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June 30, 1983
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Approved For Release 2005/11/28 : CIA-RDP91-00901R0 USA TODAY 30 June 1983 r: APPEARED 10400080001-8 ounow Agency oesn t e 4601" just keeps secrets TOPIC: THE CIA William Colby, 63, who was director of the CIA from 1973 to 1976, is the author of Honorable Men ? My Life in the CIA. He practices inter- national law and has joined the public debate on nuclear arms as an advocate of a freeze on nuclear weapons. Called - the CIA's priest," Colby was inter- viewed by .USA TO- DAY's Barbara Rey- nolds SWIM USA TODAY: Is it a policy of the CIA toile to the Ameri- can public as a recent con- gressional committee im- plied? COLBY: No. The CIA does protect some secrets that it is required to protect, but beyond that it does not actively lie to the people. USA TODAY: What types of things should be kept from the public? COLBY: We are sworn to Protect our sources. A law was passed about a year or so ago that said that anyone who con- kiously goes out to reveal our sources can be punished. I think that was a very good law. " USA TODAY: When are co- vert operations against other countries warranted? COLBY: If there is a country that is important to our country engaged in a conflict between a brutal dictator whom we don't like and a ruthless terror- ist who doesn't like us, there is a course of action other than choosing between those two. That is secretly helping some decent, moderate leadership to arise in the country, an alterna- tive to those extremes. Now, that is exactly what we did in the Philippines 41%4*F?' r USA TODAY: Are there William Colby times when the overthrow of a government is advisable? COLBY: I pretty well object- ed to that in most of the cases that I recall being involved in. I objected to the overthrow of President Ngo Dinh Diem in Vietnam. The value of covert political action is when you are building strength, not when you are trying to attack somebody else. USA TODAY: Are there other instances of the CIA's deciding to overthrow a gov- ernment? COLBY: One time the magi- dent of the United States told the director of the CIA to do anything he could to make sure that Mr. Salvador Allende was not ratified as president of Chile in 1970. For six weeks the CIA did what it could to accom- plish that and then stopped its program and had nothing to do with the coup three years later, which did overthrow Mr. Allen- de. USA ? TODAY: Didn't con- gressional investigations show that the CIA was direct- ly involved in that overthrow? COLBY: It was involved in . an attempt in 1970, which in- Oas% lanikelt1184Pairig-RDP9 . xene Schneider, com- mander-in-chief of the Mean army): There was a lot of other activity in 1970, which was stopped a very few months thereafter. It didn't go on for very long, and the subsequent coup was conducted by the Chilean military without the CIA involvement. USA TODAY: Congress has reported that the CIA helped plot the assassination of Bel- gian Congo leader Patrice Lu- mumba and conspired with the Mafia in an attempt to kill Fidel Castro. How large a role do assassinations play in CIA activities? COLBY: None, Under presi- dential directive, the CIA is specifically directed not to en- gage in assassination activities. The Senate committee that in- vestigated the CIA in 1975 for a - full year looked into every cor- ner of the CIA's activity. It con- cluded that no foreign leader had been assassinated by the CIA. That was not for lack of trying in Mr. Castro's case. They included a contact with the Mafia. It was stupid. The action of Mr. Lumumba's death came entirely without any CIA connection. This was stopped by the opposition of a CIA officer before the action ever got out of CIA channels. USA TODAY: What about I recent reports that President Reagan wanted to overthrow the government of Surinam and our involvement in coup attempts in Ghana? COLBY: I don't know any- thing about that. Charges occur all the time, partly because of the hysteria with which the subject was discussed here in America in 1975. USA TODAY: IS it neces- sary to hide CIA operations in ' the congressional budget? 1-00901 R000400080001 -8 -CO1V2'P,:r7r. Aparoved For RelitsLseenlig/HAR8RNppmlik9q8Ri R000 rl Tr LE APPEARED .:k 29 June 1983 PAGE___E----.Z 00080001-8 CIA-backed rebels scarcely en the Nicaraguan military machine Mr. Casey ?subsequently denied having ' predicted this, but the story seemed to reveal one line of thinking In Washington. Adminis- tration officials speak of the increased strength of the anti-Sandinista guerrillas, placing their total number at 8,000 in the northern, northeastern, and southern regions of the country. ? The largest rebel group, led in part by offi-' cers of the old Nicaraguan National Guard and known as the Nicaraguan Democratic Force, is said to number about 6,000. Some officials claim that the rebels operating in the southern part of the country, who are led by the renegade Sandinista Commander Eden Pastora Gnmez, now number about 2,000. An undetermined number of Miskito Indians are fighting in the northeast, along the Caribbean coast. ? But each of the three regions affected by the fighting is relatively lightly populated and 1 among the least important to the country in economic terms. .Because of his personal popularity, Eden Pastora's great hope had been to get . Sandinista troops and militiamen to defect to his side. But there is no evidence that they have done so in any significant numbers. In the drowsy capital of Managua, a city of new parks and old shantytowns, diplomats say that unless there are considerably heavier attacks and much greater disillusion- ment with the regime, the Sandinistas can probably survive the type of pressure they are now facing for years to come. ? ? Sources close to the contras predict that they will break out of the mountains and strike deeper inside the country in the coming months. But for the moment, the amazing thing is how normal much of Nicaragua seems. A drive northwest of more than 100 miles toward the Honduran border from Managua shows people in some of the country's most 1 Important towns and villages doing business 1 as usual Last year's drought and floods damaged the nation's economy much more than the contras have. A year ago at Nicaragua's main port of Corinth, 80 miles northwest of Managua, a two-motor plane carrying rockets attacked the gasoline tanks nekt to the port. The pilot, who presumably came from Honduras, missed the tanks by about SO yards, and his By Daniel Southerland Staff correspondent of ? The Christian Science Monitor Carrizales, Nicaragua , On the mountainous Nicaraguan border with Honduras, life is harsh. "We are short of food and water," says Cesar Augusto Romero, the barefoot No. 2 in the Nicara- guan militia in this small, dusty settlement. In its battle with guerrillas backed by Honduras and the United States Central Intelligence Agency, , Nicaragua is paying a severe price: Part of it comes in the diversion of scarce resources to this northern border region to support the fighters, and part is to be found in the suffering of thousands of displaced persons, such as Cesar, who have been driven from their homes by the border war. Nicaragua's Sandinista leaders acknowledge that more than 500 people, many of them 1 militiamen, have been killed in this year alone by the CIA-supported "counterrevolutionaries" ? or contras as they are known here. Displaced persons now number more than 40,000, evangelical church officials estimate. - But if one leaves aside the toll inflicted by the contras in human suffering, it is probably safe to say that the guerrillas have barely dented . Nicaragua's Sandinista-led military machine. The fighting against the contras has been done mostly by the local militias and by reserve battalions called up from other parts of the country. The professional soldiers of the Sandinistas' reg- ular, 22,000-man Army ? the men with the boots,1 good weapons, and lots of training ? have seen , some combat in the region. But most of them have! been held in reserve. Equally important, the vital economic heartland of Nicaragua, the swath of territory stretching along the west coast of the country from the city of Leen down to Granada, has hardly been touched by the contras' attacks. And that is the part of the coun- try where many of the people live and much of the cotton, corn, and sugar is grown. Some people in the Reagan administration seem to believe that more attacks, combined with unrest inside Nicaragua, Will?bring the collapSe of - the Sandinista regime. About five weeks ago, on May 22, administration and congressional officials told the New York Times that CIA Director William Casey and another senior of- ficial had predicted that the American-sup- ported Nicaraguan rebels had a good chance of overthrowing the Sandinista government by the end of the year. ,CONTINUED Approved For Release 2005/11/28 : CIA-RDP91-00901R000400080001-8 Approved For Release 2005/11/28 : CIA-RDP91-00901R0004 UNITED PRESS INTEPNATIONA 28 June 1983 0080001-8 WA SHINGTON Wright House Democratic leader Jim Wright and other congressmen attended a White House meeting Tuesday to "explore the possibilities" of achieving a bipartisan approach to Central American policy. Wright and several other Democratic and Republican congressmen were invited to discuss the possible creation of a bipartisan commission to rally more support behind President Reagan's policies. Reagan did not attend the meeting. The Texas Democrat said the administration was represented by White House chief of staff James Baker, CIA Director William Casey and Deputy Secretary of State Kenneth Dam. "They wanted to explore the possibilities of trying to achieve a bipartisan approach to Central America," the Texas Democrat told reporters. He said he told the White House officials "some Democrats (in Congress) really don't believe the administration wants to achieve peace." "I expressed that apprehension," Wright added, saying he told officials, "You've got to demonstrate you really want to achieve peace." The aim of such a bipartisan panel, Wright said, would be "to develop a mutual approach to legislative and executive positions" in Central America. "I think the general thrust of the conversation is that there is obviously a need for negotiation ... to open up a dialogue" with Central American rebels ta see if it is possible to arrange their participation in free elections, said Wright. He said he had no objection to Central American mediator Richard Stone talking to the Salvadoran insurgents. White House officials have acknowledged that recent polls show a decline in public support for Reagan's approach to the problems of Central America. Approved For Release 2005/11/28 : CIA-RDP91-00901R000400080001-8 Approved For ReleaspgriliTOMaiRDP91-00901R000400080001-8 y MAUREEN SANTINI, Associated Press Writer WASHINGTON Reagan-Briefing Book President Reagan's chief spokesman said Monday that a briefing book that Jimmy Carter's former aides delivered to the White House appears to be a "more sensitive" one than material Reagan aides used to prepare him for a 1980 campaign debate with Carter. Patrick Caddell, who was President Carter's pollster during the 1980 campaign, had the briefing book delivered to the White House at the request of deputy press secretary Larry Speakes. Meanwhile, Speakes reported that the White House counsel's office has received papers that were retrieved from "certain Reagan campaign officials' files." He said the material was sent to the Justice Department, which is looking into the matter. So far, no one has said how the Reagan campaign got hold of the Carter campaign's material. Speakes said that to facilitate comparison of the material forwarded to the Justice Department with the material provided by Caddell, it would all be made public "shortly," but apparently not before Tuesday. Several hours after the papers sent by Caddell arrived, Speakes issued a statement saying they were reviewed by White House Chief of Staff James A. Baker III and others who were involved in the campaign, but did not appear to be the. same material. Besides Baker, Budget Director David Stockman, and presidential aide David R. ? Geroen looked at the material, Speakes said, but did not have a chance to review it thoroughly. "In their view, their initial examination suggests that, while some of the policy issue briefing material has similarities to what they recall having seen during the campaign, it appears to be a more finished, more sensitive briefing book than they recall," Speakes said. "Further, the Carter briefing book includes strategic and tactical information that they specifically do not recall having seen: more focused debating points, recommended 'key lines' and 'first hand accounts,' questions to ask' in rebuttal, recommended 'challenges,' etc.," said Speakes. However, Speakes said that in a letter accompanying the material, Caddell said that everyone concerned agreed "that the enclosed materials are the only issue briefing materials prepared for and sent to President Carter for that debate." Earlier Monday, Reagan asked the Justice Department to pursue vigorously how Carter briefing material turned up in the Reagan campaign, and the Democratic Party chairman urged a special prosecutor be named. CaNTINUTO: Approved For Release 2005/11/28 : CIA-RDP91-00901R000400080001-8 Approved For Release 200?,gyi22uswwg),Fi00901R000400080001-8 -E.P1711.E. APPEARED T!? ? 27 June 1983 Casey, Who Can't- Remember, Berates Officials Who Read Lou Cannon 1111111111111MNIMONIMINIMMINIMMINIft REAcFA?)... Central Intelligence Agency. Directorl William J. Casey, whose memory ranges from weak to nonexistent on unauthorized disclosure- of President Carter's briefing -books to the .1980 Reagan- campaig0Si worried that fellow Reagaruites.are a. bunch... of blabbermouths . . -- ? Appearing before the senior, White. House staff last Tuesday. and. reading -a:, prepared lecture in a tone-described as"an'i admonishing mumble," Casey fretted about.. the difficulties of keeping classified infor- ? mation classified. 1. ? In the process, he gave several still-clas- ? sified examples of "unauthorized discld; sures" to staff members not normally au- thorized to receive classified information of I _ any kind_ ' Fortunately for the. security of the re- public, Casey's examples included such pre- viously rehashed events as the thwarted Libyan invasion of the Sudan, the world- publicized sending of arms to Afghan guer- rillas and the open secret that the United . States is assisting anti-government rebels , in Nicaragua. All of this was old hat. But some of the White House staff members were startled to hear Casey's report on care and feeding of the National Intelligence Daily, the coin- _ paratively low-level CIA analysis provided daily to 150 U.S. government officials. A legend on the cover of this document, known as NW, says it is to he returned the same day and not to be duplicated. _ According to Casey, a CIA check showed that more than 100 of the documents were not beim' turned, in and that some of those returned came complete with handy nota- tions instructing secretaries to copy them. One responsive official, asked to return his copy, supposedly gave back 75 photocopies. As it ? turns out, there_ are remedies to deal with such-carelessness. - Casey mentioned'a few of them, such as dismissal and. administering- lie-detector tests to employes.who engage in "unautho- rized disclosures...",, As- far: ats-*.known; he would make an; exception-for briefing ma- terial ---that4...mysteriously. aPpears on the desk or campaign chairmen just before a crucial debate;.' Two days later,',- when. asked to provide details of how the Carter briefing hook wound up- in the Reagan camp, Casey gave animpressive demonstration of what a CIA directqr might do if he became- a prisoner of wan- ?-? -?1 . Although he provided his name and rankVasey said he remembered nothing whateverabout a briefing book that White House ciiief of staff James A. Baker III re- . ? called Casey giving him. Casey's recollec- tion has not.improved subsequently. . Most Americans- would, of course, be genuinely concerned 1)3/f:disclosure of real- national-security secrets by those charged - with keeping them.. But somaia the White. House believe that national security in the Reagan administration would be served es- pecially- well by appointment of a CIA di- rector who starts with a greater presump- tion of credibility._ That. is not Casey's long suit, as a couple of jokes making the White House rounds last week- attest. One, attributable to Alan Abelson in Barron's,. said "CIA' really stood for "Casey Investing Agairi,"4 reference to the remarkable timeliness of the director's successful stock-market investments. The other, repeated on background and presumably not classified, was a tongue-in- ? cheek assurance that Casey could not have been the, recipient of the Carter briefing hook. "If Bill had received it," nne White House official said, "he would have placed it in a blind trust." STAT Approved For Release 2005/11/28 : CIA-RDP91-00901R000400080001-8 ar01123810,For Release 2005/11/28 ? CIA-RDP914I0901 ii-Erl? REPUBLIC rAGB 27 June 1983 WHITE HOUSE WATCH- ENDERS'S END THE REPLACEIYENT of Thomas Enders as the State Department's top policymaker for Latin America and of Deane Hinton as ambassador to El Salvador have been portrayed as Part of a move to "toughen" U.S. policy on Central America, as a power grab by the White House national security adviser, William Clark, at the expense of Secretary of State George Shultz, and as a triumph of hardliners such as U.N. Ambassador leane Kirkpatrick and C.I.A. Director William Casey -over "soft" foreign service careerists. Actually the -situation is both simpler than all that and more .complex. Personality differences - plaYed a big part in Enders's sacking. Hinton was riot sacked at all. The personnel changes were not the result of a change in overall policy toward Central America, but of a determination by Clark that policy was riot being effective- ly implemented. Clark has not executed a Kissinger-style powei play, though; on the contrary, Enders was ousted as part of a plan to shift operational control of Central America policy from the White House back to State. And at State, the new Assistant Secretary for Latin America, Langhorne Motley, and the new ambassador in San Salva- dor, Tnomas Pickering, are not noticeably harder-line on policy than Enders and Hinton were. State's original choice for the ambassador's job, iohn Negroponte, a ca- reer diplomat who is currently ambassador to Honduras, actually was rejected by the White House as having too hardline a reputation in Congress. NEVERTHELESS, the Administration's policy is in- exorably becoming "tougher" as the military situa- tion in El Salvador deteriorates and that in Nicaragua im- proves. At least in the -short run, the new personnel changes will do nothing to alter the general drift toward. military solutions. Clark, instinctively hardline, has not stolen power, but he has demonstrated that he has .it. Shulm, more of a moderate, .has yetto showthat he can get it back. Clark's fellow hardliners, including Kirkpatrick, had lostsome major policy fights to Enders,- but in the end they won his scalp, and tha tenhances their influence. One of these days?after the 1984 election, if it can be put off until then?there rriay be a decisive struggle dyer Central America within the Administration, probably over wheth- er or not to send U.S. combat troops or large numbers of advisers to the region?to win it or stay out. At the mo- ment, its likely that debate will continue over how best to win while staying out and how best to handle domestic opponents of Administration policyby conciliation and persuasion or by threat and confrontation. R000400080001-8 Thomas Enders's ?a-. 4./9-PG1 ICI IL caw enemies among Democrats on Capitol Hill find it laugh- able that he should be cast now as some kind of dove. Ten years ago, as No. 2 man in the U.S. embassy in Phnom Penh, Enders selected targets for secret U.S. bombing raids in Cambodia, earning the respectful notice of Alex- ander Haig, then chief of staff to President Nixon. As Ronald Reagan's first Secretary of State, Haig intended to pursue a high-tension polic-y againstLatin American Com- munists, and he selected Enders to help carry out his aims even though Enders had no prior Latin experience. (He has since become fluent in Spanish, no mean feat while working sixteen-hour days as a policy manager.) Haig originally wanted a direct confrontation with Cuba, the "source" of :trouble in Central America, but the Adminis- tration instead chose quieter options?covert aid to anti- government guerrillas in Nicaragua arid stepped-up mili- tary aid to the government of El Salvador. Enders supported both?and also backed a process of negotiation with leftists and pressure for human rights reform in El Salvador to an extent that aroused suspicion among the Administration's hardest liners. Enders's personal and management style did not en- dear him to his adversaries. He is an imperious, icy man who at six foot-eight acts as though he is used to looking down at other people. One State Department official said, "If Enders had done the same things he did, but had the personality of George Shu2=, he'd still be here. The Rea- ganites like to sit around comfortably arid talk about things. You can't do that with Enders present." .Enders also is described as "extremely turf conscious," unwilling or unable to delegate authority, arid disrespectful of other people's prerogatives. "The White House felt that Enders, not Shultz, was running Latin American policy," one aide said. "Enders really clicin't report to anybody." When C.I.A. Director Casey wanted State to release new data on Communist supply lines to El Salvador, Enders sat on the information and deprecated it as "warmed-over -left- overs." He got it into his head that Spanish Prime Minister Felipe Gonzales could be brought into Central America diplomacy and flew off to see him without consulting anyone, leading the White House to decree that hence- forth no one travels without permission. From the standpoint of Enders's friends at State and 'elsewhere, the issues over which he was ousted transcend -style and concern methods of implementing policy. They say he wanted to conduct it as quietly as possible, so as riot to arouse public and congressional opposition, whereas :others,- including Ambassador Kirkpatrick, wanted to cryst-alli.7e issues arid confront and defeat the opposition. Approved For Release 2005/11/28 : CIA-RDP91-00901R000400080001-8 Approved For RelRiiNM&kLiA1441509tAL:94 Casey's advantage J. Casey has an ad- vantage over the average investor ''hose information generally is limited to news reports and whatever tidbits a brokerage firm inay care to pass along. As director af the Central Intelligence Agency, Casey has access to secret data about blobal economics trends that OuId be worth a fortune in deciding ''hat securities and commodities to Ivy and sell. P Nobody has accused Casey of us- nag his inside knowledge in the pur- ihaie and sale last year of stocks ivorth millions of dollars: Nor has be been accused of letting his in - Vestments influence his official decisions as the nation's chief loreigi intelligence officer. But the mere fact that he refuses to place his investments in a blind tfust can make him the object of suspicion and undermine his credilility. Last year, for example, Casey purchased substantial amounts of stock in concerns that nave foreign subsidiaries in nations that are targets of current and Potential CIA activity. Casey's investments first became an embarrassment to the Reagan administration when it was disclos- ed that he sold more than $600,000 Forth of oil stocks in 1981. That is tjae year oil prices plunged due to an eilglut. Casey was one of the few of- ficials to see CIA estimates of global oil prochicron and sales. In an attempt to alleviate ciriticism, Deputy CIA Director John McMahon and CIA General COunsel Stanley SPorkin began reviewing Casey's investments. THey are supposed to suggest that he disqualify himself from any CIA decision that could affect his fienn- , cial holdings This is hardly reassuring. Casey is under no obligation to accept the -advice of his top aides and they should not have to spend their time ? keeping track of his investments. ? Moreover, the director of the CIA should not have to refrain from tak- ing part in agency decisions that President Reagan appointed him to make. Other government officials realize they should avoid even the appearance of impropriety-as well as the temptation to use public of- ? fice for private gain. - Casey's two immediate predecessors at the CIA, Stanfield Turner and George Bush, placed their investments in blind trusts managed by financial advisers without their clients' knowledge. SO have Mr. Reagan and a number of Cabinet members with influence over economic policy. Casey ought to follow their pro- dent example. Approved For Release 2005/11/28 : Cat-RDP91-00901R000400080001-8 Approved For Release 2005/11/28 : CIA-RDP91-0090 AAT I CUE al root BA LTIM CR E SUN 24 June 1983 1R000400080001-8 Excerpts from Reagan campaign aides on Carter material Washington Bureau 01 The Sun Following are excerpts from let- ters sent in response to queries on how the 1980 Reagan campaign ob- tained Carter campaign briefing ma- terial. From James A. Baker - "In 1980:sometimeafter theRea- ?gan-Anderson debate and before the Reagan-Carter debate, I do remem- ber briefly seeing a iarge looseleaf bound book ... that Was thought to have been given to the Reagan camp by someone with the Carter cam- paign. But I do not believe this was strategic material. It is my best rec- ollection that I was given the book by William Casey, with the suggestion that it might be of use to the Debate . _ Briefing Team. I should note, how- ever, that I have recently checked this recollection with him, and while he has not contested my recollection, he has no such recollection of his own. It is my further recollection that after briefly thumbing through the binder. I passed it on to the De- bate Briefing Team, headed by Da- vid Gergen and Frank Hodsoll." ?o? From William J. Casey: "I have no recollection that I ever received, heard of or learned in any other way of a set of papers which laid out the Carter debate plan or the points which President Carter had planned to make as described in Mr. Barrett's account. "Upon receiving your letter I checked with my secretary during ' ____ ? the campaign, two of my special assistants and five of the deputy campaign directors and none of them have any knowledge. that the campaign ever received or had any pape or information resembling that described by Mr. Barrett." ?0? From"David R ?Gergen: ? "1 do not recall 'ever receiving or seeing a ''Carter debate book' or any other notebook from the Carter cam- paign ..... . "It is possible that I did see some pages of 'Carter material' for a brief period, but I do not recall it. "I do recall hearing that some material from the Carter campaign was present in the Reagan cam- paign. To the best of my recollection, the material was not described to me as important or dramatic . .." ?o? From David A. Stockman: "My recollection of the 'docu- ment' referred to in Mr. Barrett's book begins with a package of ma- terial that was delivered to my of- fice ... from the Reagan campaign committee... I believe this was Oc- tober 23, 1980. "... The documents dealt entirely with policy issues ... and contained standard arguments in support of Carter Administration .initiatives and policies. "Due to the advocacy character of these issue briefs it was apparent to me at the time that they had in some way come from the Carter campaign. Approved For Release 2005/11/28 : CIA-RDP91-00901R000400080001-8 Approved For Release Utgil51k2ValSRCIT-9,10MCON134??? 22 June 1983 JAY HARRIS The CIA' Today... THE SPY BUSINESS has been around as long as there have been people and govern- ments who do not trust one another. Which has been since the beginning of time. That -keeping tabs" on one's enemies,- if not friends, has been an:accepted wayof conducting "foreign as well as 'domestic affairs few ?vildis- pute. But, how it is done is another matter. . .To Cel. Vincent Locithart,Rkt., and a vet;?? .eran of more thari-50 years service in the Na- tional Guard and Ann), Reserve, along with ac- tive duty in three wars, the business of having one of the best intelligencesystemS in the world is the business of survival.' - - In- fact: the colonel, who spent 19 'years with I the Central Intelligence Agency, argues such a,' System is one of the nation's highest priorities:, I 7 THAT WAS part-of a message the durrenttl Paso soldier-writer. left in Lubbock thit week -in a talk to South Plains Shriners and to us. Col. Lockhart, a former Texas newsman, is aware that the CIA; along with-the FBI and any- thing else tharalevegaits of "spying"-are all high on the target list of the liberal media aswell as some politicians and do-gooders. . Yet, he argues that of six major things nec.,. -essary for this nation's survival, to have "the finest intelligence system in the world" ranks at the top. The CIA is working for America, not against it. he argues in answer to those who ac- cuse the agency of everything from spreading dissension-to death. . . -.As a matter of fact, I will simply tell you that the CIA has never assassinated anyone. and most of the charges against the CIA have , not had nor now have any basis in' fact," rthe colonel says when asked about such charges. The CIA has made some mistakes, some big- gies. he readily admits, but is not guilty of most . of the things of:which it is accused, he says., . THOSE. AREN'T. the onlY misconcepcioni, about thP. CIA, Lockhart says_ .: ?..., In the first place. the CIA hasn't been around since the days of Mata Hari. "Few people real- ize Lockhart says, "but the National De- fense Act of 1947. which created the joint Chiefs of Staff concept. also created the CIA." "Everyone says that it was started to pre- vent another Pearl Harbor, but Pearl Harbor had nothing to do with it," Lockhart says. ? ? The nation was well into World War II .when FDR felt he needed some sort of intelligence setup on a worldwide basis which could central- ize the vast amount of data pouring into Wash- ington. He called on Wild Bill Donovan to set up the Office of Strategic Services, OSS. which played a key role in some phases of WWII. After the war. the Central Intelligence Group was formed by Executive Order, more as a caretaker for records of the OSS than anything else .But, then Pr?dent Truman accepted ad- vice to expand the agency's role and pushed the CIA as part of the defense legislation, Lockhart says. HST persuaded Allen Dillies, who had worked with the OSS, to get the whole thing un- derway. It was in the early stages of the CIA in the 1950's that Col. Lockhart, after a stint as , publisher of The Canadian Record. and study at rthe Staff and Command School, became in- volv.e;d with the agency in?a tap-level position.- -? .,??. ? LOCKHART SAYS the CIA has been blamed ? for, and given credit for Many things' it should not have been. ? Among :its . early ?notable- successes,'" -he cites as 1953 when the CIA "stiffened the.back- bone of the Iranian Army and helped the Shah of Iran regain his thrOne against Mossadegh:" The other had to do with aiding in the defeat of the Communist regime which -sought to takeover Guatemala in 1954. But. despite the fact thatthe CIA was doing a -good. solid job .athome and.abroad in taking in- formation and 'making it into solid- intelligence, the organization soon got in over 'tits 'head and capabilities, Lockhart admits-. ? ? "The Bay of Pigswasthe first great disaster for -the agency,!"