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November 28, 1983
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~ THE NEW REPUBLIC ARTICLE APPEARE D pproved For Release 2009A 1N28gr044rR10090 at. PAGE /I Z M Casey's smart (and rich), but does he run a fii TINKER, TINKER, TINKI BY MORTON KONDRACKF~ U KITED STATES intelligence apparently had an idea that the so-called Party of God, an Iranian- connected, Syrian-protected Shiite Moslem group that car- bombed the U.S. Embassy in Beirut last April, was plan- ning an attack on U.S. Marines. But U.S. intelligence did not have agents inside the group and therefore could not warn with precision that it was planning the truck- bombing that killed more than 230 Marines on October 23. U.S. intelligence knew, too, that Cuba and the Soviet Union were militarizing Grenada, but again the United States had no in- telligence agents on the island and underestimat- ed Cuban troop strength. The U.S. had not pene- trated Maurice Bishop's New Jewel Movement, and did not know that Bishop's colleagues were planning to oust and kill him. And when Prime Minister Eugenia Charles of Dominica reported to the White House press on October 25 that "we noted with great interest the movements between Soviet Embassies and known activists" prior to Bishop's assassination, it also was news to White House policymakers. On the other hand, the faded in the stretch bet money, I'd say Casey's prescier. lance, is likely to bE ing to well-informi more disturbing r( I tell the President I. dropov had pushe. Central Intelligence Agency did predict correctly that the Soviet Union would not invade Poland in 1981, but would crack down through Polish authorities instead. Using its superb technical capabilities, U.S. intelligence was able to develop a precise analysis of how Korean Air Lines' Flight 007 was tracked by the Soviet Union, lost, found again, and shot down. And, several months before Leonid Brezhnev's death, the director of Central Intelligence, Wil- liam Casey, reported to President Reagan that Brezhnev likely would not be succeeded by a collective leadership, as agency analysts had concluded. "Chernenko peaked too soon," Casey wrote Reagan in a memo. "Kirilenko tier was xianappea oy the Red Brigades in Italy, the C.I.A. dug hard to discover who had him and where; but U.S. offi- cials say that in general, journalists like Claire Sterling have put togeth- er a better picture of in- ternational terrorist net- works than the C.I.A. When Turkish gunman Mohammed Ali Agca shot the Pope, they say, the President found out more about Soviet and Bulgarian involvement from Reader's Digest than from U.S. intelligence. The C.I.A. can't know everything, but the Republican Party correctly declared in its 1980 election platform that "the United States requires a realistic assessment of the threats it faces" and "must have the best intelligence capa- bility in the world." The platform said, "Republicans pledge this for the United States." Three years into this Republican Administration, the United States certainly has a better intelligence capability than it did in 1980-it could hardly fail in that-but overall it is still far from the best in the world. Can William J. Casey make it so? Well,. he gets credit for trying-even from his adversaries-but there's reason to doubt that he can. S7A Approved. For Release 2005/11/28: CIA-RDP91-00901R0004 QWff- `"_ 3, ARTICLE APPEARED On PAGE A Approved For Release 2005/11.1 AI :A 91-00901R00040 28 November 1983 Last-Minute Bust in Hamburg A computer bound for the Soviet Union is seized T he timing was worthy of a first-rate Hollywood spy thriller. One day be- fore the Swedish container ship Elgaren was due to make a seven-hour stop in the port of Hamburg, U.S. officials informed their colleagues in West Germany that the ship was carrying Soviet-bound con- traband. Once the ship had docked, how- ever, a Hamburg judge turned down the formal request for a search warrant on grounds of insufficient evidence. As the deadline ticked closer, a three-member panel of the appeals court reviewed and finally reversed the earlier decision. Just seven minutes before the Elgaren was scheduled to lift anchor, anxious officials sped out to it in a launch and clambered aboard. They promptly ordered three 20- Technology smuggling has. more. over, become both efficient and. elabo- rate. The VAX-was bought by an uniden- tified firm in New York State and appar- ently shipped by air to South Africa. Then, authorities suspect, a West Ger- man named Richard Mueller arranged to have the computer transported via Swe. den to the Soviet Union. Mueller, who owns a fleet of shadowy companies with ever shifting names, has already been im- plicated in two major violations of U.S. export law. The proliferation of high-technology microelectronic equipment and of gam- bits for shipping it to the Communist hk has dramatized the problems facing the industrial democracies. Responsible for ft.-long containers to be hoisted by crane onto dry land. As the container ship head- ed toward Sweden several hours behind schedule, authorities opened the boxes. All their suspicions were confirmed: in- side was a roomful of U.S.-made comput- er equipment, including a giant VAX 11/782, a powerful computer that can be used, among other things, for guiding mis- siles and keeping track of troops. The So- viets lack the resources to build such equipment themselves. Manufactured by Digital Equipment Corp. of Maynard, Mass., and valued at more than $2.5 million, the VAX is the most precious cargo to be seized during the Reagan Administration's 25-month drive to block the illegal shipment of sophisti- cated machinery to the Soviet world. But it is not the first such catch. "Operation Exo- dus," a special task force involving 300 full-time customs agents, has confiscated more than 2,300 illegal shipments worth nearly $150 million since its launching in 1981. Still, the leaks seem to appear as fast as authorities can plug them. I,4 West Germany alone, according to CIA Di- rector William Casey. 150 firms and indi- viduals are involved in illegal shipment of ?ensitive eauipment to the East bloc. addressing these issues is COCOM, a kind of clearinghouse for strategic equipment. Every now and then, COCOM members. including the U.S., most of its European allies and Japan, agree upon a list of sen- sitive technology that cannot legally be shipped to Communist nations. The effort is, however, riddled with inconsistencies. Washington observes a much more extensive set of rules than its .allies, and within the U.S. the rules are the focus of heated dispute. The Defense Department, supported by the U.S. intel- ligence community, has long complained that COCOM's regulations are dangerously ' lax. The hard-liners, as they are called. note that even the most mundane com- puter equipment can often be turned to military purposes. and they are reluctant to do the Soviet military machine any ta- vors. In response, the State and Com- merce departments. backed by U.S. bUsl- nessmen, have contended that national security must not preclude U'S. participa- tion in lucrative global markets. Besides. the soft-liners argue, economic prosperity is a means to enhanced security. Both sides, however, applauded last week's bust, which clearly fell within the COCOM guidelines. I Approved For Release 2005/11/28 : CIA-RDP91-00901 R000400060002-9 STATl Approved For Release 2005/11/28: CIA-RDP91-00901R0 ARTICLE A PEAR NEW YORK TIMES ON PAGE.' . .28 November 1983 White House - Among the Staff, the Mood Is Testy By STEVEN R. WEISMAN Spedal to The New'yott Timm WASHINGTON, Nov. 27 - Presi- dent Reagan may be riding high in the opinion polls, but his staff at the White House continues to be plagued by bickering, second-guessing and a general restlessness among some of the key players. - This is the view of several senior members of Mr. Reagan's entourage in assessing a series of recent convul- sions within the Administration. Some top officials argued in inter- views that, with the departure .Iast ' month of William P. Clark as the na- tional security adviser, the atmos- phere had actually improved. Others disagreed. "There are too many unre-. solved issues for things to get better," said a senior Reagan adviser. Mr. Clark engaged in almost con- stant battles with James A. Baker 3d, the -chief of staff, and Michael K. Deaver, the deputy chief of staff, and many others, before leaving to be. come Interior Secretary. One of his last actions at the White House, however, has led to one of the most bitter bouts of recriminations. This was the criminal investigation he persuaded Mr. Reagan to author- ize to find the source of unauthorized disclosures to the news media about American military plans in Lebanon. n re nse. the Federal Bureau of jnyesti atlon has Con ti n an extraorcinarv in that has en- tail Interviews with r a er Secretary of State Geo a P. Shultz fence ecretar~ ' ci-S *rrr-M as -.~ er . w_r of Central Irate rgence an others. A View to the Contrary Despite the statements of Edwin Meese 3d, the White House counselor, that the investigation was justified, there is a widespread view to the con- trary among Mr. Clark's critics. Several officials, speaking anonjr- l mous y, said they simply could not accept the contention of Mr. Clark and Mr. Meese that news reports of American military retaliation in Lebanon were jeopardizing the safety and the mission of Robert C. McFar- lane, the special Middle East envoy. To these officials, moreover, ten- sions at the White House continue to flow from disparate recent events and from a general atmosphere of "white knuckles, if not sweaty hands," as a top adviser put it. Officials attribute that atmosphere ten under way, as well as the underly- "wimps" for not backing Mr. Rea- ing division in the Administration be- gan. Mr. Baker was said to have re- tween conservatives and moderates. sponded with. a flash of anger. A Given all this, it was inevitable that White House official said that per- fierce behind-the-scenes criticism sonal insults had become common would be leveled at David R. Gergen, among supporters of both men. the director of communications for his urging that a representative of the ? Mrs. Reagan's View Administration appear on ABC televi- According to several aides, the sion following "The Day After," the major aggravating factor within the recent. dramatization of _.a -nuclear staff arose in October, before the Gre- holocaust. nada invasion, when Mr. Baker tried After Vice President Bush turned to replace Mr. Clark as national se- down the honor, Secretary Shultz - curity adviser. and to install Mr. agreed to goon. Many in the Adminis.: Deaver as White House chief of staff. tration said they felt he did poorly, Richard G. Darman, a Presidential and that Mr. Gergen had "panicked y' assistant, was descibed by several But several more major events aides as a key backer of this move. have contributed to the testy atmos- Mr. Reagan's wife, Nancy, was also phere. These were said to be the inva said to have favored it. sion of Grenada in October, the clos- Several key aides said Mr. Reggas n ing days of the 1983 Congressional session went along until a counterattack w and, most of all, a bizarre epi-? mounted sode in October in which Mr. Baker re ry em NE. err-e Mr. ark. tried unsuccessfully to take over Mr. and J Bane J . Krr a the United Clark's post as national security ad- States representative at the Na _ viser. -United Gergen Departure Seen These officials are known to =Sent Whereas Larry Speakes, the White Mr? Baker for what they feel has been House spokesman, was said by many a tack of commitment to the Presi_ to be bitter because he had been left dents conservative goals. Mr in the dark about the invasion, Mr. e,v s antagonism has been fuel Gergen's frustration was said to have -In adartron, by is and Mr. B kar'c sprung from his -failure to get more ear, icting recollections r the information out after the invasion had rienn materials from Prec;APnr started. rter s e ect n Three senior staff members said urtd err way in t,e Regg the d i d ' y a m re W. Gergen S efforts, . Ca~mP. adding that they would not be cur- a'tr? Baker and Mr. Deaver have prised if he decided to leave the White House soon. - V* - His departure would follow that of another key player, Kenneth M. Duberstein, the White House Con. gressional liaison aide, who is leaving to become a vice president of a major lobbying firm. Several aides said that Mr. Duberstein's resignation was an- other discouraging sign, a symptom of the general feeling that -little is likely to be accomplished with. Con: gress next year. The last days of this year's Con. gressional session led to fighting be- tween Mr. Baker and Mr. Meese. Mr. Meese was a leader of the drive for tax credits for parents with children in private schools, and for the right of Mr. Reagan to make his own appoint- ments to the United States Civil Rights Commission. Both efforts failed. At one meeting, according to a White House aide, Mr. Meese called some of the Senate Republicans lighted with Mr. Reagan's choice of Mr. McFarlane as national security adviser. ' "Bud's a terrific team player," said a top official; referring to Mr. McFarlane. "There's just a big sigh of relief around here that Clark is gone." But several other officials asserted that the aborted bid showed that Mr. Baker, Mr. Deaver and Mr. Darman were restless and bored with their jobs. . . "Nobody is discussing it," a White House official said of the episode. ."It's like a dead body in the living room, and everybody is tip-toeing around it, pretending it's not there." Many White House officials say they think life will improve once Mr. Reagan's re-election campaign gets under way. "But we're in an unstable environment," said one adviser. "Things could get better, or they could get a lot worse." to a weariness that many feel after nearly three years on the job, r- batedbythefacttha.pFQ~gr Release 2005/11/28 : CIA-RDP91-00901 R000400060002-9 re-election campaign has not yet got- Approved For Release 2005/11/28: CIA-RDP91-00901R00 l~i?!f'~,,:I'~:~ WALL STREET JOURNAL .R?! f.,a - 28? November 1983 IEVIEW & OUTLOOK Je$$e for Pre$ident Jesse Jackson's presidential cam- paign has had the. press positively drooling. The Washington Post wrote of Mr. Jackson's "dramatic entry" into the race, a speech that "fired the imagination." Newsweek put him on its cover and called his speech "a rousing, revivalist. war cry." Mr. Jackson bad already made the cover of Time during his water-testing. When he announced his intentions dur- ing a segment of "60 Minutes," Mike Wallace & Co. traded in their boxing mitts for kid- gloves. There is, of course, one obvious reason for this attention, it truly is dramatic that in America today, the descendant of a black slave can run for president-and be taken with due seriousness. In this sense, Mr. Jack- son's candidacy is another sign of the black community moving into the po- litical mainstream. And this, as we noted recently in discussing the rise of black mayors, bodes well not only for blacks but for the society generally. Enthusiasm for Mr. Jackson, though, has been more pronounced in the media than among spokesmen for putative members of his 'rainbow,co- alition"-blacks, women, Indians, His- panics and homosexuals. Among black leaders, Coretta King publicly recommended against his candidacy. Julian Bond, Tom Bradley and Cole- man Young have endorsed Walter Mondale. No Jackson endorsement has come from Mayor Harold Wash- ington 'of Chicago, Mr. Jackson's hometown. -Indeed, a poll for the Chi- cago Sun-Times finds that in Illinois, Mr. Jackson would get 72%a of the black vote against.Ronald Reagan. This compares with 86% for John Glenn and 94% for Fritz Mondale. It -seems that a sizable voice in the black community is not eager to be represented by Mr. Jackson. No doubt some of this hesitation involves not wanting to waste a vote or influence on a hopeless candidacy. But it is also true that the hesitation shows up most among those most familiar with Mr. Jackson's record. Since 1971, Mr. Jackson has headed Operation PUSH (People United to Save Humanity). Even as we write, auditors are trying to decide what in the world .PUSH''has s done with the money