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The Washington Post Approved For Release 2006/01/30 : CIA-RDP91-00901R000100129094.6 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 The Wall Street Journal The Christian Science Monitor New York Daily News USA Today The Chicago Tribune 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. Page Approved For Release 2006/01/30 : CIA-RDP91-00901R000100120001-6 Approved For Release 2006/01/ 30 : CIA-RDP91-00901R00010 The Washington Post A - 041-4150y tork Times tlte Vashington Times The Wall Street Journal The Christian Science Monitor New York Daily News USA Today The Chicago Tribune STAT 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. Page Approved For Release 2006/01/30 : CIA-RDP91-00901R000100120001-6 2006/01/30 : CIA-RDP91-00901R0 Approved For Release 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. 00100120001-6 The Washington Post The New York Times The Washington Times 8 - The Wall Street Journal The Christian Science Monitor New York Daily News USA Today The Chicago Tribune Date 9? ?Oecz.77 Approved For Release 2006/01/30 : CIA-RDP91-00901R00019,040001-V3--: STAT 01/30 : CIA-RDP91-00901R00010012 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 Washington Post ON efik Times Washington Times The Wall Street Journal The Christian Science Monitor New York Daily News USA Today The Chicass Tribune Date ad 98 7 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. Page 6/01/30 : CIA-RDP91-00901R000100120001-6 Conffnued STAT Approved For Release 2006/01/30 : CIA-RDP91-00901R000100120001-6 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 Approved For Release 2006/01/30 : CIA-RDP91-00901R000100120001-6 2 The Wasnington Post The New York Times puppi# e ashington Times -2 The Wall Street Journai rhe Christian Scionce Monitor New York Daily News USA Today The Chicago Tribune Approved For Release 200 6/01/30 : CIA-RDP91-00901R00010 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 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. Page Approved For Release 2006/01/30 : CIA-RDP91-00901R000100120001-6 Ha UNLI STAT A proved For Release 2006/C1/3n ? CIA-RnP91-00901R000100120001-6 The Washington Post Carlucci a Tough Pragmatist , The New York Times A 4 The Washington Times _ r The Wall Street Journal . in Pentagon's Corner The Christian Science Monitor New York Daily News - 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 The Chicago Tribune 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." PApproved For Release 2006/01/30 : CIA-RDP91-00901R0001d8120001-6 Approved For Release 2006/01/ 0 : CIA-R 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 Approved For Fitilettge 0 f1-11:6i101-q./6R00 2 ugust lv 0100120001-6 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 Approved For Release 2006/01/30 : CIA-RDP91-00901R000100120001-6 STAT STAT Appograskili* 2091refltAgfpAr1W1-00901 ON PAGE 0' 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." Approved For Release 2006/01/30 : CIA-RDP91-00901R000100120001-6 STAT STAT STAT STAT STAT STAT 1 Approved For Re leaSel 2GMCDT/36POGIA-RDP91-00901R00 100120001-6 ....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." STAT tr/ STAT STAT STAT Approved For Release 2006/01/30 : CIA-RDP91-00901R0 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? 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. Approved For Release 2006/01/30 : CIA-RDP91-00901R000100120001-6 ? ARTICLE APPFMED roved For Release 200N/AlTa:RAPAIN0901R000100120001-6 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; Approved For Release 2006/01/30 : CIA-RDP91-00901R000100120001-6 Continued Approved For Release 2006/01/30 : CIA-RDP91-00901R000100120001-6 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. Approved For Release 2006/01/30 : CIA-RDP91-00901R000100120001-6 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- Approved For Release 20M701/30 : CIA-RDP91-00901R000100120001-6 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. Approved