?.Lockhart Says. It ? failed, .he says, because 1. Such an operation was beyond the capability of the CIA, 2. Political 'reasons caused a change in plans, and 3. JFK withdrew critical U.S. air support at the last minute. The Vietnam War'wat another 'dagger in the side of CIA," 'Lockhart ? says. Again the agency was called on to do things past-its cana- 1 bility,. "and when the unpopular war ended, the ( anti-war groups turned their vindictive -crit- icism' against both the.CIA and the FBI." . WATERGATE, WITH the 'involvement of a ',former CIA agent, and the baying of the liberal media only added to the CIA's problems. In the wake Of what Lockhart calls a "witch hunt" ,by pongress, "grossly exaggerated charges were Made in the media." Those charges induded the claiint'that the CIA was guilty of massive domestic spying; had assassi- nated foreign leaders, and possibly even Presi- dent Kennedy." The CIA has even been torthe death of Marilyn Monroe. But, Lockhart says that "the most damaging 'assaults on the CIA have been by a handful of .former employes, mostly in the name of the peoples' right to know." And while he thinks the .government must answer to the people, Lock- 'hart argues "no intelligence system can operate lin full view of theworld. The KGB doesn't!" Lockhart says that Adm. Stansfield Turner did more to "emasculate" the CIA as its direc- tor under President Carter than anyone before or since. But, under William Casey, he says =things are looking up. "I believe the CIA will return as a top-flight organization," he says, "But I am just as sure it will never return to the glorious days of ti6-liac-r fifties and early sixties. Perhaps it .is jtrtt' ' 1.. Well..." Approved For Release 2005/11/28 : CIA-RDP91-00901R000400080001-8 Approved For Release 2095/11/28 : 0080001-8 STAT .1\io One of' th learagnallS e plaintiffs. a Nicaraguan health official named Dr. Mynra Cunning- ham. came to New York City last week to publicize the case and meet with lawyers ' at the Center for Constitutional Rights, a New York-based public interest law firm: She is regional health director for the province of Zelaya. sue to stop u ? -ii-Ts achy" 4:By Susan-.3affe Spec 44SegmiiNicataguaniti- zens,?./contendinkthe Llnited States )xe- ?sporialblelonsurtigoverninentiguerrilla-it- lacksitn their country,:-ere4suing top Rea- gan Administration officials.gisking -million eacheindamages. According to legal papers flied in feder- al district court in Washington in Decem- ber, the Nicaraguans represent various other citizens who "have been murdered, - mutilated.o.kidnaped and/or raped as the re:sult of US-sponsored paramilitary ae- ' tivities' [which] violate fundamental principles of human rights established un- der international 4law --and the Constitu- , -lion of the :United -Stateii.7 4n._atidition .,112 nn Icompensatory and :punitive i:clairisigesplaintiffs :seek a:court it;lorder,prelqdtb*FSAnterferrObetri - 7. ? I.'. ? ? -..ttgr?? - . 't.the suitarealegi.VIonaldDelkunSID-CallL) isind twoRdiarrdsicients-whoelairn Flor- ?iicia's ;paramilitary -training zeampalor *icaraguanveheis vioiate local laws. ? 'The Atiefendants include Secretary -of Sta ' Feasey, - - ense :Secretary .'Caspar Wein- terger anti ieaciers ot several mciied-Nicara- Lg;uan paramilitary ...roily& ? , , Last week,. the US Justicepepartmerxt k.responded,lo the a/gee "lvy asking 'US ;District.Aldge.lioward.Corcoran,in Wash- ington to 'dimples the complaint -A Justice ?Department spokesman, :asked fat,commentcalleclAt linappropri- -ate- for government defendants to be sued. -The President has a right to con- duct foreign affairs," he said. SF: zrz .? The unusual lawsuit is based on the Alien Tort Claims Act of 1789, which per - mils foreigners to sue in US courts for vio- .*.latiorts of_Anternational law -banning ex- ecution ,and ?torture. -The ,comept -that such actsviolateinternationalprinci-.;: p1es of1:mm9.n...rights was affInned in the Nuremberg trisls after World Ayar.31., Approved For Release 2005/11/28 : CIA-RDP91-00901R000400080001-8 nrepM45rIlTe lease %0g/ ,ICR1-700901R000400 80001-8 ozir 20 J un e 1983 Pardon Me, But Am I That 'Hard-Liner' the Anonymous Sources .Are Talking About? Time wat, I believed a leak was the unau- thorized disclosure of confidential information - ,Jeane Kirkpatrick about actual events?such as, 'for example, . conversations within the -executive _branch. That, was before I understood ?thata leak- is the weapon of choice in Wasttingtan'S unend- ing internal warsitleally stiitect*spreadini disinformation about fictive events....-7 Undocumented allegations and anonymous, sources -link-private ambitions to public:policy: in .labyrinthine webs of personal and'political relations. Two or three well-placed -"sources" working with two or three well-placed journal- ists can create an issue, shape an interpreta- tion, build, or destroy a reputation. From the perspective of political science, it is fascinats int. From the perspective of public office, it is frustrating beyond belief. How do you correct. the record when th'e discussions are all confidential? My interest is "In my memorandum to the president . . _I took a very hard line' on hunger, malnutrition, infant mortality, illiteracy, economic underdevelopment.-" more than academic or personal. The paper triangle that links symbiotically anonymous and interested burealacratS and 'politicians with dependent journalists is as much a :threat to an informed, public as the "iron triangle" of bureaucrats, politicians and the "Interests" is - to honest government. During the past month or two, much of the US. national media have relied on undocu- mented leaks and unidentified sources to con- struct a political melodrama in which some bad guys?the "hard-liners"?are pitted a.;:aint some good guys?the "moderates"? in -a contest tor control. df U.S. policy toward ? :El Salvador and th6Central :American region: -:According to this-scetlario, the good guys sup- -Port political solutioria;megotiationS,,regionali dialogoeArpartisaraconsenstre!, and are -deeply coneerited -about'underlying economic .and sOcial'PrOfilemermllard-liners," we are told, ,oppose these goid things;-'they advocate mili? tary solutions, and are dead set against ne- gotiations,- regional dialogue .and bipartisan consensus-building. Hard-liners prefer Toliti- :cal polarization... ? In the current s.cenario, hard-liners are Ire- quent thoug.h sometimes they are called Casey, Weinberger, 'Stone or; even. Reagan. Their principal ac- tivity is giving bad advice to the president. ? --Because 'my name, is also Kirkpatrick and I hold almost none of the -views -attributed to .that Kirkpatrick. I desire to clarify just what kind of advice I have given in the weeks after the president asked me to visit-Central Amer- ica. I MiderstErnd that it iS not considered sporting to introckice into these Washington games verifiable facts or. on-the-record state- ments of participants; but, then, I am not a thoroughly seasoned player and have not lost the predilections of my' regular profession. Obviously. I sneak only for myself. I.:have j not been present in most of the conversations of other participants.- However, since I have often been cast by '"sources" as the "hardest" and "most militant" of the hard-liners, my role seems relevant -to the -whole- dramatic production, and the fact that my -actual views -and recommendations bear almost no relation to those attributed to me undermines, should suppose, the credibility of this melo- drama. Interested persons might want to know that instead of opposing attention to economic and humanitarian dimensions of Central Amer- lea's problems. bipartisan participation in policy-making, the Contadora process and the broadest possible participation in Salvador's election's, I have consistently made oppasite- recommendations. I have advocated greatly expanded humanitarian and economic assist- ance; bipartisan participation in formulating a new policy; unambiguous support for the Con- tedora process and regional dialogue: and maximum efforts to secure the broadest pvsi- , ble participation-in Salvador's elections. In my memorandum -to the Pfesident .on re- turning from Central America 1 took- a very Thard line" -on hunger, malnutrition, infant mortality, illiteracy, -economic- Underdevelop- ment, rougress" I wrote, "has -not provided the resources or-support needed in ''part. at least, 'because We have not worked with them to de- velop a bold, imaginative program which goes beyond preventing Communist victory in the very short run, to produce for the chronically deprived people of the area the reality of pre- sent progress and the promise of more to come." cited Congressman Mike Barnes' pro- posed "one-percent solution" to the region's problems (using one percent of the requested defense budget to finance an adequate eco- nomic effort). Iyecommended For inclusion in the speech to the joint session a program "so beneficial to the: terribly poor. mainouris;hed people of the region that the American people will be proud to support it . ." and also recommended the establishment of "a na- tional bipartisan commission [which would! examine how we should apply our talent and resources to foster health, growth, security and democracy among our neighbors in Cen- tral America and the Caribbean...." I further explained to, the president that this was an approach I had discussed with Sen. Jackson and other Democrats. Though current mythology suggests other- Wise. new broad, bipartisan initiatives were re- sisted by the "good guys" themselves. So were efforts by the governments of Central Amer- ica and thetontadora Four to get- under way a process. of negotiations for Latins only. President Herrera- Campins last week de- scribed to the Venezuelan press the message he asked me to deliver to President Reagan: '!Don't let your government torpedo our con- ference." r . CaKirtZTUED Approved For Release 2005/11/28 : CIA-RDP91-00901R000400080001-8 STAT LRTI CIS alb- trua-ri For Release 2005N1/2?1?tiA-RDP91-00901R000400080001-8 FAGE '17 June 19'33 14 CAMPAIGN TALK Trashing the Palace Guard President Reagtin.was said to be highly amused by the Incident, but his chief:aides are steaming. Veteran cam- paign strategIst F. Clifton White (he ran Barry Goldwa- ter's 1964 presidential campaign) asked to meet alone with the president recently and was granted an audience ? but with a couple of Reagan aides, including Deputy Chief of Staff Michael Deaver, in attendance. White had been warned beforehand not to discuss the 1984 campaign, but once he got Reagan's ear, began to trash everybody in sight, including Deaver. White told Reagan that Deaver.was using his.White House eposition to build? gip clients for a political con- sulting business and that Chief of Staff James Baker was an inept strategist iden- tified with the losing cam- paigns of Gerald Ford in 1976, George Bush in 1980 and Republicans generally in the 1982 elections. The only kind words from White were for the more conservative Reagan aides: Edwin Meese, Wil- liam Clark and CIA direc- tor William Casey. Deaver lectured White after the meeting, but White's tirade apparently didn't bother Reagan: According to Republican sources outside the White House who've heard it, he's been retelling the story with relish in recent days. up DEAVER: Didn't take kindly to strategist's flak. , Approved For Release 2005/11/28 : CIA-RDP91-00901R000400080001-8 ARTICLE APP7ApEoved For Release GA9f4g)P91-00901 Roo 400080001-8 ON PAGE /9---/ ? 124 June 1983 ? the Contras.. But ine Official spoke cif U.S. Officials Say An the problems as well: "More tension on ? the Nicaraguan-Honduran border, den- Are Growing Stronger by the By LESLIE H. GELB sPedal WM, New Yarlerimes WASHINGTON, June 13? Adrainiaa Panama, Mexico, Colombia and 1.rine- tration officials say that the number of guerrillas fighting the Nicaraguan Gov- ernment has increased by about one- third to 8,000 in the last two months and 61/Al D? ger of spreading conflict, less control by er' jf us, and therefore less ability to trade peace it Nicaragua for peace in Salva- ? dor, should we ever choose to retake such a deal." zuela ? that has been working to find a negotiated settlement of Central American strife.. - - ?? But at least one key Administration 2,000 Reported in Pastore Group The Pastora group, known as the Democratic Revolutionary operates in southern Nicaragua with bases in Costa Rica. It has swelled at the most rapid rate, increasing from 500 that the rebels have enough support in- ? official directiy, and another indirectly to 1,000 to ahnost2,000 in three months. side the country now to continue fight- -questioned whether Washington-was A second group, known as the Nicara- ingsvithout United States backhig. . ? 'now in a position to deliver the Contras guan Democratic Force, is led mostly ? intelligence estinsates worked on by Inauch an arrangement- by former officers of the National on1,1 from several departments:a, - "We could not call them off even if we Guard of -Anastasio Somoza Debayle, (MU wanted " nn effiCial vni,i "flier who was overthrown by the Sandinista, . .This group operates in northern Nicara- gua with bases in Honduras. Its force now stands at 6,000, up by 1,000 in the ;last two months. , i agencies Predict 'that- -the larces'''''1" caseratiVes 'in the field tell us that Nice- grow larger and that in six months they , raguana are Nat joining up, lint that will control almost one-third of the we're recruiting them population in rural areas and more than The officials also said there was in.. half of Nicaragua's 57,143 square miles -cieasing risk that the size and capabil- ' ? ' Miskito Indians are said to contribute ,of territory, othasais said. It could not jaity of the Contras in the north might about 1,000 rebels to each group's total. be determined whetherthese were for- rSpark direct conflict between Nicara- The intelligence officials said it was ! mal estimates that had been presented t -gm and Honduras, although all of the their understanding that most of the -officials were quick to add that they did 8,000 guerrillas were in Nicaragua. One to President Reagan. official said this meant about two- ' not fear this outcome. 25,04ifiNicaraguan Soldiers ? The Sandinists have complained in thirds. The offiriala did not specify the -recent days of stepped up fighting on $4er amount of territory now under the con- ibis.ethfront and of direct involvement by dillion in Direct Support _ trol of the anti-Sandinist forces, except Hondnran Army. Foreign IdiaLster Mr. Reagan said United States sup- Miguel d Escoto Brockman told a pub- to say that it was a greater amount in itu m ? in managua nn Friday that port for the Contras began in March the south than the north. 1981 with the avowed purpose of inter- The- "thissituation that threatens to be- so-called Contras ? those oP?? come a war, an armed confrontation be- dicting arms moving from Nicaragua to posed to the Sandinist Government in :tween Honduras and Nicaragua." El Salvador. He broadened these opera- s in N ovember 198. 1 to supporting . Managua are already' larger and bet- asked about this today, an Adminis- ? and conducting "p and ter-armed than the 6,000 leftist guerril- -tration official said Washington was olitical paramdanratt las in El Salvador. The Nicaraguan 'aware of some step-up " in the 'light- .coaaTupply hues-T.M4tcaragust_ and ? military consists of a 25,000-man army, lug-officials? visited elsewhere in Central America. The - Honduran recently plus about 50,000 militia members. ? - United States has spent about $40 mil- Administration officials said in inter- -spoke of the -Washington to ask for more an and hen in direct support of the Contras. - need for outside combat views that they did not believe that the *support in the event of -open hostilities About six months ago, when the Con- Contras would be able to overthrow the?...with Nicaragua. Administration offi- tra forces were less than half their Sandinist Government in the foresee- asais have maintained that Mr. Reagan i present size. and beginning to set up able future. "The Sandinists have the :would. meet United. States commit- ? bases inside Nicaragua, a number of political apparatus to maintain control ? ments under the Rio Treaty of 1947 to legislators became concerned that the of the population centers even with a help defend a nation underattack. shrinking economy-and pre-glee:IMO the countryside," oneofficial said. It was reported several weeks ago that William ?T. Casey, Director of Ceti- /nal Intelligence, told members of Con- gress that the Nicaraguan rebels had a goad (+lance of overthrowing the-San- - dinists by the end of the year. Mr.-Casey subsequently denied having said this. Cin April 78, Mr. Reagan told *a joint Administration aim had gone beyond interdiction of supplies and evolved into ' ' Aid From Other Governments ? efforts to overthrow the Sandinists. : The Administration officials also said ' a The Administration denied any such 1 1. that the Contras were receiving mill- intent. But Congress has moved toward tary and economic aid from sources be- exercising greater 'oversight of the 1 sides the United States. This aid is said operations. The House Foreign Affairs ! to be coming from several Central and Committee voted to terminate funds for- Latin American governments and from the covert military onerations, but the private sources. - - - Senate is not likelyao follow suit. Eden pastora Gomez, a former San- Over a year ago, the C.I.A. reported , to Congressional intelligence commit-, i tees that the anti-Government forces in' i 'Nicaragua totaled a little over 1,000. By' last December, the estimate was 4,000, and the intelligence committees de- manded a monthly summary of the . i operations. ; dunst commander and now a Contra session of Congress: "We should not?,leader, spent a few months in Mexico in and we will not ? protect the Nicara- early 1982 after leaving Nicaragua, and guan Government from the anger of its according to intelligence officials, pri- own people. But we should, through at. vete sources in Mexico have been plomacy, offer an alternative." , providing him with "travel funds." This The alternative, according to Admin- was confirmed by an ass?clate of fyrit'? . istration officials, has been for Nicara- Pastore in Mexico City.from these non-Washington gua to cease support of the Salvadoran sources is described as not being large. rebels in return for Washington's call- Administration officials were mostly ing off the guerrillas in Nicaragua. The pleased .with_the _policy of _sapporting -officials said this has also been-the aim of the so-called Anintiveriercep Re ase 2005/11/28 : CIA-RDP91-00901R000400080001-8 ARTICLE AP ON PAG . RICHMOND TIS?DISPATCH Approved For Release 2005/131128Tw111A1010991-00901R00040 EARED 080001-8 :Nicaraguan revolt grows From wire dispatches U.S. administration officials said yesterday that the number of guerril- las fighting the Nicaraguan govern- ment has increased by about one- third to 8,000 in the last two months and that they have enough support in the country to continue fighting with- out U.S. backing. Intelligence estimates worked on by analysts from several depart- ments and agencies predict-that the farces will grow larger and that in six months they will controtalmost one- third of the population in rural areas and more than half of the nation's 57,143 square miles, officials said. It could not be determined whether these were formal estimates that had been presented to President Reagan. The officials did not specify the amount of territory now under the control of the anti-Sandinist forces, except to say that there was a greater amount in the south than the north. The so-called Contras are already more numerous and better armed than the 6,000 guerrillas in El Salva- dor. The Nicaraguan military con- sists of a 25,000-man army, plus about 50,000 militia members. Administra- tion officials said they did not believe that the. Contras would be able to overthrow the government in the foreseeable future. "The Sandinists have the political apparatus to maintain control of the population centers even with a shrinking ? economy and pressure from the countryside," one said. It was reported several weeks ago that William J. Casey, three tar of cen- tral intelligence, told members of Congress that the rebels had a good chance of overthrowing the Sandin- ists by the end of the yearaHe denied having said this. Meanwhile, Reagan left open the , possibility that his special envoy to Central - America -might meet with representatives of the guerrillas in San Salvador, a White House spokes- man and a congressman said. The subject came up as Reagan met with 'members of the Foreign -1 Operations subcommittee of the House Appropriations Committee. - Rep. Clarence D. Long:DM& the chairman, said the guerrillas had ex- pressed to him an interest in holding ? such a meeting and that he relayed this interest to Reagan, who made no specific comment. But Larry Speakes, deputy press secretary, said the proposed meeting would be discussed with envoy Rich- ard Stone when he returns today from a trip to Central America and his recommendation would be followed. Long said Reagan indicated sup- port for a two-track approach to a solution in El Salvador: negotiations intended to lead to elections plus con- tinued - -financial support for the military. , "We were assured we now have a two-track approach," Long said. Support for such an approach could indicate a shift in administration poli- cy. The departure of Thomas O. En- ders as assistant secretary of state for Latin affairs and the removal of Deane Hinton as ambassador in San Salvador were reported to have sternmed from their advocacy of such a policy. But Speakes said, "The president's position remains the same. We've al- ways favored dialogue leading to elections" as well as support for the military. ? Stone, winding up a 10-nation tour, met in Mexico City with Foreign Min- ister Bemardo Sepulveda Amor to review differences about area conflicts. Stone began his tour June 3 in El Salvador. He also -visited Panama, Colombia, Venezuela, Costa Rica, Honduras, Nicaragua, Guatemala and Belize. Meanwhile, a Nicaraguan rebel ra- dio station in Honduras said the army has launched a major counteroffen- sive in the northern mountains. ? The Sandinists confirmed that heavy fighting continued near the Honduran border, especially near Ja- lapa, about 120 miles from Managua. In another development, a Hondu- ran army spokesman said that about 100 members of the U.S. Special Forces will arrive today to staff a center that will be-used to train Sal- vadoran troops. Col. Cesar Elvir Sierra said the Green Berets would arrive by ship at Puerto Castilla, where the center will be established on an isolated stretch of Caribbean coast about 150 miles northeast of Tegucigalpa. Approved For Release 2005/11/28 : CIA-RDP91-00901R000400080001-8 Approved For Release 2008MT/EP CIA-RDP91-00901R 00400080001-8 ? 13 June 1983 gy Christopher Hanson WASHINGTON Hawke Australian Prime Minister Robert Hawke said today he had established a wirm' personal relationship with President Reagan but had also aired differences on several military and economic issues. . Hawke met with Reagan and other senior officials for two hours at the White House and later told reporters, "We now have a firm and warm personal relationship." But he said he had also expressed Australia's concern over possible American subsidizing of farm products that he said might harm the Australian economy. "I flagged very strongly to the president our concern about this matter," he said. On military matters, Hawke said he had told Defense Secretary Caspar Weinberger that he could see no reason for Washington to bar the transfer of certain sensitive military technology to Australia. He said he could see why a nation such as Japan -- a potential competitor in this area -- might be excluded but said Australia was not in the same category. Hawke said he had received assurances from CIA Director William Casey that, contrary to published reports, the CIA had never secretly interfered in Australian politics. He said he had also been assured there would be no interruption in Washington's sharing with Australia of pertinent intelligence, despite a recent leak to an Australian newspaper of classified documents containing information provided by the CIA. Hawke's government obtained a court injunction to prevent publication of the documents, which were reported to have contained evidence supporting allegations that U.S. intelligence was not sharing information with Australia. Hawke said he had asked Weinberger to consider allowing an Australian military liaison officer to be based in Washington to monitor the sharing of intelligence. EXC.ERPTEC Approved For Release 2005/11/28 : CIA-RDP91-00901R000400080001-8 Approved For Release 2005/11/28 : CIA-RDP91-00901R000 .UNITED PRESS INTILITATIONAL 13 June 1983 'Hawke seeks secret sharing ly JIM ANDERSON WASHINGTON Fla WKE 00080001-8 Australian Prime -Minister Robert Hawke said Monday the U.S. government has agreed to studypis proposal for a peTanent.liaion office in Washington that would give Austr4liaw more information about any U.S: miltiary alerts. The agreement to study a closer military relationship is not a commitment by the United States to accept such an arrangement, he said. Hawke, at the end of the first full day of meetings with American officials, said the main purpose "was to establish a personal relationship" with President Reagan. "We took that opportunity and as a result of our meeting we now have 'a warm and firm personal relationship," he said. Hawke told a news conference at the Australian embassy that, in his meeting with Reagan and Secretary of Defense Caspar Weinberger, he reaffirmed his Labor government's commitment to the ANZUS defense alliance. He saihe suggested the alliance partners -- Australia, New Zealand-and the United States -- perhaps should define more specifically the geographical boundaries of their alliance in their annual meeting in Washington next month. In the most sensitive area -- intelligence sharing -- Hawke said he told Weinberger Australia wants to have a permanent military liaison office in Washington who would have the specific responsibility of acting as a link between the U.S. communciations and early warning bases at Pine Gap and Nurrungar. Weinberger, he said, agreed to study the proposal and it will be taken up at a technical level. Hawke said he had expected nothing further than that in this preliminary meeting on the subject. Hawke also said that he discussed with Central Intelligence Agency bi,rector William Casey the recent wholesale disclosure of U.S. classified documents by an Australian newspaper. He said he made known his government's intention to keep such information secret. He quoted Casey as remarking wryly, "that sort of thing is not confined to Australia." Hawke said he was assured U.S. intelligencg sharing with Australia would not be affected. Hawke also told Reagan i that Australia is deeply interested in trying to bring the Republic of Vietnam out of its political isolation. Approved For Release 2005/11/28 : CIA-RDP91-00901R000400080001-8 Approved For Release 2005/11/28 ? CIA-RDP91-00901R00040 ASSOCIATED PRESS 13 June 1983 By TERENCE HUNT T-WASHINGTON Reagan-Australia 1080001-8 Australia's new prime minister, Bob Hawke, tOld President Reagan on Monday that there is no nation in the world the United States "will be able to rely on more as a constructive ally than Australia." Standing next to Hawke outside the White House, Reagan spoke warmly of the 'prime minister and called Australia "a great nation that plays a vital role in regional and world affairs. It's a key ally upon whom we can count." It was the first meeting between Reagan, a Conservative, and Hawke, a former trade union chief whose Labor-Party came to power last March 5, toppling conservative leader Malcolm Fraser. Later, at a news conference, Hawke said Australia's goal is to "bring back Vietnam into the wider community of nations," and that its policies toward Hanoi will be guided by that principle. On another subject, Hawke was asked about allegations that the Central Intelligence Agency had a role in bringing about the downfall in the mid-1970's of the previous Labor Party government in Australia. Hawke said he received assurances Monday from CIA director William Casey that such allegations were unfounded. EXCER21.777); Approved For Release 2005/11/28 : CIA-RDP91-00901R000400080001-8 Approved For Release 2005/11/2811AWREIP91-00901R0004 13 June 1983 r'rr!LE APPEARED ON PAGE -31 SURINAM The CIA Vs. the Colonel entral Intelligence Agency director William Casey appeared before mem- bers of the House and Senate intelligence committees last December to deal with a touchy problem: Lt. Col. Desi Bouterse, the erratic new leader of Surinam, a former Dutch colony on the north coast of South America. The colonel had seized powerin 1980. In late 1982 he rounded up 15 of his leading opponents and had them shot. To make matters worse, Casey's dossier had Bouterse flirting with Fidel Castro and in- viting 100 Cuban advisers to his country. To head of another Nicaragua, Casey pro- posed an old-fashioned CIA solution: to arm a force of Surinamese exiles and send them back to toss out the troublesome leftist. The plan, disclosed last week by ABC News, outraged committee members. Even Republican loyalists called it "hare- brained" and "preposterous." Most mem- bers weren't objecting to the principle of such an operation; but they demanded far more evidence that Surinam represented a threat to 'United States security. Still, the CIA pressed on. To beef up its case, the administration brought 'U.S. Ambassador to Surinam Robert Duemling back from Paramaribo to explain just how deeply Bou- terse was being drawn into Castro's orbit. Duemling reported that a high-level Soviet diplomat was stationed in Surinam and that Bouterse was spending a great deal of time with Cubans at odd hours in the morning. On the other side, there were plenty of candidates eager for a coup. Dr. Henk Chin A Sen, a former surgeon and leader-in-exile, was spending a lot of time on KLM Bights between the United States, where he works JI/A1 00080001-8 ata Pittsburgh hospital, and Holland, where he beads the Surinamese Liberation Move- ment. The doctor had been president of Surina.m for the first I 4 mon ths ofBouterse' s regime. He was forced to resign when the military leader blocked his plans for demo- cratic reforms: Since then, the Dutch press has reported Chin A Sen's attempts to or- ganize a small army from among the 250,000 Surinamese in Holland. He has also pledged repeatedly on the world broadcast of Radio Netherlands that the "liberation" of Suri- nam would be imminent. Bouterse ordered his people n ot to listen to Radio Netherlands after his men noticed that the streets of Paramaribo emptied every evening when the Dutch news came on. There have been rumors in Holland about ties between the former president and the CIA. But no one has ever proved them. Veto: The story of Casey's plan has sharp- ened the debate on how much power Con- gress should have over CIA operations. Un- der present law, committees can reduce funding for a coven operation they do not approve of, but they can not cut off the operation altogether. Taking full advantage of those rules, Casey did not give up his coup idea immediately after hearing the congressmen denounce it. The plan was killed, said a congressional source, only much later, after administration officials warned that it would complicate congres- sional support for other CIA operations in Latin America. Democratic Rep. Wyche Fowler has scheduled a hearing next month on his bill to give Congress an outright veto over the CIA covert activities. But the CIA's friends on the Hill are trying to turn the Surinam debate to their own purpose: even now they argue disingenuously that, since congressional disapproval killed Ca- sey's plan to topple Bouterse, Congress doesn't need a stiffer law. Approved For Release 2005/11/28 : CIA-RDP91-00901R000400080001-8 Approved For Release 2005/11128 :NNA-RefratISOBDIP.000400080001-8 r/111,1 r rinnr,vrtrp 13 June 1983 , 0:: INTELLIGENCER No Respect For C.I.A. Chief WHAT 'DOES F.B.I. DIRECTOR William Webster think of William Casey, " his con- troversial counterpart at the C.I.A.? Not much, accord- ing to a source close to Webster.. 