it received from the federal .government. Mr. Jackson calls the au- dits a mere "accounting dispute." But Department of Education spokesmen say PUSH will have to return $880,000 to $2.1 million spent on things the gov- ernment never meant its grants to fi- nance. This is a whopper of an "ac- counting dispute." Over the years a number of parties have expressed unrequited curiosity about Mr. Jackson's finances. One, for example, was the St. Louis Sentinel, a black newspaper sued for libel by Mr. Jackson. PUSH is known for getting Coca-Cola, Schlitz, Seven-Up and other companies to agree to do more trading and hiring in the black com- munity. Shortly after a pact with An- heuser-Busch, the Sentinel quoted Mr. Jackson as telling a group of black businessmen that to get on his list for contracts, they would have to fork over $500: "If you want to play, you have to pay." When the Sentinel- called this a ? "`kickback approach," Mr. Jackson and PUSH sued. The liti- gation dragged on until a key ruling last month, when a federal district judge upheld the paper's request that he force PUSH to hand over its finan- cial records. The suit was quickly set- tled out of court. This was a replay of a 1977 law- suit in Chicago. Burson-Marsteller, a public relations firm, sued PUSH for more than $16,000 it said it was owed for services rendered. The suit lan- guished in court for more than two years. But in 1979, PUSH settled the debt within 48 hours after Judge Rob- ert Cherry -ordered PUSH to hand over its financial records, specifically including "all documents relating to the funding of Jesse Jackson's 1979: Middle East tour." That trip, including Mr. Jackson's public embrace,,,with Yasser Arafat, was perhaps Mr. Jackson's most con- troversial moment, along with other statements leaving a current of suspi. cion in the Jewish community. Rather than mend these fences after his pres- idential announcement, Mr. Jackson headed for Los Angeles to appear be- fore the American Arab Antidiscri- mination Committee. The public record lends reason to suppose that Mr. Jackson has t)laved off his Arab connections to raise money. Not long after his return in 1979, the Chicago papers carried the storv that he requested contributions from a group of Arab businessmen who came to see him at PUSH. The. stories said at least $10,000 was forth- ; oming. And in the Billvgate investi- gation of 1980. a released CIA mes- sage identified Mr. Jackson as a spe- cial_ Libyan oil brok r r Jackson denies being an agent of Libya but admits he wrote to the Libyan em- bassv on behalf of "a black-owned oil companv." Mr. Jackson's financial back- ground, then, justifies more than a lit- tle curiosity. And on the day he an- nounced his candidacy, he promised to open up the books, an event sched- uled for Nov. 15. The event has now been put off indefinitely "until our lawyers can look at the records and see the government audit," Mr. Jack- son's campaign says. The expected curiosity, it seems, has not devel- oped. Now, we do not know how Mr. Jackson will fare once the voting starts. He certainly can give a stirring speech.. And ethnic history shows that many times a voting bloc wants to make itself felt, regardless of the qualities of the particular candidate. CO \TTE*v ED Approved For Release 2005/11/28 : CIA-RDP91-00901 R000400060002-9 SAT Approved For Release 2005/11/28: CIA-RDP91-00901 R0 ,pTjm -c, CHICAGO TRIBUNE 27 November 1983 Stock holdings of William Casey, CIA director WASHINGTON-You really go off the deep end in the editorial "The compulsive Mr. Casey" [Nov. 171. In the normal course of managing my, portfolio over many years, my investment adviser seems to have acquired shares in. 13 companies doing business with the Central Intel- ligence Agency. Four of them had, sales to the CIA of less than $1,0000; to be precise, $12, $151, $479 and $968, respectively. Four others had CIA sales ranging from $2,517 to $12,477. The remaining five companies had sales ranging from $152,458 to' $3,995,774, and their CIA business was, an infinitesimal portion of their multi- billion-dollar total sales. The largest of these holdings represented five one-thousandths of 1 percent of the company's outstanding shares. Thus, your editorial is based on a de minimis of a de minimis. - Moreover, I was not in any way involved in nor did I have any knowl edge . of any of the business these companies did with the CIA or the decisions of my investment adviser to acquire shares in these companies. During my tenure as Director of ,Central Intelligence my holdings` have all been publicly disclosed and fully reported pursuant to the Ethics in Government Act. They have been ex-: amined in great detail by the. 'CIA designated agency ethics official and the Office of Government Ethics, and .have been found to reflect no conflict of interest of any kind or any other illegality or impropriety. When I established a blind trust some six weeks ago, the office of Government Ethics scrutinized every one of my holdings placed in the trust and determined that not a single one of them was a holding of an issuer. "having substantial activities related to [my] mary area of responsibili- ty," which priis the standard applied, by the Office .of Government Ethics-, William J. Casey Dl tor, U.S. Central Intelligence Avency Approved For Release 2005/11/28 : CIA-RDP91-00901 R000400060002-9 Approved For Release 200Vi4Fes'?T oq Casey's arrogance should be checked William J. Casey, director of the "CenbmL telligence Agency, is a very_ wealthy man and, like Midas, he wants more. Trouble is, greed is tolerated in a private. citiien but not in a public official. x Casey made public this `week the fact that lie had stock in 13 companies with CIA- contracts ranging in value from $12 to $3,995,774. It's nice Hof Casey to finally come clean on his stock dealings but it .would haveLieen better .if be had made the ,.disclosures before most of '"tie: 'information.:was uncovered by investigative newspaper reporters: Casey, of course, denies that he had any knowledge of the business these companies did with the CIA or the decisions of an investment adviser to acquire shares in the firms. Whether you believe him or not, all of this grubby issue of -self-interest could have been avoided-and should have. been. . Casey -caused problems when he was named to the CIA post.' He refused to put. his investments in a blind trust, the accepted practice for top government officials. Under extreme pressure' and reports of his owning stock in companies that. could benefit, from. inside luaowledge,' he ' agreed to set up a screening procedure for handling investments. The screening process consisted.of 13 top intelligence officials who who were supposed 'to -imake . sure Casey didn't make decisions that. would have'. a substantial effect on the firms in which he owned stock. Not that the public should be .paying 13 executives .to screen Casey and his stock, but that's h t e way it was set up, The screening method's obvious `flaws brought more outcry and Casey finally placed his assets in a blind trust last month. - In 'the meantime, documents uncovered" 'by reporters showed Casey owned stock-,in companies doing business with the CIA when he took office. Not surprisingly, he bought.more of those stocks after he took office. What's most puzzling in all this is that the White House has. kept hands off. Casey finally has gotten around to doing what the Reagan Administration should have required in the first place, a blind trust program., ' Casey's arrogance won't be forgotten. If - any more 'revelations of -self-interest surface, President Reagan would do \well to get rid of the problem by firing Casey. Approved For Release 2005/11/28 : CIA-RDP91-00901 R000400060002-9 l5 26 November 1983 g u ? ? LVVL?JV LLLL a _ ~a'-a/ fem. `1111 25 November 1983 1chief still doesn't get the point -Casey defense of stock dealings ignores potential conflict of interest, A letter by Central Intelligence Ag ency_chief i iam Casey in e `WaSnI ton Post the other day sought to, defend the indefensible: his contin- ued investing in companies that do business with his agency. Ever since he became the nation's top spook, Mr. Casey's zest for playing what has become Wall Street's raging bull -market has collided with the sensitive nature of his job. After all, he has been in an ideal position to benefit from all sorts of information that virtually all other investors will learn only later, if at all. True, after congressional threats to force him into it, Mr. Casey belatedly agreed this summer to put his invest- ments in a blind trust. Until then, he had claimed that an internal screening procedure - a couple-of subordinates alerting him to possible conflicts of interest in specfic actions - was all that was necessary. This procedure gave the director what responsible citizens should have considered an irresponsible choice: sell off the offending stock or refrain from making a decision in a particular case. Stock once was sold, but the thought of a CIA director putting his portfolio before the security interests of the United States is truly a disturbing and angering one. Now, in his letter responding to re- activities to companies that have abso- t di l th d d P cen osures ma er sc e un tely nothing to do with the CIA. That AS says att e last time a ne wh at his may rule' out some blue-chippers, but s then stock holdings were 7- in late,1982 - chances are there are some well- 13 companies with qualified people out there who would he owned shares in CIA contracts worth from a mere $12 to be happy to take over for the director nearly $4 million.-, And;-he adds, the under just such restrictions: Office of Government Ethics deter- When it comes to investing, Mr. mined that none':was in a company Casey would do better to put a little "having substantial activities related to more stock in his country. (my) primary area of responsibility." Times Editorial Furthermore, he contends that even`, the nearly $4-million contract that one, unnamed company has is such a slivver' of its overall business as to pose no' problem at all. But Mr. Casey simply refuses to get the point. If he were really concerned about conflicts of interest - and the damaging effect they can have on pub- lic trust in government - the wealthy, sometime bureacrat would restrict his Approved 'For Release 2005/11/28 : CIA-RDP91-00901 R000400060002-9 Approved For Release 2005/11/28: CIA-RDP91-00 ARTICLE APPEARED LOS ANGELES TD MS .ON PAGE- 1,4* 25 November 1983 George Washington Called 'M'aster of Psychologica a are -Spy Experts Launch Drive for Museum. .to Unveil History of Espionage By TIM GOLDEN, Times Staff Writer he hmight have aiiiled, contains far as the Cold Wi r Beyond those WASHfl GTON-George Wash- Agton, a man renowned for his 'honesty but trained in the British miht,ary tradition of deception, used 'an-?.elaborate network. of spies to '-keep the Red Coats off-guard during "' the Revolutionary'War.? '`,On several occasions, the revered r:cbmmander concocted false rumors mud' had them planted "from yChaileston to New .York so that the =British .. . would swallow 'it hook; 4ine`and sinker,'. Walter Pforzhei- met, a retired legislative counsel for -.11 Central 'Intelligence `Agency, 'He was a master of psychologi- cal warfare," Pforzheimer, a fervent collector of intelligence documents and memorabilia, added. ' The point, made with scores of ,such stories. is that intel.ligence has always been an integral part of American history-handed down, . with many other legitimate pursuits . of government, from the Founding Fathers. Took Case to Congress ig y classified information -secrecy-cloaked, 30 or so years, the d eemed unsuitable for public view- men promoting the project see a ing. fascinating, often noble history. Unheralded Deeds Some of the great personalities of intelligence past: - Despite such restrictions.. -.Casey -Thomas ' Jefferson b tt e er , and other supporters of a museum' known for other achievements. say it would fill-'a -void in the S Sometime before he became Presi- capital's vast but incomplete histor- dent in 1801, Jefferson diagrammed ! ical treasures. It would, 3hey- say, a "wheel, cypher," a simple but commemorate largely'-unheralded ingenious coding device. Jefferson deeds of valor by espionage agents, filed _ and apparently forgot the throughout American= history. In invention, but in 1922 the Army., addition, it would help improve the ''reinvented" it independently as public's perception, of intelligence the M94,~ a; version of which was . services,_tbrnisbed by the abuses used by the Navy until the 1950s. disclosed in the wake of ttieWater- 1 -Rose ONeal Greenhow, an in- gate scandal of the Richarii M. ! timate of President James Buchan- Nixon Administration, the.support- an, Cabinet members and senators, ers add an inveterate spy for the Confeder- Such a museum, its backers say, ate Army during the Civil War. Put would inspire bright young men and under house arrest with other pro- women to join the CIA, the National secession women accused of espio- Security Agency and the :Defense nage, she continued to send Intelligence Agency. Southern Gen. Pierre Gustave "Think of the impact on kids, who Beauregard information on troop are so fond of gadgetry and the movements until she was finally kinds of exhibits that might be thrown into Washington's central ,mounted," said _Pforzheimer, who prison. has willed his 5,000-document col- Onetime Boston Red S --ox "To me," Pforzheimer said, "the lection to Yale University, his alma catcher Mo Berg, who mastered half "American Revolution was a.dandy mater. He said he and others might a dozen languages and became a 'Intelligence war. lend personal holdings to rotating 1 trusted aide to the William J. (Wild ambits t t ] P forzheimer other veterans of , -intelligence and military service and a handful of intelligence ?histo- .rians want to create a National Historical Intelligence Museum in .Washington. Earlier this month, they took their case to Congress. The country's spy master, Wil- liam- J. Casey, director of central intelligence, endorsed the project as "highly important." But, he said at a Senate -Intelligence Committee hearing, "I would not want to .mislead anyone into expecting u!~ to be a major source of exhibits. - "What the CIA can contribute,"- Casey said, "will almost certainly be quite limited. We do not have many objects or artifacts that could 'be exhibited in a museum. We mainly produce paper." Much of ,the paper, a na a ion museum. Billl Donovan at . the_ Office of. 'A Senate resolution, sponsored by l Intelligence Committee Chairman. Barry Goldwater (R-Ariz.); calls for the "collection, preservation and exhibition" of intelligence artifacts in a museum. Although some sup- porters, Pforzheimer included, en- vision a great public ' attraction based chiefly on remnants of histor- ic espionage, others emphasize complementary exhibits highlight- ing tales of spying. Behind the concept of the muse- um seems to he a feeling that the shadow hanging over intelligence activities in the minds of many Americans stretches back only as STA Approved For Release 2005/11/28 : CIA-RDP91-00901 R000400060002-9 STA Approved For Release 2005/11/28 ARTICLE AF FARM ON PAGE A- / WASHINGTON POST 25 November 1983 U.S.-Backed Rebels Caiynjerejat N icaraguan Regime, CIA Finds By Patrick E. Tyler W tshington PostStatt Writer The CIA has concluded that there are no circumstances under which a force of U.S.- backed rebels can achieve a military or polit- ical-victory over the leftist Sandinista govern- ment of Nicaragua, according to congressional sources. In addition,.there are indications that the administration, despite its tough public pos- tore, is beginning to give some thought to how the war could be wound down and how an am- nesty for the American-supported forces could be arranged. In a National Intelligence Estimate provided to the congressional oversight committees this fall coinciding with crucial votes to continue funding to the rebel force:, the CIA said the U.S.