For Release 2006/01/30 : CIA-RDP91-00901R000100120001-6 'PP EAferroved For Release 2006/01/30 : CIA-RDP91-00901R000100120001-6 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. Approved For Release 2006/01/30 : CIA-RDP91-00901R000100120001-6 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????? Approved For Release 2006/01/30 : CIA-RDP91-00901R000100120001-6 STAT STAT Approwver e 2006/01/30 : CIA-RDP91-00901R000100120001-6 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. Approved For Release 2006/01/30 : CIA-RDP91-00901R000100120001-6 4,/ /1) STAT WALL STREET JOURNAL ARTICLE LPPFAHR - . ----pr.oved For Release 2006/MOrdb%A-RDR91-00901R000100120001-6 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. Approved For Release 2006/01/30 : CIA-RDP91-00901R000100120001-6 ARTICLE A:ilatte 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. Approved For Release 2006/01/30 : CIA-RDP91-00901R000100120001-6 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 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- Approved For Release 2006/01/30 : CIA-RDP91-00901ROd VIrginia. staffer at 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. ? Approved For Release 2006/01/30 : OIALRIZIO94400EtatKl001A,M001-6 Dennis Mullin and James M. Hildreth 0114&lipipiRelease 2006/01/30 : CIA-RDP91-00901R000100120001-6 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. Approved For Release 2006/01/30 : CIA-RDP91-00901R000100120001-6 ARrCL PAGC or Release 2006/01/30 : CIA-RDP91-00901R000100120001-6 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 Approved For Release 2006/01/30 : CIA-RDP91-00901R000100120001-6 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, Approved For Release 2006/01/30 : CIA-RDP91-00901R000100120001-6 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. Approved For Release 2006/01/30 : CIA-RDP91-00901R000100120001-6 STAT Approved For Release 2006/01/30 : CIA-RDP91-00901R000100120001-6 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- Approved For Release 2006/01/30 : CIA-RDP91-00901R000100120001-6 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 ??,14WAiiiqaLite,lease 2006/01/30 : CIA-RDP91-00901R000100120001-6 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. Approved For Release 2006/01/30 : CIA-RDP91-00901R000100120001-6 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, Approved For Release 2006/01/30 : CIA-RDP91-00901R000100120001-6 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. Approved For Release 2006/01/30 : CIA-RDP91-00901R000100120001-6 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. Approved For Release 2006/01/30 : CIA-RDP91-00901R000100120001-6 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. Approved For Release 2006/01/30 : CIA-RDP91-00901R000100120001-6 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 ApplfriarMsor Release 2006/01/30 : CIA-RDP91-00901R000100120001-6 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 Approved Fpr Release 2006/01/30 : CIA-RDP91-00901R000100120001-6 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. Approved For Release 2006/01/30 : CIA-RDP91-00901R000100120001-6 Approved For Release 2006/01/30 : CIA-RDP91-00901R000100120001-6 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. Approved For Release 2006/01/30 : CIA-RDP91-00901R000100120001-6 Approved For Release 2006/01/30 : CIA-RDP91-00901R000100120001-6 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 Approved For Release 2006/01/30 : CIA-RDP91-00901R000100120001-6 Approved For Release 2006/01/30 : CIA-RDP91-00901R000100120001-6 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 Approved For Release 2006/01/30 : CIA-RDP91-00901R000100120001-6 Approved For Release 2006/01/30 : CIA-RDP91-00901R000100120001-6 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. Approved For Release 2006/01/30 : CIA-RDP91-00901R000100120001-6 Approved For Release 2006/01/30 : CIA-RDP91-00901R000100120001-6 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 Approved For Release 2006/01/30 : CIA-RDP91-00901R000100120001-6 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. Approved For Release 2006/01/30 : CIA-RDP91-00901R000100120001-6 Approved For Release 2006/01/30 : CIA-RDP91-00901R0 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. Approved For Release 2006/01/30 : CIA-RDP91-00901R000100120001-6 ? 