'Webster has called him a 'buffoon' a couple of times," said the source. Another source who knows Webster 'told New York that the F.B.I. director, a Carter-administration ap- pointee with a ten-year term, got along well with Casey's predecessor, Ad- miral Stansfield Turner: 'They were buddies from Amherst. and they set up procedures to combat an underlying hostility between the two agencies, forcing them to cooperate," ex- plained the source. With Casey, "the cooperation is steadily deteriorating," he added. Casey has been in the news lately for having traded heavily in the stock market last year, after be- coming C.I.A. director. The F.B.I refused to com- ment. STAT Approved For Release 2005/11/28 : CIA-RDP91-00901R000400080001-8 STAT 41-1-171J. kPPEAREapproved-For Release 2005/11/28 : CIA-RDP91-00901R000400080001-8 DI' t' EtRLs la ;tune 19E::.? rust, Mr. Casey ykoirs.:R is the director :of the ?wheelingand-dealing lastiall, Mr. Casey -Centml . intelligence ;Agency bought ,neavily into electronics firms and (MA). When he puts his ? chips into drug companies with Central Amer. dawn.. it's a good loan subsidiaries. .It takes little imagina- Only one man can4nake7that suat--. -.lion s=ise how the -CLA :director's merit: William Cvsey.-kie-ds-the-direC---privilegescouc conven -Allis public -trust ?tor. of tineCIA.-51-le* As.aiso thrector:of --?-intopriltate..gain-in suchfields. ? tfis dal trivestrnents.Lw - ?tt .. ? ? -?-?N owevittenceishows :that Mr ;Casey :Case.P'enekekeitsziMleii.i?P'le ?REngtotat ecl aryraatC1:q"erilaPS tis:133 vestments . stock marisetiast. year_S-IiSfirkalnia},dis. ..2re as 4ini-ainted ,2s _those .7:tof Tetired -.:tiosuretforinkytPai -schoolmarms -in Kansas. The ? -issue 'lt -showi-tharmrieTtooirgtrfiand sold Axpto . conflicting public and private,.interesis. S7 -millioniwortirof stoolstri,ait-ileast-'93 ? , however, =ad it must :be: addressed in - ?compa.nies ?.over .26...days -terms -beyond .marrov, -.the"; - ": ?_Lotsof4cnvestorsinaitiebig=ionev-trur-" ?resident eagan. Vice ...President ing the Iriaricei's boom. of -course. And Bush. ariC Treasury Secretary --Regan all Mr. Casey -prObabiy. is la financial -established blind trusts upon taking of- -after a long career as a Wall Street inSid7 f ice. Those accounts administer the pri- er. But now that he heads the-CIA. he's a Vete finances of public men without .different kind. -of insider -- andthere's, their direct personal knowledge Or in - the rub. volvernent. ? "rhe arrangement avoids MI-. -Casey's information sources -now -even an -appearance ? of conflicting inter- ere. of courst,--unmatChed. Does he juse ests. h is standard procedure ? for public his access 10-classified intelligence from ?officials to4establish such mists in most all over the world to tve inmself inslauces,. M.C.2sey's ?predecessor fol.. tages it his investments? -.lowed that procedure. avoidabie.suspiclof,. Mr. Casey -refused .to do so. 'Yet, as. In .3961, for :,example,'Mr.- Casey .un- 'bead of-theICI.A.:. the need -for-the Tredi- loaded more than S600000 worth of biliry triarresniz.-f-Torn -such ati-an-ange- ? stocks. Oil prices were dropping because men: is perhaps MOM COEOpeillog .rhgt of the global oil glut: Thie, many inves- 'for any ,otherfigure -it ,Crovenarnent. .. -tors sold oil stocks for-the-same reasons. The Intelligence oversight r-ornmirtees But no other investor had 'Mr. Casey's of. Congress -should scruririi7e Mr. Ca- access to CD-', -economic analyses ? of .sey!s financial .practices. Beyond that.,-: .Probable production and sales. Time- 'however.. the Reagan Administration ly information is priceless. should require 1. Casey to. ?estAbiisb _a :During his , 26 days ,-...of ? white.-hot blind trust.. Approved For Release 2005/11/28 : CIA-RDP91-00901R000400080001-8 TAT "PIE APPEARELApp-Yoved For Release 2005/11/28 CIA-RDP91-00901R000 Or! ?AU ;L-,,e- A MIAMI HERALD soloswirr"--- 11 June 1983 00080001-8 rust, Mr. Casey mY BROKER is the director' ofthe wheeling and dealing last fall, Mr. Casey ,Central Intelligence -. -Agency - bought heavily into electronics firms and (CIA). When he puts his chips into drug companies with Central Amer- down, it's a good bet ."7:t... ican subsidiaries. It takes little imagina- Only one man can ?makelthat state -tion tion to surmise bow the CIA director's rnent: William J. Casey.--He is the-direC----aprivileges could convert bis public trust -tor of the IA.'il-le4s-also the-director pf -into-privategaimin such.fields. his own-fina.ncial?investments.%. ?5,-- No,evidenceshows that Mr. Casey vi- Mr.- Caseylmade'W-Itilliiii playing-the!`.--olated:anyilaw.E,Perhaps his investments stock market last year. His financial-dis- are as -untainted as those of retired -:closure-toiM-AaS releaSed the other day: ,. schoolmarmi4n- ?Kansas. The. issue ? is It showg-'that lie:bought-and sold up to conflicting public-and private interests, $7 million worth - of -stock ' least 91 however, ,and :it ;must ,be addressed in - companies over 26 days last;fall .while terms-beyond -narrow legal -technicali- -.the marketioired:: - -ties. - ? - - Lots-dffinVestors made birmoney dur- ? President' ?:Reagan, Vice, _,Prisident ing the market's boom, of course: And Bush, and Treasury Secretary Regan all Mr. Casey probably is a financial whiz established blind trusts upon taking of- after a long career as a Wall Street insid- f ice. Those accounts administer the pri- er. But now that he heads the-CIA, he's a vate finances of public men without different kind of insider?'and' there's, their direct personal knowledge or in- the rub. volvement. The -arrangement avoids Mr. Casey's information sources now even an appearance of conflicting inter- are, of course, .unmatched. Does he use ests. It is standard procedure for public his access to classified intelligence from officials to establish such trusts in most all over the world to give himself advan- - instances. Mr. Casey's predecessor fol- tages in his investments? It is ,an -.lowed that procedure. avoidable suspicion: _ ? Mr. Casey refused to do so. Yet, as In .1981, for example Mr Casey un- ? head of the =CIA, the need for the credi-.. loaded more than -$600,000,,worth of oil bility that results from such amarrange- stocks. Oil prices were dropping because ment is perhaps more compelling than of the global oil glut.' Tiue, many inves- for any otherfigure in Government. .. tors sold oil stocks for the same reasons. The Intelligence oversight committees But no other investor had Mr. Casey's of Congress should scrutinize Mr. Ca- access to CIA economic analyses of , sey's financial practices. Beyond that, probable oil production and sales. Time; -however; the Reagan Administration ly information is priceless should require Mr. Casey to establish a During his 26 days of - white-hot blind trust. ? Approved For Release 2005/11/28 : CIA-RDP91-00901R000400080001-8 Approved For Release 2005/11/28 : CIA-RDP91-00901R000 THE MIAMI HERALD 10 June 1983 . ?Ar'PEAR7D Editing by Enders oleo. , as -last straw' . , ? By -ALFONSO CHARDY.. , Herald Washington Bureau ' WASHINGTON A few days before.being ousted . as the State Department's senior, specialist on .Latin America, Thomas Enders ordered a softening in the tone of .a.zeport on. left-wing-insurgencies in.Central ? Ameri9?.according talrs.. military and intelligence ? sourctisa-e- . ? ..;:i-ear- ? _?? : The 'original paperilbeToreft'swas .presented_to the :press:49.4th -State Department Inodifications,-had- been ? ' prepacidaay the CentralIntelligence-AgencY.and the .Pentagon.. _ ? - , a ? ? ?AlthoUgh the changeswere-noi.substaiitial and did not Vrer-th e of the17-Pagellocument, ? ? theyalideanger CIA DirectorWilliam Caseyand ,Penta- gon officials who helped , prepare the report. The episode has been cited as -the last straw" in Enders' abrupt replacement May 27, the same day that the report ? entitled "Back- ground Paper: Central America" ? was issued at a press briefing by State and Defense Department offi- cials. Reporters who attended the ses- sion sensed something was amiss when Enders, who usually conduct- ' ed briefings related to Central America. did not appear. Journalists were told that a shift in schedules had-prevented him from attending. ? A few hours later. Secretary of State .George Shultz ? traveling with President Reagan aboard Air Force One from Washington to the Williamsburg economic summit ? announced that Enders was being replaced as assistant secretary of. state for inter-American affairs. ? The sources, familiar with the original material drafted at CIA headquarters In Langley, Va., and at the Pentagon's defense intelligence unit, say the changes ordered by Enders resulted in the removal of - the equivalent of at least three pages in the report. The sources said Enders also had at least three sections in the document dealing with Cuba, Nica- ragua and Guatemala partially edit- ed to reflect more neutral language. A comparison of some of the original material made available to The Herald with that contained in the public report hadieates only sub- tle differences in the two docu- ments. In the Guatemala segment, for example, the 'change involved two lines and 10 words in _the opening paragraph. ? The original document said: "In Guatemala,- although there .4was increased guerrilla activity in the months preceding the elections, this violence failed to disrupt the national elections of March 7, 1982: A widespread,- but unconfirmed,. perception extensive electoral . fraud_ by. the -government led to .aa junior officer Copp on March 23, 1982." . ? - 'The final document, with the change noted (italics added by The Herald), read: "In Guatemala, although there was increased guerrilla activity in the months preceding the elections, this violence failed to disrupt the national elections of March 7, 1982. widespread, but unconfirmed, perception of extensive electoral fraud by the government together : with pervasive and excessive gov- ernment corruption and interna- tional 'isolation led to a junior, offi- cer coup on March 23, 1982." ? The sources said the change was designed to "placate" congressional critics who believe that the human rights situation in Guatemala is grim. They said that in some in- stances the word "terrorist" was replaced with "guerrilla" or "insur- gent." ? Officially, the State Department had no comment on the complaints, ? but a State Department source ac- knowledged that changes were ? made. ? This source, intimately familiar ? with how policy documents - are drafteda-defended :Enders' -role -in- the matter, saying changes were -logical because the document was going to -be issued jointly by the State Department and Pentagon. Therefore, the source said, the State Department felt that its ideas also should be reflected in the paper, not only those of the Penta- gon and the CIA. The source also denied that the changes were made to cast military regimes in an unfavorable light or to improve the image of the guerril- las. Approved For Release 2005/11/28 : CIA-RDP91-00901R000400080001-8 CONE .THE CHICAGO TRIBUNE ? 10 June 1983 ____AP-Ilrovecl-For Release 2005/11/28: CIA-RDP91-00901R P 00400080001-8 SAT ? ? ? and Congress' me If -the Reagan administration's Central Amer lean policy is poverty-ridden, it still is better than the non-policies that come out of Con- gress. One of the most burdensome legacies of the ' Watergate era .has been the second-gues- sing and grandstanding in foreign affairs matters by congressional committees. It' may be difficult to fault Congress for. keeping a close watch on -an administratior whose foreign policSrisaffected by such inexpe- rienced and often ?wrong-headed officials as CIA Direc' tor. William J. 'Casey and William Clark, the adviser on national security affairs. But many of the congressional watchers. are even less experienced and more muddled than the watchees. The Houte and Senate intelligence corn- - inittee,s are notorious for leaking sensitive se- crets. The committees dealing with foreign relations quibble over whether 55 advisers or 125 advisers is the right number for training El Salvadoran soldiers, as if it makes a differ- ence. Rather than offering rational and forthright critiques of administration foreign policy, the committees reduce appropriations or stall or leak. It was Congress that helped get us into the Nicaragua mess in the first place by holding up appropriations for aid that was badly needed for the country to recover from its civil war. While Congress dawdled, the Cubans and Soviets delivered their strings-attached aid and helped the more extreme elements of the San- dinista coalition. to gain power. But now that Marxists-are in--control in-Managua, Congress is hemming arid hawing .over administration attempts to oppose them. , It seems that Congress can do nothing right in foreign affairs. Maybe it should stop trying. ? mg Approved For Release 2005/11/28 : CIA-RDP91-00901R000400080001-8 Approved For Release 2005/11/28 : CIA-RDP91-00901R00040 SAN DIEGO UNION (CA) 9 June 1983 t4155 )01?5,71-,CLA551FIED REPORIDuTLIRE511? UKELy !PACT OF MIDEAST TEN5ION5 ON IRE U.5.011.-INDU5TRY! 080001-8 STAT Approved For Release 2005/11/28 : CIA-RDP91-00901R000400080001-8 STAT ART' 77 "77:7'-rD TH&E7SHINGTON PC ST t.. nr.oP Approved For ReleNsW;OVA313/28 : CIA-RDP91-00901R00040 Capitol Punishment Casey Stocks By Art Buchwald It. has just been revealed that Wil- liam J. Casey, the CIA director, bought and sold millions of dollars in stocks and other securities last summer as the market took off. ' A lot of people might think there is some conflict of interest in doing this sort of thing when you're'head- ing up one of the most sensitive or- ganizations in the United States. But I'm not one of them. Casey is still a private citizen and can invest his own money as he sees fit. ? -I admire anyone who can run a superpower's intelligence agency and also have time to keep his finger in the stock market. can just imagine how he did it. ' An aide comes in with a top secret cable. "Our man in Havana saYs that Castro ' is shipping concrete to Grenada to build an airfield." "Let me see that. Do you know what this means?" "War?" 'Not yet. It means if Grenada goes ahead with its airfield, we'll boycott them, and there will be a ; nutmeg shortage in the United States." "Do you want t6 sped - to the president?" I "No, Lwant to speak to my broker - at E.F. Hutton. I have to iind out what company bandies nutmeg in - the U.S." ?"This is just in from TokyoThe. Japanese are coming out with4bew. micro computer chip which ecould blow California's Silicon ValleT off the face of the Earth." - - "I' was afraid of this. If the Soviets can "get their hands on Japanese hi- tech, they can -go ahead with their. SS64- missile and we'll have to de- yelp a Pershing III." - "What's the answer?" "I'm going to get out of Hewlett Packard and into Sony-American. Tell our station chief. as soon as the first microchip comes offthe line I want to hear about it. We can't af- ford to be caught napping. What else have you got?" "One of our undercover agents in Libya says that Qaddafi is planning to overthrow the royal family in Saudi Arabia." ? "This could mean the end of the oil glut:I better get back into Stan- dard Oil of New Jersey right away." "Should we do anything to pre- vent the coup?" "What do you suggest?" "Get word to Qaddafi he's a-dead man if he ever tries it." - "Good idea. I'll hold off on Stan darci Oil until we get his reply." 008/401 8 "By the way, the White" House called and wants to know if we have anything out of Israel concerning their work with lasers. It could be a big factor in our new `Star Wars' strategy." ? "They haven't come up with any- thing yet. If they did I would have bought United Laser, which is put- ting up the money for the research. Tell the White House if they see- , some heavy trading in United Laser. then the Israelis will have made a breakthrough.". ? "Our man in East Germany says . his mole indicates the East Germans have developed an infrared instant camera which Moscow is going to - issue to all KGB agents in the fall." "It doesn't bother me. I've been out of Polaroid since last summer. , How are the Soviets doing with their -gas line to West Europe?" "They're on schedule." . "I was afraid of that. -Thar means the Baton Rouge Shipping Co. is going to be stuck with 20 liquid gas tankers the-West Germans ordered." "I'm sorry about that, sir." - "No one can call every stock right. Did you find out the names of the subcontractors on the MX missile yet?" r ? "The Air Force is being very cagey about giving 'out any names." "Oh .they are, are they? Get me Cap Weinberger on the line right away. How can I run a decent intel- ligence operation if our own people are going to keep secrets from me?" 1083. Los Angeles Times Syndicate ' Approved For Release .2005/11/28 : CIA-RDP91-00901R000400080001-8 STAT Approved For Release 20051inta3: CiArR,DP91-99901R000 E June 1983 400080001-8 STAT Me incredible Mr. Casey President Reagan, Vice President Bush, Treasury Secretary Donald Regan and nearly the other major figures in the administra- tion put their financial holdings into blind trusts upon tAking office, being well aware that in public life the appearance of probity is every bit as important as'probity itself.. The bitable -exception to this *az been.Ck._ Director William 3 Casey,--who has continue? to play the stock and securities markets like a gambler on II roll. - According to his .financial fdisclosure ..sttement. the CIA director pitmged -$1.5 mil- lion into-the markets between last Aug. .26 and Sept. 20 alone, running that up to $2..2 nainion in less than .a -month. Mr. Casey sees nothing wrong in this noting that be has assigned Deputy CIA Director John McMahon and other staff to alert him the moment his investments present a conflict of interest. Re decided on this arrangement only last year, after a public scandal resulting from his ?sale of $600,000 in oil stocks in 1981, just in time to avoid heavy losses from the developing world oil glut. That Mr. McM.abon and his associates have more important things to do than keep track of Mr. Casey's portfolio may seem a small point to some, but even if they work at it, -24 hours a day, they are never going ".. to be able to remove completely the appear- ance of conflict. There is more at stake here thwr embar- rassment. The President is laboring mightily to 'persuade House and Senate oversight com- mittees of the seriousness of-several threats to the nation's -security. His success greatly de- pends on congressional acceptance of adminis- tration intelligence data. but during Mr. Casey's tenure, the CIA's credibility on Capitol Hai .:has declined "dangerously. Al first, he seemed to be passing.on only that intelligence which agreed with the then new administration's ideological party line. Then he infuriated congressmen and CIA careerists alike by hPrning.sewing machine salesman and Republican fund raiser Max Hugel as his head spy. Oversight committee members who used to hang on former Deputy CL4. Director Bobby Ray Inman's every word would not now believe Mr. Casey if he was reading the transcript of one of Mr. Inman's presentations. Many on the Hill are going . to view the disclosure of Mr. Casev's stock profits as about the last straw. If he values the iaation's.sectirity and the success of his own policies as much as he says he does. Mr. Reagan ought to view it that way, too, and make Mr. Casey clean up his act or get off the stage. Approved For Release 2005/11/28 : CIA-RDP91-00901R000400080001-8 kPEARE.D DrPk.E7 ? liApproved For Release 2005/11/28 : CIA-RDP91-00901 000400080001-8 Tin l':1.12s:1. i-17-7,..4.,:...r E jUDE 2 9E: lief Spook Is All T By SAD' GR.ADY 1,:rarr.!-Ricoe, tvelespcprn wrar A REPUBLICAN insider was. Pi. asked coupie of years ago, N.;thy Ronald Reagan 'chose 'bVilliam .1. Casey to be his chief spook "at the ?Ci,Pttrai .Intelligence Agency (CIA): "Because:" said _the -Republican., , only -half-joking, '-thfit seenieti the :Pei: place ron hide him:" . ? At the time the jest Made -sense.' Reagast .laweci :Casey something for being -the- norninal manager of is 980r election victory. But -even :the Reagan advisers didn't went Casey, al; Ina:Tit:LI/ate public figure who hat spent a career trading on Wall Street. J.:5 a spotlighted Cabinet jot. St .the seenie a sale niche. The President's chief spook doesn't ha VE IC, ra.E.4:E. speeches 07 answer questions on Mee: the Press. When he talks congressiona.1 commit- tees. it is usually behind lacked Open.. _ PUTTING Casey in charge of the levers at the CIA's Langley, Va., headquarters seemed to be the per- feet payoff . Casey, who had some intelligence experience..coule -run the U.S.. spy empire ? with no public fanfare. If they wantet to hide Casey, the Reagan learn might have been be. ter 'off putting him in c'nesge of COnlinerCe 07 Agriculture 07 one of, those other?bu.reaucratic mazes. At the CIA., he's been as discreet. ?ty reclusive as a r.):-ring circus, complete with clowns and jugglers. Casey has repeatedly shown E blazing ? gift for making the wrong kind of headlines. The Senate Intelligence Commit- tee. especially Sen. harry Goldwa- ter, doubted Casey's ability from ?the firs: because of his stumbling, amateurish answers about the MA's covert nians.. -Casey is the first ClA director who doesn't need a telephone scrz.:r.bier." one senator joked. a)- to Casey's mumbling style of speech. President's No. 3 spy, Casey showed a wonderful flair 107 slipping on banana peels.. He named Max.Hugei, a political operator, ES E top aide; Hugel had to quit because of oki scandals. Then Babbay Inman, the most respected spook .= Wash- ington':ouit the .CLA-- And Casey's own sharp finaricial.clealings nearly cost_laiat his job. ? - Thermenators !gave 'him a grudg- ing OK 'with the ball-hearted line, **J30t unfit to serve.' Now Casey is again 6=ms:rat- ing his talent for creating the kind -of hews the Reagan ..iieihainiS=atiOr doesn't need. Casey's financial-disclosure 107= shows he bought ant sold as much as 57 million worth of stool: it a 26-day splurge when the STOCk mar- ket was zooming in the late sum- mer of 19E2. Sc' far nobociy knows whether C.asey,a 7&-year-old millionaire. broke Erly laws on his stoCk-mazket spree. Unlike many.other-top Rea- gan officials, G, earlier re- fused to put his holdings in a blind uc "SM:Cie Of US are jeer" of the way Casey operates," said a Senate In- telligence aide; -but be's tree to buy . and sell or his own." But there's at least a chance that _ . Casey -could have used his CD: in- side knowledge to make a fev,, bucks on the market. Several of the drug companies in which Casey invested heavily have subsidiaries in Cen=a1 Ameri- can hountries where the CIA flour- ishes.. Casey also bought chunk.s of smock in electronic firms that could have Government conn-acts. - -We'll review ft for conflicts of interest," said Bob Flynn, a spokes- man for the Office of Government -We'll see If be (Casey) had advance information about situa- tions conducive to the stock market advancing." .Bv.en if . C.asey's market shenani- gans are pure, though, there is 'something unsettling about a CIA director frantically juggling stocks STAT Visible at the same time 'ne's pait to run the country's spy machinery. Casey's behind-the-scenes clout is immense. he's the operator of the agency's biggest covert opera- tion it years. the CIA's secret war against the Sandinista government: Nicaragua. Because of a Reagan executive artier signed in 1961, Casey is the first CIA ..director who has the power to spy inside the United States. Casey is ,also running 'a number -of 6ml-end-Unger capers around the world, .inciuding opm-ations. in '-'i-londu.ras and El Salvador. getting E:777..S to Afghan rebels. and clandes- tine activity in the Middle. Lan. EVEN Washington critics that so far Casey's CIA has not been snake: by major leaks or intelli- gence flops. But it's still early. -You never know LOOM a CIA Disaster until Atte7 it's blown up in VOIZ7 face." t a a man with the your Intelligence panel. "Casey Doesn't even give the senators mud) of a handle on what he's doing." One thing Casey is obviousiv Doing is feverishly playing the stock market. His other knack is for ciothig public pratfalls ? he's the Spy Who Keeps Coming in Frorn .the Co). If his string of blunders con- tinues, Casey could Jiro Watt as the Cabinet member most likely to be fired before the 1954 election. What Casey depends upon, of ?course, is his trientiShip with Rea- gan. "1 sl) call him Ronnie," Casey 'bas said smugly. The Waite House probably has its own name for Bill Casey, their spook who can't ray invisible. Bad News .Casey. Approved For Release 2005/11/28 : CIA-RDP91-00901R000400080001-8 STA . THE MIAMI HERALD "Ti LE kPPEARFAIpproved For Release 2005/11/XigINIWP91-00901R009 ON PAGE ? 400080001-8 Chief Spook Is All Too '(-`61.ale ' By SANDY GRADY Knight-Ridder Newspapers Writer AREPUBLICAN insider was; asked a couple of years ago. why Ronald Reagan chose William .J. Casey to be his chief spook at the Central Intelligence Agency (CIA). "Because,"; said the Republican, only half-joking, "that seemed the best place to hide him." At the time the jest Made sense. Reagan 'owed 'Casey something for ? being the nominal manager of his ? 1980 election victory. But even the Reagan advisers didn't want Casey, an inarticulate public figure who had spent a career trading on Wall Street, in a spotlighted Cabinet job. So the CIA seemed a safe niche. The President's chief spook doesn't have to make speeches or answer questions on Meet the Press. When he talks to congressional commit- tees. it is usually behind locked doors. PUTTING Casey in charge of the le verS at the CIA's Langley, Va., headquarters seemed to be the per- fect payoff. Casey, who had some World War II intelligence experi- ence, could run the U.S. spy empire with no public fanfare. If they wanted to hide Casey, the Reagan team might have been bet- ter off putting him in charge of Commerce or Agriculture or one of those other bureaucratic mazes. At the CIA, he's been as discreet- ly reclusive as a six-ring circus, complete with clowns and jugglers. Casey has repeatedly shown a blazing gift for making the wrong kind of headlines. The Senate Intelligence Commit- tee, especially Sen. Barry Goldwa- ter, doubted Casey's ability from the first because of his stumbling, amateurish answers about the CIA's covert plans. "Casey is the first CIA director who doesn't need a telephone scrambler." one senator joked, al- luding to Casey's mumbling style of speech. ? BUT as the President's No. I spy, Casey showed a wonderful flair for slipping on banana peels. He named Max Hugel, a political operator, as a top aide; Hugel had to quit because of old scandals. Then Bobby Inman, the most respected spook in Wash- ington; quit the CIA. And Casey's own sharp financial-dealings nearly -- cost him his job. - - The-senators gave him a grudg- ing OK with the half-hearted line, "not unfit to serve." ? - Now Casey is again demonstrat- ing his talent for creating the kind - of news the Reagan Administration doesn't need. Casey's financial-disclosure form shows he bought and sold as much as $7 million worth of stock in a 26-day splurge when the stock mar- ket was zooming in the late sum- mer of 1982. So far nobody knows whether Casey, a 70-year-old millionaire, ? broke any laws on his stock-market spree. Unlike many- other. top Rea- gan officials, Caserhad earlier re- fused to put his holdings in a blind trust. "Some of us are leery of the way Casey operates," said a Senate In- telligence aide, "but he's free to buy and sell on his own." But there's at least a chance that Casey could have used his CIA in- side knowledge to make a few bucks on the market. Several of the drug companies in which Casey invested heavily have subsidiaries in Central Ameri- can countries where the CIA flour- ishes. Casey also bought chunks of stock in electronic firms that could have Government contracts. "We'll review it for conflicts of interest," said Bob Flynn, a spokes- man for the Office of Government Ethics. "We'll see if he (Casey) had advance information about situa- tions conducive to the stock market advancing." Even if. Casey's market shenani- gans are pure, though, there is ' something unsettling about a CIA director frantically juggling stocks at the same time he's paid to run the country's spy machinery. Casey's behind-the-scenes clout is immense. He's the operator of the U.S. agency's biggest covert opera- tion in years, the CIA's secret war against the Sandinista government in Nicaragua. Because of a Reagan executive order signed in 1981, Casey is the first CIA director who has the power to spy inside the United States. Casey is also running a number of cloak-and-dagger capers around the world, .including operations in -Honduras and El Salvador, getting arms to Afghan rebels, and clandes- tine activity in the Middle East. EVEN Washington critics admit that so far Casey's CIA has not been shaken by major leaks or intelli- gence flops. But it's still early. "You never know about a CIA disaster until after it's blown up in your face," said a a man with the Senate Intelligence panel. "Casey doesn't even give the senators much of a handle on what he's doing." One thing Casey is obviously doing is feverishly playing the stock market. His other knack is for doing public pratfalls ? he's the Spy Who Keeps Coming in From the Cold. If his string of blunders con- tinues, Casey could match Jim Watt as the Cabinet member most likely to be fired before the 1984 election. What Casey depends upon, of course, is his friendship with Rea- gan. "I still call him Ronnie," Casey has said smugly. The White House probably has its own name for Bill Casey, their spook who can't stay invisible. Bad News Casey. .4 Approved For Release 2005/11/28 : CIA-RDP91-00901R000400080001-8 ? REUTERS ? Approved For Release 2005/11/2E?:i317WRW931-00901R000 WASHINGTON BY JAMES VICINI STAT 400080001-8 Ivory Coast President Felix Houphouet-Boigny met with Agriculture Secretary John Block and members of Congress today to discuss agricultural trade and the political situation in Africa. Houphouet-Boigny, on his third official visit to the United States, saw President Reagan yesterday and will conclude his trip to Washington tomorrow by conferring with Treasury Secretary Donald Regan and World Bank President Tom Clausen. * * * *?* ..