-hacked "contra" forces made up of 10,000 to 12,000 guerrillas lack the military capability, financing, training and political support to overthrow the powerful and well-entrenched Sandinista government with its relatively large and well-equipped standing army of 25,000 soldiery, and even larger militia forces. The CIA analysis, according to these sources, concludes that the Sandinista leader- ship is controlled by hard-line Marxists who will not give up in any kind of military con- frontation with the contras. In addition, the CIA has concluded that the U.S.-backed counterrevolutionary forces have not been able to win enough support in the Nicaraguan population to overthrow the Sandinistas, who seized power four years ago after ousting Gen. Anastasio Somoza. Administration officials said on previous occasions that they did not think the U.S.- With the new CIA analysis, Reagan has sure on me oanaWmSLas unLU Lney stop sup- also stated for the first time that he wants a porting leftist guerrillas fighting the govern- general amnesty for U.S.-backed rebels who ment of neighboring EI Salvador. have been fighting the Sandinista govern The CIA has concluded that paramilitary ment as part of the CIA-directed force. Rea- harassment from the U.S.-backed contras, h gan included the amnesty provision in a se- cret document justifying the covert action to Congress. The amnesty provision would-be a precondition to a cessation of hostilities, sources said. .. The document, a presidential "finding". under the National Security Act, was presented to the congressional committees in September by Secretary of State George P. Shultz and CIA Director William J. Casey. The amnesty provision is not spelled out in any detail in the finding, and a number of questions have been raised in the congres- sional committees as to how it would be ap- plied and enforced. It is not clear whether exiles who are fighting the Sandinistas would be allowed to return to their homes in Nic- aragua or win back property seized by the government. But the most recent discussions between the administration and Congress have cre- w o have been operating from bases in Hon- , duras since early 1982, has caused the San- dinista government to reconsider its support for the Salvadoranguerrillas and may even- tually persuade the Sandinistas to abandon the Salvadoran leftists altogether. According to one congressional source, who spoke on the condition he not be identified, there is'a bipartisan consensus, especially in the Sen- ate, that the coven policy of the Reagan ad- .ministration for the first time is consistent with publicly stated policy goals of the U.S. government and the governments of the Central American region. Under this view, many members of the congressional oversight committees report-' edly have become convinced that the admin- 'istration is willing to end its secret war against Nicaragua as soon as the Sandinistas give concrete and verifiable assurances that they will no longer give aid, command and control and to ' t' rs I g r ca ated the impression that the administration support to the Saiva- doran. guerrilla movement. is giving careful thought to how to end the 2-year-old secret war against Nicaragua. The Doubt remains, however, among members who were surprised by an administration amnesty provision addresses an issue that effort during the summer to redraft a pres. has been unresolved in two years of private idential justification for the covert operation consultations between. the administration . in terms that some members believed would and congressmen fearful that Reagan and have committed the U.&-backed forces to an the CIA were slowly committing the United all-out victory over the Sandinista govern. States :to thousands of Nicaraguan exiles - - whose fate would be uncertain if a negoti- ment. if it. was not willing to make siibstan- , tarn eattlamant. of raoinnal tQnainnc were tial political and diplomatic concessions. reached in Central America. backed force was strong enough to overthrow Last spring, Casey warned in private of a administration said the secret war was nec- the Nicaraguan government, but the rapid potential "bloodbath" if Congress withdrew essary to stop the spread of revolution from growth of the rebel army from its original' sutmort from the U.S.-backed rebel_forces_ Nicaragua to other countries. It also stated a 500-man level authorized by Congress and the loosely defined administration goals left many members of Congress uncertain as to President Reagan's true intentions in Nic- aragua. operation twice this year, but in a compro- erations until Nicaragua returned to a dem- mice with the Senate, legislators ended the ocratic form of government, reduced its level session by approving $24 million to fund the of armament and guaranteed press and re- covert paramilitary operations at least until ligious freedoms. Many members considered June under a mandate to keep military pres- the latter demands as diplomatic goals, not suitable for inclusion in the secret justifica. tion as preconditions to cease hostilities. Approved For Release 2005/11/28 : CIA-RDP91-00901R0004000601J -9~- ,A.R ICE AP RID ON PAGE 10. ?lW C ved For Release A19A T P91-00901R00040006009 ver 19 ESSAY L is Own Petard By William Safre WASHINGTON, Nov. 23 - The ber a confession at the heart-stopping Frankenstein's monster of the Rea- sight of a lie detector. "The Ship of gan Administration - an obsession State," Walt Rostow is supposed to with secrecy that has unleashed the have said, "is the only vessel that so-called lie detector on 112,000 for- leaks from the top." merly trusted officials - is now ris- Here is an Administration that has ing to maul its creators. enshrined the lie detector, which is a In his infamous National Security device to 'measure nervousness, not Decision Directive 84, Mr. Reagan di- truth, and is regarded with such sus- rected the F.B.I. to drop its require- picioa by scientists that its results are ment that leak-hunts be related to not admissible as evidence in the Fed- criminal prosecution, thereby plat eral courts. Here are two of the na. Ing F.B.I. agents at the beck and call tion's highest, officials, each con- of bureaucrats wanting to terrorize vinced that the other is a liar. Here is subordinates without court re- the President, who has removed the straints. He has forced Government F.B.I.'s previous requirement that workers to give up their rights to criminal prosecution be the goal of, refuse to be hooked up to a fearsome any leak investigation, saying "Find and often inaccurate machine; "ad- the leaker!" verse consequences will follow an What would you do if you were Wil- employee's refusal to cooperate with ham Webster, Director of:the F.B.I.? a polygraph examination...." If you were a weak lawman, eager to To the President's men, such cater- _ please the President, you would "flut- ing to the boss's predilection for poly- ter" every suspect in both investiga. graphs must have seemed like a great tions and publicly pillory the first per idea. Now some of them rue the un- son to break into a sweat. On the other foreseen consequences: hand, if you remembered the de- In the Briefingate investigation, the moralized state of the F.B.L. when F.B.I. has expended over 4,000 man- * you took it over,.you would refuse to, days to find out who obtained. Jimmy be stampeded into abusing investiga- Carter's debate briefing book for Mr. tive techniques that could ruin repu Reagan. Friends of White House chief tations without establishing guilt. of staff James Baker said that their The so-called lie detector is a civil- 1 man was willing to take a lie-detector liberties abomination; NSDD 84 is a i test but charged that C.I.A. Director disgrace to conservative principle; William Casey, whom Mr. Baker ac- its author, Deputy Assistant Attorney cused of obtaining the book, was duck- General Richard Willard; is one of ing. Under pressure of this challenge those earnest, clean-cut young fel-, (lie detectors at 100 paces) Director . lows in the grand tradition of Tom Casey allowed as how a polygraph Charles Huston, who in revering se- about a three-year.old event would be curity subverts the Constitution. "demeaning" but he would take it. Poetic justice abounds in the notion Ina second episode, the tables were of the President's men being the first to turned. On Aug. 30, President Reagan suffer from the President's obsession. issued another jeremiad against That same petard is hoisting former leaks; not two weeks later, after he C.I.A. chief Stansfield Turner, perpe- decided in the National Security trator of its Publication Review Board, Council to shell Moslem militiamen who is now having fits clearing his own in Lebanon, that "secret" decision book,. "Revolution in Spying," with was not leaked but disseminated by a C.I.A. censors emboldened by NSDD wide variety of Administration 84: they will not even let him confirm' sources to all three television net- revelations already made by Presi- works as well as major newspapers., dents Carter and Reagan. Oddly furious, the President ordered Mr. Reagan should stop this lie-de. an all-faucets plumbing operation. tector mania before he requires him- This time it was Mr: Casey who self to attach a box with Its jumping came forward with his arm out, needle to his own arm during press volunteering-for the flutter-box test. conferences.- If.he does not.p ust his And this time, according to the Casey closest associates, he should confront camp, it was Mr. Baker who showed them or fire them, and not let his sus- great reluctance to be subjected to picion send a ,,chill through tens of the procedure he did not find repug- thousands of public servants with se nant when it was directed at 111,999 curity clearances. untrustworthy colleagues. He cannot set a double standard for In severity, a three-network leak is security, exempting high-level sus- equivalent to an Australian three-dog pects and fluttering civil-service secre- night. The dissemination was top- taries; rather than forcing Mr. Baker . level, and not from an N.S.C. secre- to take a test that too often brands tary cleared for Sensitive Compart- truth-tellers as liars, he should scrap Apprd 9 ~' V ~$-: ClrAef ~le?6 E)00400060002-9 Approved For Release 2005/11/28: CIA-RDP91-00901R0004 1'VA 1i1NlilUN '11fIES 24 November 1983 for trial Self-styled I jurist judgedable BY A WASHINGTON TIMES STAFF WRITER A District man who tried to make a citizen's arrest of a local judge and has issued subpoenas for several high- ranking government officials, yester- day was found mentally competent to stand trial on charges of simple assault' and disruption of Congress. Mr. Harry Zain, 30, is charged with disruption of :Congress for an incident in April. Prosecutors claim he walked in r on a Congressional meeting and! attempted to arrest Adm. Stansfieli' Tbrner. A trial on the charge is_-', scheduled for Jan. 31. In the past, Mr. Zain has attempted to issue arrest warrants for presidential advisers Edwin Meese and Michael Deaver Earlier this year Mr. Zain was con- victed of unlawful entry when he entered a closed Armed Services Com mittee hearing and refused' to leave when ordered to do so. Mr. Zain previously had argued that he attended what he believed was an open hearing in an attempt to deliver letters to eight senators informing them of allegations of illegal conduct involv- ing the CIA. In an attempt to prove his case, Mr. Zain, who serves - as his own lawyer, issued subpoenas for CIA Director William Casey, presidential Deputy "Press Secretary Larry Speakes and Navy Sec- retary John Lehman. After an appeal from a congressional staff attorney, D.C. Superior Court Judge Byron- Sorrell quashed the subpoenas. Two months ago, Mr. Zain, who cur- rently is being held in the D.C. jail, attempted to arrest Judge Sorrell while he was sitting on the bench. Mr. Zain, who claimed Judge Sorrell was part of a CIA plot, was restrained and eventually tackled by marshals attempting to prevent him from reaching the judge. Since the September incident, Mr. Zain's case has been transfered to Judge . Henry Kennedy. "I believe there is a very thin line-4 between a person who is set in his ways ... and one who has a severe impair-, ment of judgment;' Judge Kennedy,; said yesterday. "I don't think that thin line has been crossed here." Judge Kennedy also said Mr. Zain, who despite his expressed reluctance,, has been under medication, has behaved well at recent hearings. - David Sellers Approved For Release 2005/11/28 : CIA-RDP91-00901 R000400060002-9 SAT Approved For Release 2005/11/28: CIA-RDP91-00901R00 ARTICLE AEFELR ON PAGE WASHINGTON POST 24 November 1983 MIcFarlane's Safety Cited in Leaks In uir' By David Hoffman ' Washhigwn Post Staff Writer r SANTA . BARBARA, Calif., Nov. 33--White House counselor Edwin Meese III said today that President Reagan had ordered 'a Justice De- partment investigation into news leaks from top administration offi- cials out of concern that they had jeopardized the personal safety and diplomatic efforts of Robert C. McFarlane, the former Middle East special envoy. Meese, confirming an account of the investigation published by The Washington Post today, told report- ers that Reagan was "sufficiently concerned" about McFarlane to order the Justice Department to find out who leaked information about Reagan's decision over the weekend of Sept. 10-11 to authorize air strikes to protect. U.S. Marines in Lebanon. The FBI has questioned senior White House staff members, Cabinet officers and top foreign policy advis- ers in the continuing, 9-week-old in-' vestigation. Some of these officials also volunteered to take polygraph tests to prove that they were, not the source of the leaks, according to ad- ministration sources. - One of them. CIA Director Wil- i Liam J. Case, took a polygraph test, the sources said. He submitted to questions about the leaks {end about other national security matters, ac- cording to the sources. They added that Casey had strongly backed William P. Clark, then Reagan's national security of-. fairs adviser, in urging the president to order the investigation. One of. ficial said Casey, who has declined to comment on the investigation, may have been motivated in part his rivalry with White House chief of staff James A. Baker III. Baker was the only senior Reagan aide to oppose language in the pres- ident's letter authorizing the inves- tigation that would have urged use of lie detector tests. Reagan accepted Baker's proposal to delete the ref- erence from a letter Clark prepared for the president to send to Attorney General William French Smith. White House officials 'who stayed behind in Washington while Reagan came to California for the Thanks- giving holiday said there appeared to be an effort to calm concern among staff members that the inquiry would lead to more investigations and widespread use of polygraph tests. "We're trying to concentrate on a very specific and very sensitive sit- uation rather than trying to create a climate of fear at the White House," one official said. Meese, the only top, Reagan aide not interviewed by the FBI- in the in Quirt', spoke about the investigation. to reporters. accompanying Reagan on the flight' to California. "The .president was concerned that it ap-. peared that a criminal law had been violated and so he made the request for an investigation," Meese said. "I think the concerns at the time -were that- the articles and .the infor- oration that appeared -in the articles did add to.the jeopardy that Bud McFarlane, the Middle East ambas sador, might be; in,",he said. "The in formation in the:art_icies led the pub- lic to ' believe that Bud himself had made recommendations relating to particular military actions and this would make him a more prominent target while he was going from coun- try to country. "it was a combination concern," Meese added. One, that there might. be personal retaliation against him, and second that it would jeopardize his mission." Asked whether the investigation has produced results, Meese smiled !, and said, "Nothing that's been made Reagan, who was briefly ques- tioned about it as he left the White House early this morning, told re- porters, "I don't comment on any se- curity violations or any investigation of the same." White House officials interviewed by the FBI were told that the inves- tigation itself is classified informa- tion and were cautioned not to talk about it. Staff writer Lou Cannon contrib- uted to this report. Approved For Release 2005/11/28 : CIA-RDP91-00901 R000400060002-9 e% -r_ if Approved For Release 2005/11/28 CIA-RDP91-00901R00 00060002-9 ARTICLE APPEARED NEW YORK TIMES ON PAGE, . 