned,
he followed Mr. Carlucci to Sears. Mr. Car-
lucci says, "I had assured myself the in-
vestigation had pretty well run its course. I
even saw the results of a polygraph. I have
complete confidence in his (Mr. von Mar-
bod's) integrity."
Hills Startled by News
But Mr. Hills, the former Sears World
Trade chairman, recalls that Mr. von Mar-
bod came to him in May 1983 with startling
news: He was being investigated by a
grand jury, might be indicted over an
arms deal, and would resign if Mr. Hills
wanted.
Also, Mr. Hills says, it was only then
that he learned that Mr. von Marbod was
working almost full-time for $200,000 a
year. "Frank never bothered to tell me or
our budgetary people he was doing some-
thing of this magnitude," Mr. Hills says.
Mr. Hills says of the investigation: "It
bothered me. I told Frank, 'It would have
been helpful to me if you had mentioned it
before we started.' " Mr. Carlucci says,
"I'm reasonably confident I mentioned it
to Rod Hills" at the start, but adds "it
could have happened" as Mr. Hills says.
Mr. Carlucci says he "can't recall"
whether he had previously told Mr. Hills
the size of Mr. von Marbod's fees.
One idea at Sears World Trade, Messrs.
Hills and Carlucci and others say, was to
lure foreign consulting clients by offering
them Mr. Carlucci 's expertise in Pentagon
procurement. Once the sought-after clients
swallowed the bait of military sales, the
company would try to sign them up for
consulting on all their businesses. Every-
one stresses that Sears's headquarters in-
sisted it would be involved only in consult-
ing, not in actual arms trading.
Though Mr. Carlucci says the military
procurement consulting arm he started
was a success, Sears senior management
ordered drastic cutbacks in 1984. "Our
strategy proved to be too diverse and too
ambitious," Mr. Carlucci says. "We de-
cided to focus on consumer goods." After
Mr. Hills left the company, Mr. Carlucci
ultimately assumed his titles, though under
tight control from Sears headquarters in
Chicago.
By the end of 1984, Mr. von Marbod was
gone. Last October, with reported losses
topping $60 million and more expected,
Sears announced it would sell some units
of Sears World Trade, eliminate much
else, and fold what was left into its retail-
ing division.
Mr. Carlucci then brought a wealthy
former Iranian finance minister, Hushang
Ansary, to Sears management with a pro-
posal to buy some units and possibly retain
Mr. Carlucci as manager. Sears decided to
sell the units elsewhere. Says Mr. Car-
lucci: "In my view the Sears World Trade
undertaking was a rather extraordinary
venture that brought together a lot of very
talented people, that someday will be im-
plemented."
Asked if Mr. von Marbod might join the
National Security Council staff, he says,
"No, he's very well situated as is. There's
no particular fit here for his talents. I
haven't even discussed it with him." He
adds, however, that he had called Mr. von
Marbod about the time his appointment
was announced.
Link to Secord in Letters
More details of Mr. Carlucci's relation-
ship with Gen. Secord emerged in corre-
spondence last year between Mr. Green,
the general's Washington lawyer, and Mr.
Maas's publisher, Random House.
The letters, which Mr. Maas showed to
the Journal, disclose a secret struggle
within the Defense Department in the
months after February 1982, when Gen. Se-
cord was suspended because of the investi-
gation. Mr. Green wrote that he had lob-
bied William H. Taft IV, then the depart-
ment's general counsel, for Gen. Secord's
reinstatement, but that Mr. Taft "refused
to budge."
According to Mr. Green, "After battling
with Taft for a couple of months, we ulti-
mately took our case to Mr. Carlucci in
early May of 1982. Carlucci proposed a pol-
ygraph examination and he further pro-
posed that if Secord passed the examina-
tion my client would be immediately rein-
stated. Gen. Secord instantly embraced the
proposal."
iht, the correspondence shows, Theo-
dore Greenberg, the prosecutor who was
handling the Eatsco case, objected to "the
compulsion inherent in the Defense De-
partment's decision," and barred the
test.
Gen. Secord's lawyer, Mr. Green, said
he then "went back to Carlucci," who de-
manded better evidence from the Justice
Department. Mr. Green says none came,
and Gen. Secord was reinstated May 21,
1982.
Mr. Carlucci agrees with this account,
except to say that the negotiations were
handled through an aide, Francis West,
and that he doesn't recall meeting Mr.
Green himself. He says he remembers be-
ing briefed several times about the Eatsco
investigation, including once before a
meeting with the Egyptian ambassador.
He says he favored a quick reinstate-
ment of Gen. Secord because "it was a key
point in our relations with the Middle
East." Among other things, he cites Gen.
Secord's familiarity with arms matters in
the area, including the then-pending and
highly controversial sale of Awacs planes
to Saudi Arabia.
In 1983, Gen. Secord was called to tes-
tify for Mr. Wilson's defense, which was
trying to show that Mr. Wilson was work-
ing with senior U.S. officials at the time of
his weapons sales. But most of the testi-
mony sought from Gen. Secord was ruled
irrelevant.
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ARTICLE
ettig09=Release 20g?Oc e
P91-00901R000100120001-6
MEESE, CITING POSSIBLE CRIME,
ASKS A SPECIAL PROSECUTOR
CARLUCCI IS NAMED FOR N.S.C.
?
By BERNARD WEINRAUB
special io The New York Times
WASHINGTON, Dec. 2? Saying that
illegal acts may have been committed'
In the diversion of millions of dollars to ?
Nicaraguan rebels from United States
arms sales to Iran, the Reagan Admin-
istration announced today that it was
requesting an independent prosecutor
to look into the case.
President Reagan, in announcing the
special counsel plan in a four-minute
televisikl?speech, also said that he was
appointing a former deputy director of
the Central Intelligence Agency, Frank
C. Carlucci, as his new national' se-
elirity adviser.
Mr. Carlucci, whose appointment re-
cetved bipartisan support in Congress,
will succeed Vice Adm. John M. Poin-
dexter, who resigned last week in the
furor over the clandestine diversion of
aid.
To Look Into Criminality
Moments after Mr. Reagan spoke,
Attorney General Edwin Meese 3d
said, "We think that we have a statu-
tory basis to believe that a Federal law
may have been violated."
"There may have been people wh
are in a position in government wh
may have violated it," Mr. Meese said.
He added that the independent coun-
sel would seek to determine "if there is
any criminality whatsoever involved"
in the case involving the Iran arms sale
and the diversion of proceeds to Nica-
raguan rebels, known as contras.
Mr. Reagan, who is facing bipartisan
Congressional pressure, said in his
midday speech that the Justice Depart-,
ment had "turned up reasonable
grounds" to seek the appointment of an
independent counsel to examine the
Iran-Nicaragua affair.
Court to Appoint Counsel
The President said that he had "im-
mediately urged" Mr. Meese "to apply
In court here in Washington for the ap-
i'pointment of an independent counsel."
"If illegal acts were undertaken,
those whet did so will be brought to jus-
tice," Mr. Reagan said, speaking som-
berly from the Oval Office.
Mr. Meese said in a news conference.
at the Justice Department that "we are
proceedingtomake that application."
He said the application "will be
broad enough to give an independent
counsel the opportunity to look into all
aspects of possible violations of Fed-
eral statutes and anything dealing with
either the Iran transfer of arms or the
transfer of funds to the contras."
The request for an independent coun-
sel is likely to to be acted on promptly
by a special panel of three Federal ap-,
pellate judges whose headquarters are
in the District of Columbia. The three
are Circuit Court Judges Walter R.
Mansfield, Lewis R. Morgan and
George E. MacKinnon. In the past,
judges selecting an independent coun-
sel have generally chosen a lawyer or a
prosecutor.
? Mr. Reagan made his unexpected
speech amid concern within the Ad-
ministration about the potential impact
of the developments on the last two ,
years of his Presidency.
Calls for Resignations
The speech itself, which concluded
with the naming of Mr. Carlucci, was
an attempt to quell the uproar over the
diversion of funds to Nicaraguan
rebels. The affair has led to calls from
Democrats and from some Republi-
cans for the resignations of Donald T
egan, the White House chief of staff,
ndjllIa1J.JasL Director of Cen-
ral Intelligence.
Confusion Over C.I.A. Role
Meanwhile, confusion continued to
surround the question of who in the
Government had approved the Central
Intelligence Agency's involvement in a
November 1985 arms shipment to Iran
by Israel.
Senator Daniel P. Moynihan, Demo-
crat of New York, said Sunday that the
shipment had been approved by John
N. McMahon, a deputy director of the
Central Intelligence at the time.
Mr. Casey first told the Senate Select
committee ,ottintenigell.CIA4t, }.10:_figtd
been traveling when the _atithitkization
Was glVen. But he _later_ gaid:that he
"misspoke" and . that ,hectfier he nor
NrrIMMillion had 'approved the agen-
cy's involvement.
Congressional investigators view the
matter as significant because the
weapon ' delivery by Israel occurred
two months before President Reagan
formally authorized a C.I.A. role in the
Iran arms dealings.
Mr. McMahon, who resigned from
the agency this year, appeared before
the Senate panel in closed session on
Monday. Other witnesses from the
C.I.A. are expected to be called to clar-
ify the November flight by an air
freight company with direct ties to the
Reagap Favors Single Inquiry
Mr. Reagan 'called on the House of
Representatives and the Senate to con-
solidate their inquiries and form
"some mechanism," presumably a sin-
gle committee, to examine the affair.
The President made no mention of
the suggestion by the Senate Republi-
can leader, Bob Dole of Kansas, for a
special session of Congress to establish
an investigating panel.
Publicly, White House officials
brushed aside a New York Times/CBS
News poll showing that Mr. Reagan's
overall approval rating had dropped to
46 percent from 67 percent a month
ago. This is the sharpest one month
drop ever recorded by a public opinion
poll in measuring approval of a Presi-
dential job performance.
Dan Howard, a White House spokes-
man, observed: "Polls go up, polls go
down, polls go back up again." Private-
ly, however, White House officials said
that Mr. Reagan's mood was grim, and
that despite the President's public ef-
forts to deal with domestic issues, such
as the fiscal 1988 budget, the scandal '
was consuming most of Mr. Reagan's 1
and his senior staff's time.
Decline in Popularity
One ranking White House official
said tonight, referring to Mr. Reagan's
apparent decline in popularity, "It's
not good, but we expected it. There's no
doubt that the majority of the public
thinks Reagan made a mistake in deal-
ing with Iran, and it wasn't helped any
by the revelations about the Contras.
The official said, "1 suspect we're in
a trough, or close to a trough." The offi-
cial added, "But there's going to be a
full agenda and I just don't think peo-
ple's affection for the President is dis-
sipated on a permanent scale."
Mr. Reagan's speech was the fourth
time in three weeks that he has ap-
peared publicly to seek to quell the
storm over the diversion of funds,
whicn the President and Mr. Meese re-
vealed last Tuesday. Lieut. Col. Oliver
L. North, a National Security Council
aide, was dismissed by the President
1 for his apparent role in funnelling
funds to the "contra" rebels, and Ad-
miral Poindexter resigned. MORE
In naming Mr. Carlucci, a 56-year-
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obilamigv&iihkofigg9ine2M0NA :IGVkt-oRpX0911 j0pOrMA001? 00120001-6
In the Carter Administration as well as .chief operating officer of Sears World
No. 2 at the Defense Department dur- Trade Inc? the export-import subsidi-,
ing the first two years of the Reagan ary that Sears, Rosebuck, and Co. re-
Presidency, Mr. Reagan plainly sought cently said would be scaled back into
a strong-willed figure with powerful bi- the company's merchandising group.
. partisan support. Some conservatives, Mr. Reagan, who met with Repubii-
i however, including Patrick J. Buchan- can congressional leaders just before
I an, the White House director of corn- making his speech at noon, told the na-
munications, opposed Mr. Carlucci's tion:
' selection, a White House official said. "I've done everything in my power to
Arrin_Hatch, a conservative Re- make all the facts concerning this mat-
publican of Utah, who voted against ter known to the American people. I
"Mr. Carlucci's confirmation in the De- can appreciate why some of these
'tense . job in 1981, said, however, that things are difficult to comprehend. And
because of Mr. Carclucci's knowledge you're entitlect to have your questions
of Federal agencies, "I think he is an answered."
excellent choice for national security ? Mr. Reagan pledged "to get to the
adviser." bottom of this matter." The President
added that, as he stated yesterday, he
Sex Daniel.", Moynihan, Democrat would "welcome the appointment of an
orNew York, a vocal critic of the Ad- independent counsel to look into allega-
ministration in recent days, said, tions of illegality in the sale of arms to
"Frank Carlucci is a friend of 20 years. Iran and the use of funds from these
His Is a superb choice." sales to assist the forces opposing the
Mr. Carlucci ? once a protege of De- Sandanista Government in Nicara-
fense Secretary Caspar W. Weinberger gua."
in the Nixon Administration ? is the "This morning, Attorney General
fifth man to hold the National Security Meese advised me of his decision that
job during Mr. Reagan's six years in his investigation had turned up reason-
office. As N.S.C. director, he does not able grounds to believe that further in-
need Senate confirmation. vestigation by an independent counsel
Mr. Carlucci left Government seri- would be appropriate.
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'PP
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WASHINGTON POST
7, ft
? i 3 December 1986
New Security Adviser
Has Wide Experience
Carlucci Held Diplomatic, Intelligence Jobs
By Don Qberdorfer
Washington Post Staff Writer
President Reagan's new national
security adviser, prank_ C. Carlucci,
brings to the job unusually close re-
lations with Cabinet members in the
forergn affairs field and extensive
_
experience in senior diplomatic,
military and intelligence posts for
Democratic and Republican admin-
istrations alike.
Carlucci is a longtime close as-
sociate of Defense Secretary Cas-
par W. Weinberger, having served
as deputy director of the Office of
MaMement and Budget and un-
dergecretary of health, education
and welfare (HEW) under Weinber-
ger-in:the Nixon administration and,
at Vainberger's insistence, as his
deputy -.secretary for the first two
years of the Reagan administration.
A former U.S. ambassador to
Portugal who began his long and
varied government service as a ca-
reer Foreign Service officer 30
years ago, Carlucci also has been on
good terms with Secretary of State
George P. Shultz, who recruited
him-to lead a study on U.S. foreign
aid-in 1983 after Carlucci left the
Pentagon.
Shultz has put out feelers to re-
cruit Carlucci for senior full-time
diplomatic jobs in recent months to
no avail, according to State Depart-
ment insiders.
Carlucci, a deputy director of
certtral -Intelligence in the Carter
admjnistration, is intimately famil-
iar1M4/ intelli ence o rations and
is reported to highly acceptable
tolllilliam J. Casey. director of the
Wirral Intelligence Agg_ylc
At 'age 56, Carlucci has had more
experience across a broader spec-
trum of top government jobs than
almost anyone on the Washington
scene. In addition to being a career
diplomat and ambassaor and holding
the No. 2 jobs at the OMB, HEW,
CIA- and Defense Department, he
was director of operations and
eventually chief of the Office of
Economic Opportunity, the domes-
tic peverty program, under Pres-
ident Richard M. Nixon.
Carlucci has been less successful
in business as president and chief
operating officer for the last three
years of Sears World Trade Inc., an
international business subsidiary of
Sears Roebuck & Co. The subsid-
iary is being folded into other Sears
operations next month after losing
$60 million, but "it was not because
of him [Carlucci]," said a Sears of-
ficial who declined to be quoted by
name. "The deck was stacked
against him to begin with. And the
timing [of the trading venture] was
atrocious?the world trade climate
was anything but propitious."
A senior State Department offi-
cial said Carlucci's toughness, ex-
tensive experience and good rela-
tions with top officials throughout
government have given rise to op-
timism that he will bring about a
sweeping reorganization of the Na-
tional Security Council.
Even before recent disclosures
concerning Iran and the Nicaraguan
counterrevolutionaries, or contras,
many officials at the State Depart-
ment and other agencies had said
they considered Reagan's NSC staff
a notably weak link in policy-making
and coordination.
A White House official said Car-
lucci will report to work around the
first of the year. He reportedly will
spend the intervening weeks set-
tling his private financial affairs and
studying NSC activities and person-
nel.
"This is a superb appointment,
_the best Reagan has made in six
years," said retired admiral awls-
as ceputy CIA director in the Car-
ter administration.
Turner said that Carlucci is "a
man of integrity, which is essential
in this trying situation," and that, as
his deputy at the CIA. Carlucci_ was
skilled at management and at ham-
mering out solutions among officials
with differing views.
"He sponsored a number of co-
vert operations" at the CIA, Turner
said. "I put him in cham of one of
the most daring ones, and he took it
over and traveled abroad." Turner
would not elaborate on the opera-
tion.
While testifying before the Sen-
ate Armed Services Committee in
January 1981 on his nomination to
be deputy secretary of defense,
Carlucci said that "my own philos-
ophy is that we all have to compro-
mise. That's what it's all about."
?
After all the pulling and hauling
within government, Carlucci con-
tinued, the key question becomes,
"Can I live with that decision? In
three instances I had prepared to
resign. The decisions did not go
against me, so I didn't resign." He
did not elaborate, and no senator
asked what the decisions were.
One question already being
raised in some quarters on Capitol
Hill concerns Carlucci's relationship
with retired Air Force major gen-
eral Richard V. Secord, believed to
have played a key role in guiding
the secret contra air resupply op-
eration. As deputy secretary of de-
fense, Carlucci had overall respon-
sibility for the work of Secord, who
was several layers down as deputy
assistant secretary for the Middle
East.
At one point Secord was inves-
tigated in connection with charges
AT
of massive financial abuses against a
transportation firm involved in
Egyptian-U.S. military aid pro-
grams, according to "Manhunt," a
recent book by Peter Maas,
Secord, Maas w-e-7was re
moved from his key position in the
sale of arms to the Middle East,
pending a polygraph. But he never
to_ok the jest. Instead, without any
prior notification to the Justice De-
partment, he was abruptly rein-
stated" by Carlucci.
Francis B. West, Secord's imme-
diate superior at the time as assist-
ant secretary of defense, said he,
rather than Carlucci, reinstated Se-
cord after discussions with the Pen-
tagon's general counsel, William H.
Taft IV (now deputy secretary of
defense), and with the office of the
U.S. attorney investigating the
case. No charges were brought
against Secord, who later won $1
million damages in a libel suit
against one of his accusers.
At the Pentagon, Carlucci was
known as an enthusiastic advocate
of polygraph tests. After the leak of
secret Pentagon budget data to The
Washington Post in early 1982, an
,angry Carlucci ordered a full-scale
investigation, including polygraphs
of service secretaries, the chairman
of the Joint Chiefs of Staff and other
top officials?and took a polygraph
himself to set an example.
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Cita
Approved For Release 2006/01/30
Hi view ofp graphJik_shai rp
contradiction to that of Shultz, who
opposes their widespread use and
Who_ Ifireagn
ifTeqtm?WsUbinit to such a test.
the Pentagon and the CIA,
Carlucci was notea for his strong
opposition to Ieks of classified se-
curity information. In 1979 he ad-
' vocated removal of the CIA from
key provisions of the Freedom of Information Act on
grounds that confidential sources feareTexposIre7Nrie-of
his first ads on becomin assistant s-e-Cietar-oneTF?ise
TgIrriras to warn entagon em lo es about leaks.
ort, wiry man w o was on the wrestling team at
Princeton University, Carlucci has been known for his
willingness to face imposing obstacles and danger. As a
junior Foreign Service officer in the Congo (now Zaire),
Carlucci waded into a mob threatening a group of peo-
ple and was stabbed while executing the rescue. He
won a State Department award for bravery.
In a renowned incident at the White House several
years later, Congolese Prime Minister Cyrille Adoula?
who had come to know and trust Carlucci as the local
embodiment of the United States?was visibly uncom-
fortable, peering from person to person in the State
Dining Room while visiting President John F. Kennedy.
: CIA-RDP91-00901R000100120001-6
Adoula asked Kennedy urgently "Ou est Carlucci?"
(Where is Carlucci?) The president, on learning who
was Carlucci, sent for the then-Congo desk officer of
the State Department?and other presidents have been
doing so ever since.
As a Foreign Service officer, Carlucci served in
South Africa, the Congo, Zanzibar and Brazil. While
political counselor in Rio, he was known for helping en-
gineer drastic cuts in the size of the embassy staff.
Carlucci has been acquainted with Reagan since the
two clashed in 1969 over a California legal assistance
agency; Carlucci was an official of the poverty agency
and Reagan was governor. Lengthy negotiations that
also involved Edwin Meese III, then an aide to Reagan
and now attorney general, resolved the dispute. That
Christmas, Carlucci later recalled, Reagan sent him a
bottle of brandy with a note of thanks.
Staff writers Joe Pichirallo and Caroline Mayer
contributed to this report.
FRANK CHARLES CARLUCCI
BORN: Oct. 18, 1930, Scranton, Pa.
FAMILY: Married Marcia Myers,
April 15, 1976. Children: Karen,
Frank, Kristin,
EDUCATION: A.B,, Princeton
University, 1952; postgraduate,
School of Business Administration,
Harvard University, 1956; Wilkes
College, Kings College, 1973.
PROFESSIONAL HISTORY; Jantzen
Co. in Portland, Ore., 1955-1956;
Foreign Service officer, State
Department, 1956; vice consul, economic officer in Johannesburg,
1957-1959; second secretary political officer in Kinshasa, Congo,
1960-1962; officer in charge of Congolese political affairs,
1962-1964; consul general in Zanzibar, 1964-1965; political affairs
counselor in Rio de Janeiro, 1965-1969; assistant director
for operations, Office of Economic Opportunity, 1969,
and director, 1970; associate director, Office of Management
and Budget, 1971, and deputy director, 1972; undersecretary
of Health, Education and Welfare, 1972-1974; ambassador
to Portugal, 1975-1978; deputy director, Central Intelligence Agency,
1978-1981; deputy secretary, Defense Department, 1981-1982;
Sears World Trade Inc., 1983-1986.
...w?im?????
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STAT
STAT
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WASHINGTON TIMES
8 December 1986
North belonged to secret group
that planned global covert action
STAT
TAT
"The decision to undertake covert
Bliczett? action is a policy decision .. . made
E WASHINGTON TIMES
Former National Scurf Council
ai,de Lt. Cal. Olivet' North par-
ticipated in in a secret Reagan ad-
ministration covert action planning
group dubbed the "208 Committee$
according to informed sources.
The committee, unofficially
named after the Old Executive Of-
fice Building conference room
where it met, could become a focal
point in investigations of the Iran
arms scandal and secret funding of
Nicaragua's anti-Marxist rebels,
Sources said.
;About a dozen specialists from
the US. intelligence and defense
c'etnmunity made up the inter-
aency group, including covert ac-
tion specialists from the CIA's Direc-
rate of Operations, the State and
lifense departments and Joint
'els of Staff.
Some NSC staff members par-
ticipated, including Col. North, who
planned and directed covert action
programs in Central America, Af-
rica, the Middle East and Asia until
he. was dismissed last month by
Prbsident Reagan, sources said.
The group met irregularly to dis-
cuss ways of implementing covert
action programs. Decisions were
rTched by informal consensus and
feil0 written records were kept. The
,
ort)up was authorized to commit mil-
' s of dollars in secret White
se and CIA funds to the prog-
s, sources said.
urrently, there is nothing to in-
te that the secret Nicaragua re-
funding scheme run by Col.
h was ever discussed by the
committee. Nevertheless, members
of the group are likely to be ques-
tioned at length by federal and con-
gressional investigators looking into
the Iran-Nicaragua scandal, the
sources said.
Moreover, the scandal is likely to
prompt broader congressional in- a
quiries about the Reagan adminis-
tration's use of covert aid in other
areas of the world. rn
Deputy CIA Directer 13.9.Lert
alai who testified before the te
Senate Intelligence Committee for ni
four hours Thursday, has described
co:AT-rjri as "an appropriate in- of
sfrument7fforeign policy, as long as to
it is undertaken in the context of a
larger policy."
by the National Security Council,
and CIA is the instrument by which
it is implemented. And I believe that
when that decision is made, that CIA
has the obligation to implement it as
effectively as it can" Mr. Gates said
in congressional testimony last Ap-
ril.
Covert action describes three
types of secret activities designed to
be untraceable to the U.S. govern-
ment: funding of foreign political
parties, foreign media manipulation
and, as in the case of U.S.-backed
anti-communist insurgencies, large
paramilitary operations that are dif-
ficult to keep secret.
Between 1950 and 1974, CIA
agents played active roles in the
Philippines, Iran, Congo, Chile, Ec-
uador, Greece, Vietnam, Laos and
Cambodia.
Press accounts in 1974 of CIA do-
mestic covert activities, in violation
of the agency's charter, led to a se-
ries of debilitating congressional in-
quiries that virtually shut down the
agency's covert operations, accord-
ing to former intelligence officials.
The CIA began to rebuild its
covert action capabilities in the late
1970s and the process was ac-
celerated in 1981 by the incoming
Reagan administration. Since then,
hundreds of millions of dollars have
been devoted to covert action pro-
grams throughout the world, in such
places as Nicaragua, Afghanistan
and southern Africa.
'Thaditionally, the CIA has been
olely responsible for carrying out
overt action programs. But
evelations of Col. North's activities
indictate that NSC staff also had
egun playing operational roles in
overt action programs.
Last week the president ordered
is NSC staff, which coordinates
overt action policies, to refrain
rom taking part in "the operational
spects of sensitive diplomatic,
litary or intelligence missions"
ending the outcome of a three-
ember Special Review Board.
Sources said NSC Director of In-
lligence Programs Vincent Can-
nistraro was known
Cifutiffrie's "controller"? the NSC
ficial who granted access to the
p-secret planning sessions.
Mr. Cannistraro directed the CIA
task force supporting Nicaragua's
so-called Contra rebels until 1984,
the sources said. He was removed
from that post following disclosures
that the CIA helped formulate an in-
surgency handbook for the rebels
calling for "neutralization" ? the
CIA euphemism for assassination,
an activity banned by U.S. law, sour-
ces said.
Mr. Reagan and then-National Se-
curity Adviser Robert McFarlane
said at the time that all officials in-
volved in developing the insurgency
manual would be dismissed. Mr.
Cannistraro, however, was trans-
ferred to the NSC, sources said. His
future is uncertain in light of reports
that incoming National Security Ad-
viser FrankCarlucci, who takes over
Jan. 1, has promised a thorough NSC
staff reorganization.
Mr. Cannistraro coordinatad the
208 Committee's drafts of "find-
ings," or orders, that were later sign-
ed by Mr. Reagan and represent the
first step in setting a covert action
program in motion.
Once signed, copies are sent to the
Senate and House intelligence com-
mittees and a team is dispatched to
answer congressional questions.
"If the committees don't ask the
right questions, they don't get the
right answers" about covert pro-
grams, said one source.
Information on covert programs
is tightly guarded among the few of-
ficials allowed access to the commit-
tee. Analysts at the State and
Defense departments and the intel-
ligence bureacracy are not notified
about covert programs.
"Big things could be going on in-
side a country that only a few
government officials know about,"
the source said.
The handful of U.S. officials
'granted access to all covert action
findings includes the president, the
secretary of state and two senior
State Department officials, the sec-
retary of defense and two senior
deputies, the CIA director and two
deputy directors, and three or four
representatives of the Joint Chiefs
of Staff.
"It's considered the high politics
of national security," one source said
of the covert action group.
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WALL STREET JOURNAL
ARTICLE LPPFAHR
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ON PASL.1.1.......?
Carlucci Wants to Revamp Management
By U.S. of Covert Operations, Sources Say
By JOHN WALCOTT
Sta ff Reporter of T111-; WALL STREKT JOURNAL
WASHINGTON ? President Reagan's
esignated national security adviser,
'rank Carlucci, is moving to tighten the
.dministration's management of covert op-
rations in the wake of the Iran-Contra af-
fair.
Mr. Carlucci is proposing the creation
of a new interagency mechanism to over-
see covert operations carried out by U.S.
intelligence agencies, according to admin-
istration sources. In addition, he is prepar-
ing a directive making it clear that the
National Security Council henceforth will
be an advisory and coordinating body, not
an operational agency, according to offi-
cials who are helping Mr. Carlucci reshape
the council's staff.
Mr. Carlucci, who will assume his new
job Jan. 2, also has decided to hire a gen-
eral counsel to help police the council staff
and to monitor congressional restrictions
on the president's foreign policy powers,
the sources said.
In a meeting yesterday, Mr. Carlucci
told newly hired council staff members
that the National Security Council's small
staff will no longer run secret operations
and will concentrate on improving the
quality of foreign policy advice to the pres-
ident, according to officials who were
there.
Administration officials have said the
administration's secret arms sales to Iran
and the effort to divert some profits from
the sales to Nicaraguan rebels were delib-
erately kept hidden from two interagency
committees that are supposed to manage
covert operations.
The two committees are the
cabinet-level National Security Planning
Group and the so-called Policy Develop-
ment Group, which is composed of senior
officials from the State and Defense de-
partments. the Central Intelligence Agency
.ind other agencies.
Ensuring Reviews
Sources close to the new national secu-
rity adviser say Mr. Carlucci, a former
deputy director of the CIA and deputy de-
fense secretary, has concluded that the ab-
sence at broad oversight allowed the ad-
ministration's sensible idea of seeking im-
proved relations with Iran to degenerate
into a trade of arms for U.S. hostages?and
perhaps into a questionable source of
nancing for the Nicaraguan rebels as
well.
As a result, these sources said, Mr. Car-
lucci has suggested taking steps to ensure
that high-ranking officials from the White
House, the CIA. the Pentagon, the State
Department and other agencies review
proposals for covert operations and moni-
tor them after they are launched.
Trimming Staff
Mr. Carlucci also intends to trim the
size of the National Security Council staff
and clarify the chain of command within
it. administration officials said. He will
have one deputy, Army Lt. Gen. Cohn
Powell, a former top aide to Defense Sec-
retary Caspar Weinberger. Lt. Gen. Powell
returned to Washing-ton yesterday from an
assignment in West Germany.
The new general counsel, the executive
secretary, a public affairs expert, a con-
gressional relations officer and a newly
created position of "counsellor" will report
to Mr. Carlucci and Lt. Gen. Powell, offi-
cials said.
Mr. Carlucci has recruited Grant
Green, a former aide from his Pentagon
stint, as executive secretary. He will name
Peter Rodman, a current council staff
member and former aide to Henry Kis-
singer, to serve as counsellor, administra-
tion sources said. He hasn't hired a gen-
eral counsel and is still searching for con-
gressional and public relations experts, the
sources said.
State of the World Message
Among other things. Mr. Rodman. the
new "counsellor," will be responsible for
preparing a "state of the world" message
President Reagan is to deliver next April,
and for bringing in outside experts and
paid consultants to brief Mr. Carlucci. the
president and other officials.
Under Mr. Carlucci, the council's con-
troversial office of political-military af-
fairs, where fired White House aide Oliver
North worked, will be abolished and re-
placed by a catch-all office of multilateral
affairs.
The new office will be responsible for
counter-terrorist policy, United Nations af-
fairs and other issues, sources said. No one
has been hired to head the office or to
manage the council's oversight of intelli-
gence programs and international eco-
nomic policies, the sources said.
Direct Line to Reagan
The staff assembled by Mr. Carlucci so
far suggests the new national security ad-
viser is emphasizing experience and pro-
fessionalism over ideology or political cre-
dentials in his hiring decisions.
Some officials said they believe Mr.
Carlucci's and Lt. Gen. Powell's ties to Mr.
Weinberger may mean the council staff
will align itself more closely to the Defense
Department's hard-line positions on arms
control and East-West relations. But offi-
cials close to Mr. Carlucci said the new na-
cional security adviser is determined to I
serve as an honest broker between the
Pentagon. the State Department. the CIA
and other agencies.
The officials said Mr. Carlucci also has
been careful to secure a direct line to Pres-
ident Reagan, bypassing White House chief
of staff Donald Regan.
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ase 20W9)01b04091-00901R000100120001-6
New N.S.C. Chief Is Said to Plan
A Near-Total Overhaul of Council
WASHINGTON, Dec. 15 ? The new
director of the National Security Coun-
cil, Frank C. Carlucci, plans a virtually
complete overhaul of the council, and
has already selected key aides on the
Soviet Union and Latin America, Ad-
ministration officials said today.
One Administration official said that
Mr. Carlucci, who was named less than
two weeks ago to replace Vice Adm.
John M. Poindexter, plans a "clean
deck of people" at the council, and that
he was "disturbed" about the way the
council had been operating.
Mr. Cariuccrs plans to revamp the
National Security Council come amid
revelations that council officials appar-
ently played a central role in what the
White House has described as the di-
version of millions of dollars to Nicara-
guan rebels from the profit of clandes-
tine Iran arms deals. Admiral Poindex-
ter resigned as assistant to the Presi-
dent for national security affairs as the
arrangements were revealed, and a
key aide, Lieut. Col. Oliver L. North,
was dismissed.
Council Role In Policy
Officials said Mr. Carlucci, in his pre-
liminary findings, had decided that the
National Security Council staff was far
too involved in shaping foreign policy
? as opposed to coordinating it ? and
that the caliber of the staff appointed
by the recent council heads, Robert C.
McFarlane and Admiral Poindexter,
"dissatisfied" him, according to one
associate.
The official said most council staff
members would probably return to the
agencies from which they originally
came, such as the State Department,
, Pentagon and Central Intelligence
Agency.
Officials said Mr. Carluslanned to
a.Dpoint Fritz W. Ermarth75 strategic
arn_.4aiiihst who worked in the Na-
tional
co_y_ Council during Car-
ter, as his chief
specialist. Mr. s previous
jobs inchded one in whiche worked
on the office of strategic evaluation at
the Central Intelligence Agency in the
1970's.
Mr. Carlucci also plans to name Jose
S. Sorzano, a former United States
deputy representative at the United
Nations, to serve as the council's chief
Latin American specialist.
, 'Entirely New Approach'
An official close to Mr. Carlucci said
the new director seeks "an entirely
new approach, much closer to what
they've had in the past." The official
said Mr. Carlucci viewed the council as
one whose mandate was foreign policy
coordination among various Govern-
ment departments and not advocacy of
certain policies.
By BERNARD WEINRAUB
Special to The New York Times
"He feels the staff needs to be
strengthened considerably and not
take sides and get caught up in the
quarrels between agencies," the offi-
cial said, but rather work "as coordina-
tors to produce the best possible poli-
cies."
The professional staff of the National
Security Council, which was set up in
1947, serves as the foreign policy arm
of the White House and was designed,
essentially, to review and coordinate
agency proposals to the President.
The council's role grew during the
Kennedy Administration, and flour-
ished when Henry A. Kissinger became
President Nixon's national security ad-
viser. Under President Reagan the
council has played a key role in not
only coordinating but also in helping
shape policy.
Officials Set to Leave
Senior council officials are expected
to leave shortly, officials said. These in-
clude Alton G. Keel Jr., the council's
deputy director, and Comdr. Rodney B.
McDaniel, the council's executive sec-
retary. One of Mr. Keel's deputies,
Peter W. Rodman, formerly director of
the State Department's Office of Policy
and Planning, may remain in his job,
officials said.
Mr. Carlucci is reportedly planning
to name as his deputy Lieut. Gen. Cohn
L. Powell, a former senior military
assistant to Defense Secretary Caspar
W. Weinberger who is one of the high-
est ranking black officers in the mili-
tary.
Mr. Ermarth will replace Jack F.
Matlock Jr., a career diplomat. who
has made efforts in the last year to be
named Ambassador to Moscow. The
current Ambassador, Arthur A. Hart-
man, has indicated that he wants to re-
main in Moscow.
Mr. Ermarth has spent a consider-
able portion of his career in the C.I.A.,
and worked at the Northrop Corpora-
tion heading a strategic planning group
in the early 1980's. -He returned to the
C.I.A. in the early 11:38Ors in a senior
analytical job where-he specialized in
the Soviet ginion and-E-astern Europe.
Views and Words
In substance, his views are not
known to be very different from Mr.
Mattock's, say sources who know Mr.
Ermarth, although his public words
are said to be far tougher.
Mr. Sorzano is expected to replace
Raymond F. Burghardt, who will prob-
ably return to the State Department.
Also today, Rhett Dawson, a Wash-
ington attorney and former staff direc-
tor of the Senate Armed Services Com-
mittee, was named director of the
panel examining the council. The panel
is headed by former Senator John G.
Tower, Republican of Texas, who had
served as chairman of the Senate
Armed Services Committee
Mr. Tower said a Washington law-
yer, W. Clark McFadden, would be gen-
eral counsel. Herbert }-(et u, former
spokesman for the C.I.A. was named
public affairs counselor for the review
board.
-Nrianwhile, White House aides said
that despite suggestions by some Re-
publican legislators, President Reagan
had no plans to go before Congress to
address the Iran issue.
Officials also said Colonel North had
prepared a chronology of the Iran
I arms deals at the request of Admiral
I Poindexter. They said the chronology,
'which is now in the hands of Peter J.
Wallison, the White House counsel, was
prepared after initial reports appeared
about the arms sales to Iran, but before
the Administration said profits from
the arms sales had been diverted to the
Nicaraguan rebels. There were no fur-
ther details about the chronology.
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ARTICLE D
ON nyEAPnroved For ReleasteS06/011330& Cf44REIP9151090/R000100120001-6
15 December 1986
TRYING TO TURN
BACK A RISING TIDE
IN In the peculiar arithmetic of politics
and crises, things still aren't addinv, up
for Ronald Reagan. Yes, he named a
distinguished replacement as national-
security adviser. And yes, he urged an
independent inquiry into the scandal
over secret Iran arms shipments and
the subsequent diversion of millions of
dollars to the Nicaraguan contras. But
like a stubborn schoolchild, Reagan is
admitting no error, and aides say he
fervently believes he made none. "A lot
of aspects in the Iran operatibn went
awry, and for that we express deep re-
gret.'' says a White House official. "But
Ronald Reagan is now, has been and
will be convinced he was right.'
Cascade of events
The President stilt insists that the
controversy is little more than a "Belt-
way bloodletting." But it obviously is
much more than that. Reagan's public
promise of full cooperation in his
fourth television appearance on the af-
fair seemed a bit shaky in a week when
John Poindexter, his recently resigned
national-security adviser. and Lt. Col.
Oliver North, the former National Se-
curity Council staffer, both invoked the
Fifth Amendment against self-incrimi-
nation during testimony before the Sen-
ate Intelligence Committee. Naming an
independent counsel to conduct a sepa-
rate investigation outside the Justice
Department was widely applauded, but
it also means that the investigation will
last for several months, paralleling a
separate reviewby a presidential com-
mission headed by former Texas Sena-
tor John Tower. In addition, the Senate
and House are setting up select com-
mittees to conduct their own investiga-
tions. and the proceedings could well
he televised?keeping the entire affair
front and center.
Meanwhile, many of Reagan's fel
low Republicans were breaking ranks
calling for the resignation of Whit ?
House Chief of Staff Donald Regar
and even of Secretary of State Georg
Shultz. Vice President George Bush
also seemed to put a few inches of dis-
tance between himself and the boss,
conceding that "mistakes were made."
But he basically played good soldier,
backing his Commander in Chief, and
sounded the theme that he and Reagan
are willing to "take our lumps" if need
be. Said Bush: "Let the chips fall manded a quid pro quo?direct access. funds for the contras and the Afghan
rebels were mixed as a result of a
where they may." to Reagan. He got it and immediaey jo?
tl eky a midlevel
Reagan's aides now counsel the press
that the President has "crossed o%.er the
big ridge'' of the crisis. But there are
growing signs of a bunker mentality at
the White House, according to one GOP
loyalist on Capitol Hill, and a sense that
preoccupation with the crisis has placed
almost everything else on hold.
It may be hard to clear the air and get
on with the business of government be-
cause revelations keep surfacing. Con-
gressional investigators intend to widen
their focus on the role of Central
Intelli-
gence Agency Director William Casey,
and other sources say that Assistant
Secretary of State Elliott Abrams and
Assistant Defense Secretary Richard
Arrn-Fage also may figure in the probe.
Whether anyone still in the White
House knew of the secret operation, of
course, is still the most intriguing ques-
tion in Washington. Robert McFarlane.
Reagan's former national-security ad-
iser. reportedly told senators that the
President gave advance approval to the
secret Iranian arms shipment. Another
name that seems to come up often is
that of Regan. who made a quiet pitch
for his job last week. buttonholing GOP
set a 10-person transition team to work.
"There will be substantial personnel
changes." said a top White House aide.
Capitol Hill anger
Carlucci's appointment. however, did
not stop the angry head-shaking on
Capitol Hill. In a reflection of the public
at large, most members of Congress
have little faith in Reagan's explana-
tions. When North and Poindexter in-
voked the Fifth Amendment?North
apparently over 40 times?frustrated
senators wondered if they would ever be
able to piece together the Iran-contra
caper if they don't strike a deal with
both men. offering immunity from pros-
ecution in exchange for full testimony.
So far, there have been howls of out-
rage but no hard talk of a deal. The
silence of North and Poindexter had
Republicans and Democrats worrying
about a wider scandal with, in the words
of a key GOP aide, "more revelations
trickling out day by day, which neither
w e nor the President know about." It's a
scenario to spook even staunch Reagan
supporters, and many were plainly ner-
vous. "We've got to be fairly careful."
said Senate Majority Leader Bob Dole
congressional leaders after they lett a R-Kans.). "There might be a bear trap
White House meeting with the Presi- out there somewhere.-
dent. "Remember,- Regan said, -there _Already, some are in evidence. Re-
has to be some continuity around here.' ports ofsecret Swiss bank accounts man-
For now, there is mostly speculation aged by the CIA (US. .Vews. December
in the absence of precise information. 8-)Tunded with clandestine deposits from
What is certain is that most Americans the U.S. and Saudi Arabia may have
are not buying the White House line that been the biggest shock of the week for
North ran the secret Iran-contra opera- Congress. The Washington Post rmort-
tion alone and only Poindexter, his boss, ed that profits from the Iran arms sales
knew of it. If public suspicions are con- were deposited in one CIA-managed
firmed and disclosures keep coming, it Is account into which the U.S. and Saudi
a certainty that the Presidency of Ron- Arabia had placed 5250 million apiece.
ald Reagan will be paralyzed for the rest That money was disbursed nbt onTy to
of its term and the political landscape the contras in Central America but to
going into the presidential elections in the rebels fighting Soviet troops- in At-
1988 will be dramatically changed. zhanistan. Administration officials
Reagan did take one major step to i;romised a full accounting of the trans-
blunt the gathering criticism. Last week, actions, but already they seem a fiat
he named Fran.,Lcarl as his new contradiction of explanations provided
national-security adviser. A savvy veter- by Atty. Gen. Edwin Meese. Only two
an of the Pentagon and the CIA. Car- vv7eeks ago, Meese said the arms profits
lucci served as ambassador to Portugal were "deposited in bank accounts which
and is close to many cabinet members, were under the control of representa-
especially Defense Secretary Caspar tives of the [contra] forces in Central
Weinberger. At the announcement of America." Not only have contra leaders
Carlucci's appointment, there were sage insisted they have no Swiss accounts.
nods of approval, and it seemed a big but tEi administration conceded that
point for the President. Carlucci de-
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Continued
Hard questions ahead
As thAPPrigIVRAPIKiggieA?frA006/01/30 : CIARDP91-00904R00011001120001-6
tees gear up. members of both parties are
clamoring to become part of the inquisi-
tion. The panels. which will .subpoena
cabinet-level officials, will ask about. the
CIA accounts as they begin digging into
other aspects of the Iran-contra affair.
No doubt they'll also take a closer look at
the administration's increasing use 'of
private agents like billionaire H. Ross
Perot. who secretly agreed to a request
by North to put up S2 million in an
unsuccessful attempt to gain release of
some U.S. hostages in Lebanon: Diplo-
matic and intelligence sources have told
US. Sews that the administration has
made unprecedented use of back-chan-
nel agents, companies and even third-
party countries in critical operations
overseas. particularly in the Mideast and
Central America (see page 26).
Another area sure to conic under re-
view by Congress is the inquiry con-
ducted by Meese before he decided last
week to seek appointment of an inde-
pendent counsel to pursue the investi-
gation outside the Justice Department
(see page 2.6). Senior officials inside the
department have said privately that
Meese botched the investigation by fail-
ing, because of potential conflict of in-
terest, to seek an independent counsel
earlier: it was he who gave the legal
opinion to proceed with the secret arms
shipments to Iran. More important.
Meese failed to secure the White House
offices of North and Poindexter after
unco?,ering the secret flow of money to
the contras. Justice Department sources
say. the oversight may have allowed the
men to shred key documents in an at-
tempt to cover their trail. although FBI
agents have found no conclusive evi-
dence to that effect. Nevertheless it's
things like that that have Republicans
and Democrats thinking uncomfortable
thoughts about Watergate.
Senator Ted Ste\ cii I R-Alaska
raised the old ::lhost. asking Reagan to
tell everythina and r no duplicate the
mistakes or the NIN011 era. "Don't do it
to us again.- he pleaded at a meeting
late last week. The Republican congres-
sional leaders also called for an in-house
counsel to handle the White House in-
quiry. And others had complained earli-
er that Reagan's usually good political
instincts were failing him. "We wanted
to underscore the sel.erity of what's go-
ing on." explained House Minority
Leader Bob Michel (R-Ill.) after Re-
publican leaders met with the Presi-
dent. Added a top GOP leadership aide,
referring to a New York Times-CBS
percentage point drop in Reagan's pub-
lic-approval rating: "A 20 percent free
fall in the polls is not something you
want to be a part of."
Regardless of how they turn out, the
probes by Congress and the special
counsel?coupled with the sudden
damage to his credibility?may prevent
Reagan from regaining lost momentum.
With the new Democratic Congress in
January, it's unlikely that even a limited
presidential agenda will have much
staying power unless Reagan's aides are
right and the worst of the scandal has
passed. In any event. the President
probably will encounter stiffer resis-
tance from a Congress anxious to play a
bigger role in foreign policy?and that
implies trouble for the White House on
such issues as additional funding for the
contras- and any U.S.-Soviet agreements.
At home, budget deficits may suffer
from inattention, unless the Democrats
step into the breach.
The potential for that kind of opening.
t'or the Democrats may be the biggest
news of all in the fallout from the current
scandal. Republicans generally have
been hurt by the recent disclosures, and
a spreading scandal could all but doom
their chances in the presidential election
of 1988. Even as they were counseling
Reagan. some Republicans were edging
away. With his speech before the Ameri-
can Enterprise Institute, in which he
twice used the word "mistake,- Bush
clearly was establishing distance be-
tween himself and Reagan. And Dole,
with his blunt remarks and call for a
special session of Congress to deal with
the crisis, also put some turf between
himself and the scandal. "There is no
comparison to Watergate at this point,"
House Minority Whip Trent Lott told
Reagan. according to others who sat in
on the meetings between the President
and GOP leaders. "What you do from
this point on will determine whether
there is to be a comparison or not."
"More in sorrow"
If Republicans were playing damage
control, Democrats, with few excep-
tions, were making sure not to gloat.
"Any step we take will be interpreted to
be politically inspired.- worried Repre-
sentative Leon Panetta (D-Calif. Sena-
tor John Glenn (D-Ohio) said most
Democrats viewed the scandal "more in
sorrow than anger.- And if that seemed
at least slightly disingenuous, it was
clear that neither Republicans nor
Democrats relished the prospect of drift
and deadlock for the next two years.
An evolving scandal would consume
time and energy and leave neither party
with the wherewithal to accomplish the
kinds of goals they could tout with pride
going into 1988. If that turns out to be
the case, it seems everyone will lose. ?
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Dennis Mullin and James M. Hildreth
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WASHINGTON TIMES
8 December 1986
Carlucci to shift
liaison to the Hill
By Jeremiah O'Leary
THE WASHINGTON TIMES
Newly named National Security Adviser Frank C.
Carlucci will make unprecedented efforts to work with
Congress when he takes over the president's National
Security Council on Jan. 1, it was learned yesterday.
He is expected to dismiss Ronald K. Sable, the NSC
officer in charge of congressional relations, along with
other top aides.
The emphasis on congressional relations, in part, is
said to reflect Mr. Carlucci's astonishment when he dis-
covered NSC liaison with Capitol Hill was almost non-
existent under his prececessor, Vice Adm. John Poin-
dexter.