* The Ivory Coast leader..also discussed the political situation in Africa with -,senior members of Congress at a House Foreign Affairs Committee luncheon. Houphouet-Boigny, during his White House meetings, has called for faster progress on Namibian independence from South Africa and expressed concern about Libyan activities in Africa. William Casey, director of the Central Intelligence Agency ( CIA) y also met with the veteran Ivory Coast leader. Both sides declined to say what topics were discussed. :EXCERPTED ? Approved For Release 2005/11/28 : CIA-RDP91-00901R000400080001-8 Approved For Release 2005/11/28 : CIA-RDP91-00901R00040 080001-8 vvrLE kPPEAKta, 4- C111 PAGE_g----44' ATLANTA CONSTITUTION 7 June 1983 Have we got a coup for you... ? Did CIA Director William Casey ever have a proposition for Congress' intelligence com- Mittees! Here was this small, Georgia-sized South American country called Surinam (formerly Dutch Guiana), which fronts on the Caribbean. ? - Independent from the Netherlands since 1975, Surinam's legally elected government Was ousted three years ago by a sergeants' coup, which has ruled harshly ever since, forc- ing 16,000 of Surinam's 400,000 citizens to flee, many to Holland and the United States.. * Worse still, the local tyrant, Desi Ron- terse, had been throwing in with bad company ? Cuba, Grenada, Nicaragua and Libya, coun- tries of that ilk_ ? For a small [LS. expenditure, Casey told members of the committees last December, the CIA could recruit and equip Surinam exiles to stage a countercoup ? and install a Western-leaning bastion of democracy. The master plan was all set, Casey averred., and had President Reagan's approvaL No sweat. By a stroke of good luck, Casey was in- forming House and Senate intelligence panels in advance of the Surinam rniccion. Rules gov- erning congressional oversight of covert operations require only that the panels' mem- bers must be apprised of ongoing secret ac- tions, not necessarily before the fact. The reaction of those House and Senate members let in on the scheme was near-unani- mous: Shocked opposition.. 'Casey's so-called evidence of Cuban penetration was ?frirrycy and -unconvincing, congressional sources told ABC News 'Nightline" last weeL- --Although the Demoantic-citiminated House panel had rejected the plan, Casey was pre- pared to-follow through with it. But-then the Senate committee, chaired by GOP Sen. Barr, Goldwater, voiced its :own; thunderous .distp-' provaL At that point, the project was- scrapped, and congressional sources report they are . reasonably confident that Case-bas -kept his word about that What lessons are to be drawn from the near-fiasco in Surinam? For one, that the despite the taattifest dirAfters for .U.S. interests which resulted from such quixotic CIA ventures in the past., Reagan and Casey are disturbingly keen to play with the. dirty-tricks toy. The United States has absolutely no busi- ness authorizing the forcible removal-of sover- eign governments, no -matter how despotic or disagreeable, unless as a means of last resort against a direct and verifiable threat to our national security. The present administration's Castrophobia notwithstanding, Surinam clearly does not meet that test. ? For. another; the Surinam case points up the wisdom underlying Atlanta Rep. Wyche Fowier's legislative proposal recut:ring ad- Vance notice of all covert operations and giv- ing the intelligence panels the jointly shared power to scrub them if they seem unwise. We can't always count on mere congressional disapproval sidetracking Reagan's or any fu- ture administration from pursuing a hare- brained rniQcian improbable. t4 Approved For Release 2005/11/28 : CIA-RDP91-00901R000400080001-8 STAT Approved For Release 2005/11/2i-i--g1X--FiltiP?coati4k600.43450E0001-8 7 June 1963 Durwood McAlister Congress should investigate Casey tic ,commercial operatioris and intrude into the : .lives of private citizens. . stock- _ Writing specifically -about the .superseret National .Security Agency, but describing .1 a capabilitysharedby the CIA, be said: il-iket.theat cornered athin 4-finteciStates;rzhe ..ccogress mirding g.,:jp-arictbrivral.:.:1"-ir_ee.'to pull into its -massive ,vacuum -cleaner! -rjla3IL. Casey,. xrxting:;tto`--Bo telephone iand-image.-.entering! ranext:gtiamowsiktaimsaptincL, Zesivingtortra.nsitingithe4country,sislong-asatis_ taisomethinganteres,ting2iiiiiiii_ -2k - 44- .1kaDne.73LierDWaY.:41n. terPePOonlf...dtra.:'=the, . -not sure':ic stgency =an ,progran;zits -ligh-speed -Computers ..,revelation..-Ahat,..the 7,;and 22,000-linerper-minute printers to ?kick:out :Ztntral ;intelligence Agency . "-telegram -or telex containing the-word boss iought.a.nci,sOldrsome- - toe.-Nword ?Democrat, wXIije woice?ianal!tsts, - million worth. of ...stoCksan . ?fscan-guides in hand, listen attentively to eCie,ry hectic 6-da period last year phone call between Washington .and London, 2y '.:?? - when the market was rising recording for later dissemination those contain- is not ?the ?sort of thing that ing the targeted subjects." n be ignored. William Casey may not have used ...the ca But it the -potential scan- information gleaned by such awesome eaves.- dal is IC* big to he swept ,under .the _rug --and dropping tnetriods to makea killing in the mar- forgotten, it is too well hidden to be dug out ket. without considerable pain. But the possibility that he did would seem- There is no -question that Casey's position- to softer ustification enough for Congress to . gives hum-access to a remarkable -amount of in-L. tackle the porcupine and try to get some -n -gide' knowledge on-the-firms -in swinich'iie swers- vested. But, in order to show that he :used that ? ? _ ? -knowledge to feather his own nest, .z'tns -neces- sary to penetrate -the-shield of secrecy which surrounds the nation's intelligence agencies. ' - }my...attempt :to -do -that is sure 'to bring cries :from the Reagan -aciministratiim- that the . -nation's securityAs heing -put at4-isk. --B615.7.1yzin, ,/ spokesman for tbe.4Off ice of Government Ethics, his.rsaid his aoffice rj examine...the case; but that is not ike1yt.toay to ? the questionto rest- . investigation-lyy,a vongrw- siorai-OVersight committee rnight"..beble'ioget ?at-tliepUth. There have been no;indications so _fai,..boWever, that such lurinvestigation.isbeing , ,consiclerea_: -.A -fietsist- ent Selia-.Abzug;wsichlirnmaxixi a liouse subcommittee on Government anforma- ?;6on .71:Tied 42 ?nirrii1-17 probe Of .the intelligence...agencina9.75..She ran into a government stone wall:and,,eventu- ally. the draft report prepared by her staff was uietly -buried. ? ? . -Enough is known now,, however, about intelligence agency operations to suggest that a full-scale -investigation by Congress may be timely and necessary. - . In his book, The Puzzle Palace," investi. gative reporter James Fiamford has recently documented the extent to which the intelli- gence agenciApitirosit:41..Ftbitelleittits02G13514V28 : CIA-RDP91-00901R000400080001-8 STAT Approved For Release 200fit11g?iA-BppEvrep9p1g900 00080001-8 7 June 1983 HE REGISTER'S EDITORIALS The shameless investor When William Casey sold $600,000 worth of oil stocks last year just before oil prices took a plunge, eyebrows were raised. Casey, as director of the, Central', is2z.....4=s in a unique .position to taste advantage of the -vast storehouse .of interna- tional economic information.. -7 Not :that -Casey .is an to 'worry about appearances, as his long and tangled list...of:question- able .business practices -attests. .But ...the .S.enate :Intelligence Committee, for one, was embar- rassed ? and with good reason, for it had never bothered to look into the substantial stock holdings of the man it confirmed in one of the nation's most sensitive positions. And Casey had blithely refused to put the holdings into a blind trust, as his two predecessors and other wealthy figures in this adminis- tration had done. Pressed to deal with the situation, the CIA came up a year ago with a bizarre solution: Casey would be required to notify two of his CIA underlings about stock transactions; in -turn, they would tell him whether be should be excluded from making partic- ular decisions. So how has this solution worked? On the one hand, it is hard to say. The CIA declines to comment .on whether Casey has disqualified himself from any decisions because of it. On .the other land, it seems to be working wery weDor Casey::Be bought between 41.9 million and $4.6 million of stock in -$1 companies last year, doubling the number :of transactions he was involved in the year before. It is impossible, in this veiled operation, to know precisely how ? or if ? Casey benefited from his unique situation. But there is no -.question about his having broken the government prohibi- tion of any action "which might result in or create the opportuni- ty of using public office for private gain." The CIA, operating ix secret, is not accountable to the public or Congress in any way except through the oversight function of the .Senate Intelligence Committee. The public is still paying the price for that commit- tee's inexcusably poor job of it. And Casey ? by all apnearances ? is still reaping the benefits. _ Approved For Release 2005/11/28 : CIA-RDP91-00901R000400080001-8 A!..-?er FAT Approved For Release 208g1G192-8,Tk1PERUIS9 7 June 1983 WASHINGTON CONGRESSMAN PROPOSES BLIND TRUST FOR CASEY 1-00901R000400080001-8 s' The chairman of a House panel proposed Tuesday that blind trusts be required for CIA director William J. Casey or the head of any major U.S. intelligence agency who has more than $100,000 worth .of -stocks or other securities. In a letter to the Office of Government Ethics, Rep. Donald Albosta, D-Mich. asked for comment on the proposal, which Albosta said he might offer as an amendment to the 1978 Ethics in Government Act. Last week, Casey, who has nearly unparalleled access to secret government economic data, reported that he sold several million-dollars worth of stocks and other securities in 1982. Casey, unlike his two predecessors at the CIA, chose not to put his holdings in a blind trust, which prevents an official from knowing which of his stocks have been bought or sold. Albosta, chairman of the House Post Office and Civil Service Human Services subcommittee, said his proposal "would require the director of each of the four major intelligence agencies _ the CIA, the FBI, the Defense Intelligence Agency and the National Security Agency _ to establish a blind trust if they hold securities worth more than $100,000. "This amendment would prevent the peculiar advantages of their positions, such as access to inside information, from affording them the opportunity to use their government positions for personal gain. ... This approach would recognize the ironic truth that these agencies have the greatest access to sensitive information and are subject to the least oversight by the public, the press and the Congress of any agencies in the government." Last week, Casey's investment adviser, Richard R. Cheswick, said he makes the day-to-day decisions on buying and selling stock for Casey and denied that the CIA director ever gave him information that helped in making those decisions. Cheswick, however, did not say that Casey never ordered him to buy or sell certain stocks. Approved For Release 2005/11/28 : CIA-RDP91-00901R000400080001-8 Approved For Release 2005/11/28 : CIA-RDP91-00901R000 "TV REPORTS, IN 4701 WILLARD AVENUE, CHEW CHASE, MARYLAND 20815 656-4068 FOR 'PUBLIC AFFAIRS STAFF PROGRAM Crossfire DATE SUBJECT June 7, 1983 ..4111 I ' ? 1 400080001-8 STATION LANIv Iv 730 P.M. cIIY Atlanta, Ca. Covert Action in Central America ANNOUNCER: From Washington, Crossfire. Tonight, covert action in Central America. The hosts for Crossfire, on the left, Tom Braden; on the right, Pat Buchanan. In the crossfire, Stansfield Turner, former Director of the CIA. PAT BUCHANAN: Yesterday Nicaragua, the government of Nicaragua expelled three Americans, accusing them of being CIA agents who attempted to murder the Foreign Minister of Nicaragua by planting a poisoned bottle of brandy in his cabinet. Today the United States called that a cock-and-bull story, retaliated by expelling 21 Nicaraguan diplomats and closing down all six consulates in the United States. To talk about that with us tonight, Admiral Stansfield Turner, former Director of the Central Intelligence Agency under President Carter. TOM BRADEN: Admiral Turner, in the light of the poisoned cigars of the past, the dirty tricks that were perpe- trated during the time before you took over the agency, is it conceivable, conceivable, that the poisoned-brandy story is true and that some of the people have reverted -- some of the people up there in Langley have reverted to their old habits? ADMIRAL STANSFIELD TURNER: I don't think it's at all conceivable, Tom, because President Ford, witp George Bush as his CIA Director, issues a direct presidential order in February of 1976 prohibiting anyone in the CIA from even planning assas- sination, let alone carrying one out. President Carter reaffirm- ed that order. President Reagan has reaffirmed that order. It's just against our rules. Approved For Release 2005/11/28 : CIA-RDP91-00901R000400080001-8 OFFICES IN: WASHINGTON D.C. ? NEW YORK- ? LOS ANGELES ? CHICAGO ? DETROIT ? AND OTHER PRINCiE,Ai CITIES Approved For Release 2005/11/28 : CIA-RDP91-00901R000400080001-8 AF,TioT os - WA FHIN G TON TIMES June 1q83 Casey's choice If his 192 financial disclosure statement means anything, Bill Casey, a.k.a. the boss of America's prime foreign economic and political intelligence-gathering agency. the CIA, is one of this country's most successful money managers. Successful enough to raise eyebrows among enemies of the administration if not elsewhere. is there anything moreatissue here. than .azhance for people who tlontlike the CIA to o arbEee the agency hy -raising questions -about the .integriry of ...the man at the top?' We're afraid so. ? - ? Some of...the personal investments that . -have earned .Casey so many hundreds of . thousands .of :dollars have gone TO compan- ies -with subsidiaries in Latin America. a part of the world where the CIA is under- standably active these days. Companies affected by world events also figure in the Casey portfolio?afterall. what stock listed on the New York Stock Exchange isn't affected by world events? It could be that Casey is able to keep these two parts of his life strictly separate. Maybe he doesn't take advantage of his inside information when he makes an investment. Maybe he's not swayed by .the possibility of financial gain when CIA. policy decisions come Up. But it doesn't require malice to find the situation a bit unseemly It's the more unseemly in the light of Casey's .answer to the appearance of con- flict of interest. When the CIA director was riticized for his.profitable sale of ?600,000 worth of ? oil- stocks as the first signs of a world oil glut appeared, he set. up a screening committee to tell him when be shouldn't participate in CIA ..decisions because his investments might be affected. in .other words, the director of the Central Intelligence Agency :arranges to bow out of a large part of the job Ronald Reagan hired him to do because it might complicate -his personal financial dealings. There alternative, of course ? he could have put his investments in a blind trust for someone else to manage. But Casey refused to do that. Much has been made of th.e sacrifices _demanded of people in the public service and of the way conflict-of-interest rules keep talent out of government. There are, indeed, requirements that amount to no more than harassment. But recourse to a blind trust isn't exactly the same as taking a vow of poverty. It doesn't seem too much to ask of -a man in a position as extraordinarily sensitive as Casey's. Approved For Release 2005/11/28 : CIA-RDP91-00901R000400080001-8 Approved For Release 2005/11/28 : CIA-RDP91-00901R00040 ..KASP,VILLI: TUNES .S.E1.2,: (-27)() 6 June 2983 SLI t-; op-ri 4.igeone or IiaJ. I Intel- ..zseyticiarbe. as President Eisenhower was fond 1:11 Sayitg, "'clean -as atound!s too.'; but :they to-tend saise Some . 000: 80001-8 for Mr. Casey And, certain .officials now review his stock transactions for possible conflict *f interest. That came about after Mr. Casey sold3600,000 insollstocks in 1981 -- perhaps-coincidentally-just as the oil ' ? --glut developed in the -woad-market But - ? ? ..saL islhe .According t&txs ftnncaI ktisclosure .director, and another is its Stategeent, obouglit4ind asokltmitriral tzunsel---! er . I * - V. tet vor- liet.,Ansobaganajorastrvancemsi -fficialstiave placed financial noldingsln theclayfperiod,26.10-sept,a :blind _Artist, including President 20,1drittasey:boughtzfran:1;13:inillion-eagannd :Vice president Bush. Why Inizoorethart T2:2?Trill1ioirAn.i.tocks :and .r.Casey chose nottoisn't-clear: otherse=ritieslrarticularly_in?electron- ics and drug companies. ? .? ? 'Since financial disclosure statements arelairly.broad as to detail, it is virtual- ly impossible to -gauge the_profit or loss of Mr. Casey's extensive transactions. - ? ?-?,, - Still, there the 'fact that .1Vir:4Case,y beads-the CIA and that agency :is pre- 'slimed ? to now practically everythiag bout- the -most secret .,_economic, data, ;riot only _in --theA3S.:Arintaeisewhere:5t,is Pretty good,-so it issaid, -in lorecasling econoraic=ancl other trends. So the sztic--, tionmaturally -aris,wriether Mr."Casey is able-to-use -insider" :information to gxidels investments, -or -whether ,:lae.. just has :remarkably. goodanvestrfient _ -counsel V ' :Sea. Carl :Levin, D-Niich., a senior Democrat on a Senate subcommittee with jurisdiction over 'government eth- ics, has urged President Reagan to re- quire Mr. Casey to set .up a blind trust "It seems clear -that the repeated stock transactions by -Mr. Casey while be re- ceives ?information on an on-going basis 4ms. director of -the CIA ?creates the ap- pearance of using.public -office for pri- vate gain.," wrote Senator.Levin in -a Jet-' ter to Mr. Rearnn,21--T-,r-esideritild Mr. .Casey decline, the -senator said he Ziatroduce,legislation to force him islioped the:senator doesn't have to -;-go tharfar. Surely Mr. Casey is awarre that avoiding even the appearance of conflicrf :interest -iiirriportant enough for lairnztowoluntarily .choose to put -his Iinancial7dealings ma blind trust. - _ - Day-to-clay managementr;of bis port- hanctsmlaprivate-adviser. - Approved For Release 2005/11/28 : CIA-RDP91-00901R000400080001-8 Approved For Release 2005/11/28 : CIA-RDP91-00901 ARTTLE APPEARED. -) O PYIE -26 NE WS WEEK 6 June 1983 Reagan's Hidden Agenda The U.S. strategy is to split Nicaragua's leadership. By JOHN WALCOTT, Chief Diplomatic Correspondent What future does the Reagan Pchrink- tration have in mind for Nicaragua? Despite all the rhetoric about merely trying to harass the Sandinigtas or halt the flow of arms through Nicaragua to rebels in El Salvador, the unstated but obvious goal of U.S. coven aid to the contras is a change in Managua. As departing Assistant Secretary of State Thomas Enders has said for a long time. U.S. officials want to "get rid" of the Sandinistas. ?Senior L.T.S. officials concede that even with offensives under way on both northern and southern fronts in Nicaragua, the contras are unlike- ly to defeat the far superior Sandi- nista Army on the battlefield and march into the capital. Instead, what American policymakers are ? hoping for is some combination of the following: ? ? Mass desertions from the Nica- raguan Army to theaontras, espe. cially on Eden Pastora's southern front. How much fantasy tinges this scenario ramains to be seen. Contra leaders. like Alfonso Ro- belo and other officials from Pas- tora's Democratic Revolutionary Alliance (ARDE) have told U.S. officials that only Commander Zero, with his mystique, can in- spire such defections. His force al- ready includes a number of former saraiinista soldiers and pilots. ? Mass disgruntlement with the Managua regime in the country- side. Sanelinista economic poli- citc?especially food rationing?are un- popular, and the junta's ill-mannered treatment of the pope during his recant visit provoked anger among die deeply religious peasants. a Continued support for the contras from Honduras and, at least tacitly, from Costa Rica and Panama as well. ' a Rifts among the Sandinistas under pres- sure of contra attacks in the n orth and south. The last element is the crucial one.. 7o sonic American diplomats and intelligence officials, the history of the shrinking direc- torate suggests the Sandinistas are low on solidarity. U.S. officials apply a sliding scale to the Sandinistas. The hardest cases? those whom the samiaictrati on thinks abso- lutely have to go?include Tomas Borge, Daniel Ortega, Enrique Ruiz and Bayard? Arca. Minister of Agriculture Jaime Whee- lock and perhaps Defense Minister Hum. bet-to Ortega and Foreign Minister Miguel D'Escoto are thought to be salvageable. What the administration is really after, then, is a combination of external and inter- nal pressures which will set off another earthquake in Managua. toppling the hard- line leftists and clearing the way for a coalition government that would include members of the present regime, some pri- vate-sector types and contra leaders. That vision is shared to some extent by ARDE, some Pastora aides claim, but it is unclear whether the Nicaraguan Democratic Force (FDN) in the north has the same goals. Some U.S. officials fear that the FDN's goal is another blood bath, followed by a right- wing revival, perhaps even involving Anas- tasio Somoza's son. FDN leaders, of course, deny any such impure thoughts. STAT 000400080001-8 Caaanattle= What are the acids that any of , this will come to pass? There were disputed reports last week that CIA chief William Casey saw success by the end of the year. That seemed unlikely. U.S. officials have been heartened by the contras' support in the countryside and by its early military credibility. But they note that so far the Sandinistas have-mainly thrown the ragtag Sandinista militia, not main-force Army units, Again gt the insurgents (in part because the Saniiinistas hope local casualties ? will spur opposition to the contras). They also say that additional Soviet or Cuban aid, especially helicopters, could change the odds drastically. "Frankly, we've been sur- prised at bow well the insurgents seem robe doing," says one U.S. officiaL "But nobody with any brains would bet any money on them right now." The American strategy, itself, has had one serious defect. Instead of fracturing the Sandinistas, out- side pressure, especially from for- mer supporters of the Somoza dic- tatorship, is likely to inspire Nicaragua's leftist rulers to set aside their differences. If the Unit- ed 'States increases aid to the con- tras, Nicaragua's "freedom fight- ers" will also look more like American puppets, both to other moderate Latin American gov- ernments and to ordinary Nicara- guans. It will be difficult for the insurgents to find the wherewithal to take on the Nicaraguan Army and still keep their image as the spearhead of a popular insurrec- tion against Sandinismo. 'That particular Catch-22 could hobble the counterrevolution long before it brings anybody down. ' Approved For Release 2005/11/28 : CIA-RDP91-00901R000400080001-8 Approved For Release 205111128 : C 6 Jime 1983 UP & DOWN -- WALL STREET By ALAN ABELSON ? How naive can you get? We always thought those initials stood for Central Intelligence Agency. But now we know. better. They really stand for Casey Investing Again. Thanks to the compulsory disclosure of our leading civil servants' finances, we can report that Mr. Casey, -director of the CIA, in other words, the nation's Supersleuth, loves to trade stocks and bonds. What's more, he's very good at it. His timing particularly is great. Last August, for? -example,- he was among_Alfe first _toliear the mighty roar of the bull, and they didn't-have to ring the bell -more than once. From -August:2.0 through the end of :that memorable, fantastic month, he made no fewer than 16 buys, in the process -pouring something be- tween S410.000 and over $1 million into the market.. Moreover, be also snatched up three-quarters of a _ million bucks worth of Treasurrbills. So much for the- sneerers and scoffers who objected to Mr._ Casey's appointment on the grounds be lacked commitment. He'd have made an even greater commitment if he hadn't run out of dimes calling his broker. . What's more, Mr. Casey grabbed the bull by the horns and rode its wonderful charge all the way up, continuing to buy vigorously right-through December. In that critical stretch from late August to late Septem- ber. he put something in the range of S1.5 million and 5.2.2 million into the market. That's the kind of fellow we want running the spy store:, nerves of steel, no shivering and shaking, no tremulous trembling before the threat of nuclear war or a .100-point correction_ . We've not a scintilla of doubt that the small- minded souls in Washington, those cocktail-party cynics, who are always selling America Short. will carp that Mr. Casey can't tend his portfolio with such diligence and still discharge his obligations as head of the CIA. Well, we just wish they'd stop squawking long enough to think it through. To begin with, in his job, Mr. Casey is, of course, intimately involved with the country's security; so ? why shouldn't he be intimately involved with the country's securities? And, too, his trading activity IA-RDP91-00901R000400080001-8 STAT reflects 4 blUe ci MT. Lasey tnat the general pdblic, rarely glimpses. To the overwhelming majority of the ' citizens of this -great nation, he's a tough-minded, hard-nosed, strong-armed, two-fisted., iron-stomached, sure-footed man. But there's a touchingly sentimental strain in Mr. Casey as well. Remember, he was for- merly head of the SEC, and he still has warm feelings for-the many friends- on Wail. Street he made while in that post. Every chance he gets, accordingly, he tries to throw a little business their way. And, in turn, he's a beloved figure on the Street, where he's affectionately known as Churner Casey. All told, Washington Editor Tom Donlan reckons, Casevkiid 136. separate transaciions last year in securi- ties. As you might.expeet_foranyone_connected with a spook agency, he's -very much interested in -technol- ogy. Hence his -purchases of , MCI _(the CIA in the normal c.ourse?Taf business does a lot of phone tapping, so it's natural that he'd be attracted to that feisty outfit that's giving AT&T a run for its money). No surprise, either, what with the world going to pot, a global guinshoe like _Mr. Casey would have a weakness for drugs, ..and his portfolio was chock full of- Abbotts, Meisks .and Bristol-Myerses. Nor was he put off by the Tylenol scare?he -knew from secret reports that the epi- sode wasn't, as widely rumored, part of an international conspir- acy, so he bought Johnson & Johnson.- - _ . CIA people, of course, are always sending out messages to the far corners of the earth from little radio transmitters tucked away in the fillings in their teeth, so Mr. Casey's apprecia- tion for communications is also no mystery, and, 'we're pleased to report, he made a very pretty penny in Capital Cities. And, of course, motels -and motor inns, every addict of spy stories knows, are favorite drops for secret weather forecasts for Newark, Miami and other ex... otic places. Which explains why Mr. Casey picked up some shares of La Quinta Motor Inns and good old Marriott. Com- puters are big these days in the Company, for simulating wars in Central America and playing chess while -waiting for crises to erupt (there are slow stretches at the CIA; sometimes you can go for days without a crisis erupting,- and,.. then, wouldn't you know!, you get three-four at a time). Hence his .holdings of Digital Equipment. Mr. Casey also was a buyer of Paradyne, a company that's subsequently come under some- Approved For Release 2005/11/28 : CIA-RDP91-00901R000400080001-8 2x4.. hRTIcLE EARTIB3roved For Releawler20,05/11 1 fala OAADE9/1.0 0 901 RO 0 NIA) ON pE3 6 June ?1983 Asides The Acid Test Sen. Levin of Michigan has written President Reagan urging that CIA Di- rector William 3. Casey. be required to put his securities holdings in a blind trust to avoid any appearance of impropriety in his stock-.dealings. Mr. Cakey's latest financial disclosure form had revealed that his account, actually handled by a financial ad-- viser, saw a lot of .action last year. critics werett..placated much by a -.statement from the adviser, re- leased through the CIA, that?said Mr. Casey had never provided any infor- mation or special analyses that could be used making _investment deci- sions. .. Of course, Sen. Levin's concerns about using public office for private gain are justified, so much so that we would like to see them applied to leg- islators as well as bureaucrats. On the other hand, a case could be made that the director of the CIA, of all federal officials, should not only be allowed to trade securities on the basis-of the in- formation he has, but actually be re- quired to do so. In the vernacular, it's called putting your money where your mouth is. STA 080001-8 Approved For Release 2005/11/28 : CIA-RDP91-00901R000400080001-8 Approved For Release 2005/14118NRIATIM91- 6 June 1963 0901R000400080001-8 STAT ASC's Carl Bernstein reports that a Rouse Foreign Affairs Committee is expected to vote tomorrow to cut off funds for covert CIA aid aimed at crippling the Sandinista government. Senate committees already have voted a simliar cutoff by September 30, but Bernstein reports that cdagressmen respomsible for overseting the CIA are skeptioaa about today's charges by Nioaragua. BERNS7ZIN: Despite heightened congressional concern about the CIA's activities in Centraa Amerioa, those coagressmen most familiar 1...ith the agency's operaticas, members ci the House and Senate latelligeace Committees, have expressed skepticism that the ageacy would engage in any assassiaation plots. Such action, they mote, is forbidden by law, and the danger to the CIA, if it was fouad to" be secretly plotting murders of NicaragUan leaders, would he enormous, interaational embarrassment, a- probable cut-off funds Eor dozens of covet operations arouad, the world., .Ear?reachiag -investigations, and for the Reagan admiaist.ration extensive political damage. but among members of Coagressioaal -intelligence Committees, as well as members of the intelligence gatheriag community there was. little doubt expressed that officials of the embassy staff in hanagua have exteasive contacts 1-ith the Sandiaistas' political oPposition. at of the S19 million in covert operations against the Nicaraguan regime is earmarked icr building popular support for an opposition f-70mI in the country, but there has been no suggestion by congressional sources that these plaas incluoe assassination attempts. CIA Director William- Casey, say members of Congress, has become increasingly angered by questions raised on Capitol Hill about covert activities in the hemisphere, leahing to a recent outburst in whicn congressmen say Casey at then, quote, 'Who lost Cent:-La AmeriCE is goiag to he the big issue in the next presidential election. This is tein for Nightline in Washington. Approved For Release 2005/11/28 : CIA-RDP91-00901R000400080001-8 Approved For Release 2005/11/28 : CIA-RDP ART' CI Jr?::. _ r.a.= ,t4 1-00901R000400080001-8 STA" WASHINGTON POS1 6 .7 tine 1983 LETTERS TO THE EDITOR Mr. Casey's Portfolio , The front-page story June 1 . misrepresents William ti. Casey's recent investme*t activity and .needs to be-corrected. ? -- -I have provided. Mr. Casey .and his faniily with professional investment- counsel services for- approximately 20 years:During this time, I have had discretion ? to manage his investment with- out consultation with him. - Investment changes that -were ? ?made by .me in his accounts were based on our firm's judgments - that were consistently applied to our other clients' portfolios. There - have been no instances whatever .during MT. Case's service as di- rector of the Central Intelligence -Agency when he has provided me with any information that could I have been used as an aid in mak- . ing these decisions. , In the third quarter of 1982. a. large sale was made of a security Mr. Casey had held, for over 30 years. This sale was made to im- prove the safety and diversifica- tion of the portfolio. Approxi- mately 40 percent of the proceeds were used to purchase other stocks and 60 percent to buy bonds. This activity made for a large dollar value -of transactions. but. much of this simpiy reflected the rolling over of temporary short-term securities. The stocks and bonds selected by us were deemed as appropriate for his family's investment, objectives. RICHARD R. CHES WICK eneswick, Gillespie and Co Greenwich, Conn. Approved For Release 2005/11/28 : CIA-RDP91-00901R000400080001-8 Approved. For Release 2005/11/28 : CIA-RDP91-00901R000 ARTICLE. 