2A November 1983 whether there was any truth to the sug- ( continue ana that it might be suppie- .gestion that telephone taps had been j mented by air strikes. 2-Month Inquiry by F.B.I. Fails to Find By STEVEN R.WEISMAN 'Source of Disclosures WASHINGTON, -Nov. 23 - A two- month-old investigation ordered by President Reagan has failed to deter- mine who disclosed information about United States military options in Leba- non, Administration officials said today. Several officials said further that they doubted the Federal Bureau of In- vestigation would succeed in uncover- ing the sources of the information given to :news organizations in September. But they said the inquiry would at least have the effect of warning people in the Administration against giving out clas- sified material. According to the officials, the investi- gation was the most widespread at- tempt by President Reagan to clamp down on unauthorized "leaks" to the news media. They said it had entailed interviews by F.B.I. agents with Secretary State George P. Shultz; Defense Secreoe, - tary Caspar W. Weinberger; William, ' 3. Casey, Director of Central Intelli- Bence; James A. Baker 3d, the White House chief of staff, and others. An Administration official, remark- ing that it was extraordinary for the F.B.I. to interview such senior offi- cials, emphasized that the investiga- tion was criminal, not civil, in nature and therefore all the more explosive. He would not discuss what criminal violations might have taken place. By several accounts, the investiga- tion has raised tensions and suspicions at the White House and created enor- mous controversy over its advisability. Several Administration officials, ask- ing not to be identified, deplored it. One official said it was "entirely pos- sible" that wiretaps had been author- ized for both Administration aides and news reporters. Administration officials said Mr. Reagan had authorized the investiga- tion in a letter to Attorney General Wil- liam French Smith. The letter was de- scribed by officials as ambiguous with regard to the means the F.B.I. could use in its inquiry. It could not be determined today whether the bureau had tried to use polygraph, or lie-detector tests, or authorized. Danger to McFarlane Edwin Meese 3d, the White House counselor, told reporters today that the investigation began because of Mr. Reagan's concern that disclosures about American military actions en- dangered the safety and mission of Robert C. McFarlane, who in Septem- ber was the special Middle East envoy. Mr. McFarlane has since become Mr. Reagan's national security adviser. . Administration officials said that William P. Clark, then the national se- curity adviser, instigated the investi. gation after news reports that Mr. McFarlane had urged American mili- tary retaliation against antigovern- meat forces in Lebanon. Mr. Meese, the only official who agreed to be quoted by name in discuss- ing the investigation, said the fear was that the articles would "add to the jeop- ardy" that Mr. McFarlane felt in his di- plomacy involving constant travel to San Luis Obispo and not available for Syria. Lebanon, Israel and other places comment, according to his Interior De- in the Middle East. partment office. "The President was concerned that there appeared that a criminal law hptd been violated, and. so he made the re- quest for an investigation," Mr. Meese told reporters in Santa Barbara, Calif., where he was staying with Mr. Reagan for the Thanksgiving holiday. An unusual aspect of the investiga- tion appeared to be that it centered, not on accounts of the military plans them- selves in Lebanon, but on the report that Mr. McFarlane had recommended militaryaction. According to Administration offi- cials today, these particular reports did not alarm Mr. Clark or others. Rather, they were said to be alarmed by some reports at the time, including one in The Washington Post and on some television broadcasts, that Mr. McFarlane had urged this course of ac tion. . An Administration official said there was widespread skepticism in the Ad- ministration of Mr. Clark's argument that Mr. McFarlane's life might have been in danger because of these news reports. Another official said Mr. Clark suspected that Mr. Baker, "or someone associated with him," had given out the information. - Clark 'Overreacted' Still another official said that Mr. Clark had "overreacted" and created' needless internal suspicions. Mr. Clark, who was sworn in this week as Interior Secretary, was at his ranch in A White House official described the investigation as "a typical shot across i the bow" by Mr. Clark, who had a long history of disputes with colleagues at the White House over unauthorized dis- closures of information and other mat- ters. Another official said Mr. Clark had found an ally in Mr. Meese in get- ting Mr. Reagan to approve the probe. The official said Mr. Clark himself had submitted to an F.S.I. interview. Unauthorized disclosures would be prosecuted as violations of the Espio- nage Act or as theft of Government The articles in question were said property' according to an Administra- today to have followed a National Se-, tion repot last year. curity . Council meeting Sept. 12, sev- eral days after United States warships began shelling the hills southeast of Beirut. From those hills, Druse militia- men had been firing on the area where American Marines were based. Throughout this period, American of- ficials warned-that the United States would take actions to defend the Ma- rines. At the time, Administration offi- cials seemed to be wanting to get the word out that the naval shelling might Security Council Accounts ' Approved For Release 2005/11/28 : CIA-RDP91-00901 R000400060002-9 Approved For Release 2005/11/28 : CIA-RDP91-00901R0004000600 DAVENPORT QUAD CITY TIMES (IA) 23 November 1983 F L515- UG~ Drop in Casey's stock CLAA Director William Casey, w~io`1ly established a blind trust last month to handle his stock, can't easily dismiss revelations from a Freedom of Information Act -lawsuit about his market ac- tivities. They confirmed long- ?held suspicions that Casey held stock in companies -hav-, ing both classified and un- classified contracts with his`. Unlike his predecessors, Casey, who was President ' Rea=II gar's 1980 national campaign director, didn't put his stock in a, blind trust when he took over the CIA in January 1981. This' hardly was a tenable position for someone privy to sensitive and secret CIA reports which could give him an advantage in , the market. Despite pressures to separate Casey from private invest- ments while he performed public service, he balked for a time and then consented to some ridiculous arrangement by which his subordinates were supposed to monitor his stock dealings. Since few could see them waving Casey off a lucrative stock killing, pressures resumed and, after much procrastination, a blind trust finally came about. But Casey can't easily repair the damage to himself and the administration for delaying the blind trust so long. Now 'it is known that indeed be held stock With companies doing busi- ness with his agency'- 13 of them with .contracts ranging from $12 to $3,995,774. In defense, Casey said he "was not in any way involved in, nor did I have any knowledge of, any of the business these companies -did with the CIA or the decisions of my investment adviser to acquire shares in these campanies." Of the five- companies with the highest contracts with the CIA, Casey said their business was "an inf nitesimal.portion'of their mul- tibillion-dollar total sales." Casey can't expect his assurances, to be well received. Not after ignoring this ethical conflict for so long, trying to pla- cate pressures with a toothless watchdog, undergoing inquir- ies by Senate and House intelligence committees, tardily imp- lementing a blind trust and finally being tied to stock transac- tions that involve contracts with his government agency. Casey owed more than he delivered to the people he is ser- ving. Appearances clearly should have counted here, what- ever Casey's stock gambling compulsions. He has left a last- = ing impression of a public servant serving himself first. Approved For Release 2005/11/28 : CIA-RDP91-00901 R00040006000.2-9 ARTICLE ON PAGE Approved For Release 2005/11/28 : CIA-RDP91-00901R0004000 Letters NEW YORK TIMES . 23 November 1983 46 Churchill's Debt to Nazi Sloganeers To the Editor: An Oct. 30 Associated Press article about an address at Westminster Col- lege in Fulton; Mo., by William J. asey,..Director of Central Intelli- geoce, stated: "It was_ at Westmin- ster College in Fulton that Winston Churchill delivered his now famous speech in which he coined the phrase 'Iron Curtain' in reference to the Communist bloc countries of Eastern Europe, and Mr. Casey referred to that speech today." Churchill did not coin the phrase; he exploited it. Just before the close of World War II in Europe, the German Foreign Minis- ter, Count Lutz Schwerin von Krosigk, made a speech (reported in The Times of London on May 3, 1945) in which he used the Nazi propaganda phrase "Iron Curtain" in the context used later by Churchill. On May 12, just three days after the German surren- der came into force, Churchill wrote to Truman (who had become President one month earlier) to express his con- cern about the future of Europe and to say that an "Iron Curtain" had come down to conceal everything that was going on within the Russian sphere of eastern Europe. Nearly a year later, March 4 and 5, 1946, Truman and Churchill traveled on the President's special train to Missouri, where Churchill delivered those historic lines: "From Stettin In the Baltic to Trieste in the Adriatic, an iron curtain has descended across the Continent. Former O.S.S. member Casey might well recall that by working closely with Nazis and Nazi sympa. thizers before the surrender of Ger- many, the O.S.S., and particularly its agents Frank Wisner and Allen Dulles, nurtured the idea that the time had come to split the Western al- liance with the Soviet Union. It was this covert policy that encouraged the Nazis to put forth the "Iron Curtain" theme to save their own necks and to stir up resentment against. the Rus- sians. L. FLETCHER PROUTY Alexandria, Va., Nov. 2,1983 Approved For Release 2005/11/28 : CIA-RDP91-00901 R000400060002-9 STAT Approved For ReleasejMM 1# S2C',lPNtLMMR0 23 November 1983 WASHINGTON LEAKS President Reagan ordered a Justice Department investigation in September to determine who leaked information to reporters that might have sparked ''personal retaliation'' against his Middle East envoy, an aide said Wednesday. Presidential counselor Edwin Meese, speaking aboard Air Force One as the president flew to his California ranch, said there were fears that the leaks might jeopardize the mission -- or the life -- of Robert McFarlane, who was serving Reagan's peace envoy at the time. Meese said the investigation was ordered after network television and newspaper stories reported McFarlane, now Reagan's national security adviser, had recommended U.S. air strikes against Syrian positions in Lebanon to protect U.S. Marines stationed in Beirut. Those stories were based on National Security Council meetings Sept. 10-11 in which Reagan and senior officials discussed the progress of negotiations in Lebanon and steps that could be taken to protect U.S. Marines there. ''The president felt sufficiently concerned about it (the leaks) to request the investigation, '' Meese said. ''The president was concerned that it appeared a criminal law had been violated, so he ordered an investigation,'' he told reporters after the presidential jet arrived in California. William Clark, who was Reagan's national security adviser at the time and was described in one report as ' 'damn angry' about the leaks, also accompanied the president to California, but refused to discuss the investigation with reporters. Meese said the White House was concerned ''there might be personal retaliation'' against McFarlane for suggesting such an option. Additionally, administration officials were worried that the disclosure ''might jeopardize his mission, '' Meese said. He indicated Reagan has not yet learned the source of the leaks. The Post, quoting administration officials, reported Wednesday that as part of the probe the FBI questioned senior officials in the White House, the NSC, .the Defense Department and the CIA -- including everyone who attended the Sept. 11 NSC meeting. The Post said those interviewed by the FBI include Clark, White House chief of staff James Baker, Defense Secretary Caspar Weinberger, Secretary of State George Shultz and CIA Director William Casey. Others questioned by the FBI included presidential assistant Richard Darman, White House communications director David Gergen.and Speakes, but they were not considered prime targets of the investigation because they did not attend the NSC meeting, the Post said. Meese would not comment on who has been questioned during the course of the' investigation. Approved For Release 2005/11/28 : CIA-RDP91-00901 R000400060002-9 STAT ApprQved For Release 2005kIW:ARb-MI-0 23 November 1983 ABOARD AIR FORCE ONE LEAK PROBE BY MAUREEN SANTINI President Reagan ordered an investigation two months ago into the disclosure of secret recommendations about U.S. military and diplomatic strategy in Lebanon, a top White House official confirmed today. Presidential counselor Edwin Meese said Reagan called for a probe in September after television networks broadcast stories saying that Robert C. McFarlane had recommended U.S. air strikes against Syrian positions in Lebanon to protect the I.S. Marines stationed in Beirut. "The president felt sufficiently concerned about it to request the investigation," Meese told reporters aboard Air Force One as the president flew to California for the Thanksgiving holiday. McFarlane, now the president's national security adviser, was Reagan's Mideast adviser at the time. Meese said the White Hoqse was concerned that "there might be personal retaliation" against McFarlane for suggesting such options. Additionally, administration officials were worried that the disclosure "might jeopardize his ` mission," Meese said. . Meanwhile, a government source said in Washington that the FBI 'ad questioned White House foreign policy officials about the disclosure. Meese said there is a standing policy to use lie detector tests in such investigations, if required. And he indicated tha Reagan had not yet learned the source of the leaks. .According to another source in Washington, McFarlane had made the military recommendations and complained that their subsequent public disclosure endangered his life. He was in the Middle East at the time. Details of the secret investigation were tightly. held and even the fact that .it was taking place wag considered classified. Several senior White House officials refused to discuss the investigation at all Tuesday, and sources who said anything about it spoke on the condition that they not be further identified. At the Justice Department, spokesman Tom DeCair said, "We don't comment on investigations." Asked to comment on the report as he was leaving the White House to spend the Thanksgiving holiday in California, Reagan said, "I don't comment on any security violations or any investigation of the same." The Washington Post, in today's editions, said senior administration officials interviewed by the FBI included former national security adviser and now Interior Secretary William P. Clark, Whie House Chief of Staff James A. Baker III, Defense Secretary Caspar W. Weinberger, Secretary of State George P. Shultz and CIA Director William J. Casey. Approved For Release 2005/11/28 : CIA-RDP91-00901 R000400060002-9 STAT Approved For Release 2005/11/28: CIA-RDP91-00 ARTICLE AP ON EAQE By Don Oberdorfer Washington Post.Staft Writer WASHINGTON POST 23 November 1983 applying Pressure in central America President Reagan, who made Cen- tral America and the Caribbean a high-priority area for his foreign pol- icy, turned aside plans to blockade Cuba three times in his, first. 