The agency, involved in numerous clandestine
diplomatic and military missions including the Iranian
arms sales and diversion of funds to the Nicaraguan
resistance, was obsessed with secrecy and had a bunker
mentality, according to those close to Mr. Carlucci's tran-
sition team.
Also slated for dismissal or transfer to government
posts outside the agency are most top aides to Adm.
Poindexter, including acting NSC Director Alton Keel
and Peter Rodman, a former aide to Henry Kissinger
when Mr. Kissinger was secretary of state.
Mr. Carlucci is expected to name Col. Grant Green as
his deputy. Col. Green served in the Pentagon under Mr.
Carlucci during the early years of the Reagan admin-
istration.
Also expected to leave the NSC are most aides in the
agency's arms control section as well as directors of the
economics division and the political-military affairs di-
vision.
- Howard Teicher, listed as the im-
mediate superior of Marine Lt. Col.
Oliver North, who masterminded
the Nicaragua funding scheme, is
expected to be replaced.
White House spokesman Dan
Howard declined to comment on
prospective staff changes at the NSC
other than to say: "The president has
given him [Mr. Carlucci] a free
hand" in personnel matters.
There is no indication that Mr.
Teicher knew of the Nicaragua
funds transfer and other secret
projects undertaken by Col. North,
but Mr. Carlucci's thinking is, "If he
didn't know, he should have," said one
source.
Mr. Carlucci will rely heavily in
the transition and first stages of his
new post on the expertise of Russell
Rourke, former secretary of the Air
Force, former assistant secretary of
defense for congressional affairs
and an administrative assistant to
three members of Congress.
Mr. Rourke, who will not take a
full-time job in the new NSC, also
worked in the Ford White House as
a congressional liaison under John
0. March, who is now secretary of
the Army.
President Reagan recently
barred the NSC from participating
in sensitive diplomatic and military
operations, limiting the agency's 46-
member staff to advising the pres-
ident and his top aides.
The total NSC operation, includ-
ing military and civilian personnel
on temporary assignment to the
agency, includes nearly 200 people,
according to administration of-
ficials.
The agency's future role is being
studied by a presidentially ap-
pointed three-member Special
Review Board headed by former
Texas Republican Sen. John lbwer.
Mr. Carlucci, according to
sources, is working closely with the
Tower board so he can "hit the deck
running" on Jan. 1.
The NSC also has officers from
the State and Defense departments,
the CIA and academia working as
regional experts. Most of these of-
ficials are expected to be sent back
to their parent organizations.
As a result, Mr. Carlucci and his
transition team have been inundated
with phone calls from NSC staffers
or their important friends seeking to
save their jobs.
"The changes to come will be
transfers to their home organ-
izations or, in the case of secretaries,
to other assignments within the
White House," said one associate of
Mr. Carlucci. "These people are not
being fired. Mr. Carlucci thinks it
bad policy to keep people in the NSC
so long that it becomes a self-
perpetuating institution.
"For example, 011ie North came to
NSC from the Marine Corps in Au-
gust 1981 and several others have
been there as long or longer," the
source said. "That's too long for a
military officer to be away from his
service organization and it's not
good for his chances of promotion."
On arms control, Mr. Carlucci-46
relying on the advice of Kenneth
Adelman, head of the State Depart-
ment's Arms Control and Disarm-
ament Agency.
But Mr. Carlucci, considered a
tough administrator, intends to make
sure there won't be any "cowboy
style" operations in the future,
sources said.
Mr. Carlucci, a veteran of th
Foreign Service, the CIA and the
Defense Department, should have..
no difficulty getting along with Tee?
retary of Defense Caspar W.
Wii-
berger, Secretary of State GeOrgel..
Snuitz anti t.1A oirector Wffli?
Casey, all of whom supported his a0-
pointment.
One of the most important man-
dates Mr. Carlucci received was as-
surance from the president that he
Would not have to report to the Oval
Office through Mr. Regan or who-
ever succeeds the chief of staff.
Reporters also may find Mr Car-
lucci, although determined not to
discuss intelligence matters, to be ?
much mare accessible than Adm. .
Poindexter. He is expected to resist ?
a suggestion by White House spokes-
man Larry Speakes that the NSC
handle its press relations through
the White House press office, which
is under Mr. Regan's control.
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NEW YORK TIMES
4 DPcember 198.5
ABROAD AT HOME Anthony Lewis
Can Reagan Govern?
BOSTON
For nearly six years Ronald Rea-
gan governed on his terms. He
reigned and ruled. It did not
matter if he was inconsistent, if he
said one thing and did another, if he
got the facts wrong. He got the
images right. He dazzled the public.
He bent Congress to his will.
That is over. With the facts on Iran
and Nicaragua coming out over many
months and in many forums, there is
no prospect that the Reagan magic
will dominate again. Concerned
voices ask now whether the President
can govern at all. In foreign policy,
especially, is this country inevitably
In for two years of drift and danger?
The answer is that Mr. Reagan still
can provide leadership ? assuming,
at least, that there are no more
devastating disclosures of criminal-
ity and folly. But his leadership would
have to be of a different kind: collabo-
rative, not royal; centrist, not driven
by ideological obsessions.
The possibilities, bad and good,
have been demonstrated by Mr. Rea-
gan himself. Within one week he went
in opposite directions on the Iran af-
fair, starting down what looked like a
fatal path, then correcting himself.
The first step was his interview
with Hugh Sidey of Time magazine.
Mr. Reagan blamed "another coun-
try," Israel, for funneling Iranian
money to the Nicaraguan "contras."
He blamed the press ? "this whole
thing boils down to a great irresponsi-
bility on the part of the press.'' He
called Oliver North, who ran the mad
adventure, "a national hero."
It sounded like vintage Richard
Nixon: admit nothing, blame everyone
else, be bitter. That way would surely
lie a fatally wounded Presidency, leav-
ing the United States without leader-
If so, it will
not be by
dominating
ship in world affairs for two years.
But then Mr. Reagan turned the
other way. He faced the necessity for 1
an independent counsel. And he ap-
pointed a respected professional,
Frank Carlucci, as his national ser.
One wonders who
helped bring the President back from
the brink.
The Carlucci appointment could be
a significant signal. Mr. Carlucci is not
an ideologue or a cowboy. He has
served Administrations of both par-
ties. Most interesting, he had the sense
and courage to disagree with Henry
Kissinger in Spenglerian mood. As
Ambassador to Portugal in 1975, he
urged help for the democratic social-
ists there while Secretary of State Kis-
singer was trying to write them off as
harbingers of Communism.
If there is to be effective leadership
in foreign policy now, it must be in
collaboration with Congress. The
reaction to Mr. Carlucci's appoint-
ment ? relief from Republicans,
warm support from Democrats ?
showed how much it could help. But
other personnel changes cannot be
avoided if the President hopes to
,,work with Congress.
? ,
Wham Casey. the Director of Cen-
tralTMTVErThe; has tried to deceive
the intelligence committees too often
to retain credibility there, His latest
falsehood was a dilly. On Nov. 21 he
tgld the Senate committee that he
knew nothing of an arms shipment to
Iran via Israel in November 1995 ?
before the Reagan program ? though
the C.I.A. had in fact helped arrange
it with his aipproval.
Donald Regan has almost no
friends on Capitol Hill now. His
method as White House chief of staff
has been to isolate the President even
further from the hard decisions ?
from reality. ,
But collaboration with Congress de-
pends on the substance of policy as
well as respect for those who carry it
out. There can be no collaboration if
the President insists on ideological
crusades. The inescapable question is
Nicaragua.
For years now, Mr. Reagan has ob-
sessively sought to overthrow the.
Nicaraguan Government, by foul
means or fair. He managed to over-
ride Congressional objections and win
aid for the contras. But there can be no
bipartisan policy along those lines.
That is something that not only the
President but some of his intellectual
backers are going to have to under-
stand. Crusades lacking broad support
In the country are not on any longer.
There is a model in history for a Re-
publican President and a predomi-
nantly Democratic Senate working
well together: the Eisenhower years.
A fascinating book by George Reedy,
The U.S. Senate," throws much light
on it. George Reedy was assistant to
the Senate majority leader then, Lyn-
don B. Johnson, and he has great sto-
ries to tell about that age of consensus
politics. But he warns that the country
has to want it for consensus to work. I
think Americans want it now. I think
the Democrats in the Senate would
support the President in that kind of
foreign policy. It is up to Mr. Reagan.L.1
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NEW. YORK POST
ARTICLE APPEINErmd For Release 2006/01q0D.e9a-RIppl 0901R000100120001-6
) PAGE?R2--
PREZ SEEKS SPECIAL PROSECUTOR
FOR IRAN
SCANDAL
STAT
STA I
STAT
WASHINGTON ? President Reagan tried
to put the brakes on the Iran arms scandal
yesterday by speeding the appointment of
a Watergate-style special prosecutor to
probe "illegal acts."
Reagan, moving quickly to put his foreign-
policy team back on track, also named Eria41,c
Carlucci. a widely respected veteran of the CIA
and the Pentagon, as?
his new national se
curity. adviser.
The President als<
called on Congress to? vestigation by Attor-
ney General Edwin
Meese had turned up
"reasonable grounds"
for believing that fed-
eral laws had been
violated.
Immediately
urged him to apply to
the court here in
Washington for an in-
dependent counsel,"
Reagan said.
By law, such a coun-
sel, formerly known
as a special prosecu-
tor, must be selected
and appointed by a
panel of three federal
judges, rather than by
the executive branch.
National security
adviser John Poindex-
ter and an aide, Lt.
Col. Oliver North,
were booted from the
NSC staff last week
In other develop-
ments:
? The Senate Intelli-
gence Committee com-
pleted its second day of
closed-door hearings on
the arms deal and
heard about 20 minutes
of sworn testimony
from Poindexter.
Sources said Poin-
dexter was required
isa AO= ..14,1)cleX oath
because he gave mis-
By NILES_LATBEM
-ZgFeas Chief
consolidate its investi
gations of the affair,
suggesting the ap-
pointment of a special
Watergate-style com-
mittee.
"Since the outset of
the controversy over
our policy relating to
Iran, I've done every-
thing in my power to
make all the facts con-
cerning this matter
known to the Ameri-
can people," Reagan
said in an unusual na-
tionally televised ad-
dress from the Oval
Office yesterday af-
ternoon.
"I can appreciate why
some of these things
are difficult to compre-
hend and you're enti-
tled to have your ques-
tions answered. And
that is why rve pledged
to get to the bottom of
this matter," Reagan
said.
The address was Rea-
gan's third appearance
on national television
since the Iran affair
was disclosed one
month ago, creating the
worst crisis of his presi-
dency.
In his announcement
yesterday, Reagan
said a preliminary in-
leading statements to
congressional com-
mittees last month
about the extent of
U.S. government in-
volvement in the Iran
affair.
North invoked the
Fifth Amendment 40
times during his testi-
mony Monday before
he same committee.
? CIA Director Wjl-
jam Casey came under
increasing congres-
sional pressure Yester-
day to resign because
he allegedly gave mis-
leading briefings about
his role early in the
scandal.
? The Post has
learned that the Justice
Dept. formally in-
struct the CIA, the
White House and the
state and Defense
Depts. to turn over all
documents in their files
relating_to the actiuities
of five men who may
have been involved in
the money latindering
scheme,
The five are former
national security ad-
viser Robert McFar-
lane; National Security
Council aides Donald
Fortier, who died of
cancer last summer,
and Cmdr. Paul
Thompsons; Adolfo
Calero, leader of a
Nicaraguan rebel
group, and retired Air
Force Maj. Gen. Rich-
ard Secord.
The selection of Car-
lucci, a career- diplo-
mat who became a
professional govern-
ment troubleshooter
for four presidents,
was widely hailed in
Washington.
White-Muss Betimes
told, The Post that
Carlucci was pushed
by Defense Secretary
Cas_par Weinberger
and CIA Director
CaluslarmadeaLab-
jections from White
House Chief of Staff
Donald Regan and
George
of State
Shultz,
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STAT
NEW YORK DAILY NEWS
ARTICLE APPEMADoved For Release 20064011allii-tW?-lp;,y,1-00901R000100120001-6
ON PAGE
LARS-ER1K NELSON
Right man for the right job
WASHINGTON?If President
Reagan had a magic lamp, he
could not have conjured up a
better genie than yAirnIc _cartucti, the
man he named yesterday to be his new
national security adviser.
In one stroke, Reagan solves the key
problems that were threatening to
blight his presidency: He fills the void
at the National Security Council, and he
trims the power of the increasingly
arrogant and independent princes of his
administration.?chief of staff Donald
Regan, CIA Director William Casey,
Defense Secretary Caspar Weinberger
and Secretary of State Shultz
Start with the NSC. Reagan has re-
placed an ineffective and inexperienced
national security adviser, John
Poindexter, with a tough professional
who knows how to protect his country,
his boss and himself. Poindexter cre-
ated the greatest crisis of the Reagan
presidency by never inquiring into?
and never reporting to the President?
the full details of Lt. Col. Oliver North's
secret cash flow from Iran to the
Nicaraguan Contras.
"If anybody tries those tricks on
Carlucci's watch, he'll throw them out
of a window," says Robert Hunter, an
NSC veteran of the Carter administra-
tion. "If he has to, he'll crack heads."
On to State. After the befuddled
summit at Reykjavik and the fiasco of
Iran, Reagan bounces back by keeping
firm control of foreign affairs at the
White House. For a moment, Secretary
of State Shultz appeared to be off and
running with his own foreign policy.
Carlucci, a career Foreign Service offic-
er, has more foreign experience than
Shultz and most of his staff?and he will
be at the President's side.
On to Defense. With Carlucci in the
White House, Reagan sets the stage for
a more rational and successful defense
buildup. For the past six years, Defense
Secretary Weinberger' has repeatedly
gone to Congress with unrealistic re-
quests for more money?and then let
Congress cut both the funds and the
defense programs higgledy-piggledy,
with no coherent strategy.
Carlucci, who was Weinberger's dep-
uty at the Pentagon from 1981 to 1983,
favors a defense buildup, but he told
senators at his confirmation hearings in
1981 that there was no way the Penta-
gon could "spend every dollar some
people want to spend on defense." Look
for a more rational approach.
On to the CIA. Reagan now has an
experienced and skeptical adviser to
deflect madcap schemes for covert
operations like the Iranian arms sale.
As deputy CIA director during the Car-
ter years, Carlucci ran "one of the
riskiest covert actions we undertook,"
former CIA director Stansfield Turner
said yesterday. "But?both he and I
resisted covert operations that were not
founded on our basic foreign policy
interests."
Finally, into the center of power at
the White House, where Don Regan has
taken charge of virtually all operations,
foreign and domestic. Carlucci will not
report to Reagan through Regan. And
he's not going to get bullied, shouted
down, shot down or ground down in
Intramural squabbles.
How tough is Frank Carlucci? He
was stabbed in the back in a brawl in the
Congo in 1980 as he saved a Navy driver
from an infuriated mob. As a 44-year-old
ambassador to Lisbon in 1974, he defied
then-Secretary of State Henry Kissinger
and persuaded him to defeat commun.
ism in Portugal by backing a moderate
Socialist government.
In addition, says Stansfield Turner,
Carlucci "is a man of impeccable in-
tegrity, an excellent conciliator and
very sensitive toward the workings of
Congress."
Those are all his good qualities. Now
for his drawbacks. How does a man of
Carluccrs experience support Reagan's
far-fetched plan for a leakproof shield
against nuclear missiles? How does a
Carlucci advise the President when he
dreams that democracy can be restored
to Nicaragua by giving just another
$100 million to Comandante Yahoo and
the Manana Liberation Army?
Tough days are ahead for America,
the President and for Frank Carlucci.
He's a good man for tough days.
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STAT
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WASHINGTON POST
3 December 1986
Reagan Seeks Special Counsel,
Names Carlucci Security Aide
By David Hoffman and Lou Cannon
Washington Post Staff Writers
President Reagan yesterday called for
the appointment of an independent counsel
to investigate charges that the administra-
tion illegally diverted money from the Iran
weapons sales to the Nicaraguan rebels, and
he appointed Frplis_C.SarlAkcci, a former
deputy defenii secretary and deputy CIA
director, as his fifth national security advis-
er.
"If illegal acts were undertaken, those
who did so will be brought to justice," Rea-
gan said in a four-minute nationally tele-
vised address from the Oval Office, his
fourth attempt in as many weeks to respond
publicly to the intensifying political crisis.
Attorney General Edwin Meese III an-
nounced that the Justice Department inves-
tigation had turned up enough evidence to
warrant an application to the U.S. Court of
Appeals here for an independent counsel.
Reagan's announcement brought sighs of
relief from congressional Republicans who
have grown increasingly concerned about
the controversy, but leaders in both parties
said their own independent inquiries will
move ahead regardless of the special coun-
sel or White House personnel moves. Rea-
gan endorsed the idea of a consolidated,
Watergate-style congressional investiga-
tion. The Republican leaders told Reagan
they could not defend him unless they knew
the full story, sources said, and they are re-
turning to the White House for another
meeting with the president today.
The president's brief speech yesterday
followed a flurry of debate among senior
White House officials about what he should
say. Informed administration sources said
that aides loyal to the embattled chief of
staff, Donald T. Regan, sought to include
language in the president's address to the
effect that Regan did not have any prior
knowledge that money was diverted to the
Nicaraguan rebels. However, the language
was not included in the final speech.
The choice of Carlucci also followed a
struggle within the administration in which
Regan was apparently isolated. As recently
as Monday, the chief of staff told aides Car-
lucci was not a serious candidate for the
post. Carlucci was backed by CIA Director
William J. Casey, Defense Secretary Caspar
W WeinLager and Secretary of State
Georg e P. Shultz. sources_l_lit._
The sources said it was the first time in
nearly two years that the president made an
important personnel choice that was not ad-
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vocated by Regan. But sources close to
Regan claimed, after the decision, that Car-
lucci was acceptable to the chief of staff.
(rs _ , -
Regan indicated to Republican congres-
sional leaders yesterday that he intends to
resist demands that he resign in the after-
math of disclosures that $10 million to $30
million from Iran weapons sales was fun-
neled to the contras through Swiss bank
accounts. Regan told the leaders that the
need to maintain continuity in the presi-
dent's program requires him to remain on
the job.
Sen. Alan K. Simpson (R-Wyo.), the out-
going majority leader, said after seeing the
chief of staff: "I don't see how you
can possibly leave the president
with a coming session, a State of
the Union address, budget consid-
erations, Gramm-Rudman-Hollings
. . . and other things. You can't
leave him alone to do that. And it's
'very important, I think, for stability,
?and I think you're going to see ev-
erything come up, and that's the
key." House Minority leader Robert
H. Michel (R411.) quoted Regan as
saying there would be a "delay" in
Reagan's program if he left.
However, another influential Re-
publican, outgoing Senate Foreign
. Relations chairman rRichard_G.
'Lugar (R-Ind.), called for Regan and
asiTto resign.
Sources inside and outside the
administration said Reagan had
come to the conclusion over the
weekend that he needed to call for
an independent counsel investiga-
tion, and on Monday he said he
would "welcome" one if the Justice
Department found it warranted. Af-
ter learning that Meese was pre-
pared to seek an independent coun-
sel, Reagan said he "immediately
urged" Meese on Tuesday to do so.
Reagan noted his own special re-
view, board's inquiry into the func-
tions of the National Security Coun-
cil and said it would, along with the
independent counsel, provide "a
dual system for assuring a thorough
review of all aspects of this matter."
He did not mention Congress as
part of this "dual system," but added
in the speech that "I recognize fully
the interest of Congress" in the se-
cret operations. "We will cooperate
fully with these inquiries," he said.
"I have already taken the unprec-
edented step of permitting two of
My former national security advis-
ers to testify" before Congress.
Approved For Release 2006/01/30 : CIA-RDP91-00901R000100120001-6
Reagan was referring to Vice
Adm. John M. Poindexter, who re-
signed last week, and his predeces-
sor, Robert C. McFarlane, who
made a secret trip to Tehran on a
mission delivering weapons last
May. McFarlane has testifed exten-
sively before the Senate _ Intelli-
genTe?Committee thiii weeTi, but
,Poindexter yesterday reportedly
refused to answer questions.
Another key figure in the clan-
destine operations, former National
Security Council staff member Lt.
Col. Oliver L. North, also refused to
answer questions, invoking his Fifth
Amendment privilege against self-
incrimination before the Senate
panel.
The president said congressional,
inquiries "should continue" but as-
serted that Congress could conduct:
the probe "without disrupting the
orderly conduct of a vital part of
this nation's government." Reagan
said he supported the idea of out-
going Senate Majority leader Rob-
ert J. Dole (R-Kan.) that the con-
gressional probe be consolidated'
into one bipartisan panel.
"If the investigative processes
now set in motion are given an op-
portunity to work, all the facts con-
cerning Iran and the transfer of
funds to assist the anti-Sandinista
forces will shortly be made public,'
Reagan said. "Then the American
people, you, will be the final arbit-
ers of this controversy."
A source present at the meeting
between Reagan and the congres-
sional leaders said the lawmakers
sought to impress on him the seri-
ous nature of the controversy.
"Gradually, over time, the pres-
ident is acquiring a realization of
how serious his problem is," said
the source. "The president is angry
at the whole situation, he's angry at
the press and the Republicans in
Congress for not defending him. We
tried to convey to him that there
was a risk in defending him unless
we knew the whole story."
The president's actions were
hailed by Democrats as well as Re-
publicans on Capitol Hill, although
leaders continued to press ahead
with plans for one or more congres-
sional probes of the affair, and some
lawmakers of both parties called for
further action by the administra-
tion.
"The president has taken some
very positive steps. He could take
more," including "cleaning house
around him and saying to the Amer-
ican people he recosniz
with the benefit4PitHiN 'Fi-Vhaele
mane a mistaxe, ? said senate Dem
ocratic leader Robert C. Byrd (D
W.Va.).
House Majority Leader james_C?
Wright Jr. (D-Tex.) said Reagan
made "two steps in the right direc-
tion" by calling for appointment of a
special counsel and naming Carlucci
as national security adviser. But he
said there are unanswered ques
tions about violation of laws, includ
ing those involving arms sales and
aid to the Nicaraguan contras, that
still need to be addressed by the
administration.
Dole said, "He's come a long way
. . . . Now it's up to Congress to get
a mechanism and go to work, not
wait till next January and drag this
all into next spring and summer."
Several Democrats and Repub-
licans said they anticipate a further
shake-up of top-level personnel
within the administration. "I sus-
pect that will be forced on the pres-
ident . . . by public opinion," said
Sen. J. James Exon (D-Neb.).
Congressional leaders remained
at odds over how to proceed with
congressional inquiries, but it be-
came increasingly apparent that a
Watergate-style select committee
could be named in the Senate if not
the House, or by the two houses
acting jointly.
Wright said he had "no particular
prejudice" against consolidating
House committee probes under the
umbrella of a select committee but
wanted to confer with other House
leaders before coming to a decision.
Byrd, who will take over as majority
leader when Congress reconvenes
next month, said he favored cre-
ation of a Senate investigative com-
mittee but did not rule out the joint
House-Senate probe favored by
Dole.
Byrd said he hoped to consult
with Dole and Wright on the issue
shortly and plans to introduce leg-
islation to create a Senate panel as
a first order of business when Con-
gress convenes Jan. 6.
Byrd said he envisioned a bipar-
tisan committee of no more than 11
members and has already recruited
a large number of volunteers to
serve on it. Asked whether he
thought this response indicates a
Democratic zeal to go after the
Reagan administration, Byrd said
no, adding that Dole also is getting
a "plethora" of volunteers from the
Republican side of the aisle.
Also yesterday, Democrats on
the Senate Judiciary Committee
as6a10001314#315a.tiOIA-ROPM1300901R000100120001-6
House officials may have broken at
least six criminal laws in the clan-
destine operations, and urged the
appointment of the independent
counsel.
Staff writer Helen Dewar
contributed to this report.
STAT
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WASHINGTON TIMES
3 December 1986
New NSC chief seen safe choice
though Viguerie voices 'hock'
By eogprEgn.t.ajne.
and -Ge6rde Archibald
THE WASHINGTON TIMES
frank C. tlicci? President Rea-
gan's fifth national security adviser
in six years. is considered a safe
choice at a critical time for the ad-
ministration.
Mr. Carlucci, like his predeces-
sors, is expected to keep a low profile
and be a president's man. He is not
expected to push new policy initia-
tives.
The current crisis over U.S. arms
sales to Iran and low morale on the
National Security Council staff will
test his bureaucratic skills to the
fullest. He is entering uncharted wa-
ters, because there is no precedent
like this in the NSC's 40-year history.
Nevertheless, Mr. Carlucci enters
office with some strong cards. He is
an experienced, professional civil
servant who has done stints in the
Foreign Service and filled the No. 2
spots at the CIA, the Department of
Defense and the Office of Manage-
ment and Budget.
His strongest upporters for the
job are CIA Director William Casey,
Secretary of Defense Caspar Wein-
berger and Secretary of State
George Shultz, all of whom are key
members of the NSC.
"He has high-powered friends and
admirers on both sides of the aisle,"
said one intimate.
Conspicuously absent from this
list of supporters is White House
Chief of Staff Donald Regan, who
informed sources say pushed an-
other candidate, William Hyland,
currently editor of Foreign Affairs,
a quarterly journal of the Council on
Foreign Relations. Sources also indi-
cate that Mr. Carlucci's appointment
is another sign of Mr. Regan's ru-
mored departure from the White
House.
Mr. Carlucci has a far greater va-
riety of experience in government
and its management than any of his
predecessors. As Mr. Reagan told
the nation yesterday, he is "uniquely
qualified."
Mr. Carlucci has also built a repu-
tation for making things work under
adverse conditions ? a reputation
which he will have to earn again, as
the demoralized NSC staff will be
subjected to months of investiga-
tions.
Approved
Critics are skeptical of his man-
agement skills, pointing to his foray
into private sector top management
beginning in 1982 at Sears World
Trade Inc. He headed the trading
company until it was dissolved a
month ago after losing a reported
$60 million.
Mr. Carlucci has since operated
his own Washington-based consult-
ing firm, International Planning
Analysis Center, with reported an-
nual billings of $4.5 million.
During the Kennedy and Johnson
administrations, the 56-year-old
Pennsylvania native served in var-
ious diplomatic assignments in Af-
rica and Latin America.
He headed federal anti-poverty
programs at the old Office of Eco-
nomic Opportunity and was No. 2
under Mr. Weinberger at the Office
of Management and Budget during
President Richard M. Nixon's first
term.
Mr. Carlucci again served as Mr.
Weinberger's deputy as undersecre-
tary of Health, Education and Wel-
fare after Mr. Nixon's re-election in
1972.
Although he is an experienced
foreign policy hand, Mr. Carlucci
left government service more than
four years ago, and it will take time
for him to familiarize himself with
the issues and the detail necessary
to be an effective manager of na-
tional security policy. He has no as-
sociation with the present Iran-
induced troubles of the White
House, which will keep him from be-
ing dragged into the on-going con-
troversy.
He will have to bring in his own
immediate staff, which will contri-
bute to the awkwardness of the tran-
sition. He also will have to forge a
working relationship with a pres-
ident who feels uneasy with new
faces. But his reputation as "a team
player" will go down well in the
White House in general and with Mr.
Reagan in particular.
Mr. Carlucci has critics. "He's just
a bureaucrat with no fixed philos-
ophy or beliefs in the foreign policy
arena," a former senior NSC official
said.
Conservative activist Richard
Viguerie said he reacted with "shock
and disbelief" at the appointment.
"This signals the end of the Reagan
For Release 2006/01/30 : CIA-RDP91-00901R000100120001-6
revolution. It's gone. They are going
to play the establishment game. He
is totally capitulated to the Washing-
ton establishment."
Conservatives have resisted his
earlier appointments and distrusted
Mr. Carlucci's record of serving both
Democratic and Republican admin-
istrations.
The suspicion that he does not
share the president's beliefs, is rein-
forced, they say by Mr. Carlucci's
testimony at hearings that con-
firmed him as deputy secretary of
defense. He summarized his politi-
cal philosophy to a Senate committee
by saying, "We all have to compro-
mise. That's what it's all about."
During Jimmy Carter's pres-
idency, Mr. Carlucci was deputy di-
rector of the CIA.
In 1977, Mr. Carlucci was first told
by a reporter who had known him for
many years that he had been chosen
by then-CIA director Adm. Stan-
sfield ginner for the agency's No. 2
post, the reporter said.
Mr. Carlucci responded, "That's
[expletive], I barely know the man,"
the reporter said. Mr. Carlucci said
he had met Adm. Turner only once
in West Germany at a tennis game
with Gen. Alexander Haig.
"So how did you get the job?" the
reporter asked. "[Former Vice Pres-
ident] Fritz Mondale, I was his
choice," Mr. Carlucci reponded.
"In those days, it was fashionable
to brag about one's Democratic con-
tacts," the reporter said. "'How did
you get to know Mondale?' I asked
him."
Mr. Carlucci explained that, as di-
rector of the 0E0 years earlier, "he
was Mondale's contact in the Nixon
administration ... and kept Mondale
I then a Democratic senator from
Minnesotal up to speed on what was
going on," the reporter said.
Mr. Carlucci first came to national
attention in November 1960 by res-
cuing a carload of Americans from
an angry mob in the Congolese capi-
tal of Leopoldville after a local citi-
zen was killed in a traffic accident.
He barely escaped with his life after
being stabbed in the back of the neck
during the rescue.
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Fifteen years later, as President
Ford's ambassador to Lisbon, Mr.
Carlucci was credited with saving
Portugal from joining the Soviet
bloc when, according to intimates,
then-Secretary of State Henry Kis-
singer had "written off" the country
as going to the communists.
With $50 million from the CIA and
West Germany's Social Democratic
Party, arranged by former Chancel-
lor Helmut Schmidt, Mr. Carlucci
quietly backed Portuguese Socialist
Party leader Mario Soares as an al-
ternative to the communists in the
country's 1975 Constituent Assem-
bly elections.
Following the Socialist election
victory, Mr. Carlucci then prevailed
over Mr. Kissinger's view that U.S.
aid to Portugal's leftist military re-
gime at 1:he time should be cut off.
Mr. Carlucci's support for the Por-
tuguese Socialists riled prominent
conservatives then backing Mr. Rea-
gan instead of President Gerald
Ford for the 1976 GOP presidential
nomination. The conservatives also
were angry over Mr. Carlucci's sup-
port at 0E0 for continued funding of
federal legal services programs,
which then-Gov. Reagan was trying
to cut off in California.
In 1981, when Mr. Reagan became
president, some of his conservative
advisers tried to prevent Mr. Carluc-
ci's appointment as No. 2 man at the
Pentagon. But Defense Secretary
Weinberger insisted on the ap-
pointment,
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k
STAT
"Mai 421171elease 200113/Q4614Y g 040
ORy TIMES
Security Adviser Gets High Marks
For Diplomatic and Political Skills
91-00901R000100120001-6
By MICHAEL R. GORDON
Special to The New York Times
WASHINGTON Dec. 2 ? The ap-
pointment of Fran's, C.S,arlucca as
President Reagan's national security
adviser was generally praised today as
a step that would improve manage-
ment of the National Security Council
and help restore the Administration's
credibility.
State Department officials, who have
been openly at odds with the National
Security Council over the Iran affair,
cited Mr. Carlucci's background as a
Foreign Service officer and his long ex-
perience in several Government agen-
cies.
"If you went to central casting, you
could not get a better N.S.C. director,"
one State Department official said.
Pentagon officials cited Mr. Carluc-
ci's experience in managing the De-
fense Department in the first years of
the Reagan Administration and noted
. his close ties with Defense Secretary
Caspar W. Weinberger.
Some officials from the Carter Ad-
ministration also praised the move.
''He is a man of great integrity and is
'skilled in bringing divergent views to-
gether," said Adm. Stansfield Turner,
retired, who was Director of Central
Intelligence when Mr. Carlucci held the
No. 2 two job at that agency. "He un-
derstands the political process and how
to work with Congress. This Adminis-
tration needs someone who under-
stands this very much."
Current and former officials said Mr.
Carlucci's predecessor as national se-
curity adviser, Adm. John M. Poindex-
ter. lacked such political skills.
'Badly Needed' Experience
"Since he has had experience in
Democratic and Republican Adminis-
trations, he brings an ability to work
with people across the political spec-
trum which is badly needed," R. James
Woolsey, Under Secretary of the Navy
in the Carter Administration, and a
Democrat, said of Mr. Carlucci.
But the new national security ad-
viser is not immune to controversy.
As the day-to-day manager of the
Pentagon in the early part of the Rea-
gan Administration, he presided over a
delegation of authority to the military
services that some military experts
say led to a lack of coordinated budget-
ary planning.
According to a published report, he
also intervened in the case of Gen.
Richard V. Secord, who had been re-
moved from his post as Deputy Assist-
ant Secretary of Defense during a Jus-
tice Department investigation of his
possible ties to an arms shipment com-
pany, Eatsco, that had been fined $3
million for filing inflated invoices.
According to documents in the pos-
session of General Secord's lawyer, the
general was told that if he took a poly-
graph test and passed it, his suspension
would be lifted. But just before he was
scheduled to take the test, General Se-
cord "was abruptly reinstated" at Mr.
Carlucci's order "without any prior
notification to Justice," Peter Maas
wrote in his book "Manhunt," an ac-
count of the dealings of the convicted
arms merchant Edwin P. Wilson.
General Secord has emerged as one
of the main figures in the investiga-
tions of the supply of arms to Iran and
to the Nicaraguan rebels.
Mr. Carlucci's past role in Washing-
ton has been primarily that of as a
coordinator who has not overshadowed
his superiors. While he brings more
wide-ranging experience to his post
than Mr. Reagan's previous national
security advisers, it is likely that he
will play less of a role in shaping policy
than such past advisers as Henry A.
Kissinger, who served President
Nixon, and Zbigniew Brzezinksi, Presi-
dent Carter's adviser. Another promi-
nent national security adviser was
McGeorge Bundy, who served under
Presidents Kennedy and Johnson.
Mr. Carlucci, A native of Scranton,
Pa., was born on Oct. 18, 1930. He has
two children by his first wife and one
child by his second wife.
He graduated from Princeton Uni-
versity, where he made friends with
Donald Rumsfeld, who later picked
him for a top job during the Nixon Ad-
ministration.
Other members of his class at
Princeton included James A. Baker 3d,
the Secretary of the Treasury and for-
mer White House chief of staff, and
Robert B. Oakley, former head of the
State Department's office of counter-
terrorism policy.
Mr. Carlucci later attended the Har-
vard University business school,
worked in private industry and served
two years in the Navy.
He joined the Foreign Service in 1956
and served in a number of posts in Af-
rica. In the Congo, now Zaire, he was
stabbed and beaten by an angry mob
after he came to the aid of Americans
there.
In Conflict With Reagan
He served as consul general in Zanzi-
bar, Tanzania, and was political
counselor in Rio de Janeiro until 1969.
Mr. Rumsfeld then asked Mr. Car-
lucci to serve as his No. 2 at the Office
of Economic Opportunty, the anti-pov-
erty agency, in the Nixon Administra-
tion.
Mr. Carlucci assumed the post of di-
rector after Mr. Rumsfeld left and
found himself drawn into a sharp dis-
pute with Mr. Reagan, then Governor
of California.
Mr. Reagan was seeking to end the
California rural legal assistance pro-
gram, which was financed by Mr. Car-
lucci's agency. Mr. Carlucci resisted
these efforts by Mr. Reagan and the
Nixon White House and managed to
keep the program alive.
Mr. Carlucci differed strongly with
top officials when he served as United
States Ambassador to Portugal. He
took that job in 1975 'after serving as a
deputy to Mr. Weinberger at the Office
of Management and Budget and the
Department of Health, Education and
Welfare.
On to the C.I.A.
Mr. Carlucci persuaded the White
House to maintain ties with the leftist
military government that emerged
after a bloodless revolution in Portugal
despite strong opposition from Henry
A. Kissinger, then Secretary of State,
who argued that Portugal should not be
supported because it would go Commu-
nist.
In 1977, the Carter Administration
named Mr. Carlucci as Deputy Direc-
tor of the Central Intelligence Agency,
an appointment that made him a target
of conservatives when Mr. Weinberger
later sought to bring his former deputy
to the Pentagon.
But conservatives who assailed Mr.
Carlucci for serving under President
Carter had little to complain about as
the Reagan Administration undertook
the largest peacetime military buildup
in American history.
Mr. Carlucci played a key role in
managing that buildup. He initiated a
number of widely publicized changes in
the buying of weapons. He left his Pen-
tagon post for private industry before
these measures could be fully carried
out and his effort to reform the Penta-
gon was, at best, a mixed success, in
the view of many Congressional ex-
perts and Pentagon officials.
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WALL STREET JOURNAL
ARTICLE APPEARED Approved For Release 200figitt/30e:rCIAAIDP91-00901R000100120001-6
1111 PkaLsa?......0?
Veteran Diplomat Carlucci Likely to Be
Strongest Reagan National Security Aide
STAT
By FREDERICK KEMPE
Staff Reporter Of THE WALL STREET JOURNAL
WASHINGTON ? ?Frank _Carlucci, a
tough veteran diplomat and former de-
fense official, is likely to be the most pow-
erful and influential national security ad-
viser of the five to serve President Rea-
gan.
The president yesterday announced that
he had named Mr. Carlucci to succeed
John Poindexter, who resigned last week
in the storm over the sale of arms to Iran
and the transfer of profits to the Nicara-
guan anti-Communist Contra forces.
From the beginning, Mr. Carlucci is in
a better position than his predecessor be-
cause his govern-
ment experience is
more extensive and
his services are so
greatly needed. To
get Mr. Carlucci to
take the job, the
president promised
him direct access to
the Oval Office, ac-
cording to a senior
administration offi-
cial.
That single act,
officials say, en-
sures that the mandate of the national se-
curity adviser will be strengthened and
that the influence over foreign policy of
Chief of Staff Donald Regan will recede
even further. Mr. Regan's position already
has been considerably weakened by the
Iran affair.
Mr. Carlucci will likely use his influ-
ence to shake up the National Se, it
Council staff replacing some memliers
with allies from his days as deputythe
un-
der President Carter, and ee JutffeTise
? .
as well as an ambassador and a forei
service officer. He r 7.1717?y to ring
more order to a now chaotic foreign policy
apparatus. And he'll try to regain quickly
some momentum for the U.S. on the world
stage for Mr. Reagan's final two years as
president, to deflect attention from the
continuing investigation of the Iran arms
sale.
Mr. Carlucci. who is 56 years old, cur-
rently operates his own consulting firm
and is chairman and chief executive offi-
cer of an ailing Sears, Roebuck & Co. sub-
sidiary.
Frank Carlucci
creta
U
Mr. Carlucci has contacts throughout
Washington and on Capitol Hill. He has a
close relationship to De ense Secretary Ca-
spar Weinberger. Secretary of State
George Shultz and_ZA director William
Casey.
"He's one who gets along with all three
of them," says Kenneth Adelman, director
of the Arms Control and Disarmament
Agency and a longtime friend of Mr. Car-
lucci. But he added that he wouldn't defer
to these men: "I've never seen Frank be
shy. No one will be left out, but he won't
hesitate to make his position known."
The selection of Mr. Carlucci for the
National Security Council post is seen by
many as a victory for Mr. Weinberger,
who lobbied hard for his appointment, and
as a defeat for Mr. Regan, who had sup-
ported William Hyland, Foreign Affairs
Magazine editor and former National Secu=
rity Council staff member. Speaking in
Paris, where he was meeting with govern-
ment officials, Mr. Weinberger said, "I'm
delighted, couldn't think of a better ap-
pointment."
Sen. Richard Lugar (R., Ind.), chair-
man of the Senate Foreign Relations Com-
viittee, praised the appointment but sug-
gested it must be followed by other re-
placements, incTuding that of Mr. Regan
and Mr. Casey. "There are enormous op-
portunities for the Reagan presidency in
the next two years if the president con-
tinues to move in a timely manner to bring
more new people into his administration,"
he said.
Rep. Dick Cheney IR., Wyo.), who was
White House chief of staff under President
Ford and is a friend of Mr. Carlucci, says
the new national security adviser will take
a low profile, in the style of President
Ford's National Security Adviser Brent
Scowcroft, as opposed to the style of Henry
Kissinger, who held the post in the Nixon
administration before becoming Secretary
of State.
Mr. Carlucci's critics say that although
he is a skilled bureaucratic infighter, he
isn't an originator of programs or an effi-
cient manager and that he sometimes
seems overconcerned with secrecy, as evi-
denced by his support for lie-detector tests
at the Pentagon.
Mr. Carlucci is leaving a battered busi-
ness at Sears. He has been chairman and
chief executive officer of Sears World
Trade Inc., the smallest and weakest of the
retail and financial-service company's
units. Wounded by the poor trade climate
and its own inexperience, it never turned a
quarterly profit. In October, Sears began
taking steps under Mr. Carlucci's supervi-
sion to close the unit's domestic operations
and to fold its international operations into
Sears Roebuck's big merchandise group.
Mr. Carlucci's stint at the Pentagon
brought mixed reviews. He took charge of
the administration's efforts to revamp the
Pentagon's weapons buying process, which
came under scathing attack in Congress
and the press with disclosures of over-
charges and other irregularities.
The effort produced a set of new
weapons-buying policies that became
known collectively as the "Carlucci re-
forms." Mr. Carlucci left the department
before they could be fully put in place. One
Carlucci aide complained that the push
was too much geared to creating an ap-
pearance of reform while those who were
supposed to carry out the policies weren't
allowed to push them through.
Mr. Carlucci has drawn scorn from the
right for not being enough of a conserva-
tive and for his CIA service in the Carter
administration at a time when?the right
contends?the intelligence agency had
been seriously weakened.
However, he won praise in other quar-
ters for his actions while ambassador to
Portugal in the mid-1970s. At that time he
persuaded the White House to support a
leftist government and the country's move
toward democracy in opposition to
then-Secretary of State Kissinger, who
feared the demise of the right-wing dicta-
torship would lead to Communism.
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ozr,
.Appro edii-or Release 2006/01/3hsApak'911flq!01R000100120001-6
1 Becember 1986
Carlucci heads list
?
STAT of N c candidates
By Jeremiah O'Leary
THE WASHINGTON TIMES
Frank Carlucci, the former
deputy secretary of defense in the
Reagan administration and the
deputy director of the CIA in the
Carter administration, has emerged
as the front-runner to succeed Vice
Adm, John Poindexter as the
president's national security ad-
viser, it was learned by The Wash-
ington Times.
An announcement of the succes-
sor might be made as early as this
morning, when President Reagan
meets with top officials at the White
House. The president returned last
night from a brief Thanksgiving
break at his California ranch to a
capital rife with rumor, speculation
and intrigue.
The search for Adm. Poindexter's
replacement has narrowed to a so-
called "short list," including the
names of David M. Abshire, 60, who
is completing a three-year tour as
U.S. ambassador to NATO, and Wil-
liam G. Hyland and Bobby Inman,
both of whom were former deputy
directors of the CIA.
Mr. Carlucci is said to have the
support of Secretary of State
George Shultz, Secretary of Defense
Caspar W. Weinberger and CIA Di-
rector William J. Casey. Mr. Hyland
is understood to be the favorite of
Donald Regan, the White House
chief of staff.
Though several people talked to
Mr. Carlucci over the weekend about
his availability, the job has not been
tendered by the president. "This is
not a job you accept with one tele-
phone call," Mr. Carlucci said last
night. "There must be a clear under-
standing of what the charter is all
about."
The strengths that make him at-
tractive as a compromise choice are
said to be his ability to work as "a
civil servant in the British mold,
who can work with a Democratic or
Republican administration with
equal effectiveness."
Mr. Carlucci, who was deputy sec-
retary of defense in the first two
years of the Reagan administration,
has had a long career in government.
He was chairman of Sears World
Trade Inc.. which recently was dis-
solved. He still operates his own con-
sulting firm, International Planning
Analysis Center, which reports $4.5
million in annual sales.
Adm. Poindexter, the man he
would replace, resigned last week
after it was disclosed that profits
from U.S. arms sales to Iran were
diverted to Nicaragua's anti-Marxist
rebels, or Contras.
The growing furor over the
Iranian arms sales and Nicaraguan
rebel funding led to the firing of Lt.
Col. Oliver North, 43, the aide to
Adm. Poindexter who is believed to
have engineered the plan to divert
money from Iran to the Contras dur-
ing a period when Congress would
not authorize aid to the rebels.
Congress has since approved $100
million in aid to the Nicaraguan re-
sistance.
Navy Secretary John Lehman,
former United Nations Ambassador
Jeane Kirkpatrick and retired Air
Force Lt. Gen. Brent Scowcroft also
figured in the speculation over who
would succeed Mr. Poindexter, but
are now believed to be out of the
running.
The replacement for Adm.
Poindexter is expected to insist on a
strong mandate for taking charge of
the 46-member NSC staff in light of
the apparent pervasive influence of
White House Chief of Staff Donald
Regan, who is himself the subject of
rumors that his job is in jeopardy
Mr. Regan says he knew nothing of
the arms-to-Iran, cash-to-the-
Contras scheme, and likened him-
self to a bank president who should
not be held accountable for mistakes
by "bank tellers," presumably Adm.
Poindexter and Col. North.
? Some NSC aides are bitter over
what they describe as "constant
interference" by Mn Regan and his
hand-picked lieutenants in national
security matters.
Former National Security Ad-
viser Robert McFarlane, one of the
architects of initial arms sales to
Iran in mid-1985, resigned last De-
cember after a series of dis-
agreements with Mr. Regan.
Adm. Poindexter also operated in
the shadow of Mr. Regan, who is con-
sidered the most powerful White
House chief of staff since the late
Sherman Adams in the Eisenhower
administration.
Mr. Carlucci is a Princeton
graduate, Korean War naval gun-
nery officer and former foreign
service officer. In 1960, he was the
victim of a stabbing in the Congo
(now Zaire) when he rescued a car-
load of Americans from a mob. He
served in Zanzibar and as political
officer of the U.S. Embassy in Brazil.
Mr. Carlucci later became director
of the Office of Economic Opportu-
nity in 1971.
The following year he became
deputy director of the White House
Office of Management and Budget,
then run by Mr. Weinberger. In 1973,
he was named Undersecretary of
Health, Education and Welfare,
where he helped carry out the so-
called New Federalism plan to give
states and localities greater control
over social programs.
President Gerald Ford named
him ambassador to Portugal in 1974
and he is credited with helping to
save Portugal from a communist
takeover at a time when Secretary of
State Henry Kissinger had written
off the country and had opposed fur-
ther aid to Portugal's Socialist gov-
ernment.
Mr. Carlucci, working closely
with Helmut Schmidt, then chancel-
lor of West Germany, helped arrange
desperately needed financing for
Portugal's Social Democratic Party,
which finally prevailed against the
Communists.
In 1978, President Jimmy Carter
named Mr. Carlucci deputy CIA di-
rector under Stansfield Turner.
After Mr. Reagan was elected in
1980, Mr. Weinberger refused to
serve as secretary of defense unless
he could have Mr. Carlucci as deputy
secretary Mr. Carlucci was strongly
opposed by conservatives in the new
administration and in Congress. But
he got the job and worked with Mr.
Weinberger until 1982, when he left
to join Sears World Trade.
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Apr/ase 2006/EM CGlapP91-00901R000100120001-6
30 November 1986 FILE ONLY
Veteran dealers and middlemen
are tied to the contra diversion
By Fred Kaplan
Globe Staff
WASHINGTON - The international group
that engineered the Clow of arms and money
from Iran to the Nicaraguan rebels is part of a
small, tightly knit network of arms merchants
and middlemen who have reportedly dealt in the
sometimes shady business of weapons transfers
for years.
Its key participants have close connections
with high-ranking officials in the United States.
Israel and Saudi Arabia.
For years, several of them have been at the
center of deals in which arms have been the in-
strument of policy, the means by which local
politics, bureaucracies and even nationalist loy-
alties can be circumvented. And in some cases,
they have had roles in deals in which much per-
sonal profit can be made.