1. ..._ ? !I_ WASHINGTON TIMES 6 June 1983 SOCIETY / Betty Beale Ardeshir Zahedi, America's greatest host while posted here as the shah of Iran's ambassador, blew into town for two days, saw friends at the State Department and in the Senate, vis- ited his former social secretary Jaleh Yazdan-Panah of the ? prominent Iranian family, who lies seriously ill at Georgetown Uni- versity 'Hospital, and attended the - -OSS dinner at the Washington -1-111tori,where former CIA director - andambassador tairanRidhard ' Helms was honored with.the Bill Donovan Award.. Zahedi, looking even more full ? ?, of health and vitality than on his ' ?last yisit, also attended .Henry Kis- -singer's birthday bash in New : York. At the OSS-dinner he was the guest of noted oilman John Shaheen. We all remember Shaheen's efforts to start a newspaper in the Big Apple, the New 'York Press, and the divine eight-day voyage to Bermuda he threw aboard the Queen Elizabeth 2 to publicize the venture, as well as that other time he chartered the QE2 to take 1,200 friends to the dedication of ? his oil refinery in Newfoundland. c Those were the glamorous days. Honoree Helms spoke for only 10 minutes at that dinner, but devoted all that time to America's need for in-depth institutes to study and understand Iranian, , Soviet, etc., leaders and methods. "It's open knowledge in our gov- ernment that we do not know how the Saudi royal family arrives at its decisions. The same applies to the Russian leadership," he said. 400080001-8 Approved For Release 2005/11/28 : CIA-RDP91-00901R000400080001-8 ARPCLE APP ON PAG roved or Release 20101411Wia-VA-MDIES1-00901R00040 5 June 1983 : . - EN1114136L,*147:t..:4' LLC ? - Approved For Release 2005/11/28 : CIA-RDP91-00901R000400080001-8 ARTICLE ON PAL ? By ALFONSO CHARDY-- 1- Herald Washington Bureau, . Approved For Release 2005/1E&ICATM91-00901R000400080001-8 APPEARED 5 June 1983 olicy rale, to Preparation. of ? a - reluctant V V American public for increased U.S. --military involvement in Central America, perhaps even including the dispatch of U.S. combat troops. ? An -end to the interagency ASHINGTON president T T Reagan and his inner-circle of advisers have taken di- :: rect control of -U.Sapolicyxin Ceti, tral America in a move that may - toughen the administration's role in the turbulent region. - ?1 A hardened position would be clearly in tune with recent Reagan _rhetoric about the priority he places on stopping Marxist subversion, in Central America. Since March, the President -has made six major speeches that touched on the issue, including an exceptional . appear- ance before a joint session of Con- gress April 27 in which he warned . that the region's violence could threaten "the safety of our home- ' land." ? Speculation that the tough 'Rea- gan position will get tougher gained currency May 27 with the ouster of Thomas O. Enders as the State De- leftovers.' At the same time,-ad- ministration officials announced--apartment's chief Latin American ! decision to send 100 additional U.S. 'military advisers to Honduras and leaked a proposal to send 20 or 30 -others to Guatemala. Some State Department officials said these developments could re- flect a desire on the part of some White House officials to prepare public opinion for an escalation of US. involvement in the region. Hard-line White House and Pen? tagon officials contend that only an increased and more active U.S. mili- tary presence in Central America would check the advance of leftist guerrillas in El Salvador and the growing military buildup in Nicara- gua. Privately, these officials say they believe that only a dramatic in- crease in the number of US..mili- tary advisers in El Salvador --from the present 55 to 100 or .200 will' bring about victory. feuds-on Central American policy . that sometimes -created the impres- sion 'both here and abroad that the United States was confused on how to deal with Central America. ? New tactics in dealing with Congress, which has failed to enact Reagan's Caribbean Basin Initiative, cut part of his requests for military assistance to El Salvador and tried , to curtail CIA assistance for anti- Sandinista guerrillas. -? More personnel changes. The day.,Enders'_ departure was announced. the Pentagon and State Department released a strongly worded background paper on Sovi- et-Cuban-Nicaraguan ? meddling in _Central America. Enders was said , to have opposed it as "warmed-up specialist. Administration officials . said Reagan personally ordered En- ^ ders' dismissal. . Reagan has since stressed that Enders' dismissal as assistant secre- tary of state for inter-American af- fairs did not mean a change in poli- cy. "Contrary to some reports... we are not changing the policy outlined to the Congress," he said Wednesday. ? But interview! With half a dozen State Department and White House officials indicate that Enders' re- moval could result in any or all of these developments: ? ? More active arid overt support for pro-American governments in Guatemala. El Salvador, Honduras and Costa Rica, as well as the CIA- backed rebels fighting Nicaragua's' leftist regime. Approved For Release 2005/11/28 : CIA-RD ? Some of the Pentagon experts also argue that .a limited number of .advisers should be given permission to accompany 'Salvadoran units on combat operations in guerrilla-con- trolled areas. This differs sharply with Enders' formula for El Salvador. He sought not a military victory, but only enough U.S. military aid to help the local government hold of the rebels while it pressed for social, political and economic reforms to eliminate the roots of the conflict. Although some of Enders' friends believe his removal does not spell any major change in policy ? "It can't go any further to the right than it already has," quipped one of them ? many say that his depar- ture clears the decks for harder US.initiatives. . A State Department source sym- pathetic'. to Enders said that "cir- cumstantial evidence" suggests that Reagan may be considering deploy- ing U.S. combat units in Central America ? not necessarily in the actual conflicts of El Salvador or Nicaragua but on the periphery, - perhaps Honduras ? to act as a de- terrent force. ',Pentagon sources said that such a deployment would only be likely in the event of war between Nicara- gua-a.nd Honduras or a dramatic in- crease in the number of Cuban mili- ,tarY personnel in Nicaragua. ? A legislative aide to an influential Democrat on the Senate Foreign Relations. Committee commented that Enders' removal and a Reagan statement May -27 "clearly indicat- ed" to him that the White House was considering deploying U.S. 'troops. Although Reagan had steadfastly ruled out the possibility of sending combat troops -to Central America, he seemed to change his stance in a chat with reporters just before the Williamsburg summit at the end of P9VM0901R000400080001-8 CON171Vrn-n Approved For Reletsfyyp5k111/UADC-FpPrcilip990 400080001-8 5 June 1983 Casey still wheeling Casey wcinrair accept a blind trust last year to handle his $3 million worth of stock in two dozen corporations when he was on the national carpet for dubious market wheeling-and:- dealing, there- isn't much chance that he will, clean up his act after mere reports -of new high-rolling. Casey isn't like any other bull or bear in the market He heads the Central Intelligence Agency and is positioned to receive secret and sensitive infor- mation With economic implications. His predecessors es- tablished a blind trust for their private investments so there would be no hint of conflict that they were parlaying secret government information into stock market bonanzas. But not Casey. When the heat was on his stock transac- tions, he set up some Mickey Mouse arrangement that put a couple of CIA subordinates in the position of watchdogging his market activities. Imagine a CIA underling telling his boss not to pounce on a possible market fortune for the sake of ethics. That likely didn't happen when Casey joined the bull market last year with transactions worth a few million. Asked whether Casey subordinates ever waved him off a stock deal, a CIA spokesman wouldn't say because such information is available only to congressional overseers of the agency. How convenient. Casey, formerly President Reagan's 1980 national cam- paign director, got his CIA post on the basis of the spoils sys- tem. While little was expected of him because he lacked knowledge in the intelligence field, the people at least might expect his appearance of serving them more than himself. There simply can be no blind trust in Casey until there is a blind trust for Casey. Approved For Release 2005/11/28 : CIA-RDP91-00901R000400080001-8 Approved For Release -5 5 June 1983 William Casey's ethical myopia William Casey's :private business dealings have caused repeated trouble during his tenure 25 CIA director. 'Within 'months of assuming the post, he was accused of failing to reveal numerous business ,dealinr in a required disclosure statement. The -Senate Intelligence - Committee investigated and Confirmed many .f the, allegations:. Casey lailad to .report invesinnen1s4oldnore than3250,00D, debts of .early S-501400, four :lawsuits;r,servicp. ..on the ..boards of corporations and foundiatikandenore lithan '70 legal clients. ?Nonetbeleisibe -committee included, 'Casey was not ?-imfit'' o serve. Taint -Faise That, iii.ittrerhapS still too Itind in light of: more recent Inforinalloh7--- ? ? tr -Casey's position gives tim aceessaidssonie-ioVItih most cicsely-beithinformation onlhe "World ?econo- my. But unlike his -two :predecessors, Casey de- 'dined to put his investrnents in a blind trust. In his disclosure statement tor 1982, reported last week, .Casey .revealed that be had sold and purchasid _millions of dollars in stock, during 1982,' including securities in sensitive indussi.sucla as oil, com- puters and airlines. - _ ? TAT 1R000400080001-8 The appearance of conflicts of interest ? and the damage it does to Casev's credibility ? is obvious, except to the director and his aides. His associates say they help. Casey avoid :ethical problems by screening hi., public dutieS.?They steer him clear of decisions ttliat would create .a conflict of interest Frith tiS stock hole. ingc Now thars siovel: a public officialiahoiding public .ciuties that might conflictiohtti pilvatetiusineg:. which he refuses to xielinciiiishespeaki.aiazi:.,z, 'uncommonmtrogance oun- tQsseynis imperiouitirmi ? Wnalaime.*?-?.,? Casey has turned The ethics and -philosophy of government service upside down Bevintered life witlinEty knowing it wouid recpare.Anancial sacrifice. His appropriate -courseis To do what others have done ? employ a .blind trust or other mechanism to avoid private dealings that conflict -with .public duties. if Casey 1s unwilling to make :that comnfittnenc-he is unfit to serve, and should leave public life. . Approved For Release 2005/11/28 : CIA-RDP91-00901R000400080001-8 Approved For Release 2005/1-11280:p?14,-Epp91709901 ? 5 June 1983 R000400080001-8 .??? Casey on Wall Street 'There's a disturbing entry in the financial. disclosure . :report filed the other day b3.:S.1ire.ctor-Willipm Casey. It turns out nation's intelligeocetideft.mas doing-a lot more last year than-supervising our network ,of spies abroad. /was .extremely-'busy On4.-Vall Street, -Ibuying,.and selling tocks valued.ateseveral inillionidollars .and, ending -the -year ith-as.setslued at *meth/y=3re than382 'nil lion. tirnillionairesareinutaaarity.intiieisiteaganadrninis- , ti??? onporany.:previous tration torthat -matter. Most. op-officials-comefrom big.Mry jobs in 'private life -and" --take-a-sharp pay cut when they enter government service. But the general practice is for cabinet-level -officers to put ? their wealth in.trtusdtrusts over which they -have no control, -as long as they are working for Uncle Sam, to avoid any -conflict of interest Not so with Casey?and he's one official who is wide open for such conflicts, given his access to secret economic information that could give him the inside track on what stocks to buy or sell. The CIA assures us that it is keeping tabs on Casey's dealings and that everything is above board. Sorry, but such in-house scrutiny of the boss in a closely knit outfit like the CIA doesn't impress us. Casey should keep his hands out of the -stock market and concentrate on the job for which he is being paid. Approved For Release 2005/11/28 : CIA-RDP91-00901R000400080001-8 Approved. For Release 2005/11/28 : CIA-RDP91-00901R000 Bi.Tril,10 NEWS (NY) 5 :lune .19E3 STAT 400080001-8 'Self-Policing at CIA in 1981, it was revealed that Cen- tral intelligence Agency Director VB. liarn J. Casey had not placed his pri- vate investments in a "blind 'trust" when be took over the leadership of the agency. President Reagan and other high offirin'ts with access to sensitive information have set..up-sucb trusts to avoid:any-appearanceof.con- flicts -of interest. - in spite .of valid '=.c"iticism, Casey and his -wife 'bought stocks worth between ;:a.9 -million and 44.5 million. Their outside :income was at least '2478,600 and possibly Z159,1380, mostly from dividends and capital gains Ivir. Casey is one of a handful of people to have access to the world wide monitoring system of the CIA_ He would be one of the first persons in the world to know of developments that might .aflect the stock market ? for example, an oil glut or shortage, crop disasters or revolutions. In Mr. rav.Py sold $600,000 worth .of ail -stocks, a move that proved to be per- ceptive as the oil glut developed and the price of oil stocks :plunged. Mary other investors, of course, saw the oil glut developing and sold out in time, and it is not known whether Mr. Casey had any inside information. But the situation carries an obvious.possi- bility of a conflict of -interest. ? Vhile Mr. 'Reagan and others have set up blind inists, such a course is unfortunately not demanded of mem- bers of the administration. in a ges- ture toward regulaticm., the CIA has now established a "scregning" mr- tangetnent -under which senior :Ca offirils check over-Mr. Casey's stock 'tr &inactions .for any of interest.. . This, dioweve% 'Is a kind of -self-: policing -that -would be considered Inivekable if it -were allowed :in privi- ate corporations. .Corporate drams are barred from tr-tMing stock trans- actions based on "insider" informa- tion, and their actions are reviewed by an independent agency, the Securi- ty and Exchange Corrtniccion. Mr. Casey, of course,- is not sup- -posed to use any information not in the -public domain for his own private gain, and we are not suggesting that be is doing so. But with the worldwide network of the CIA at his finger-rips, Mr. Casey -must have just about The -best stock advisory service in the ? world. To -avoid ? any appearance of using the CIA as his own private -pre- serve, Mr. 'Casey should follow the example of his predecessors as direc- tor and of other members of the administration and place his invest- ments in a blind trust beyond his di- rect contra - . ? ? Approved For Release 2005/11/28 : CIA-RDP91-00901R000400080001-8 Approved For Release 2005/11/28 : CIA-RDP91-00901R000400080001 LINCOLN JOURNAL 6, STAR (NE) 5 June 1983 +4????1?????? ,?Error by the Mighty Casey ?ratably ncrhe of us knows enough to Nevertheless. Casey apparently insisted pass fair judgment on the professional per- on keeping personal control of his own in- for-mance of Reagan campaign chairman vestments, and President .Reagan foolishly William J. Casey as director of the C.,e.nir..21_. allowed ? and yet allows ? him to get Intelligence Agency. He may be doing a Away with it Two of Caser's subordinates great job, or he could,hentien: Li. the CIA are supposed to stop him from Bin anyone with 41- Eck of ordinary An. .making decisions that would create .a con- ? sight }mows Casey snointrei .beahowedl.n.; of interest. 'Tlaat'S rich. -.Because there is mo aaw or regulation Nestment portfolio-whilegoccupying.Suchmequiring, the CIA chief to turn .control of ,sensitive national intelligence position. over to a blind trust. the na- tion:having relied on .pastexecutives to do President Reagan .and several cif Its ac1:7-? 74.he.zight.,.and honorable thing, -we suppose minisTation'S top .,associates-who make. _. onomic policy nuickly established blind there's no alternative now but to peg such a ec a trust for the management of their private "w to the hooks' investments. So did Casey's two immediate Michigan Sen Carl Levin Friday said predecessors at the CIA. Both ? Stansfield he'll introduce the appropriate legislation. if Turner and George Lush were well aware 'President Reagan ?fails to get Casey to see that whoever is the nation's. intelligence .1h e.light propriety.701 czar has access to a wealth of secret inf or- Levin should prciceed regardless. The mation on which private millions could be Congress needs to protect Casey from him, made. self. Approved For Release 2005/11/28 : CIA-RDP91-00901R000400080001-8 Approved For Release 2005/11/28 : CIA-RDP91-00901R TEMPLE TELEGF...4,..M (TX) 5 June 2983 STAT 0400080001-8 ,CIA Chief Shouldn't Play Market' 'Government officials should not ing a profit; our system is based on it. profit financially from their public .But there is something wrong with positions. At anytime when there is a trading stocks on inside information conflict of interest between public re- gained from employment by the gov- sponsibility .and private proEt, the eminent. government 'official should either As CIA director, Casey sees all put the public interest first or resign kinds of secret documents regarding before -reaping the_private :reward. sensitive negotiations and contracts Central intelligence Agency Dire-. that .could influence stocks. Anyone ctor William Casey has -released a who has traded in stocks knows that financial .statement that shows he it is difficult to remember when such traded heavily in stocks and tither information, buried in the memory, securities in 1982. Casey is a former may surface as a hunch to buy this or chairman of the 'Securities and Ex- sell that stock. change Commission. lie was a Wall The problem. at minimum, is the Street lawyer. He has the stock mar appearance of conflict of interest ket in his blood. Casey's two immediate predecessors Last year. when the stock market as CIA director. Stansfield Turner began to move upward. it would have and George Bush. put their portfolios been hard for a man who followed the .in blind trusts. Casey should follow ticker tape by instinct not to buy and their example or. if he prefers to play sell. There is nothing wrong in Mak- the market, do so as a private citizen. - ? Approved For Release 2005/11/28 : CIA-RDP91-00901R000400080001-8 ieF,TIC-LE APF .ftEproved For Release 211111A641-RDP91-00901R000400080001-8 5 ?June 19S-;, Central America: Point of Ui tiorward or backward, our belly will hurt By TOM POLGAR In 1964 I had the privilege of talking about Vietnam with the late Sen. Rich- ard Russell of Georgia. then chairman of the Senate Armed Services Committee. Russell said the situation of the United States in Vietnam reminded him of a scene he once witnessed back in Georgia. that of a cow hung up on a picket fence. The cow could not go forward. she could _ - not go backward, and all the time the picket was hurting her belly. Some 10 years later, as -I was climbing to the roof of the American Embassy in Saigon for the helicopter ride that would terminate my service in Vietnam and end two decades of intensive U.S. engagement in that distant part of the world. I recalled the words of the late senator from Geor- gia. Now in 1983 the United States again seems to be hung up on a picket fence. this time closer to home. in Central Amer- ica. We cannot go forward and seek to clear up the situation through a massive military intervention. because Congress and public opinion would not accept such a solution. We cannot go backward and disengage from El Salvador, because we have elevated that small country into a test case of U.S. prestige and resolve and into a symbol of U.S. determination to re- sist the spread of Marxist-Communist re- gimes in Latin America. In the mean- while. while we are seeking a politically acceptable settlement of the civil war, the pickets are hurting our belly and the pain may be a continuing one. The recently announced transfers of Thomas Enders. assistant secretary of state for inter-American affairs, and Deane Hinton, U.S. ambassador in San Salvador, and their replacements by peo- ple without experience in their respective new areas indicate the administration's dissatisfaction with the progress in reach- ing a solution to the problems of El Salva- dor through diplomacy. Unfortunately, it suggests also that the professional objec- tivity and caution of the career Foreign ' Service officers will not be allowed to stand in the way of attempts to resolve the situation through more direct and less conventional means, including use of what the press likes to call covert action. That is covert action? A pragmatic /definition of covert action is this: A government effort to fulfill na- tional policy objectives abroad through in- telligence channels. While the term "covert action" may be new to much of the American public, the concept is as old as written history. It is one of the several means available to a government for the implementation of its objectives. No major power would ever preclude the use of covert action as a mat- ter of principle. The "Trojan horse" ? the introduction of Greek soldiers into the fortress town of Troy by hiding them in a large wooden horse, ostensibly a gift to the town ? was an early example of effective coven action. More recent examples on which there is considerable literature, as well as contro- versy, include the-British-American oper- ation to oust Prime Minister Mohammed Mossadegh of Iran in 1953; the 1954 CIA project to remove from power the elected president of Guatemala, Jacobo Arbenz; the Israeli rescue of hostages in Entebbe; the Soviet manipulation, through numer- ous front organizations, of the anti-war sentiment, particularly in Western Eu- rope, and the CIA's "secret war" in Laos. The Bay of Pigs project remains as are- minder of all the things that can go wrong when an operation is based on false as- sumptions. Perhaps because many people confuse covert action with "dirty tricks': ? which can but need not be part of a spe- , dine covert action project ? or perhaps because they are opposed to the objectives 1 that the government seeks to attain ! through covert action, there appears to be ' a certain amount of opprobium attached to the concept. Many, whose patriotic and7 anti-Communist 'motivation cannot be questioned, feel uncomfortable about cov- ert action and are concerned that its use - invokes difficult questions of morality, in- tegrity and perhaps also of law. Perhaps so, but in these respects covert action is no different from other means of policy implementation, 'The biblical com- mandment, "Thou shalt not kill," is re- flected in all of our religions and is firmly anchored in the criminal laws of all coun- tries. Yet there are many circumstances in which killing is excused, tolerated. al- lowed. encouraged. ordered and praised. It cepends on who does the killing, on the circumstances, on motivation and a whale series of other factors. On the other end of the scale. sexual activity, the source of life, is clearly encouraged and tolerated in certain circumstances while deemed inde- cent. illegal or prohibited under others. Covert action is not immoral or illegal. It is neutral. It is an age-old technique by which governments seek to influence events and alter conditions in their favor. The policies being implemented by covert action ? and the specific covert action or actions being utilized ? may well be im- moral or illegal' or both. The 17th-Century British poet, John Dryden, wrote: "Treason never prospers. "What is the reason? "Why, if it prospers "None dare call it treason.- lt roes something like that with covert action, too. If it is successful. there are few complaints ? except from the de- feated side. If the covert action fails, or goes on too long, or reaches dimensions that preclude secrecy, then it will attract controversy and condemnation, with op- ponents caring little whether they are beating the donkey or the saddle ? that is. the policymaker, the operational con- cept or the executing agency. .,c0A.,10-Urap, Approved For Release 2005/11/28 : CIA-RDP91-00901R000400080001-8 ARTICLE APPEAlifiloroved For Releasei\tiCiag1WiK41A-RDP91-00901R000400080001-8 ON 'PAGE /C,.. 5 June 1983 CL4...-deepen,s, U.S. iiii6:610:*er4.- By ALFOSO CHARDY And JUAN 0. TAMAYO ' Herald Staff Writers WWASHINGTON ? They were? known as the CIA's "Fami- ?I ly Jewels," the private 'sins- whose public airings virtually -de- stroyed the agency's ,capacitrIfor covert action in the mid-1970s. Eight plots to assassinate .+Fide1:3 Castro. -Destabilization !of Salvad9r, 'Allende's administration in -chile: The Bay of-Pigs. The overthrow,bf the Diem regime In Vietnam-. Snooping on , American students. Opening U.S. mails. ? ' Throughout the late.11970s. -the 'CIA's strong-arm specialists :moped. retired early or were fired ,as a 'post-Watergate Congress shined the bright light of morality on the dark corners of the spy underworld. But now many of the CIA's cov- ert action experts have come in from the cold, lured out of inactivi- ty by President Reagan's vows to pull up America's socks in a world- wide contest with the Soviet bloc. ? Reagan's "new" CIA has launched at least 11 covert cam- paigns since -he walked into ?the White house, by far the highest number since the agency's salad -days in the 1960s, U.S. intelligence sources say. The biggest of them ? in fact, the biggest CIA operation since the Bay of Pigs ?is in Central Ameri- ca, where Reagan sees leftist sub- versions being fueled by Nicaragua. Cuba and the Soviet Union. And now;, public disclosures of the Central American ccvert opera- , tion have brought new criticism, of the CIA. The controversy has 'grown into one of the most heated in Washington today. Liberal congressmen want to squash the CIA campaign. There are fears that it could help trigger a war between Nicaragua and Hon- duras. There are high-sounding ar- guments that the world's leading democracy should not stoop to international skulduggery. ? .,Administratiotrof ficials adaman defend the covert operation, say- ing it is an essential part of a three- legged campaign to stem-the spread of Marxist insurrection in the re- gion between -the Panama Canal and Mexico's oilfields: - "The iatiwitign cornbines U.S. mil- itary aid .to US.-allies fighting lef I- ;1st- sutiversionALS;economic aid to :erase-the .social 'Inequities that fuel revolutions, and :CIA' funds to at- -tacrtlielperc6ved roo'ficif much of "the" trouble '-.-7z.XIcaragua's leftist SandiniSta-government.,. In the past-two years, Reagan has pumped more than41.11illion in eco- nomic aid and $218 -Million in mili- tary assistance' into-Central Ameri- ca ? not counting the 819.5 million for the CIA operation. The number of U.S. military per- sonnel stationed in Honduras will soon :rise to about 300.-Fifty-five U.S. military advisers--are stationed in E1,Salvador, and Reagan is re- portedly considering *ending up to 'least 50 cithers-to Guatemala. Even Costa Rica.; which doesn't have an army, 'has received U.S, military The. economic ..aid requests have "hid easier,sailinIhrougn-Congress than proposals:for, military assist- ance.' While agreeing largely on the Marxist threat to Central America: members of Congress dissent heart- ily over Reagan's-accent on military assistance. Unwilling to face future charges that it "lost" El Salvador, Congress grudgingly -approves only part of the Reagan requests for military aid ? and wraps them in a spider's web of demands for progressive re- forms by the Salvadoran govern- ment.. In recent weeks, the dispute over Reagan's approach to Central America has spilled over into the executive branch, essentially pitting the National -Security Council against officials in the State Depart- ment. NSC chief William Clark and the U.S. ambassador to the United Na- tions Jeane Kirkpatrick, both hard- liners on Central America, are now said to have the strongest voices on policy. Deane tee as am on his wi a career U.S. amt named T Also on i Enders, t state fot who wa leaked:tie negotiatic rebels: HE home (Tc litical apr bassador Ironica .pervised covert op the link bombing 1973, wh the U.S. r Keepi: Reagar usefulnes in the th rebels in I have come who read the GOP 1980 campaign platform. The platform vowed Reagan would "seek to improve U.S. intelli- gence capabilities for technical and clandestine collection, cogent analy- sis, coordinated with counterintelli- gence and covert action." It also deplored Cuban and Soviet intervention in Central America and "the Marxist Sandinista takeover of Nicaragua." More significantly, it promised to "support the efforts of the Nicaraguan people to establish a free and independent government." Reagan had been campaigning for the GOP nomination as Central 'America virtually went up in flames. In mid-I979, Sandinista guerrillas toppled Nicaraguan Presi- dent Anastasio Somoza. Six months later, Marxist insurrections explod- ed in neighboring El Salvador and Guatemala. Congressional sources with ac- cess to intelligence information say that a few days after the GOP adopted its 1980 platform, several former CIA officials began forging the framework of a covert program to restore the agency's "strength" arouncl5the world. These former CIA officials were described as "old-timers." some of them covert action specialists dis- missed by the hundreds in the 1977-1978 housecleanings that fol- lowed congressional investigations Approved For Release 2005/11/28 : CIA-RDP91-81090)R-00040648047104e8 ? the so-called Family Jewels. .CONZINAZD ' Approved For Release 2005/11428 i.W3ILFt9L-80rM)R4.119 5 June 1983 771:1'716"4';Z7,77't?,;7t7, .5'NtPlIrktie;" ? ? . asoy.s stoc dettlin . - ? - ? .Every_ administration_seema.;to ave , one or more officials whose.personal financial wheel- rigs and dealings teeter alone the edge of impropriety and .4sometimes slip -over ? to the .4embai7assment of the _president. , 'Ciirrently--in'Alie.:newa4s.ilitin- -;ald lieagan's former ?cisuPaign...i- ..:imanager, William J. Casey,-whb,.-: '..'lis now director of -central intelli- gence." 4 ? . . . ? - ? 'CASEY IS the 'fellow 'Who won ? the "not -unfit to erve" designation from the 'Senate intelligence committee after ? questions were raised about his previous financial and legal ac- tivities and his hiring a friend -with no experience to direct CIA clandestine operations. .Now Casey's mandatory finan- cial 'disclosure statement shows him dealing heavily in stocks and securities last year ? with twice the transactions .s.of the year before especially in the oil. computer, airline and drug industries. ..This is noteworthy,because as CIA.,-,director, Casey one of only a handful in -,government With -access to secret informa- tion on world economic trends (such as oil production and sales figures). ? -Arse Unlike his two predeces- sors at the CIA and unlike a number-of other top administra- ? tion officials, Casey has not put his 'stock holdings into a blind - tru,ct. tAy-td-dar, decisions on his portfolio are made by a financial -adviSer,r4but. Casey .knows _what is bought arid .sold-..A- reasonable persorrzmight wonder what ? Casey, :the CIA director learns might not, sometimes influence what-Casey the venture capital- ist does:..., And while a screening corn- CIA is supposed to prevent Casey from making decisions that would create a conflict Of interest with his holdings, the secretive nature of the -agency makes it impossible to know if or how well that is working. Again, there is reason for reasonable doubt. TELE ISSUE, then, is the need for government ;officials, and especially high -ones in influential positions, to avoid even ?the appearance of Possible Ampropriety or conflicts of inter-, ..est. With , Casey, the appearance. and the attendant insensitivity, , is disturbing. coA.M.7,,ri Approved For Release 2005/11/28 : CIA-RDP91-00901R000400080001-8 Approved For Release 2005TV/1281-301ZROlga1LOG9MIZO4U 5 :Tune 1983 Sr. asey s stock dealings 'Every administration seems. to ,have one or more officials kwhose personal financial wheel- ? pngs and dealings teeter along '..he edge of impropriety and isometimes slip over ? to the :Pembarrassment of the president. 