TINKER, TINKER, TINKER

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP91-00901R000400060002-9
• Release Decision: RIPPUB
• Original Classification: K
• Document Page Count: 84
• Document Creation Date: December 19, 2016
• Document Release Date: October 18, 2005
• Sequence Number: 2
• Publication Date: November 28, 1983
• Content Type: NSPR

~ THE NEW REPUBLIC
ARTICLE APPEARE
D
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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
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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
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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-
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re-election campaign has not yet got-
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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
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,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
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 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.
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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
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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
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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.
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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
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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
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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.
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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 '
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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.
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 ARTICLE
ON PAGE
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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
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 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.
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 STAT
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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.
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 STAT
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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.
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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
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 STA
Unknown to Casey,
He Asserts in Letters
Concerns' Contracts
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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.
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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
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 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.
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 CT T
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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.
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 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,
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 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/
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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.
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 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
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 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.
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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-
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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
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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.
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 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
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 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.
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 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.
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 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.
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 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.
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 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....
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