4 !;.snel r AppEARnil rove d For Release 2006/01/30 : CIA-RDP91-00901R00010 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 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 For Release 2006/01/30 : CIA-RDP91-00901R000100120001-6 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 Approved For Release 2006/01/30 : CIA-RDP91-00901R000100120001-6 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.'" For Release 2006/01/30 : CIA-RDP91-00901R0001t00c12001MH6nt of management 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. Approved For Release 2006/01/30 : CIA-RDP91-00901R000100120001-6 In me an on r- it oo rs te V. as 0- of ss 0 0 m 1 a fi th Approved For Release 2006/01/30 : CIA-RDP91-00901R0001 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. ? - Approved For Release 2006/01/30 : CIA-RDP91-00901R000100120001-6 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. Approved For Release 2006/01/30 : CIA-RDP91-00901R000100120001-6 STAT Approved For Release 2006/01/30 : CIA-RDP91-00901R000100 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. Approved For Releas-e-20-06M1/30 : CIA-RDP91-00901R000100120001-6 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 Approved For Release 2006/01/30 : CIA-RDP91-00901R000100120001-6 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 Approved For Release 2006/01/30 : CIA-RDP91-00901R0001001 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 Approved For Release 2006/01/30 : CIA-RDP91-00901R000100120001-6 Approved For Release 2006/01/30 : CIA-RDP9140111913101170010 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. Approved For Release 2006/01/30 : CIA-RDP91-00901R000100120001-6 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 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 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 Approved For Release 2006/01/30 CIA-RDP91-00901R00010 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. ? Approved For Release 2006/01/30 : CIA-RDP91-00901R000100120001-6 .0T I Mr, ci Approved For Release 2006/01/30 : CIA-RDP91-009 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. ?, Approved For Release 2006/01/30 : CIA-RDP91-00901R000100120001-6 STAT ppRrozDed For Release 2006/01/30 : CIA-RDP91-00901R004120001-6 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 Approved For Release 2006/01/30 : CIA-RDP91-00901R000100120001-6 STAT e#,4 Approved For Release 2006/01130.: CIA-RDP91-00901R000100120001-6 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). Approved For Release 2006/01/30 : CIA-RDP91-00901R000100120001-6 Approved For Release 2006/0IMO yellik-KM?-00901 R0001 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. Approved For Release 2006/01/30 : CIA-RDP91-00901R000100120001-6 25X1A k Approved For Release 2006/01/30 : CIA-RDP91-00901R000 00120001 6 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 Approved For Release 2006/01/30 : CIA-RDP91-00901R000100120401-6 Approved For Release 2006/01/30 : CIA-RDP91-00901R000100 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 Approved For Release 2006/01/30 : CIA-RDP91-00901R000100120001-6 Approved For Release 2006/01/30 : CIA-RDP91-00901 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 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''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 '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 Approved For Release 2006/01/30 : CIA-RDP91-00901R000100120001-6 Approved For Release 2006/01/30 : CIA-RDP91-00901R 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 Approvea i-or Keiease 2006/01/30 : CIA-RDP91-09901R000100120001-6 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 Approved For Release 2006/01/30 : CIA-RDP91-00901R00010 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. 