'Currently n the news is Ron- ald Reagat's former campaign ? manager, William J. Casey, who is now director of central intelli- gence. . CASEY IS the fellow who won the "not unfit to serve" clsignation from the Senate intelligence committee after questions were raised about his previous financial and legal ac- tivities and his hiring a friend with no experience to direct CIA clandestine operations. ?.Now Casey's mandatory finan- cial .disclosure statement shows him dealing heavily in stocks and securities last year ? with twice the transactions of the year before..? especially in the oil, computer, airline and drug industries. ..,This is noteworthy ,because as CIA--director, Casey is one of only a handful in government With access to secret informa- tion on world economic trends (such as oil production and sales figures). -AXso unlike his two predeces- sors ? at the CIA arid unlike a number of other top administra- tion officials, Casey has not put his stock holdings -.into a blind tril bay-td-day decisions on his portfolio are made by a financial adviser, but Casey knows what is bought and sold:-:A reasonable person might wonder if --what Casey, the CIA director learns might not sometimes influence what-Casey the venture capital- ist does., And while a screening com- mittee at the CIA is supposed to prevent Casey from making decisions that would create a conflict of interest with his holdings, the secretive nature of the agency makes it impossible to know if or how well that is working. Again, there is reason for reasonable doubt. THE ISSUE, then, is the need for government officials, and especially high ones in influential positions, to avoid even the appearance of possible impropriety or conflicts of inter- With Casey, the appearance. and the attendant insensitivity, , is disturlping. Approved For For Release 2005/11/28 : CIA-RDP91-00901R000400080001-8 adpti6oved For Release 2005M Med( CIAIRDPOEP00901R00040008 "TIN E AP 5 June 1983 -Casey on Wall Street There's a disturbing entry in the financial disclosure - report filed the other day by CIA Director William Casey. It turns out that the nation's intelligence chief was doing a lot more last year than Supervising our network of spies abroad. He was extremely busy on Wall Street, buying and selling stocks valued at several millio.n dollars and ending the year ' with assets valued at possibly more than 18.2 million. -Multimillionaires are not a rarity in the Reagan adminis- tration, or any previous administration for 'that matter. Most, - .-top officials come from big salary jobs In private life and take a sharp pay cut when they enter government service. But the general practice is for cabinet-level officers to put their wealth in blind trusts over which they have no control, ???as long as they are working for Uncle Sam, to avoid any -conflict of interest- , .? Not so with Casey---and he's one official.who is wide open ?for such c6nflicts, given -his access to secret economic information that could give him the inside track on what stocks to buy or sell, The CIA assures us that it is keeping tabs on Casey's dealings and that everything is above board. Sorry, but such in-house scrutiny of the boss in a closely knit 'outfit like the CIA doesn't impress us. Casey should keep his hands out of the stock market and concentrate on the job for which he is being paid. ' .00 Approved For Release 2005/11/28 : CIA-RDP91-00901R000400080001-8 ON FIG - ARTICLE APP' REappiroved For Release 2dlit/1P224:: EDVRDP91-00901R00 5 June 1983 Shultz Replaced Latin Aides as of a Reagan Pact By BERNARD D. GWERTZMAN &poen to Tbetier York Times WASHINGTON, June 4?. Secretary of State George P. Shultz agreed to re- place his two chief advisers on El Salva- dot as part of an arrangement he 'worked out with President Reagan 10 days ago to regain control of day-to-day management of Central American poli- cy, well-placed Reagan ?Administration officials say., ?The officials added ?;:the 'Thomas 0. Enders, Assistant Secretary of State for Inter-American Affairs, and Deane R. Hinton,: the Ambassador to El Salvador, were also dropped in an?effort to end a bitter fight over that policy that had spread throughout the Administra- tion, in interviews in recent days, the offi- cials said Mr. Enders and Mr. Hinton were replaced after a meeting between Mr. Shultz and Mr. Reagan at the White Rause. They said Mr. Shultz sought the meeting after Mr. Enders complained that the appointment by the ,White House of Richard B. Stone as a special envoy to Central America had raised further questions over whether the ?State Department was still in control of ? policy. Dual Approach Reaffirmed ? The main question, Mr. Enders re- portedly said, was whether the Admin- ?istration was committed to a dual ap- proach of aiding El Salavdor militarily while ear:pureeing the start of a dia- logue among the various countries and factions involved or whether, looking for a quick solution, it would place much more emphasis on military suc- cess According to aides to Mr. Shultz, the President told him that he remained committed to the dual approach pub- licly stated in his speech on Central America of April 27. The approach was long favored by Mr. Enders and Mr. Hinton, who have argued privately and publicly that it will take considerable time and patience to see any results in El Salvador. But interviews with ?M- c-inn in various agencies indicated that ? . there are many who believe that a more dramatic approach by the President is j ? needed to turn the tide. .1 According to a Shultz aide, Yin Enn ? ders also acknowledged that his own personality may have contributed to feuds with White House, Defense De- partment and Central Intelligence, Agency officials. One official noted that Mr. Enders had said it might be time , for him to move to another post. Mr. Shultz, in his Obnversation with ? Mr. Reagan, came to the conclusion that he had to "sacrifice" both Mn En- Approved For STAT 0400080001-8 Oars and Mr. Hirrton, who for diffitent ? Mr. Enders himself has declined to be; masons bad run afoul of the White interviewed since his transfer was an- House, in order to re-establish the lines flounced. ; of policy, a senior State Department of. The dispute over Mr. Stone was more I ficial said. ? significant than the white paper, offi- .,; "The Secretary told the President," cials said. The idea of appointing a spa- an aide said, "that we havtto have a cial envoy had originated with Repre- clear policy. Thereare too many people sentative Clarence D. Long, Democrat Involved. We have no have the manage- --Of Maryland, who is chairman of a key meat of Central American policy ran House -Appropriaticins -subcommittee. %Irma:111)e AssistantSecretarynotheSeen Re made _his approval of the A.dminis- retanyof State tothePresident:" V tratiacearequest to transfer military nirThe nPresidere ;agreed nwith the .aid earmarked for other ceuntries to El thesis;".the aide wentonn"Bixt part of Salvador-conditional on sending a Bps- the agreethent involved the personnel cial negotiator there. - -rnenges of Enders and Hinton.' But when the White House decided to The 'eleenges, first announced last name 'Mr. Stone as Ambassador at -weekendndramatized theltensions that Large -fir :all of Central America, the 'bad 'arisen in recent months -between move was perceived by Mr. Enders ? Mr..Enders and the National Security and eventually by Mr. Shultz ?as an ef- .-Council staff, headed by William P. fort by the White House to cirrarcevent Clark, as well as between Mr.. Enders the State Department. Mr. Shultz has and certain senior officials in the C.I.A. now reached an understanding with the and in the Pentagon. White House, an aide said, that Mr. Much of the problem, officials from Stone will report to him and that his ac- tions will he monitored closely by the department. Mr. Enders's policy problems began last year, his aides said, when he backed Mr. Hinton's efforts to persuade Salvadoran politicans not to allow the right wing to take power after it did sur- prisingly well in elections. Be telt that a government led by Robert d'A.ubisson, the rightist leader, would not obtain enough Congressional backing in Wash- ington. This approach had the White House's her of American advisers there. ? barking in jese, nut as the State Dettann As an example, aides cited the meat began to press for more democra- dent?of the recent White paper on Cam-' tization in El Salvador, some criticism mtmistsubversion in Central America. began to he heard of Mr. Enders in eon- They 'said the C.I.A. produced the servative publications, his aides said. paper many months ago with the ide.a I And when Mr. Hinton gave an address, that it would be made public by the supported by Mr. Enders, attarking the ? State Department. State Departmentrear- t "death squads" in El Salve- dor, White House officials said they had not cleared the speech. This, officials said, undercut Mr. Hinton's efforts in El Salavdor and caused severe friction be- tween Mn Clark and Mr. Enders. all agencies agreed involved personal- ? inn clashes, Mr. Enders, at six:Mon] eight, is an imposing- and sometimesj dominating figure, physically and intel-, ? )eCtuzilly. Close aides said he felt that =any other Reagan officials did notnm- i derstanci what was going on in Centred 'America and failed to realize that Con-" ? gress would not supporta major - tary mili- and economic commitment to Eli ; Salvador, particularly one that could ; lead to the involvement of American ? -forces or a major increase in the num- officials said Mr. Enders and his staff! ? 'decided that not only did the paper pro-1 ? vide nonew information of consequence but that it was written in -too tenden- tious a manner "Tom decided to just sit on it," one of- ficial said. After several months, Wil- liam J. Casey, director of Central Intel- liegence, complained, astici Mr. Clark. State Department Yields A majordispute broke out two weeks ago over the issue, 'with the State De- partment finally giving in to the C.I.A. and White House and making public a revised version on May Z7r. a few hours before 'Mr. Shultz announced that Mr. Enders was being replaced by Lang- horne A.. Motley, the Ambassador to Brazil.. Release 2005/11/28 : CIA-RDP91-00901R000400080001-8 ARTICLE APPEAR ON PA2E proved For Release 2405/11428:: taisilSOP91-00901R000 00080001-8 June 1983 WASHINGTON ',HAILS '? - . ?46.,----i---.6-fi-ii-,.,-,kkeiit.......,...,,,,vis. tural agreemen an a joint move to ..----?, - , . ..trov.:757.7. ui;xdotts, earth: tatseting on. open new consulates in Kiev and. New York, and the Agriculture Department ANDROPOV APPEAL ,-,:."?A CrucialVatersbed': ' - was reopening lon,g-terni grain negotia- tions with Moscxrw. Righ_rahking AfirniniqtratiOn offi- FOR WARMER 11E ?,.. presidential qadvisers 42ave cials disclosed, moreover, that some - .---. - . ,,, . -- - _ S argued that bolding:esti:main meeting er 3d, the White House chief of Staff, idential advisers, such as James A. Iwitha3bnited agenda would be neither and Michael K. Deaver, the deputy wisexior,,possIble-These advisers, of& chief of staff, have privately advo? cated cialsealti,Srant-to see how Moscow re- e Reagan-AnthdPav summit meeting 1U .S AS A 'READY TARTNER' .'sPancistp2biltiilltbeAdrairfildratirel next sPling. . ;?_ , . ,,,,-?,.,_,_ .. ? ,. , -Strategii*3313,4eripoSia,,a0rtie ;kCif Their arilirnach tcork?ld be to 'seek ,.,,... ,-Nonnhareduejurapprovalbytnepseair.. ;agreements ,on issues like grain trade, -cultural exchanges and ccmsulates, but State Dept.SoysItt'Zen.'ottilritei-iiiiiattateas?"1"etr-cioi's.The-i---7-t -: ,.. sidestep the .dittnult issue of arms -.-..t. . 1' II ? over Avilich the two 'Govern- - ..-' ' ..: '-" -- :- ' - - ii'?f=ile-,Taosiet.iespobaaaiciuld ents have !been ideadlocked through- ; thatlitfililoWirigaili$tiviet 2.-- .. ------:,klaNsilitia. abati,timos-Whitealoosead5- the Reagaa.Administration. ?----;.,-..- -;,--.:.A. -,..z....a..?4--iiwa. ...!+ -..- - - - 4'21' - Jt klaiaiir"'Webk11-waltaciseefif ?,,, Rem-- aticsto- arnmari '.z.-.'---1,..,..,...,------,.,,,,---. ,,.....?......abe7.4.,.., - AMator7dolivaiion .1 7'7- , " '''`,.. ':-2 ?1."?'__ . L ;Officials :said a major motivation L*'. i""' - '''''''-' - '-'1"2'4,Ai? I trar21re_ ... _ ?gnaling ,,ve'llioutdve 'te- T5', would be to help President Reagan In a ---- 3.'-' ...- ' p.,;;;,...........----.--;sj-T-%fittr.-:--2,7i.,',.:! j VobakitgagnartneYseelOreedYandwill campaign for re-election by easing ID- r-DYLLF-1"`"41'mn-lajm-Pi'44':'-'"17)-:1 qiesiitiainaar=theresthemossittitity of - ternationaLtension. A drop in tension , Taii.,._ ..,...?._ ..,.. ..e.,_ ... ..4.7.t.,...,--. T1 temopedne"..i. _ ... ..__ - 4-;-;-,.. _ :,--:t--;-- --: --, ,...:, - =would forestalloriticism, as one official AsNG '-.--!f--me ,73inciat3 ?Me Slate , -Y"-Tensices-lbetween Washington ,axid Ixitit, that the President was "too much Department today welcomed-an appeal : :_Moscovotbave-tiuitt :-,N) -putt, 1.5 acold;varriand oruntabo SitIe todorragith the i !fromzuri. V.,-Andropoli-lor improved sharplyssirice the Soviet intervention in 7 R -e-lations and asserted that if Moscow Adglisnistenizi December DM :merits with Moscow. was ready "to take concrete steps" It --, _ Inaulidition, the Reagan Adtministra- ,I4 secietaryCltber op dr=s.,ilsinFelAgg-1:retens; wile. I would "find a readY_Pattner" -lb the tita,7-L Zathte71h2g. 4-4L12e4..,,...w.A.,,,,S*viet-eaccittraged,,,,,,,?1 tarn P. ciark, the President's national I ateagan Attministration.-,-6-;? , :? 7"--:. . :,. repression-''''?" `"` - ?-??? ""''''''''''''''''' ..---' security adviser; `William J. Casey, the I -"For our part, the T.I.S. approach to : Solidurtyp: Poland, sought to impose: :Director 0/ caltrai Intelligence. and 1 ?relations with the Soviet 'Union is seri:: ' anembargoonequipment for the Soviet , . Teene j. ,.,..,..., 1 / ous and seeks to explore lealistieways ', matuntlystspipelineto Western Earape. riiaies deieWt7t-0-7-'e UnitedNations 1 rod cooperation to mutual Quivainta,ge, alliertremItraccused the White Mouse were reported In be resisting this tip:- I:Alan D. ROMberg, li. State .Department 1 of viagigreconomic,warhire.'" ':-. - . .11 proach. Spokesman, said. "Crux-diplomatic dia-"! - president Reagan and ler-Andropov 1 'The Weinberger-Clark-Casey group logue with the Soviet Union on all out,-;', have -alto clashed Several times this I was generally said by high officials to standing issues is intensive and toom;t. spring overthe Soviet arsenal Cl- 55-20 be contending that ,the public -would prehenstve?and will continue*.' ,,-.1: .?;.!:', medinmeange . - missiles targeted inevitably expect ::President Reagan On Thursday Mr. Andrnpcv, tjaki,44: against;Westarn ',Europe, and Western and Mr. AndroPov to deal with arras with W. Averell Harriman, e :former. Plans-Ic)dePk`Y 'American 'Pershing 2 ' sTiarpntrt'lly disappointed ifrarsurentlwituintetbe- United States Ambassador-to Mascow -' contbmingand cilheatthealles.dispumlate13:tdsve liaredYear; trverer ing (lid nor yield some positive results in Central America, Angola and luta= These cffiripis were said to fear that, rights issues. . . - - . no matter how much advance effort Mr. Reagan, who has - said that he '. was made to lower expectations, a polit- would accept - a surcuriit meeting if it ical backlash might develop in the could be properly prepared to . insure ,United States and Western Europelf a - concrete- ..results, predicted Tuesday 'summit meeting did not produce agree- that there would be an improvement In !pent or substantial visible progress-on Soviet-American :relations -despite 'arras issues. -sharp `!thetoriC:"13ut he gave no expla- ! For that reason, officials said; Mr. nation tor making that forecast at a 1Clark and others regard the forthcom- tme whentnany spedalists said Soviet- ling round of strategic arms talks to American -,Telatices ' were Unusually i :Geneva as a particularily important strained. --, . ...-.... ,.:-'_ -.. t test of Soviet intentions on the ground Privately, however, officials said the ; that President Reagan is planning to and a longtime specialist -on Soviet al- lairs; said the Soviet leadership was '"ready and interested in -seeking joint initiatives" that would improve rela- tions with Washington.; - A SI:dft From Polemics -?' --The public exchange marks a shift -away from 'the sharp polemics between i-Moscow and :Washington in [weeks. it came as senior Reagan-4kt-- .mtn' -officials, told by Western *es lhat the - new Soviet lee.dership was interested ins top-level meeting, Fwereprivately discussing the prospects , State Department vas exploring with !alter the Administration's .strategic ;43i3d conditions jor possible meeting 340scupf-Ahre_phssibilities of a neW itt* 1 arms proposal proposals.inws tht will move it closer o s In addition, Mr. Clark is understood to be looking for some Soviet restraint in Central America to improve the cli- mate for a Reagan-Andropov summit meeting. He has told others that he was partic- ularly disturbed at Moscow's delivery of five shiploads of Soviet military equipment-at Ni ports in the Approved For Release 2005/11/28 : CIA-RDP9k03~R00040T8tibgil-d rbetsvegla president Reaganandinz ! droPdv? ? But such a meeting would haVezotY . !pass the current-stalemate in armi ? The- talks Aiwa-been:leen deadlocked. tbroughout thiikeagai:t Ad- 1 mirdstration. - Approved For Release 2oopaimipciEkcmgri -?or R00040 June 2 9 8 3 0080001-8 Mr. Casey Serves Two Masters ?ks;iirector of the CIA, William J. Casey is a verylbusystodltbrokl.T. ?.;41ficcording to a financial tlisclosurestate- meth. for 198Z Mr. Casey .bought .and sold millions of dollars of stock in the course of the year. DO doubt fea.thering his nest nicely for the day he leaves his government' job. That's the job -which the Senate intelligence COLD- minte once said, in brilliantly deadpan lan- guage, that Mr. Casey is "not unfit" to hold. The report raises again the question of the fitness of a CIA director continuing to manage his own stocks through his financial adviser, despite the fact that be is privy to an sorts of secret information that could affect- their value. Mr. Casey's two precedessors at the CIA established a blind trust for their in- vestments while in the office. To rninirnire the appearance of conflict of interest while Mr. Casey keeps his hand in his financial affairs, the CIA established a . complicated, high-level bureaucratic screen- ing system to prevent Mr. Casey from getting :into trouble. But there is no justification whatever for putting the agency in the awkward position of having to police its own director's financial affairs. The CIA director should not be mak- ing decisions for his agency, sometimes using secret information about world economic conditions, while also making decisions about his own stock portfolio. No screening system can erase the ap- pearance that Mr.. Casey is using his highly sensitive position in government ? however obliquely, even unconsciously ? to advance his personal fortune. Mr. Casey ought to either put his invest- ments in blind trust, or seriously consider de- voting all his time to them. without the distraction of CIA responsibilities. Approved For Release 2005/11/28 : CIA-RDP91-00901R000400080001-8 Approved For Release 200p1N1.-'631)clik6P794-uu trIrtiltrzfiMUOVUU J une 1983 ARTICLE . ON ?LC.: -7..8 CIA Director The former director of the Central Intelligence Agency in the:Carter administratioa,.,Adm. Stansfield Turner, says he cannot :recall seeing information that would have been use- ful-14r-private investment purposes. ? - Nevertheless the extepsive_activiity ofl the stock market of ,the4cutlen.ttplA,director;_Villiam ?Casey, is .disturhing. Caseys position, after tall, does make available .to him a vast range of information, some of it secret. If this informa-! . . USD; 4S? ,not in fact useful in managing his investments, that far:051'4ot evident to the public The suspicion persists that :Ciikiiciuld take unfair.iidvantage:of .his position to 'feather itis-nett: .-Arty?Iprn.has been set up to screen Casey's transactions to privent..him from making decisions that would create a confiict-of interest. But this system is within the CIA and is operated by Casey's subordinates ?.hardly the most satisfac- torY;ariangement. _ It would be far better If the CIA director, like his immedi- ate-predecessors, placed -his investments in a blind trust to avold.i.he possibility ofa conflict of interest. The present ? situation is an ?obstadle to the CIA's efforts to gain public corrficiente. Approved For Release 2005/11/28 : CIA-RDP91-00901R000400080001-8 ARTICLE IL ON PILC2. e Approved For Release 200W/WRI:JWAIk15139414)01515#40Uki)386 4 June 1983 --g CliS Director The former director of the Central Intelligence Agency in the.rier administration,.,Adm. Stansfield Turner, says he caniof:recall seeing inforinatiop that would have been use- ful-Ur:private investment purposes. Nevertheless the extensive.activIty on the stock market of ."*Acuttentclk-director;.:Williani tafty; is..tlisturhing, 'position, :nfter '7'a, does 'make 'available to him a vast range of information, some of it secret. If this inforrna- ?tiii0;IS?znot in fact useful in managing his investments, that faitlfliot evident to.the-publie. The suspicion persists that esiie?i'..,C'buid take unfair?.iailvantage.of .his position to feather his-nest? )14- A system.has been Set UP to screen Casey's ? transactions to prixent....him from making decisions that would create a confiict-of interest But this .system is -within the CIA and is operated by Casey's subordinates :hardly the most satisfac- tory;iiiingement? , .- Itywculd be far better. if the CIA director, like his immedi- atepredecessors, placed.,his investments in a blind trust to avoid.rilie possibility of a conflict of interest The present situation is an obstacle to the CIA's efforts to gain public contidente. 1/A1 Approved For Release 2005/11/28 : CIA-RDP91-00901R000400080001-8 ARTICLE APPEApoved For Release 2NE'1X19F? ? r3june 9 ON PAGE ,0Y? hDP91-00901R00040 8 C.I.A. Chief's Assets Studied WASHINGTON, June 3 (Reuters) ? ! Senator Carl Levin said today that he would propose a law requiring William , J. Casey, Director of Central Intelli- gence, to put his assets in a blind trust if Mr. Casey did not do so voluntarily. The Michigan Democrat made the statement in a letter to President Rea- gan. Mr. Casey reported in a required financial disclosure statement this week that he bought 56 stocks this year, many in August and September when the stock market began its current rise. ? ? - Senator Levin told Mr. Reagan a spe- cial committee of the Central Intelli- gence Agency, set up to screen Mr. Casey's investments to prevent a con- flict of interest, must have trouble keep- ing abreast of his stock market invest- ments. "An even greater problem," Mr. Levin said, is that "there is no provision to prevent Mr. Casey from using infor- mation he has obtained from his unique position as director of C.I.A. to buy, or sell stocks and securities for his per- sonal gain." Approved For Release 2005/11/28 : CIA-RDP91-00901R000400080001-8 Approved For Release 2005/11/28 : CIA-RDP91-00901R0 SI-11 DIEGO TRIBUNE (CP_7 3 June 1983 00400080001-8 /CIA chief shouldn't play stock market GOVERNMENT OFFICIALS :should not profit system is based on it. But there is something wrong financially from their public positions. At any time with trading stocks on inside information gained when there is a -.conflict of interest between. public from.employment by the government. responsibiLity ..and private profit ,-the government As ZIA direcLor, Casey sees all kinds .of 'secret: official should either gmt-the public_interest ftrs.t.tu.. ;documents :regarding ..ensitive Anegotiations and . resign before reapins4he .privatereward. ..:rcontiracts.dhat 'could .anlauenerstocks:432yone cho 'Central Intelligence,: Agency.. Director ArZlikui.?:-..-lasAraded -43175tocks*DDTCS Casey :has rele'7erritylbef*herkluilii5tformntiaii,-Anniesi :44.etzaded & urface asaiuncb?to Casey SeCtiffitiesthat..stoCk.e-- ? " ? andExchange-C?niissionzlietwasta4Vall treet munmurn, as the appearance ?of, 'lawyer. Be has thestockanarket nInsblood? -conflict -.1:d Interest "Casey's two immediate Trade- ;Last year, vallen4.he stock -market:began to znove cessors as =CIA -director Stansfield 'Turner and upward, it would-have been lard for a man .who George Bush. put their portfolios in blind trusts. followed the ticker tape by instinct not to buy .and Casey should follow their example or, if he prefers sell. There is nothing wrong in making a profit; nur? to playtbe market, do so as a private -citizen. Approved For Release 2005/11/28 : CIA-RDP91-00901R000400080001-8 Approved For Release 2005/11/28 : CIA-RDP91-00901R00040 ART I CL3 . SHIN C T ON POST ON PI= 3 tin e I98.- -Urges Casey t ol s m Trust By orixr SI 080001-8 SfAT ? :*ind MO. . ..Meissrerngtor_ters' 1: Carl ;Levin -4D4tiliab.) 'ester-- ti-4Zilind-trOi.,c4335;ingtbit Casey's hettv.31i iltradireiri-pthekfgnarket 1a"..-J:seii.creates,4be appearance of kiiing public ciffice-for private,gain." Levnwas-respondingthe -re- !. 'lease ,of Casey's 1.94 financial udis- dosure :statement, iwhic?t -showed that Casey bought arid ;sola millions kffdolIarinn stocks ,end other aecu- it,es stock:mar. , 4(et was beginning:a majoneclvance. ? '; -CaseyboughtS3.8 millionzz, Triore than S7.8 million -.'istocks, :bonds , ?and other securitiesitast year, selling ?off -other ;holdings to -invest heavily electroni -and Airug stocks', some Of which have increased significantly :in value. H ? Casey's longtime financial adviser, Richard .Cheswick, said : yesterday that he "had discretion to manage [Casey's] investments without con- sultation by;him." in .a statement issued at -Casey's ..irequest, Cheswick, a member of a Connecticut investment- firm, said, ? "There. have been no instances what- ever during Mr. Casey's service as director cf. the Central intelligence ...Agency that he has provided -rne anr information or 'special an- alyses Avhich -could be .used as an aid making.these decisions.Cheswick that,similaradvice was Szonsis- -tently al)plied -tO our .other clients' ? portfolios . . :The stocks - - and -bonds selected ns. were ?cieemed ? epprepriate for his family's invest- .- ment,objectives." . ,4evin told President Reagan in a letter that unless Casey agrees to place his holdings in a blind trust, as :several senior, government officials have -done, he will introduce legis- lation to require Casey -to' -do so. A blind .trust is an account that is managed by an adviser without the Investors knowledge. A CIA spokesman has said that two other CIA officials review ? Casey's investments and recommend vihether. he should excuse himself from any matters because of possible conflicts of interests, but that such advice would not be made public. Levin questioned how the two of- ficials would "know just what issues might? affect a particular company," adding, It seems clear that the re- peated stock transactions by Mr. Casey while he receives information on -an ongoing basis as director of the CIA creates the appearance of using public office for private gain.' Approved For Release 2.005/11/28 : CIA-RDP91-00901R000400080001-8 61/Al Approved For Release 2005/11/28 : CIA-RDP91-00901R0004 LOS ANGELES TI1S (a) 3 June 2983 No:'Hi Road for Casey :From the founding of the Republic, two attitudes .aboutconduct in public office havecontested for the souls of its Officeholders. Some public servants have used public office to get -what they could while the getting was good, and others have -held to the simple. pri*ple that. Zhe lonor,cd.public*ervice should not be -sullied :by,privatiancibitionjpitrate .business or rpritatepicfit:7, ? Slich tine points ksf acriiPukruS.Itebavior have elbdet: -William J. Casey, -.director of central intOrigence. . - Casey, whose .positiori gives him-access to great amounts of seCret j/i.f.oraiation on global economic .trends, bought and sold .several Minion dollars worth of stock in 1.982. President Reagan and several Cabinet officers whose positions affect economic policy put their holdings in blind trusts on; so did Casey's two predecessors at the Nct Casey. 0080001-8 Not required by law to establish a blind trust, he announced that he would not, but would, rather, Continue to oversee his investments, -and would -rely on two Officials of the agency to prevent him -from .making any decisions that would create a Conflict .of ..interest vith his stock iioldings..That - pecilliAnarrangement;raised the .possibility .-of his being ,Tprevented by 'his private interests drom Trialring decisions that be is paid by the people to make. Even if Casey got no more information through the,g14?than any canny -investor could -get from a close reading of -the newspapers '( and -who will know?), the appearance of impropriety would remain. As Commerce Secretary Malcolm -Baldrige, another rich Man, said of his blind trust, "It's not how I see it; its how ,others see it. In government, you're held to a higher standard." It seems to be too high for Mr. Casey. Approved For Release 2005/11/28 : CIA-RDP91-00901R000400080001-8 Approved For Release 2005/11/28 : CIA-RDP91-00901R00040 ST.. LOUIS POST-DISPA,TCE (MO) 3 June 1983 Private Gain From Public Post? By ignoring the conflict of interest rule followed by other senior Reagan a6minictration officials, ClA .. Director. . William Casey is continuing t?'-..o give .the impression that he is using his government position for personal gain. Unlike other top officials and .unlike this irnmedine CIA ;predecessors, ?Mr. ,Casey .neither sold this. stock .boldings or put 'them in a blind =rust ' when he assumed 'office ? although .he has access to the government's most secret economic data. In 1981 'Mr. Casey made a . rofitable sale of more .$600,000 in s..tor, . at a time when CIA Teporrs indicated a dropping oil market. Now it turns out that Mr. Casey traded heavily in the bullish 1982 stock market that started in August. Figures on Mr. Casey's stock transactions were revealed in the financial disclosure statement that he, like other top officials, is required to file with the Office of Government Ethim Last year he bought and sold several million dollars worth of stock and other securities .(the listing of exact amounts is not required). Who knows whether he profited from government information that other investors didn't have? The mere raising of the question is enough to suggest why the CIA director should not -be allowed to make his own rules. After Mr. Casey was criticized for disregarding conflictof interest standards, a screening system ?was set up that was supposed to separate his job -from his investments. Under it, a committee made up -of senior CIA officials was .to monitor Mr. Casey's stock transactions and certain designated officials would either exclude the director from a policy decision that might affect his investments or allow him to excuse himself.. A member of the Senate Intelligence Committee rightly labeled the scheme a "fig leaf' that would do little except waste the time of the officials involved. The latest disclosure statement offers no assurance that the fig leaf does any good. Approved For Release 2005/11/28 : CIA-RDP91-00901R000400080001-8 Approved For Release 2005/11/28 : CIA-RDP91-00901R0004000 BALTIMORE SUN (C) 3 June 1983 I CIA OPERATION BAY OF PIGS ZURINAM C41 . WoviVIE VS,AW.SUALf.? //// / ? 