A central figure in this case appears to be
Richard Secord, a retired US Air Force general
who has gained notoriety in recent years as one
of the two main supporters of aid - private and
public - to the rebels, called contras. battling to
overthrow the Sandinista government of Nica-
ragua.
Unwelcome publicity
Around this time, Secord was
also facing some unwelcome pub-
licity for his involvement In an-
other arms deal in the Middle
East.
His colleagues In this arrange-
ment were even higher notables:
Erich von Marbod, former director
rithe Pentagons arms-sales of-
ice: and Thomas Clines, former
rector of training for the Central
Intelligence Agency's clandestine
offices. They had all worked in
/ran during the shah's reign.
According to a 1982 column by
Jack Anderson. based on FBI in-
vestigations. these three were
shareholders in a company that
shipped US government arms to
Egypt - at the same time that von
Marbod was a Pentagon official in
charge of making decisions on
arms shipments to Egypt.
? In his book, -Manhunt," Peter
Maas corroborates Anderson's
story and says that another inves-
tor in the company was Edwin P.
Wilson, the former CIA agent who
amassed a small fortune selling
arms to the Libyan government
and various
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Temporary removal
. : The company, called 1nterna-
k1onal Research and Trade,
Ihanged Its name to the Egyptian
American Transport and Services
Corporation.
t-*
f* According to Maas, when the
113I began investigating the com-
many in early 1982, Secord - the
billy one of the three still in goy-
.
rinment - was removed from of-
fice pending a lie-detector test.
t ' Maas writes: "But he never
.,
took the test. Instead, without any
prior notification to the Justice
,Cepartment, he was abruptly
teinstated by Frank C. Carlucci, a
former deputy director ,of the CIA
(ho had become the number two
'Irian in the Defense Department."
i .. In 1983, Secord retired from
the military and went into busi-
tiess with an Iranian of Palestin-
ian descent named Albert Hakim.
in a company called Stanford
technology Trading Group Inter-
hational. according to the Maas
r_
book and the Anderson column.po ,
services. and Frank Ter-
The company has reportedly
hired several former CIA officials. cludIng Theodore Shackley, a
ormer associate director of clan-
stine
dwin Wilson's associate in the
I. who was later unmasked as
, errorist arms-running market.
The company is still in exis-
tence. though Shackley and Terpil
are no longer working there.
* * * * * * * *
STAT
STAT
STAT
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WASHINGTON TIMES
10 February 1987
!mu; 1111 ... .....
Ghost who walks
National Security Adviser
Frank Carlucci got some dis-
tressing news during a recent
NSC staff meeting called to plot
the administration's dealings with
Congress on arms control. Insid-
ers say Mr. CarLuce' as shocked
to disco ?er a t e top staffer for
arms control on the Senate For-
eign Relations Committee was
none other than conservative Da-
vid Sullivan.
Mr. Sullivan is a former CIA
analyst whose Capitol Hill career
has been devoted to exposing So-
viet arms treaty cheating and
keeping the Reagan administra-
tion's feet to the fire about it. Mr.
Sullivan recently joined the com-
mittee staff following North Caro-
lina Sen. Jesse Helms' successful
bid to become the committee's
ranking Republican.
"Sullivan?" Mr. Carlucci re-
portedly remarked upon learning
of the Helms aide's new position.
"I Expletivel! I thought I fired
him."
'Thue enough, Mr. Carlucci did
fire Mr. Sullivan when both
worked at the CIA iii the late
1970s. Washington is a small
town, though, and familiar faces
do keep turning up.
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r?Tlr crEATAI
SAT
WASHINGTON POST
4 December 1986
Carlucct Launched CIA Operation in Yemen That Collapsed
As pieced together by numerous
sources, both in and out of the gov-
ernment, the Yemenis became
U.S. national security priority on
Feb. 23, 1979, when South Yemen
made an unsuccessful three-
pronged attack against North
Yemen in an effort to seize airstrips
and roads in a bid to overthrow the
government. Almost immediately,
Carter notified Congress that he
would ship $390 million in planes,
tanks and other arms to North
Yemen.
About the same time, Carter
signed an intelligence order, known
as a "finding," secretly calling for a
study of possible operations against
South Yemen. Brzezinski pushed for
a covert mission in part because he
felt the United States had been too
passive in responding to Cuban ac-
tivities in 1977 and 1978 in Zaire
and Somalia.
Although then-CIA Director
Stansfield Turner approved thp op-
eration, he pronounced it "hare-
brained." But others in the agency
were more enthusiastic, and wanted
to bind the CIA closer to Saudi in-
telligence with a joint operation.
Furthermore, as one source put it,
some senior officials in the Carter
White House held "almost a 'comity
of nations' view that our allies, par-
ticularly the conservative ones that
distrusted and were suspicious of
Carter, needed a joint operation to
prove we would be tough."
Because Vice President Walter
F. Mondale, while a U.S. senator,
had been a member of the Church
committee that investigated CIA
excesses in the 1970s, Mondale
was widely viewed as anti-CIA and
Brzezinski believed "it's important
for the CIA to see Fritz Mondale
take a stand for some sort of para-
military action," according to
sources.
Mondale evidently agreed, be-
cause he not only supported the
covert operation and military ship-
ments to North Yemen, but also at
By Bob Woodward
poq Staff Writer
'ank C. Carlucci, who was appointed Tues-
day as President Reagan's new national secu-
rity adviser in the midst of controversy over
White House covert operations gone awry,
once supervised one of the Central Intelligence
Agency's unpublicized failures in the Third
World, according to informed sources.
In 1979, as deputy CIA director, Carlucci
was urged by President Jimmy Carter's na-
tional security adviser, Zbigniew .Brzezinski,
to set up a top secret CIA paramilitary effOrt
against South Yernen, a Marxist nation on the
Arabian peninsula that was threatening to
topple neighboring, pro-Western North
Yemen, the sources said.
Working with British and Saudi Arabian in-
telligence agents, Carlucci set the operation in
motion to harass South Yemen and thwart any
expansionist ambitions. But the plan ended in
disaster about a year into the Reagan admin-
istration, after Carlucci had become deputy
secretary of defense, when a CIA-trained team,
of about a dozen Yemenis was captured trying
to blow up a bridge in South Yemen. Under
torture, team members betrayed their CIA
sponsors before they were executed, which
ended the operation in 1982, sources said.
The episode provided Carlucci with a first-
hand understanding of the hazards of secret
undertakings, according to sources who
worked with Carlucci at the time. Conse-
quently, the sources said, the new national
security adviser supports covert operations
hut is aware of the potential for disastrous
consequences.
Carlucci had no comment yesterday.
The South Yemen operation, according to a
number of sources familiar with it, is a case
study of CIA covert action and its relation to
the political agenda of senior White House
officials, in this instance, national security
adviser Brzezinski.
In the wake of the furor over National Se-,
curity Council officials secretly selling arms
to Iran and diverting the profits to aid the
contra rebels fighting the government of Nic-
aragua, five senior sources directly involved
in the South Yemen affair said the case has a
special meaning in retrospect. As one point during a White House
one of the sources put it, "There meeting pounded the table and de-
were unrealistic grand strategic dared, "We've got to get aid into
goals that the White House thought North Yemen."
could be accomplished through a Carter signed a second secret
covert action. And they were trying finding, authorizing the operation.
to fix a lot of things; many, too
Partly because of Turner's skepti-
many, that had, 1r Nelease Ar? t e MP 401R000100120001-6
riciAiBgvai 0 -owith MVO
South Yemen." """ '
time with negotiations over the
SALT II strategic arms limitation
treaty, "Brzezinski wanted Carlucci
to run it. . . . Brzezinski structured
it so he could get Carlucci to do it,"
one source said.
And so Carlucci traveled over-
seas to begin setting up the oper-
ation. In an effort to maintain se-
curity, Carlucci and his assistants
from the CIA directorate of oper-
ations attempted to decree that the
30 Yemenis trained for the oper-
ation were not to know that the
agency was behind the effort.
But once the training began,
sources said the Yemenis apparent-
ly were told in an effort to give the
operation credibility by reassuring
the operatives that the United
States was supporting it.
After the preparations, one team
of Yemenis was secretly sent into
South Yemen. But the operation
ended tragically with capture and
confession. A second team that had
been "inserted" into South Yemen
for a similar paramilitary operation
was withdrawn and the operation
was ended.
In late March 1982, prosecutors
in the South Yemen capital of Aden
demanded the death penalty for 13
Yemenis on trial for alleged involve-
ment in a sabotage conspiracy.
Eleven members of the group, the
prosecution alleged, had been
trained by the CIA in neighboring
Saudi Arabia with the intent of pav-
ing the way for "reactionary and
imperialist military intervention" in
South Yemen.
Three weeks later, the govern-
ment in Aden announced that all 13
members of the "gang of subver-
sion" had pleaded guilty to smug-
gling explosives to blow up oil in-
stallations and other targets.
Three had been sentenced to 15-
year prison terms, the government
added, and 10 had been executed.
Staff researcher Barbara Feinman.
contributed to this report.
ARTiCLEAD?""s'
ON PAG;
For Release 2006R105E%-ff)1110t0gR1R000100120001-6
4 December 1986
THE IRAN AFFAIR
Managua accuses Carlucci
of Third World subversion
By Oswaldo Bonilla
United Press International
MANAGUA, Nicaragua ? The rul-
ing Sandinista Front yesterday criti-
cized President Reagan's new na-
tional security adviser, saying Frank
Carlucci has been involved in "dirty
work and coup attempts in the Third
World."
Carlucci, 56, was named Tuesday to
the post after Vice Adm. John M.
Poindexter resigned in the contro-
versy over the channeling of the
proceeds of U.S.-Iranian arms deals to
U.S.-backed Nicaraguan rebels.
farlucci "appears to have been in-
Kolved in attempted Central Intern-
ence Agencyassassinations of
Third World politicalea ers during
the '60s." said Ramon Meneses, a
Spokesman for the Marxist-led Sandi-
alta Front.
"He has been a specialist in dirty
work and coup attempts in the Third
World," Meneses told reporters.
The Sandinista National Liberation
Front official said that Carlucci was
involved in the 1961 slaying of for-
mer Belgian Congo Premier Patrice ,
Lumumba.
"Carlucci planned [Lumumba's) as-
sassination under orders from Presi-
dent Eisenhower," Meneses said.
Meneses also said Carlucci "was
tied to the overthrow of Brazilian
President Joao Goulart and the es-
tablishment of the military dictator-
ship in that country in 1964."
Carlucci, Reagan's fifth national
Security adviser, once served as a
,deputy CIA director and later was a
deputy defense secretary at the start
of the Reagan administration.
Meneses warned that Carlucci
"would be a faithful defender of
President Reagan's policies," adding:
"The National Security Council has
been responsible for directing the
covert actions against Nicaragua."
Reagan, determined to stop what
he sees as the expansion of leftist
subversion in Central America, has
been a staunch supporter of the
10,000 to 12,000 rebels fighting Presi-
dent Daniel Ortega's government.
.The insurgents, known as contras,
tave received m_ore than $100 mil-
lion in CIA funding since 1981, and
Congress recently approved an addi-
tional $100 million in weapons and"
miler aid to them.
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World News Tonight
December 2, 1986 6:30 p.m.
Admiral Stansfield Turner
PETER JENNINGS: And now, the President's choice to be
his next National Security Advisor. We emphasize "the
next" because it hasn't been a job with great security
in the Reagan Administration.
Frank Carlucci will be the fifth man to hold the job
since Mfr. Reagan became President.
What sort of a man is he? Here's ABC's Bob Zelnick.
BOB ZELNICK: Frank Carlucci, described by former
colleagues as a tough man who makes things work was
also a cautious man in his first encounter tonight with
the press.
FRANK CARLUCCI (National Security Advisor Designate):
I worked for the President before. I have great
admiration for his leadership, and I look forward to
being of assistance to him and conducting a vigorous
foreign policy. And until I'm in the job it would not
be appropriate for me to make any comments.
ZELNICK: Carlucci has served as Caspar Weinberger's
deputy in three departments, including Defense.
He was Deputy CIA Director in the Carter Administration
under Stansfield Turner.
Page 1 TransNledia
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STANSFIELD TURNER: I found that he was a supporter of
covert activity, but he also was a man who recognized
when covert activity was not appropriate.
ZELNICK: Carlucci was on station in the Congo in the
early 1960s when the pro-Soviet Patrice Lamumba lost
his war and his life to U.S.-backed factions.
As Ambassador to Portugal in the mid-1970s, Carlucci
supported left of Senate Democratic factions against
the extremes of left and right.
Page 2 TransMedia
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CBS Evening News
December 2, 1986
Admiral Stansfield Turner
DAN RATHER: Who is Frank Carlucci, the new National
Security Advisor? Washington knows him as enormously
experienced, a Republican, but not an ideological
zealot. The worst anybody seems to have to say about
him is that he could turn out to be an insider who is
too inside.
Fifty-six years old, Carlucci's last job in government
was second in command at the Defense Department.
Before that he was second at the CIA.
He has worked closely with many named in the arms
scandal, a fact sure to raise new questions. His early
years were as a career foreign service officer, first
in the Congo where he was stabbed protecting colleagues
from a mob. Later, Ambassador to Portugal.
Well known on Capitol Hill; he served Presidents
Reagan, Carter, Ford and Nixon, always coming out
clean, reputation intact. His chief mentor and close
friend; Secretary of Defense Weinberger. His fans;
just about everybody.
STANSFIELD TURNER: He's a man of exceptional integri-
ty and that's very much needed to restore credibility
in the White House at this time.
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RATHER: And Carlucci has a reputation for getting
things done. One Democrat described him today as a
kind of bureaucratic Lee Iacocca.
The naming of Carlucci today and other moves by
President Reagan quieted some criticism from Congress,
but by no means all of it.
Page 2 TransNIedia
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STAT
Approved For Release 20MAI
WASHINGTON
6 August 1986
01-6
President Reagan Wednesday announced the appointment of Frank Carlucci, who
has served in several top government posts, to be a member of the General
Advisory Committee of the Arms Control and Disarmaent Agency.
Upon confirmation by the Senate, Carlucci, 55, will be designated the
committee chairman, Reagan said.
Carlucci, chief executive officer of Sears World Trade Inc., succeeds William
Robert Graham on the committee.
Among his other posts, he served as deputy defense secretary under President
Reagan and deputy CIA director under Reagan and President Jimmy Carter.
Since 1956, Carlucci served in a number of Foreign Service posts around the
world, including South Africa, Congo and Brazil. He returned to Washington in
1969 to become assistant director for operations in the Office of Economic
Opportunity and in 1970 became its director.
In 1971, he became associate director of the Office of Management and Budget
under President Richard Nixon. He became OMB's deputy director in 1972. Between
1972 and 1974 he was undersecretary of the Health, Education and Welfare
Department. Between 1975 and 1978 he was ambassador to Portugal.
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ART CIA APPEAR WASHINGTON POST
ON PAGE, 16 July 1985
0100120001-6
STAT
THE FEDERAL REPORT
Reagan Names 14 to Panel
On Defense Management
By David Hoffman
Washiniaton Pate Staff Writer
President Reagan yesterday
named 14 industrialists, retired mil-
itary officers, former Pentagon of-
ficials and Republicans with close
White House ties to his new Com-
mission on Defense Management.
The panel, chaired by former
deputy defense secretary David
Packard, now chairman of Hewlett-
Packard, was set up by the admin-
istration in response to charges of
mismanagement and waste in Pen-
tagon procurement programs.
Democrats on Capitol Hill have
charged that the panel was created
to deflect criticism of Pentagon pro-
ove4ment-scandals in recent years.
Reagan signed an executive or-
,?creating the panel yesterday at
esda Naval Hospital.
The appointments are:
? Ernest Arbuckle, dean emeritus
of Stanford University's Graduate?
School of Business.
? Gen. Robert H. Barrow, former
commandant of the Marine Corps.
to Former Republican senator Nich-
olas F. Brady (NJ.), currently
chairman, Dillon Read & Co. Inc.
is Louis Wellington Cabot, chair-
man, Cabot Corp., and chairman of
the Federal Reserve Bank of Bos-
ton in the 1970s.
? Frank C. Carlucci, chairman and
chief executive, Seers World Trade
Inc., and deputy defense secretary
from 1981 to 1982. -
si William P. Clark, deputy secre-
tary of state and, later, national se-
curity affairs adviser and interior.
secretary in Reagan's first term.
He is counsel to the law firm Rog-
ers and Wells..
? Gen. Paul F. Gorman, who head-
ed the U.S. Southern Command,
covering Central and South Amer-
ica. Gorman is now vice president,
Burdeshaw and Associates.
? Carla Anderson Hills, former sec-
retary of Housing and Urban De-
velopment in the Ford administra-
tion. She is now a partner in La-
tham, Watkins and frills.
? Adm. James Holloway, a former
chief of naval operations, who head-
ed a Carter administration commis-
sion on counterterrorism. He is now
president of the Council of Amer-
ican Flagship Operators.
? William J. Perry, a former Pen-
tagon executive, now managing di-
rector of Hambrecht and Quist.
? Charles J. Pilliad Jr., a former
chief executive of Goodyear Tire
and Rubber Co.
? Gen. Brent Scowcroft, national
security adviser to President Ger-
ald R. Ford and chairman of the
Commission on Strategic Forces
during Reagan's first term. Scow-
croft is now vice chairman of Kiss-
inger Associates Inc.
? Herbert Stein, former chairman
of the Council of Economic Advisers
and now senior fellow, American
Enterprise Institute.
? R. James Woolsey, former Pen-
tagon and National Security Council
analyst, who also served as under-
secretary of the Navy and an advis-
er to U.S. arms talks delegations.
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? 4
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WASHINGTONIAN
April 1986
FILE ONLY
IS ANYONE HERE A REAL
There Are Few Clear Rules to Managing
Government Because Government Has
Few Clear Goals. The City Has Had Its
Share of Pathfinders, Problem-Solvers,
and Implementers?Plus Some 'Types
the Books Don't
Mention. Here's
How Our Best
Managers Have
Done It.
BY JAMES R.GLASSMAN
America has become fascinated
with CEOs, with Lotus 1-2-3,
with corporate culture. We've
come to believe that a good
manager can do practically
anything--just look at Lee Ia-
cocca. So it's time to ask this question:
Could good management solve the prob-
lems of government? Could superior
managers resolve the deficit, sharpen ef-
ficiency, improve bureaucratic morale?
If so, just what sort of people should we
get to do the solving?
The make-up of a good government
manager has always been a mystery.
Cabinet members and agency directors
come from business, from academic
life, from think tanks, from Congress,
and from the bureaucracy itself. No one
source is a consistent producer of suc-
cesses or failures..Consider some recent
successes:
? Drew Lewis, Secretary of Transpor-
tation in the first Reagan administration,
is usually paired with Donald Regan,
when he was at Treasury, as one of the
two best Cabinet Secretaries of the '80s.
Lewis came from business, where he
hopped from company to company in
construction, wire, tile, railroads, per-
sonnel, and consulting.
? Donald Regan came from a different
kind of corporate environment (Wall
Street) and stuck with one employer
MANAGER?
was a Harvard Business School dropout.
He got his big break when Donald
kumsfeld discovered him laboring for
his thirteenth year in the State Depart-
ment vineyards.
aitii-m?sfeld, considered one of the two
or three top government managers of the
past twenty years, became director of the
Office of Economic Opportunity straight
from Congress (even though legislators
are known, with some justice, as the
worst managers in town).
? George Shultz, who may be the most
successful Secretary of State since Dean
Acheson, spent 22 years in faculty and
administrative positions at MIT and the
University of Chicago.
? William Ruckelshaus, called back
by Reagan in 1983 to save the Environ-
mental Protection Agency (of which he
had been the first administrator), spent
his formative years as a lawyer and state-
government functionary in Indiana.
And look at the failures: Robert
Finch, a Californian who served briefly
and disappointingly as Nixon's Secre-
tary of Health, Education, and Welfare,
had a state-government background sim-
ilar to that of Ruckelshaus. Michael Blu-
menthal, generally considered a bust as
Secretary of the Treasury under Carter,
looked like a cross between Lewis and
Shultz: He was a Princeton PhD who had
been president of Bendix. Margaret
Heckler, a disaster as Health and Human
Services Secretary, came from Congress
like Don Rumsfeld. And poor Paul Car-
lin, publicly humiliated when he was
fired as postmaster general in January
after twelve months on the job, had been
a career bureaucrat like Frank Carlucci.
"As far as I can tell," says Herbert
Kaufman, a former senior fellow at the
Brookings Institution who has spent his
(Merrill Lynch) for 35 years. career studying public and private bu-
? Frank Carlucci, who has served reaucracies, "there is no way to predict
with distinction in eight federal Aggacie_s. success in government. . . . The record
(0E0, HEW, OMB,App CIA DOD. etc.).? is just terribly01/30 mixed." 'rovso-r-or-Kelease 2006/ : CIA-RDP91-00901R0001 OU1 -6
To thrive as a government manager,
he says, "you exercise a different set of
skills" from those that produce success
in the private sector, Some businesspeo-
ple have them, some academics have
them. What are they? What works in
managing government?
What Is All This Mystique
About Management?
Ten or fifteen years ago, few people here
knew or cared who ran the city's largest
companies. But today Thomas Pownall
(of Martin Marietta), William McGow-
an (MCI), Israel Cohen (Giant Food),
Sheldon Fantle (Peoples Drug), and
Katharine Graham (Washington Post
Company) are celebrities of a sort. We
want to know how they became so sue-
cessful, so we can learn to do it, too.
The phenomenon isn't new. In the
1920s, America fell in love with tycoon-.
ery and the art of management. In one
typical issue of Time magazine in 1927,
the "People" section carried items
about seventeen individuals in the news,
twelve were businessmen. Henry Luce
wrote in his prospectus for Fortune in
1929. "Our best men are in business."
In 1926, Erwin H. Schell published The
Technique of Executive Control, filled
With management homilies like "Don't
vacillate. A poor plan persevered in is
better than a good one shifted while
being performed." The Depression and
World War II tended to dampen the
Country's enthusiasm for captains of in-
dustry, but they made a comeback in the
1950s, with the stock market booming.
The idea of perfectability was taking
hold: If only we could learn how to
manage better, we could solve any prob-
lem, economic or political. "Manage-.
rnent is now where the medical profes-.
sion was when it decided that working in
a drugstore was not sufficient training to
oved For-Re leysemikti it-RDP91-00901
UNIFATHEIt
William Michels-
haus was the- first
litimiaistrator-of the
Bevitonmentat Pro-
tection Agency.
Whoa the EPA fell
' Mangum under
AIM Burford, the
President called him back to apply the
vision only a founding father has.
THE MANAGER AS
IMPLEMENTER
Prank Carlucci,
veteran of eight top
jobs under four Pres-
idents, was above all
a manager who got
things done. Before
moving on to the pri-
vate sector, he was a
master at overcoming bureaucratic met*
tia and moving the troops.
Alborg,
410011St
kft the ninatamccess-
Sleeretsig Steel
DitattAcheson.
Relleuexpe-
rielered bureaucratic
100111110K? ?Ont We.
&DU wholleautialt but persistent.
State, the styksemosto work.
-WORMER AS
EPEIT
Wilbur Cohen, de-
spite his Short tenure
(l51641-69), was one
of the beat Sect.-
Mined HEW ever,
foram simple r
sow Replayed akar
role in formulating 6
all major social legislation that the
wide-ranging deparunent administers.
become a doctor," said Lawrence A.
Appley of the American Management
Association in 1959. Implicit in this
statement is the idea that managers are
like doctors; they're professionals who
need only master a certain body of scien-
tific information and have the analytical
tools to cure business diseases.
But in the '60s, America began to
realize that some problems?such as
Vietnam?may be intractable, no matter
how good the managers. Not even the
best and the brightest?including Robert
McNamara of Ford and his Whiz Kids?
could get us out of the mire.
Today management is making a
comeback. In the '70s. the country he-
gan running into new problems, also ap-
parently intractable?problems of reces-
sion and inflation. American business
was failing, it seemed; the solution was
to manage corporations better, to
produce our way out of the crisis.
We looked hard at the success of the
Japanese. William Ouchi's Theory Z and
Richard Pascale and Anthony Athos's
The Art of Japanese Management be-
came best sellers in 1981, introducing
Americans to such concepts as quality
circles and job enrichment.
The next year, Thomas J. Peters and
Robert H. Waterman Jr. published In
Search of Excellence, which told us that
lots of American companies were per-
Approved
forming very well: "They've been
doing it right for years. We have simply
not paid enough attention to their exam-
ple. [We don't] have to look all the way
to Japan for models with which to attack
the corporate malaise that has us in its
vice-like grip."
Soon the media began catching on.
Lee Iacocca saved Chrysler and became
a hero. We became enamored of corpo-
rate raiders like Boone Pickens, arbitra-
geurs like Ivan Boesky, and investment
geniuses like Warren Buffett. The cult of
the CEO blossomed, and with it the pop-
pulist idea that we can all be great man-
agers?Everyman a CEO, to paraphrase
Huey Long.
Books appeared telling us that if we
followed seven simple steps, we could
manage anything, and make a fortune.
Robert Heller's The Supermanagers
(1984), a good example, presents read-
ers with Ten Pillars of Leadership:
"Trust is a two-way process," "Total
emphasis has to be pi.wed on perfor-
mance," "Temper discipline with hu-
manity," etc.
The ultimate in this genre is The One
Minute Manager, by Kenneth Blan-
chard, PhD, and Spencer Johnson, MD,
a 1982 book of 111 pages, huge type,
copious margins, and a $15 price tag.
We learn that "people who feel good
about themselves produce good re-
sults. Here we are, back to Schell's
homilies of 60 years ago.
Most writing about management is
Id Regan, at
reasury, was one of
two best Cabinet
Secretaries of the
''S03, leading by the
sheer force of his
personality. But
strong leadership
isn't necessarily the talent needed in his,
role as White House chief of staff.
THE MANAGER AS
PATHFINDER
Caspar Weinber-
ger has only a hand-
ful of goals at the
Pentagon?first
among them, in-
creasing the budr,',
,..et4ancl he purstree-
-regatta
atkiet the mosrparranccessfully.Ey
'tbstaleasure, he's maketteellent manager.
like that?simplistic and manipulative,
usually filled with pop psychology and
sometimes with sentimentality. (The
best of the pop-management books is
Mark H. McCormack's What They
Don't Teach You at Harvard Business
School, 1984.)
But what's important is not what these
books say; it's the healthy fascination
with management that these books rep-
resent. -Managerial" in the '60s was
almost an obscene word. Today it has
positive connotations. Americans once
again believe that we can manage our
destiny and, more important, that indi-
viduals?managers, leaders, CEOs?
can make a difference.
What Makes Good Managers?
In his new book, Corporate Pathfinders,
Harold J. Leavitt, director of the execu-
tive program at Stanford's Graduate
School of Business, says that good man-
agement requires three skills. He calls
them pathfinding, problem-solving, and
implementing.
Anyone who has worked in a large
organization knows that most managers
are good at one or, at most, two of the
three. One manager might be a good
conceptualizer, a person who under-
stands the business, knows how it fits
into the economy, sees where it should
be going, what its mission should be.
Another might be a good decision-mak-
er, a manager who knows how to gather
information, size up options, and make
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Approved For Release 2006/01/30 : CIA-RDP91-00901R000100120001-6
George Shultz,
was an academic
who became a suc-
cessful,nianager. A
--believer that scien-
tists should fit gov-
'raiment service into
their careers, he brought an evangelical
?Airvor to his job as FDA chief.
THE MANAGER AS
.WONDER BOY
'Donald Rumsfeid
was -plucked by
Richard Nixon from
the most unlikely
breeding ground for
good managers, the
Congress. He be-
:came a big success at
at NATO, at the Pentagon, and
today at the G.D. Searle Company.
pit. Heta?
public '
makes kis paha by putting on terrific
shows in the schoolrooms Of the nation.
THE MANAGER AS
FIRST FRIEND
Charles Wick is an
excellent bureau-
cratic entrepir-neu
who's managed to
double the USIA's
budget. He's been
helped by Reagan's
ideological affinity
for the agency's mission. And being the
President's pal hasn't hurt a bit.
lamed as
Reagan" first Secre-
ary Xransporta-
a rata find
for government. He 16
is a triple *teat as a
manager: a brilliant pathfinder, prob-
1em4Olver, and implementer.
TIE AS
DECISSYMUIER
Simon, for-
Wall Street
trader, became
one ofWashington's
,:best managers by
43ain his sharp skills
as a decision-maker
-while serving as
Treasury Secretary. Being a shrewd ma-
nipulator of the press helped, too.
the right choice. A third manager might
excel at getting things done, at motivat-
ing people, at putting ideas into action.
Most managers are best at the skill
that most business schools emphasize?
problem-solving. As Leavitt writes,
"Managing means taking hold of com-
plex, messy, ill-defined problems and
converting them into organized, syste-
matized forms. Managers have to make
rational decisions about products, peo-
ple, and markets; they have to allocate
scarce resources sensibly."
Fine. Problem-solving is important.
But its glorification, to the exlusion of
other important tasks, has become the
bane of good management. A Fortune
article in 1955 exemplifies a point of
view that has prevailed for decades:
"The business executive is by profes-
sion a decision-maker. Uncertainty is his
opponent. Overcoming it is his mission.
Whether the outcome is a consequence
of luck or of wisdom, the moment of
decision is without doubt the most crea-
tive and critical event in the life of the
executive."
Problem-solving is a skill that trans-
lates very well from business to govern-
ment. A manager in the private sector
who is adept at gathering information,
analyzing it, and making decisions is
usually able to do the same things well in
the public sector. The information is dif-
ferent, but the process is the same.
That's the opitgii of Drew Lewis
who this month wygorrstranreas
Amex Cable to become chairman of the
board of Union Pacific. "The major dif-
ference between public- and private-sec-
tor management is not in the approach to
problems," Lewis says. He adds, how-
ever, that public-sector problem-solving
is frequently more difficult. Your deci-
sions have to please a wider constituen-
cy. Instead of a corporate board of direc-
tors of eight or ten, says Lewis, gov-
ernment managers have 535 representa-
tives and senators, the White House, and
often the press to please.
In general, decision-making is the
strong suit of American business. And
good private-sector decision-makers are
usually good public-sector decision-
makers. The problems lie in the other
components of management: pathfind-
ing and implementing.
The Crucial Role of Pathfinders
In Search of Excellence emphasizes that
smart analysis isn't enough. A company
has to create an environment in which
people can do their best work. To help
create that environment, a manager has
to have a clear vision and share it with
employees. "Pathfinding," as Leavitt
writes, "is about getting the right ques-
tions rather than the right answers. It is
about making problems rather than solv-
ing them. It is not about figuring out the
best way to get there from here, nor even
about making sure that we get there. It is
ihrAW Tait AR RoStariMie
If you have ever worked for an organi-
zation in which the CEO lacked vision?
or lacked the skill to communicate that
vision?you know the problem. It's eas-
ier to work for a highly demanding boss
with vision than for a laissez-faire boss
without it. Worst of all is a demanding
boss without vision.
In business today, the manager with
vision is a rare bird. Vision, or pathfind-
ing, is a quality that entrepreneurs often
have?though they're not always able to
pass it down the line. In mature organi-
zations, Peters and Waterman believe,
the vision comes from a culture that per-
meates the corporation, "rich tapestries
of anecdote, myth, and fairy tale." In
many cases, the culture was established
by the founding entrepreneur and lives
on, as at IBM, where people tell stories
about Thomas J. Watson, although they
have never met the man.
Are there pathfinders in the public
sector? Yes, but they tend to be different
from those in the private sector. The
translation process doesn't work well,
for two reasons:
? In government, the person who pro-
vides the ultimate vision is the President.
Lewis says that being the head of a feder-
al department is not like being CEO but
like being a COO. The President is the
chief executive officer; the Secretary is
chief operating officer.
The President is the pathfinder. Ron-
en Wattenberg of the
se Institute, "is a
ra
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istration. Last October, the National
Academy of Public Administration is-
sued a prescient report titled "NASA:
The Vision and the Reality," warning
that budget constraints and competition
from the Pentagon have changed
NASA's mission and may be crippling
the agency:
"When NASA was the pre-eminent
US presence in space, it represented the
American response to the threat of Sovi-
et dominance. Today responsibility for
preventing that dominance has shifted
largely to the military space program. In
the process of making this shift, the na-
tion risks the loss of a national asset of
incalculable value?the vision that in-
spired the great accomplishments of
NASA in the past."
Can a single strong leader restore
NASA's sense of mission? It won't be
easy. In the private sector, the CEO as
pathfinder sets the course, but in the
public sector he's not alone: The Presi-
dent, Congress, and competing agencies
like the Pentagon all play roles. It's in-
teresting to note that when the Environ-
mental Protection Agency began to fall
apart during the Anne Burford scandal in
1983, President Reagan called on the
original EPA pathfinder, the founding
father Ruckleshaus, to restore the agen-
cy's sense of mission. With the Chal-
lenger tragedy fresh and NASA essen-
tially leaderless and demoralized.
Reagan asked James C. Fletcher to come
back as administrator. Fletcher ran
NASA from 1971 to 1977; he was the
agency's second great entrepreneurial
manager?the first was James Webb--
and the father of the shuttle program. If
anyone can reinvigorate NASA, Fletch-
er can.
leader. He gives a sense of direction.
Carter tried to be a GS-100."
? Many federal bureaucrats do their
own pathfinding?often at odds with
their managers. Frank Carlucci recalls
giving an order to a GS-15 at the Office
of Economic Opportunity. The GS-15
wouldn't carry ,it out: "He said, 'I don't
work for you. I work for the poor. ' "
A private-sector manager who is para-
chuted into a federal agency with
100,000 employees sharing their own
vision, the result of a bureaucratic cul-
ture that has silted up over the years, has
quite a problem.
Still, there are things a good manager
can do. The best ones keep focused on
the big picture. When I asked Carlucci,
currently chairman of the board of Sears
World Trade, about success in govern-
ment management, he talked immediate-
ly about providing a sense of mission.
How? By quickly setting goals. Carlucci
had praise for Dr. Otis Bowen, the new
Secretary of Health and Human Ser-
vices, who recently introduced a propos-
al to provide government health insur-
ance for catastrophic illnesses. Even if
the plan has no chance of passing, says
Carlucci, it reminds HHS employees of
their ultimate mission?it's the right
kind of pathfinding gesture.
One of the reasons for Caspar Wein-
berger's success at the Pentagon, says a
former associate, is that he came into the
job with a small number of closely de-
Approved
fined objectives?the most important
being to increase the Defense Depart-
ment's budget.
Peter Drucker, the best of the man-
agement gurus, wrote in 1977 that the
first step toward making government
more effective is to require clear, specif-
ic goals for every agency and for every
program and project within an agency.
Says Drew Lewis: "Neil Goldschmidt
[previous Transportation Secretary] told
me when I came to Washington, 'Don't
look in your in-box. You should fill oth-
er people's in-boxes.' "
But goal-setting in government is not
easy. "It's hard to order your priorities
in the public sector," says Maryl C.
Levine, a management expert who
worked in the Carter and Reagan admin-
istrations and now heads Levine Asso-
ciates, a consulting firm that works with
corporate executives. "In the private
sector, goals are much more definable."
She's right. Elusive objectives and
political obstacles frustrate corporate
CEOs who come to Washington, blithe-
ly expecting to have a good time, make a
mark, and ride home in glory. It was
obvious to Drew Lewis, for instance,
that the way to get Amtrak closer to
profitability?a clear goal for the De-
partment of Transportation?was to
eliminate service to small towns in states
such as West Virginia. "Then," he
says, "Iran into Bob Byrd."
It's often hard to make goals tangible
in government. You're not producing
anything, you don't have competition,
and you aren't out for profit. In busi-
ness, a company's goals may be to turn
out stereo speakers that are of high quali-
ty (say, with only one set defective of
500 produced), to increase market share
to 22 percent, and to make profit mar-
gins of 11 percent. In government, ob-
jectives aren't as clear, and success is
harder to measure.
Agencies and departments that are re-
garded as the best-run are often ones that
do have clear-cut missions. Despite fre-
quent criticism, the Defense Department
is on most lists of best-managed govern-
ment agencies (including the list of the
peripatetic Carlucci), while Labor,
Commerce, and Education, whose man-
dates are less clear, are often considered
poorly managed. Departments that are
subject to political interference?that are
pushed and pulled in different directions
depending on who is in the White House
and on congressional committees?often
develop management problems.
An interesting case study in the
importance of vision and mission is the
National Aeronautics and Space Admin-
+ ?
You Say You Want to Implement
in Washington?
Richard Neustadt's Presidential Power,
though first published 26 years ago, may
be the best book on management eve:r
written. My favorite passage:
'In the early summer of 1952, before
the heat of the campaign, President Tru-
man used to contemplate the problems of
the General-become-President should
Eisenhower win the forthcoming elec-
tion. 'He'll sit here,' Truman would re-
mark (tapping his desk for emphasis),
and he'll say, Do this! Do that! And
nothing will happen. Poor Ike?it won't.
be a bit like the Army. He'll find it very
frustrating.'
"Eisenhower evidently found it so.
. . . 'The President still feels,' an Eisen-
hower aide remarked to me in 1958,
'that when he's decided something, that
ought to be the end of it. . . and when it
bounces back undone or done wrong, he
tends to react with shocked surprise.'"
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Approved For Releaslia160/Vic3c0ealtilyellpstl-rOs0901
is implementing?that is, getting things
done, or, more accurately, getting peo- and Some Rules
pie to do things, because managers can't To succeed in government, a manager
do everything themselves. Truman ac- has to be strong in pathfinding, decision-
curately predicted that Eisenhower, as making, and implementing. But as
CEO of the government, would have a we've seen, pathfinding and implement-
harder time implementing his programs ing are extremely difficult in the federal
than he did as CEO of the Army. Corpo- bureaucracy. "The impediments in the
rate CEOs who come to Washington run public sector are so great," says Maryl
into the same problem. Levine, "that when public-sector man-
Drew Lewis: "When you're the man- agers emerge as stars, they must have
ager of a large company, people practi- done something exceptional."
cally kiss your feet. Guys who run these Let's look at some of these stars and
companies feel so powerful. Sometimes how they have overcome bureaucratic
the problem is to stop people from doing obstacles:
things for you. In business, you may be ? Donald Regan. A survey in US
thinking out loud and say, 'I wonder if News & World Report during the first
year of the Reagan administration rated
him first in the Cabinet in effectiveness
and competence. (Lewis was second,
Weinberger third, Haig fourth.) Regan
is a brilliant leader, who manages by the
force of his personality. Leaders, as op-
posed to managers, tend to be skilled in
pathfinding and implementing. But un-
less they are as powerful as Regan, they
are often chewed up?by pressure from
the President above and from the bu-
reaucracy below. In charge of a depart-
we should do so and so.' And the next ment like Treasury, where he had inde-
thing you know, it gets done." pendence, Regan could thrive as a
In government, life doesn't work that manager. But now, as chief of staff in the
way. White House, his skill as a pathfinder
"The leader here is up against an en- doesn't come into play. "He's a ribbon
trenched federal bureaucracy looking clerk to the President," says a former
out for its own interests," says Maryl White House staffer.
Levine. "That's very different from the Rule 1: Powerful leaders, as opposed
private sector, where keeping your job to managers, can thrive in the public
depends on whether you hop to." sector?if they're in the right job.
Truman wrote in his memoirs that ca- ? Wilbur Cohen. Being Secretary of
reer government officials "regard them- HEW, or HHS, may be the toughest job
selves as the men who really make poli- in government. The department coin-
cy and run the government. They look prises too many disparate offices and
upon the elected officials as just tempo- programs, some of which are redundant,
rary occupants." Of course, they're some at cross purposes. "We had fifteen
right. A study by the National Academy different programs for the mentally re-
of Public Administration found that the tarded alone," says Carlucci. "Some-
average presidential appointee spends times twelve to fifteen caseworkers were
less than two years in his or her job?and working with one family."
more than one-third of appointees spend As Lyndon Johnson's last HEW Sec-
less than a year and a half. So it's easy retary, Cohen, in the view of many ob-
for members of the permanent govern- servers, was one of the best government
ment to wait them out. managers ever. His great advantage was
In addition, the government manager that he knew the department intimately.
lacks one of the best tools in the corpo- He came to Washington as a New Dealer
rate manager's kit: fear. It's difficult to and played a key role in formulating
fire people or transfer people in the fed- every piece of social legislation from the
eral bureaucracy. Carlucci: "I would original Social Security Act of 1935 to
often just say, 'Oh, Christ. This guy's no the Medicare Act of 1965.
good. But it's not worth it trying to move Rule 2: Knowing your agency?espe-
him. ' " Bureaucrats have weapons of cially as an insider?is a big asset. But
their own, which they can direct at the the White House rarely considers such
manager?leaks to the press, phone calls knowledge a requirement for the job.
to long-time contacts within congres- ? Donald Kennedy. As commissioner
sional committees. of the Food and Drug Administration,
Whether that's good or bad for the Kennedy was one of the few Carter-
country, it tends to demoralize once- administration appointees who deserve
powerful corporate chiefs, who are used to be in the government-management
to running their ow
Drew Lewis: "When you're
the manager of a large
company, people practically
kiss your feet. "Government
doesn't work that way.
)110)9Pbved For ReleatkA &OM 'Nen 431AaRDP92146901
R000100120001-6
an expert in neurophysiology who taught
at Syracuse and Stanford. (He's now
Stanford's president.) In 1977 he took
over what the New York Times called
"the federal government's most criti-
cized, demoralized, and fractionalized
agency." He rebuilt morale and won
respect for his stands in the controver-
sies over banning Laetrile and saccharin.
When he stepped down in 1979, the
Times called him "the FDA's best com-
missioner in a longtime."
Kennedy believed passionately in the
FDA's mission?and believed that sci-
entists should fit government service
into their careers. The FDA, said Ken-
nedy, was exactly the sort of place you
should go if you want to put your money
where your mouth is. David Packard--
co-founder of Hewlett-Packard, deputy
secretary of Defense from 1969 to 1971,
and recently head of a presidential com-
mission on Pentagon management?also
fits this model.
Rule 3: You gotta believe. The "you
can manage anything" idea, a staple of
MBA programs, doesn't work in gov-
ernment. Crusaders often make good
managers.
? Charles Wick. A Hollywood impre-
sario, lawyer, and investor, Wick at first
appeared unsuited for Washington, a
town that demands serious mien. Wick
got into trouble with the press and with
other government officials for such in-
discretions as taping his phone conversa-
tions. But under him, the United States
Information Agency has thrived; its
budget went from $497 million in 1982
to $974 million in 1986. By the tradition-
al standard of bureaucratic success?
growth?Wick has been a winner. Why?
Partly because President Reagan is a
strong believer in the USIA's mission
and partly because Wick is the Presi-
dent's close friend?a job requisite most
managers lack.
Rule 4: Being the President's friend
can solve many management problems.
? William Simon. A bond trader with
an undistinguished academic career, Si-
mon was an unlikely candidate for suc-
cess as a public-sector manager. George
Shultz, then Secretary of the Treasury,
was impressed by Simon's reputation as
a quick, smart decision-maker and hired
him out of Salomon Brothers as his dep-
uty in 1972. Simon had a spectacular
career in the government, then made a
fortune with his conglomerate Wesray.
Rule 5: Don't underestimate the bril-
liant decision-maker. If you're as
shrewd, fast, and smart as Bill Simon,
good decision-making is all you need.
In the case of Bill Simon, I'd add
another rule. . . .
Rule 6: Good press relations are vital
to public-sector success. What the press
R081tPf 61:PP2titcdf topparent candor), wit,
6-
and tisponsiveness. A corollary: Simon men, vit fr
like Ralph NaderiPkftlailtieTCROtb eartea4 rniffetitt,g og
anything changed in government, you managers can be very effective. In an era
must repeat your message over and over, of shrinking government, it's harder.
hundreds of times. Through the press,
Simon dunned the country, preaching
conservative economics before it was
fashionable.
Donald Kennedy and Drew Lewis
were also adept at dealing with the press,
as are Regan, James Baker, and Secre-
tary of Education William Bennett to-
day. Shultz and Weinberger, on the oth-
er hand, do pretty well without intimate
press relations.
Can Good Managers Really Make
a Difference Here?
We're now back to our original ques-
tion: Even if we can identify good man-
agers, will they do any good?
First, it's important to understand that
the best managers can end up as failures
when their policies?or the President's
policies that they're implementing?are
wrong. A good example is Robert Mc-
Namara. By the usual management stan-
dards, he was one of the best Cabinet
Secretaries in history: the best of the best
and the brightest. McNamara's problem
was that he was wrong about Vietnam.
And all the good management in the
world can't overcome bad policy.
But back to the main point: Can good
managers solve such problems as the
federal deficit, the lack of government
efficiency, and the decline in morale?
Certainly, they can help boost morale.
But morale is affected more by the Presi-
dent's attitude toward government than
it is by a department head.
More important are questions of ef-
fiency and the basic structural problem
of the public sector. Douglas M. Mc-
Cabe, an associate professor at George-
town University's School of Business
Administration, describes the dilemma
this way:
In the private sector, an enterprise
survives by means of success in the mar-
ketplace. Consumers decide whether a
company is producing the right goods at
the right price. If not, the business firm
cannot survive." The public sector, on
the other hand, "is not dependent on the
satisfaction of consumers. Governments
can escape performance requirements
because no externally imposed pressure
exists to be better providers of services
or to produce more with fewer dollars or
less people."
Today the biggest challenge facing
government is cutting costs and improv-
ing efficiency. So the successful manag-
er may be the one who puts himself out
of a job. That's a lot to ask. At any rate,
the pressure for what Drucker calls "or-
ganized abandonment" has to come
from the President, not from the depart-
Attracting Good Managers
"Get a sheet of paper and draw a bell-
shaped curve," Maryl Levine tells me.
"Now, the curve starts rising, and it hits
its peak in 1963, Kennedy's last year as
President. Then it starts going down
again."
The graph we're charting represents
the quality of presidential appointees, of
top government managers. Today, by
some estimates, we're hitting bottom.
"The quality is definitely going down
The biggest challenge today
is cutting costs, so the
successful government
manager may be the one who
puts himself out of a job.
now," says Carlucci. That judgment is
confirmed by a report last November by
the National Academy of Public Admin-
istration titled "Leadership in Jeopardy:
The Fraying of the Presidential Appoint-
ments System." That report states:
"The tradition of Cincinatus, of citi-
zen leaders willing to leave their private
pursuits to serve the nation, has always
been a valued part of the American ap-
proach to self-government. . . . [But] for
those who admire the in-and-outer ap-
proach to leadership selection, these are
troubling times. It is now very clear that
recent American Presidents have been
less successful than their predecessors in
either attracting the highest-qualified
Americans into public service or in pro-
viding the hospitable and supportive en-
vironment necessary to utilize effective-
ly the talents of non-career executives."
It wasn't always this way. Go back to
the peak of Levine's bell curve, the Ken-
nedy administration. Daniel Fenn,
JFK's personnel assistant, today com-
plains that Kennedy's inaugural address
encouraged too many good businesspeo-
ple to enter government: "I wish to hell
he'd never said that 'Ask not' business
because everybody came in and said,
'I'm ready to go. ' "
Today, even if we identify the quali-
ties that private-sector managers need to
succeed in the public sector, it's hard to
attract them to government. Why? Some
of the problems are of long standing:
Low pay. The purchasing power of
Executive Level II salaries declined by
39 percent from 1969 to 1985.
Senate confirmation. It's become an
iltt4citggiii6es nasty process,
Johnson administration, it took
elidffi
the
average of seven weeks from the ti
the President made his final decision
a candidate to his or her Senate confi
mation. In the Reagan administration,
takes twice as long.
financial (and other) disclosure. T
much information is required; manage
are embarrassed by having their priva
lives spread out in public. Frederic
Malek, a Marriott executive who w
Nixon's top recruiter, says that "there
a great preponderance of qualifie
Americans who really don't want to co
sider serving [in government] because
the 'guilty until proven innocent' au
tude that seems to prevail in the pre
and on the Hill. They've seen what s
many people have gone through and s
many people have had their souls bared
They just don't want to subject them
selves to all that."