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 ' Approved For Release 2006/01/30 : CIA-RDP91-009044000- Approved For Release 2006/01/30 : CIA-RDP91-00901R00010 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. Approved For Release 2006/01/30 : CIA-RDP91-00901R000100120001-6 Approved For Release 2006/01/30 : CIA-RDP91-00901R00 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. Approved For Release 2006/01/30 : CIA-RDP91-00901R0001001200,01-6 Approved For Release 2006/01/30 : CIA-RDF'91-00901R000100120001-6 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. Approved For Release 2006/01/30 : CIA-RDP91-00901R000100120001-6 Approved For Release 2006/01/30 : CIA-RDP91-00901R000100120001-6 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 Approved For Release 2006/01/30 : CIA-RDP91-00901 000100120001-6 Approved For Release 2006/01/30 : CIA-RDP91-00901 '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" Approved For Release 2006/01/30 : CIA-RDP91-00901R000100120001-6 Approved For Release 2006/01/30 : CIA-RDF'91-00901R 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. 25X1A 1,7?:-A0ifiRhved For Release 2006/01/30 : CIA-RDP91-00901R0001001200 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 Approved For Release 2006/01/30 : CIA-RDP91-00901R000100120001-6 Approved For Release 2006/01/30 : CIA-RDP91-00901R000100120001-6 ART I OLI7, APPEARED ON PAGE 6 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 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 Approved For Release 2006/01/30 : CIA-RDP91-00901R000100120001-6 cOST --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 Approved For Release 2006101130: qtAcFDP91-00901R000100120001-6 (IDNT Approved For Release 2006/01/30 : CIA-RDP91-00901R000100120001-6 or? 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. ? Approved For Release 2006/01/30 : CIA-RDP91-00901R000100120001-6 -.`,RZD Approved For Fig00`67-1:1* 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. Approved For Release 2006/01/30 : CIA-RDP91-00901R000100120001-6 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." Approved For Release 2006/01/30 : CIA-RDP91-00901R000100120001-6 c5 Approved For Release 2006/01/30 ? IA- 91-00901R0001001 LI 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. Approved For Release 2006/01/30 : CIA-RDP91-00901R000100120001-6 Approved For Release 2006/01/30 : CIA-RDP91-0 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 Approved For Release 2006/01/30 : CIA-RDP91-00901R000100120001-6 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 Approved For Release 2006/01/30 : CIA-RDP91-00901R000100120001-6 Approved For Release 2006/01/30 : CIA-RDP91-00901R0001001200j 1-6 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 ? Approved For Release 2006/01/30 : CIA-RDP91-00901R000100120001-6 Approved For Release 20016/01/10 : CIA-RDP91-00901R000100120001 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.. Approved For Release 2006/01/30 : CIA-RDP91-00901R000100120001-6 25X1A Approved For Release 2006/01/30 : CIA-RDP91-00901R000100120001-6 6,Va -PROTECtING .OUR SPIES ? : " 7"-} ? Tn NATION 14 March 1981 ? We present a Nation first articlein 1-124:journal that has eVer. 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- 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, Approved For Release 2006/01/30 : CIA-RDP91-00901R000100120 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 Approved For Release 2006/01/30 : CIA-RDP91-00901R0001001 ?