4, Ar, 07)=7 Approved For Release 2005/11/28 : CIA-RDP91-00901R000400080001-8 Approved For Release 2005/11/28 : CIA-RDP91-00901R0 ART I Cal hr.' ..0 wA CTON POST 3 :June 19E3 y STAT 0400080001-8 'THIS IS THE HOT LIRE ?iTS TO HIS STOCK BROKERs* Approved For Release 2005/11/28 : CIA-RDP91-00901R000400080001-8 A p REPORTS, For Release305/11/28 : CIA-RDP91-00901R000400080001-8 RADPI6 INC 4701 WILLARD AVENUE, CHEW CHASE, MARYLAND 20815 656-4068 KA PUBLIC AFFAIRS STAFF PROGRAM The Today Show DATE SUBJECT STAT gnioN WRC-TV NBC Network June 3, 1983 7:15 AM ow Washington, DC William Casey's Finances JUDY WOODRUFF: In the CIA, the Director makes millions on Wall Street that raises questions. We'll look at those 'questions in a moment. BRYANT GUMBEL: CIA Director William Casey made millions on the stock market in 1982. This information was revealed in his financial disclosure statement. With me James Needham, former Chairman of the New York Stock Exchange, and former SEC Commissioner. In Washington, Howard Kurtz, the Washington Post reporter who broke the story yesterday, and he has details of Casey's stock transactions. So, let me start in Washington with you, Mr. Kurtz. How much did Mr. Casey play, and how much did he make? HOWARD KURTZ: Well, it's impossible to say exactly how much the CIA Director earned on the stock maket, Bryant, because the financial disclosure form, which I have here, reports transactions only within broad ranges, which is the way the Congress set it up. However, we do know that he was quite an active player during 1982, making 136 separate transactions buying and selling stocks and securities. He bought between four and eight million dollars worth of stocks, and apparently he invested quite shrewdly. Appfoveci For Release 2005/11/28 : CIA-RDP91-00901R000400080001-8 OFFICES IN: WASHIN(510N D.L. ? NEW YORK ? LOS ANGELES ? CHICAGO ? DETROIT ? AND OTHER PRINCIPAL CITIES Matertal supplied by Radio TV Reports, Inc. may be used for the and reference purposes only. It may not be reproduced. sold Or OlihriCIV Clerrnmtrotcarr or 1,(hilnitar! Approved For Release 2005/11/28 : CIA-RDP91-00901R000400080001-8 2 GUMBEL: Howard, why was he allowed to keep his stocks and play them rather than place them in a blind trust as so many other Administration officials chose to? KURTZ: Well, there's no law requiring Casey to place his holdings in a blind trust, which -- which would put to rest any questions about whether he is having access to information in his sensitive position as the Intelligence Director, and he has chosen not to do so. Furthermore, the CIA, in departing from its usual "no comment" stance, says that two senior officials are reviewing his holdings and transactions to make sure there's no conflict of interest. But we -- we, the general public, are not being told what the results of that review are. So, the CIA is saying trust us. GUMBEL: Mr. Needham, the general public's not allowed to trade on inside information. Do you think something's wrong with what Mr. Casey is doing? JAMES NEEDHAM: Well, based on the facts available to me, and I poke last night with the General Counsel of the CIA, Stanley (?), who is the former Chief Enforcement Officer at the SEC, I'm not quite sure I understand what the fuss is all about. First of all, no one broke a story. The one you're referring to appeared for the first on Wednesday in "USA Today," and, secondly, I think I ought to mention that Mr. Casey and I've been good friends for over 25 years. GUMBEL: Don't you think some fuss should be brought about as a result of a man who's in a sensitive position privy to all the intelligence that he is privy to and is tradino in the active manner that he is? Is that not trading on inside information? NEEDHAM: Well it depends on what you mean by fuss. I think the press has a responsibility to examine these publicly filed documents. That's one of the reasons why they're filed. And if the press decides that they want to inquire into them, I think that's part of their judgment, not mine. But, based on the facts that I've seen and -- the comment was made that there was an ongoing investigation or an inquiry at this time -- as I understand the procedure, Mr. Casey had his assts in a blind trust, which he's now required to do. And, incidentally, a blind trust doesn't assure anyone of anything, because trustees can talk to the person who placed the assets in the trust. And, secondly, Mr. Casey's transact- ions were ?reported daily to the Office of the General Approved For Release 2005/11/28 : CIA-RDP91-00901R000400080001-8 Approved For Release 2005/11/28 : CIA-RDP91-00901R000400080001-8 3 Counsel of the CIA. A member of the staff would go through that information and inform the division heads.... GUMBEL: Rut is that really an adequate safeguard when you have your own subordinates going through your materials and saying, "Hey, tell me when I'm wrong?" NEEDHAM: Well, I am with the government now, and I was with it for three years. And what you're suggesting is that the career Civil Service employees are beholding to their immediate supervisor, and I can assure you that they're more loyal to the government of the United States than they are to an particular individual. GUMBEL: Mr. Kurtz, in Washington, Mr. Needham seems to be willing to downplay most of this. What was the congress- ional reaction? KURTZ: Well, there's been some glances cast askance on Capitol Hill, and all we have done in the Washington Post is raise questions about this. And Senator Carl Levin has been the most vocal critic. He says that the active trading, which I should mention began last summer when the stock market took off and Mr. Casey apparently was shrewd enough to be part of that rise, raises the question, which we can't fully answer because we don't have all the information, of whether Casey is using his office for private gain. And some of the drug company stocks, and electronic stocks that Casey invested in have gone up as muah as 38 percent since last summer. Some of these companies have subsidiaries all across the world, in places like Central America, and the questions that are being asked in Washington, which is a town that is very concerned with the appearance of any conflict of interest, is whether or not it is unseemly for the Director of the CIA to be such an active player on Wall Street. The joke around town now is that when Bill Casey talks, Wall Street people listen. GUMBEL: Final note, Mr. Needham. [Laughs]. Final note. If what Mr. Casey did was not illegal, not unethical, should he have been beyond reproach? Is this something the CIA Director should be doing? NEEDHAM: Well, you know, you're going to skip right over some very interesting remarks made by this gentleman that are totally inaccurate. And all I can say is that the press has a right to look at it, but I don't know what Bill Casey did that was wrong. I think I would know. Approved For Release 2005/11/28 : CIA-RDP91-00901R000400080001-8 Approved For Release 2005/11/28 : CIA-RDP91-00901R000400080001-8 GUMBEL: James Needham, Howard Kurtz, in Washington, thank you both. Approved For Release 2005/11/28 : CIA-RDP91-00901R000400080001-8 LR T I CLII F14.Gil ved For Release 20bVill C1ttIRDP91-00901R000400080001-8 3 June 1983 Canadian Fashion Takes A Bow in Washington By BERNADINE MORRIS Special to The Nee; York TImes WASHINGTON, June 2? "I didn't see a sequin before I -came to Washington," said Sondra Gotlieb. "I never thought about fashion ? in Ottawa everyone always dressed down." ? But when she came to live here with her husband, Allan E. Gotlieb, Canada's Ambassador to the United States, she discovered that "fashion designers play a big role in social life ?we're always invited to parties for Bill and Oscar." Canadian newspapers began to criticize her for not dressing well enough, until she turned up in a dress by Maggy Reeves, a custona de- signer in Toronto. It was in wine and pearl-gray silk, it had floating panels and everyone told her it was sensational. "We have designers in Canada too, but nobody knows about them," she said. "I thought we might in- troduce them." She called her friend Beverley Rockett, who is fashion and beauty editor of City Woman, a magazine published in Toronto, and asked her to arrange a fash- ion show. The presentation took place at the embassy residence today. Miss Rockett made it clear that she, I not the Government, was responsible for the selection; of the clothes. "I thought, why not do it big?" Mrs. Gotlieb re- called. So she planned two shows, one for store buyers ' and the press at lunch, and another for social and political Washington at a dinner-dance. "We're calling it an extravaganza rather than a fashion show, because we don't want to scare off the men," she said. Apparently she didn't. The guest list for the black- tie evening, a sit-down dinner for 120 with dancing be- fore and after the show, included William J. Casey, Director of Central Intelligence; ben. Alexander M. Haig Jr.; Charles Z. Wick, Director of the United States Information Agency; Sargent Shriver, and Gerald Rafshoon, a former assistant to President Jimmy Carter, plus their wives. The 12 major design- ers and several accessories designers were at both shows. Approved For Release 2005/11/28 : CIA-RDP91-00901R000400080001-8 ARTICLE APPEARED: "Plpproved For Release 2005/11/28 : CIA-RDP91-00901R00040 ON PAGE .7,z- NEW YORK DAILY NEWS 3 June 1983 0080001-8 STAT he:CIA' gold mine s3-7 znillion and S7.3 million. 'It is Ampossible? to tell -whether or Dot he. =lade _a profit 'from these deals?but aie -reported an :income, ? above his government:sal/last year, ,of 7tween S.500,000 and S1 million. Lars?Zlik 'course; the government --has ? =posed 'conflict-of-interest rules to nestrict Casey's actions. Butthe rules . .---a.:situation arises in iwhicli -!his "---5-11211110=1=1111111111111111 "perianal -::.:financial -holdings !are , Nelson -penalize thexavernment?not 'Casey. ? ? ? " affected, hels supposed to disc:gm-iffy. ..... himself fronLtalang part in the gay- /? 'till'g iirc:;.; iei'endl'n, 1:,*r S .` . ?ernment' deliberations 'His proper- -Fu Manchu at the center of -u' comes itrst afar-flung spicierweb of -public, pri- ''.??? A CIA spokesman yesterday -quoted - ey's firtanical advi,ser, vete and clandestine intelligence, Cas with advance access to virtaally Richard Cheswick, as saying that be ane his decisions about Casey's thing that can he 'Imcma: OPECnil- stock .holdings . with no -advice or production plans, impending African' - ? special analysis from the CIA direc- coups, looming banxite shortages, potential Soviet crop failures, reli- gious unrest in the Persian Git.Lf? even a possible World -War III Imagine -too that you have -the security ,cif a high-paid government job, and :thousands of confidentiAl agents at your disposal. Imagine, again, that you are perfectiy free to use any and all .of 'this government-- -not by an -impartial outside agency gathered inside informationfor your but .by two .of .-Casey's subordinates, own gain . on the stock market_ .Deputy Director John McMahon. and This dream, which -would make:- CIA General Counsel Stanley Spar- many . drool with greed and envy, -is ?kin. Ironically, Sporkin was once the daily reality _for William . Casey, chief of enforcement for the Secur- director. of the Centhal Intelligence -dties.and 'Exchange Commission, and Agency. For Casey, while serving as vigorously pursued corporate execu- bead of the CIA., has been a heavy tives guilty of insider trading. ? player in the stock market During Other -Reagan administration offi- 1982, according to a statement he has - dials are also millionaires with ad- filed, he bought between $3.8 million vance access to confidential inform& and'S7.8 million in stocks, bonds and..., titan.. Defense, .Secretary Caspar other ? .securities. :pie sold -hetlyeen :,:Tieinberget, tor example, reports :.a tor. Cheswick appeared to be clRim- ,ing that Casey haci effectively estab- lished a 7blind :trust" for his hold- ings, but -still the appearance .re- 'Main ed that ..the -nations top intPlli- gente officer is able to profit tram -Imowledge. Possible conflicts are screened -worth -between:S1.5 million and S1-9 ?minion. Secretary of _State Shultz is -worth between .= million and S3 million_ Both liaveaccess to the daily -take" of the intelligence agencies. -Both lmow where in the world it is safe to invesn.and4where a prudent husinessmaiaznightrcut back on his holdings. ? ? - -But the 'standard p' - practice. llred of all top government offi- cials apart from _Casey, is that they . either set .,up -a blind trust--so that ? they have no Imowledge of how their holdings are bought and sold?or divest themselves -of .any property that could conflict with their job. -The standards for Casey were set up by the CiA. last year, following -disclosure that -he had unloaded more than S&C)0.000 in oil stocks just before the bottom fell out of the market_ The CIA had been predicting,. until 1981. that the Soviet Union :would start to run out of oil in. the - mid-1980s ? adding to worldwide shortages and boosting prices. B'UT IN 1g81, the CLA.changed its mind. The Soviets are still ex- porting oil, OPEC is in disar- ray, there is a worldwide oil glut and - prices -may sink .even further. Wil- liam Casey is safely out of oil stocks. .He has done nothing illegal. According to CIA .spokesman Dale Peterson, when Casey sees a possible conflict of interest between his job and his financial holdings, "If he decides he wants to continue making decisions in that area, he will sell the' stock" If he'd -rather make the money, he can simply take the day ? off: . Approved For Release 2005/11/28 : CIA-RDP91-00901R000400080001-8 Approved For Release 2005/11/Fakii1Offi:Ogi)R0 :?lune 8 Artc LE A7PpiPSO ON PAU t STAT 00400080001-8 CIA chief's investment policy is defended By Vernon A-Guitiry, Jr. ? Washington Bureau of The Sun Washington ? CIA Director William ..1 -Casey' -hasn't given his private investment -counselors any- informatiOL_ secret or otherwise, to guide their. handling of his mane, according to.the expert who has handled his investments for 20 -years. The statement by Mr. Casey's.counselor. Rich- ard Coeswick, was issued yesterday by the Central Intelligence Agency itself, a day 'after the agency released Mr. Casey's 1982 financial disclosure re, ,poin which listed stock and bond transactions worth., ' hundreds of thousands ? perhaps reinions ? of.;. dollars. Most of the transactions occurred last sum- mer. Mr. Cheswick said in the-statement:that he has the authority to make changes in Mr. 'Casey's hold- ings without. consultation and dOes-so-hased OD the same information used on behalf of other clients. "There have been ;Do instances whatever during Mr. Casey's service is direetor of the Central Intel- ligence Agency that be has providedme with any information or special analyses which could be used as an aid in making these decisions,- Mr. Ctiwick's statement read. Mr. Cheswick said the large stock sales of the third quarter Of 19E2 were-made "to improve the safety and diversification of the portfolio. Approxi- mately 40 percent of the proceeds were-used to purchase other stocks and 60 percent to buy bonds. This activity- made for a large ? dollar value of transact jonS but much of this simply reflected the rolliagiver of temptirary short-term securities." his? be-Jr allegedoleCsers pare but- his conduct with respect to his large finan- cial holdings has been a matter. of controversy: When be took office, be declined to place his bold- jugs in a "blind trust," which his Two predecessors, Adm. Stansfield Turner and Geor?e Bush, had done. Bis 1981 finaneial disclosure statement -showed that he sold more than $600,000 in oil stocks. That year, oil stock prices plummeted when a worldwide oil glut developed. " "-Critics at that time said that no matter bow in- 'I Docent Mr. Casey'sstock dealings had been, hestal opened himself to the suspicion that be had been using for personal CiliitrAigrellalltitiR4teeigelitilT15/11/28 as one of the few men in the nation privy to all U.S. intelligeDce. In response to the 1981 controversy, the CIA es- tablished a screening process for Mr. Casey's hold- ings.'A.t the time. the CIA's general counsel,-Stanley Sporkin, -told reporters: "I'm not going to let-him get himself into trouble." ? In practice, however, the screening process examines only instances in which CIA financial deal- ings, such as contracts, might involve a conflict with Mr. Casey's holdings. According to Kathryn Riedel. an agency spokes- woman. lists of Mr. Casey's holdings are circulated to CIA officials. When they spot a potential conflict ? most typically a contract about to be awarded to a firm in which Mr. Casey has an interest ? they notify Mr. Sporkin and John McMahon. the CIA's ? deputy director. These two then decide whether the matter is of sufficient import to be brought to Mr. Casey's at- tention. If it is, .she said, be can decide whether to recuse himself from consideration. . The CIA declined to say when, or even whether, the screening process had been put into practice. Ms. Riedel said she could say only that the sys- tem was "fully implemented and serving its intend- ed purpose." A 1981 Senate Intelligence Committee investiga- tion of Mr. Casey's financial disclosures found that be was "at a minimum inattentive to detail." The investigation found that in reporting to the committee on his business and financial dealings, be neglected to mention nine investments valued at more than $250,000, personal .debts and liabilities of nearly $500,000, a number of. corporations or - foundations on whose boards he -served, four ciVil suits in which be was involved and more than 70 clients be had represented in private practice, in- - eluding the South Korean and Indonesian govern- merits. At the White House, a spokesman said Mr. Casey's current practices had been-approved by the appropriate agencies. : CIA-RDP91-00901R000400080001-8 (--- Approved For Release 2005/11/28 : CIA-RDP91-00901R ARTI .L.:_AE 17 1?11:L" WASHINGTON POST 2 JUNE 1983 00400080001-8 Casey Traded Heavily in Sipe is in By Howard Kurtz and Mary Thornton tvashirigton Post Stan Writers CIA Director William J. Casey bought and sold millions of dollars in stocks and other -securities last summer as the stock .market was beginning a major advance, accord- ing to his financial disclosure state- ment. .. In. a 26-day period from Aug. 26 - to Sept. 20. Casey bought from $1.5 million to more than $2.2 niillion in stocks and other securities, partie- ' ula:rly in electronics and drug. corn- panies. Casey's heavy trading coincided with a broad advance in the Dow Jones Industrial AVerage, which stood at 892'on Aug. 26, peaked at 1,232 in early May and -was at 1.202 yesterday. While it is virtually impossible to gauge the profit or loss of Casey's ? extensive transactions during 1982, an examination of three of the stocks in which he made sizable invest- ments shows that they have in- creased in value by 16 to 38 percent since August. If Casey still owns the three stocks, he apparently would have paper profit of between $104,000 and $250.000. ? Casey has declined to place his financial holdings in a blind trust ' voltintarily, as many -other senior ? government officials have done, in- cluding President Reagan, Vice Pres- , ident Bush and Treasury Secretary -Donald T. Regan. ? Instead, CIA spokesman Dale Pe- terson said, Deputy Director. -John McMahon and general counsel Stan- ley Sporkin review all of Casey's fi- nancial transactions to determine whether there is any conflict be- tween his private holdings and his public role as the nation's chief in- telligence officer. ? If the two find such a conflict, ? Peterson said, they will advise Casey to disqualify himself from decision. Approved For 1 making on matters that could affect the value of his holdings. - ,Peterson called the arrangement "the director's .ineans of _assuring there would be no conflict of interest," but he would -not disclose whether McMahon, and -Sporkin had found conflicts An Gasey's financial dealings. He said the information would be available upon request to. congressional oversight committees.- ? The new policy was adopted last year after Casey's previous financial disclosure statement showed that he had sold more than $600,000 in oil company stocks during 1981 as a glut developed in World oil markets. "The system' that was set up [last year] is func- tiOning and will remain the -way it is,". Peterson said. 'There is no season under the law?why ICaseY] has to put 'his finances into a blind trust." He added that the investment decisions generally .aie made by Casey's private financial adviser, Richard Cheswick. :Congressional staff members said they are not :aware of .any findings by-the-CIA officials review- iiig .Casey's transactions. "While some of our mem- hers:don't like the way Casey does business, he is ,free to buy and sell anything he wants." an official .With, the Senate Select Committee on Intelligence , Several of the drug companies in which Casey bought substantial amounts of stock?including Abbott Laboratories, Bristol-Myers, Merck -and Co.,..Johnson & Johnson and Pfizer Inc.?have .foreign subsidiaries, including several in Central ,America. Abbott, for example, has subsidiaries in El Salvador, Argentina, Chile, Venezuela, Guate- pale and Mexico. Casey also bought considerable stock in elec- -tronics firms such as Digital Equipment Corp. and ,MCI Communications Corp. Casey apparently financed his purchases last summer by selling off large amounts of Treasury bills and oil-company stocks, although he contin- ued to buy lesser amounts :of Treasury securities .throughout the year. For all of 1982, he bought from $3.8 million to more than $7.8 million worth of stocks, securities, bonds and Treasury bills, ?while -selling holdings worth from $3.7 million to more.than $7.3 million. While Casey may have lost money on some' stocks, three of his larger investments have done well. From Aug. 26 to last Tuesday, for example) Abbott-stock rose from 333/4 to 433/8 a share, an Increase of 30 percent; Digital increased from WI 40 111 ,or 38 percent, and Merck rose Release 2005/11/28 : 611214096162d159161W6ot400080001-8 iC_OATTEVTP.4z... Approved For Release 2005/11PASPGYMIDPVIE1?6901R0004 3 June 1983 WASHINGTON CASEY INVESTMENTS Sen. Carl Levin, D-Mich., today urged President Reagan to require William J. Casey to set up a blind trust to avoid the appearance of impropriety in the CIA director's stock dealings. "It seems clear that the repeated stock transactions by Mr. Casey while he receives information on an on-going basis as director of the CIA creates the appearance of using public office for public gain," Levin said in a letter to Reagan, Levin, senior Democrat on a Senate subcommittee with 5uri5diction over government ethics, said while there is no' evidence that Casey used CIA information to decide what stocks to buy or sell, "there is also no specific evidence at this time that he did not." If Reagan and Casey decline to set up a blind trust in which Casey would not know how his investments were handled, Levin said he would introduce legislation ; to force him to do 50. At issue are transactions reported in required financial disclosure statements made public by senior government officials this week. On Thursday, Casey's chief financial adviser said the CIA chief received no special treatment. The adviser, identified by the Central Intelligence Agency as Richard Cheswick, said in a statement that he had made changes in Casey's accounts of a nature "consistently applied to our other clients' portfolios." Casey's financial disclosure form, made public on Tuesday, showed that he had traded millions of dollars in securities as the bull market in stocks got started in the last half of 1982. . The CIA refused to answer questions Tuesday about the report. On Thursday, the CIA issued a rare statement, in Cheswick's name, which spokesman Dale Peterson said Casey had cleared for release. Peterson said he could answer no questions about the statement. "There have been no instances whatsoever during Mr. Casey's service as director of the CIA that he has provided me with any information or special analyses which could be used as an aid in making these decisions," the statement said. During 1982, Casey bought stock and other securities worth between $1.9 million and $4.5 million, according to his disclosure form. Cheswick said much of the trading activity was the result of rolling over short-term securities bought with the proceeds of a single sale of security that Casey had held for more than 30 years. He did not identifiy that security. CONTINUED Approved For Release 2005/11/28 : CIA-RDP91-00901R000400080001-8 Approved For Release 2005/11/28 : CIA-RDP91-00901R000400080001-8 gag? , Casey is the only senior member of the Reagan administration not to put his holdings in a blind trust, that is, a trust in which the trustee must make investment decisions without reference to the beneficiary. The CIA said last year tha a group of senior officials reviews Casey's stock transactions for possible conflict of interest. That review panel was established after Casey's disclosure fort showed he had sold $600,000 in oil stocks in 1981 as a glut developed in the 'world oil market. Peterson said he did not know where Cheswick lived or the name of his firm, but believed it was in Connecticut. There was no listing for Cheswick in immediately available telephone books for Connecticut consulted in Hartford. Those books included listings for Fairfield County near New York City, where many people involved in finance liLie Approved For Release 2005/11/28 : CIA-RDP91-00901R000400080001-8 r7irkpp OK FAG proved For Release 2005/1i4)`12#9tliAl:01513b11166401R0 2 June 1983 DI I 400080001-8 ?The fine art of spying -was quoted as -saying he did not believe the CIA ought to engage in. , _ activity over against ,,..; any covert operations. Taxed as to ?ran-ant of public exposure Of that activity. He concluded that the latter exceeded the former, and that there- . had to - weigh the value of covert embarrass- for an agency to keep secrets, and that under the circumstances one . exactly why he thought this, he ?, answered that it was simply not There should covert activity if possible, in a political democracy, HLINE: '. -"CASEY ASKS -.lore there should be no covert activ- EAD PANEL: WHO SAID THE ity. To which Machiavelli might add: CIA. LIES'?" William Casey, the director of -the Central Intelli-., there there Is _ any reasonable gence Agency, can be a very cool cat,. 4:possibility that it will be exposed. but occasionally his Irish is dan,-...-That is to say something a -little bit dered, and the other day it was. A William F. Buckley Jr. member of a congressional commit-.. tee was anonymously quoted as - saying, apparently with resignation, "The CIA lies to us anyway." This drew from Director Casey a corn-, munication that is scorching by the standards governing exchanges - be- tween executive agencies and con- gressional committees. What Mr. Casey wrote, one-half gut-anger, one- half euphemism, was: "While I have less than complete confidence in the accuracy of press reporting, that comment has offended our entire organization and impugns the integrity of our fine employes: In obligation to them I feel that I must pursue its accuracy. ' The possibility that any committee member harbors the thought that CIA lies to the committee is so ? appalling that I feel obliged to deter- _ mine if any member of the committee actually feels that way and, if so, to seek the particulars. The confidence between the agency and the commit- tee -essential to make the oversight process work requires that any such impression be addressed." A few years ago, George Kennan different from what Mr. Kennan was saying, but that difference is vital. In the past seven or eight years I have written five spy novels in the course of which 1 have attempted to conjugate a theme. Not a mysterious theme, but not one that is entirely easy to expound. It is this, that the counterespionage,discipline is some- times the transaction not of a law, but rather of an art. I mean by this that there is written into the inexpli- cit mandate of an intelligence organization an ambivalence that simply can't be wrung out by the conventional processes that go into the codification of most of a free ._ society's laws. . Let us take a .hypothetical situa- tion. Our CIA agents in Uganda smell something big. Very big. An atom bomb. Never mind for the moment how Idi Amin got an atom bomb, but there it is, about the size of the Hireshima bomb. What in the' name of God does he propose to do with it? Well, he intends, -exactly three hours' 'from now, to dispatch a plane_from his little air force and drop the bomb ..:over Jerusalem, in retaliation against 01111111k the Israelis' Entebbe raid. Idi Amin is scheduled to go to the air base personally to wave off the bomber on a mission that will mean the ex- termination -of an entire city and not inconceivably the beginning of a third world war. The mission could be aborted by a sniper who, properly 'situated, can end the career of this madman before his bomber takes off. But isn't assassination -wrong? Yes,- assassination is -wrong. But can't one say that assassination is wrong, but that there -are ?worse things than - assassinations? Like death for a quarter million people, and perhaps-a war? ? Yes, one can say that. Question: Is there-machinery that can act nn such a moral calculus? Answer: Depends. Depends on the built-in resiliency of the appropriate mechanisms. Sir: Are you saying that the CIA is entitled to lie* to a congressional committee? NO, I AM NOT. I am saying that there are worse things imagin- able than the -CIA lying to a congressional committee. ? Do you doubt that Mr. Casey is telling the truth when he insists that the CIA does not lie to congressional committee's? No, sin not saying anything of the sort. What then are you saying? I am saying that circumstances hypothetically exist in which the di- rector of the CIA would need to choose between 1) lying, or b) expos- ing a deed the exposure of which runs a risk of collapsing a vital organ of a free society, and that the prudent way of steering clear of such schema- tic- collision courses is for both par- ties to just cool it; just don't talk about it; just let it go. Approved For Release 2005/11/28 : CIA-RDP91-00901R000400080001-8 Approved For Release 2oi1isig4T?1403PER1-00901R000400080001-8 Office of the Press Secre. PRESS BRIEFING BY LARRY SPEAKES June 2, 1983 The Briefing Room 12:33 P.M. EDT INDEX SUBJECT ANNOUNCEMENTS PAGE Presidential Personnel 1 Presidential Schedule 1 FOREIGN Visit of Ivory Coast President 1-2 U.S. Medical Team in El Salvador 2-21 DOMESTIC William Casey 19-20 #723-6/2 Approved For Release 2005/11/28 : CIA-RDP91-00901R000400080001-8 Approved For Release 2005/11/28 : 6IAINDF791-00901R000400080001-8 MR. SPEAKES: Pat? ? Do you expect stepped-up military activity on the ? part of the Salvadoran government, and is that one factor in sending these -- MR. SPEAKES: Pat, I do not know. ? You've talked about -- the President has always said he was not going to send combat troops to El Salvador, he had no plans to or do not need it -- what about groups that are not, in sort of an offshoot of what Mike was asking, that are not necessarily a rifle battalion, but Seabees, motorpools MR. SPEAKES: Bob, I don't know the specifics or any plans for -- ? Don't know of any plans like that -- MR. SPEAKES: I do not know. Bob? ? Larry, getting back to the killing of our own guy. Is the timing of this in any way to demonstrate