13 months in office, according to offi- cials involved in the decision- making. --Instead, according to these sources, Reagan chose to place indi- rect but steadily increasing pressure on leftist forces in the area by autho- rizing secret CIA support for guer- rilla groups, now totaling 12,000 troops, who have become an increas- ingly serious threat to the leftist Sandinista government of Nicaragua. The unexpected overthrow and execution last month of Grenada's leftist Prime Minister Maurice Bish- op gave Reagan his first attractive opportunity since taking office to use U S. power at modest risk to roll back Cuban influence in the area. On Oct. 25, he seized the chance, launching a U.S.=Caribbean invasion of Grenada that has had powerful symbolic and practical repercussions. Until Reagan became 'president, the troubled region south of the bor- der had gained high-level attention here only episodically in recent years and had hardly ever been the focal point of domestic controversy. But, during the first three years of the Reagan administration, Central America and the Caribbean leaped time after time to the top of the foreign-policy agenda inside the White House. More than any other area, it dominated foreign-policy debates in Congress and the media, among church groups and the general public. Reagan, long outspoken about the area, charged in the 1980 presidential campaign that "the Caribbean is being made-by way of Cuba, the Soviets' proxy-into a Red lake." In a sur- prising precursor of things to come, Reagan told the Chicago Council of Foreign Relations in March, 1980, in his most important campaign speech on foreign pol- icy, that "totalitarian Marxists are in control of the Caribbean island of Grenada, where Cuban advisers are now training guerrillas for subversive action against other countries such as Trinidad-Tobago, Grenada's democratic neighbor." As a candidate, Reagan stirred controversy by ad- vocating a naval blockade of Cuba in reaction to the Soviet invasion of Afghanistan in December, 1979. Moreover, the 1980 GOP platform attacked the Carter administration for inaction "while Castro's totalitarian Cuba, financed, directed and supplied by the -Soviet Union, aggressively trains, arms and supports forces .of warfare and revolution throughout the hemisphere'" After Reagan's Inauguration Day, Secretary of State Alexander M. Haig Jr. sought to translate these posi- tions into action. But when Haig's threatening state- ments about Cuba and a State Department white paper on "Communist Interference in El Salvador" stirred an early controversy, White House aides passed the word that high-visibility enterprises in Central America should be postponed for at least a year so as not to damage higher-priority drives for domestic bud- get and tax.cuts and military increases. Typical of ragged White House-State Department relations in-even those early days, the messages to back off were not given to Haig directly. "I always read . it in the newspaper," he recalled. "It was Haig who galvanized the government, above all," said a senior policy-maker who did not always agree with the secretary of state. "He spent much of his first six months on this area, with no encourage- ment from the rest of the government. He was very ambitious on what could be done about Cuba." In Haig's view, the crisis in Central America was rooted in the Cold War contest with the Soviet Union and Cuba, although he recognized that there were also important social, economic and political aspects. To Haig, the central error of Vietnam was concen- tration on local problems on the ground without stop- ping outside support from Moscow and Peking. He insisted that this was why it was essential to "go to the source," by which he meant Cuba, in order to deal with Central American insurgency. On the basis of secret staff work headed by Robert C. McFarlane, then Haig's State Department counselor and now White House national security affairs adviser, Haig proposed forcing Cuban President Fidel Castro to come to terms through U.S. military deployments, in- eluding movements of the fleet into positions from which it could blockade Cuba to stop import of essen- tial petroleum, import and export. of military supplies and anything else the U.S. chose to bar. Approved For Release 2005/11/28 CIA-RDP91-00901RO004Q6EAg"t-PUS 0 Approved For Release 2005/11/28 : CIA-RDP91-00901R0004( 0060002-9 ARTICLE AP$EARED ON RAGE __ WASHINGTON POST 23 November 1983 Reagan Ehc1ered Sweeping A?o e of Staff for Source of Lead By Lou Cannon and David Hoffman G WashtngWn Post start writers lark was described as "damned angry" President Reagan secretly has ordered a about the leaks and told Reagan on the Justice. Department investigation of his morning of Sept. 13 that. *te...news tories senior White House staff, Cabinet officers had jeopardized McFarlane's efforts'-to ob and foreign policy advisers about news sto- twin a cease-fire in Lebanon-and possibly ries that he was told had disclosed vital endangered McFarlane's life. McFarlane U.S. military and diplomatic strategy in since has become .White House -national Lebanon, administration officials said yes- security affairs adviser, -replacing Clark, terday. Reagan launched the who is now the secretary of the interior. The officials said R investigation nine weeks ago in a letter to Administration officials had regarded Attorney General William French Smith the Sept. 11 National Security Council requesting that he use "al] legal means" to meeting, conducted under tight security on a Sunday afternoon at the White House, as Washington Post and on the three major "4V-"' '.Y a"" weie surprised and irritated to see the television networks. reports about. it. The stories reported details from meet- . Reagan, who has complained ings of 'the National Security Council on often about news leaks whenever an Sept. 10 and 11; in which the president and unfavorable story has a.)peared, was senior officials discussed the progress of described as sharing the anger and negotiations in Lebanon and steps that concern of Clark and others. After could be taken to protect U.S. Marines watching the Sept. 12 television re- As there. part of the sweeping Justice Depart- ports and hearing a report from Clark about The Post's article the meat investigation, which one official said next morning, Reagan readily agreed is "still red hot," the FBI has questioned to conduct an investigation. senior officials in the White House, thg Na- He assembled his senior advisers tional Security Council, the Defense De- on Sept. 13 to draft the letter that partment and the CIA, including everyone would subject them to a federal in- who attended the Sept. 11 NSC meeting. vestigation. These advisers, several Those interviewed by the FBI include of whom had often accused each former national security affairs adviser Wil- other of being responsible for leaks, liam P. Clark, White House chief of staff all said at the time that they were James A. Baker III, Defense Secretary Cas- not the sources of the stories about par W. Weinberger, Secretary of State Lebanon. Then they argued about George P. Shultz and CIA Director William the language of the letter. J. Casey. . As originally drafted by Clark and In the first news reports that triggered presented to the president, the letter the investigation, the television networks authorized an investigation of the, reported on the evening of Sept. 12 that source of the leaks by the "use of all t , - -~ -^ ' - White House chief of staff Baker, mended U.S. air strikes against Syrian po- sitions in 'Lebanon to protect the Marine many issues, adversary to the refer- The force stationed in Beirut. The Washington Post then reported the ence to lie detector tests, according next morning that Reagan had authorized to sources familiar with the meeting. air strikes against forces shelling the M.Q. A discussion ensued in which others was. unimportant because the FBI would be able to use polygraph tests anyway if the president determined ,.hat national security had been vi- olated. According to the sources, the final version of the letter declared that an unauthorized disclosure of highly ensitive information had' been made, that national security issues were at stake, and that the investi- ration should be pursued by "all legal means." Attorney General Smith, FBI Di- rector William H. Webster and the principal subjects of the investiga- tion all declined to comment when asked about the investigation. But it was learned that the FBI had ques- tioned most members of the White House senior staff and a number of middle-level and junior officials. In addition to Baker, Clark, Shultz: Weinberger and those questioned include presidential as- sistant Richard G. Darman. White House communications director David R. Gergen and White House spokesman Larry Speakes. Gergen and Speakes were not considered prime targets of the investigation, according to the sources, because they were not allowed to attend the National Security Council meetings. Those questioned by the FBI were warned that the investigation itself was ossified and that any disclo- sure could carry serious conse- quences. ~ ~ Weinberger;..,likcithers, also de- clined to comment on the investiga- tion or even to confirm its existence. But he did confirm that there was concern in the administration early in September that news stories could put McFarlane "at greater risk" and that media disclosure of U.S. strat- egy in Lebanon could make diplo- macy. less likely to succeed. Some officials took the investiga- Approved For Release 2005PP d d 4k Mdfi aSWtRO00400Q,66kae de and one said, "It's just one more inquiry that. %ton't find an ? ~ I ~01!'~'II1~'ZLF. A pr ved For Release ~1 f/T E~I~M h- A.f}Tp(',r, PIPPEAREU 1 22 November 1983 ON Pf,E Letters to the Editor The CIA Chief's Investments I would like to address possible false impressions arising from the story head- lined "CIA's Casey Boosts His Stake in Firms Having Agency Ties" appearing in your Nov. 14 issue. There were thirteen such companies as of year end 1982. Four of them had sales to the CIA of less than $1,000, to be precise, $12, $151. $479, and $968, respectively. Four others had CIA sales ranging from $2,517 to $12,477. The remaining five companies had sales rang- ing from $152,458 to $3,995,774, and their CIA business was an infinitesimal portion of their multi-billion dollar total sales. The largest of these holdings represented five one-thousandths of one percent of the com- pany's outstanding shares. Thus, you have reported a de minimis of a de minimis. Moreover, I was not in any way in- volved in, nor did I have any knowledge of, any of the business these companies did with the CIA or the decisions of my invest- ment advisor to acquire shares in these companies. During my tenure as Director of Cen- tral Intelligence, my holdings have all been publicly disclosed and fully reported pursuant to the Ethics in Government Act. They have been examined in great detail by the CIA Designated Agency Ethics Offi- cial, and the Office of Government Ethics, and have been found to reflect no conflict of interest of any kind or any other illegal- ! ity or impropriety. When I established a blind trust some six weeks ago, the Office of Government Ethics scrutinized every one of my hold- ings placed in the trust and determined that not a single one of them was a holding of an issuer "having substantial activities related to (my) primary area of responsi- bility," which is the standard applied by the Office of Government Ethics. WILLIAM J. CASEY Director of Central Intelligence Washington Approved For Release 2005/11/28 : CIA-RDP91-00901 R000400060002-9 STA Unknown to Casey, He Asserts in Letters Concerns' Contracts Approved For Release 2005/11/28: CIA-RD ARTICLE APPYA M_ NEW YORK TIMES ON PAGE ? 22 November 1983 By DOUGLAS C. McGILL William J. Casey, Director of Central Intelligence, says he had stock in 13 companies with Central Intelligence Agency contracts that ranged in value from S12 to $3,995,774. In similar letters published yester- day in The New York Times and Sun- day in The Washington Post, Mr. Casey said that he "was not in any way in- volved in nor did I have -any knowledge of any of the business these companies did with the C.I.A. or the decisions of my investment adviser to acquire ,shares in these companies." His re- marks concerned his stock holdings as of the end of 1982. The letters were Mr. Casey's first re-' sponse to agency documents released Nov. 13 as a result of a suit filed under the Freedom of Information Act. The documents disclosed that since Mr. Casey became head of the agency .in January 1981, he has maintained control over stock in companies with both classified and unclassified con- tracts with the agency. The companies were not identified. The documents released a week ago showed that C.I.A. officials and.gov- ernment ethics officers found no con- flict of interest because of Mr. Casey's holdings. According to material filed with the Office of Government Ethics, Mr. Casey established two blind trusts on Oct. 7 with a value ranging from $3,435,000 to $7,065,000. The holdings that his wife, Sophia, put into the trusts had a value ranging from $770,000 and $1,865,000. Establishment of the trusts ended Mr. Casey's control over those holdings. In another matter, Mr. Casey was asked in telephone interviews Sunday about reports that he was willing to take a polygraph, or lie detector, test as part of the investigation of how Ron- ald Reagan's aides got briefing papers for President Carter's debate with Mr. Reagan at the close of the 1980 Presi- dential campaign. He refused to re- spond to the reports, saying it was his policy to speak only to "constituted au- thorities." - "I am still holding to the policy of speaking only to people charged with looking into It," he said. Mr. Casey was manager of President Reagan's 1980 :ampaign. Approved For Release 2005/11/28 : CIA-RDP91-00901 R000400060002-9 Approved For Release 2005/11/28 : CIA-RDP91-00901R000 ARTICLE "~~AFM ,,. ON PAGE WASHINGTON POST 22 November 1983 U.S. Pursues Israeli Connection Anew as Key to Mideast Peace By John M. Goshko Shultz, whose earlier service as pres. Waahington Post Raft Writer No region has confronted Presi- ` ident of Bechtel, an international dent Reagan with more frustrations ? construction firm with close ties to where U.S. Saudi Arabia, originally led some to than the Middle East, policy over the past three years has expect him to turn U.S. policy onto a lurched from initial wheel-spinning pro-Arab course. through a major peace initiative that When Reagan was campaigning went awry to deepening involvement for president in 1980, he made a in a Lebanese civil war where the speech to the B'nai B'rith whose toll of U.S. Marine deaths has raised strongly pro Israeli overtones so fears about a "new Vietnam." upset Shultz that he is known to Now the administration is prepay- have told close friends that. he did not see how he could serve in an ad- ing to try again with a new policy - ministration whose Mideast, policy he disagreed with approach centered on the U.S.