Unproductive hours. Norman R. Au
gustine, executive vice president o
Martin Marietta, estimates in his ne
book Augustine 's Laws that over the pas
twenty years, Secretaries of Defens
have spent one-fourth of their time testi
fying in Congress or preparing that testi
mony. He was led to promulgate "Au
gustine's Law of Oratorical Engineer
ing," thus: "The more time you spen
talking about what you have been doing
the less time you have to do what yo
have been talking about."
More important than all of these prob
lems is the lack of personal satisfactio
for hard work. And it is hard work. Th
"Leadership in Jeopardy" research
found that 77 percent of appointees in
the Reagan administration work 6
hours or more per week. In return fo
this time, what does the governmen
manager receive?
"There's a growing inability to ac-
complish your goals," says Carlucci.
'You have so many over-the-shoulder
watchers?the GAO, CBO, 20,000 con-
gressional staff people."
And the "Ask not" spirit is gone.
'Government isn't the high calling that
t was for a long time," says Arnie Mil-
er, who was President Carter's person-
el assistant. "When you get politicians
nocking government all the time, it
oesn't help, either."
"People want to come into govern-
erit ?17iti?aTi inspirins mission, says
_arlucci. "But what's success in the bu-
cailiFffiFO-Ti of
a?t1,Jraud, and abuse? That's hardly
fl inspiring mission."
In fact, what's surprising is not that so
ew good corporate managers come to
ashington, but that so many do. Why?
"The highs are higher in public life
an the highs in the private sector,"
ays Drew Lewis. Higher, but fewer.
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rt7Tr!.7 r."P-7.1T,En
WASHINGTON POST
27 April 1985
LETTERS TO THE E
Lowenstein Dab
Myra MacPliersm's article I"Al
Lowenstein's TangIrd Legacy," Style,
March 4] about try book on Allard ?
Lowenstein, "The ?ied Piper," omits
significant facts.
Using Mr. Lovenstein's Selective
Seniice records, vhich I obtained via
the Freedom of Information Act, I
show that he lied ;bout his draft status
to Newsday reyorter Ed Hershey
when he told hin he had to fight his ,
way into the arrry in 1956 because of
bad eyes. In fact, according to his Se-
lective Service records, he passed his.
physical and wn -declared 1-A while
the Korean War was going on.
Mr. Lowenstein received an occupa-
tional defermer,t which he was presi- ?
?dent Of the National ; Student Associa-
tion. It has been documented in Ram-
parts magazine that NSA officers who
knew of the CIA/NSA lit* routinely re- ?
ceived occupational] deferments to :
avoid combat and then student defer- ?
ments for graduate school. Mr, Lowen-
stein also received a Student deferment ?
to go to law school ater his term as
president of NSA from 1950 to 1951.
In 1979, while traveling in South
Africa, Mr. Lowenstein reported to -
Frank Carlucci, then deputy director of :
the CIA. Mr. Lowenstein was paid
.$7,000 for this expedition through the:
Anglo-American Corp, of South Africa.
- Frank Carlucci acknowledges :that Mr. ?
Lowenstein aided him M installing Mario ,
, Soares as prime minister of Portugal to
I stop the communists' while Carlucci was ?
ambassador to Portugal.
, Through confidential State Depart-
ment cables I obtained through the ?
Freedom of Information Act, I docu-
ment that Mr. Lowenstein offered :
money to Spanish !student groups to
keep them liberal as .opposed to com-
munist. At various times, Mr. Lowen-
' stein offered money to anti-commu- '
I fist, ? anti-apartheid groups in South
Africa and money to various African
national liberation groups.
I told Miss MacPherson that one of
my sources is a former U.S. Army in-
telligence officer. I must respect confi-
dentiality. The Pest often relies on
I confidential sources, but I? relied on
I vast documentation that Miss Mac-
Pherson does not mention.
? ? RICHARD CUMMINGS
; Bridgehampton, N.Y.
? -
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ARTICLE APPEARED WALL STREE1 JOURNAL
ON PAGE3roved ForEfelftpete6/06?0141824: CIA-RDP91-00901R000'
Sears Nominates
Carlucci as Chief
Of World Trade Unit
Other Top Posts Go to Moran,
Flummerfelt; Moves Set
is Consumer Products Focus
By STEVE WEINER
Staff Reporter Of THE WALL STREET JOURNAL
CHICAGO?Sears, Roebuck & Co. desig-
nated new top leadership for its world trade
unit, underscoring a return to a focus on
consumer merchandise for the troubled en-
terprise.
Frank C. Carlucc.i, president of. Sears
World Trade Inc. since 1982, was nominated
as chairman and chief executive officer of
the unit, which attempts to serve as a mid-
dleman on international transactions,
matching buyers and sellers for a variety of
goods and services. The unit also has pro-
vided consulting services, geared toward
helping companies and countries enter or
strengthen their performance in world
trade.
Mr. Carlucci a former denuty_sgultaty
of defense and former denutv diagar of_the
autallataigeace.. ,
Agency, was among
the first executives
hired by Roderick
M. Hills, Sears
World Trade's for-
Mei Chairman.
? Mr. gills, who
had aggressively ex-
panded the unit's
scope, was deposed
in April and re-
placed'on an interim
basis by Richard M. Jones, who has contin-
ued as vice chairman and chief financial of-
ficer of the parent.
Buttressing Mr. Carlucci, whose office
Frank Carlucci
will remain in Washington, D.C., will be two
longtime Sears executives whose careers
have concentrated on merchandise. Nomi-
nated as president and chief operating offi-
cer was Charles F. Moran, vice president,
corporate planning, since 1982, who has an
extensive background in operations and
store management.
Named president and chief operating offi-
cer of the unit's general trading group was
J. Kent Flummerfelt, a buyer who since 1982
has been a national merchandise manager
responsible for procuring cooking appliances
for Sears' merchandise group.
Both men will work primarily out of Chi-
cago. The company didn't name successors
to either officer.
Sears's board is expected to confirm the
appointments Oct. 2, the company said. The
changes will occur after the confirmations.
Focus 'Reaffirmed'
A spokesman said yesterday that the
focus of the unit has been "reaffirmed" as
trading in consumer products, with plans to
expand into light industrial and processed
food products. Instead of using an in-house
trade finance capability, as had been
planned by Mr. Hills, Sears World Trade
will "be using outside sources," the spokes-
woman said.
Sears wouldn't allow any of the execu-
tives to comment. In a written statement,
Edward R. Telling, chairman and chief ex-
ecutive officer of the world's largest re-
tailer, said the appointments give Sears
World Trade operating, merchandising and
administrative strengths "essential for long
term success in the rapidly expanding
arena" of world-wide product trade.
"It' is our intention that Sears World
Trade initially focus its efforts on develop-
ment of a strong general trading company,"
Mr. Telling's statement said.
World-wide Trading Concern
The unit was originally envisioned by Mr.
Telling as a world-wide consumer products
trading concern using Sears and other
sources of merchandise while taking advan-
tage of contacts developed by the company's
buying offices. But Mr. Hills, with senior
management's consent, tried to build a
qTAT
00120001-6
broad-based trading and service organiza-
tion in which consumer products would have
played only a part.
Both the organization, top-heavy with
Washington and government insiders but
short on traders, and the strategy eventually
were questioned by Mr. Telling. Relatively
little trading has been accomplished, and
the unit hasn't made money. In the first
half, it had losses of $10.1 million on revenue
of $73.8 million.
The company laid off about 150 people
last month, many of them executives hired
by Mr. Hills. It wouldn't discuss its new
strategic plan.
The unit had been rumored last month to
be investigating three London-based com-
modity concerns as potential acquisitions,
but there are indications those efforts have
stalled.
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STAT
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ARTME ATM? ?771711 WASHINGTON POST
ON PAU V 20 September 1984
120001-6
Carlucci to Take Over at Sears World Trade
Carluect Named
Chairman of
Sears Trade Unit
? By Caroline E. Mayer
Washington Post Staff Writer
Sears, Roebuck & Co., reaffirm-
ing a directional shift for its inter-
? national trading subsidiary, yester-
day named Frank C. Carlucci to be
chairman and chief ekecutive of the
? Washington-based Sears World
Trade Inc.
Carlucci, who has been the trad-
ing company's president and chief
operating officer since 1982, will
take over the-post held until recent-
ly by Roderick M. Hills.
, Sears Roebuck Chairman Edward
? R. Telling told Washington Post
reporters and editors earlier this
week that a practice of "posturizing
. and building expectations be-
? yond all reason" at Sears World
, Trade led the parent company to
shake up management at the sub-
, sidiary.
Carlucci is expected to bring the
subsidiary back in line with the
company's original expectations,
Sears officials said yesterday.
Telling said it was never his in-
tention to make the Sears unit
America's answer to the Japanese
trading companies known for their
mastery of the intricacies of inter-
national world trade. Hills, on the
other hand, had said he wanted the
subsidiary not only to export and
, import goods but also to arrange for ,
the development and manufacturing
of goods, particularly, in the Far ,
East. In an interview with The
Washington Post last spring, Hills
- said his goal was to have Sears
World Trade contribute between 10
and 20 percent, to the parent corn-
. pany's $50 billion annual sales.
However, Telling made it clear
that he envisions a more limited role
for the 2-year-old subsidiary.
, "We never intended to be a Jap-
anese trading company," Telling
said in a lunch with Post reporters
?and editors earlier this week. Rath-
er, Telling said, with Carlucci's ap-
pointment, the company will return
to "where we started. It's a general
trading company" that will be a dis-
tributor of consumer goods, includ-
ing light industrial products such as
electric drills and processed food.
"Forget Asia, the Pacific Basin,
all these exotic parts of the world," '
, Telling said. "There's a tremendous
amount of food imports into this
country. . . . We don't know anyone
who has a better distribution sys-
tem than we do."
Telling said he hoped Sears
would find foreign sources for its
suppliers. "We have a source struc-
ture at Sears.. . that no one has."
Noting that the largest general
trader in the world does only $2
billion of business, Telling said
Sears is a long way from that level
Of business. "If it takes 10 to 15
years to be a meaningful player,
then we will be patient.'
Without ever mentioning Hills'
name, Telling discussed why he be-
lieved it was necessary to replace
the former chairman of the Sec-
'rides and Exchange Commission.
"For a period of time, for whatever
reason, someone was stating goals
or possibilities that would make one
blink. The phone would ring Eat
Sears headquarters in Chicago] the
next day, but 'it had already been
made in The Washington Post."
Trade officials who have dealt
with both Hills and Carlucci said
Carlucci will make, a better team
player. "Hills was a flamboyant idea
man trying to create a new world in
trade," one official said. "Carlucci's
history and career, on the other
hand, makes it clear he is an excel-
lent team player."
Carlucci was deputy secretary of
Defense in 1981 and2.2.82i&atz
director .of the Central Intelligence
Agency between 1978 and 1981;
jdortoPojji
from 1974 to 1978.
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5Xik
Approved For Release 2006/01/30 : CIA-Ru2v91-0u901
ARTICLE
ON FAMILAitl..4j__
Jody Powell
WASHINGTON POST
8 July 1983
R000100120001-6
Then There Was the Disinformation
Three years ago, an active campaign of
disinformation?using forged intelligence ?
documents and operatives inside the govern-
ment?was conducted to deceive journalists
and to embarrass President Carter.
There is no 'evidence that such activities
were instigated or condoned by anyone in the
Reagan campaign. But the fact that they are
known to have occurred is all the more reason
for the Justice Department- and the Congress
to get on with the job of investigating the many.
curious occurrences of tbe-1980 campaign. .
Although careful reporters were able to
spot and largely to foil two of the disinfor-
mation efforts, a third was a spectacularsuc-
cess, resulting in a series of columns by -lack
Anderson that appeared in hundreds of'
newspapers around the country.
In August 1980, Anderson says, he was
presented with documents showing that
President Carter had ordered an invasion of
Iran to take place in mid-October. This
"tentative invasion date" also was con-
firmed. according to Anderson, by someone
working with the National Security Council
in the Carter White House. According to the
columnist, his NSC source also said that the
reason for the president's order was "to save
himself from almost certain defeat in
November." From Aug. 18 through Aug. 22,
Anderson wrote and distributed five col-
umns.based on this information.
In fact. no such orders ever were issued
and the idea of launching a second rescue
mission never was seriously considered or
discussed. Although a contingency plan was
prepared as a matter of course, conditions
never arose that were even remotely consis-
tent with its use.
?
If, as Anderson claims, he has documents
showing that such orders were. issued, those
documents were forgeries. If someone on the
NSC staff confirmed the authenticity of
these documents, much less. described the
president's motives for the nonexistent or-
ders, he was lying.
As the first Anderson columns about the
politically inspired invasion orders were ap-
pearing, Washington Post defense corre-
spondent George Wilson became the target
for the second disinformation effOrt. Wilson
was contacted by an anonymous source who
claimed to work for the CIA. For several -
weeks, this source tried to sell Wilson a vari-
ety of stories, all damaging to the Carter ad-
ministration, One described a CIA study,
supposedly . done - in connection with the
..April attempt to rescue- the hostages, that
had predicted the -effort would result in OD
percent casualties among the hostages.
Wilson was interested but insisted that he
needed something bore 'substantial before
he could write such a story. In tnid-Septem-
her,' he received through the mail what ap-
peered to be .the "something more" he had '
? requested: a copy of'. a CIA study, dated
-March ?16, 1980, entitled '"OPLAN EAGLE
CLAW Loss Estimate." The document
? stated that 20 percent of the hostages would
be killed or seriously wounded during the as-
sault on the embassy compound, another 25
percent during the effort to locate and iden-
tify the hostages and another 15 percent.
during their evacuation to the waiting heli-
copters.
That document was A forgery. in the
words of' former Deputy CIA Director Frank ?
Carlucci, the .man who supposedly ordered
the study, "I have been unable to find any-
thing in this alleged CIA document that is
either accurate or which approximates any
? memorandum we prepared." - ? -
Wilson was convinced by Carlucci's analy-
sis, which listed a series of specific flaws and
errors in the document, and wrote no story.
? The third and by far the most vicious por-
tion of the disinformation 'campaign was
launched on Capitol Hill in early September.
Allegations were spread by Republican Sen-
ate staffers that. David Aaron, deputy to Na-
tional Security Adviser Zhigniew Brzezinski,
had been responsible for the arrest and ex-
ecution of a valuable American spy in the
Soviet Union. The charges were proven to -be
false, but not. until after the election. In the
meantime, the staffers succeeded in provok-
ing a lull-scale investigation by the Senate
Intelligence committee and in leaking word
of'the.supposedly secret investigation, along
.with Aaron's name, to several news organi-
zations, including The New York Times.
On Sept. 21, the Times, convinced that
journalists were being used, blew the whistle
on the smear campaign. A week later, Cable
News Network senior correspondent Daniel
Schorr, writing in The New Republic, con- ;
eluded an in-depth analysis of the affair by
describing the attack on Aaron as ,"a classic
piece -of covert action jthatl left the deeird
taint of suspicion." .
?. Spreading the Aaron smear were mem-
bers of the Madison group, established, ac-
cording to columnist William Satire, to "em-
barrass, bedevil, and defeat" the Carter ad-
ministration. The group of ultraconservative
Senate stalcrnembers maintained a liaison
. with the Reagan Campaign. .
? Whether the mole (or moles) in the Carter
administration who allegedly provided na-
.: tional security documents to the Reagan
-campaign also.were guilty of providing mali-
cious and false information to the press will
not be known, of course, until all those. in-
volved are identified and questioned under
oath. STAT
1983, Dallas Times Herald
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V
1CLEAppEARE35pproved For Release 24:Mblellibive.0041?110A00901
ON PAGE_Z6_ SUMER 1983
Senator Barry Goldwater (R-Ariz..) is
chairman of the Senate Select Comrninee on
Intelligence.
R000100120001-6
Barry Gok
While upholddii the?prin-ciples
of democracy, congressional
oversight on U.S. intelligence
activities must be careful not to
endanger the work and
well-being of those whose very
responsibility is to ensure the
freedom and security of this
nation.
25X1A
25X1A
Congress and
Intelligence
Oversight
During the early 1970s, it appeared Con-
gress was going to hamstring the U.S. intel-
ligence services with its public investigations
of the alleged abuses within the intelligence
community. Today, six and a half years after
formation of the Senate Select Committee on
Intelligence and its counterpart on the House
side, I believe it is possible to say that the
intelligence community is recovering very
well.
The reason for this promising outlook is
that congressional oversight of our intelli-
gence agencies is working.
The committee that held the public inves-
tigation was given one cumbersome title, the
Senate Select Committee to Study Govern-
mental Operations with Respect to Intelli-
gence Activities. Chaired by former Senator
Frank Church of Idaho, the committees per-
formance was a sorry demonstration of the
way Congress deals with its problems. We
spent nearly 53 million and over 15 months
investigating the intelligence community,
with a peak staff of over 130 professionals,
consultants, and clerical personnel. 1 wish
we could try to do to the Soviet KGB what
we tried to do to ourselves.
Clark Clifford, that wise adviser to many
presidents over the years, lamented the
committee's efforts at the time and I agreed.
That committee was formed to determine
the extent of abuses mentioned in the Roc-
kefeller Commission Report, made upon the
request of President Ford. I endorsed the
Senate's decision because I felt it was neces-
sary to investigate any possible abuses of the
privacy of American citizens. After endors-
ing it, however, I refused to sign the two
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3
e
ilecE.t;IECAP proved For Release 16/Ci'lPgii :14dIA-MACIlltkitiC/010001 00120001 -6
pril 1963
SIAI
Of4 PAGE 6
Interview With Frank C. Carlucci, Former Federal Official
What's Really Wrong
With Government,
And Who's to Blame
InflexibIlity, distrust, too many
over-the-shoulder watchers?all prevent
bureaucrats from doing their Jobs efficiently,
says a long-time public servant.
? Mr. Carlucci, is it getting more difficult for the federal
government to get things done?
A Unquestionably?for reasons that spring from a grow-
ing distrust of government, the tendency of the legislative
branch to proliferate large staffs and get into administrative
issues, the inflexibility of the civil-service personnel system
and the proliferation of over-the-shoulder watchers. There
are far too many people telling
government what it shouldn't be
doing and not enough people en-
couraging government to accom-
plish its mission and helping it get
on with the job.
O. Are government managers just
not up to dealing with things these
days?
A It takes a lot longer and a lot
more effort to accomplish a given
mission now than it did when
I first entered the higher lev-
els of government, which was
about 1969. The civil-service
system just doesn't always al-
low you to advance the most
talented people or get rid of
the least talented. The turn-
over at the higher levels of
government is an enormous
problem. The average tenure of an assistant secretary in
one of our departments is somewhere in the neighborhood
of 21 months. That's just crazy.
There is a lack of emphasis on such things as executive
development and training as well as proper compensation
systems to reward and encourage employes. These pro-
grams tend to get caught up in the politics of running the
government. Also, government is very busy dealing with
daily crises and neglects long-range planning in these areas.
Q Do you think there are too many government workers?
A No, not necessarily. In proportion to the programs that
have been created, you have fewer government workers
today than you had 10 or 15 years ago. The problem is not
so much the number of workers but the inflexibility in
moving workers from one given task to another.
Many of the constraints imposed on government are
personnel-ceiling constraints?which make no sense. You
have the money and the mission, but you can't hire the
right people.
Q Are there too many incompetents in government?more
than in private industry?
A From my owArairlam@gekoehRelfeiVqAPV11144? cigt
people in govermEent is very high. What con-
cerns me is that those lead people?the on
who have the experience, come up with the
ideas and make the decisions?are now begin-
ning to leave in greater numbers as they real*
retirement age. I think we are starting to see a
real crisis of talent in the federal government.
Cl Why are they leaving? Money?
A That's a principal concern, yes. Nobody
comes into government expecting to becOntoe
wealthy, but they do expect to make a decent
living, yet are finding it difficult to buy a home or even
educate their children. I know that government salaries in
Washington sound large to many, but the cost of living ilk
this area is very high. Another problem is prospects for the
future.
What doyou mean by that?
A I mean promotions and prospects for getting public
support. Public servants are becoming very tired of the
drumbeat of criticism from both political parties. The bu-
reaucrat is always the scapegoat.
When you trace back some of the impediments to getting
things done by "the bureaucracy,- you find it often springs
from legislation or legislative history.
Q Why do college grmikaillm
want to work for the fedienal
Frank C. Carlucci, presi-
dent of Sears World Trade,
Inc., was deputy secretary
of defense, 1981-82. He
previously was deputy di-
rector of the CIA and U.S.
ambassador to Portugal.
1.M.FIREN K. LEVFLEA-USNAWR
government?
A Basically, for idealistic rea-
sons. They want to serve, dory
want to contribute and, at the
entry level, salaries are reason-
ably competitive. At the higher
clerical level they are also com-
petitive. It's when that peva=
reaches midlevel that he or she
encounters all the problems that I've just dis-
cussed. People in business are telling me that
they're picking up a lot of talented people out of
government.
Cl How can the government keep talented wortiarite
A With a mixture of compensation, incentives,
flexibility, political support and an examination of
the managerial problems in government.
Q Can Congress be sold on doing something oboist
the problems in the bureaucracy?
A Congress basically responds to public sentiment; it
mirrors the public view. Unfortunately, the federal person-
nel problem is not a very exciting issue, because somehow
government keeps going on, and it's too big and massive to
change. You'd really have to arouse public concern, but I'm
not optimistic that will be done.
a What can be done about firing incompetents?
A That is a problem. There have been instances whereI
have tried to either fire people or move them out, and I
have learned that the amount of effort you have to at
forth to do it just isn't worth it. It can easily be a year-kmg
process?very expensive in man-hours.
In theory, you can fire a government worker, but yea
have to document the record so carefully and there are so
many routes of appeal that it is terribly time-cormuntrq.
And then there are grievance mechanisms that can be vend
to frustrate this process.
a So what does an executive do in that case?
A You tend to look for ways to bypass the employe,
maybe a promotion to get him or her out of the way. This
ess the imbalance
Ya the responsibilities
Tt9
ii. 1I
? ?
Approved For Release 2006/01/30 : CIA-RDP91-00901R000100120001-6
of the manager. In my judgment, we've gone overboard in
protecting the individual employe and frustrating the man-
ager in accomplishing his mission. You should also be able
to provide greater incentives and rewards for the more
talented and more industrious employe.
Cl. You've mentioned over-the-shoulder watchers. Do you
think that the government should be permitted to keep certain
information secret?
A Yes, certainly. National-security information and intel-
ligence information, in particular, have to be kept secret. I
think people in government ought to be entitled to get
confidential advice from their staffs. I don't know how
many times in government I've heard the comment, "Well,
you better not put this in writing, because it's subject to the
Freedom of Information Act."
Cl What about information that goes out over the transom?
that is, leaks?
A I think it is a serious problem. Leaks can be extremely
damaging, principally because the leaker frequently doesn't
know the whole picture, doesn't know the damage that can
be done by the leak of national-security information.
Q Would you give lie-detector tests to find out where high-
level leaks are coming from?
A I do think the polygraph has a legitimate role in pro-
tecting national-security information. It has been used suc-
cessfully for a number of years by the CIA.
Cl Wouldn't this discourage people from blowing the whistle?
A I don't think so. We have gone to great lengths in
government now to set up channels where people can air
their grievances. People can go to their inspector generaL
There are confidential hot lines. There's the General Ac-
counting Office. There are congressional committees.
There are all kinds of ways that people can let their superi-
ors know about wrongdoing in government. One does not
automatically have to go to the press to insure that a waste-
ful practice is stopped.
0. Do you think control of government salaries should be
taken out of the hands of Congress?
A It ought to be divorced from the issue of congressional
salaries. We all thought that linking them together was a
good move back in the '60s, when congressional salaries
seemed to be going up.
In retrospect, it has quite clearly been a bad move, be-
cause if Congress is reluctant to raise salaries of its mem-
bers?particularly just prior to election years?other
government workers suffer unfairly.
0. Are regulation and red tape an impediment to good man-
agement and efficient government?
A Oh, certainly. But I don't favor the kind of solution that
says, "Create a commission to stop paper work." That seems
to me to be proliferating the problem. Right now there's
very little incentive for people to reduce paper work. I think
there's no question that we have overregulated government
and our society, and we need to simplify it. 0
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UNITED PRESS INTERNATIONAL
14 March 1983
CORAL GABLES, FL
FORMER DEFENSE OFFICIAL NOMINATED FOR WACHENHUT BOARD
0120001-6
SIAI
The former deputy secretary of defense in the Reagan administration has been
nominated as a member of the board of directors of the Wachenhut Corp., the fire
said Monday.
Frank C. Carlucci, who left the Pentagon at the end of 1982 to become the
president of the Sears World Trade Co., a subsidiary of Sears and Roebuck, will
stand for election to Wackenhut's board at the annual stockbroker's meeting.
Carlucci, who worked in government service for 26 years, also has served as
deputy director of the CIA and director of the Office for Economic
Opportunity.
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Approved For Release 2006/01/30 : CIA-RIDR91-00901R000100120001-6
I CLE A2.P.ZARE1)
..,.`41?RT
an ?AGE
Carl C CI?
NEW YORK TIMES
14. JANUARY 1983
2 PK1A
?
Thoughts on Governi-nent and Leaving It
. By Plitiala M. BOFFEY
S7.ect.1 =7"tit Nei, York TuDes
WASHINGTON, Jane 3? Frank C.
-Cniniticte ended a kaleidoscopic career
2.5
Government manager last week
este an ensaity feeling.
The cesality of people and programs
in Geveenmeet is headed for decline,
be cautions, if to officials continue to
and their theories liraited a.nd ? their
:saes iora circumscribe.ca by critics.
"lareies soon we're going to get the
cf Gee-eminent that the politi-
cissas like to saasait of when they kick
around the, career, bureaucrat," Mr.
Carlucci said in an interview as he left
Ins Sinai Government job, Deputy Sec-
retary of Defease, for a higher-paying
,-,sesitioz as president of a new export
tradthec. company being set up by
Sears. Roebuck L Company. He also
-
exacts to direct a study for the Herit-
see Foundation of structural prob-
lems in the Federal budget.
"There's an automatic assumption
that the. senior manager in Govern-
ment is aeries: always wrong," he
oded. "There may be some grounds
It': that. Maytes it's a Watergate lega-
cy. But let's not overreact. Let's
recognize .that the principal purpose of
Government is to accomplish a mis-
sion and lee's-have some kind of incen-
rwestoget people to accomplish that
rnissicrn."
R!atr- now, Me. Calucci believes, the
inceetisies are "fading, and I think
we're going to have a serious question
of qualirv in Government in the next
couple of Years,
Cut Staff in Brazil
The 52-Ye.ar-old Mr. Carlucci, habit-
ually terse in interviews, was speak-
ing neither in anger nor in self-justi-
fication. but rather in response to a
question about some of the most criti-
cal problems facing Government.. His
opinions grow out of an unusually
broad range of experience dealing
with such diverse issues as diploma-
'es, the military, intelligence, health
and welfare, poverty and budgets.
After bailing out of a brief and uss-
satisfying business career in 1956, Mr.
Carlucci became a Foreign Service
officer and served, among other posts,
in the Congo, where be rescued a
group of Amerirn ns from an angry
mob; in Zanzibar, where be was ex-
pelled for reputedly plotting to over-
throw the Government,
wbere he earned the
leagues by managing a cut in the size'
of the stall.
: r ? ;
?
In these tasks, and in a subsequent
tour as Ambassador to Portugal in the
mid-1970's, Mx. Carlucci earned
praise as a courageous and strong-
minded diplomat. In Portugal, for ex-
ample. he persuaded the White House
to support a leftist military govern-
ment despite strong opposition from
Secretary of State Henry A. Kissin-
gee
? In 1969, Mr. Carlucci was cata-
pulted from relative obscurity in the
Foreign Service to the first in a suc-
cession of top jobs in the Federal bu-
reaucracy. Donald Ru.msfeld, a for-
mer wrestling mate at. Princeton,
brought him to Washington to serve as
assistant director of the Office of Eco-
nomic Opportunity.
'An Ultimate Survivor'
Mr. Carlucci soon succeeded Mr.
Rumsfeld as head of that agency, and
later went on to serve as the second-
ranking official in some of the biggest
and most influential, agencies in
Washington ? the Office of Manage-
ment and Budget, the Department of
Health, Education and Welfare (now
Health and Human Services>, the Cen-
tral intelligence Agency, and, most
recently, the Defense Department. In
three of those jobs he served as the
sidekick to Caspar W. Weinberger,
now Secretary of Detease.
This
ce ha
cl')uhTtufocrarstccrirecyeninfigh,alerer obTathmaRlit RaPeen;*
Carlucci the label of "an ultimate sur-
vivor" whose career moved upward
under Republican arid Democratic
Presidents. He is considered a skilled
and tamer of the bureaucracy than an
originator of programs. Critics on the
lett have sometimes chastised ltim for
helping to trim social programs and -
boost the military budget, while crit-
ics ern tbes right blame him for re-
straining the C.I.A. Often he seems
simply to be carrying out the wishes of
the administration in power.
"To Washington insiders he is the
consummate No. 2 bureaucrat," said
a recent profile prepared under.Ralph
Nader's auspices, "honest, loyal and
strikingly efficient at managing the
day-to-day operations of sprawling
Federal agencies."
?
Sitlary Scales Criticized
But Mr. Carlucci laments that it is
Forfkiteastre2006/04a0dialAhROP91-00901R000100120001-6
manage effectively in the Federal
Government. For one thing, salary
scales are not high enon ,h' he says, to
in Government service are begumong
to get discouraged," he said. "Their
salaries have not gone up anywhere
near the rate of fanatioe." Govern-
merit, be said, was "still competitive
. at the professional entry levels but at
the senior levels it is not competitive
at all."
Carlucci, who was earning
$50,000 a year as Deputy Defense Sec-
retary, will receive a six-figure seine
at Sears as president of Sears World
Trade Inc., a Washington-based cor-
poration that will provide export serv-
ices for a range of companies. His
Government pension, be said, would
amount to about $30,000 a year under
the Foreign Service retirement plan.
Mr. Carlucci also said that it was
"becoming much more difficult to ac-
complish a mission in Government."
The chief reagon, he said, is that "we
put a premium on over-the-shoulder
watchers, whether they're Congres-
sional staffers, investigative report-
ers, the Freedom of Information Act,
White House supervisors, or more
. auditors, more inspectors ? all of
which are good things ? but we have
'to keep them in balance. We have to
put an equal premium on the guy who
accomplishes his mission, takes -a
risk, and we have to reward him com-
mensurate, with his achievement. We.
do not do that in Government." -
"You also find it impossible to disci-
pline people in Government or remove
nonproducers," he said. Every time
you try to do that, be said, the nonpres
ducer is championed as a whistle-
blower who is being harassed for
speaking against Government mis-
deeds. "Whistle-blowers have thau
place and we need to protect them."
Mr. Carlucci said. "But at the same
time people who are nonproducers
should not be allowed to adopt the pro-
tective color of a whistle-blower." ,
Nadoral Security Concern
However, Mr. Carlucci is blamed by
some Pentagon officials for sowing
distntst himself ? chiefly by pushing
for greater use of lie detectors to fer-
ret out those who disclose sensitive in-
formation to the press without high-
level approval.
,C:(.)11,7772VDT.-70
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NEW YORK TIMES
ARTICLE AFFZLETP 29 DEMMER 1982
CZ; PAGE___-,;:
0120001-6
STAT
BUSINESS PEOPLE
Top Pentagon Aide
Joining Sears Unit
Frank C. Carlucci, Deputy Defense
? Secretary, has joined Sears, Roebuck
& Company as president and chief op-
erating officer of its new trading unit,
? Sears World Trade Inc.
Mr. Carlucci, 52 years old, will le
working with Roderick M. Hills, 51, a
former chairman of the Securities and
Exchange Commission, who was
named chairman of Sears World
Trade in October.
'Mr. Hills said yesterday that Mr.
Carlucci had been hired because of his
International experience. The word
for the new trading company, Mr.
Hills said, is "ambitious."
- "I suppose the Japanese model of
the trading company comes most
easily to mind," Mr. Hills said in de-
scribing what Sears plans to do.
Mr. Carlucci will replace John F.
Waddle as president of the venture.
Mr. Waddle becomes managing direc-
tor of consumer products and serv-
ices. The company was formed early
this year, with plans to concentrate an
consumer products. In October, Mr.
Hills said, the decision was made to
expand the company to include finan-
cial services, food, industrial and
high-technology products.
Mr. Waddle will be based in Chi-
cago. Mr. Hills will divide his time be-
tween Washington and Chicago, and
Mr. Carlucci will work in Washington.
Mr. Carlucci graduated from
Princeton in 1952 and later attended
Harvard Business School. He joined
the State Department in 1958 and has
been in Government service since.
In the early days, he was posted to
the Congo, now Zaire, where he was
once stabbed by an angry mob. Be
also served in South Afrlca,Zanzlbar
and Brazil.
Sears World Trade Inc.
Associated Press
Frank C. Carlucci
On returning home, he became di-
rector of the Office of Economic Op-
portunity. He has also been deputy di-
rector of the Office of Management
and Budget and Under Secretary of
the Department of Health, Education
and Welfare.
From 1974 to 1978, he was Ambassa-
dor to Portugal. He then became
Deputy Director of Central Intelli-
gence until 1981, when he became the
No. 2man in the Defense Department.
Paul Thayer, chairman of the LTV
Corporation, has been -nominated_ to
replace him at the Pentagon. ?
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.0T I Mr,
ci
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WASHINGTON TIMES
8 DECEMBER 1982
01R000100120001-6
SIAI
Carlucci to join Hudson Institute
Deputy Defense Secretary Frank Carlucci, who
,has resigned, will join former Secretary of State
Alexander Haig as a senior fellow of the Hudson
Institute, a conservative, future-oriented think tank.
Pentagon spokesman Henry Catto told a questioner
.yesterday. The administration has nominated W Paul
!Thayer, chairman of ting-Tenico-Vought,?a Fort '
.Worth, Texas, defense contracting firm to replace
Carlucci, who will leave office when Thayer's
'appointment is confirmed by the Senate. Thayer
joined LTV as a test pilot after flying Vought Corsair
?fihters in World War II. ?,
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STAT
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ARTICLE .AP.?AEa
DEFENSE & FOREIGN AFFAIRS DAILY
ON PAGE f 6 JULY 1982
US: Carlucci To Move Soon?
A PERSISTENT RUMOR is running in the Pentagon to
the effect that Deputy Secretary of Defense Frank
Carlucci is about to leave the Defense Department.
According to speculation he is headed for higher
things across the Potomac in the White House,
maybe to take over as one of the "special
counsellors" in the current triumvirate of White
House Chief of Staff -James Baker, Counsellor Ed- ,
win Meese and Special Assistant Michael Deaver
? probably the latter ? when a vacancy arises.
Nobody in either the Pentagon or the White
House is commenting on the story. However, it is
understood Carlucci's style at the Pentagon has
found special favor in the White House. "He
would be just the guy to help the election effort in
1984," commented one observer. "There's an
organizational mess over there in terms of run-
ning the grass roots stuff for the Republicans. I
can see where he'd fit right in."
Navy Secretary John Lehman is slated to take
over from Carlucci, sources say, leaving a vital
gap in the management of the USN at a critical
time in its fortunes. But it is understood Robert J.
Murray, formerly Undersecretary of the Navy dur-
ing the Carter Administration, is to be invited
down from the Naval War College in Newport,
Rhode Island (where he is the senior civilian on
the faculty) to take over Lehman's job.
Although a Democrat, Murray's professionalism
was admired during his tenure at the Pentagon. III
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STAT
e#,4
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FOREIGN REPORT
JOLT 1982 _
DIA under fire
The American Defence Intelligence Agency (DIA) has come under fire from a senioe
Reagan administration official, Frank Carlucci, for providing inadequate informa:t
tion to decision-makers. Carlucci, deputy defence secretary, has quietly.taken steps to
reform the DIA: he is increasing its budget and has told it to give priority to.
improving the quality of intelligence analysis and the speed of its delivery.
The DIA is regarded as being highly efficient in its technical work, through spy-in-
the-sky satellites, monitoring of Soviet submarines and assessments of Soviet
armaments.. But administration officials like Carlucci have been grumping. abotit
poor intelligence over the Falklands crisis (the United gtates had no advance
indications that Argentina was going to invade) and the Israeli invasion'of Lebanon':
They are also worried that slow DIA information about Soviet military alerts Might' -
weaken any American responses.'
The officials say they want to know more about the way in which the newest lethal
weapons systems are being put to use (like the Exocet in the Falklands conflict and
Israeli electronic coUnter-ineasures protecting their aircraft in Lebanon). Defence
department planner & are also worried about the ?possible spread of terrorism' in
western countries wliere the United States has military installations---especial4i in.
Turkey. They also want more information on potential conflicts in third-world
nations which might involve the United States. .?..i;
' Carlucci is an intelligence expert: he was previously deputy director of thi Central
Intelligence Agency (CIA).
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44.,FF 7 JUNE 1982
!GE
00120001-6
WASHINGTON TALK
Briefing
Potential Shift at Defense -
persistent reports from the Penta-
gon have Frank C. Carlucci, the
Deputy Secretary of Defense,,
resigning to enter the investment
bang business in New York City.
The leading candidate to succeed him
Is said to be Thomas C. Reed, former
Sec,retary of the Air Force, who re-
cently ,re-entered government as a
:consultant to William P. Clark, the
White House national security advis-
Ailminlitration sources say Mr.
Reed has been partiCularly influential
In shaping recent Administration
decisions on deployment of the MX
missile and _integration of ? military,
economic and foreign policy. Mr.
Reed goes back a long way with Presi- ,
dent Reagan, having served as his ap-
pointments secretary when he was ?
Governor of California and helping to
manage his successful1970re-election
campaign there. ?
- - ? ?
Phil Gaiter
Warren Weaver Jr.
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25X1A
k
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I
ARTICLE AP.
ON PAGE
ITARILD
?
NEW YORK TIDES
26 APRIL 1982
25X1A
WASHINGTON TALK-.
? ,;?
Thiraingof Leaiin
eputy SecretDefense.
Frank C. Carioca, the key. day-
to?day? line-by-ltne manager of
the military budget, has been discuss-
ing the possibility of leaving Govern- '
'meat for a lucxative, .ranking post
with a New York bank: A knovriedge...:
able.. source indicated .that Mr., Car-
lucci had made the approach to the:7
private sector, although no decision to
mob as yet been reported. If it does
'come., the Reagan Administration.?;
-would suffer the Ices of another expert
deputy from the trenches, on the heels ???
of the resignation of Adm. Bobby
Inman as Deputy 'Director of Central '
Intelligence.
,
p???
Francis Xelines
LynitRosellini
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r,
ART %pp-TARED
ON
AVIATION WEEK & SPACE TECHNOLOGY
15 February 1982
-1. Washington
:
STAT
120001-6
Lifirkfp- .
Black Magic One of Washington's great tribal rites is the annual stag dinner of the military order
of the Carabao, whose members served in the Philippines up to 1946. The high point
is a series of skits written and acted by the members. Among the great and near-great
attending the shindig was Frank Carlucci, deputy secretary of Defense, who watched a
? phony admiral and general puzzling over how Cuba's Fidel Castro and Libya's
Muammar Qadhafi find out things. Said the general: "Everybody knows that. It's
those leaks." Enter a leaker, wired for sound, and when the admiral asks what he has
been through, the leaker sings, to the tune of "That Old Black Magic":
_
?
"That lie detector has me on its wires
That lie detector that Carlucci hires
Those cold electrodes they attach to me
The same old questions?that they ask of me
. Those nervous needles and that squiggly line -t
That tell the whole world if those leaks are mine
? Oh, up and down it goes, scribbling all it knows
'Bout those leaks to the New York Times.
. . ? '
"I could tell the truth: what good would that do?
I could confess! Well?more or less.
Each day I read theNashington Post
wonder-if I must give up the ghost.
"For every time I see a polygraph
I break into a little nervous laugh
And shake and squirm and'drip with sweat
Then I try to hold my breath, die a little death
In a jam?wishing that I could scram
Until that lie detector clears me."
?Washington Staff
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T C:r.:Ei nED
WALL STREET JOURNAL
ONP.A.C.Z_ZSI____ 3 February 1982
.Censorship's Deadly.
Blozv''to Stience, :- 2, .1 ?
Your editorial "High Tech Burglary"
; (Jan. 21) on' my exchange of letters. with
?Deputy Defense Secretary Carlucci con-
..-cerning Soviet access to U.S. scientific and
jechnical knowledge makes- it appear. that
, American scientists are-calm and. comfort-
able with'leaks'of high technology., -That Is,
,totally tinfalr.:Vevi-U.S;clentists disagree.
...4ith the need for-effectiire 'controls on, the:.
:.escape of gentiinely'Avealx4:4.:related
.i.technology:lriete-sclentists part company:
withthe military is
much dainaie:is? caused by- the. opei.,aild,
;?uncl ass.if led :? baitc.Stieritine literature,. set..
? -ehti fit sympOsia.and'ibletitific exchanges':
These proeeses'.are cruCiallo the:adz -
-?-?.
vanceinent of sCienee. and, hence. bY? defl-'
.nitiom to our ownitaticinal defense and 'se-
'Cprity: Even-gr: Carlucci; hr his reply to
?me, conceded "Ihi. importance ? 'Of 'unint-
.01rell* scientific.:-.-?conimuniCationS':.to'the.
. mutual benefit of parties caneerned r.aP
thouglrlie7ditl'itheretreat' froth the intern=
.perate langvage'of the pentagon. With: the
.
echoing the PentagOn's. lineand
Mandl that -scientists' blear their.unclaiS.?'
-tified?:researchIplanS,..with the'intelligence
.agertaes, thelssue. is Clear-eut:CenSorship ?
would indeed a,'-deadly blow at.
Arneri-darf sclen60,-gd-"outyiatIonisl'Inter
ests
Mt. Cathie-et'. FeSponie. passed lightly
'over this !S.-cue:preferring to dwell bit ex-
amples ? of Soviet infiltratiorr Of -the- agree-
--:,ments 'for ; scientific .exchanges.. He 'ne-
:.,glected to' say that the U.S.- -government -
:strictly enforced?the:test. of "equivalency".
:in those- a'greernentS' and struck- quickly to
terminate.'" those. '.iritere?*.the 'Soviets .
peared to.be 'getting inorthati. they gave.'
aicess. to 'Soviee. institutes?prd-
V.ded our ' si4e4itti'an .Impottaitt 'line- or
? , .
sight-Into the . qualiti and the potential of
Soviet science and technology. is ?
:.:Information well worthhaving.-'*
? . ? . WivaD. Cangr,
'-Washington. ?`. -Publisher 'Science ?
STAT
000100120001-6
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1.17 " CLE APPEARED
ON PAGE
1
1But Inquiry Fails td Deterrpine
Who GaveirifOrmatiotp'"*n':
Spending.Othe Pres
By RICHARD HALLOiAN
Special ta The NevitYolialtwag
WASHINGTON, Jan. 23 The De-
fense Department has given lie-detector
tests to about 25 senior officials in ari un-
succLesful effort to find the source of an
unauthorized disclosure of confidential
? Information, according to Pentagon offi-
cials. ? - ?
The-lie-detector, or polygraph;t?
were begun by Deputy Secretary ot De-
fense Frank C. Carlucci, who took the
first one himself. They were given to
Under Secretaries Fred C. ? Ikle and
Richard D. I)elauer; Secretary of the
Navy John F. Lehman and'ether mili-
? tary service secretaries; the Chairman
of the Joint Chiefs of Staff, Gen, David
C. Jones; other four-star generals and
admirals, and several Assistant Secre-
taries of Defense and their aid es. -; t ?
TAKE -L..1...:?.11ESTS,
AS PENTAGON SEEKS
DISCLOSUR..SOURC
Figure Based on Wish 1
The tests and other Inqu1r1eshow-
'ever, have not Uncovered the official or
officials who gave the press ?account
of a policy debate in a higheleirel ineefe
Ing at the Pentagon earlier this 'Month.'
'rOfficially, ? the: investigation Continues,
. but Pentagon officials said they hadlit4
tie hope of discovering the source of the
information.e ,,,e4,4?Teee
. At a raieiing eof the Defense Re-
-sources Board on Jan. 7, according to
'Government Oficial% Mre :Delauer ase
serted that the United States would have
to spend up to $750 billion more than the
? $1,500 billion planned by the ReiginAd-
ministration to reach its objective: of
fully rearming the United States.
Secretary of Defense Caspar W. Wein-
berger said later that the $750 billion fig-
ures had been compiled trometwish
lists" submitted-by the trilliterijerve
Ices: He saidtheAdministrationiWnuld
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NEW YORK TIMES
24 JANUARY 1982
25X1A
stay on the military spending course set 1"hemorrhage" of information, as Presi-
over the past year. ? I dent Reagan has asserted, one official
o
He also said that the investigation of said: "Well, maybe hemorrhage is to
!
the disclosure had caused a "very dis-
strong a word. Let's call it a steady
I drip."
In the President's directive setting
out his intention to stop disclosures, the
key phrase was the "unauthorized dis-
closure of classified information." Pen-
tagon officials acknowledged, at least
privately, that authorized disclosures
were still permitted. ? - ,
An example of that was the Pentagon
publication of the booklet "Soviet Mill-
'.ta.steful, very unhappy situation but
'defended it as necessary in the effort to
discipsetres1-:Other officials have
been ?reluctaidin discuss the Issue ex-
cept anonymously: e
After the news reports appeared two
weeks ago, Mr. Carlucci volunteered to
takea lie-detector test and asked others
'who had attended ehe meetinato do_the.
same. One official said Mr. Celine-6.i "IS [ta wer
ry Po," a 99-page.' assessment,,
steeped in the ways" of the CentralIn_t omplete with pictures and charts, of
!the grovrth of the Soviet armed forces. It
telligence Agency, :of whi wasch. he was published after a struggle betweene
deputy director in the Carter Adm Mr. -Weinberger viandbthe intelligence
tration. "Taking polygraphs-over there wanted stedovitoo?
is like having breakfast," he said. - informationeln Ite.goleirt t
community. Mr.
The: lie-detector. tests, officials said; Unien to help build a consensus for in...4
have raised thereluestionsAtithin the: creased military spending. Iritelligince
;P?entr.ijon:;" 1: . officers balked at releasing classified
' gilow effective-are lie detectorS and information. ,
' other investigative .methods in finding -..Tee result was a eempe;ierfSe in Weide:
'the source of a disclosure? If the person previously classified information . was
'who -made the disclosure cannot, be made public, some ofit in exact form,
found, hove good are:.-other security some in slightly altered form, In an ef-
measures within the Pentagon?: fort to deceive the Soviet Union as to
qlWill the use or lie detectorS firelieS: precisely what American intelligence
tion the principal civilian advisers of the 'MOWS- ,
Secretary of Defense' and the .nation's ? The booklet contained, for instance,
? senior military officers cause an erosion previously secret pictures of the new
of trust among them, or do unauthorized Alfa submarine, the world's fastest, and
disclosures of information from suppos- of a Backfire bomber that officials sag-
edly free-flowing and confidential dis- gested had been taken from a satellite.
cussions do more to erode that sense of An artist's rendering of 'the Typhoon
trust? -
? submarine, the world's largest, was
? intow serious Is the leakage of infor- doctored slightly, as was an artist's ren-
matIon from the Pentagon and have any elering of an SS-20 missile being fired.
of the-disclosures done real damage to
national sectuitY? The various grades of
classified information are based on the
amount of potential damage to national
security -
lEOn e first cliTestlore, ac-
knowledged that the lie detectors had
limited value. Others shrugged off the
-Reagan Administration's campaign to
stop such disclosures. "Leaks- are- the
name of the game around, here," said
one official, asserting that there were no
more than in previous administrations-. -?