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 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. Approved For Release 2006/01/30 : CIA-RDP91-00901R000100120001-6 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. Approved For Release 2006/01/30 : CIA-RDP91-00901R000100120001-6 Approved For Release 2006/0 P91-00901R000100120001-6 ? "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 Approved For Release 2006/01/30 : CIA-RDP91-00901R000100120001-6 Approved For Release 2006/01/30 : CIA-RDP91-00901R00010012 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 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 Approved For Release 2006/01/30 : CIA-RDP91-00901R000100120001-6 Approved For Release 2006/01/30 : CIA-RDP91-00901R000100120 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', - 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 Approved For Release 2006/01/30 : CIA-RDP91-00901R000100 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. Approved For Release 2006/01/30 : CIA-RDP91-00901R000100120001-6 4321= ea P.103 Approved For Release 2006/01/30 : CIA-RDP91-00901R000100120001 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 Approved For Release 2006/01/30 : CIA-RDP91-00901R000100120001-6 ? Approved For Release 2006/01/30 : CIA-RIDP91-00901R000 C14-C----E. OF CURRENT OPERATIONS NEWS SERVICE DtSTRIBUTION .1: - n 7:L1C' 7.7.1i.zuck:nuav 11:4 4C 00120001-6 25X1A ' H-3E FOLLOKNG tIVANS-NnvAK COLr IS rnPYRic.-sHTED RND FOR USE ONLY RY NENSPAPERS THRT HAVP. PRRANGrO FOR ITL: FuRlirATInN 14ITH Nr--WcPARpR SYNDICATE: IINY OTHER USE IS PROHIBITED: 7 :7- 7 7'. 7* r: 7,7i ",07 0 y, r. r" s ??? r ,?-. r??? ,... , z : ? ..: , 1.,1 , .. 1 : i ... ..: r: ni Pf.i.711.:Cr htINtirif5 jhtc.:: ve5 ..7s! n!! nr.7- -..,...-7.!:7..i: ..":.". . .- ..7 '..:"!.: nT P:.:i_Nil e-riiIn :MM.) Kil.,-;X N0-111 rt. ri hAYH'c. Kr--NARn AfTN;A "7-ORMtst ttIRC fRY5 TF n;,77ATFn X-rHRTRMZMIUU K C-Ns H HH F AN THE SENRTE INTFLLT,Nri-7 rnMMITTFF RNr: HATRF-HIRT OP -r 11 C7N7.7:A" _L. . . ! 7t6#2. 2.1.7 13211 T N77117f7-7Nr7 MGENCY -NRE GIVEN THt nw.4.vnozzNr;:n5 rtncurri-nonA rFR;7MONY IN RnMs STRNcr-IFLD iURNEReS PRIVATE ,,," .4.Sx -.HIS NRS TIARN;7R't7 R7:1-2ARn FnR KAYH'c-: RD17 TN H7iPTNr-T- MPV7 7'.7-.2 SG7R7-.1 1c rUTS IN THE AGENCIVS CLANDESTINE OPERATIONS. CONSIDERED RN ENEMY BY P FESSIONPL TNTFlzIc:rNrr rEFFIr7R5 "tRYH .212 .7 BACKED iURNER3c FiRc.T MAJnR MOVE AT THE L?M'. PRHNINr4 LFrEP.LLY OF ;? SPIES 7.-kra4 THE PAYROLL H-FiPiFn ;11RNFP ATTPrKc- BY CONSERVRTIVE REPli;:tIrAN MFM-AFRF- OF THF 7NTFI 1 TnFNrF COMMITTEE. HE RiFtln NRS THF NRT7nNAL INTELLIGENCE DISTINGUISHED SERVICE MEDAL5- GIVEN ONLY ONCE BEFORE TO , ANY M7M7.:FR OF N7117RM NTI1PR5 KAYI-1 TOP COMMITTEE RIDE RND ANnTHFR HAIRSHIRT5 NRS HONORED AT 2. M. 1., c S.-EA. L St ED,ALLION . 1. E.7 ,7ER. A!A7 .3A_ 1 :iin .P...,'Pt P 142 "2.7K r it I . 2., I m ? , F. se rRP,zinFNT-FiFrT XnNAin t: HOPE FOR DEPUTY SECRETARY nF STATE5 THr,1F.SF :"","-?" ?v," ,", m --nnm t-w*+;_nrAiPk knm ? HIS OLD FRIEND i:.ILLIAM PATRICK UtnilK5 HRS RUN INTO SEVERE PROBLEMS 04 THF 1-0MM7TT7F kFISrn 04 ONE 'Pt.111" 7- ?OLITlAL rON.7,--:RVRTIcM: . ' ' ? . - . ? - - ... .- - .. , et,jz-Fr'-'4 ilPi-7.;-ilf r!lri4M-PtiTc. ON iKi- t-Uhnair?.- 14-rinri.niN khfi !LR:; , Nn; ^ 4, R 1-AzIFORNIA SUPREME flOuRT JUSTICE5 LACK L-r. S EXPERIENCE TO ,, F.,.. Et ":V.2-. - rAFtp MN/nil/3r elease.,2006/01/3Q : CIA-RDP91-00901R000100120001-6 - ^-, nk o?ntm3 SU: ihhi 4:aU F-_ HURT VEPUTY t'ECRETRRY rEF 7DTAT7 i;ARRFN _,.?? :Ih,1 ?to? s .?????ver?-r. ANY ...-sm?????7 I.HRTSTOPHERS A :nc. tiNcsi7.1.Pc Ft 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 Approved For Release 2006/01/30 : CIA-RDP91-00901R000100120001-6 STAT _ Approved For Release 2006/01/30 : CIA-RDP91-00901R0001 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***',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 Approved For Release 2006/01/30 : CIA-RDP91-00901R000100120001-6 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 \ Approved For Release 2006/01/30 : CIA-RDP91-00901R000100120001-6 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'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 Approved For Release 2006/01/30 : CIA-RDP91-00901R000100120001-6 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". Approved For Release 2006/01/30 : CIA-RDP91-00901R000100120001-6 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 Approved For Release 2006/01/30 : CIA-RDP91-00901R000100120001 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 Approved For Release 2006/01/30 : CIA.