-Is- raeli relationship, hoping that it will so strongly. Q More ironic, according to senior administration lead to breakthroughs in three inter- sources,'in June, 1982, at the height of Israel's invasion related, top-priority areas: ending r bloodshed in Lebanon, resolving the of Lebanon, Shult.'z, who was leaving on a trip abroad, Arab-Israeli conflict and safeguard- telephoned William P. Clark, then Reagan's White ing the vital oil supplies of the Per- House foreign policy adviser, to complain that. the ad- sian Gulf. ministration was not doing enough to restrain Israel. Its broad outlines, as described by Because of this telephone call, Clark was aware of a number of senior administration Shultz's views and his whereabouts when Reagan's officials, envision recasting the rela- first secretary of state, Alexander M. Haig Jr., sudden- tionship in ways that could make Is. ly resigned, partly due to disagreement over U.S. pos- rael an unofficial partner of the tore toward the Israeli invasion. United States by greatly increasing Since taking office. Shultz, in the view even of the American aid and strategic cooper- Israelis. has followed a scrupulously evenhanded ap- ation with the Jewish state. This co- proach in dealing with both sides in the Arab-Israeli operation would not be codified by dispute. Administration sources say his present, advo- cacy of closer ties with Israel results from frustration formal treaties, but it would make over U.S. failure to win Syria's cooperation in Lebanon clear to adversaries like Syria, and and from his growing conviction that a restructured its Soviet backers, that the two relationship with Israel eventually might make that countries have a confluence of inter- nation more amenable to resolving the Palestinian ests and are prepared to collaborate problem, which Shultz regards as the root cause of in safeguarding them. Mideast tensions. The objective, according to the of- This latest approach is in an early stage, and its ficials, is to give Israel a long-term final shape will depend heavily on the outcome of con- sense of security about the perma- tinuing disagreements between Reagan's most senior nence of U.S. support and to immu- advisers and of visits here by Israeli Prime Minister nine the relationship from stresses Yitzhak Shamir next. week and Lebanese President that have characterized it in the re Amin Gemayel a few days later. cent past. But the United States hopes. that. Israel will recip- The new policy is largely the work rocate by showing greater flexibility toward American of Secretary of State George P. dealings with the Arab world, first in achieving a Leb- Shultz, and it represents what seemfs anon solution that will permit withdrawal of the Ma - outwardly like an aAopprovedoppr Release 2005/11/28: CIA-RDP91-00901 R000400060002-9 Approved For Relea&l2095/M6s Q i .9'1: 1 ROQ QOMOM9 21 November 1983 Two congressmen, including a powerful House committee chairman, took the Synthetic Fuel Corp. to task Monday for its handling of a North Carolina peat--to-methanol project slated for $465 million in federal loan and price guarantees. Rep. John Dingell, D-Mich., chairman of the House Energy and Commerce Committee, and Rep. James Broyhill, R-N.C., the committee's ranking Republican, criticized SFC chairman Edward Noble for backing the First Colony synfuels project. ''We must express our concern and disappointment with the SFC's handling of this first synthetic fuels application,'' said the two congressmen in a letter to Noble. The corporation has given preliminary approval to the project, in which CIA Director William Casey and four former Ford administration officials have a financial interest. They are part of Peat Methanol Associates, a large partnership. ''Whether the project was a good first choice is questionable,'' said the two congressmen. TA Approved For Release 2005/11/28 : CIA-RDP91-00901 R000400060002-9 Approved For Release 2 e, RA W)0RMpjRR1 21 November 1983 ---- Ethics And Mr. Casey BY IGNORING the ethical ex- amples of his colleagues, including President Reagan, William J. Casey continues to unnecessarily embarrass the President. U.S. House and Senate com- mittees some time ago probed the CIA chief's financial dealings be- didn't see fit to follow the ethical standards of those similar- ly situated. W. Casey's predeces- sors and such Administration of- ficials as Vice President George Bush, Mr. Reagan, the attorney general, and the secretaries of State and Treasury, all put their holdings into a blind trust. Mr. Casey kept control over 'his investments and didn't sell stock in firms that. deal with the CIA. He claimed his long-time in- vestment attorney made the day- to-day decisions to buy or sell except in two unusual cases. The CIA set up a screening procedure to be certain Mr. Casey didn't make decisions that substantially affect his holdings. These arrangements were re- cently studied by the Center for National Security Studies. After obtaining records on Casey's in- vestments, the center protested they "show an enormous invest- ment of resources" at the CIA -to advise Mr. 'Casey on how to pre- vent potential conflicts of interest. This effort, the center said, diverts officials from other duties. The documents also show that Mr. Casey has acquired stock in companies that deal with the CIA since he took over as head of the agency. It's true that CIA attorneys, and government ethics officials 'found no conflicts, but Mr.. Casey, considering his sensitive. position in government, should realize how easily a shadow can fall over his financial dealings and reflect on his credibility and the Adminis- tration's. The standards for Mr. Casey should be as strict as those for the others, if.not more so. Approved For Release 2005/11/28 : CIA-RDP91-00901 R000400060002-9 CT T Approved For Release 2q &l Y : F fDP91-00 Q1 R-00040 016 ARTICLE APPEARED 21. November 1983 ?~ ON PAGE C73 C/A chief ready for Debcn'egate lie test By DEBORAH ORIN CIA Director William Casey says he is willing to take a lie-detector teat to prove he had nothing to do with getting Jimmy Carter's debate book for the 2980 Reagan campaign, it was re- ported yesterday. That would put the na- tion's top spy in a high- stakes game of "Truth or Consequences" with Whits House chief of staff James Baker, who insists that Casey had the secret debate book and gave it to him. The conflict between Casey's and Baker's sto- ries last summer rocked the Reagan Administra- tion and sparked talk that one of them might have to resign. Casey at first refused to take a lie detector test, saying it was "demean- ing," but recently he said he was willing to tell his story to a polygraph and added, "My conscience is clear," according to the Washington Post. The paper said its in- formation came from "informed sources." Baker said he was will- ing to take a lie-detector test when the possibility first was raised last summer. But FBI spokesmen Thomas Deakin last night told The New York Post that no decision has been made on whether to .use lie-detector tests in the FBI investigation of the Debategate controversy. He added that the sensitive decision actu- WILLIAM CASEY "Nothing to hide.- ally Is up to the Justice Dept. and presumably to Attoney General Wil- liam French Smith. "Considering the sensi. tive nature of the case. I'm sure It would go up to him," Casey said. Democrats can be ex- pected to howl "foul" if Smith decides against lie-detector tests, espe- cially since he is an old friend of the President's. The FBI and a House ethics subcommittee have been investigating Debategate for the past five months. The matter generally has dropped from atten. tion but will soon resur- face when public Debate- gate hearings com- mence on Jan. 26 before the subcommittee. That could be a deli- cate time for the Presi? dent. Some Insiders say he plans to announce his re-election plans just about then - shortly after he gives his State of the Union address on Jan. 20. Casey chaired - Rea- gan's 1980 campaign and faker is expected to play a key role In his 1984 campaign if he seeks re-election. Casey has insisted that he wouldn't have touched the Carter brief- Ing book "with a 10-foot pole" because he knew it could destroy the Rea- gan campaign. Approved For Release 2005/11/28 : CIA-RDP91-00901 R000400060002-9 Approved For Release 2005/11/28 : CIA-RDP91-00901R000400 ARTICLE EARED - NEW YORK TIMES ON PAGE /? 21 November 1983 Casey Stock Linked, to C.I.A. WASHINGTON, Nov. 20 (AP) - Wil- liam J. Casey, Director of Central In- telligence, says he had stock in 13 com- panies with Central Intelligence Agency contracts that ranged in value from $12 to $3,995,774. In a letter published today about his holdings as of the end of 1982, Mr. Casey also said he "was not in any way involved in nor did I have any knowl- edge of any of the business these com- panies did with the C.I.A. or the deci- sions of my investment adviser to ac- quire shares in these companies:" The letter, published in The Washing- ton Post and verified today by Dale Pe- terson, a spokesman for the agency, was Mr, Casey's first response to agency documents released Nov. 13 as a result of a suit filed under the Free- dom of Information Act. The documents disclosed that since Mr. Casey became head of the agency in January 1981 he has maintained con- trol over stock in companies with both classified and unclassified contracts. with the agency. The companies were not identified. The documents released a week ago showed that C.I.A. officials and gov- ernment ethics officers found no con- flict on interest because of Mr. Casey's holdings. According to material filed with the Office of Government Ethics, Mr. Casey established two blind trusts on Oct. 7 with a value ranging from $3,435,000 to $7,065,000. The holdings that his wife, Sophia, put into the trusts had a value ranging from $770,000 and $1,865,000. Establishment of the trusts ended Mr. Casey's control over those holdings. No Comment on Briefing Papers Special to The New York Times WASHINGTON, Nov: 20 - Mr. Casey, asked About reports that he was willing to take a polygraph, or lie detec- tor, test as part of the investigation of how Ronald Reagan's aides got brief- ing papers for President Carter's de- bate with Mr. Reagan at the close of the 1980 Presidential campaign, refused to respond to the reports in telephone in- terviews today. He said it was his policy to speak only to "constituted authorities." He added, "I am still holding to the policy of speaking only to people charged with looking into it." He was manager of President Reagan's 1980 campaign, Approved 'For Release 2005/11/28 : CIA-RDP91-00901 R000400060002-9 Approved For Release 2005/11/28: CIA-RDP91-00901RO /it WASHINGTON TIRES 21 ovemi)er 1903 e prejudice M -ecos caLk on reports by media U.S. -` "If-that' is the efficiency of the By Edward Neilan CIA, I fear for the safety of the free w~ssu+cro Tww sr world, because they don't know MANILA - President Ferdinand E. Mar- cos strongly criticized-Western press and U.S. government intelligence reporting on the Philippines. yesterday, claiming their "biases and prejudices" have added to his nation's image problems abroad. In an exclusive interview with The Wash- ington Times at Malacanang Palace his second this year - Mr. Marcos pinpointed the Western press, the US. Central Intel- ligence Agency and the U.S. Embassy in Manila for inaccurate reporting. "I am afraid for the United States," Mr. Marcos said, "because the information you are getting is rotten. Most of it is false and exaggerated. The assessments are all com- pletely wrong. They let their biases and prejudices dominate." "That's not the proper attitude,' Mr. Mar- cos said. "I am intelligence-trained. I grew up in intelligence. And I tremble everytime I see the reports of the CIA." He said, "If this is the type of intelligence that . the free world has, that the United States has, I am worried" Mr. Marcos appeared to have plenty of energy after dealing with a morning round of calls and consultations. After a reporter's 40-minute visit he had a scheduled tele- phone hook-up with Japanese Prime Min- ister Yasuhiro Nakasone. On the question of his health, Mr. Marcos was succinct: "Those who predict my death, I will attend their funerals:' Mr. Marcos was asked if a possible rescheduled visit to the Philippines next April by President Reagan would help his own political fortunes. For what? I am not running for re- election," Mr. Marcos said. "But yes, of course, because the visit of a leader of his stature is always something that will improve your image. But as 1 wrote him, what is important is his convenience. "lb be frank with you, fora while I thought of cancelling the visit. I wanted to show to everybody that we didn't need the visit to keep sta- bility in the country. "We are, of course, a little disap- pointed that he did not continue the visit. But if it involves his safety, as anything at all. They keep report- ing so many wrong things. Even the State Department, even the embassy." - On the excellent security exper- ience during the Reagan visit to Japan and Korea, Mr. Marcos said: "Well, if you have 90,000 policemen, you had better be good. But what.I am worried about is that the CIA seems to be getting its information from press correspondents. They swallowed - hook, line and sinker - everything the correspondents put out and reparted it as intelli- gence. Even the American Embassy did this. This is what hap- pened in Iran; this is terrible." Mr. Marcos moved up and down in his chair, and gestured as he con- tinued on a subject he obviously feels strongly about. "Everybody demonstrates in the United States but you don't hear anything about it. You don't give it an assessment that the United States is about to fall." Mr. Marcos said, "I am almost inclined to write my friend (CIA Director William) Casey. He was here before. But I am afraid even he is being misled by his own agents." The president was asked if he believes the local political climate will change with the recent announcement of approval of S652 million International Monetary Fund loans for the Philippines and the progress of the commission looking into the death of Benigno Aquino. "I believe it has changed," Mr. Marcos said. 'The problem is that the climate is really in the mind of Western correspondents. Your ambassador to the United Nations, Jeane Kirkpatrick, had an apt thing .to say. She said private media is one of the most powerful forces in that it is accountable to no one, no mat- ter how vicious it is:' Mr., Marcos has said he would leave the question of presidential succession, including the proposal to restore the vice presidency, to the Batasang Pambansa (assem. bly). But he clearly still opposes a re-institution of the vice- presidency. "You don't have a vice-president in a parliamentary system, which is what we have here," Mr. Marcos said. "You see, the problem here is that when you have a vice- president, he automatically' becomes the president, even if he may not have been chosen as vice- president for the purpose of the problems the country could.be fac ing at the time. "What Americans and other'* Western people do not understand is that Asia and Africa are societies of consensus. Unless there is a strong father figure, and if the father figure is eliminated, then the consensus applies. Which means that everbody has to help." Mr. Marcos said he was aware that some people wanted to have a single person designated as his suc- cessor rather than leaving the choice to the Executive Committee. "All right," Mr. Marcos said, "the next question is, suppose Marcos disappears? Whom do you think can take his place to get everybody to cooperate? (Prime Minister Cesar) Virata? They will laugh in your face. He may not even win an election. He is no politician and yet you are going to make him vice- president and automatically a can- didate for president. He will lose the elections. He is not a politician, period. And if you insist on pushing him down the throat of the other leaders, you will have a rebellion. "This is what most people don't understand. This is why Americans commit so many errors. They don't know. the personalities involved. They don't know the background" Assemblyman Arturo Tblentino, a member of Mn Marcos' ruling parry, is the chief proponent of res- toration of the vice-presidency as a means of establishing a clear-cut line of succession. A decision on this question may be forthcoming this week. they claimed it 1FbJ Release 2005/11 /28 : CIA-RDP91-00901 ROOO4OOO6OOO2-9 me wonderhow efficie the ts. 4/ Approved For Release 2005/11/28 : CIA-RDP91-00901R0004 BALTIMORE SUN 21 November 1983 ARTICLE APEAREI ON PAGE . ase lists firms' CIA contracts Washington (AP) - CIA director William J. Casey says he had stock in 13 companies with CIA contracts whose value ranged from $12 to near- lY $4 million. ' - In a letter published yesterday, Mr. Casey also said he "was not in any way involved in nor did I have any knowledge of any of the business' these companies did with the CIA or [of] the decisions of my investment adviser to acquire shares in these companies." Commenting on his stock holdings as of the end of 1982, when he still re- tained full, control over them, Mr. Casey said five of the companies had sales to the Central Intelligence Agency ranging from $152,458 to $3,995,774. He said four companies had sales ranging from $2,517 to $12,477, and the other four