-On the second issue, Pentagon offi-
cials said no one had declined Mr. Car-
lucci's request- to take the lie-detector
teste'They, argued further that disclo-
sures stemming: from confidential dis-
cussions would do more :to erode trust-
'than the lie-detector tests,'. despite the
implication that the word of the officials
could itot betaken at face value: ? -
As for the third Issue, top officials in
the Pentagon have declined to specify
;damage done to national ? security.
fAs_lteclewhether there really had leeen,a
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NEW YORK TIDES
20 JANUARY 1982
ARTICLEFAD
,FRE
ON PAGE
Reagan Defeds
- By HOWELL RAINES
? speciaie-reeeeetecreete -
' VTASHINGTON, Jan. 19 ? President
Reagan today defended the use of poly-
graph test; and restrictions on inter.;
views to cut off the flow of news on
? tive subjects, saying he was only contin-
uing the policies of. previews adminisere7
,' Mr. Reagan'said:he approved ,these
mea.sures ta combat what he calledl",a
new high hereof the leaks" of sensitive
information on -fOreign.policy and na-
tional sectirity..`e x ,r
? "What.we are doing. here is sirriply.
abiding by. the existing law," he said at
his Levis conference.. 1t is against the
law to e- for those Who are not author-
to decia'ssity,76srelease classified
int? rrnatiere.7.?
_. But even .aselie President. defended .
_the practicesr:- protests . were being
: mounted both inside and outside his Ad-.
iniaist:ration over both the ethics and the
legal foundations of the policies.. ,
`A Command Perforniancee .
Althoogh Reagan.said polygraph;
or lie-cletecter, tests were being -admin.
istere:d.to some Pentagon employees on.
a voluntary basis, an Administration of-
ficial who took one Said: "It was an-
mind performance. There was nothing
voluntary about it. It you didn't do it,
they presumed you were guilty." ? ,
Whi te House spokeemen could provide
. no detailed inforMation on what law Mr.
Iteagan was referring to. '
; An executive order inherited from the
Carter Administration does prohibit d is-
: closure of national security information,
but it lacks the force of law "neater as it
, ee......eeeeeeeeetee eeeeeee
25X1A
?licks to Curb NewsDisdosulw
does not matte such conduct a criminal
offense. As for the espionage laws, there
is dispute about whether they apply to
giving information to reporters, as the
Justice Department contends. Civil
libertarians argue that such an applica-
tion of the espionage laws would be up-
constitational. .
Mr. Reagan insisted that new guide-
lines on the disclesure of national se-
curity information, which are -being
drawn up by his national security advis-
-ef, William P. Clark, "Will all be within
thelavreeeeeeee.
*. - ' ? An Open Administration e ?
`It will not interfere with'our determi-
? nation to have an open administration
present information that . properly be-
longs to the press," th p President said.
e. Mr. Reagan's insistence that his Ad-
ministration is open followed the line of
'argument advanced in the last few days
blDavid R. Gergen, the White House
commenications director, in response to
public protests from news organizations
and private complaints from Govern-
ment employees who feel their rights
havebeen violated. eee ;
? The dispute has broken out since the.
Administration authorized the use of the
lie-detector tests on Defense Depart-
ment officials suspected of telling re-
porters about a Defense eResotirces
Board meetieig Jan. 7. : ???? ?
Also, the White House chief of staff,
James A. Baker, circulated a memoran-
dum Jan. 6 instructing the Cabineede
partnients to clear major television and
newspaper interviews with the White
House. Mr. Gergen met last night with
-.;Goverretzezt public affairs officials in
,what he described as an effort to soften
the impact oe the Baker directive.
"A let of people in Government Were
either shutting down interviewe or
spreading the word that every single
print or spot television interview had to
be'cleared over here," Mr: Gergen said
today
He added that the White_ House
wanted to know only about major offi-
cials' appearances on network televi,
sion interview shows or on-the-record
sessions with groups of newspaper re-
? ? -
"We specifically are not interested in
getting- advance notice of individual .
newspaper interviews or spot interviews
an television," Mr. Gergen said, adding
that policing of all contacts between ?
Government employees and reporters
would "cleg thesystemee ? .
- ? .,
e, Asked if the use of polygraphs and
warning memos would have a "chilling
effect" on news gathering, Mr. Reagan
replied: "No? I don't think so. All we're
doing is what every administration-be-
fore us has done and we hadn't been
doing. It's simply a case so that we all
known what is going on.". -. ? -.
Howeeer, the public record indicates
that the White House effort to monitor
contacts with reporters is the most
vigorous since the Nixon years, even'
though the Carter Administration's ef-
forts in this regard also stii keel debate.- -
Under President Nixon, agents of the
Central Intelligence Agency were al-
lowed to give polygraph tests to those
suspected of disclosing news in the State
Department. This is an "extraordi?
narily rare occurrence" at the depart-
ment, a spokesman said. -. ? -
According to a 'Defense Department
official, the Reagan Administration's
impulse to use the pelgraph orinated.
with Deputy SecreMry of Defens e Fran
C. Carlucci after military- budget fig-
ures were' disclosed. frorrtethe Jae. 7
meeting.. .e.e f?:.
? Officials familiar with the matter saY
that Mr. Carlucci, former Deputy Direc-
tor of Central Intelligence, Said ehat he
initiated a Pentagon review of the 1965
regulations that require that all pcilye
graph tests be voluntary and that inde.
viduals wee deectineel to take them not be
Ream Admhaistraticneoffitials other
;than Mr. Ceerlucol, who waeeald to ha-vee
volunteered to take a polygraph test as,
'an example to others, described the ex-
? perience as gruelinge.e: ee'e,
i. Questions int the, three-hour C.I.Ae
:polygraph sessions can cover suchareaS.-
-as sexual tendencies; drug and alcohol'
use, cheating on taxes; consorting with
foreigners and contacts with the press.
So
So far, the Reagan Administr/w
atee ,
tests are: thought to cover only the dise'
closures under Investigation. The Presf-
dents.who cited the prevalence of mate::
thorized disclosures as the biggest sur-
prise of his first year-in office. has been-
knovrn to be increasinglyerritated about.
- .
theme '
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ART ICILZ APPEAIED AVIATION WEEK & SPACE TECHNOLOGY
ON :PAGE . 18 January 1982
STAT
0120001-6
ashington Roundup
Leak Detection "The electricians" is .the collective nom de guerre being applied to the Reagan
Administration by career Defense Dept. and other Executive Branch officials. That
title evolved last week in the wake of coercea polygraph tests for members of the
Defense Resources Board in an Administration effort to stem leaks of politically
sensitive information on grounds of national security. Deputy Defense Secretary
Frank C. Carlucci,.a. former CIA official, sent a? memorandum to board members
stating that he and his staff had volunteered to take lie detector tests and asking that
members also volunteer for the 90-min. polygraph to Prove they are not guilty of
leaks.. "It is tantamount to an order and like asking someone to 'volunteer for root
canal work," one board member complained. Another said unless' he "volunteered"
he and the others not taking the test would be cut off from access to material and
autorriatically.becoine suspect. . - ? --
CarlUcci's memorandom came after a board meeting where it was revealed that the
Reagan defense budget through Fiscal 1988 contains a $750-billion shortage in
providing adequate funding to improve U. S. military capability to enable implementa-
tion of national policy., This shortage is in spite of a $1.3-trillion five-year defense
plan by the Administration.
A board member explained that there is some very sensitive information that may
have leaked from the board meeting?charts on U. S. vulnerability to certain Soviet
salons and weapons systems. But he added that forcing polygraph tests does not get
at the problem because hundreds of peOple had access to the data?aides, secretaries
and staff Members of those on the board. "It only stirs up resentment and rebellion;
it's like Nixon all over again," only polygraphs instead of phone taps, he said. The
President last week also ordered a crackdown on teaks, saying that all legal means
would be used to investigate them, and a new Defense Dept. directive requires prior
approval for all contacts with the media.
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A 7.I?. pEARED
rL.GE_ A,
THE WASHINGTON POST
13 January 1982
Aides Take Lie Detector Test
STAT
Penittgort'iProbing Leak.ofecret
. .
Deputy Defense Secretary Frank C. Carlucci
has voluntarily taken a lie detector test as part of
a Pentagon 'investigation. to determine who told
;The Washington Post about a secret report last
'week: The report'said that, as the Joint Chiefs of
Staff have translated' the Reagan plan, to rearm
America, it -could cost, $750 billion more' than now
:projected. . .e?
Henry E. Catto Jr.,' assistant secretary of de-
Jen* for public a.ffairsconfirmed to The Post
'yesterday that Carlucci and several other mem-
bers' of the Defense Resources Board, which in-
'eludes the top Pentagon civiliaris, have taken the
lie detector test so far in P28 probe. ?-?
e, The Defense Resources'Board met last Thurs-
May to hear a briefing from- Pentagon 'research
director Richard .D.. DeLauer about the mismatch
,'between military strategy and the money ear-.
friarked to carry it out- .
DeLauer used as one of his yardsticks the Joint
Strategic Planning Document in which the Joint'
Chiefs of Staff give their estimate of the forces
'needed to carry out the policies of their civirian
-Superiors and prepare for contingencies around
the world. DeLauees. report estimated 'it could
?takeup to $750 billion more in fiscal 1983 dollars
than the $1.5 trillion already projected for fiscal
1.984. through 1988 to buy all those forces. ?
The Post reported these figures on Friday after
confirming with :thellentagon that thepartof the
DeLauer report it , published war acCurate. The
Post story also reported that Navy Secretary John
, F. Lehman Jr. took heated exception during the
Defense Resources Board discussion to the- asser-
tion that there was not enough money in sight to
build the 600-ship Navy that President Reagan
has set as a goal. .
Defenee Secretary Caspar. W. Weinberger on
the Cable News Network "Newsmaker program
broadcast Saturday said "that story was' based on
classified information presented to the Defense
Review Esicl Board in closed session,". adding that
the $750 billion represented "a large number of
wants unconstrained by any financial restrictions
or restraints of what all of the services combined,
consolidated, feel they might want to have if,there
were no fiscal constraints."
Catto; when asked what was so sensitive from a
security standpoint about the behind.doeed-doors,
budget discussion, replied that "what is so npset4
ting to us" was not security breaches but the .fact
"someone on the team-" would talk aboutwhal
went on? .
Catto said that Weinberger has not 'taken the'
? lie detector test because he was not at the Thur
. day, meeting chaired by. Carlucci. Carlucci, forme
'deputy-director of the Central Intelligence Ageni
cy, ordered the. investigation to try to find hove
- The Poet learned about what went on during thel
cloud meeting, Catto said.
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ARTICLE APP,EARED
ON PAGE --02/
NEW YORK TIMES
10 JANUARY 1982
l Mr. Carlucci. said Soviet excli-al
C 11RBs BFING illiGED- 1 sCientists were often involved in a.ppliedi
:military research. As an exarnple?:he
. -4 ,
. . cited the case of a Soviet scientist.who
ON DIATA TO S9111' I studied "the technology of fuel-air. exd
plosives" at a leadmg American treavege
e A
? .t.4 sity in 1976-77, under the tutelage oe Ai
professor who consulted on such devices
He said the Russian also otder;41
numerous documents pertaining to fuel-
air explosives flow the National Techni-
cal Information Service, an uncla.ssiffed
technical depository operated by, the
Commerce Department. Then, Mr. Cate,
lucci said, "he returned to his Work Ili
the U.S.S.R. developing fuel air explci:
. sive weapons." -
for the Navy.
.ner
U.S. Officials Fear Unclassified
. Scientific information May
Help Russian Military
,e..
By PHILIP M. BOFFEY
?
High Pentagon and intelligencLiite
dials are urging that action be takentb
stem the flow of unclassified scientiirc
communication that might be of 411
tary value to the Soviet Union..
Their Increasingly strong eXhort.54
tions are causing concern among lead-
ing scientists who consider an Unfelt
tered exchange of ideas and informaticiii
essential to the further progress of
ence and to American technological and
?
mill tary pol,ver. . e.e,?
Frank C. Carlucci, Deputy Secretary
of Defense, recently warned the Ameri-
can Association for the Advancementof
Science that "the Soviets exploit sdien-
tific exchanges as well as a varietyeef:
other means in a highly orchestrated,
centrally directed effort aimed at geithL
ering the technical information required
to enhance their military po,sture.". *eee
In a letter published in last wcokts
issue of the association's journal, -Sete
ence., he voiced concern over the diselce
sure of sensitive information through
exchanges of scholars and Students;
joint conferences, publication of articles
in the open scientific journals and :the
Government's own depositories of' teeete.
nical data. '
Fai lure to Provide Data
eeeee
Mr. Carlucci said the exchange of,i11.:
formation under bilateral agreement
was often "one-sided." with the See*
Union acquiring information fromabe
United States but failing to provide Ale.,
requested in return. - ? ?
He also Said the Russians were"erage`1"
using" an exchange program for young
scholars. He said the United Ste tee waS
sending young students, mostly inethe,
humaruties, while the Soviet Union Was
sending senior technical people, e
from military Institutions. , .
,tr,
pentagon Is ;Alarmed'
, Mr. Carlucci offered no suggestion
on what should be done, and his'office
? said he did not wish to amplify his letter.
In the letter, he said that the Defens
Department "views with alarm". s
"blatant and persistent attempts" to s*
phon away militarily useful information
arid believes it is "possible to inhibit this
flow without infringing upon legitinaat
scientific discourse."
? Adm. Bobby R. Inman, Deputy Direc-
tor of Central Intelligence, went a:step
further in a speech to the science assaci-
ation's annual meeting in Washington:
last week. ...
He suggested that a voluntari systein
might be needed in which national see
curity agencies could have some voice
In reviewing research proposals bef
funds were provided and hi examining
research results before they were pubs
lished. He expressed particular concern
over "computer hardware and soft-
ware, other electronic gear and tech-,i
niques, lasers, crop projections, ' an
di
manufacturing procedures."
Admiral Inman later said in a tellF,
phone interview he was expressing
personal opinion3 and not the agencvrel
views. He said ne was not conceried,
about any areas of basic research, the
kind of research that academic icien;1
tists are most involved in, but he ;eva.s,
concerned about some fields of applicA
research and technology.
' Pressure for Curbs e ...i:x4,007i4
1
- Government officiale have Itifg
sought to curb the export of devices-and
technical plans that can quickly be air:,
plied to military or industrial purposes' -
In recent years, the Government ha
also sought to stern the flow of sensi ?
scientific _information and ideas. Undev
one
mat
papi
Nati
fore
Rev:
use4
was
on w
Inn
dote
W.
the 5.
Men
Inne
cern
25X1A
'-V
intenuons aria 1 Mtn take it tignuee ye
will not let the matter rest." . e4J
He said that Mr. Carlucci's "letterlo-,:
cused mainly on half a dozen bad caseSe,
including some exchanges that were diseq
continued because they were so Ope
sided" and that "he barely touched on-,
the problems of-the open literature and I
international conferences." ,??:,
Frank Press, president of the Na
tonal Academy of Sciences and former
science adviser to President Cartesia
said that official exchange propemei
were of mutual benefit, not one-sided.1
and that individual scholarly exchangese
few scientists. "The big leakage Is tho.
trade journals and the open literaturei
and we're mot going to stop that". hoe
Said., "It's the price we pay for a free
society."' ?
Marvin L. Goldberger, president of
the California Institute of TechnologY,4
said he would "go slowly" on restictinge
the exchange of knowledge or ideakYe
He said such restrictions simply drive;
the best scientists away from doing itn- ;
portant research.
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GOVERNMENT PUBLICATIONS REVIEW
January-February 1982
THE FREEDOM OF INFORMATION ACT AND TH
INTELLIGENCE AGENCIES
25X1A
Athan G. Theoharis
Department of History, Marquette University, Milwaukee, Wisconsin 53233
Abstract?The author challenges the claims of intelligence agency officials for
empting their agencies' files from the FOIA. Noting that the FOIA's mandat
search and disclosure provision alone permits access to the range of intellige
agency files, the author cites the separate filing and "compartmentalized" reco
policies of the CIA and the FBI. He concludes by challenging the adequacy of c
gressional oversight without independent historical research.
Since 1979, one of the principal legislative objectives of the Federal Burea ves
iga-
tion (FBI) and of the Central Intelligence Agency (CIA) has been to exempt their files from
the mandatory search and disclosure provisions of the Freedom of Information Act (FOIA)
of 1966, as amended W. These agencies' claims to the contrary, there is no record to date
that legitimate national secrets have been compromised because of the FOIA. This is not sur-
prising since the Act already contains a "national security" exception which exempts properly '
classified FBI and CIA files from public disclosure. The FBI's and the CIA's proposed I:01A
exemptive measures, however, would effectively preempt scholarly research into the past
history of the FBI and the CIA at a time when such research can only now be initiated.
Until the mid-1970s, because CIA and FBI files -were absolutely classified, scholarly
research into the history of these agencies was virtually impossible. Unlike journalists,
historians and political scientists need to have access to primary source materials?inter-
views, press conferences; public testimony, and selectively leaked documents clearly do not
meet the exacting standards of scholarly research. Yet, for example, all FBI files dating from
the World War I period were classified, including those documenting then3I's August 1923
investigation of the fraudulent Zinoviev Instructions. In addition, in the early 1960s, FBI of-
ficials successfully pressured the National Archives to withdraw from Department of Justice
and American Protective League files deposited at the Archives all documents and copies of
documents pertaining to FBI investigations of the World War I period [2].
The problem is not simply over- and indiscriminate-classification. Were that the case, then
,these proposed amendments to the FOIA would not cripple historical research. Under Ex- ?
ecutive Order 12065 (and formerly E.O. 11652), historians can submit mandatory review re-
quests to obtain declassification of improperly and RO longer justifiably classified
documents. Yet, to employ the mandatory review procedure, the researcher must be able to ?
identify specific classified documents and be generally aware of particular programs and ac-
tivities. As a result of the Senate Select Committee on Intelligence Activities' hearings and
reports, however, we now know how limited, even irrelevant, had been our knowledge of past
FBI and CIA activities. Experts of the Cold War years might have been aware generally of
the preventive detention program instituted under the McCarran (Internal Security) Act of
1950 and lasting until congressional repeal in September 1971. We now know that, without
STAT
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'RED
NEWSWEEK
23 NOVEMBER 1981
er--1
The Dirty-Trellcs Scua.
he Russian word is dezinformatsiya,
and a KGB manual defines it as "mis-
leading the adversary." In fact, as currently '
practiced by the KGB, disinformation is fax
more---encompassing any forged docu-
ment, planted news article or whispered
rumor designed to discredit its enemies, es-
pecially the United States. Directed by
"Service A" oft heKGB's First Chief Direc-
torate? disinformation is a key weapon in
Moscow's running war of wo rds with Wash-
ington. According to CIA estimates, the
KGB's dirty-tricks squad commands 50
full-time agents and abudget of 350 million a
year.. But that is only a small part of a 53
billion propaganda apparatus that employs
every conceivable Soviet "asset"?from
Leonid Brezhnev and T, .s.s to shadowy front
organizations around the world.
M.1.1ch ofMoseow's anti-American propa-
ganda is overt. Statements by Bre-thnev de-
crying U.S. weapons policies, for example,
can be judged by their source and swiftly
denied. But disinformation is more subtle
and difficult to combat. In 1979 Soviet diplo-
mats spread rumors that the United States
had orchestrated the seizure of the Grand
Mosque in Mecca and that the Pakistani Ar-
my had engineered the burning of the U.S.
Embassy in Islamabad. The goals: to stir
anti-Americanism in Islam, and to sow ten-
sion-between the Carter Administration and
Pakistani President :Mohammad Zia ul-
Haq. Other disinformation is spread by So-
viet-controlled radio stations in Third
World countries. During the Iranian revolu-
tion, the "National Voice of Iran" (actually
broadcasting from the 'U.S.S.R.) blanketed
Iran with charges that the CIA had assassi-
nated Iranian religious leaders and was plot-
ting to kill Ayatollah Ruhollah Khomeini.
Srne-axe A favorite disinformation ploy is
to plant "news" items in foreign publica-
tions, then repeat the charges in the Soviet
press. A classic case involved veteran U.S.
foreign-service officer George Griffin. As-
signed to the U.S. Embassy in Ceylon (now
Sri Lanka) in the 1960s, Griffin was first
identified?falsely--as a CIA agent by
Blitz:, a leftist Bombay weekly. In 1968 his
name appeared in "Who's Who in the CIA,"
a bogus directory of American agents. More
recently, an Indian news service accused
him of organizing Afghan freedom fighters
and even attempting to sabotage Indian
Prime Minister Indira Gandhi's plane.--
charges lass and Pravda trumpeted world-
wide. LastJurte a Soviet newspaperprinted a
Mecca mosque under siege in 1979: Spreading tales that Amerka was responsible
UPT
_
.71$
77 7 7 7 ?
25X1A
R000100120001-6
Ortiz: Ii: Peru, the KGB said he was CIA
letter allegedly from Griffin threatening an
Indian journalist. Despite repeated U.S.
denials, the smear campaign succeeded. In
July, Gindhi let it be known that Griffin's
scheduled posting to the U.S. Embassy in
New Delhi would be "too contentious," and
his assignment was quietly withdrawn.
. Why the long campaign to get Griffin?
U.S. intelligence officials cannot answer
the question with certainty, but the attacks
may have been triggered daring Griffin's
days in Ceylon when he tried?in vain?to
persuade a Soviet couple to defect_ Soviet.
propagandists have started a similar cam-
paign to discredit two new 'U.S. ambassa-
dors Harry Barnes in India and Frank
Ortiz in Peru. Charges that Ortiz is a CIA
agent first appeared in a leftist Peruvian
newspaper and almost immediately were
repeated in Izvestia.
Forgeries, such as the letter purportedly
written by Griffin, play a key role in disin-
formation, often providing the "evidence"
for spurious charges. Skilled at duplicating
typefaces and watermarks, the KGB pro-
duces four or five major forgeries of official
U.S. documents a year, according to the
CIA. One of the most famous is a "top
secret" 1970 U.S. At lily field manual, bear-
ing the forged signature of Gen. William
Westmoreland, that orders U.S. troops'l
abroad to provoke leftist groups into terror-i
coy-I-Ivy-Ea"
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ARTICLE APPEARED
ON PAGE )1
VILLAGE VOICE
11-17 NOVEMBER 1 981
On September 23 the House of Repree
sentatives voted 354 to 56 to enact a piece
of legislation that perilously abridges free-
dom of speech and of:the press. On Octo-
ber- 6 the Senate Judiciary Committee
voted 17-0 in favor of a similar bill making
, final passage a certainty. What follows is
the history of this extraordinary piece' of
legislation, purportedly designed to pro-
? tect the identities of intelligence-agents
but perhaps marking a-fatal turning point
in the history of liberty in America.
The .story begins with former Central
Intelligence Agency officer Philip Agee.
But, although Agee's.personal odyssey is by
now all too familiar, the complex series of
? actions he initiated had repercussions far
different from anything he intended?and
repercussions that even today are little-
known. . ? e ?
: In London, on Oetober 3, 19'74, Agee,
Notre Dame '56, made a Public announce-
ment more quixotic than most. He in-
tended, hej said; -to ? wage unremitting
private war against the Agency which had
employed him for 11-1/2 years. According
to Agee, who enteiecl thee CIA a rabid anti--
Communist and'ivho left it in 1968 a rabid:
pro-Communist, the CIA's unforgivable
sin.Was its- success in forestalling the
worldwide triumph of revolutionary Marx-
ism. Since that is just what the CIA claims,
Agee's opinions disturbed nobody at
the Langley, Virginia, headquarters of the
largeet,. busiest, and most inept "intelli-
gence-service" in the world. What did in-
furiate the CIA was the strictly practical
aspect .of Agee's little war. In order to
cripple the -Agency, 'announced Agee, he ?
intended. to identify, and to train disciples
? to identify,"CIA officers-and agents," and
by doing so to? "drive. them out of the-
countries where they are operating."
A self-important sort, a person (re-
sembling in this respect the Agency he
abhors), Agee did not divulge the CIA
trade secret on which his prospective war
depended?the almost "comical truth that
the identities of undercover CIA officers
are not a secret, have never been a secret,
and arc not even meant to be a secret.
These Officers work t U.S. egeWsie
der the thin guise
Wilt-IRYFarYgte
14.9iFe!.c..0Yq7 is. P.Pnt
parent as a plastic raincoat, beneath whi
they wear-, metaphorically speaking, C
T-shirts in order to make it easier for t
natives to find them.
. In a foreign capital you can identify t
CIA crew at the embassy by askingetnyo
at the bar favored by newsmen and politic-
os. The habitues can always give you the
name of the CIA chief of station because he
probably gives conferences?or even
cocktail parties for that matter. Or you can
ask an embassy janitor to point out the
Americans who all work in the same room
and only talk to each other. If you travel in
diplomatic circles, you don't even have to
ask who the CIA people at the embassy
are, for, as one ex-CIA officer put it, "a
favorite pastime of Foreign Service Of-
ficers and their wives was to point them
out whenever the opportunity arose."
Even stay-at-homes can identify the
CIA lads working under embassy cover
with ;the help of various unclassified gov-
ernment publications:If you want to know
.how it's done, read "How to Spot a Spook"
in the November 1974 issue of the
eminently respectable Washington
Monthly. One "indicator," as the CIA calls
it, is the fact that no CIA official at an
embassy is allowed to be listed as-a foreign
service office. This is because foreign serv-
ice people, who have to take a stiff test to
win that coyeted title, refuse to let it be
worn, unearned, by some ill-educated CIA
clodhopper. So much for America's famed
clandestine service.
25X1A
300100120001-6
embassies around the world. Con-
gressional lethargy stemmed from many
sources, but chiefly from the fact that we !.
were still in the era of detente; that popu-
lar support for the Gold War had broken
down, and that the CIA itself was in !
repute. Thanks to Watergate's endlessly i
ramified revelations, the Agency, by 1975,
had almost Jost the only "cover" it has ever 1
really cared about?the 30-year-long pre-
tence that the Central Intelligence Agency!
is in fact an "intelligence-gathering" serv-
ice. Blaring headlines about a CIA-backed-1
; coup in Chile and shocking stories about,
CIA attempts to assassinate foreign rulers-
gave the American people ? a tantalizing
glimpse of the long-hidden truth. The
chief activity of the CIA' is to intervene
politically in the internal affairs of half the
countries in the world. The CIA is little
more, in fact, than an enormous bureau of
incessant meddling, working constantly to
prop up pro-American governments, how-
ever inept or vile, and to subvert independ-
ent-minded rulers, however popular or
worthy. It is chiefly because the CIA's.
embassy operatives are political manipu-
lators, not spies, that their "cover" is of se
little consequence.
? This great CIA trade secret would -be All such "covert action," as it is called
,something of a joke if the American people at Langley, 'Is no secret to the Kremlin,
?shared it. Most Americans doi not, and which, interestingly enough, makes no of-.
because they do not, Congress at this very fort to impede it. Indeed, it is no secret to
,
anyone in the world except the American
moment, is exploiting that ignorance to
carry out one of the deadliest assaults on people, whose knowledge of What their
First Amendment liberties ever attempted government does overseas constitute S the
on Capitol Hill. The assault has been more only danger to "national security" Ameri-
than a year and a half in the making and ca's rulers really fear. ? ?
the slow pace is readily understandable. ' The real CIA is a secret of state, and by
II Was t at ?uongress shall make no law
/11#1:601076P9040139111RONd401410ffiltiqie was ripe for shoving
this secret back in the box. The political
press," passing such a law is nnt MIA*
e. abridging freedom of speech or of the atmosphere was changing. Detente and
?
T 77
1. J.
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01Y4 4.3,14 N EW Y ORK DAILY TE`J.3
19 July 1981
View
01-6
BY JOSEPH VOLi
NCE AGAIN, it may be time for
a broom at the top 'of the
Central Intelligence Agency.
The often-embattled spy corps has
had its worst week since a Senate panel.
revealed six years ago that the agency
planned to kill Cuban President Fidel
Castro and other world leaders...!---- -
But the problem now is not what
CIA Director William Casey- has don
since becoming top spy last January,
but what he and his recently dispatch-
ed covert operations chief, Max Hugel,
were doing in the business world.
forethey joined the agency. ?
Once again,. sthe ethics .of . the ra.!
tion'a top spies is underscrutiny.-----'?er
Hugel was forced to quit when-The.
Washington Post?not the CIA's. Office,.
of Security?uncovered a tangled tale
of alleged stock manipulation in the
mid-1970s designed to boost the worth
of his company, Brother International
But hardly had - a- brash
amateur and the most unpopular head
of covert operations since the agency
was formed in 1947, been pushed out
the door before Casey's own business
dealings came into question. A now-
defunct farming venture, Multiponics
Inc., in which he invested, has been the
subject of a civil suit Rh* years.
So far, President Reagan says he
has "full confidence" in the brusque
Casey who was his campaign chief last
year. '
But Casey does not baVe the !lull
confidence" of his clandestine opera-
tives. The undercover crowd, expected
to be more and more active. in such
flashpoints as Afghanistan, El Salva-
dor and 'Guatemala, is appalled that
Casey picked an amateur, Hugel, to run
the sensitive covert division.
Casey, in his first months as dire-
ctor, has tried to shut down the CIA
.public affairs office and make the
Agency exempt from the Freedom of
Information Act, Co the anger of civil
libertarians who-argue that such secre-
cy got the CIA-in trouble before and
could prevent future Hugels from
being rooted out.--- --. --
Sen. Daniel P. Moynihan (D-N.Y.),
committee 'vice- chairman, wants a full
report on how the papers could find
out things about Hugel that eluded the
CIA's probers.
- The betting here is that, regardless
of President Reagan's -."full confi-
? dence," Casey will be out by year's end,
to be replaced by a professional who
The CI 's asey: Too big a prof! et.,
keeps a low pltofile and does not panic.
In crisis?someone like Admiral Bobby.
R. Inman, deputy- CIA director, or.
Frank Carlucc!, the former deputy who.
.is now deputytdefense secretary.-- -
Joseph Vole covers notional affair:-
from The News' Washington bureau. J
trameentwomorreeispiiiiimpommensernmessemomais
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HirPRI\I EVENTS
6 June 1981
Compromising Security
Attorney General. Seeks
Changes in-FOI Act
Efforts are being mounted 'by the Reagan Ad-
ministration and on Capitol Hill to.tighten up the
'provisions of the Freedom of Information Act
(FOIA), a law designed to provide "open govern-
ment" by making government information and
files available to anyone. . . .
- Since early May Atty. Gen. William French
Smith has been soliciting proposals from federal
agencies for reform of the law, which was passed in
1966 and broadened in 1974. As a first step, Smith
revoked 1977 guidelines implemented by the Carter
Administration that agencies- release requested in-
formation unless the disclosure would be
"demonstrably harmful" to the government.
Liberals like the FOIA because it has produced
revelations about the FBI's CointelPro operation,
,alleged FBI harassment of the Socialist Workers
party and Martin Luther King, and CIA attempts
to assassinate foreign leaders. c? .
- Some conservative groups have also used the
FOIA to advantage. Reed Irvine's Accuracy in
Media received government, documents under the
law that cleared the FBI cif charges that it had tried
to smear actress Jean Seberg, a supporter of the
Black Panthers, in a Cointelpro operation. M.
Stanton Evans,' director of the National Jour-
nalism Center, has used the FOIA in an attempt to
get out of the Commerce Department the names of
those firms doing business with the Soviet Union.1
And HUMAN EVENTS used the FOIA law to acquire
a list of federal ACTION grants that went to left-
wing political groups.
Nevertheless; there is evidence that the
FOIA has been abused and exploited, and that
the current exemptions from release of certain
information. are not enough to prevent
damage to our ability io collect intelligence on
criminals and subversives.,
The CIA, for example, has been especiallSr hard
hit. The former deputy director of the agency,
Frank Carlucci, who is now deputy secretary of
defense, testified before the House Select Intelli-
gence Committee in 1979 that the agency had lost
.valuable intelligence because of the FOIA.
"A foreign intelligence 'source from a Com-
munist country broke off Oroauctive as.
with us specifi ?TaR9reartisVISfqacWt
?
II. I
I.
tbo
quences of disclostire under the Freedom of Infor-I
mation Act." he said. Carlucci added that the law !
with -foreign int
major foreign it
and flatly stated
as long as the CI.
formation Act."
Carlucci reveal
proximately four
from CIA defect()
objective is to dismantle the intelligence-gatheringl
agency. Moreover, Carlucci noted that "under the
terms of the law, if the head of the KGB were To
write us directly, we would have to respond hi 10
days."
(Fulfilling these 'requests costs money, of course,
and most of it is at public expense, CIA Director
William Casey revealed that the agency recently
spent S300,000 to comply with just one FOIA re-
quest from Agee.) -
Two other agencies hard hit by the FOIA are the
FBI and the Drug Enforcement Agency (DEA). A
1978 study by the internal security panel of. the
Senate Subcommittee on Criminals. Laws and Pro-
cedures found that "a heavy volume" 'of requests
made .to those agencies "come from the criminal
'community and members of extremist organiza-
tions." " ??'-?
25X1A
Vie study noted that "Mr: Bensinger of DEA
told the subcommittee. that 40 per cent of the total
? number of requests ? received by his agency came
front convicted felons, manyof them saying time
in prison. The DEA, he said, had been inundated
with form letter FOIA/Privacy 'Act requests1rom
prisoners and organizeddissident groups in Prison
?in each case seeking to discover what DEA may
know about their activities."
Herbert Romerstein, a professional staff mem-
. .
ber of the House. Select Intelligence Committee,
noted at :a 1979 heating that a -convict by the name
of Gary Bowdach .had testified that he filed FOIA
requests with. almost 10 agencies.. including the
FBI and DEA, for the purpOse of identifying in-
formants so that they could be killed. --
Romersteirt ? also noted that Bowdach further
testified that on behalf of another criminal, "he
made an FOIA request to the DEA which supplied
five pounds of 'documents, and he claimed that
careful examination identified a DEA infoi-
mant.... And Bowdach then said that he believed
the informant was later murdered." ? ? ?
.As a result, officials of the PEA and the. FBI
contend that the FOIA has had a chilling ef-
fect on sourcei? of information.. Thomas. S.
Bresson, formeteacting chief of the FBI's FOIA-
Branch, testified that the buteau has found
: CIA w 2941F020a4.15.029Pfirce1-6.-wh0?viere
tell-
ing us in counterintelligence investigations [of sub-
versives and foreign soiesl that they no longer
Approved For Release 2006/01/30 : CIA-RDP91-0090
PHILADELPHIA BULLETIN
4 May 1981
TmErNEW MISSIONARIES/Part 2 r,
25X1A
1R000100120001-6
For More than 150'years; U.d.,
mis-
. _
sionaries Bible in hand ?have,tra-
,
vel ed the world to spread God's
But today's missionary ventures forth
with- a different mandateirr:mind, and-.
Often in- the face of. extreme danger -
This is the second in aseriee' '
BY PAULA HERBUT7i.-.
Of The Bulletin.
?
:"The Summer Institute of Linguis-i-
tics might seem to an. unlikely,
target of suspicions of Central'
licence Agency (CIA) involvement.
branchlinlife?Wrttfte -Bible-
'Translators,: the institute -works . in
remote areas of the. world, its trust
sionaiy-linguists living:?for 15 to- 20
years with remote villages of people-
Who have no written language:
The . I inguists transcribe. the-
Unwritten languages into. written
form and then translate the New
Testament:into thetAanguage, cod,
Vetting the people to Christianity
along the way?
,..But the fact that , linguists, spend -
years in remote areas arouses suspi-
cion.,in some Stiocloes- their dedica-
tion- to seemingly:insignificant: peo- -
?
pies ? some of the villages the insti-
tute works with- have as few as 100
'people
- The institute also :has-contracts
with the government& of-the 36 coun-
tries 'it 'works in ;',.? it_accepta Some
government grants. from .'the . U.S.-
and-other countriesibeapeciat proj-
ects;
ects,-and countrie&:Where' Suspi
don _ of the U.S.;? government: is
strong, the institute has not escaped
suspicion itself -
, In Colombia,? Chester. A.: Bitter:
man-2d, a 28-year-old native of Lan-.
caster, Lancaster County, was pre-
paring to dedicate-. More than 15
years of his life asCa missionary-lin
guist to a village of only, 110 people. .?
He was one- of 200zmissionary-lin;-
guists an& support 'worker-a in the
country. There are I,500.Missionary-
linguists with -.the-- institute around
the world ? another AitilfhititifiiS
staff members do support work such
as maintaining supply basis or radio
caruirac nr gtffinthismnt1 iungle?
But DilfJiri: 19, Bitterman was
tak-
en hostage by a group of left-wing:
guerillas, and Six Weeks later was
"murdered. The group charged that?
the institute was CIA fronts The
stitute denied involvement with, any
government intelligence agency? in
fact; it forbids it, it said. Bitterman's
father Said that his son, a fundamen-.
.:talist Christian, felt-he was "led by
. :God" into missionary work.,
',..:;The institute has been a target- for,:
more than a decade of ruiners that it,'
'has spied, set up missile bases-and
evert mined precious minerals or run
drug operations in Latin American
cbuntries.' The rumors have never
:been confirmed. ; . ,
Bitterman's murder comes in the.
,rnidst of widespread controversy. in
missionary circles over the role of .
: U.S. missionaries in Third World
countries and U.S. government funde
ing of some missionary development
projects and relief work. s
It-also has led to more specific'ac-
'Huns by Protestant denominations.,
Among them is the United Methodist
Church, whose Board of Global
Ministries' World Division approved
policy this month that "no ransom
;will be authorized on the basis that
such response places in jeopardy all
personnel and --, programa of the.
church.", . -.? :
!?.f Espionage - allegations against
:Missionaries 'in Third World .coun-:
; tries are not uncommon and. do not
'tenter on U.S. missionaries alone. In
:Iran,. three British Anglican mission-
ariesacctised of spying weteimpris-
, oned for more than six months until
:the charges were dropped in Febru-
ary
r, Past CIA use of missionaries Was
_uncovered in 1975 during a 15-month
" (investigation by the U.S. Senate Se-
: lect Cemmittee on. Intelligence
"tivities. The final, committee report.
:said it had information that, 21 mis;
sionaries were used bit-he agency in
, the 1950s and 1960s.
?,' It was a different era. Among mis-
r Re I diOlaftlaN,Q4/apErif I hiRDA9
famed Catholic missionary doctor.
TomDo?ley.:'-',
-
lic sainthood, Dooley; who died of
cancer in 1961 at 34, served as an un-
paid informer to the the CIA in the'
:1950s when he was a doctor in Laos'
and Vietnam. He? reportedly passed
information about villagers' senti-
rnents. and troop movements near
. the Laos hospital where he-treated
the starving and wounded.
"He (Dooley) was a doctor and hu-
manitarian. He thought this would
help those people and help prevent
communism taking over, those coun-
tries,' ? said the Rev. Maynard
Kegler, a priest working for Dooley,'s
, sainthood. , ?
Church groups now solidly oppose
use of missionaries by the CIA, cit.
ing separation of church and state,
? fear that the practice would taint
and endanger all missionaries and
concern that government policy is
not always identical to church
stands.,, - : ?
, "They go in as missionaries of the
Church, not as missionaries of the
government," said Dr. Lois Miller,
r---associate general secretary for the
United Board of Global Ministries of
the United Methodist Church, which
. ---,like many other denominations in
recent years specifically prohibits,.
any CIA involvement among its mis-
sionaries. , -.?z
-? In 1976 a public pclicirstatement
was issued by then-CIA Director
Ceorge Bush that the agency had
-terminated its "paid or contractual"
(relationships with American clergy-
men and rnissionariee and would not.
renew them.
*-CIA internOrguidelknes in effect
? since 1977 state that "American
church groups will not be funded or
used as funding cut-outs (fronts) for
CIA purposes." They also state that
'the. CIA. shall establish "no secret,
:paid or unpaid, contractual relation-
ship with any American clergyman
or missionary.,. who is sent out by,
'ptl; h organization to
.or. (proselyt-1
0-7
ARTIOLLANYPE54" FORTUNE
r Release 2006/01/30 : CIA-RDP91-00901R000100120001
011 PAGE...72:4 2? 18 May 1981
T he new Defense
Secretary will focus
on the big issues
and leave the rest
? to the brass.
by DONALD D. HOLT
Secretary of Defense Caspar Weinberger
has set out to run the Pentagon as if it
were a huge, wildly diverse conglomerate.
He means to concentrate on such head-
quarters functions as finance and overall
strategy while his subordinates, the gen-
erals and admirals and service Secretaries,
run their own shows like managers of so
many strategic business units. Will it
work? Nobody knows; centralized control
has been ingrained in the Pentagon wood-
work since the clays of Robert S. McNa-
mara. But Weinberger's goal is admirable.
With more time to think, and a little luck,
he might be able to come up with one ad-
ditional defense program the nation ur-
gently needs: a cohesive rationale for
spending $222 billion a year.
Weinberger's plan was laid out recently
in an eight-page memo signed by Dep-
uty Secretary Frank Carlucci. Instead of a
few bold strokes, the plan consists of a
series of smaller steps:
I Army, Navy, and Air Force Secre-
taries are now members of the Defense
Resources Board, the top management
body formerly made up only of the Chair-
man of the joint Chiefs of Staff and of-
ficials from the Office of the Secretary of
Defense (OSD). The board, chaired by
Carlucci,, now controls the entire planning
and budget process, not just the last stages
as in the past
? OSD staffers have been forcefully re-
minded that they are staff, not line of-
ficials. The amount of documentation they
may request from the services has been
cut by 50%, and they are to use such data
only for purposes of oversight and co-
ordination, not to produce alternative
programs.
ta Though it wasn't in the memo, Wein-
berger told FORTUNE that he also intend
to cut the size of the Defense Depart-
ment's giant central staff.
Weinberger's goal is to get out from
under the day-to-day work load that has
forced predecessors to focus on current
budget years at the expense of long-range
planning. By looking ahead, he hopes to
solve some defense-contractor problems,
particularly those growing out of the start-
stop nature of many procurement pro-
grams "The Defense Department hasn't
been a very good customer," he says.
Also, Weinberger thinks policy has been
determined by how much money was in
the budget, rather than the other way
around,
In decentralizing the Pentagon, Wein-
berger is attempting to overturn two de-,
cades of hardened tradition. With the
exception of Melvin Laird's tenure from
1969 to 1973, which was atypical because
he had to wind down the Vietnam war,
the modern Defense Department has been
run from the top down. For example, OSD
has sent, increasingly detailed directives
to the services?specifying the type of
avionics in a fighter or the monthly pro-
duction rate of the M-1 tank?to the point
that the services sometimes were little
more than contract managers.
The Weinberger reforms in effect tell
OSD officials to knock. off that kind of
? "micro-management." In turn, service
Secretaries, often confined to watching pa-
rades in recent years, are being expected
to ?assume responsibility for programs.
Says Weinberger, "Once the basic policy
questions are settled at my level?What
do we need a Navy for? What kind of
Navy??we will give them considerably
more freedom in saying how those ob-
jectives should be obtained."
Like his bcss over in the White House,
Weinberger wants to keep the details off :
his desk so he can concentrate on the big!
,
picture. On most issues he wants consen-
sus and decision reached at lower levels,
with only the most important questions?
and the ones nobody cart agree on?final-
ly landing in his.in-box.
To understand the significance of Wein-
berger's action, it helps to remember that
when McNamara took over, the Depart-
ment of Defense was just 12 years old
and had been dominated by strong mil-
itary leaders. Interservice rivalry had es-
calated out. of control. There were, for
example, 12 different long-range missile
programs spread among the three ser-
vices. It was to end this chaos that
McNamara instituted his reforms. He es-
tablished the Planning, Programming,
Budgeting System (PPBS) and created a
huge staff of systems analysts in OSD. In
a tyr-al year, he made more than 700
budget decisions himself, even down to
the color of belt buckles. The Joint Chiefs
were quick to voice their displeasure;
within two years, all had been replaced.
McNamara served seven years, firmly
establishing his system. When the Re-
publicans took over in 1969, the huge mil-
itary developed to fight the Vietnam war
was being dismantled, and Laird, the can-
niest politician ever to serve as Secretary
of Defense, was shrewd enough to re-
alize he had better not try to run things
by himself. He instituted "participatory
management," under which the services
developed their own programs in accord
with generalized policy and spending ceil-
ings set by Laird. While leaving much of
McNamara's centralized system intact, he
managed to share the onus of big budget
cuts with the military chiefs.
Laird's successors, James SchLsinger
and Donald Rumsfeld, retained the con-
cept of giving broad guidance, but they
were by nature centralizers; and the pen-
dultim nudged back toward the McNa-
mara style. Harold Brown pushed it hard
the rest of the way with directives that
prescribed, for instance, the mix of,mech-
VAJfIl
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--anized iind infantry diviPsIBREIMEN ,kf:Ifelease 2006/01/30 : CIA-RD
(Brown also installed zero-baie budget-
ing?the Georgia Highway Department's
contribution to national defense, as one
Carter-era Pentagon ironist put it. Carlucci
has killed ZBB, to nobody's apparent
dismay.)
Belief in a bristling armory
Weinberger, 63, had been penciled in
for all the top Cabinet jobs, yet the one
he got seemed the least appropriate. Hi5
budget-cutting reputation as Director of
the Office of Mane e?ernertt and Budget and,
Secretary of HEW unc!er Richard Nixon
made an odd fit with e. department Rea-
gan had promised to fetter? up. On top of
that, Weinberge.' was an agnostic amid
Reaganite believers for whom a bristling
armory was true religion.
Carlucci's ap. ointrras Deputy
!?staa_w_21?as pur-
ists led by Serlesslelms, who felt
Mat at?CWI wakened the CIA while
serving the Carter Administration as the
a ert '4 NO. 2. no
previous direct association with the De-
fense Department, Weinberger .fought to Another problem Weinberger wants to Right now, convinced that Weinberger in-
bring him along. By one account, he evert
iiireatened not to serve if he couldn't-have
6arlucci at his elbow.
No matter what Cali-net post Weinber-
ger got, the slim, unassuming figure of
Prank Carlucci, 50, in plaid sport jacket
and unshined brown loafer', would like-
ly have joined him. Their association dates
back to the early 1970s, when Weinberger
was director of OMB and Carlucci, a ca-
reer civil servant, was his deputy direc-
tor. Carlucci followed Weinberger to HEW
in the same capacity. Over the years they
have become so close they practically
think alike.
Both argue that their experience run-
ning government bureaucracies offsets
whatever knowledge of the-Pentagon they
might lack. Weinberger also has some-
thing else going for him: Ronald Rea-
gan's confidence. He was Reagan's
California finance director, and has been
a confidant ever since.
Minna
of 1981
dollarS
Keeping an ear cocked
When it comes to big decisions like how
to deploy the MX missile, which manned
bomber to buil& or what to do about mil-
itary manpower in the face of Reagan's
campaign position against the draft,
Weinberger is acting like any other Sec-
retary. He draws both on the department's
centralized staffs and on outside groups.
The ultimate deeksions will obviously be
made by Weinberger, albeit with one ear
cocked toward the White House.
tackle personally is the sharp shrinkage
in the industrial portion of the once-feared
military-industrial complex. The Penta-
gon no longer has the long lists of active
or potential contractors it could choose
from back in the days when more com-
panies were eager for defense contracts.
Years of budget stringency and preoc-
cupation with current budget years at the
expense of future planning have led to
stop-start contracting. No company wants
to win a contract one year, see it cut
back the next, and then be asked to .tool
up again the third year. The Pentagon's er-
ratic purchasing has been especially hard
on the smaller companies that make com-
ponents for prime contractors. In the last
ten years, about 6,000 have simply quit
doing business with the Pentagon.
? Weinberger thinks some of them would
come back if they could depend pn stead-
ier orders. He has a task force working
on a plan to smooth out contracting, and
he is backing legislation that would per-
mit multiyear contracts, though Congress
has always been leery of them because of
the potential for? cost overruns and be-
cause they cut lawmakers out of the an-
nual budget review.
As good as Weinberger makes decen-
tralization sound, it could result in wild
spending and =fleeting programs. The
trend toward central control began in the
fait place because of the duplication and'
tends to leave them alone, the services
are updating their wish lists, thus put-
ting themselves on collision courses 'with
one another and with the Secretary. Says
one longtime defense watcher, "Gradually
Weinberger and Carlucci will have to re-
assert power because the services will
blow it. They will not be team players."