-RDP91-00901R000100120001-6 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 Apiroved For Release 2006/01/30 : CIA-RDP91-00901R0001001200 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 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.";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':?;',,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.:, Approved For Release 2006/01/30 : CIA-RDP91-00901R000100120001-6 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 Approved For Release 2006/01/30 : CIA-RDP91-00901R000100120001-6 Material supplied by Pock, TV PepOth. Inc. may be used for file and reference uusPoses only It may not be rePoduced sold or PublIcIY demcnstroted or exhibited. Approved For Release 2006/01/30 : CIA-RDP91-00901R0001001 OFFICE OF CURRENT OPERATIONS NEWS SERVICE DISTRIBUTION II \y/ 20001-6 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 Approved For Release 2006/01/30 : CIA-RDP91-00901.R000100120001-6 Approved For Release 2006/01/30 : CIA-RDP91-00901R0001 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 120001-6 Approved For Release 2006/01/30 : CIA-RDP91-00901R000100120001-6 Approved For Release 2006/01/30 : CIA-RDP91-00901R00010 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 0120001-6 STAT Approved For Release 2006/01/30 : CIA-RDP91-00901R000100120001-6 jiiiroved For Release 2006/01/30 : CIA-RDP91-00901R000100120001-6_ 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. Approved For Release 2006/01/30 : CIA-RDP91-00901R000100120001-6 STAT Approved For Release 2006/01/30 : CIA-RDP91-00901R00010012000 .) 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. STAT 1-6 Approved For Release 2006/01/30 : CIA-RDP91-00901R000100120001-6 San= 4.3 25X1A Approved For Release 2006/01/30 : CIA-RDP91-00901R0001001 p0001-6 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- - Approved For Release 2006/01/30 : CIA-RDP91-00901R000100120001-6 CD; Approved For Release 2006/01/30 : CIA-RDP91-00901R000100120 25X1A 001-6 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 " ", ??-.--- . Approved For Release 2006/01/30 : CIA-RDP91-00901R000100120001-6 Approved For Release 2006/01/30 : CIA-RDP91-00901R000100 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., health main- tiwifiee. biganizationS,,,;, ;. ;12;7., -.1USgliVs; cabinet selection .process,. atitt-V,.pome degree. the Cabinet itself, dinionstrates:three Reagan .Character- isqliat are...likely .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 be, a balancer allows him-to be-all things- 100120001-6 25X1A Approved For Release 2006/01/30 : CIA-RDP91-00901R000100 20001-6 WU= 4.111V 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-- Appi-oved For Release 2006/01/30 : CIA-RDP91-00901R000100120001-6 5/ Approved For Release 2006/01/30 : CIA-RDP91-00901R00010 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, 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 Approved For Release 2006/01/30 : CIA-RDP91-00901R000100120001-6 25X1A Approved For Release 2006/01/30 : CIA-RDP91-00901R00010C ARTICLE, LETL&IIi..??:1) ON PAG2_14/31._ THE WASHINGTON STAR 7 January 1981 PAW ?T',..,`"?`,,?5'. ? ? , A74TICLZ AP 0:74 ?AO; 25X1A Approved For Release 2006/01/30 : CIA-RDP91-00901R0001001 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 ? ? _ _ Approved For Release 2006/01/30 : CIA-RDP91-00901R00 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_ Approved For Release i0e161603OffeatatIODP91a90811tit 000100120001-6 : &it if,: an election that exceeded even 'the most 'optimistic Republican expec-- 25X1 A .. D100120001-6 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,, Approved For Release 2006/01/30 : CIA-RDP91-00901R0001001 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. 01/30 : CIA-RDP91-00901R000100120001-6