had sales ,of $12, $151, $479 and $968. Of the five companies with the largest CIA sales, Mr. Casey said, "Their CIA business was an infinitesi- mal portion of their multibillion-dol- lar total sales." The letter, published in The Washington Post and confirmed as genuine yesterday by a CIA spokes- man, Dale Peterson, was Mr. Casey's first response to CIA documents re- leased last Sunday as a result of a Freedom of Information Act lawsuit. Approved 'For Release 2005/11/28 : CIA-RDP91-00901 R000400060002-9 Approved For Release 2005/11/28: CIA-RDP91-00901R000, AR7 CLE AMM M , NEW YORK CA ?AGE In -~" 21 November 1983 U.S. and China: The Intelligence Bond Grows TWO SECRET MEETINGS BE- tween Chinese leaders and top U.S. intelligence of- ficials suggest the two na- tions may have been brought closer in the after- math of the Soviet downing of a Korean jetliner two months ago. When Chinese Foreign Minister Wu Xueqian Visited President Reagan in Wash- ington last month, he also held a secret meeting with C.I.A. Director William Ca- sey. Just days later, Gen- eral James Williams, direc- tor of the Defense Intelli- gence Agency, arrived in Peking for talks with lead- ers of China's National De- fense Ministry. One topic of the meet- ings, observers believe, was the sharing of intelligence gathered by the two C.I.A. monitoring stations in China that played a key role when the Soviet Union shot down the K.A.L. jet. Robert Down en, an Asian- affairs expert at Georgetown University, said that he be- lieved , the meetings had touched upon "the C.I.A. listening posts and covert actions against Soviet in- terventions in Afghanistan and Cambodia." Downen said that "K.A.L has got to have had an impact on the talks-Peking clearly leans further toward the U.S. on strategic interests now but still doesn't want to jeopard- ize its overtures toward Moscow." The C.I.A. would not comment on the Casey-Wu meeting. STAT Approved For Release 2005/11/28 : CIA-RDP91-00901 R000400060002-9 ARTICLE Al, ON PAGE 21 November 1983 Letters Of the Companies in Which Casey Owns -Stock Approved For Release 22 Y5 1 1/28: CIA-RDP91-00901 ROq TIMES To the Editor: Designated Agency Ethics Official I would like to address possible and the Office of Government Ethics, I false impressions arising from the and they have been found to reflect no Nov. 14 news article "Additional, conflict of interest of any kind or any Casey Stock Dealings .Made Public other Illegality or impropriety. in C.I.A. Documents." When I established a blind trust The transactions concerned stock some six weeks ago, the Office of in 13 companies as of year-end 1982. Government Ethics scrutinized every Four of them had sales to the C.I.A. one of my holdings placed in the trust of less than $1,000; to be precise, $12, and determined that not a single one $151, $479 and $968, respectively. of them was a holding of an issuer Four others had C.I.A. sales ranging "having substantial activities related from $2,517 to $12,477. The remaining to [my] primary area of responsibil- five companies had sales ranging ity," which is the standard applied by from $152,458 to $3,995,774, and their the Office of Government Ethics. C.I:A. business was an infinitesimal WILLIAM J. CASEY portion of their multibillion-dollar Director of Central Intelligence total sales. The largest of these hold- Washington, Nov. 17,1983 ings represented five one-thou- sandths of one percent of the compa- ny's outstanding shares. Thus, you have reported a de minimis of a de minimis. Moreover, I was not in any way involved in, nor did I have any knowledge of, any of the business these companies did with the C.I.A. or the decisions of my investment adviser to acquire shares in these companies. During my tenure as Director of Central Intelligence, my holdings have all been publicly disclosed and fully reported pursuant to the Ethics in Government Act. They have been examined in great detail by the C.I.A. Approved For Release 2005/11/28 : CIA-RDP91-00901R000400060002-9 STA ARTIrME ON PAGE ' i 91-00901 R000400060002-9 'Additional Casey Stock Dealings Made Public in C.I.A. Documents WASHINGTON, Nov. 13 (AP) - Wil- 'liam J. Casey has, acquired stock in companies that do business with the Central Intelligence Agency since he ;took over as Director, according to documents recently made ppuublic. ? -The documents also dii:close that Mr. Casey had stock in concernn s with clas- sified C.I.A. contracts whe he took of- -Tice' in January 1981, and that since then, he has retained stock in compa- nies. with both classified and unclassi- fied contracts with the agency. ' Mc1?t of the documents, obtained in a lawsuit based on the Freedom of Infor- tlmibn Act, relate to the agencl's. ef- forts to assure that Mr. Casey's multi- million-dollar stock holdings did not C y conflict of interest with his of- uties. 'iTie documents show that agency at- tomeys and Government ethics offi- clal~ have found no conflicts. Company Names Deleted Deleted from the documents are the names of concerns with agency con- traCts or the size of the Casey holdings. -'fhb Senate and House intelligence committees have inquired into Mr. Caseyy's finances, in part because he did itat follow the procedures chosen by two "predecessors as directors of cen- tral' Intelligence, Adm. Stansfield - flirt r and George Bush, and by other senior Reagan Administration officials with-equivalent access to secret Gov- ernment economic intelligence, includ. ing President Reagan, Vice President Bushf, Attorney General William French Smith, and the secretaries of State, Treasury, and Defense.. All of those officials, except Defense Sectary Caspar W. Weinberger, put %AILUALAM .their boldings into a blind trust. Mr. Charged with- screening Mr. Casey's Weinberger sold off stock in companies dealings received 18 reports on Mr. d ic P t b i o ep~major en agon us ness. Casey's stock transactions. Mr. Casey retained control over his holdings, he did not sell stock, in com- ;panies dealing wlth the C.I.A. He as- Approved For Release. 2005/1.1/28 : CIA-RDP91-00901 R000400060002-9 serted, however, that his investment adviser, Richard Cheswick, made day- to-clay trading decisions, except in two cases in which Mr. Casey ordered sales. Last month, however, Mr. Casey put his holdings into a blind trust. The agency documents were turned over in the last two weeks to attorneys for the Center for National Security Studies, which sued for them under the Free- dom of Information, Act. The center asked for any documents which showed how much time agency officials were devoting to screening Mr. Casey from potential conflicts of interest. The center made the documents pub- lic today. David Vladeck, an attorney for the center, said he believed they "show an enormous investment of re- sources at C.I.A. in advising Casey, di- verting those officials away from their primary activity." He said center offi- cials were deciing whether to ask Fed- eral District Judge Louis F. Ober- dorfer to make public some of the ma- terial deleted from the documents when the agency tui'hed them over. A C.I.A. spokesman, Dale Peterson, said today that neither he nor Mr. Casey had any comment. In an affidavit, Gary M. Chase, an agency attorney, said that 168 docu- ments relating to the screening ar- rangement had been found and that 19 were made public. He noted that the Freedom of Infor- mation Act allows the agency to with- hold data which could used by foreign intelligence agents to learn about se. cret intelligence methods and sources. Between May 1982, when the screening was begun, and May 1983, the latest STA LEWISTON TRIBUNE (I',f TT,,~~3 Approved For Release 200 14 ?;,QA-RQPQ1-066" OI t away win t C ongress has"-been lax in not,putting the well-being above that of his country. L heat on President Reagan to .-dum `CIA There is aAchool of the thought within the Director William Casey. Casey has the aics intelligencecommunity and among its defen- of a Russian spy when it comes to avoiding ders that the Soviets fight so mean and di 'conflicts of interest.. - ;; that : he-ClAmust do-the. same. You must He is the only administration official who fight fire with fire. You must, as in war, take hasn't either: sold stock that,presents con ;.: actions that would be plainly unethical In z. flict-of-interest problems or placed ' t in`a different context. ;blind trust Indeed,' Casey ..has actiiall- ac ~. t One almost gets the :impression, there= quired more stockXn ompan es'thatidotbusi fore, bvioiisiy sleazy enough se com ete at Hess with the CI14~swee.he:became rector # t Reagan ch agszo Casey as a man of .the'-agency + ' s p " ;i'3ower.3evels with the Russians. And if !Casey, alone among high officer of he the that;: was the' basis of~Casey's selection, then Reagan administration, has retained.the abil the president has chosen exceedingly well ity to enhance his private wealth ,through public acts. That is dishonest and it puts:,the CIA -'director in the.odosition of.placing:hisown Approved For Release 2005/11/28 : CIA-RDP91-00901R00040.0060002-9 dCasey con Approved For Release 20 kFcl~9b10,b00 0~~ ~Q D November 1. 3 ~~~ lU1WL~ Mr. Casey's Stock Holdings T HE finances of Mr. William J. Casey, the director of the Central Intelli- gence:Agency, have raised more than a little curiousity from the time he took office. They still do. The Senate and House intelligence committees have inquired about those finances, in large part because he didn't place his stock holdings in a?blind trust at first, as did his two precedessors. It was only recently that he did so, after some pressure by Sen. Carl Levin, I)- Mich.: But in documents obtained by the Freedom 1 of Information Act, it seems that-Mr. Casey has acquired stock in companies that do business with the CIA' The CIA documents made public show' that Mr. Casey held stock in com- panle"s with classified contracts when he took office in Janurary 1981. They also show that he since has retained stock in companies with both classified and un- classified agency contracts. Most of the disclosures relate to CIA efforts to ensure that the director's mul- timillion stock portfolio didn't pose a conflict of interest with his official du- ties. CIA lawyers and government ethics officials found no conflict, according to the documents. Perhaps there are no conflicts as re- lated directly to his duties. But it seems reasonably odd that Mr. Casey would re- tain and add to stocks of companies doing business with the intelligence agency. Since contracts are classified, the public has no way of knowing the size, duration or -how they might im- prove a company's financial position or affect stock dividends. Mr. Casey does sit in a sensitive post and has access to a great deal of infor- mation that few others do, including ad- vance projections of trends in finance and other things. He has put his stock in a blind trust, but he hasn't put down a lot of questions about his stock holdings. In- sofar as possible, he should. Approved For Release 2005/11/28 : CIA-RDP91-00901 R000400060002-9 Approved For Release 2005/11/28 : CIA-RDP91-00901R0001 ARTICLE APPEAR WASHINGTON POST ON PAGE_ 20 November 1983 LETTERS TO THE EDITOR William Casey Replies I would like to address possible adviser to acquire shares in these false impressions arising from the story headlined "Casey Portfolio Included Firms Doing CIA Work" and its first-page .position in the Nov. 14 issue. There were 13 such companies as of year end 1982. Four of them had sales to the CIA of less than $1,000 to be precise, $12, $151, $479 and $968, respectively. Four others had CIA sales ranging from $2,517 to $12,477. The remaining five companies had sales ranging .from $152,458 to $3,995,774, and their CIA business was an infinitesi- mal portion of their multi-billion dollar total sales. The largest of these holdings represented five one- thousandths of 1 percent of the company's outstanding shares. Thus, The Post has reported a do rn nimis of a de minimis. Moreover, I was not in any way involved in nor did I have any knowledge of any of the business these companies did with the CIA or the decisions of my investment companies. During my tenure as director of Central Intelligence, my holdings .have all been publicly disclosed and fully reported pursuant to the Ethics in Government Act. They have been examined in great detail by the CIA Designated Agency Ethics Official, and the Office of Government Ethics, and have been found to reflect no conflict of inter- est of any kind or any other illegal- ity or impropriety. When I established a blind trust some six weeks ago, the Office of Government Ethics scrutinized every one of my holdings placed in the trust and determined that not a single one of them was a holding of an issuer "having substantial activi- ties related to [my) primary area of responsibility," which is the stand- ard applied by the Office of Gov- ernment Ethics. WILLIAM J, CASEY Director, Central Intelligence Agency Washington Approved For Release 2005/11/28 : CIA-RDP91-00901 R000400060002-9 Apptjg~?g Fir 2005/11/28 : CIA-RDP91-00901R000400060002-9 ON PAGE Casey Portfolio Included Firms Doing CIA Work By George Lardner Jr. WashingWn Post. Staff Writer CIA Director William J. Casey had a financial interest in several companies doing business with the CIA when he decided to put his holdings in a blind trust last July. Some of the investments were made by Casey's investment adviser after Casey became CIA director, ac- cording to CIA records produced by a lawsuit under the Freedom of In- formation Act. The CIA, however, has refused to release details about how many of the companies, in Casey's portfolio hold contracts with the agency or how many contracts they hold. A millionaire whose financial deal- ings have been a sporadic source of controversy since. he became CIA di- rector in 1981, Casey had an interest in 72 companies as of last Jan. 3, ac- cording to CIA general counsel Stan- ley Sporkin. The total, records indicate, was still about the same when the law- suit was filed June 28 by the private- ly funded Center for National Secu- rity Studies. According to the CIA, the heavily censored CIA records turned up by the litigation show only "a small number of companies" in the Casey portfolio holding classified CIA con- tracts and another "small number" Witt unclassified contracts. . At. the same time, one computer pri stout of contracts, held, by some, bub apparently . not all, of the CIA- coi nected ' companies totals four pages, according to a court-required intx of the 168'documents relevant to the lawsuit, including those with- held by the CIA. Only 19 entire doc- untnts were released. WASHINGTON POST 14 November 1983 Jasey and his CIA advisers have coiistently taken the position that. his investments posed no conflict. 