A memo in the men's room
waste of interservice rivalry. Such rivalry
has hardly diminished over the years.1
In his memo, Carlucci sternly warned
against such tactics: "I expect to enforce
the necessary discipline during the entire
process. ? Game playing will not be tol-
erated." That stricture isn't likely to be
heeded. Game ' playing?out-of-channel
contacts, low-ball budget estimates, and
such tactics as seeming to support pro-
ject A when the real goal Is to sink A in
favor of B?exists in all big bureaucracies,
including businesses. But it has become
high art in the Pentagon; and nobody
seems ready to stop.. After one meeting,
In which Carlucci's deputy, Vincent Fur-
item`, got everybody to promise to la
by the ntl_es,ati.:eneralfe owed
pari t ar."?KI to the men's room and tried
to slip him arivate memo.
Embarrassed by a Navy estimate of the
cost of bringing the carrier Or,iskany out
of mothballs that was so low even staunch
Navy supporters in Congress were skep-
tical, Carlucci has now quietly instructed
OSD staffers to come up with their own
prop
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estimate. Much more of that kind of team
playing and Weinberger's whole system
will sink without a trace.
This is where. Weinberger's inexperi-
ence could be critical. One congressional
staffer thinks ? Weinberger and Carlucci
will learn first of abuses of their trust
from congressional committees.
Persistent game playing by the services
could lead Weinberger to lash back. "Ev-
ery once in a while you have to do some-
thing your military experts feel is not the
proper course," he says. "We're perfectly
prepared to do it. We're not at all sure
we're right and they're wrong, but that's
what civilian control is here for." The pen-
dulum at Defense, having swung toward
decentralization, could swing back.
?
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27 April 1981
:3e4W-TRISPffifdibiR0001
.r7 Roundup \
hingto
Acquisition Shifts
120001-6
Deputy Defense Secretary Frank C. Carlucci late last week received 26 specific
recommendations for expediting and improving procedures for systems acquisition and
was expected to render prompt judgment on most, if not all.
One major issue is the future role for the Defense Systems Acquisition Review
Council (DSARC) procedures. One of several options offered for Carlucci's selection
is to shift early, milestone DSARC functions to the secretary of the military service
involved. Another would be to raise the dollar threshold figure for programs that must
run the DSARC gauntlet, Carlucci's executive assistant, Vincent Puritan?, told an
Electronics Industries Assn. conference last week.
Puritan?, a firebrand-type red-tape cutter who was a Carlucci aide at the Central
Intelligence Agency and has extensive government experience, plans to meet this
week with key congressional staff members to discuss acquisition procedure changes
that would require legislative action to eliminate congressional constraints accumu-
lated through the years.
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25X1A
25X11:0,1
itvricAPPIQYaditor Release 2011m/n1 IDa-
/fin ? rIA-PnA1 nn901R000100 20001-6
7E ITA-S1-1INGIOlq pr-
PAGILAI1_
25 April 1981
enia on iss
:By George C. Wilson
Wo.shington Poet Stan Writor
Deputy defense secretary Frank Car-.., headquarters and field commands in Po-
, duce'', who took a hard line on security land had decreased, indicating an easing of
leaks while deputy director of the CIA, Lis- the crisis.
issued a severe warning to Pentagon Pentagon officiaLs complained at the
ployes about disclosing secret information. ? time that the report tipped off the Soviets
"It will be the policy of this department. that those conununications were being in-
to deal firmly and promptly with all tercepted, impelling them to use a differ-
' ,ployes who betray this resp6nsbility" ant net and thus costing the U.S. intelli-
gence community a source of information.
protect secrets, Carlucci said in a memo
dated April 15. : . ??, , Although it is widely known that the
loeures of cl
"Unauthorized
United States and other nations eavesdrop
diScassified
- information, whether intentional or filed.: ?11 communications, article's about this al-
on Seamt
was a recent wire service article stating
? that radio communications between Soviet
most always upset intelligence specialists
vertent, will not be tolerated," the memo -
said. ? such as Carlucci. ?
?past discicaures_riave damaged our":._n' _ ' e article also might have irked' De-
fense Secretary Caspar W. Weinberger be-
laHons with other governments, reduced cause it ran at the same tune that he was
? our lead in weapons technology and re-. portraying the Polish situation as an un- .
suited in the loss of irreplaceable intelli- relenting crisis. -
gence scum"?' the memo said. It did not Besides its references to specific lealq,
cite any examples. - ? ? the contents of the me-Lio were described
One disclosure that is known to have--_ as normal for a new administration trying
provoked the Pentagorea civilian hierarchy to lay down the law early on. But it could
' mark the beginning of a crackdown on the
release of information about Pentagon ac-
tivities reminiscent" of the administration of.
secretary Robert S: McNamara in the
1960s. ? - ?
Carlucci's memo went to the chairman
of the Joint Chiefs of Staff, the three ser-
vice secretaries and other civilian execu-
tives of defense. agencies. .
--Henry. Catto,... the Pentagon's -acting
- spokesman, issued a follow-up memo to.
Carlucci's. "In addition to pcsing a threat
to national security," Catto said, "unau-
thorized disclosures tend to make our work
more difficult by stimulating tuqwnes.
about the subject ,matters -revealed.. We:
cannot afford even one slip-up; inadvertent
or otherwise. -
"To give added emphasis to security_
consciousness, I urge you to convene your
staffs periodically for a reminder that each
, staff member who :Indies classified or
sensitive information is personally respon-
sible for its protection."
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24 April 1981
25X1A
20001-6
BY RICHARD C. GROSS
WASHINGION-CUPI).-- THE PENTAGON IS CRACKING DOWN HARD-ON LEAKS. OF
CLASSIFIED DATA OFFICIALS- SAY HAVE DAMAGED U.S. RELATIONS WITH OTHER
COUNTRIES,- REDUCED THF U.S. LEAD IN THE ARNS RCE AND CAUSED THE LOSS
OF INTELLIGENCE SOURCES, .
DEPUTV-DEFEUSE SECRETARY- FREK-- CARLUCCI-I, IN TOUGH, NO-NONSENSE
-NEMORANDUM TO THE. HIGHEST 'ECHELONS OF THE PENTAGON DATED APRIL i5,
SAID THOSE WHO LEAK CLASSIFIED INFORMATION WITHOUT AUTHORIZATION CAN
BE FOUND GUILTY OF VIBLATING-ESPIONAGE LAWS.
THE MEMORANDUM WAS OBTAINED. BY UNITED PRESS INTERNATIONAL.
91 LULL BE THE POLICY OF THIS DEPARTMENT TO DEAL FIRMLY AND
PROMPTLY.WITR ALL EMPLOYEES WHO BETRAY THIS RESPONSIBILITY,' THE
CARLUCCI MEMO SAID.
WANT -TO. EMPHASIZE Ti) ALL THE EMPLOYEES OF THIS DEPARTMENT THAT
UNAUTHORIZED DISCLOSURES OF CLASSIFIED INFORMATION -- WHETHER
INTENTIONAL OR INADVERTENT -- WILL TOLERATED,' CARLUCCI WROTE.
SIMILAR. MEMOS APPEAR ATTHE OUTSET OF EVERY NEW ADMINISTRATION,
BUT CARLOCCI5 BY INVOKING. .THE ESPIONAGE. LAWS, WAS UNCOMMONLY HARSH.
THE. FOUR-PARAGRAPH MEMORANDUM RESULTEDFROM ANGER OVER DISCLOSURES
BY PENTAGON OFFICIALS OF DETAILS 'SURROUNDING SOVIET AND WARSAW 'ICI
MANEUVERS IN AND AROUND POLAND APRIL i3 AND t4 DEFENSEAFFICIA_
SAID.
SOME OF THE DETRILS,t.-THE OFFMALS SAID, ?COMPROMISED U.S. -
INTELLIGENCE SOURCES- BECAUSE. THE SOVIETS WERE ABLE TO PINPOINT THE
ORIGIN OF THE INFORMATION... ? ? .
DOZENS OF MILITARY PERSONNEL- DAILY-FIRE PRIVY TO PHOTOCOPIED
INTELLIGENCE DATA COVERED WITH A RED SHEET STAMPED "TOP-SECRET" AND
THOSE. WITH BLUE COVERS MARKED "CONFIDENTIAL." WHEN NOT IN USE, THEY
ARE -STORED IN FILE' CABINETS SEALED WITH COMBINATION LOCKS. -
'PAST DISCLOSURES HAVE DAMAGED OUR .RELATIONS WITH OTHER
GOVERNMENTS, REDUCED OUR LEAD IN WEAPONS TECHNOLOGY AND RESULTED IN
THE LOSS OF IRREPLACEABLE INTELLIGENCE SOURCEW-THE MENORANDUM SAID.
IT DID NOT ELABORATE.
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0901R000100120001-6
STAT
THE DEPUTY SECRETARY OF DEFENSE
WASHINGTON, D. C. 20301
APR 15 1961
MEMORANDUM FOR SECRETARIES OF THE MILITARY DEPARTMENTS
CHAIRMAN OF THE JOINT CHIEFS OF STAFF
UNDER SECRETARIES OF DEFENSE
ASSISTANT SECRETARIES OF DEFENSE
ASSISTANTS TO THE SECRETARY OF DEFENSE
GENERAL COUNSEL
DIRECTORS OF THE DEFENSE AGENCIES
SUBJECT: -Unauthorized Disclosures of Classified Information
I want to emphasize to all the employees of this Department
that unauthorized disclosures of classified information--
whether intentional or inadvertent--will not be tolerated.
Past disclosures have damaged our relations with other
governments, reduced our lead in weapons technology, and
resulted in the loss of irreplaceable intelligence sources.
It is essential, therefore, that in all dealings with
persons not authorized access, we take care to avoid comments
that refer to, or are based upon, classified information,
unless prior clearance has been obtained in accordance with
established procedures. Indeed, even unclassified matters
should be treated with circumspection when they relate to
sensitive internal deliberations.
There should be-no need to remind anyone that the
disclosure of classified information without authorization
may constitute a violation of the espionage statutes.
Certainly it constitutes a violation of established security
procedures, as well as a breach of the responsibility we all
have to protect sensitive information entrusted to us. It
will be the policy of this department to deal firmly and
promptly with all employees who betray this responsibility.
,-)
e /
/
/
(
41"-Pr-deik(?Carlucci
-"Z
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WASHINGTON STA 25X1AR
r;..; IVEroved For Relee;12-06COIP34-: CIA-RDP91-00901R00010012
By Boris Weintraub
Washington Star Staff Writer ? .'
?
1*-;--,,,Aketimmuno
CEXTRAL irrs-ILLIGENCE AGEMCY ?
WILLIAM CASEY . ? ? STANSFIELD TURNEFI ? ' ? '?
Director
Director
-New York lawyst, Reagan campaign aide. Writing- .
?
. ?
. ,
STNTE 13 ERA FITM ?
JOHN H. HOU:MIDGE
- Asst. Secretatryr East Asitere ars4 Pacific
affairs
-CIA officer, ex-arrrhiessacbOr,
tilts IIEFENSVt4%;:,":4;;k
;.< ??? :" qt3 ? '" '40.k
447.
t
FRANK CARLUCCI - - - ,
Deputy Secretary ,
A deputy director,
CIA. .
Where have yon gone, Mrs. Robinson? Into con?I
suiting work, probably; along with Anne Wexler,i
and F. James Rutherford, and Ruth Clusen, and
Sterling Ticker, and Arnold Packer, and Jordan;
Baruch, and oh, so many others.
And where are these newcomers from? From
well-paying business corporations or business
trade groups, probably'? like Alexander Haig, and
Richard DeLauer, and Judith Connor, and Caspar
Weinberger, and John Crowell Jr., and Richard
Lyng, and RT. McNamar and the rest. , .
The Washington Star has surveyed the- prole
sioiaal destination ?Points: of top-ranking people
in the Carter' administration ? surely you remern
her the Carter administration? ? and, the profes-
sional points of origin for the Reagan., people
? ,
those who have been nominated so far, at least:I
It has been a tedious task because no, one keeps
any lists. ? ? - ?
Those surveyed include the leading White
House staffers; those-in?the Cabinet and sub-4
Cabinet jobs in each department down to the
rank of assistant secretary, the top office-holders
in the United Nations delegation and the Office
:of Management and Budget and a large numberf
of the independent agencies and regulatory com-I
missions and the flotsam and jetsam of Washing-
ton bureaucracy. - . ? ,
The results 6f the Survey a more than 30G1
:people lead to some surprising discoveries, alongi
with?some that are not so surprising_ One discov-
ery was that people can hold top jobs in the
:federal government ? well-paying, responsible
positions with the potential for great impact formillions i
? for four years and barely make a dent
. in the public cansciousness.lf is" amazing how
many of the outgoing Carter people were virtualinow !
se far as the. general 'public is con-
cerned. " ? . - z " -
:Many of the recentlY departed have no pernaa-'
nent jobs as yet, though some may have eakeni
employment since they were calledrecently.Some
.of these have tempOrary fellowships, or are plan-1
fling-to write about' their experiences,.. or.
-temporary consultants, until 'they decide 'on al
-way: to
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NEW YORK NEWS MAGAZINE
5 April 1981
HE
The Deputy Secretary of Defense calls it compromise.
But the.right wing calls it wrong.
by 1.A.RS-ERIX NELSON
32111 rim in slacks. and a yellow
.. ,. .
I. pullover, Frank'Carlucct sat at
r his desk in the Pernagon, eat-
ing a fish off a plastic cafeteria tray.
To his left were a bank of telephones:
a secure line that cannot be tapped
by foreign spies, a direct line to the-
White HOW* and another direct line
to the National Military Command
Center. As Deputy Secretary of De-
fense, Carlucci is a key figure in
preserving the nation's security. In a
crisis, all three of those phones would
ring, probably at once. .
As he ate his solitary lunch, an
Army major general sat one floor
below, reading a magazine article
headlined: "Carlucci's Record Ex-
poses Him As Real Far Leftist." The
article, in Coniervative Digest, made
Carlucci the prime- example-of Presi-
dent Reagan's "betrayal" of his hard-
core., right-wing supporters.
To the right wing of the Republi-
can Party, C.arlucci's sins are many -
-First and foremost, he seems apoliti-
cal. He is in fact a career civil servant
who, at . 50, has carried out the
policies of Presidents Kennedy, John-
son, Nixon, Ford and Carter. He is
now Reagan's highest-ranking career
bureaucrat.
To rise to the top, he acknowl-
edged at his Senate confirmation
hearing, he has had to compromise.
"Comprcnniser thundered Sen. Jesse
Helms, The North Carolina Republi-,
can. "In this desperate hour in our
history?"
The right-Wing dossier on Carlucci
goes back to the 1960s, when "as a
young diplomat in the Congo he was
associated with the policy of suppress-
ing the right-wing K.atanga secession
led by Moise Tshombe. As ambassa-
dor to Portugal in the mid-197C3,
Carlucci advocated the then-daring
strategy of resisting a Communist
takeover of the Portuguese revolution
? by backing Socialist Mario Soares.
Henry Kissinger, then Secretary
of State, ranted and raved, but in the
end followed Carlucci's advice. Por-
tugal remained non-Communist and
a member of the North Atlantic
Treaty Organization, .for which, Car-
lucd says, I take some pride."
As deputy director-of the Central,
Intelligence Agency under -Jimmy
Carter, Carlucci was accused by the.
right of helping to ?-`emasculate" the
a,gency by eliminating almost all of its
capability for covert operations. But
he defends the ag,ency. as "still capable
25X1A
of ptoducing first-class inteihgenct.
He is not the lettist fitnatic his
critics like to picture. As deputy to
Caspar Weinberger, Carlucci agrees
that American defense capacity has
deteriorated and must be beefed up.
He favors the development of a new
manned bomber to replace the aging
B-525. ? - ' - ? -
? Arid Carlucci claims to enjoy the
trust of White House chief of staff
Edward Meese. But he-acknowledges
a sense of suspicion directed toward
him from Reagan's California kitchen
cabinet of conservative millionaires.
Carlucci would riot be in the Defense ;
Department earning 560,000 salary? 1
about one-third of what he could
have made in private industry ?if !
Weinberger had not steam-rollered I
the lleaganaut" opposition to Car-
lucci by threatening to turn down the
top job unless he could pick his own
deputy. -
Carlucci got the job, but the
opposition did not die. The suspi-
cion?and the public attacks?are
likely, to continue. Weinberger and
Carleeci are both interested in foreign
policy and knowledgeabk about it.
Carlucci, for example, has closely
followed the internal political devel-
opments of El Salvador and urge'd
continued support of the moderate,
center-right coalition as it tried to
survive attacks from the extreme left
and extreme right.-
That sort of advecacy will make
him a target for further criticism from
the'Republican right. '
"It doesn't really bother. me,"
Carlucci says. -But it did bother m
father." -y
ri
?
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A2f77(71,3 APPEALED wiAoilivGTONIAN
ON PAGE 01/0 , APRIL 1981
-6
? Washington's Ullirnate Sur7,4-vor Reminisces
Bureaucrats and ahem He's Ktiown -
?After 18 years under Presidents
s Kennedy, Johnson, Nixon, Ford,
_ and Carter, Joseph Laitin is out of
government. But he remembers,
does he ever remember.' .
Maestros with the Media.;
AngasThuerrner, fanner undercover
agent and later CIA press-relations chief
, during, the agency's darkest hours. It's.
not easy to denounce an- agency whose
press chief identifies himself as "a CIA
spooks man ."
Wrongly Abused
James R. Schlesinger, former Sec-
retary of Energy and Defense, CIA di-
-rector, and chairman of the Atomic En-
ergy Commission. The most unfairly
abused official since Harold Ickes, and
that's going some. Mislabeled as a right-
wing hawk, he's really a Repiiblican
moderate with a deep commitment to
national security. He has had a superb
track record in every job he's handled.
The SeCond-most-difficult boss ever had.
Master Bureaucrats
Frank Carlucci, former deputy Budget
director, deputy CIA chief, deputy HEW
i secretary, and ambassador to Portugal;
now deputy secretary of Defense. He
knows all the power levers, warm bod-
ies, and skeletons in the bureaucracy..
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25X1A
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6,Va -PROTECtING .OUR SPIES
? :
"
7"-} ?
Tn NATION
14 March 1981
?
We present a Nation first articlein 1-124:journal
that has eVer. been.de arid for RubliCiiti6n by an agency of ,
the Federal Government, in this case the Central Intelligence
? ?
-
f.:rit44 'Z. ;
--_-'Because of the misreporting' -loose allegations and general
-
fuzziness surrounding the debate over the naming of.C.LA.
-agents,. and .the fact that-extremely diibious and dangerous'
legislation?the Thirelligence Identities Protection bill,: on ,
which hearing-S.' beg-in- April 7 in the House?may be enacted '
as a result, we asked _Philip Agee; himself a former CIA
? agent 'who has s...;?ade something of a specialty of naming his
? cm' onclam: colleagues, to explain why he does it, and w_-hat he..
thinks is Wrong with the current bill, -Which would outlaw
the .;
Agee, who -resides. in Hamburg, West Germany; agreed to
write the article but informed us that he is under a court in-
. ., ?
junction .which compels him 'toclear anything he writes
about the intelligence field with the Agency itself; lest he be.
judged in contempt. Under these circumstances weagreed,
? to publish Agee 's essay (which, as it happens, the C.I.A. lets.
stand pretty much as he wrote it) and invited agrOap of
pens to di-sit4i..s the isSites he raises. ?heir observations start'
on page 299, with the exception of former C.I.A.- Director. .
William Colby who, after reading the Agee essay, -declined
, .? ?
to partzctpate:-r7..t.
PHILIP AGEE-----
; ??
? ?
"
? ? ? -
he purpose of our cover in many places is not?-
-. to -foal the K.G.B.,7-. former Deputy
Direc-
tor of-Central Intelligence Frank,Sarlucci
foleth-e-; Senate -Judiciary Committee : last
. _
the Intelligence Id
'and many others
ment caused It)
agents-=?primarii#
lion Information .0
? almost identical bi
Oversight and hi
reaSon- to feai
; September.' Rathe-cover isieeded to preserve -C.I.A.--
- operations fro4:.ndetetion by local authorities" :and from
"foreign politieid-outcry.t," Carlucci added that good coVer-
. _
is
needed to give theUS. Government "plausible denial" of
C.I.A. operation:S arid insure that the Agency can continue
to recruit inforMants. Carlucci was saying', in other words, that
good cover is iieeded toenabie the Agency and American am- ,
bassadors to tell more believable lies, and to help C.I:A.
ficers cozy up to foreigners under false pretenses H? ?
- The Deputy Director was testifying in favor of S. 2216,?
? ?
Philip Agee is a former C.I.A. officer who wrote Inside the....
Company: CIA ...Diary (Bantam,' 1975). He now, lives In--
Hamburg, West dernArlip.r1W9917. @ffelikiftdiraeu2D*1114411
revoked his passport and the case is currently under
con-
sideration in the Supreme Court.::
97th ?_:oniiress.lt_
disclose inforinati
agents, informant
.
? ?
the-C:I.A.: and th
?;The Cd.A2cla
More difficult to
people who might
will efti?iibl
de
have become re
because, they dciti
covers of many ?c.
their effeetivenes
can serve abrok
services-in many
have become increasingly aware_ yi-,"-?aiLiu
C.I.A;-Presence.iii.Arnerican embassies and consulateS??thus
making operatiOnS" more difficult to -.Conceal, more cumber-
some and, in some-eases, more dangerous.- - ?
' The-C.I.A.:and:its-supporters in. Congrs stress that the
proposed law is alined solely at atrnalicious little group of
troublemakers-whoTspecialize iriZ,,riaming----.narnes-;-inairily,
. ? _
myself: and Louis Wolf, editor,b1J the -Covert Action In-
formation Bulletin -The question of Whether the?bill"s:nar;
row- inientiiiake.S.it an unconstitutional bill of -attairider
aside it - could :easily . be applied -against the maii-iiream
.:,
., ..
media" onee the ?!?",-fraitOrs" are:sileriee&:-The long-runt i.'itilt
wouldbe an end to practically all extra:Official exposures in
the Media' ofTiCandali and abilsethased on informit'iOn
? from.insiderst?th
Iyhi-is whree almost all the important:ex-
posures" originate .'the't t A- denies of course, thaiihi'sls_
its purpose, but:the-potential- usefulness of such,..a.a.w.,to
thern---in iirciteciiiiVe.over- and regaiiiing--- adequate; o7ier--;111
secrecy IS ' undeniable' ........ :As a -.,..result-,-..-::-.praetically - all the
mainstream media have come out in opposition to S. 2216::
1
- _?- There can -be)nooubt that an end to exposure- of the
C.I.-A:. in. the majorimeclia would be a-grievous loss. Con-
sider.the .histOrical...dmPact of Thomas Ross and .David-
Wise's book The Invisible Government, the 1967 revelations
of all the finanCial:Conduits and institutional.penetrations,
the 1974 revelations of the Chilean subversion and domestic
crimes, the leak of the Pike report in 1976, the 1977 revela-
tions of various chiefs of state on the Agency's payroll and
the series the sameyear on the C.I.A:s penetrations of the
media. That reporting gave unique insights into the C.I.A.'s
methods;:- and -without the 1974 revelations there -would
Clfr4t21021n0061AFIllObelt00112t16134eteller Commission, a l
Church committee or a Pike committee. - ? - -- - ? ? 1
Under ?the proposed law, however, Most of that main- 1
A,
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COLUMBIA JOURNALISM REVIEW
March/April 1981
25X1A
A bemused British
visitor reflects
on journalism
in Washington,
where every reporter
is a celebrity
by DAVID LEIGH
went to work on The Washington
Post last summer under the oddest
and perhaps most sentimental of
circumstances. Thanks to the friends of
the late Laurence Stern, a much-loved
Anglophile editor of the Post, I was in-
vited to leave my niche- on the London
' Guardian and take up temporary resi-
dence in Washington. NO one seemed
entirely sure what I was supposed to do
to .Washington journalism, or what it
was supposed to do to me, but as the
world's first Laurence Stern Fellow, I
plainly owed it to America to experience
.ome Media culture shock.
I was indeed culturally shocked. I
don't know what Washington Post jour-
nalism looks like to someone who. works
on The Modesto Bee or even the San._
Francisco Chronicle-- probably rather
exotic. But from the modest.converted
warehouse in the financial district of
London which houses the self-deprecat-
ing and penniless Guardian, it looks
like another. planet. After four months
with the Post, I flew back to London and
strolled back into my own offices. They
were normal. What "normal" meant
was that the story of the week was about
an elderly titled lady famous among
readers for her appearances many years
ago on a harmless BBC radio quiz show
called What's My Line? And now she
had been caught sh4iiffluire
couple of days' front-page treatment
from the whole of Fleet Street, she made
&Pei- k
On the cultural front, the major news
was that the Conservative politician who
heads the Greater London Council ?
one Horace Cutler ? had stalked out of
a left-wing play which showed ancient
Romans sodomizing ancient Britons.
Cutler wanted to cut off the state subsidy
for London's National Theatre because
he was shocked. Peter Osnos, national
editor of The Washington Post, arrived
in London during the furor. "We're so
much more earnest than you," he mar-
veled at a journalists' dinner party.
"Here you all are, doing nothing but
make jokes about buggering druids!"
Perhaps this little series of events
makes a trifle clearer the journalists'
milieu from which I emigrated to Wash-
ington ? class-bound, flippant, inept,
charming, prurient, broke.
The operation I found at 1150 Fif-
teenth Street Northwest, by contrast,
was wealthy. It was charismatic, stylish,
self-absorbed, meticulous, and showy.
And all its practitioners were celebrities.
When I read a twelve-page article in The
Washington Monthly about the Post, the
succession to Ben Bradlee, the prospects
of Bob Woodward, and the faintly acid
comments of Woodward's estranged
wife about his personality, I thought:
"How amazing, to devote all that space
just to gossip about journalists!" In
Britain nobody thinks journalists are
persons of any significance. Peter
Preston, editor of the Guardian, is
downbeat, sly, unpretentious; William
Rees-Mogg, editor of the Times of Lon-
don, is an eloquent Roman Catholic
country squire with an infallible knack
for misjudging world events (he backed
Nixon); Harold Evans, editor of The
Sunday Times, is short, gutsy, and has
an interesting love life. But no one
? would write long profiles of them and.
their newspapers for public consumption
I ease-260(401/#JIF CEOVITOIretYptlffn
in the manner of a vavnit bers am, a
portentous tome chronicling their politi-
.
eSt
So that was the first culture shock.
But if portentousness was the downside,
then the upside was a certain distinct se-
riousness of purpose that.! admired. The
Post was prepared to write at great
length about corruption in government
contracts, or the unsavory history of
Reagan's advisers, or the recollections
of Vietnam veterans. Of course, it is
easier to have a righteous code of ethics
on The Washington Post than in Britain.
The Post never pays for stories. Well,
the Guardian doesn't either, but that is
because we do not have any money.
Down at the bottom end of the market,
where the mass-circulation national tab-,
bids compete savagely, you cannot get
near trial witnesses and controversial
footballers for the forest of waving
checkbooks. The Post staffers do not
accept free trips and free gifts. On the
Guardian, the motoring correspondent
is plied with goodies; the defense corre-
spondent inspects NATO forces cour-
tesy of the ministry of defense; the travel
editor is a source of free holidays. Once',
when Air France thoug'1.1 might be
worth cultivating, I wa.. flown out to
Marseilles for an expenses-paid winter
weekend in the sun, hire car and luxury
hotel thrown in.. As I. sat by the
waterfront toying with a plate of sea ur-
chins (delicious with chilled white
wine), was 1 being corrupted?
It cheered me slightly, surrounded by
high-minded candor, to discover that
there were, in fact, stories The Washing-
ton Post would not print, even though
they were the talk of the town. I very
soon heard about the congressman who
had recently become embroiled with a
transvestite. Quite a scandal brewed up,
but the congressman went to Bradlee
and pleaded with him not to print the
story. Bradlee suppressed it,; saying,
rightly, that a man's private sexual en-
0 lilt.Fliffinta
ere his own affair".
141.1S-11
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?7: !X LE 2,21'
THE WASHINGTON POST
27 February 1981 -
Rowland Evans
And Robert Novak
The Reagan administration, to every-
one's surprise, is stalling a decision on
where to base the MX mobile missile in
a delay that pits the Pentagon against
the State Department and deliglits the
environmentalist lobby.- :
".
The delay over whether to base this
country's most vital new weapon.qn land-
or sea is fraught With potential clangers.
It raises the - disturbing question- of
whether President Reagan, who is totally
f committed t.o- rapid MX deployment, is
kept fully abreast on- whether, and how
his desires are carried out bycom ting
' bureaucratic riowei centers-
Ronald .Reagahimse1f.is?ly to
blame for the latest procrastination over
where the United States should base the
10-warhead :Missiles desperately needed
to give the U.S. land-based sst?pro-
tection againsVpossible Soviet4attack.
Reagan pledged while campaigning in
Nevada and :Utah _ take, it,,lopk ? at
Jimmy Carter's decision to base tke
systerwthere despite fierce:environ-
mentalist opposition. -
= But: what should.' have-; beertoe: pro
forma Pentagon:review with a foregone
conclusion may be heating :up into..
major
major test. _Elvs&g_s_e_e sea-based
? men a ition he es . used' 'while
deputy director o tie- F eputy
:Defensebe=re...:_aiii.,_icci.ank De-'
fense Secretary Caspar. Weinberger pri-.
vately warns that environmentalist law-
suits could conaeivably tite up the darter-
approved Nevada-Utah plan "for Years."
But Weinberger says he has andopen
mind on...basing and &public cammit- ?
rnent not tO let the new study deliy de-"
ployment of the system, expected to
start in 1985.. :
I
Why, then, has Weinberger told his
panel of experts they have until "June or
July" to raidce their report? The ques-
tion is particularly relevant for another
reason: National security and budget of-
ficials in Reagan's White House are com-
mitted to Nevada-Utah basing. They
worry that another long delay in the
ever-receding "final" decision will do ex-
ectly what...Weinberger privately; Warns-
against -,,give envirorunentalists1 that
rauclImore time to Mobilize for attotal
assault on the Nevada-Utah plaw'
?Becretary. of State Alexander -Haig is
quietly advancing a blockbuster ration-
ale of his own against what the Pentagon;
calls "going to sea?? If environmentalist
? and other political pressiares are allowed-
to overturn the Nevada-Utah decision,
Haig predicts an irreversible torr?nt of
political reaction in Europe against mod-
ernizing . ? NATO's. land based nuclear
'Boiled down; that-means environmen-
tally sensitized West Germans would
physically block the nuclear moderniza-
tion program agreed to by North 'Atlan-
tic-treaty states (NATO) in December.
" 1979 if . :the United States knuckled
under to political threats or legal suits by
its own environmental lobby. , ;'.
? European statesmen visiting he have
?? Made this point hard to Haig. They rea-
son that any U.S. decision to "go to sea"
would be interpreted as a valid excuse
for. Europeans to demand that NATO's
new nuclear weapons should alki be
based on boats (which military Special-
ists say would be impossible). Whorl the
visiting Europeans warn Weinberger
that moving the MX to sea would create
massive political problems for NATO, he
not only appears to be unimpressed but
at least on one occasion argued thavsea-
basing the MX might be the best de-:
.ployment in view of environmentalist
_
delays?, ? ?.?2
,
- .,..?Yet President Reagan has a precedent
to ask Congress for .a special exemption
- from lawsuits and other legal delaying
actions now being planned by the envi-
ronmentalists (by no means confined to
Nevada and Utah). Congress gave) the
Alaska' pipeline project such an eiemp-
tion nearly five years ago. The iiroject
was built to specifications laid dovyn by
the Environmental.Protection Agency,
, but it was immune from most spe -in-
terest lawsuits. ,
+ 0001-6
A Reagan request for similar' treat-
ment for the Nevada-Utah-based :MX
would get quick attention; the national.,
security aspect is far gayer in protecting:
America's land-based missile syStem.
than in any oil shortfall..
Moreover, White House advisers say
that-the courts have been friendly to
Uncle Sam in rejecting environmentalist
lawsuits involving military work. Fesleral
courts have been lath to grant inainc-.
five- -relief when government attorneys
stake their defense on grounds sgit na-
tional securitY;:,-;r 2;4.4' 7 ?
. Accordingly, . the-,preference-Oft ICar-
hicci and other Officials for a seti-liesed
system has little t.o do with environtnen-:
talists and much to do with arcane de:-
bate over weapons strategies that was re-
solved last year by the Pentagon after!
years of agonizing indecision. iNdloreinde-i
cision is nOt needed at this point; Which;
is why some White House aides hope.
Ronald Reagan himself end the
elay forthwith.
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Approved For Release 20(111/2 LDP91-00901R00010C
STAT
120001-6
(BY JUAN WALTE)..
WERINGTON (UPI) -- THE. -SENATE CONFIRMED FORMFR,DFPUTY CIA
DIRECTOR FRANK. CARLUCCI AS DEPUTY DEFENSE SFCRETARY TUESDAY RFTER
CONSERVATIVE LERDER. CHARGED HIM WITH HELPING. LEFT-RING CAUSES IN THF
-
UNITED SATES AND. ABROAD.
THE VOTE WAS
ATTACK CAME FROM SEN, JESSE HELMS, WHO ALSO OPPOSED
THE APPOINTMENT OF DEFENSE SECRETARY. CASPAR WEINBERGER, CARLUCCI'S
FORMER BOSS AT THE BUDGET OFFICE. AND HEW. (NOW HEALTHAND HUNAN
-SERVICES)- IN THE NIXON ADMINISTRATION.
HELMS DROPPED HIS FORMAL OPPOSITION-TO CARLUCCI EARLIER IN THE DAY
AFTER BEING ASSURED BYWEINBERGER THAT A FELLOW- CONSERVATIVE, FRED
IKLE, WOULD BE NAMED TO THE THIRD-HIGHEST PENTAGON. POST AND GIVEN
ADDITIONAL_ POWER OVER POLICY -DECISIONS,
BUT IN A LENGTHY SENATE SPEECH, THE NORTH CAROLINA REPUBLICAN
ACCUSED CARLUCCI. OF HAVING BEEN."AN-EFFECTIVE PROTAGONIST OF SOCIAL
REVOLUTION" WHILE DIRECTOR OF THE. OFFICE OF ECONOMIC OPPORTUNITY IN
? HE. SAID CARLUCCI- APPROVED MERIT GRANTS TO "LEFT-WING GROUPS ...
?AND WAS USING TAXPAYERS' MONEY TO FINANCE LEFT-OF-CENTER AND EVEN
MARXIST.- ADVOCACY.'
tNOHE CASE, INVOLVING A HINES? COUNTY, CRLIF1i RURAL LEGAL
ISISTANCE PROGRAM HELMS SAID, "MR. CARLUCCI'S ADVERSARY WAS NONE
JTHERIHAN THE THEN GOVERNOR OF CALIFORNIA, RONALD REAGAN."
THE SAME TECHNIQUE OF PRE-EMPTING MARXIST-LENINISM BY BACKING
MARXIST LEADERS WAS EVIDENT.- IN HIS ACTIVITIES AS AMBASSADOR TO
.PORTUGAL ,"-SAID- HELMS. HE ALSO HAS ACCUSED -CARLUCCI OF ASSOCIATING
WITH SOCIRLISTS WHILE, SERVING AS A U.S.? DIPLOMAT IN. THE FORMER
-BELGIAN CONGO IN THE EARLY060S. .
HOPE THAT (AT THE PENTAGON) WE DO. NOT HAVE AN ASSURED
'TECHNOCRAT SUBSTITUTING HIS OWN IDEAS- FOR THE POLICY OF THE-REAGAN
ADMINISTRATION," HELMS CONCLUDED.
BUT SEN. JOHN STENNIS, D-MISS., RANKING. DEMOCRAT ON THE SENATE
ARMED SERVICES COMMITTEE, SAID CARLUCCI IS A MAN WHO HAS THE
REPUTATION OF R. CAN-DO MAN.". -
AND SEN. BARRY GOLDWATERJ R-ARIZ., RECALLED CARLUCCI'S 075-078
TENURE AS U.S. AMBASSADOR TOPORTUGAL, AT A TIME THE NATO NATION WAS
GOING THROUGH A PERIOD OF POLITICAL INSTABILITY FOLLOWING 40 YEARS OF
DICTATORSHIP.
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? "IF IT HADWT BEEN FOR CARLUCCI! WE MIGHT HAVE !til.:1"
1...-i PORTUGAL TO
COMMUNIST INFLUENCE!' GOLDWATER SAID. -
ALL-SIX VOTES AGAINST- CARLUCCI WERE REPUBLICANS: SEN. HELMS AND
JOHN EAST!' BOTH OF NORTH CAROLINA; ORRIN HATCH OF UTAH; BOB KASTEN. OF
. WISCONSIN; AND JAMES MCCLURE AND STEVEN SYMMS!' BOTH OF IDAHO.
''- CARLUCCI!. 501 WAS BORN IN. SCRANTON; PA.I.? AND JOINED THE. STATE
DEPARTMENT .IN 1956..IN ADDITION TO SERVING. IN PORTUGAL! HE WAS
STATIONED IN SOUTH. AFRICA!. ZAIRE! ZANZIBAR AND BRAZIL THROUGHOUT HIS
DIPLOMATIC CAREER..
IN FEBRUARY 1978J HE WAS 'APPOINTED BY JIMMY CARTER TO BE DEPUTY
DIRECTOR OF THE CIA.
- UPI-02-03'78i 07:56 PES
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ART. C LI]
ON
_
--.., By Phil Galley
WashiintOn Stat Stall writer
- Bobby Ray Lathan: is a whiz of a
spy Who has never been out in the
cold.r e ?
, Satellites, raiCrowair'es; and corn,.
paters have taken ;Much of the chill,
.out of modern-3(14f eSp- image, and.In
;man is cousiderectimaster of these!!
tools.
- As " the Reagan:administration's.
choice to be the No?.2 an at the Cen-'
tral IntelligencetAgency, Navy Vice:.
Adm: Inman, a. 49-year-old wOrk- -
abolic;.is getting a fourth star the
price-he exacted for-taking- thejob-:,
?and the kind of.praise that inteLat
ligence officials rarely. receive:.
?The Senate Intelligence Commit-
tee,?:_which holds hearings on his.
nomination today,,is expected to ap--
prove Inman!st- appointment-,
unanimously -
. Inman's :selection:An a- political.'
sense; is a master stroke. It is reassura
ing both to those who want. to see,
U.S. -laintelligencee operations
'strengthened and teithose-who dcin't7
want.. to -, see .ethe'.1-,CIA,: crashing
through the:' forest.;,in..; its. previous
"rogue elephant', rote4
Sen.: Barry .GOldviater,: chairman
1. of the Intelligence Committee and a
'harsh critic of efforts to rein in the,
Min recent years, thinks as highlyof Inman as does former. Vice Presi-
dent Walter. Mortdalei who. as a sen-;
ator, was involved in efforts to curb-
,:
US. intelligence activities.:
,
; "There's not a mait on hun,
says-
a former admiral wild worked with-
later in the-Defense Intelligence
? AgencY. "He's the kind of profession-
al -who can 9helirmake ourintellit
gence ope htions ;both effective and,.
r
?
responsible "/
.5,
Since 1977 Inmarthas. headed the
'National Security Agency, ;. the na-
tion's largest and most sophisticated
intelligence .Organization, cracking
enemy codes, and analyzing infor7
!elation snatchedlrom the--,ky by so-
:phiiticated instinmenti"is it passes
,between . g,overtunents.7! and...ether
....Sources?, a ? ?
?Sometimes agency's
:eavesdropping extends -c:e private
?citizens. Billy. Carter is one exairiple.?.
,Barlylast year,:while.theJustice De-
Partthent,was invesVibiltogogattFiegi Release
dealings with Libya, ,the.;agenCyj
f picked' up. inforthatiortra
.frointellW.
gence sources that Libya was about
THE WASHINGTON STAR (GREEN LINE)
3 February 1981
.:rrp
orninee o No. 2 at CI
alled Master of Spying
25X1A
Inman passed the information to
then-CtA director Stansfield Turner, i
who, took it to the-White-House and
to then-Attorney General Benjamin
Civiletti.
4s. deputy to CIA. DirettarWilliama
-al..!..C.aSay; 'who was-air OSSioperativem
.during ,,IVcirld 4.111.1nmaa will ;
? brina,,.. backgrounkitO, the agency
? that will complemeritcasey'a Some I
Oen': See Inman.becoMing the real ;
Master of U.S. intelligence because
of his talents.
- Casey, 67, is- ,even by his
friends, to be somewhat. disorgan.--
ized when it comes to details, occa-
sionally. forget ul and:, Oat. of touch
with modern intelligenee tech:
niques '
' ?
nman is ideal to back up Casey," ,
said a former intelligence official
who knows both men:"Casey can
-keep his foens on the big pictureand !
-Inman will make the place a proles-
SiOnal -Operation again. Inman is
strong in nearly every, area where
Casey is-weak." ,
The Casey-Inman team is in keep-
ing with CIA tradition. When a civil!
Ian heads the agency, the deputy
spot goes to a military man, and vice
versa-The-former CIA director was
_Stansfield Turner, a Navy, admiral,
and his deputy was Frank Carlucci,
a Civilian who has been tapped by
.Defense Secretary Caspar Weinber-
.ger for the No. 2 post at the Pentagon.
Inman, a native of Rhonesboro.
Texas,: entered the Navy after !
graduation frond the :University of
Texas in-1950. He became an ensigul
in 1952 and advanced through offia
cer ranks-until his promotion tOiice-.1
admiral. in 1976:z.a.a.a;.e--?;-:''..,
His career includes service
-'as-
sistant naval attache in Stockholm, 1
7,Sweden,.! key.rlistening7. post. fori
.events .in the Soviet Union, and amis.:,
tent chief Of. staff for intelligence-1
under the commander of the Pacific.1
Fleet in 1973-74-.D ur ing the following),
.'tlaree years he-served as director of
:the Office, of:naval Intelligence' iti:t
IWashington,-and-as.Arice7director Of
the Defense liatelligenCe Agency. He'
named head of the National Se-
curity. Agency !!::
''. Little iS,knoWn. about Innian be;,1
yoncrhis:ptisfessional Wei', even- by-,
his former: associates. Retired' Adm.;
:Rex RettaiinsiNkrho worked with In-1
. ?
Inman:. "He. is. a first-class officer-,;.
? competent-and professional in. every -
respect When he. has something to,
say, he says it Beyond that4I
know: what to say.".! JC:
Z On Capitol Hill, where lawritakers
have been impressed with Inman's
_briefing skill a; he is known as a
? straight-shooter-who Use-3 facts. to -
make, his. points and keepa his per-:?
tcislaimself unless2.
.asked-:fou them;
Inman also.has.de monstra fed that:-
he
is capable of avoiding a kne.e-jerk;.
-reaction in dealing with such ques-a.
tions as homosexuality iri the ranks .
of intelligence officials. Last year,;
for example, he reportedly refused.
-to oust a security agency analystwh -
- was found to be a homa3exualaIn-
-Lan even allowed the-man to keep
his security clearance.',:*
That raised some grumbles inside 7
- intelligence organizations, which
generally dismiss- homosexuals-nal.
the grounds that they are vtiinerable,-
to blackte.ail attempts.. ,
?
VICE ADNI. BOBBY R. INMAN H
Approval expected ;
20gemi1R cRiffPVIrsiy3tPiliZQ00100120001-6
ence ? remem ers.' his cornier-
'colleague:asa -WOrk`aholic'With
'outside.actlirities that I know bf.'
* NEW
, A vrmd For Release 2006/01/.Alri:KCIA-ADSP91-00901R00010
os nt.G21 -- 25 JANUARY 1981
BATTLE BERK; liyAGEp?
. ON MILITARMCY
? ?
- ,
-
S66retaryWeinb:eiger's SlaW Start
?
in-Taking Control of Pentagon
? T.. ? "'\-'11.-(?? '3 -11'7
is -Seen Fuelirig Strugile
,
By RICHARD HALLORAN - -
sie-eta tone Nsw Yo;li Their-
WASHINGTON; lin; 24.
sided tug-of-war over military policy has
broken ont within the Reagan Adminis-
tration; according to officials in the Pen-
tagon, on Capitol Hill and in the White;
House. -1,:tee eafin ;e7,-ferianie4i. P
The conflict; "the 'officials;Yeaidn'hae
sharpened largely because the new Sec-
retary of Defense, Casper NW Weinber-
ger, arid his closest associates have ? been
slaw to-take control. 7 _ 7%:' ? .
Struggles Such as this are: common-
place among newcomers \to power in
Washington, but this one appears to be
the most complex of the new Administra-
tion_ ?ee efeeeene r
Mr.'. Weinberger,- a formeie'Vederal
budget director, has been preoccupied
with advising the new President on the
budget and economic policy; according to
Reagan officials. In addition; they said,
he- has been hampered because he ex-
pended much political capital by insisting
on-naming Frank C. Carlucci, a longtime
'associate, as Deputy Secretary; despite
objections from Influential Reageir sup:
posters.,
*1:4111SeleettnS
For tho' reastins,: plus his ecknowl,"
edged lack of familiarity with Military
issues, MieWeinberger has lagged in get-
ting central of the budget process in the
Pentagoaethattswill determine much'. of
military Policy for the next year:He. has
? also fallen., behind in naming his team to
take charge of the complicated military.
and civilian 'bureaucracy in- the Penta-
gon, based on. standards that MinReagan
set afterehis election when he:proralsed
that ltdsiAerninistration evould, ;tit, the,
wound stunning n'YIV---7--ina'
_ -In addition. Mrecarlucci, who was the
Deputy Director of Central 'Intelligence
In the Carter Admirdstration, has contin-
ued as acting director of the Central In-
tiaigence Agency, which has distracted
him from his work irt the Pentagon., a
The consequent delay, according to the
officialsehas permitted other centers of
power on.. military issues to -emerge..
? Among those inVolved in this struggle are
Senator. John ..G.:-Tovier; Republican of
Texas, theenewechairman of the Armed
Services Committee; conservatives led
by Senator Jesse Helms, Republican of
North Carolina; Secretary of State Alex-
ander M. Haig Jr., and staff officials of
the National Security Council such as
William R.. Van Cleave, as well as other
White House officials, .
Mr. Haig, the new Secretaiy-of State:
put his imprint on the Administration's
foreign policy swiftly despite Democrats'
attacks on., him; at .Senate' confirmation
hearings.. nen . . '
? Tower's Expanding Influence .
, e ? ,
;Senator Tower was a surrogate for Mr:
Reagan on military issues in the. cam-
paign and has continued.: to advise the
new President.. He moved quickly early
this month to .Ove subcommittees a-
stronger voice in overseeing the.Perita,
gab. His own staff has prepared proposed
changes in the current military budget as
well as the next one. . - -
'Next week he plans to hold hearings, at
wlaich Mr. Weinberger was scheduled to
testify, on the. nation's military posture.
He has set Feb. 5 as the informal deadline
for. completing.those hearings and on
ndminationa for the, senior, staff in the
Pentagon, and Feb. 2,3 for beginning
hearings on the budget...: .
,The Senator?has said he wants to add
$.11 billion to $14 billion to the current
military budget, while Mr. Weinberger is
looking for ways to hold the increase to
the $6.3 billion, as proposed by his prede-
cessor, Harold Brown. . \
a ;Senator Helms vigornusly opposed Mr.
Weinberger's confirmation on the Senate
floor. His expressed views parallel many
oa. those held by Mr: Reagan's still for-
midable "kitchen cabinet!! of California
blisinessmen, who have accused Mr.
Weinberger of being unfaithful to cam-
peign pledges' to put heavy muscle into
the military. Mr.. Helms has vowed to try
td block the confirmation of Mr. Carlucci,
accus by some conserva-
tfIres of havingehelped to weaken the Cen-
tral Intelligence Agency by cutting bask
covert c2perations and dismissine ex-
perienced people.
A
A
120001-6
25X1 A
Move to Oust Chief of Staff
Sena tor Helms has also asserted that
he will seek to have President Reagan
dismiss Gen. David C. Jones, as Chair-
man of the Joint Chiefs of Staff, for hav-
ing supported former President Carter's
military policies. That move seems cer-
tain to set off a bitter fight, unless Mr.
Weinberger sacrifices General Jones.
Mr. Van Cleave, who will serve under
Richard V. Alien on the staff of the Na-
tional Security Council; had led a transi-
tion team on military policy and planned
to give the new Secretary recommenda-
tions on budget revisions and staffing of
the Pentagon on Jan. 2O.'..:
; Mr. Weinberger's abrupt. dismissal of
Dlr. Van Cleave and his team in Decerne
tier took the steam out of that effort. More
important, Mr. Van Cleave had' expecte&
to take a senior position in the Pentagon
from which he could influence military
policy. Administration sources say he
,seems certain to try that from theWhite
House now.- - - , ?
In addition, Mr. Weinberger has had
disputes with other White House officials
over his insistence on naming his choices
for his senior subordinates in the Penta-
gon, rather than Reagan loyalist's, -
Still, officials, friends and others who
have known Mr. Weinberger since his
earlier incarnations in Washington as Di-
rector of the Office of Management and
budget and as Secretary of Health,
Education and Welfare asserted that his
ability to take control should not be 1111-i
derestirnated. Both he and Mr. Carlucci,,
they said, are "quick studies" who can
master complicated issues swiftly.
Those who know Mr. Weinberger said
he had demonstrated considerable point-,
Cal skill in bureaucratic infighting. FI-4
nafly, everyone agreed e Mr. Weinber4
,,,c'eer's unquestioned source of power is Ids!
long and close, relationship with Presi-
dent Reagan, a relationship that so fari
has not been weakened by the struggle'
here.
? es race- e
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Sall= AFP NEW YORK TINES
ex Pnt031. 25 JANUARY 1 981
2 5),c1 A
001-6
Reagan's Shift to Center!
Bring Attacks From ightji::
F The following article is based on re- il ' ..Many Senate Republicans, N,vhose sup-
porting by Bernard Weinraub and Judith 1 port Mr. Reagan needs to Mull his major
Miller and was !written by Miss ;Willer- ?,;,! campaivi promises. , are deeply angered
. . :,eoe-ear,--- that- of conservatives who served on Mr.
? . , ...-
- --;:n;'? ? - -43ecial-i?TP"ga'w-Y?Tkrune5 %i.e.. elee...4 17:Reagan's national security and foreign
' WASHINGTON; Jan. 24? In. its first 'policy transition teams have been virtu-
days..ia, office,. the-Reagan Adrninistra-,, 4-- ally ? excludedfrom Senior Government
tion has found itself under attack: frome i:posea,
: , ?.--. ---eeiTee . : .?`? :".i'....re--, -
conservative . legislators and activists 1 lae Secretary. of Defense Caspar W:.Wein-
who were among Ronald Reagan's earli4 berger, for example, dismissed the entire
est and most ardent supporters.:- - butt his
team on defense the day: after
pe attacks focus on two separate, his nomination; - and no member of the
overlapping themes: the earning -of transition team for the C.I.A. has been
"moderate" and i"nonideologdcal" Re-
publicans, and even Democrats,? to Cabl-'
net and other high-level jobs, and the fear
that' these nominations. indicate. Presi-
dent Reagan willnot carry out his conser-
vative campaign pledges.. , , ' . 't-',? ,'..
"We've all been had," a conservative
aide on Capitol.Hill concluded in an inter-
view yesterday, "Wet boys on the right
have gotten snookerecl."
In the last week Senator Jesse Helms,
Republican of North Carolina, and the
Senate Steering Committee, a loosely
knit group of 20 conservatives; attempted
to block the nominations of Frank C. Car-
lucci, designated to be Deputy Secretary
of Defense, and four sub-Cabinet official
in the State pepartment
'Gerald Ford Republicans'
Beyond this, members of the party's
right wing have expressed dismay at the
appointments of Donald T. Regan as Sec-
retary of the Treasury, Samuel R. Pierce
Jr. as Secretary of Housing and Urban
Development and T. H. Bell as Secretary
of Education. They view these men as
e'Gerald Ford RePublicans." teX.rn
? ? ?
Mr. Carlucci, who held the No. 2 post in
the ..Central Intelligence Agency-under
President Cartereis regarded as "a lib-
eral, a friend of WaltereMondale's,"- ac-
. cording to John T'eDolan, chairman of the
National Conservative Political Action
Committee, which helped defeat several
'liberal senators in the1980 election. nee!?
"I .think Reagane has chosen to. sur-
round himself, with People who sithply do
not share the same vision of America that
''he has," Mr. Dolan said. "It's mind-bog-1
gling that conservative, pro-Reagan ac-
tivists are being bumped off job lists,
while people who have no commitment to
Ronald Reagan are kieing given jobs." ; ?
Other. conservative Reagan leyalists
are equally shaken. "Sbmething has gone
. very wrong," said Ricahrd A. Viguerie, a
:conservative publisher and direct, mail
expert. .. ?
Howard Phillips, nation-al director' Of
'the: Conservative Caucus;.- a lobbying
:group, said, "What I fear IS that in the
:1984 election judgment will be-psd og
;true conservatism is4IplitZ0 ? gro
ifacte been tried.", eeiVe.,feeeee-e. ; think the personnel people and Ed Meese
Arent to . ruffle the waters and .are I
appointed to a senior past in that agency.
More. broadly, Senator - Helms and
others are known to De concerned that
William J. Casey, Director of Central In-
?? telli- ence, has a ? sarentiv re ected major
reorganize ton propose s aim- at
s -nu a enin nation's intelligence
cepa. lines. ese proprnals were ma-de
1 in. reports prepared EY the transition
, team and by the :Heritage Foundation, a
conservative reeeaech groap.
-,- Ra Senate Tactic Invoked
Mr. Helms has put a "hold" on Mr.
-Carlucci's Pentagon nomination, a Sen.,
?ate tactic rarely invoked but traditionally
'respected, to block ,Senate action. on his
appointment, and has told Secretary of
. State Alexander M. Haig Jr. that he was
' prepared to place similar holds on pro-
spective State Department nominees that
the Steering Committee oopuees. '
They include Lawrence S. EagebTirg:
er; a former aide to Henry A. Kissinger
and now the United States Ambassador to
Yugoslavia who is expected to be nomi-
nated as Assistant Secretary of State for
European affairs; Paul D. Wolfowitz, for-
mer Defense Department 'official in the
Carter Administration who is Mr. Haig's
choice for director of policy planning;
John H. Floldridge. former United States
Ambassador to Singapore, who served
under Mr. Haig on the National Security
Council staff; in line for Assistant Secre-
.tary for East Asian and Pacific affairs, I
and Chester A. Crocker, a Georgetown
University professor who is expected to
? be named Assistant Secretary of State for
African affairs. - . . ,
, ? :Competuiding conservative anger over
'specific appointments is the vague but
powerful sense that Reagan loyalists, in-
cluding reonal and state directors in
last year's 'campaign, have been by-
passed for jobs in favor of traditional and .
'nonideological bureaucrats. : - -, e ? -
? . - ..? _... . ?
' . .; - Illinois Campaign Chairman Cited ?
--'.,"Some of these people have absolutely
no interest in Ronald Reagan, do not care
what he stands for and May have actually
voted against him," said a key Senate Re-
agiSibliteZiitiadriee.? 1(-Venreit". eAuren..tde
just more comfortable with- establish-
? ment ldnd of folks."
Edwin Meese 3d, the White House chief
of staff; E. Pendleton James, a longtime
personnel and recruiting executive, and
? Peter McPherson, acting counsel to Mreel
Reagan, are cited as among the key fig-
ures who have- selected Administration'
personnel.
Mr. Vigurie cited the example of Dan
Pott, chairman of Mr. Reagan's cam-
paign in Illinois last year, who sought the
post of Secretary of Education that was
given, instead, to Mr. Bell.? -
Right-wingers are also angered at re-. I
ports that Donald J. Devine, a conserva-;
tive professor of political science at thel
University of Maryland, has not been--;
named director of the Office of Personnel"
Management because he is "too- conserel
vative.' ' ? ,
,4)
Some senior Republicans, including thej
Senate majority leader, Howard H.?
Baker Jr. of Tennessee, do not see thesei
signs of discontent as a threat: ?
? Asked if. he believed that the Steering-
Committee might thwart the Republican
Party's ability to carry out the Presize:
dent's program, Senator Baker replied,',,
"I do not believe it constitutes a threat tne
Ronald Reagan's policies."
? Temporary 'Hold' to Be Honored .1
I Mr. Baker, pressed on whether he
would honor Mr. Hehn s's request to put a,
"hold" on several nominations, replied.
that he would respect any Senator's re-"A
quest for such action for 24 hours. He
Iridi-
cated, however, that he would not honor,
such a request indefinitely and that ac-
tion on nominations was' essentially "a:,
leadership decision." ?
Other Republicans on Capitol Hill and
? elsewhere saY, however, that the Reagan
. Administration and. thePresident's con:
'.sereative constituents may be heading
for a series of confrontations whose outd
come could imperil the new Adrninistraw
tion's promises of swift and dramatic ad:',
tion to solve the nation's problems. . ?
? Nevertheless, the conservatives seemf?
unwilling to back down. They maintain*
that the hiring and promotion of nonloyal-:
ists, which has been called' an effort to
broaden Mr. Reagan's political base,
weaken his programs and serve to "beee
tray" his strongest supporters. ?
"4
"To say that Reagan has to employ,:
country-club, silk-stocking George Bush
Republicans is garbage," Mr. Dolan said.' 4,
"That didn't win him the election. He won 1
by broadening his base to the ethnics, the
blue-collar vote, the born-again Southern l
Democrats. ? , I
"Reagan has a Commitment to thesel
people and he's got to live up
;.7
, winbybeingri
amlo
he's conserva-
tive."A
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A.1.:.1T I C1.1.1 AI1EAR.1.11
0 ,is.4 FAG 4._
NEWSWEEK
19 January 1981
STAT
120001-6
. Eagleburger, a former aide to Henry Kissinger, to the
Is Reagan Not a Reaganite? No. 3 spot at State, Under Secretary for Political Affairs.
Fearing confirmation trouble from Senate conservatives like
He hasn't even been inaugurated yet, but Ronald Reagan Jesse Helms of North Carolina over the Kissinger connection,
is already disappointing the right-wing groups that have sup- Haig named Eagleburger to a lesser post, Assistant Secretary
ported him for years. They are angry over Reagan's choice of State for Europe.
for Education Secretary, Terrel Bell, because Bell supported 'Guns': Defense Secretary-designate Caspar Weinberger did
the creation of the department last year. They are worried not give in so easily. Despite strident opposition from the
that R..eagan may decide not to abolish the departments of right wing, he named Frank Carlucci, his former deputy at
' the Deloartment of Health. Education and Welfare, to be Deputy
Energy and Education. They fear budget chief-designate David
Stockman may not cut enough Great Society programs and
Car-
they are upset by reports that individual tax cuts may be
Phillips, director of the Conservative C'arlacci vs. Helms: Rancor from the right they worried that neither he nor Wein-
Defense Secretary. Helms and other critics argued that ar-
lucci, now deputy CIA director, failed to blow the whistle
postponed. Finally last'_week, Howard on verifying the SALT II treaty, and
01 berger has any defense experience.
Caucus, got fe& up after Treasury Sec-
retary-designate Donald Regan said he
could tolerate a Federal budget deficit.
Phillips sent Mailgram messages to ev;
ery U.S. senator urging them to vote
against Regan's confirmation. "The
Conservative Caucus," he warned,
"will make surethat your constit-
uents are aware of your position on
this issue.
The mounting pressure from the.
right
right did succeed in forcing Secretary
of State-designate Alexander. Haig to
change his plant to name Lawrence
.AtY)
muc Bruce Hoert
Instead, they backed William Van
Cleave, who headed Reagan's Pentagon
transition team, for the No. 2 spot. But
Weinberger and Van Cleave had a fall-
ing out last month, and it appeared that
Van Cleave would be out of the defense
line-up permanently. "It got ideologi-
cal, people started going for their guns,"
one transition aide said. The hard-liners
will be closely monitoring Reagan's
choices for other sub-Cabinet posts?
and some are already asking whether
Reagan himself is really a Reaganite.
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4321=
ea P.103
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NEW YORK TIMES
16 JANUARY 1981
U.S. MIGHT RIMER
REVIVING THE ABM'S
?? - By HEDRICK SMITH
:07 special to Thr New Yorialates
?
WASHINGTON, Jan:. -15 in its drive
to improve the nation's strategic posture,
the Reagan administration will consider
? reviving plans for an antiballistics mis-
? sile defense system and basing a new mo-
bile offensive missile at sea rather.than
:on land, Caspar W. Weinberger, the Sec-
retary of Detense-desi gime te. said todav,-
**144f-X-Writ4E-X-X-**
!.. SupporO,Rapid Deployment 'Force
,
On another topic, Mr. .Weinberger said
be felt it was`'enormously important"
br the-United- States, to, proceed with
development of a rapid deployment force
bar -crisis dirty in the Persian Gulf and
?lather troubled areas. :)-y":: . ?
Mr. Weinberger also insisteirtbat while
be had pushed hard to have Frank Car-
[ lucid, deputy director of the Central Intel,:
ligence Agency, picked as his deputy over
the: opposition of influential Republican
.?conservativesT-iteLhad-- never- told Mr:
Redian or his aides that he would not
serve in the cabinet if Mr,- Carlucci was
- "I never "gave any 'ultimatums," Mr.
'
We ger said. "It's not ray style.
?PCOMPTED
25X1A
-6
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?
Approved For Release 2006/01/30 : CIA-RIDP91-00901R000
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Approved For Release 2006/01/30 : CIA-RDP91-00901R00010012 001-6
ARTICLE THE WALL STREET JOURNAL
16 January 1981
-
A Special Weekly. Report From
The Wall Street, Journal's
Capital Bureau
-
CONSERVATIVES GAIN in struggles to
install their own in key Reagan posts.
They feel reassured by appointment of
supply-side economists to top Treasury jobs.
Added comfort: The tax-policy post going to
Norman Ture is raised in rank. Tax-cut en-
thusiasts still hope to get an influential berth
for a special favorite, businessman Lewis
Lehrman. Some applaud the expected choice
of Murray Weidenbaum as top economic ad-
viser:
Incoming Defense chief Weinberger ap-
pears bent on picking his own men, for some
high .Pentagon posts,; despite protests from
hard-liners. But his probable choices, includ-
ing deputy CIA chief Carlucci as No. 2 man,
sue no so ies. uc. we -Known ar iners
as -Paul Nitze are considered for the No. 3
Pentagon slot and other influential jobs.
? Building-industry leaders are favor-
ites for top HUD posts. but some Rea-
gan aides want an economizer. who ?
would bear down harder oil., costly con-
struction subsidies.
tre
STAT
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STAT
_
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aiitTICLE Sr....111t110
PACM..e
CHICAGO TRIBUNE
15 JANUARY 1981
00120001-6
7-1t tkto,-4-7,-e?
ariutti nomination
Some,
somft: carts ir v tiv RePub1ica4S--- : OfiL4 et ifansgsrat iudist;:iiliti.
strocigiy,:i.oblact: to ths-:niznination. t.the Dipartment 1Haa1th, F.dueatio'd,
14-Yank. Caducti to los Caspar Weintmor-,..-: anal It Wars. '-
tees! deputy:,searetary: of defensa.--Ther As'anitntssedor714
? feel he did root tight hard stouts tri?Ki, 16-11-trir
ettritnt -job as daptity., director i5f-; the h 2daft' xmL_Iktiliklititguid.
Cintiral Intelligence Avner ta preseryS ? polky that -helped; that totteexyl arold
v1tOrous, U.S. covert artinat prnsrani' Communist;;, Pft
ahrtiad..-He. has,- in effect, _
- 'been tairitaxl ap:painteti evesmand_d
?hylis ionneationsr.ith the Crter siI the cr..1c-Ith***'..r.sslisttf.sindst.th.,attaaki
iIrbo. of',itincessicinal mistilitees and lictiderf''
i.;;;tboi fcr -'..rhaging.'iitit !salsa. -2* has .-nIndtaihtedly-
job, g* aid wit* thi cots*.? soras enemies in his' tam, at ,.this,
! car ior 20v- .CIA; but i4:33'11". $614110
arnMen't tantploxi;Inot a- p&rti2as Ha tittiW1
began his career!'ita * foreign. sarviie '
offfeer where he proved eVeetivs And : _ Xo.the ra,i-ai.;..4 te pill brine sevaii
one instaskae,dorriiist hiere4r_,.lavinf a Strengths: the awaldenie ot Mr: %sin-
. group of Aintricana trains an: angry nob . .berger,, *hone he has alrsady Served
? Afrietand suffsriag India wt in - w*11 in tha Nat; akt-owledga of fartiza
.
(the proatts,... ' , :-..stifairs nurtured in his years still plAytir
iLStr,.41-thfillixor;'*4:calnistratinn, .iis_'soane of the world's Molt ? diffiaulti
took; ins :1s3ipmenta4nAistiter(parts ot area4;, and -prora Ai:i13J as sutzsitis-,
thet.eiftlAtiVe brP01.4eivirtg: as .ud ot tcr. -
iho.iontao 0..reviontie opportunity .vraits- frdriaisi
s?s?mr..,Wsishergeris fop sasist.ut it the opiErmed dei.fputy. Aid
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ARTIVAroimitrififgjRelease 200FP1/30 ? cLAIRP?,60901R00
rit wASH NU
ON PAGE 3 15 January 1981 -
STAT
0100120001-6
TRANSITION,'
Paul H. 'Nitze,
deputy secretarn of defense in the
first Nixon administration, is under
consideration for the No. 3 job at
the- Pentagon. His candidacy is said
to be an effort to appease the con-
- servatives upset by- _Frank Car-
lucci in the No. 2 job. Friends say
%Nitze woukt take the job if it were
"offered. -
---,Cass Peterson \
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ON -FAGS
Approved For Release 2006/01/30 : CIA-RDP91-00901R0001001
,vows
?
. . .
44.
Pierce:' cut HUD's'
costs.:.: not aid to.
BOSTON GLOBE
14 January 1981
? ?
? ? OW -7.
From Wire Services "
WASHINGTON ?William J: Casey 'pledged
yesterday-to try to reinvigorate the CIA, which
he said Is plagued by self-doubt and low morale
after .years of demands that ? it be "tightly re-
strained...Stringently monitored or totally reor-
ganized:7:,'.7.-:!-N.:?--.:":, ?
In confirmation hearings on his nomination
to be .CIA director. the 67-year-old New York
lawyer and friend of President-elect Ronald Rea-
gan warned that ?"in an era of increasing mili-
tary vulnerability, effective intelligence-Is of far.
greater importance than It may have been some
years ago when we had clear military superior-
ity .7 ?
In another confirmation -.proceeding 'yester-
day; Samuel Pierce Jr., 58, the only black Cabi-
net nominee of the incoming Reagan adminis-?
tration, vowed to cut costs at the Department of
Housing and Urban Development "without de-
priving the poor and needyof,necessary pro-
grams.'
? Pierce, whose confirmation as. HUD secretary
Is virtually' aSsured; also said he disagreed with
recent recommendations by a presidential corn-
'mission urging the federal government to en-
courage fieople to. seek jobs in The Sun Belt
states of the South and Souithwest-7,
"We'd- justl.end tip.xvith.4rernendouS prob-
lems in the Sun Belt:.!..suCh as higher crime and-
IncreasedIvater.shortagesi;he.Said:,
.Caseywould. be the first CIA director to be a.,
member. of.the..Prisident'S.:Cabinet, reflecting,
the ,increased - years of
the agenoiand of the job- of director of central:
intelligenee.liVtah the CIA Chief also holds:The1
directoto?ordinates the worleOrall federalintelt-;
ligence- -*netts', Inehiding Defense Intelli-
gence Agency and the Ilational Seciiritygency:
as well as the
:Casey said that the CIA..neeth to be im.
proved,. particularly-in its :a.rialysii Of informa-,
tion that ,',CorneSterim'.-:both secret and open;
sources. Hilt while efforts to: iniPrOire the agency-
go on:Abe-intelligence community should know'
that it. ';haer our and 'confidence," he .
said
:-.CaseYreferred-':ohly'7_ c.Passineto
misdeeds olthepast,"-: by .the CIA and said tkat.;
he hoped ?that:the pe,titid was overWhen -alethe
focus was on reiring in andmOnitoring7 agency-
' Fre- Indicated'SuPP`are fOr--.! two .contrOVersial
? billS now Pending iri.ConkresS;One would .pun-'
ish persons who' disclose the identities of US in
telligenceOffieers abroad and, the second. Would
relieve the tiMitmid3freil Flitylitlet40466.82096*
1ntelligence7reivonsibilit1ee?. from. some 7discli,
sure proVisi-ons of .the Freedorn of Inforination-.
...
William J. Casey testifies at Senate Intelli- ,
gence Committee hearing on his nomina-
tion as new director of the CIA.. UN PHOTO j
Frank carlucci, nominated to be- Deputy:
Secretafy of Defense, testifies before Sen-/
ate Arined Seriricei Committee.- UPI PHOTO..
i7,'"7-,7H-6-.7i1.8717:PrOintied to take :care,: and dill
.gence7Iii- protecting the legal rights of citizens
andtvork.cIose1y:w1th Congress in :monitor-
-Ing the intelligence community "and in ensuring
..that.the-community operates within legal firm!
Its . ? ;;:.,,,??i
Casy::,044:.reininded of two Controversial in-
eicientSvihen:he.served as chairman Of the Se-
curities and Exchange Commission lathe Nixon
Administration, 1" ,??
; One dealt with his abrupt tranSfer of record
on ITT's:activities to the Department of Justice
0 : CIAEMPOYOW(30. CRGEK1110411,tiVelcfPgressiori-
" al1nv?gatOrs Seeking them. The other; in
volved. ;his relations .with , financier-Robert
:-Vesco.lwho iS a fugitive from fraud,chargei.a,1
/MIME A. ved For Releams2W5419301iNftRDP91-00901R000100 20001-6
OS PAGE
14 JANUARY 1981
? , .
Fmk. Times Wire Services '
- WASHINGTON?Deputy- Defense Secre-
tary-designate Frank C. Carlucci'said Tues-
day that the United States should continue
registering draft-age men, renew its commit-7.1
merit to protect U.S. interests in the Persian, -
Gulf and develop the capacity to fight a nuclear war
-'
7Ip testimony before the Senate Armed
vices Committee; Carlucci, now'deputy diree; -
tor of the CIA, said also that President-elect
Ronald': Reagan 's Administration::: should
thatch Riissian efforts in chemical:Warfare
and treat the,question of arms sales to China
on a case-by-case basis.
`.!.Very high priority has to be given to read- .
mess, including manpower," he said. "There'sl,
no question that there will be heavy expendi-?i
tures invelved.. We are'goingAo have to in--
. crease Our defense spending
lantspent by the Russians
-r-nii-s6:vits.ai'e spending rniire. in every_
area -and we're going to have to work had to
- Secietarydesignate Caspar
Weinberger; who testified a week ago,- chose
Cariticci to run the daily operations of the De-
fense Department, the nation's No, 1 employ
?er.?
John,Tower (R-Tex), chairman of the 1
committee, said the panel would meet -Mon- '
day to vote on the nominations of both men ',I
and predicted that? they would be approved. I
That would pave the way for prompt Senate-1
confirmation of both nominees -after Reagan
iS inaugurated Jan. 20. "
- The selection of Carlucci for the Pentagon,,i
post upset some conservatives, who feared it:
-might signal that the Defense Department
hierarchy would be dominated by persons
who did not share Reagan's commitment to -
strengthening the armed forces. But Carluc-:,..,
ci's hard-line testimony appeared to dissipate'
any such apprehension on the armed services,
panel. - ? .
STAT
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Approved For Release 2006/01/30 : CIA-RDP91-00901R00010012
ARTICLE APPEAR29
PHILADELPHIA INQUIRER
ON ?AGE c..53-1 14 JANUARY 1981
?
. .-:"'4.:??', .
By W:-Dale Nel?son ._.... lents." Under questioningby Sem. ?
-Harry Byrd (Ind-Va.), however, Car
-
WASHINGTON ? Ronald Reakan's luddi went further and said, It is
-, nominee for deputy secretary of de-
probably best to. continue with it at
n
this point. It is under way and I see
fense said yesterday that the United '
.9o reason to stop it.".?:;;::-
= States shoulccantinue registering .:
:
draft-age' irnen,z; should renew. its .F:.:-;Reagan said during the campaign
!..:Jhat he was opposed to the registra- ?
commitment to protect its interests
tion of draft-age men, which was mi-
in the.Persian Gulf and should devel- ...,
= al'..t! nuclear war fighting capabili,-, . bated by President Carter, but since
op
' ty.'"01,--,' ).'?,' .? :7;,:1:::-.f. ..:, . ;Athe election Reagan has neither re-
j,,,,,, ? 1.' -.., :i. : .si...... Senate fi.stated nor changed that position. :
. .Inalestimony betore . the
1..?- , Carlucci also: went ,._". .further than
; Armed Services Committee, Frank C-".: Weinberger did on the issue of Car-
' Carlifcci also said the Reagan admin. ..-rter's declaration last year that the
istration should match Soviet efforts
.. `. -United States could go to war if
in chemicak.,3,varfare and;:tteat the
question of arms sales to China On a ,"
case-by-case basis.
Sen.:John Tower (R-Texas)chaIr-
man of. thcommittee, said that the
panel would meet Monday to vote on
the nomination and that of Caspar W.
.Weinberger be_ secretary of defense.
Tower predicted both would be ap-
? provek...allowing for quick Senate
confirmation.
Carlucci, deputy director of central
intelligence since 1978, waCchosen,
for the number two defensefjob by
Weinberger, .,whom .be served, as
undersecretary of health,,edtication
and welfarwhen Weinberger was
secretary during the Nixon.adMinis-
tration.
His.selectipti for the Pentagon'post
upset?i. conservativeswho
feared it might signal that. the?De-
? fense!Department hierarchy would
be dominated by people of little mili-
tary,,background who would ..inot
share- Reagan's ,commitment,,.to
strengthen the armed forces. '
Carlucci'sl, h e,
ard-lin' 'testimony
, appeared to dissipate any such appre-
hension'co
'on the Armed Services
Committee:-Witining- him pledges.' of
support from several of the commit-
tee's more conservative members.:
On thOssue of draft registration,'
he echoedrWeinberger's testimony.
last weelc.that rolling the' program
back nowwould "at the very least,
create ,:severe administrative 'prob.
necessary to .preserve U.S. interests
in the Persian Gulf. Weinberger tes-
tified that Carter's-t_decla ration
amounted to promising more than
the United States had th military
might to-deliver. While he said his
statement did not represent any "wa-
tering down" of the commitment, he
stopped short of specifically reaf-
firming it. '
Carlucci, on the other hand, said,
"I would we should communi-
cate to the Soviets our determination
to protect our vital interets. in that
area and we should develop the capa-
bility needed to do that.? On Monday,
Secretary of State-designate Alexan-
der Haig said much the same; "We
must be prepared to act, even unilat-
erally, to secure our access to these
vital resources:!:
Carlucci said he expected the Sovi-
ets to "step up their subversion in
the Persian Gulf area" during the
decade and added that "we need to
improve considerably our ability to
deal with that subversive effort." -t
"The Soviets are developing a nu-
clear war fighting capability and we
are going to have to develop the
same," he said. Later, in response to
questions by reporters, he- said he
meant both strategic nuclear war,
designed to destroy an enemy, and
tactical nuclear war, designed to
gain a battlefield advantage.
Under questioning by Sen. William
. Cohen (R-Maine), Carlucci said,
.."The Soviets have made big strides in
? chemical warfare, and we have to be
ready to meet it. I think we need to go
ahead with that".
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e2nam. A- :TgkildiArroved For Release tinfigittnciti WARDPIMAQ9DIEWP010012
14 JANUARY 1981
tf?
-
OK?
SayS=Mobileforces.
Becoming Essential .
, .
By John J.- Fialka ?
washington Star Staff. Writer
Frank C. Carlucci,. designated for
the No. 2 post at the Defense Depart-
ment, says he expects. Communists
to Step up subversibril-efforts in the
Persian Gulf during-the 1980s.
?Carlucci, who Was deputy director ?
of the CIA in the Carter administra-
tion; told the Senate-Armed Services-.
Committee during his confirmation
hearing yesterday that he "would
not find it surprising" to see the
Soviets' interest in the oil-rich re-
gion increase because their own do-
mestic sources of oil will begin to
run' short of their needs at some -
point within the next 10 years,
. "We need to improve our capabii-'
ities to deal- with- this:subversive -
effort,".: said Carlucci,:,:who added ?.
that new CIA data shows the Soviet
Union is spending. 166 percent of _
what the United_States is spending
fer 'its general-purpose forces and.
more than three times what the -
United States is spending for strate-
--
eee-- - t
Carlucci said that one of the
"critical needs of:the United States
is for greater mobility nf, its forces:
"It's extremely important now to put,
forces where they are. needed and :
when. they are 'needed, 'and in my
judgment we just don't have that -
capability'," Said Carinedi; who has':
been receiving daily, briefings on -
U.S.-readiness at- the,Pentagon
? ,
' Carlucci also echoed the senti-
ments of the new defense secretary-:
designate, Casper; Weinberger, in."
indicating,that one of his first pri-
orities would be:to:try to deal with:
the Pentagon's mannttrigmanpowet 1
problems. He said he.was particu-e?
larly concerned about the poor_ state
of readiness of US. reserve forces,
which are far short ot.the?number
of comhat:ready solftthey need::
pprovect
- ? Associated Pre
'
CIA deputy director Frank Carlucei (right), President-elect Reagan's chafe(
for deputy secretary of defense, talks with Sen. John Warner, R-Va., shortly
before his confirmation hearing got under way yesterday on Capitol Hill.
Carlucci said he Will also give pri-
:ority-to increasing operation and
maintenance budgets of combat
Units and to rebuilding the services'
inventories of spare perm:.
. _
Carlucci's position as deputy sec-
retary-is regarded as an extremely
? important one because the deputy
has traditionally managed the day-
to-day business of the Defense De-
partment. ,
.4.F.e.`-There has.' been concern within
k; the Reagan administration and on
, :Capitol Hill-that there could be prob-
,-.,lems at Defense because neither Car-
lucci nor Weinberger has had direct
::.experience at the .Pentagoni ? -
Sen_ John Warner, R-Va.,who-in-
? troduced Carlucci-at the: hearings,
said that Monday in a private meet-
? ing he was assured by Carlucci that
"people With a:solid defense back
:ground" are beineconsidered -for
key pOliey positions in-the -Offide of
the secretary of defense."
' Warner seemed 10 stiggest that the
' No. 3 post at the Pentagonethat of
undersecretary for -policy, will go
to: a Veteran..Pentagorc hand..
Carlucci;Viho appearS t6 have no
opposition on the committee, told
members that he, and Weinberger.
r : craRop
I "We don't divide up the pie, so
. to speak," said Carlucci, who worked
under Weinberger at the. Depart-
ment of Health, Education and Wel-
'fare and at the Office of Management
and Budget during the Nixon-Ford
years. . . .....
. Carlucci explained that he will ,
serve as a kind of administrative
, funnel, giving the issues that- are .
sent-to Weinberger-a-final ,
. 'screening. "We hope to confine our,
role to broad decisions," he said(
noting that heavy emphasis will be I
given to long-range planning.';
, 1
_ Although he has no direct exper-
?ince at the Pentagon, Carlucci has [
had a broad career dealing with for- i
eign affairs, national security, intel-
ligence and budgetary matters. _In I
addition, to serving as the deputy
director of the CIA,- Carlucci has j
Ibeen ambassador to Portugal.
Carlucci was praised for his "te-
nacity? by Warner and several other:
Members of the committee for refus-
ing to comply With pressure' from
unnamed Carter administration oil
. ficials to endorse the SALT II treaty
during his tenure at the. CIA...-. :,,,,
Carlucci said he'wonld -not 'talk
, about the details of the episode. ex-
1 :et ititif R6 6 ! lilt h &Vale agen,
cy s.role,s ? ou ave hgenFlimited.
'to a straight,intelligenie evaluation:
of thq:-Z.9.?R;
25X1A
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TICIT: APR!!
01 ?ACP.:
NEW YORK TIMES
114- JANUARY 1981
Nominee Discusses Arms Policy
?
RICHARD HALLORAN
. SroCial to The New York-Mlles
..., WASHINGTON, Jan. 13 ::'-- 'Frank C. advocate a rapid military
carlecci, who has been nominated to be spending.
Deputy Secretary of Defense, indicated Mr. Carlucci, who has been the deputY
_the possibility today that the Reagan ad- director of the Central Intelligence
ministration might sell military weapons. Agency in the Carter Administration
tp China. ? . ? le:::,..2-". ? te te- ? since February 1978, asserted that the
Mie Carlucci, who will handle the day- Soviets would be very ill-advised to trifle
t y operations of the Defense Depart- withus in the Persian Gulf." :
meat, told the , Senate 'Armed Services DeeclInes -to Support C,arter Policy
Committee that the issue of arms sales to
China was "an extremely sensitive clues. Like Mr. Weinberger, however, he de-
tion,e but that the new Administration clined to. support President Carter's
would look at each possibility on"a case- PoY that calls for using military force,
by-case basis .',114 2. - . - ' ? , i . . ? . - if necessary, to protect vital American in-
In his confirmation hearing, Mr. Car- terests in that region. Mr. Carlucci also
cci went beyond statements made said the United States lacked the military
Saturday by Alexander M._ Haig, Jr., the strength today to fight a fun-scale war
*mime for Secretary of State Mr. Haig against the Soviet Union there._
said in Senate ? testimony that he saw Despite several sharp questions from
*ltie in normalizing relations with China the committee, Mr. Carlucci appears cer-
but that the process should not "result in min of confirmation. Some conservative
a situation that my European friends de- Senators have argued that he should not
.scribe as poking sticks in the polar bear's be confirmed because ha lacks expert-
cage,'.' a reference to Chinese-Soviet hos- ence in the Defense Department and con-
increase in
1
tributed to what they consider to have
The Carter AdMinistrationeivhich has ' been a weakening of the C.I.A.
. ,.
h;egun to sell nonlethal military equip- In running the Defense Department,
:
meat-to China; has adamantly opposed Mr. Carlucci said he expected to have
-tile sale of weaports there. ee; . "interchangeable responsibilities" with
. Mr. Weinberger in the same working
Correcting axiInterpretation - relationship they had when Mr. Carlucci
71, t Mr. Carlucci- also sought to correct was Mr. Weinberger's deputy at the Of-
what he said was an erroneous interpre- fice of Management and Budget and later
:tation of testimony last week by Caspar at the Department of Health, Education,
W. Weinberger in his confirmation hear- and Welfare.
ing as Secretaryeof ' Defense.- Several More Time for the Draft
Senators said they thought that Mr. Wein-
?berger approved .. a , policy, that would On the draft, Mr. Carlucci said that the
allow Western'European nations to back volunteer army should be given more
away from their commitment to increase. time to see, if it would work. He also said
Military spending by 3 percent a year. ? that _draft registration, begun by Presi-
, I Mr. Carlucci said that while Mr. Wein- dent: Carter, should cOntinue and that
, berger did not put much stock in specific military conscription might be needed if
Percentages, the Secretary-designate felt the volunteer army did not work. Presi-
that"we all need to do more." The 3 pee_ dent-elect Ronald Reagan has opposed a
C,ent figure, which Mr: Carlucci said has Peacetime draft. ? ? - ._. , . . ,
become symbolic, should be considered a. On the issue of developing a new United
:starting point. - - ? 'ereee` - - .: e ? , v"..,k..-:.: :? States capacity for chemical warfare,
At-the same time, he cautioned that the Mr: Carlucci said: "I think we need to go
States Pcan't spend every dollar ahead with that." The Carter Adminis-
some people want to spend on defense," tration has been reluctant to support this,
and Congress has been split on the issue.
:an allusion to members of Congress who
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Approved For Release 2006/01/30 : CIA-RDP91-00901R000100120001 6
THE WASHINGTON POST
14 January 1981
A CLE Ar2.2 "Z;j3,:n.)
N FAG
25X1A
By George C. Vilson
Washington Post Stott Writer
-
"Get me
Presidents Kernieay; Nixon, Ford-
-- and now ',President-elect Ronald
Rea,gan --- all have said that over the
last 20 years.:... '
That alone-civalifies Frank Charles
:Carlucci III for the title Of Washing-
ton's ultimate survivor. But his story
is more- ir,iteresting, and more signifi--,
dep
?
Cant, than that. _
. Carlucci, the outgoing ut-y three--
or of the CIA, glided through his
'confirmation hearing yesterday for the:
J ob of deputy sedetary Of 'defense.. In
the process, he -showed that a practi-
tioner of the. art 'of the. possible can
easily bridge the ideological gap be-
tween a Carter and a Reagan,' .
Or, if you listen to the gruMblings
of the coniervatives' who'ialed to de...
'rail Carlucci's nomination to the sec:-
ond highest job at, the Pentagon, he:
personifies the argument that the gap
between Carter and Reagan turns out
to be not as wide asthey _expected ?
Or hoped.
Either way, Carlucci, 50,:has what:
the Washington 'Mighty perceive, as
the right stuff for-the-man behind the
boas. How else -can, yOti explain such
- moves as these:?;-:.?,'"'4t 7
'! Chosen by Carter to helP.Stansfield'
Turner slim a.nd coOl-dOwriqhe CIA,.
Carlucci has now been approved by
Reagan to help Caspar W. Weinberger
fatten and heatilp the Pentagon.
, After,. first., fighting . Weinberger
when he- was at'the". old Department
Of Health, EduCaticii. and', Welfarel,in
the Nixon years,' Carlucci ? Went-, on : to
be his
As US. ambassador to Portugal..iry,
1976, Carlucci' followedthe program:
for which his; Predecessor was fired,
and; su eirdliPiottemgici TO-
bucked then-Secretary :of State Henry.
- r't.'Arid, after being stabbed in the i
Belgian -Congo (now 7..gire) at one I
;hose in his government career,- Car-
' lucci' was hailed as a friend of the
:Congolese at another.
How does Carlucci do it?
;]'Frank is an operator," said a goy-
,.
:ernment executive who has watched
:Carlucci from the inside for the 12st
t,,Vo decades. "He's a first-class manag,-
er and doer. You can get oodles of
- _brains to come to this town, who have
all kinds of fancy, brilliant concepts,
but they 'can't get the damn' thing i
, -done. The problem is getting it to I
happen. Frank makes it happen."
- Does this mean Carlucci is just 'a
hired bureaucratic gun? A man with
no idealistic principles, one who can
work for anybody? - 1
? -.-.. Sen. Jeremiah A. Denton (R-Ala.);`,
_decorated_ for his resistance .to his,
North Vietnamese captors, eased into
those questions at Carlucci's confirma-
1 tion hearing before the Senate Armed
Services Committee yesterday.
:'..'My own philosophy," answered
Carlucci, a former Navy junior lieu-
tenant, "is that we all have to .compro-
'pise. That's what it's all about",
After all the pulling and hauling,
_shouting and_stomping within_the .bu-
reaucracy, the key question becomes,
Carlucci continued, "Can I live with
that decision? In three instances I had
prepared to resign. .The decisions did
; not' go against me, so I didn't resign."
'Discreetly, Carlucci did not volun-
" - teer what those decisions of- principle
were, and 'no senator on the commit-
1
-s tee bothered to ask. ' : -.? ,,1-''..':-',;:, ,-
- . .. Laminated onto Carlucci's- demon
Release 2006/01/30
strated bureaucratic skills, both in the
front room and the back room, is the
toughness associated with the'coal
country around his 'onetime home irri
Bear Creek, Pa., near Wilkes-Barre-.
. "He's a tough little monkey," his fa-
ther once said of him.. Carlucci wres-
tled - for Princeton, as did Donald
Rurnsfeld, another government execu-
-tive who said, "Get me Carlucci."
After graduating from Princeton in
1952, Carlucci went into the Navy for!
two years, serving as gunnery officer!
on the USS Rombach. then_toolLottai;
year of a two-year course at Hai-Vard'st
graduate school of business ad/minis-
tration. The making of the govern-
ment operator probably started in
1955, when he tried private businessl
as a management trainee with Jantzen
Inc.,' the bathing suit and leisure
clothing firm, and found he didn't like
Turning to government,. Carlucci
joined the Foreign Service in July
1956. The next year, he was economic
officer at the U.S. Embassy in Johan-
nesburg, South.. Africa.. In 1960, he
rembarked on an explosive government
career in the Belgian Congo, including
a" James Bond performance when a
mob of Congolese attacked him and
three other Americans after the gov-
ernment car in which they were riding
struck and killed a Congolese cyclist
in Leopoldville on Nov.. 20,:1960.
He stayed with the Navy driver "at
least until the others could get away,"
he- said at the tithe-. It wasn't until he
got aboard a bus kiter,and someone-
told him he was bleeding that he real-,
ized he had been stabbed in the back.:
In 1962, Carlucci left Africa- for 'a-
Washington desk job:at'Statrie es 'Cori:
golese political affairs -officer. Then,it
was back to Africa., in.-1964 as consul
.1 A.
: CIA-RDP91-0090-
I II
Fanzania. The;
aTts bYq3ellitl . him in.. 1965 on)
-1' the charge tha.t. hs,...,"sekaged ;in aub.-J
' - 7
Approved For Release 2006/01/30 : CIA-RDP91-00901R0001001
ZVI / Met BALTIMORE SUN
PA432 14 JANUARY 1981
is hawk is
.;!
? :r.?
111 earl
..?
KY. Cho rre4.'
1Nashing too Bureau of The,Stin,:, .100 4 4
P?'?WashingtorkFrank.qCarluccE ensur
ing his confirination,fe the Defense De-
partment's No. 2 postgook a generally
hawkish line beforeeehe Senate Armed e
Services Committee yesterday as he urged- ?
eee
advances in chemieet, nuclear and Othereeee
arms to offset Soviet power.
1: Nominated to be deputydefense seeree ?
tarY at the insistence of Secretary-desig-
nate Caspar-WeWeinberger,Nre Carlucci.? .'
had been under some challenge by conser-.
.vatives:who thought he lec.ked defense ex-
perience and who preferred. Someone they. -
thought would take a herder line.
eeOne preference: would have been
Wil-
ham R. Van Cleave, a University of South-. -?
ern. Californialprofesior and strategic nue- AP
clear arms specialist.; who:headed the de- Frank C. Carlucci, No.2 Defense nomi- -
fense transition team that Mr ..Weinberger nee, shown before Senate committee. ,
dismissed soon after biing'nominated. ? ;e e-e
- Mr. Carlucci, a . deputy director, Of the nOt meant to back away from ri that point in
Central Intelligence-Agency under presi- testimony given during his confirmation
dent Carter, drew no opposition as - hearings, he said. `.
dee yesterday as he staked out such, posie - Senator William S. Cohen (R, Maine)
Hens as these- 7.; drew out Mr. Carlucci 's views on the Eu-
:e.; ? "The Soviets. are 'developirea . nu- ropean Commitment because Me.. Wein-
clear war fighting cepability and. we are e berger'sqestimony had been interpreted
going to have to develop the same and that; as letting: the allies off the hook. The sec-
, lea very tall order."-er'. retary-designate had said he did not think
In the coming decade, when its own it "particularly- useful" to demand fixed
Oil-sources become' .more difficult to .tap, percentage increases of allies, but he had
? the Soviet. Union maY?turn to the Persian also said that both the United States and
Gulf and "we need to improve our cepabik- its allies Must do more than they have
ity, to deal with this subversive effort. "set ? been doing to set the military r balance
'.:7141 On the development of :weapons for . right -
cherhiCal warfarerewhich means nerve . At the opening of the hearing. Senator
gas or nerve 'agents"?' We need to go John We Warner .(R; Va.) noted concerns
-.ahead with that., There-is no question the. of "responsible persons" about the nemi:.
,--SoViets have made., big stridee. in -CW ;nation?a reference; to criticism that the
; !Chemical warfare and we need to be pre- . top two Pentagon officials of the Reagan
.; pared to meet it.!:,,;?;.e9., 'ie. " administration i will lack defense expert-
On the possible sele of weapons to encee
; China, he would !".look'at each possibility . Mr.: Carlucci ? nonetheless ba had'
Orvi,ra case-byecase:, baSis.7,.-' The United "unique and broad experience in govern-
?. States and China have `an expanding rela- ment as a budget officer, health, education
,tionship that brings some advantages" to --and welfare official, ambassador to Portu-
,i- both. The Carter administration has of- ,.:gal and deputy director of central intelli-
I fered China Military equipment, such as 'gence,.Mr: Warner said in urging contir-
I, radar and trucks, but-has refused the sale :!mation of his Virginia constituent.; ,
of actual Mr. Warner gave the committee the as
He would regard the commitment of surance of Mr. Weinberger :and Me Car-
Eilopean allies. to increase defense out- lucci.that they. "are looking at people with
lays by 3 percent-a; year on top of inflation . a solid defense background for key policy
i's"-a:"starting D,417. Weinberger had positions" in.the Defense Department.
Apen'uvdd Ffer Rbleaie 2666/61/..41/ frIA=11t)P9V06961Rb00100{20'001-6
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011= AnZara.
WASHINGTON STAR (GREEN LINE)
011 ?AGM C.4 / 14 JANUARY 1981
. ? .
mostagam 4:
By Judy Bachrach
A Right- ing
unt for arts
The Republican
fight spends,?1._
these days a?:?,1
yast and - .?
aunseemly
ral,amount of time::
peering - ,;
r anxiously into,
. .:t.athe mirror of its?
beauty; nervously, ,
. tracing a rivulet of waits.
.."What you must underitand,"..,-,
says one proud'right-winger; "is
that many of u.s have been. on
, the outside so long we still...
,aren't house-trained. There are ?
two kinds of .conservatives.in
the Reagan camp: t
.mainstreameis and..
bomb-throwers ?,.by which.!
mean people ho are only out,
for themselves, inanipulators..a,
:People like John Carbaugh.",
. "I don't Understand, I just
don't understand," John
Carbaugh' says .miserably. At 35,
, he is already pudgy, a,
legislative aide to Sen. Jesseaa
Helms of North Carolina, andae,
- big noise around town ?
although by now Carbaugh, rt-451.
' man of some impetuosness, a ?IT.;
' degree of self-importance, and rtla
_deliberate southeni -charm,- ,A.a
? .wishes the 441 ,would
Recently, he acquired
- reputation of,beiiag the major,,,_,
leaker of the State Department;
transition teanai) h;s4,4-
There were leeks or"secrei.
cables describingconVersatio*i
held in, Moscpw; by, Sen. Charles a,,a.
Percy, and the bony finger of
the press pointed to Carbaugh
as the source of those Carbaugh-
'offered to, take a lie detector
test to prove his'uninvolyeinent,i,
There w- ere leaks concerning a. '1
list of U.S. ambassadors
recommended for firing; ; ? I
Carbaugh maintains his
innocence. There were reports-
.01 mutual loathing within the
State Department transition .
.team until last month when
-Alexander Haig, with an ,
abruptneis that left its members
- -.whimpering, dismissed themiall.
t .. There are Reaganites only :
:asiightly less right-wing than-
-
Carbaugh who perceive him as
a a disgrace to the race, ablight
on- the-bloom of their early
promise. The object of their
' wrath is sorely. wounded: UI can;,
uhderstand why someone would,: .
,dislike me because I fight hard
?---=abata.1 am not a bomb-thrower,,,
- in the hails. Yes, I know that
right now there's an- unsigned
-memar.on.Frank Carlucci-.-,:.;,,
? inakiiig the rounds of the
transition team. But I did nota-a.--
writethat memo." : ? -- ,
Still; it is no secret that-, ?
Carbaugh fought like crazy to
thwart the selection of the more
liberal Carlucci as deputy
secretary of defense, a post for
which he has nonetheless just',..
been nominated by Ronald .
Reagan, just as it is well known' -
that Helms and other ,
conservatives have expressed
grave concern about the future
:president's choice of Caspar
:Weinberger as secretary of 1"---
defense, feeling as they do that,
..-he knows little about the
'
01-6
WINOMM?.
25X1A
Carbaugh, himself, mentions his valiant efforts
to prevent Henry Kissinger from recapturing his
old glory under new auspices. Who else doesn't
Carbaugh want around? "Larry Bagleburger," he
replies ominously., "who they want to be assistant
secretary in State in charge.:of Etirope." '
.?