'of int.4rest, especially in light of a "screening arrangement" established in May 1982 to deal with potential pr )lems. PIA. spokesncan George ladder tole a reporter that, in addition, "all of ;,Casey's transactions from the tiniie he became director of central in tilligence'have been reviewed thor- oughly by the Office of Government. Ethics. They've had access to all in- fortnatiori; :including classified infur- malion ...1andl the .classified. con- tracts" " Each year, he :;aid; the ethics oft1ce has found no conflict.. Casey declined,. through Lauder, to jomment. But Sporkin, formerly chef of enforcement at.. the Securi- ties and Exchange ;Commission, said he ?.is confident, that no impropriety was involved :I've, been in the business of in- sid$r trading for a long time,,and th4e-s no problem here,".: Sporkin said. The screening . mech ;r he l teas 2005/1i1i/M ltWjALR[ M]bft9d49R,400060002-9 Is the permanent prevention of war the Virginia State Assembly, the o arid the establishment of conditions dest legislative body in the Western of freedom and democracy as rapid- Hemisphere. In that speech he stat ly as possible in all countries." ed: It is now nearing 40 years since Winston Churchill spoke here. The '7t Is In the years-of peace that thought that I would leave with you war is prevented and those founds- is that the struggle with what the So- lions laid upon which the noble viet Union represents was not con- structures of the.future can be built- fined to Churchill's generation, or to That peace will not be preserved fry generation, or the generation of ... without the virtues which make vic yrour faculty and parents, or your fury possible in war. Peace will not generation. This is a conflict deeply ,be pi esenved by.. pleas sentiments rooted In ideas. This conflict is as old wed m_ terms of platitudes, or as recorded history. The threat by official grfmaces-and diplomatic owed by the Soviet Union is the hn- ~con'ectitude, or,t Casting aside in cal descendent of the same threat dangerous times our panoply of ur Western civilizations have faced for like strength. There must be earnest better than 2,000 years: it is the thought. There must be faithful per threat posed by depotism against the severance and foresight. Greathea.rr, amore or less steadily devioping con- must have his sword and armor U cept that the highest goal of the state guard the pilgrims on their way-' is to protect and to foster the cre- I am confident that Sir. Winstor ative capabilities and the liberties of would "a reeit that despite our fondest the indi,viduaL :11 is a contest be- Prophecy, tween two elemental and historic of human history, and especially al ally opposed ideas of the relation- of Russian history points to our ncc'. f children and ur d ti o nee ship between the inawadual and the and ie o state. The chief threat posed by the: their children for swords as well a, Soviet Union. therefore, is not neces-. plowsttares; J see, therefore, the sarily in the ;vastness of its military -same future Churchill saw here s- forces -- t h o u vast they are - but -ion a g o - n o t an easy future -Nit sault. our catty, a rife one..- Photo by Virginia Wallis lNilli,am .l. Casey STAT Approved For Release 20051$1-~-0~ `~ 1 November 1983 1J.S.-Soviet cross fire doesn't allow poor option of surrending Crisp. autumn air circulating through sunlit autumn leaves combined to produce a peace- fulness at Westminster College Saturday that belied the horrors faced by the United States in confronting the Soviet Union. .. Lest we forget that creeping communism imperils our democracy at virtually every turn, Central Intelligence Agency Director William Casey came to Fulton to remind us. Mr. Caseyfollowed Winston Churchill's script in giving a new version of the Iron Cur- tain speech, a classic address thatthe former British prime minister delivered at West- . minster in 1946. It was ironic that Mr. Casey told the audience that Mr.. Churchill would have supported our invasion and liberation of Grenada. If that's true, Mr. Churchill would have been at odds with both the conserva- tives and liberals in Britain now. Both groups are critical of the invasion. When Mr Casey finished justifying our in- tervention in Grenada, `t.ebanon and Central America, he received a standing ovation from the white, affluent-looking students and their parents who had assembled to see the intelligence chief honored with a doctor, of law degree as part of the John Findley Green. Foundation Lecture series. It wasn't the kind of audience one would expect to have sons or brothers in any of our current theaters of war. The other end of the political and economic spectrum was marching outside with signs pleading for peace and an end to our involve- ment in distant conflicts. The marchers were mostly f roan Columbia; many had marched at last year's Green Foundation lecture when Secretary of Defense Caspar Weinberger ceived the same honorary degree. The meeting of these divergent groups Westminster is indicative of the greater di\ sion in contemporary American political and social views. Between the extremes of liber- alism and conservatism is the position of the vast bulk of American citizenry who suspect our foreign policy is motivated by less than the idealism espoused by Mr. Casey and President Reagan. At the same time it dis- trusts the liberal view that the world can get along better without :American interference and occasional military intervention. Most.of us usually interpret history to fit our point of view on foreign policy - Vietnam .to argue against intervention and the Russian menace to argue for it. Mr. Casey stuck to the Russian menace; his detractors marching outside invoked the Vietnam debacle. It is-unfortunate that Mr. Casey offered few concrete proposals for making the world ?osperous and safe for democracy. He spoke ,aguely of the need for private enterprise to nvestan Third World nations; he said that the economic record of the countries that have i come under Soviet influence has ranged from poor to very poor. He failed to say what alter- native these countries might have given our on-again,'off-again foreign aid. "The less-developed nations of the world will be the principle U.S.-Soviet battleground for many years to come," Mr. Casey said, af- ter explaining that we need changes in our foreign military sales laws to permit the U.S. to provide arms more quickly. He said we also need to upgrade the communications, mobility, police and intelligence Oapabilities in these underdeveloped countries. He failed to mention food or development assistance or that the United States is reducing its commit- ment to such aid programs. Mr. Casey's formula for fighting our idelog- ical battle with the Soviets appears to con- demn the rest of the world to a hellish kind of war in which the poor of the world will be the victims. Caught in the U.S.-Soviet cross fire, these people don't even have the option of surrendering. Approved For Release 2005/11/28 : CIA-RDP91-00901 R000400060002-9 Approved For ReleaseS2O0510TI128 GMAERD IGG 9'0 (ROG 1 November 1983 `iron Curtain' Revisited CIA Director William J. Casey is emtfiTnently correct in saying that the United States should develop "a realistic counterstrategy" to combat Soviet -disruption in the Middle East and Central America. It would be unrealistic not to take such action. Casey was on solid ground when he made his pitch. It came during a lecture at Westminster College In Fulton, Mo., while Casey was standing on the same platform from which Winston Churchill warned in :1946 that an "Iron Curtain" had descended on Eastern Europe. "The priority of less-developed countries in our overall foreign policy needs to be raised and sustained," Casey declared. "We have too often neglected our friends and neutrals in Africa, the Middle East, Latin America and Asia until they became a problem or were threatened by developments hostile to our interests," Casey said in accepting an honorary doctor of laws degree from the college. In addition to paying greater heed to Third World countries, Casey noted, the 'United States should train its allies "in counterinsurgency tactics and upgrade their communications, mobility, police and intelligence capabilities." He also called for relaxing U.S. foreign military sales laws so that "our friends" can be provided self-defense arms more quickly. Regarding this, it's a cinch the Soviets aren't bashful about arming their friends. 'It's become alarmingly evident over the years that the Soviet Union goes all out in providing arms to countries that are considered unfriendly to the U.S. On a nonTmilitary front, Casey rightly holds that the U.S. should devise -a means of mobilizing private business, which he described as America's greatest asset in the Third World. "Investment is the key to economic success or at least survival in the Third World. And we, our NATO allies and Japan need to develop a common strategy to promote private, investment" there, he said. "The Soviets are helpless to compete with private capital in these countries.,, What Casey proposes has the potential for providing a double-barrelled attack against Soviet adventurism: Fighting fire with fire where it is necessary, and fighting fire with water when it is opportune to do so. Approved For Release 2005/11/28 : CIA-RDP91-00901 R000400060002-9 ST. A~JJY40 Approved For Rele s FAD%R'1=OOgO'I0004000 `lrort Curtarin' Revisi CIA, .Airectoc W.tItiam, J Casey -~6' tted 1 ae 1 , 1 emminently correct to saying that the : He airs tailed for relating U.S.~foreign ~t Stun ~ld de-velop "a reshatk- ~au"ry sales lawn so that ` *n lrteods" tegy" . to combat Say* _ , can he provided self-defemt a rms :more .. disruptioe in the Middle East and central thy, Rtgarding this, it's a cinch the America. It would be unrealistic not to Smiest aren't bashful about arming their take such action. , -friends. It's become -alarmingly .evident Casey was on wild ai said wbsa bie over years that the Soviet Union gores made is pitch, It ease during a Wed" at - all nut in providing arms to countries that We Oster College In Fulton, W., wMk are considered unhiemdty to the U.S. Case was st th dk h y aa ig an e same plat em from which Wimtan CborddO warred In IM that an "Iron Curtain" bad dasoidd an Eastern Eu rope.. "The priority of less-developed countries in our overall foreign policy needs to be raised and sustained," Casey declared. "We have too often neglected out friends and neutrals in Africa, the Middle East, Latin America and Asia until they became a problem or were threatened by developments hostile to our interests," Casey said in accepting an honorary doctor of Laws degree from the college. In addition to paying greater heed to Third World countries, Casey noted, the United States should train Its allies "in counterinsurgency tactics and upgrade their communications, mobility, police and On a non-military front, Caney tightly holds that the U.S. should devise a means of mobilizing private business:, which be described as Ame rka's greatest asset in the Third World. "Investment is the key to eoooonIc success or at least survival in the Third World. And we, our NATO auks and Japan reed to develop a common strategy to promote private investment" there, he said. "The Soviets are helpless to compete with private capital in these countriess." What Casey proposes has the potential for providing a doubk-barrelied attack against Soviet adventurism: Fighting fire with , fire where It Is eecew ary, and fighting fire with water when it Is epporane to do so. Approved For Release 2005/11/28 : CIA-RDP91-00901 R000400060002-9 AppMVGd ogJR 2005/11/28: CIA-RDP91-00901RO O1 PAGE ' - =s WP,SH? 14GTON POST 1 November 1983 Israel Reported Set to Bar gain On Jordan. Force. By John M. Goshko Wazhingi,on Post Staff Writer Israel tentatively is prepared-to drop its -opposition to the Reagan administration=s plans for a Jordanian rapid deployment force if the United States agrees to mea- sures involving closer military and strate- gic cooperation with the Jewish state, U.S. .and diplomatic sources said yesterday. The Israeli requests are expected to be made to Undersecre.arv of State Lawrence S. Eagleburger in a series of meetings be- ginning today in Jerusalem. The Israelis are expected to tell Eagle- burger'that they are willing to reconsider their opposition to the Jordanian force in exchange for guarantees that it will not be used against Israel and agreements to renew U.S. support for development of Israel's ?Lavi fighter plane and to pre-po- sition equipment for American military forces in Israel. According to the sources, the Israelis want the administration to change its present arms-length position toward high- ly visible strategic cooperation and make a new start on joint ventures contemplated in the. U.S.-Israeli memorandum of under- standing that the United States dropped two years ago after Israel annexed the Golan Heights. The anticipated Israeli move comes dur- ing administration debate about Middle East policy that. reportedly has Secretary of State George P. Shultz advocating high- er-profile cooperation with Israel and De- fense Secretary Caspar W. Weinberger opposing the idea as potentially injurious to U.S. ties with Arab" governments. According to the' sources, the debate was given renewed urgency at an Oct. 18 meeting of the National Security Council, where Shultz proposed easing the chilly military relationship in effect. since Israel invaded Lebanon last year. Shultz reportedly argued that. closer cooperation could be valuable in counter- ing Syria's efforts to stir up trouble in Lebanon and in inducing greater Israeli flexibility?on wider Mideast issues.such as negotiations on. the West Bank and U.S. plans to equip and train a Jordanian force to help friendly Arab states 'counter at- 'tacks or internal insurgency. His Wan is known to have been onnosed . b ' Weinberger. who was backed by the -joint chiefs and CIA Director William i. Casey. They nortedly .argued t list lI new cooperation or increased aid to Israel would cause problems with the Arabs and inhibit efforts to -obtain greater Arab cooneration in resolvine the situation in Lebanon. The still unresolved debate is un- derstood to have taken on almost emotionally symbolic overtones for Israeli Prime Minister Yitzhak Sha- mir 's government. after the Oct. 23 bomb attack against U.S..Marines in Beirut. The United States rejected an Israeli offer to provide construc- tion equipment to help dig injured Marines from the rubble of their headquarters and to care for them at Israeli medical facilities. The sources said that Israeli De- fense Minister Moshe Arens was so offended by the spurning of his offer to help that he convinced his gov- ernment to use Eagleburger's visit, as a vehicle for trying to force the issue of U.S. intentions about, strategic cooperation. The sources said the Israelis in- tend to confront Eagleburger with a -variation on Shultz's idea that. such cooperation can lead to mutually beneficial trade-offs. Their principal bargaining chip involves U.S. hopes for the Jordanian force, a secrecy- cloaked project that became the sub- ject of great controversy last month following disclosure that Congress had authorized $220 million for it in a secret section of the 1984 defense authorization bill. . Last Friday, the Senate approved a resolution by Sen. Daniel Patrick Moynihan (D-N.Y.) that would bar spending on the plan unless it is openly approved by Congress. The White House has scheduled a meet- irig of congressional leaders today, reportedly to discuss ways of getting around the Moynihan amendment, but congressional sources said Con- gress is unlikely to go ahead with the project if Israel opposes it strongly. Until now, however, the Israelis have confined their criticism to rel- atively muted comments by anon- vinous officials. What they do next, the sources said, will depend to a large extent on the explanations they I get from Eagleburger and the quid pro quos the United States offers on' strategic cooperation. Arens, an aeronautical engineer' who helped design the Lavi, is known to be particularly eager for a! lifting of all restrictions on U.S. help' in its development. The Pentagon has been reluctant to do that on grounds that it means giving Israel access to secret U.S. technology. American aircraft manufacturers have been unenthusiastic about Is- rael having a fighter it can sell to other countries in competition with L.S. models. Last August. the administration did lift a number of restrictions, in- cluding a freeze on the export. of three U.S.-made technical systems required for the Lavi. But it still will not ail iw Israel to use U.S. foreign military sales credits to finance re- search and development on the plane. The Israelis reportedly want that barrier removed. Approved For Release 2005/11/28 : CIA-RDP91-00901 R000400060002-9 STAT Approved For Release 2005/11/28: CIA-RDP91-009q ARTICLE APPEARED ON PAGE WASHINGTON MONTHLY November 1983 "CIA Director William J. Casey',' read an October 7 UPI story, "was awarded the agency's highest medal for outstanding leadership yesterday during a surprise ceremony at the agency's Langley headquarters. A citation read by Deputy Director John McMahon said Casey was awarded the Distinguished Intelligence Medal for restoring the credibility of the CIA and bringing `imagination to our operations. We're confident that the decision to make this award was just as objective as USA Today's recent choice of Allen J. Neuharth as the interviewee to ask how well USA Today was -doing. He said he thought it was doing a perfectly dandy job. He happens to be head -of the Gannett Corporation, which happens to be-the owner of USA Today.... Approved For Release 2005/11/28 : CIA-RDP91-00901 R000400060002-9