"What makes me mad:, complains a conserve- ,
tive, "is that everyone knows Weinberger and
Carlucci are going to get their jobs, and yet Car- ?
baugh fights it anyway. I mean Carbaugh is the
, head of this right-wing group of Hill staffers
which has been dubbed theliladison group, be-
cause they often meet at the Madison Hotel. :
',' , '
"And these guys all sit around like in the bar
scene in_ Star Wars and One of:them says Car:
lucci is a liberal.' And then the rest of them take
up the chant: 'Yeah, yeah, let's get Carlucci,
too liberal;-",- ,.
You're going to have something, it might 7:
-as well be the best there is, right?" Carbaugh
says with an engaging smile. It is champagne at
Le Pavillon_ It is-the natty red TR 6,-among, other
cars in his possession. If John Carbaugh could
have the best there is it would be a job at State,
and he would be in charge of Latin-American --
affairs, the area of his expertise. He is not, how-
ever, expected toget it, so he says: "I am 1;.ery
happy with Jesse Helms." But it is clear the craving
is there. 4: - ?
"In Nicaragua wourd you say there is more or
less human rights than there was under Somoza?"
he asks, not desiring, the question-to remain rhe-
torical in perpetuity. "Some would argue that
they are even worse off, and I am sympathetic ,
to that argument. Now. I. was extremely disap-
pointed in Somoza. rsaw him two or three times, :
and in '77 I told him-'You ain't got any new -
clothes, Mister King.-Yes,..- that's what I said.
e ? . .
"I will tell you that Helms in 1977 came out
for human rights. But you've got to make choices
based on an enlightened look at your own self-
; interest",
aa.? ?
Just last year; Carbaugh is told,. Britain aim-
plained ? that you: meddled in- Rhodesian affairs,
encouraging former prime minister Ian Smith to
take an unyielding' line in negotiations on a new
,ccoristittitia,
? Carbaugh smiles bravely. -None of-it: is true,:
; he says All he did-,waS iiioseY. on over to L6ndon.,.
?to checklont. whatwas happening;_".We.stayed at__
..the Ritz..? Well, maybe you shouldn't write that,
:-Iiecauseayou41inow. theaRitz ahas-gone- downhill
in recent times -Anyway, Thatcher never com:
plained atalla:Maybe they -jtiat got their cables-
mixed up.. ?r? ?
,
"You know if you-can't laugh at yourSelfon,,
might as well get out. I plead guilty to.sPeaking
to the media, but! didn't leak any reports. I put
-the one on the Percy cables in my safe, but.never-
read it. No fingerprints onIL Theykept trying,
to get- ine to read it" Along pause. ,1 gueSs I
Should have been kuspi.cipils:7 ?
*,- Is-he suggesting. then-, that_ someone- on the
transition, team tried to frame him? ? -4 -
rbaugh offers for perisal .
.toai I ; al
Approved For Release 2006/01/30 : CIA-RDP91-0p;m: Hell ill i's: . i,_, i says.finally. a:That is
, II II
not what I am suggesting,"-- -------------aa -
-, aaia,a ri' 4.1 1 - 1.-4-1: ---1477.-J,Y.,VA.,14f ?Likil.e..:.:-.?%;:',1
Approved For Release 2006/01/30 : CIA-RDP91-00901R00010
ART' CLE A2IT,A61!)
ON PAU.
THE WALL STREET JOURNAL
1 3 January 1981
120001-6
STAT
me eeded Man?ment
Ehe
dettlictidiL.16i.-: nine Air Na- 7jj.s. forces on that island area pOten-
tionaL.Ouard. Planes 6n the ground at A.tial target for Puerto Rican ,,4'.nation-
Mlif#,, Air Base in Puerto Rico Mon-
dayfinorningya.S'exactly the-- kind of
emliaFissmenfil.:the milita.r5i'. 4
.fcifices,didn."t4need..at;this:sensitive,.:,,
'iurterlire, airs of the
"
tliktThe,appeafince Of power is as ilT1-
necesary to discourage potential ene--.
7rnigsffrom pressing their luck too far
and touchineoff-Tahot.War. Ina .part of
the :world .tviiere-rille macho irnaae
:particularlyzirlipbytarit we can be as--:4,
'sliced that respect. for. the U.S. might
falKiliotch'or:tWO:rith the revelation
.? .
.4199/;easYjciCr;s?/a.s.'...for.",saboteurs to
:f off hine?#arplarieS' at
base The.fact.that'!th.e':?;',Airi::National:..fj
notilront4i.ne,force_and
tre5plaries'.*.eiii:eiderlytrairibig?traft
1141 .e','difference in :that 're-,
-0:1,6Er:.ThistliateSti,episode, ?cOrribined.:;,,f
Wilici!the iltlated.:.:reScue attempt in
-Ira4Plast spring, can Only spread the
ifession-thatz_the;?11,S.'.military.Spe=
iales in losing equipment in ,unto,?-,
'?1-rikli Of which "suggests that the mill-
tampeeds more .than a larger budget
when. the Reagan team takes over It
bously could use some close exazni-
ilatlein: of command 'structure and fit=
nesi:reportV.ThetAirNa.tional Guard
utPuerto Rico was not unaware that -
alist" groups, which most likely have th
ties to e broader Marxist assault on
the Caribbean region.- In March last
?year,..three U.S...Army men 'riding
:a car were fired on by terrorists;. who
,wounded one of,the soldiers slightly.:
::;.2.:?Thaf.;1,should_ have, Jiiclicatred f: to
someone that there were PeoPle on the,
'Island who did not wish' the?military
;Well.. Yet the aircraft;wera,"?lightly
'guarded, iniriting the kind: of. bomb at-
tack-. that has become a favorite tech:
..nique of lefty/in terrorists' all over the
'world'. _ ,' , '1 '!----!?---'?."" - - -
. 'Caspar Weinberger;Lthe 'Defense
' Secretary-designate in-' the .Reagan
S. Cabinet, has chosen his old colleague,
' Frank-Carlucci, to be his secons in
coand -at the .Department. of De-
mm
t. fense.,Mr. Carlucci was not a popular
, choice with a lot of people who felt he
was too willing to. carry out Jimmy
. artezt ta?. CrAT-Tf it is
true, -however, that the -Weinberger-.
TaTqucci team is a combination- that
can.- e e tot e a strong man
sagerialAine at Defense, it ma be
some.....:(_kk.,L,rtineiyoadl _
needs.
-The purpose of, a defense establish
.: 2 .
,ment, is to defend U.S.:; interests 'at
home and abroad,: If it is .so.. badly
;managed that it can't even protect- its
' OW11 ' aircraft on the, ground, -it .oh--'
,viously needs some ,critical atterition.:,
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RADI
4701 WILLARD AVENUE, CHEVY CHASE, MARYLAND 20015 656-4058
FOR
PROGRAM
DATE
SUBJECT
PUBLIC AFFAIRS STAFF
ABC World News Tonight
January 13, 1981 7:00 PM
SWON WJLA TV
ABC Network
CITY
Washington, DC
Report on Director-Designate William Casey
FRANK REYNOLDS: There were three other confirmation
hearings today for leading officials of the new Administration.
We have a report from Charles Gibson.
25X1A
CHARLES GIBSON: Three nominees, all headed for easy
confirmation: William Casey to be Director of Central Intelli-
gence, Samuel Pierce to be Housing Secretary, Frank Carlucci to
be Deputy Defense Secretary.
Casey said it's his intent to reinvigorate the CIA.
"Our defense Is only as good as our intelligence," he said. To
do that, the senators said, the CIA must stem the tide of recent
leaks. Casey agreed.
WILLIAM CASEY: You cannot maintain an effective and
successful intelligence service if the people who are providing
information feel that they're not secure.
GIBSON: Samuel. Pierce, nominated for Housing and
Urban Development, said inflation was public enemy number one,
and so his agency should expect sizable cuts in its budget and
in housing programs.
SAMUEL PIERCE: I intend to quickly, but carefully,
review the programs at HUD, with a view toward cutting unneces-
sary costs.
GIBSON: Pierce was asked if a 10 percent cut seemed .
realistic. He said it was.
Frank Carlucci, number two at Defense, however, said
OFFICES IN: WASHINGTON D.C. ? NEW YORK ? LOS ANGELES ? CHICAGO Dt I 120IT 0 AND OTHER PRINCIPAL CMES
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OFFICE OF CURRENT OPERATIONS
NEWS SERVICE
DISTRIBUTION II
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STAT
6'
3
Item No.
Ref. No.
-"tA106
? ? R W ZVTCZCVYX 110568
TPM-CARLUCCIs 1ST Los R058520
TEDS:- NEW INFORMATION FIRST 6 GRAFS$ REWORDING 6'w GAnr PVS FOR
TRANSITION
TBY. W. DALE ELSO
TASSOCIATED PRESS
WRITER
WASHINGTON (AP) FRANX CARLIICCIs PRESIDENT-ELECT RONAin RPAnAN'c
NOMINEE AS DEPUTY SECRETARY OF DEFENSE, SAID TODAY THE UNITED STATES
IS BEING OUTSPENT BY THE RUSSIANS ON ARMS AND NEEDS TO DEVELOP THE
ABILITY TO FIGHT A NUCLEAR WAR,
CARLUCCI!' NOW DEPUTY DRIECTOR OF CENTRAL INTELLIGENCE, APPEARED TO
BE TAXING PAINS IN TESTIMONY AT HIS SENATE CONFIRMATION HEARING TO
DEFUSE SUGGESTIONS BY SOME CONSERVATIVES THAT HE MIGHT HAVE BEEN
PARTLY TO BLAME FOR A MEAXENING OF U,S, INTELLIGENCE,
SEVERAL MEMBERS OF THE FIRMED SERVICES COMMITTEE SAID THEY WILL
SUPPORT CARLUCCI AND HIS NOMINATION APPEARED HEADED FOR APPROVAL BY
THE PANEL AND THE FULL SENATE,
CARLUCCI SAID THE SOVIET UNION IS OUTSPENDING THE UNITED STATES IN
ALL MILITARY CATEGORIES AND "WE'RE GOING TO HAVE TO WORM HARD AND
MANE SACRIFICES TO CATCH UP,"
HE SAID HE EXPECTED THE RUSSIANS TO '%7TPA UP THEIR SUBVERSION IN
THE PERSIAN GULFA1REA" DURING. THE COMING DECADE AND ADDED THAT WE
NEED TO IMPROVE CONSIDERABLY OUR ABILITY TO DEAL WITH THAT SUBVERSIVE
EFFORT,"
"THE SOVIETS ARE DEVELOPING A NUCLEAR WAR FIGHTING CAPABILITY AND
WE ARE GOING TO HAVE TO DEVELOP THE SAME AND THAT IS A VERY TALL
ORDER" CARLUCCI SAID, "THE TRENDS ARE RUNNING AGAINST US,"
REAGAN ANNOUNCED HIS SELECTION OF CARLUCrl ON SATURDAYS
iT,;
DISAPPOINTING EPUBLECANS WHO HAD FAVORED THE NOMINATION Or
WILLIAM VAN CLIAVIS CONSERVATIVE msFin OF THE MEAGAN TRANSITION TEAM
DEALING WITH DEFENSE,
TCARLUCrl WAS: 4TH nRAF
AP-NY-01.-13 1.2.23ST
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7:T .7=1 21:::T.E.A.
Z; '7
THE WALL STREET JOURNAL
12 January 1981
Carlueei
Cl,
=gene
By a WALL STREET JOURNAL Staff Reporter
WASHINGTON ?? President-elect, Ronald
Reagan nominated Frank C. Carlucci as
Deputy Secretary of ?Defense in a? personal.-
-victory for Defense Secretary-designate Cas-
'par Weinberger. ,-
_
The ,President-elect, also named Darrell
Trent a campaign aide, to the No. 2 spot at
the Transportation Department.
Mr. ?,Carlucci, 50-year-old deputy director
of the Central Intelligence Agency, is a long-
time 'Weinberger associate. However, Mr.
Carlucci ,lacks significant defense experi-
ence, as does Mr. Weinberger, and his nomi-
nation was opposed bitterly by conservative
Republicans who take a hard line on defense
matters. These Republicans had pressed for
a conservative nominee such as William
Van Cleave, a strategic arms expert who
headed the Reagan defense transition team.
The CaniPaign against Mr. Carlucci was
bitterand personal, and included an anony-
mous memo accusing him of undermining
U.S. intelligence activities while at the CIA.
But in an interview last week, Mr. Wein-
berger said he is "completely satisfied" that
Mr. Carlucci's `conservative credentials
and conservative philosophy are all there."
Mr. Weinberger has said he was seeking "a
complete alter ego" as his deputy. "
Mr. Carlucci has served as Mr. Weinber-,
ger's alter ego twice before--once as deputy4
chief of the Office of Management and Bud-
get and again as Under Secretary of the De-
partment of Health. Education and Welfare.
Mr. Weinberger headed those agencies dur-
ing the Nixon and Ford administrations. ,?
- At the Transportation agency, Mr. Trent
becomes the second campaign aide to_filla.
top post: Secretary-designate Drew Lewis
was also a campaign official. ? s"-:
' Mr. Trent, 42, has been on leave from the
Hoover ? Institution At Stanford University,
where he was associate director and senior
research fellow. Since 'Mr. Reagan's elec-
tion, Mr. Trent has directed the President-
el9cr,s Office of Policy Coordination...,
0
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A1T.tCLE A ii). THE WASHINGTON POST
ON PAU 11 January 1981
Carlucci Position
At the Pentagon
ecomes Official
A few weeks after most of Washington
knew who Caspar W. Weinberger wanted
as his deputy at the Department of Defense,
President-elect Ronald Reagan made it offi-
cial yesterday, nominating Frank C. Car-
lucci, now deputy director of the Central In-
telligence Agency, for the job.
Carlucci has broad government experience,
starting with Foreign Service positions in
South Africa, Zaire, Zanzibar and Brazil. He
was an official in the old Office of Economic
Opportimity and served as 0E0's 'director in
1971. _Then he went to the Office of Man-
agement and Budget and later-was an und-
,ersecretary of health, education? and welfare.
He also, served as ,ambassador to Tortuga!
until moving to the CIA in 1978.
What Carlucci doesn't- have, in more than.
two decades of government service, is any
substantial experience in defense. His activi-
ties in behalf of SALT II also made hini de-
cidedly unpopular with the more conservative
members of the GOP. But Weinberger made
s it known he wanted Carlucci, and yesterday
the president-elect officially agreed
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ortepu NEW YORK TIMES
ON Ma fort:::024 11 JANUARY 1981
WASIIINtTON,`,,,Jan. Caspar W.
Weinberger, the Defense ircretary-
designate, apparently previileZ, today in
, a struggle over control of, the Defense De-
partment as President-elect Ronald Rea-
gan's transition office announced that
Mr. Weinberger'S'choice, Frank M. Car-
lucci,,,would be Deputy, Secretary of
De-
fense. ' ?
Conservative opposition to Mr. Carluc-
ci, deputy director of the Central Intelli-
gence Agency, had prompted Mr. Wein-
berger earlier to tell Mr. Reagan that he
would not serve in the Cabinet unless he
could name his own deputy.
The 51-year-old Mr., Carlucci; a 'career
civil servant, .served as assistant to Mr.
Weinberger when Mr. Weinberger was
head of the Office iof Management and
Budget and Secretary of Health, Educa-
tion and Welfare under President Nixon.
Mr. Carlucci was also named Ambassa-
dor to Portugal by President Ford and
was appointed to the No. 2 post at the
C.I.A. by President Carter in 1978.
' The rift over MiTCarluc,ci's latest ap-
pointment was the' focal point, of ,a
broader struggle , in the Reagan camp
over control of the Pentagon's budget and
staffing- policy. Some close advisers to
Mr. Reagan insisted that second-level
ap-
pointments should come from lists of
Reagan loyalists. Also? 'conservatives
argued, that Mr. Carlucci had little ex-
perience in military matters and had
helped weaken the intelligence agency
under Mr. Carter by ending some covert
operations; 4). ?'??'', ?'!?? ?4 ?-? ?.??
Opposition to the appointment came
not only from long-time Reagan advisers
like William E. Van Cleave, who headed
the Pentagon` transition team until Mr.' ?
Weinberger dismantled it, but also from
such conservative politicians as Senator
Jesse Helms Republican of North Caron.?
Reagan insiders say that Mr. Weinber-
ger is also likely to have his way on most
other appointments it the Defense De-
partment. ??? ,
Mr. Carlucci's government service
began in 1858, when he served as a For-
eign Service officer in Zaire. He was also
Consul- General in Zanzibar and counse-
for political affairs in Rio de Janeiro.
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.) BALCIMORE SUN
CI4 11 January 1981
Carlucci receives post
, at Defense despite
ts
opposition of right
? Washington (AP) ?A controversial Central Intelligence
Agency official, Frank C. Carlucci, has been appointed to
the No, 2 post at the Defense Department in President-
elect Reagan's incoming administration, the Reagan tran-
sition office said yesterday. ,
? The announcement confirmed widespread reports that
Defense Secretary-designate Caspar W. Weinberger had
? triumphed in a battle with conservative Republicans over
his choice of the deputy director of the CIA to be deputy
? defense secretary., ? ?
? Mr. Carlucci, 50, served as Mr. Weinberger's assistant
? when the secretary-designate directed the Office of Man-
? agement and Budget and, later, the Department of Health,
Education and Welfare for President Richard M. Nixon.
? GOP conservatives raised strong objections to Mr. Car-
? lucci, claiming that he lacks military experience, failed to
resist President Carter's reduction of emphasis on covert
CIA activities, and aided Mr. Carter's campaign for the
still-unratified SALT II treaty with the Soviet Union.
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WASHINGTON STAR
11 JANUARY 1981
?
0* Pe ta,,cc 0
on . I
:
' ment, Victor A. Schroeder. a native
of Kansas and developer of shopping
malls, reportedly is in line to replace
John Sawhill as. the S175,000-a.yeart
chairman, of the Synthetic Fuels Cor-
poration. The Capital Energy Letter.
quoted Schroeder. 59, as saying. that
he had been asked to take the energy
post by the Reagan transition head-.
quarters. Schroeder has been a dep-
uty -team leader in ;the transition
process
Sawhill had hoped to keep :the )
synthetic fuels job.
,By Jeremiah O'Leary '
? ; Washington Star Staff Writer
President-elect Ronald Reagan yes-
terday nominated Deputy CIA Direc-
tor Frank C. Carlucci to be deputy
secretary of defense under Caspar
W. Weinberger.
noininationannounced at
transitidii, headquarters here by '-
press spokesmen James Brady, is a?
. , yictoryjor,Weinberger, who insist!':-.1
? ed tharshe be allowed to select his
own deputy despite,strong
ton to, Carlucci from Some.of Rea-
gan's advisers.:
-The. opposition to th,e 51:Year-old
Carlucci has centered on allegations
that he istoo liberal and lacks exper-
ience in.defense matters::
wThesPrincipal Reagan member of
the Defense Department, transition
team, William A. Van Cleave, report-
edly does not get along with 'Wein-
berger, and :Weinberger rejeCted;
him for the deputy position.
Weinberger knows, Carlucci well
tag&
_? FRANK CARLUCCI ,
To be 'deputy secretary of defense
;
- :1 ? >-?
from their prior service together -
in Washington, especially in the De-
partment of Health, Education and
Welfare and the Office of Manage-
merit and Budget in the Nixon ad-.
ministration. Weinberger's primary,
reason for insisting on Carlucdi as
his deputy is his high regard for
Carlucci's administrative ability.
Carlucci built a distinguished
record as a Foreign Service officer
from 1956 until'1965.--Later' he -was?
ambassador to Portugal when that
country was giving up its African'i
colonies and going through a tur-
bulent transition from:. right-wing
dictatorship to parliamentary de-
mocracy
A ?
Carlucci, a native-of Scranton, Pa.,:
graduated from Pthicetori and Hdr;r?I
vard!Business Administration
School before service in the Navy
as-a lieuitenant;during the Korean
7-- ?
in another transition develop-
-
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ti
NEW Y.ORK D ULY NEWS
i Januar! 1981
? '..:. ' .: -4 -
, .
t.'farlucci; like Weinberger, was not suf-; Ity at the Welfare ..Department from:
ficiently experienced on defense issues,. 1972 to 1974, Carlucci was named am-i
.t ? particularly complex weapons systems. bassadoi? to Portugal, a post he held for
, .
, Washington (News Bureau)?Over- They also- argued that Carlucci did not".?, three years before his appointment to i
riding objections of Republican conser- ..... share their hard-line stand against the .._.the CIA. - . . - ,.:-... -,,, . 7 ...:
: *.vatives;- President-eleq;Reagan yester-..,- Soviet union, ? - , ?-.' . ,.':,,--.. -',-'.' :-:.?:-...'....::.:/,' The Reagan transition office 'also I
'.--....1.clay nominated Deputy -CIA Director.... ' ::. i: ..,= ?- ' 1
":' ' -? - .4-1-'.:-.1-P: -announced yesterday' the appOintrnent 1
? Frank C. CarluOci to be deputy defense ],?,,::.)TIIE OPPOSITION to Carlucci was !-
.-of Sheila Burke Patton to be press !
'? ;.secretary; - :;..? ...--; ',, .;:::,,..7'..:: . ,:%'?:: ?,..,'.; centered among conservatives ,-on.... secretary for Mrs. Reagan.? ? ?- ? ;
- ,- f ' , ' "" ' , i -4 -. ' ' Capitol Ilill, but was shared by key -.. .-. , . . . : . ? ...; , ,.. . ? :..? !...-. t ? ,,-..1
? ' . Cal-Neel, 50, had-been' dem:ay . to , members of Reagan's defense transi- PATT01,. 38,..f, vice jaiesident and I
- .Caspar . Weinberger, . Reagan 's _choice ...tion team, including the director; Wil-:. account exeCtitivelor Hill and Know1-1
:: :for defense.! secretarY, -when --, Wei '
n- .::liam Va,n Cleave. .....:- ? -----------,::::i ton, .Inc., .a 'leading 'Public.: relationi i
. -..! bergen headed the-- DePartment_, of ,..,--,. Carlucci, a former career -foreign- firm, replace Robin Orr, au i Oak-,H
s'f Health, Education and Welfare during ..:-;
: service officer, held a number, of .dip-.. land (Calif.5 Tribune society columnist 1
'.. 0.e Nixqn,administr",.atieon,.1,::--.,::::':-.-i,;- ;:r.X.lotnatic. posts in.: Africa . during the'.., who held the post?,:ai :the. next .First ...1
, ..-.CarlticCi hc-1 been.1,Veinberge?i.tOi).::?...1950s" and 1960s. In 1969, PresicientLady'k 'Press secretary for only 28 i,c,laYS '
: choice for the No. 2 post at the Defense., ...Nixon appointed him -assistant director t : ,before resigning,:-...P.-'..'r'F: :-., i , ::::iiii
, . Department, despite, copservative. ob:-.V..-, for :operations 'of ",the --. Office : of ::!..'?: -. Unlike her predecessor, MrS:PattOri-;-
?!;.:;_jections.:;::'-i;',,f4?::..,;*,1:".!,:: ,...:::.?"r-k.iEconomic OppoTtunitY, and in 1.97,I. he,. is "an :exPerienced;. :Washington '.11end..;';
.? ?,?The conservative opponents of Car \;:;,','wa named head of the 0E0.- Y.::: ;:st 'il-..She Was born in ,WaShington and Jives ?1
UC'ci'g''4;app6intmerit I 'contended : that:,:':1,-,;.A.ftenserving aS Weinberger's depu--_-.;- in suburb-in FallsChurckt,-Va;;2;
.ii
;...,,,,,;41:0;,,,, --,-,---,A " ", ??-.--- .
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C LIZ A iT C.A.StD
0
THE WASHINGTON POST
11 January 1981
25X1A
i4oati&nnOli?
Washlitgare post-soli 'Netter-
If Ronald, Reagan'S.:?Cabinet prO;ideS'a
clue to the ay; his administration will- per-
fm, it is; like: to. be pragmatic, hard-
working and largely lacking- in unconven-
tional ideas-
The Cabinet; finally completed last Week
with,the selection:Of Terrel H. Bell as seC--
retarY-,;? of :. education, is overwhelmingly.
profeesional' and
balanced anaong,:ethaflicting claims .w.,ithin
the Reagan constituencies. For the most
part, the same description could have been
made_ of the California State cabinet during'
Reagan's eight Years as governor- .
Like -..:President.;;;;Sarter before hinii;
Reagan, turned for his. key Cabinet.: ap;..'"
pointments,:to lii.Sloya.fcadre in state gov-
ernment and to SurviV.,,6rs ,O1". hi4-paity's last-
-national aciministreitiorLr,..: '
Carter 'pledged tn3ee'''a-different:'kind gf
Democrat and theri..-relied .on -the second:.
string of the: Kennedy.: and Johnson ad-
ministrations for- severalmajor- appoint-
ments. Reagan,- after promising that be
would unleash the 'genius of the free enter;;'
prise system .and.bring7.6 Washington the-,
.best brains it could provide, chose major
figures of the Nixon administration for two
of his top four Cabinet Positions: Alexan-
der M. ',Haig Jr.''as.jeecretary Of State and
Caspar :W. Weinberger as secretary of de- ,
fense. The numbei.woUldlaave been three
..of four if .Iteagen*:firstaiiiiee. as secretary
of the ,hack
been willing tn.take;the-job a seCond time;:
Other,toP.Cabinet selection
William French Smith- as attorney generat:,
the latest entry in the old crony
, sweepstakes at the, Department of Justice
This, tociefollowed,the -predictable pattern'
- - of Reagan's" governorship; he named his
executiveZ,Secreth-r-t;tn,the..statt supreme
COUrL".
_ is:themak:One:Vetilan'Res-
".".-publican describes most of: Reagaif
choices. For the most part; this assistant to.
the transition: thinks that the ',Reagan
.?.
choices will perform professionally' and effi...s
''.._ciently but are not likely-to Make waves
"Ron Reagan doesn't like -surprises". says'
ime of- 'the' inCokiiing president's fmart-
Lai.'...--,:stippOrters. He likes people
trotArl:ehim ,.vhom- he knows and.
trosfeer
4 Or, the- 16 Cabinet-level' selections,
Jrnith'is 'aversonal friend- and Wein-
bergaze-lo.s.loyalc former aide whoni
Ileagan: used-to -refer to as "my Dis-
aeli,.Centrat Intelligence Agency Di-
rect9Vdesignate William J.. Casey was
Reagan's:1980 campaign director. En.
frgy Secretary-clesig,nate Jarries B. Ed.:
warcIK-ln..-additionetn. representing -a.
Iraditipnalepolitical payoff to southern
upp:?..itersi:.-backed :Reagan. in '1976
1i/hen:his-challenge. tn President Ford
fouralehelp_scaree amongGOP office.'
linidees...-St - - -
! TI,..,,voialters ;oil:. the: list. `are also loyal
fteaganites ---: Transportation Secre-
designateeDrew Lewis, who was-
an effective Reagan ',operative at the
RepUblican National . Committee, and.
tlealth,,, and Human:.Services Secre--
lar3.'"-des.ignata. Richard S.- Schweiker,
-wha'lai rarely differed with Reagan
ince,. the-.former. California governor
icki'd him for vice president in 1976.
i. But Lewis and Schweiker also de.'
inonstrate. the ability. of Reagan to
loth-out beyond his natural conser-
vative base in the Republican Party,
as does the selection of James Baker
III as Whia.:-.1-16uSe i:. chier; of staff.
Baker was' Eord'S-ehairman in 1976
and.J.,esy,is,:wa..i the Ford campaign di..
r In, ;the key state of PerinsylVa-
nlit SChk-eiker: used- to be considered;
:0610R;liberal, and. hais -still likely to
dirffer4with conservatives on such po-
fentially?,totiehy.,issueS.as health main-
tiwifiee. biganizationS,,,;, ;. ;12;7.,
-.1USgliVs; cabinet selection .process,.
atitt-V,.pome degree. the Cabinet itself,
dinionstrates:three Reagan .Character-
isqliat are...likely ..to .be . important
innthePre.sideney;.his seeming detach;
?mt,rnVileem.the....daily,,buSiness of gov-
eriCA-ig; : :his.,,, proclivity . :... fora, .,, balancing,
'Ciiiiflidting.C'onstituericieS,,and a some;
74Otantradietory, tendeney, to cling
t'111:1,........-,b6,,T.1..Y.. 141 4.,13e, r.tilki9.-'1,9. .PP.O?t:._.''
TriellT..L,;--- ,:-?,. -,-.; ,;,-.-,,,C,-?r, -.4.7,-;:i-,.:,-...----;
'7711Taggaiii,'s de.tichriient,"so extreme in,
).
aii.pariSbli to his immediate prede--
seems almost like indifs
mikittivotRea
-A902.4P,,i, ,v.1,45o#9..fel,,,...hi.,..
Approved For Release 20
style a virtue as governor, when he
frequently Idecided an issue froth a
narrowed list of options brought to I.
him by hides. ;'1
But-Reagan can be a hard man to
dissuade when lie has made up his !
mind about something. He hardly
knew. Haig- personally .but was con-
vinced that the: former- NATO com-
mander had the quality of profession-
al .:toughness Reagan much admires
coupled v,itha "realistic" view of Sovi-
et military_capacity and intentions.
Suggestions that Haig could face a
difficult. Senateconfirmation - fight
-never made- headway. with, Reagan,
who was willing: to fight for his- first.
choice.-.- .. ? -;,..
Three. other-Reagan .selections: de-
monstrate an executive capacity- for
overriding the suggestions of his staff.
:One is Smith, whom Reagan wanted
at his ? side in .Washington regardless
of qualifications or stories about."cros,
nyism." Another is Casey, whose. ener-
gy and intellectual capacity were
? questioned by some of His foniaTi??
,leagues on the campaica_i staff. -
T e tnun a Niay st,inter-
?esting Reagan. personal choice is his
only . woman Cabinet nominee,
Georgetown Prof. Jeans J. Kirkpatfick,
as ambassador to the. United Nations.
Reagan became interested after -read-
ing a Kirkpatrick article in"Cornmen-
tary" given him' by foreign policy, ad-
viser Richard . V. Allen. Candidate
Reagan asked to have a meeting; in-
terviewed her on his campaign plane
and became personally convinced shei
:should have a role in his. adrninistra4
'Con. .
- What. *May. have fascinated-Reagan
self;styled
trick -7, the only Demcratlir his
Cabinet ? is that she seems to be
embarked-on -the -same long 'voya,ge
from liberalism. to conservatism Which.
Reagan :traveled_ long- .ago.- AS -such,
;she ratifies for the'incotaing preSident
one of his favorite notions, that the
Democratic Party deserted him rather,
,than the other.way, around. -:v
',Reagan's. pragmatic tendencY..td be,
a balancer allows him-to be-all things-
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OA PIGA
NEW YORK TIDES
11 JANUARY 1981
Transition Into
Reality-ElICOtinters
Some Complexities
" With i days to go before their party
takes out a? four-year lease on the
"White House, Republicans last week
were beginning to bump some unpleas-
ant realities of governing. "It's a little
more complex than they thought,"
said a Reagan associate.
In a three-day stopover in Washing-
ton, President-elect Reagan got bad
news economic briefings?including a
prediction that Federal budgets might
have to roll along? unbalanced until
1984, at the earliest ? and a barrage of
advice. Some aides urged him to give a
high :priority to the long-promised
quicky tax cut. Others said the cut
might have to wait:
Filling out the Administration roster
wasn't easy, either.
Republican National Chairman Wil-
liam Brock is due to be named Special
? Trade Representative this week, with
his own- chair at the Cabinet table,
? after the-idea of subordinating the job
to the Commerce Department was at
least deferred. That notion has been
argued about in Washington for years.
"Castiar W. Weinberger, the prospec-
the Secretary of Defense, reportedly
threatened to quit if he couldn't name
his own deputy and other key assist-
ants. The deputy he wants is Frank C.
Carlucci. Mr. Carlucci, now deputy di-
rector of Central Intelligence, has?
been associatek w-f?iWiNE-7976'ii?ioerger
in several p.i.vroTas governmental "
tours, but tti_uhtlie,Ileagan_agLi:2-
gard the career foreign servant as in-
sufficiently hard-nosed.
One selection, albeit a bit tardy,
didn't genenerate any smoke. Mr.'
Reagan chose T. H. Bell, COMMiS-
sioner of Higher Education in Utah, to
head the Department of Education,
which the President-elect once vowed
to scrap. James S. Brady, chosen tube
White House press secretary, subse-
quently confirmed that what his boss
had in mind for Education and the De-
partment of Energy, another agency
whose days were supposedly num-
bered, was a "scaling down" rather
than an early death. :
At one point, Mr. Reagan, told a
gathering of his Cabinet-to-be that it
would be a "no-no" for them to let poll-
tics influence their judgments. Strok-2.
ing is apparently another matter. As%
his team's confirination hearings got,
underway, Mr. Reagan told Senate:
Democrats that he haci asked their for..
mer Leader, Mike Mansfield; to stay'
on as Ambassador to Japan: Early in-
:7the:week, Mr:. Reagan paid a-fence
mending _call on? Mexican President
. Jos?oPez Portillo, who never quite
hitltoffw1thPsjd?Carterji
::
777:S.Learo-
.777 and Michael 'Wright-
344--
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5/
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WASFInir.77071 POST
9 JANU:-..-4-.Y 1981
K-;
111,eU, 171,5,,,ff at La ci
te epr ni
tinet.
L.,
,..?
? Former senatDr., Richard. Stonet
of Florida, 'a. Democrat who is on
Reagan's foreign: policy transition;2,1
T R A NS IT .1 0 N
team ,,is, listed in some reports- as: a-4-.1 -? ?
, ;leading candidate for 'assistant - sec.:4,1r- ? '
retary for. Inter-American affairs.:::T:. -The list of candidates fur head of
-Others reported. ta,he leading, candi-..cl the Arms Control and Disarmament
; dates in their- respective areas in- Agency may be dawn to two names:
elude John Holdridge,-2 currentlyz;, William IL Van:- Cleave, a
the chief CIA .specialist on- .0-3, to !! Reagan defense :policy adviser whci:-
be. as3istant. secretary for Asian and.- headed the transition team at the -
Pacific: aff and Georti,iiidely ass-timed ? that ' his traVe6-- tl:justianother'Of those . who,. it IVC .47:..:i
is'y Career federal executive is get!1;i':through the Middle East and Africa yoted:-theiefirit ;: terms mainly 01
eittlly-.praiSed..,4':::-.:::::f :
, ????:'''-?;-''',',4.'"...-';M?are somehow linked to the advent,_,;-;- Pursuit of :SeCond. termS, ::... .i,.i..,?!,Y,1
?,;y ..:,r4t!*',4,'-ji '-,,',...,*.'f --.....;:,,.:ti;2,?;, a .V. .... .." .. '1_ ',;:ti,?:.1,-1!?it' ,: - '-_,,-;..z.-t, it.16:.,P4,, .,1.1F-i..:-.:2;.c4......) ?..+#4i'le.i.0,;?.:i....:;.-.0,...:.
i
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25X1A
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ARTICLE, LETL&IIi..??:1)
ON PAG2_14/31._
THE WASHINGTON STAR
7 January 1981
PAW
?T',..,`"?`,,?5'. ? ? ,
A74TICLZ AP
0:74 ?AO;
25X1A
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NEW YORK TIMES
? 7 JANUARY 1981
WASHINGTON
20001-6
served the Democrats in varioue hieb
official and diplomatic posts, ae_ his
deauty against the opposition of rnarre-
conservative Reagan supporters_
General Haig has brought back to
Washington Larry Eagieburger, who
was Henry Kissinger's principal ad-
ministrative aide at State, and has
most recently been U.S. Ambassador
to Yugoslavia. Haig's intention is ap-
parently tre have him as his political
secretary in the third ranking office of e
the State Department. And Haig is
also consulting with Walter Stoessel,
former Ambassador to the . Soviet
Union and Poland, on the organization
By James Reston of the State Department. ?
Whether Weinbe_rgeteartelasigeeall'
WASHINGTON, Jan. 6 ? On the get the deputies they want, however
_ ? whole, the transition between the Carter remains for Reagan to decide. There is
.not only opposition from the Reagan
conservatives iTearTUEci at Defenee,
but also pressure for Haig to a,opoiat
as Under Secretacealayeaiteelleagen
California_judg, whose ignorance of
foreign affairs is equaled only by his
contested knowledge QLthe law
Washin,gton is puzzled by this
and Reagan. Reagan administrations has gone
fairly well, but on the question of how to
deal with the -American hostages in
Iran, there have been some problems.
Within a few days before the Inaugu-
ration of Ronald Reagan, the Carter
Administration sent what it regarded
as its 'liner compromise proposal for
the release of the hostages, attaching gas transition, mainly because it sal-
to it a deadline for reply of Jan. 16, dam hears from Reagan. Some depart-
four days before the Inauguration. ? merits of the Government have made
_'The?XartereAdiministration, recog- - the transition switch easily. Weinber- ?
fleeing that-the-. consequences of this ger and Secretary of Defense Brown,
proposal could probably not be dealt and IVIuskie and Haig at State have
? with before- Reagan became Presi- worked well together, but on policy
dent,. asked Reagan's people to con- and on the other officials who have to
stder the message to Iran before it was carry it out, there is still more than the
delivered. According to the White natural confusion.
House officials who drafted the corn- One suggestion here is that the offi-
promise, Reagan's cabinet appointees cials now in charge at the sub-cabinet
refused to have anything to do with it, level of deputy and assistant secre-
. or even read it without an order from taries might stay on the job for a few
Reagan, which never came. - ? weeks until the new administration se-
Alexander Haig got the point, but was lects their successors, but this has not
obviously preoccupied with his own con- been met with enthusiasm. '
firmaticrn problem. Caspar Weinberger Meanwhile in Congress there has
was sympathetic, but passed it on to been a lot of noise about the transition,
higher. authority. Edwin Meese listened and demands for tapes of Haig's pri-
? but felt Iran was Carter's responsibility vete statements on Watergate and Viet-
- and kept his-distance from what he saw nam, bufehese is not likely to get very
as problems of the past., - - , e?' far. Carter is in no mood to cause trou-
, - This 4s-- nothing new. -Even in the ble for Reagan. Haig has invited the
depths of the 1930's Depression, during senators 'to get any tapes they like
the transition' from Hoover to Rouse- about his role in the last days of the
velt, when Hoover appealed to FDR for Nixon tragedy, and doesn't want the
help in the face of bank closings, Roose- help of Nixon, who Is apparently pre-
velt refused to cooperate and left the pared to go to court if necessary to deny
' crisis to Hoover. Reagan has done the by executive privilege access to Haig's
same thing, and now must deal with the :private private White House conversations.
consequences of Carter's "final offer," Also, the new rheirrnan of the Sen-
which he has refused to read. , , ? ? :ate Foreign Relations Committee,
, There are other transition problems,. Charles Percy of Illinois, has indicated
, still unresolved. Reagan's appoint-, that he does not want a Vietnam or
meat schedule is running late. He has ? Watergate replay of Haig's role in Nix-
chosen his cabinet,- but within a few on's resignation, unless this is clearly
days of his Inauguration the critical relevant to Hiles appointment. ?
' decisions about his sub-cabinet posi- There are exceptions, of course, and
tions have still not been made, and ap- the confirmation process will undoubt-
parently there is a bit of a tussle within " edly be rough, but there Is a growing
the Reagan camp about their choices. ? feeling here that the problems of the
For example, should Reagan's ap- *, nation are too serious to be left to par-
AppP6treLe-ef-SIE00640f/39 : Obtt-litaR943340991 R9iit0laQuo 01-6
...Mary of Defense? General Haig and - should be given a chance to choose the
. Weinberger be free to select their people and policies he wants, if ordy he
; own deputies; or should they be chosen , will make up his mind where he Is
? ? _ _
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ON PAGE_Altj__
Brock, Carlucci
Expected to Get
Top Position,s
By Lou Cannon
Washington Past Staff Writer
Two favorite targets of. organized
conserratives --- Republican National
Chairman William Brock and Deputy
Central Intelligence Agency Director
Prank Carlucci ? are in line for high-
ranking positions in the Reagan a&
ministration, according to well-placed
sources.
The sources said that. Brock would
be named special trade opresentative,
a poet that currently carries Cabinet
rank. It is not dear that the position-
ret.ain that status, however.
Carlucci, one of the enduring veter-
ans of federal government service, is
scheduled to be appointed deputy sec-
retary of defense. He was the personal
choice of Secretary of Defense-
designate Caspar W. Weinberger, for
whom lie served as deputy secretary
,f health, education and welfare in
the Nixon administration.
Thee-e sources said that, President-
elect Ronald Reagan also will name
transifion spokesman, James'
Brady, as White House press secre-
tary, and that William P. Clark, a:
California Supreme Court justice who
was Reagan's executive secretary when:
he was governor, has been asked to be
the deputy secretary of state.
Brady had been on the Reagan list;
for weeks -. as administration _aides'
sounded cut, witIvno success, various
journalists for the position. At one
point Brady was depicted as less than
the first choice of Nancy Reagan, whc'.
reportedly wanted her husband to
choose someone "better, looking" , for
the job. She denied ,that this was her..
Yesterday, however, a note Was left
;on Brady's deslcs; "Since we couldiet,
find anybody good-looking, congratu-1'
lations."
THE WASHINGTON POST
6 January 1981
." The objections to Brock and Car-
lucci were more ideological.
Carlucci, a career Foreign Service
officer who once was stabbed while
rescuing a group of Americans from a
-Congolese mob, was described in a re-
cent staff paper prepared for an Orga-
nization 'of conservative .Republican
senators as an obstruction, rather
than: an asset, to 'Reagan- interests!'
He'llas. served in a Wide range of pos-
, tions- in five presidential administra-
tions,' including ambassador ,to Portti-
'.'gal.:wider President Ford. President
':Carter named him . to the CL-1 post in
The major conservative objection to
. . Carlucci,' as stated in the staff report
to the senators, was that he gave "ac-:-
'order
support" to a Carter presidential
order that ."enormously restricted in-
telligence Collection."
But Carlucci's' supporters, among
them Weinberger, see him as kind of
a 'governmental man for all seasons
with an enormous range of expertise
that he will put. atthe disposal of any
president.
. . .
difficulties _with the, right
. wing. of his own party are of long
standing, stemming especially. from his
-refusal as GOP chairman to allow
party funds to be used for opposition
? to the Panama Canal treaties, an issue
Tthat split.both Democrats and Repub-
. heaps.- ' - ? -
?, Last June, after Reagan had locked,.
the -Republican presidential
nation, 'an attempt_ was made by GOP.
'conservatives to remove Brock from
, the, party chairmanship. The effort -
--,ended a compromise , in which
Brock remained. as .,chairman: but
--..Drew Lewis, a' Reagan political-opera-.
opera-
tive who now is the designee for secre.--
- -
..tary of transportation, was made the
operating officer at the committee.
Sen. Paul Laxalt of Nevada, one of
1--,Recigarea ,closest and most influential,
friends, said yesterday.; that he had
,recorrimended Brock, for the special
.trade . representative- position. La.xalt .
-and Brock were adversaries. on the
Panama .Canal issue 'but -have Since
, patched up their differences
Brock is widely regarded among
.xnany...factions of the., qOP?; as ,having_
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Clark, in San Diego for the swear--
ing-in of a county supervisor, acknowl-
edged that he had been offered the.
State- Department post but said he
had? not decided whether he would
take it. He is known to be concerned
that 'resigning from the .California
court, often' a trend-setter among state
judicial: bodies,. would cause a liberal
shift on ..the. -seven-person court, to
which California -,Coy. Edmund G.
(Jerry) Brown Would name the re-
placement. -
That choice became even more dif-
ficult yesterday when Justice Wiley
Manuel, a moderately conservative
Brown- appointee who sometimes sid-
ed with, the conservative Clark on
criminal justice issues, died in Oak-
land after a long illness. Clark's resig- ?
nation would leave ,the court . with a
single conservative member. -
But there was, nonetheless, a strong
belief among:' Reagan intimates that
Clark. would accept- the Reagan ad-
ministration post despite his lack- of
foreign , policy expeience. Reagan
looks upon Clark as tme or his most
valued aides. and NAeived his, normal
consultation ;,vith iLa bar on judicial
appointments to ;ham& Clark to the.
court. - .
nr;Mr-4:74M4.frePP
FitAINIC CARLUC6f
to be deputy secretary of defense,,
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MIME LPPEkD HUMAN EVENTS
ON PAG.L___ 3 JANUARY 1981
20001-6
STAT
THIS WEER'S NEWS FROM
Carlucci Under Fire
? President-elect Ronald 'Reagan's new defense
secretary-designate, Caspar Weinberger, is coming
under fire for his choice of career civil servant
Frank Carlucci as his deputy. .Carlucci has been?
under such _intense heat from conservatives in
Congress and elsewhere, in fact, that Weinberger
was in -town last week, partly on a mission to
reassure conservatives that Carlucci was not the
ogre they feared. Weinberger, for instance, met
with Heritage Foundation President Ed Feulner
on Tuesday, December 23, to give his side of the
case. ,.
What has particularly hurt Carlucci, it has been
learned, was an Evans and Novak column that ran
.in the Washington Post called "Why Weinber-
ger? Why Carlucci?" The column portrayed both
Weinberger and Carlucci as neophytes in the
defense field, and suggested that the news about
Weinberget.'s pick has struck defense hawks like a
thunderbolt.
Carlucci is considered a neutral by many, and
some of his supporters insist that he did excellent
work as ambassador to Portugal in the mid-1970s, ?
but he also has strong enemies within the defense -
and intelligence community. A two-page
memorandum--reportedly partially based on the
work of a high-level CIA official, now retired?
has been circulating through Capitol Hill for
several weeks. Among the charges leveled against
Carlucci, now deputy director of the CLA:
He suppressed critical intelligence footnotes
dealing with the . role of:the -Soviet annorect
brigade in Cuba. ? '
la
?
He - actively, supported ,"Executive Order
12036* which enormously restricted intelligence
collection." :
? He personally offered support for the Bayh-'
Huddleston CIA charter legislation in 1980 which
is severely- restrictive and is "contrary to the Rea-
gan transition team's view of what should be done
to restructure the intelligence community." -
. ? He downgraded the significance of the loss of
the U.S. monitoring stations in Iran when. Kho-
meini and his supporters seized control of the
country and closed down these bases. _
,. ? CIA- -transition .team members report that
Carlucci , has been "singularly uncooperative"
with the President-elect's people..
-"Finally," the memo-goes on, "Carlucci is ?
viewed with alarm himeia perwms.avobti
his name go forward iinOintnation, the confirma-
tion hearings would bring to light his dedication
to the Carter Administration and its policies. This
allegiance would be disturbing to many Republi-
cans, both on Capitol Hill and throughout the
Whether Carlucci is guilty of any or all of these
transgressions is not clear, but there is no question
that this memo is widely believed within much of
the intelligence community -- -
Weinberger, however, dismisses the charges
against Carlucci as just plain wrong. He insists he
was- for a reasonable intelligence charter, and
argues that he battled the anti-C1A extremists. Other
Carlucci defenders, furthermore, insist he is not
an ideologue, that he is a career bureaucrat who
will do what his boss tells him. Moreover,, they say
-Weinberger trusts him because he served Wein-
berger faithfully in both the Office of Management
and Budget and the Health, Education and Wel-
fare department..
Still others suggest that Weinberger, who is loyal
to Reagan, is determined to beef up the defense
budget, and that he will have plenty of backing from
Alexander, Haig as secretary of state, Sen. John
_Tower (R.-Tex.), as chairman of the Senate- Armed
Services Committee and Reagan himself. "Carlucci
couldn't do all that much damage, even, if he
wanted to," says one defender.
Carlucci's detractors, however, insist?contrary
to Weinberger's claims?that Carlucci has gone
along with the CIA's dismantling under President
Carter, and that his position as deputy secretary of
defense would be critical.
"This post," says one expert very familiar with
the structure of the Pentagon and the Reagan
transition team's recommendations for change,
"will have a powerful influence over policy, and
thus it is essential that Weinberger have somebody
there who is totally loyal to President-elect Rea-
gan's ideas. Carlucci is not the man for the job."
And whether Weinberger will be able to defuse all
this criticism with his talks to conservatives and
defense hawks in Congress is not at all clear.
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