our increased resolve? before then. MR. SPEAKES: No. This has been well underway since ? No connections at all? MR. SPEAKES: No connection. Bob? Yes, I'm trying to. ? Casey. ? Casey Jones -- MR. SPEAKES: You're going to be disappointed when I ccet there. (Laughter.) Let me get Bob back there. -- let me be disappointed right now then. ? Did Casey's broker know what he was saying, could he understand him, or did he just get lucky. (Laughter.) MR. SPEAKES: How does he know when he said "buy or sell"? (Laughter.) -- had to do with Casey. Bob? ? According to the New York Times, there are two Supreme Court decisions, one in 1935, one in 1958 that say that -- says that the President cannot legally remove members of the U.S. Civil Rights Commission. My question is, was this research -- was the legality researched in the White House? If so, who did it? And, what was the finding? MR. SPEAKES: Hand me Casey -- I don't know what I did with it. I would check with -- I got it. I would check with the Department of Justice on that. Casey. Mr. Casey's financial arrangements were probed in 1981 by the Senate and by the Office of Government Ethics and by ethics officials at the Central Intelligence Agency. MORE #723-6/2 Approved For Release 2005/11/28 : CIA-RDP91-00901R000400080001-8 Approved For Release 2005/11/28 : CIAffP91-00901R000400080001-8 Last year the CIA, with the approval of the Office of Government Ethics, added a screening-spanel to further protect against inadvertent conflicts of interest -- ? Against any -- MR. SPEAKES: Against inadvertent conflicts of interest in Mr. Casey's stock transactions. The White House does not become involved in any review of Mr. Casey's transactions. interest -- ? Sell Air America. ? Has there been any new review of conflicts of MR. SPEAKES: No. -- inadvertent, or otherwise? MR. SPEAKES: Not at the White House. You'd have to check the Office of Government Ethics to see if there have been any how they operate, how the ethics officer at the CIA operates. ? Can I ask a question? MR. SPEAKES: Yes, Butch. ? How about the appearances here? How're you doing how about the question of appearances? MR. SPEAKES: I can't pass a judgment on that, but the point is that he's been approved by the appropriate agency -- the way he does business has been approved by the appropriate agencies, so -- ? Hey Mort -- ? Why are you locking William Casey in such a firm embrace? (Laughter.) MR. SPEAKES: You found out anything? You may speak. ? Mort's got natural sidearms. (Laughter.) MR. ALLIN: The unit is expected to operate, for the most part, in San Salvador. They are not expected to have sidearms or 91sto1s there; however, as Mr. Timberg Pointed out, that when they are out in the country, if the Ambassador were to determine it were necessary, they could certainly carry sidearms and pistols -- pistols for self-defense purposes. But, it is not anticipated that they will do so, while they're in, at least in the San Salvador area. And the rest would be up to the Ambassador and his rules whether they're -- ? So the Ambassador could send them out? MR. ALLIN: They will -- they could be doing some assessment of conditions elsewhere, but not in combat zones. It will be the same rules that are in practice for the other, for the military trainers who are there. ? When will they arrive? MR. SPEAKES: That hasn't been determined. Check DOD for specific schedules. MORE #723-6/2 Approved For Release 2005/11/28 : CIA-RDP91-00901R000400080001-8 Approved For Release 2005/11/28 CIA-RDP91-00901R00 rmson?1-8 COI,NERCIAL APPEAL (TN," 2 June 3.983 Assigh'thent. (Memphis g,s0,-cpuld Serve By Sharing Market Secrets ? By LYDEL siks The world being whatitis,some-,-; people are sure to get hot -under-, the collar about the _n.e-ws..of WI CaseYsiLeav-y4idegliriton the stock market 7? director of thelUirl'he CIA.kaows everything --:wrati? most everything ? about the gov- ernment's most secret economic: .data...11.anything is about to hap- pen anywhere that might .affect the stock market, Casey is likely to know about it. Sc, these chronic complainers are going to say, he shouldn't be allowed to buy and sell stocks for personal gain while he holds his office. But he is. And a good thing. too, in my book. WORD ABOUT THE dealing came from his own financial dAs- -closure form, which was released the other day. Last year, it showed, Casey had great confidence in the American ? economy, or at least parts of it. He bought stock worth from S1.9 mil- lion to S4.5 trillion, valued-at the date of purchase. We can all feel encouraged by that, can't we? On the other hand, he showed less confidence in some portions of the American economy, selling stock worth from Si million -ao possiblymore than 52.1 million. It might be helpful to.know wlaat he bought and wlaatlie sold, but then we can't .have everything. Casey didn't make these -deals all by himself, you understand. Day-to-day management of his portfolio is in the hands of a ph- 2. GuARANTEED INSa+E - INFORmATIoN -? - - ?26r.d. ? .17to,k The 7, 'STOCK WRITS- -46eLci vate investment adviser, but I sup- pose they do talk from time to time. .A.11.i.n..a11,-it strikes me as a sign of a growing economy from a very high source indeed. And if it gives all of us a surge of .optimicii., sure- ly we aren't going to complain If he happens to make a few dollars on his deals. _ _ COMPLAINTS WELL COME, all the same, Critics will point out ' _that his two predecessors in the top CIA job put their own port. folios into blind trusts. But any impartial observer will have to admit precautions have . been taken. Those precautions were set into : effect after last year's disclosure ? form, which -showed Casey sold ; more than .S600,000 in oil stocksas a glut was developing in world markets.:Zo 2he CIA itself, ever vigilantao avoid even the .appear- ance of :impropriety, set up a "screening arrangement" for Casey. Underitsprovisions, certain of- :ficials now-review his stock trans- actions regularly for possible con- flicts of interest. And who are these officials? Ca- sey's deputy director and other subordinates in the CIA, that's who. they can't be counted on to -police their own boss, I don't ,ciw who can. IN FACT, IT might help the country if the whole thing were allowed to go a step further. Think how we all could benefit if Casey himself started publishing, a weekly market guide for inves- tors in his spare time. That's not likely to happen. But. meanwhile, consider what a great slogan the situation offers for CIA recruiters. Remember the Navy's great old pall, "Join the Navy and see the wqrld"? Row about -Join the CL4, and play the stock market"? Approved For Release 2005/11/28 : CIA-RDP91-00901R000400080001-8 Approve or e ase 2005/11/28 : VI5FbP91-0090 0004 2 June 1983 80001-8 STAT S I 4 -- U C Iti ' fttct1Ofi: 7, 11)11., I ?EP . .OnSTM.ENT.S. R$.-.,1H 1]CK.KE17?'.41SjitiriiN TM ct filib:, TS F ;WOK ii,:i D I E. 11..L- R EDE -.FLYNN s i ill. F'. Oft TIE: 0:FFt.r.1 OF OvEp1E$r ut **-1 Rt., .0.f ii, I ' 71'7,'F. To i I EY. I Bit..., F INPN1.14 OFFCNL R, S.D..;- F.:: OP: .., O. ) , C ? Ar 1, ' Y ; GU . , i .I. ':21i . .1 ,:fiRKE '.iliti-L1,, REVIEW6E1 - :.1.0TERE$11": EL1 IN. DINER. FI Ru . , $ t,tt . F OR:NI:, :-RELE.lifiE,.()1 T SECRET R :,.. . 1 RTE . 0 EQP, fit S.1:41.11,A2 : REPtikt EP I $6t1UO IN SA JFEFND . 0114EP !POPIP,Fiti$FIT I 0..: P1CST.Y FR13NSDPPE EPIP1 ! 1.1YER BEC4TE1 .1 tJtP i NC ....', tEFFSE EC4, , !I : CA SPP1,13 4 ; I ST "14' frr, I t 171J H F. I , - ED --1 w r) v t 1 ,.. EJf4I BLC,... - IP ',1, i II. ii NV - ,..... . Approved For e ase 2005/11/28 : CIA-RDP91-00901R000400080001-8 Approved For Release 2005/11/28 : CIA-RDP91-00901R000400080 FEw .10-L7RNAL-COI7RIER (CT) 2 June 1963 Casey continues trading The heavy stock trading by 0,1:A....Director William J. Casey is open to questionind. ft has been spotlighted in the financial disclo- sure forms filed by Casey, along with other government officials. And eyebrows are being. raised since the CIA director is privy to government secrets that can give him an advantage ? and possi- bly influence his judgment in matters of public interest.. Release of Casey's disclosures 'torn last year showed how he can take advantage of confidential information he pets in his sensi- tive post. He sold .more than S600,000 in oil stock as a 'glut de- veloped in the world markets in 1981. So the CIA set up a . "screening arrangement" with the aim of preventing him from tak- ing official .actions for personal pain. The new system permitted him to continue buying and selling stook, but required that the deputy CIA director and other senior officials of tne agency review his stock transactions regularly for possible conflicts of interes'.. The arrangement acknowledged the problem, but doesn't 'seem tight enough to win the confidence of the public. Casey's two pre- decessors in the CIA post did what was necessary to win such confidence as did other top Reagan administration officials with access to similar confidential economic data:They placed their extensive stock portfolio into a blind trust or sold off stook as COndltiOn of employment. Casey not only refuses to do this but doubled the number of his transactions in 1982 compared with the previous year. 1/A1 001-8 Approved For Release 2005/11/28 : CIA-RDP91-00901R000400080001-8 3 Approved For Release 2005/11/28: CIA-RDP91-00901R000 Ann= irrra.lz;..,) rAiss - PlION11?0?1????????? Casey Traded Heavily in Stock CIA Chief Has Access to Global Economic Secrets By WILLIAM J. EATON and ROBERT L. JACKSON, Times Staff 'Writers WASHINGTON?Central Intelli - gence Director 'William J. Casey, whose position gives him access to a vast range of secret information on global econornic.trends, bought and sold millions of- dollars worth of stock in 1982, according to his financial disclosure statement. C-asey bought securities worth at least $1.9 million and perhaps as much as $4.5 million in 61 firms last year, including stock in the oil, computer, airline and -drug indus- tries, the report indicated_ He sold stock worth at least $1 million and possibly as much as $2.1 -million in 30 firms in 1982. Including purchases and sales of Treasury securities, the CIA -direc;- tor engaged in 136 transactions last year, compared with 67 transactions in 1981. It is not possible to pinpoint the exact amount of stock that Casey bought and sold, because the re- porting form used by the Office of Government Ethics lists stock val- ues and other transactions only in broad -categories, such as ranges of $50,000 to $100,000. Casey's state-- LCS ANGELES TI1VES 2. Tune 1983 ? nierdiiiireleasedit?uesday. . _ Casey ,Amlike his two immediate predecessors at the tIA,?prefers to retain control over his own investments rather than -establish a blind trust President Reagan ? and, several Cabinet members in the economic poli- cy-making field .pat their investments in blind trusts when they took office. 'For-example, CommerceSecretary Malcolm Baldrige said he Iciecided to remove his Investments from his personal ?control and place them in a blind trust to avoid eventheappearance of any conflict of interest. "It'snot Mow I see it; it's how others -see it," Baldrige told a reporter. "In government, you're held to a higher -standard,;'' . s-tasey 4ong been heavily Involved in securities -transactions. :During his -confirmation hearing; he thsclosedAhat lie bolds :a ? vast 'portfolio and said he intended-to *maintain control -over it while- serving-as CIA director. : :?'CLA-spokesman Dale Peterson said Wednesday that twonopagency ,officials screen Casey's transactions to prevent'llirn -from tmaking -any '? decisions' that would reateeconflict f interest with-his stock holdings. ? Dats-Givea Only to Congress ?'When -asked if Casey had disqualified himself from any iCIA-;decisions result of this ? arrangement. Petenson, said, "We would not 'comment on that." Such .information, 'be- added, is available only to theSenate and House intelligence committees, which monitor CIA siCtivities; 'Phe screeningsystem was established May 28. 1982, after"Casers disclosure report-for 1981 indicated that he Solchnore -than 1600,000 'worth or stocks when oil priceSplunged that year because ;of a worldwide glut. ? Caserisone of a-relatively small number of U.S. officials Who ---have access to CIA estimates for world oil prodtictionand sales. - ' ? ? " CaSey's -two immediate 'predecessors at the CIA? ' 'Sta.nt fielt Turner and George 'Bush?both placed their ifivestritents in blind`trustS.So have Secretary of State GeorgeT:ShultzTreasury Secretary Donald T. Regan and William E.-Brock, the U.S. special trade representa- "There is no 'law or regulation that requires him ;Casey)'to Put his holdings into a blind trust?Peterson ' ' ? . 'CaSey has afinancial' viser *he makes the decisions to buYn:ir ;sell, but the CIA director is aware of 'them, _Peterson added. screening arrangement," he said, "aistireethatthere?willberib conflict Of interest:" Dozen' ? Have Blind Trusts - -Robert "Flynn, assistant director of --the OffiCe cif Government Ethics, - which receives the financial .re- portsnsaid,"Very 'few people have-blind trusts?maybe ?adozen'in this'Adthinistration:"? ?? - '.Casey's report indicated that he bought stocks heavily during the early days of the bull market last August, On Ang:26; he acquired eight Stocks worth .at least $285,000 'and pcistibly as much as $700,000. His statement Showed thebe'!bought-at 4east-$750,D00 worth of J.S. Treasury -bills live days' later 'but 'apparently sold them in late Septemberto finance a purchase of more stock. ?- Casief 'bought stock in Hewlett Packard, a major -defente ;contractor, 'at--well -a in -such companies as Approved For Release 200 IMV? . ? Ile ? NS Alls:1 AbbottLaboratories, Bristol-Myers and Merck. e- CHICAGO TRIBUNE 2 June 1983 Approved For Release 2005/11/28 : CIA-RDP91-00901R00 .,TrIE APPEARED ON PAGE William Casiijf dii? reports big eals From Chicago Tribune Whoa WASHINGTON Central Intelli- gence Agency Director William J. Casey, who has access to thegovern- ment's most secret economic data, traded heavily in the stock market last year, buying and selling several million dollars worth of stocks and other securities, according to 'his :fi.. nancialdisclosure form released Tuesday. ? ;,,? According to the form, Casey bought stock worth from $1.9 million to $4.5 million, valued at the dates of purchase, while selling stock worth at least $1 million andpossibly?more than $2.1 million. Casey apparently financed his stock purchases by.sell- ing U.S. Treasury bills, the -form showed. i Exact amounts :for his investments were impossible to*determine be- cause government- disclosure forms list the values within broad ranges. Unlike his two CIA predecessors. and otherlop.Reagan administration officials ?with,access to similar con- fidential economic data, Casey did not put extensive stock portfolio into trult,or any stock_as.. wwnvism gpse ZUUW11/28 : CIA-RDP91 a c STAT 0400080001-8 FOLLOWING RELEASE of last year's -disclosure form, which showed Casey selling more than $600,000 in oil stocks as a glut devel- oped in world Markets, the CIA es- tablished a "screening ar- rangement" aimed at preventing him from taking official actions for personal gain.. ? 4- , The new system permitted to continue buying and selling stock, but required that deputy CIA,xlirec-, tor John *McMahon and other senior CIA officials regularly review Casey's stock transactions for -,possi-- ble conflicts of interest. Asked .whether that screening ar- rangement had been triggered byl, any, of ?Casey's transactions, 'CIA press aide Kathtyn Riedel said, "The arrangement is ?fully,. im- plemented_ and _serving its intended purpose." She _refused 'further,mom- ment on the prilicedittre.41' The form shows that Casey dropped most of his remaining4h012., dings in the oil industry last-,year:' stock which just two years ago &int- 7 noted his portfolio. Many of Casey's new purchases :Avere in computers,- electronics, drug manufacturing,. restaurant and hotel chains and air- lines. ? . - CASEY BOUGHT large amounts of shares in such firms as Abbott Labo- ratories, Bristol-Myers Corp. Johnson ? Johnson & Johnson Corp., Digital Equipment Corp. and Schlumberger Ltd., all firms with extensive inter- national operations. During 1982, Casey Sold U.S. Trea- sury' securities worth at least $2.4 million And possibly more than $3:7 n while buying federal obliga- ti? orth at least $1.3 million and posy more than $2.1 million. ncial disclosure statements al owed that two of President Re n's top economic officials-- Trs-ury Secretary Donald Regan andqvCommerce Secretary Malcolm Ba e---made More in outside, in- - co n they did from their go- ent jobs m 1982. ever, their incomes were con- aid bly lower \ than in 1981, when bot ere still receiving substantial pa ts from former employers. ? STATEMENTS also showed a nge from 1 1 for Agriculture John Block, whose liabili- ,ti ? ew by at least 40 percent since his t report.*%, ? same time, the value of Bl. P. S assets, primarily in his Illi- corn and soybean farm and oth real estate holdings, have re- ma Stable ranging from $3 mil- li 13.8 million. k's liabilities- ranged in value .1 million to $9.9 million at -- the -of 1982, two to three times the ue of his assets. At the end of 198 showed liabilities of 15 mil- - -Oh 46.8 million. -14 000400080004 Approved For Release 2005/11/28 : CIA-RDP91-00901R0004 .ARTIOLS on FAXI WASHINGTON TIMES 2 JUNE 1983 CIA's dh?ector during bullish Associated Press iwA Director William J. Casey, whb sees the government's most seret economic data, traded heav- ily in last year's-bullish stock mar- ket, buying and selling several mil- lion dollars worth of stocks ,and other securities, according to his financial disclosure statement. Casey joined' thousands of other investors in buying large amounts of stock in the weeks after the major bull Tally started in mid- August, his annual statement -shows, On one day alone, Aug. 26, Casey bought stock in eight com- panies with the purchases totaling from $335,000 to $765,000. All 'told, in 1982 Casey bought , stock worth from $1.9 million to $4.5 million ?much,in the electron- ics and drug industries ? while . selling stock worth at least $1 mil- lion and possibly more than $2.1 million, the form showed. ? He apparently financed his stock purchases by selling off large amounts of U.S. Treasury bills. Exact amounts for his sales and purchases were impossible to determine because -government disclosure forms list values within broad ranges. Unlike his two CIA predecessors and other top Reagan administra- tion officials with access to similar! confidential economic data, Casey did not put his extensive stock port- folio into a blind trust or sell any stock as a condition of employment. But following release of Casey's disclosure form last year, which showed he had, sold more than $600,000 in oil stock as a glut devel- oped in world markets in 1981, the CIA established a "screening ar- rangement" aimed at preventing him from taking official actions for personal gain. The new system permitted Casey STAT 00080001-8 ra ed millions ,82 market rise arket to continue buying and selling stock but required that deputy director John, McMahon and other senior CIA officials regularly review. Casey'? stock transactions for pos- sible conflicts of interest. Asked whether that screening arrangement bad been set in motion by any of Casey's 1982 transactions, CIA spokeswoman Kathryn Riedel said, "The arrange- ment is fully implemented and serving its intended purpose." Riedel Added that day-to-day management of Casey's portfolio remains in the hands of a private investment adviser, Richard Ches- wick, although Casey retains ulti- mate control. Disclosure forms for Casey and many other high-ranking adminis- tration officials were released Thesday. ? Secretary of Labor Raymond Donovan listed outside income of at least $130,000, possibly as much as $211,000. He had reported outside income of at least $562,874 on last year's form. ? U.S. Trade Representative Wil- liam Brock made at least $51,000 in addition to his government income last year, nearly all of it from a blind trust he aet up. ? Senior White House aides ac- cepted cigars, airline travel, a clock and a crystal ashtray as gifts during 1982. According to the disclosure form, Casey doubled his number of transactions in 1982 compared. with 1981. He listed 136 sales and--pur- chases last year and 67 transactions his first year in office. Some of pharmaceutical firms that Casey bought stock in --- Abbott Laboratories, Bristol-Myers and Johnson &Johnson = have sub- sidiaries in Central America, an area where the CIA has taken an increasing interest and is conduct- ing clandestine activities aimed at countering leftist revolution. The form shows that Casey and his wife earned at least $478,600 and possibly more than $959,600 in outside income in 1982,. mostly from dividends and capital gains on their investments. As a -Cabinet- level official, Casey also receives Approved For Release 2005/1fgic:m36744d'Oa-ob901R000400080001-8 Charles E. Wilson Chief, Public Affairs Approved For Release 2005/11/28 Central Intelligence Agency Washington, D.C. 20505 (703) 351-7676 2 June 1983 FYI, note pp 11 and 12. This information was briefed an hour after I asked the White House not to go beyond "not our policy to comment on allegations of intelligence activities." STAT Attachment 0901 000400080001-8 retai PAGE 2-3 1 1 3-4 4-5 6-10 12 #722-6/1 Approved For Release 2005/11/2L819A-ECIPAHR)01R00040 2 June 1983 A 0TMLEAPPEARED . - ? New; York Timm Nokombe WASHINGION:--.Tbe-- Reagan ?ad? ministration' dropped --a plan this year to sponsor the overthrow of the government ..of Suriname, a former Dutch colony in South America, after congressional committees objected, administration .officials said Tues- day. - The plan, the officials said, Called for the formation of a-small:paramil- itary force -composed mainly of Suriname exiles. ,?oppodedi Xi) `the authoritarian government of U. Col. Desi Bouterse. The 'force was to infiltrate the capital, Paramaribo,. ? and oust Bouterse, the officials said. Bouterse, who seized power in a military coup in 1980, is.viewed by ? administration pffihials as an unpre- dictable leader with procommunist sympathies. Last December, his go- vernment rounded up 15 .leading .op- s' ea o :trti?? unname coup .?.? ponents, including 'prominent citizens, and summarily executed them, according to the .Administra- tion. Whether the plan to overthrow Bouterse called for his arrest, depor- tation' '.or .other action was unclear. The assassination of foreign leaders, formally prohibited by President Ford, also was 'barred by President -Reagan in an executive, order .on inteidgence activities issued in 1981. ? THE PLAN WAS?sponsored bythe Central Intelligence Agency, accord? ing to House Intelligence Committee members. ? ? -?-?? The .CIA was reported to have told congressional committees ? that the ouster . of Bouterse .would eliminate the possibility that the Soviet Union And , Cuba could use?-Surtiame .as a -base for-expanding their influence in South America ',?;wif? ? ? ; A CIA spokesman said late. Tues- day that we can't ,comment ? these kinds of 'allegations." . ? Several members of ,the House and Senate Intelligence Committees said they had objected to the acheme because they,felt the administration had not demonstrated that Suriname posed a threat to U.S. interests. The nation, on - the northern .coast of '....South America, .is bordered by French Guiana, Brazil- and 'Guyana, ? a former. British colony. ? ? . Committee., members :aaid they. were not opposed in principle to an attempt to overthrow. a -foreign go- vernment. But they criticized the CIA for advocating what a House Member called "the most ?extreme measure?' before -less severe methods were used, to -try ,to- steer . Suriname -away from Soviet and Cuban influence.' ? - ? ? Approved For Release 2005/11/28 : CIA-RDP91-00901R000400080001-8 ? STA I Approved For Release 200115f1.168pka-RER2ir 0040008 001-8 2 June 1983 WASHINGTON CASEY BY DANIEL G. GILMORE CIA Director William Casey, who once wrote a book titled "Tax Sheltered Investments," traded millions in stocks and securities last year while directing the spy agency, his annual financial statement shows. The 70-year-old intelligence chief, a multimillionaire before his CIA appointment by President Reagan in 1981, bought up to $5 million in stocks as the market began to boom. He also sold stock worth at least $2 million and disposed of a considerable amount in U.S... government securities. Casey, whose CIA salary is $69,800 a year, tooK 17 pages to list his income, investments and interests in property as required by the Office of Government Ethics. Unlike Reagan, Vice President George Bush and many other elected or appointed officials, Casey has declined to voluntarily place his holdings into a blind trust to avoid any conflicts of interest. Instead, after considerable controversy over his 1981 declaration, Casey now submit his annual financial report for screening by CIA Deputy Director John McMahon and Stanley Sporkin, the agency's general counsel. "Presidential appointees are required to establish suitable screening arrangements to assure they avoid participating in particular matters which may affect their specific personal financial interests," CIA spokesman Dale Peterson explained. The White House had no comment on the matter. Presidential spokesman Larry SpEakes said the screening process for Casey's financial transactions was approved by the Senate, the Office of Government Ethics and the CIA. "The White HOUSE does not become involved in any review," Speakes said. This sceening policy for Casey began following disclosure in his 1981 statement that he had sold more than $600,000 in oil stocks as supplies began tO become plentiful and prices dropped. Exact figures are not included on the disclosure report, only valuations which start at $1,001-$5,000 and end at "Over $250,000." Casey had three separate listings for U.S. Treasary Bonds, one for Treasury Notes and one for U.S. Treasury notes with valuations listed at more than $250,000 each. Eleven of his investments, stocks or property were also listed as more than $250,000. He held municipal and state bonds in New Mexico, Alaska, Georgia, Illinois, Minnesota, Connecticut and Florida and held stocks or shares in companies including Bristol-Myers, MCI Communications Corp., Marriott, Philip Morris, Wendy's, International American Express, IBM Canada, Sony and Hewlett Packard. Casey declared a limited partnership worth between $15,000 and $50,000 in Racquet Ball Courts. Approved For Release 2005/11/28 : CIA-RDP91-00901R000400080001-8 ARTipFtveidYnr/gliase 2005/11/28 : CIA-RW91-009 1R000400080001-8 .[JARDLAN (Up/ 1 Jane 1983 SuperSecret Army ?um Central Anferica _ By JACK COLHOUN -._ - Vietnamese. The new spy agency, has also . Louis Wolf, an editor ot t-overtAction Guardian Bureau ---- , -been involved in Africa and it aided in the Information Bulletin, told the Guardian, I WASHINGTON, D.C.?The Pentagon has .re'ieite of Army Brig._ Gen. James Dozier, The ISA appears to be part and parcel of the r., who was kidnaped by, the Red Brigade in , expansion of special operations activities by 1 a new spy agency?the Army's Intelligence. Italy. . .-- the military services." Wolf said the pace of I Support Activity (ISA)?for worldwide-covert -Elsewhere around the- world. . . the' unit the integration of intelligence operations and operations and?n inielligence,gathering-activi- .. - as provided military -equipment to foreign "the military picked up during the Carter ac we in ties. ..:-- ? . - - - --?-'.-- ? ? , ,- '-iforces :and deployed servicemen using false -, administration. But it Was given a big boost, 1 The supersecret;ISA is currently operating identities to oollect intelligence," the New ? be added, by the Reagan administration's ' in Central America, --but if also has been york Tunes reported. enthusiasm for interventionism and covert t involved elsewhere in the third world -and The . . ISA was 'tasked" by CIA Director operations. Western Europe since it was-set-up in 1980. William Casey to undertake operations in Ralph McGehee, authorOf -Deadly Deceits: - For-at least its -first year, -.the ISA acted Central America, which still continue. An My 25 Years in the-CIA," said in an interview illegally, circumventing the congressional . unknown -number of ISA operatives, using that "it is not -surprising" that the ISA -oversight process -regarding clandestine 2.u.:s. military cover,- are reported to be "popped up" in Central A-merica at this time. operations. . ? gathering intelligence data in El Salvador. "There were so many military intelligence The ISA' s existence has been disclosed at a And the new military intelligence outfit also units in Vietnam. it was hard to keep track of time of growing -opposition to covert U.S. .is involved in .theCIA's war against them,- McGehee commented. warfare against Nicaragua. In a related Nicaragua. - -? Another factor in the development of the development the -Reagan administration's According to the-Miami Herald, the "CIA ISA is the Reagan administration's opposi- figleaf claim that this activity is not intended , and u.e..... militarv?operatives" have "as-_ tion to legal restrictions regarding covert to overthrow the Managua government.- - --- - - operations, which officials complained limited became even less credible last week. The -"gamed virtual day-to-day control" over the the:41tei-tiveness of U.S. intelligence New York Times, citing congressional right-wing cOntras' war to topple'the ' 'sources, reported that both CIA chief William Sandinista government. The Herald 'said'U.S. Operations. The Activity was an intentional entfru. n around the congressional Oversight Casey and Assistant Secretary of State intelligence agents -confer (Jar with the process developed during. the mid-1970s, Thomas Enders have recently told members - counterrevolutionaries to plot military stra- - - . . _ ..._ of Congress that the 'U.S.-directed "contras" tegy and to pinpoint attacks. Jay Peterzell, a Center for National have a good chance of toppling the Sandinista . The covert operations against 'Nicaragua Security Studies analyst, pointed out that the government by the end of denied the report the next day. ? Negroponte, U.S. ambassador to Honduras. John ISA "has been responsible for a number of the year. Casey -are coordinated from Honduras by Jo illegal clandestine activities conducted with- "The Activity," as the new military Most of the U.S. personnel in Honduras are out either a presidential finding or a report to intelligence group is known, was started intelligence operatives, including "50 or 60 the before the failed attempt to rescue IJ.S. U.S.-military officers--all in plainclothes-and 'congressional) intelligence commit- tees." In fact, the Activity was unknown to hostages in Iran. One knowledgeable official many of them of Puerto Rican or Cuban the intelligence committees until 1982, and explained-to the Los Angeles Times that "the descent. ... ," the Herald observed, military decided that they needed their own The CIA and U.S. military operatives are some members don't believe they've gotten outfit to collect intelligence on. areas where responsible for the daily contact with the /he full story vet. they are asked to fight." . contras, including debriefing them upon Under the congressional oversight system - The Central Intelligence Agency, the return from raids into Nicaragua. The U.S. a presidential finding must be issued opera- official said, was unresponsive to the intelligence agents also analyze raw data explaining the necessity of a covert -tion. The administration also is required by militarv's requirements because it had gathered in extensive spy operations focused becorne too preoccupied with maintaining irs on Nicaragua. _ law to report to the House and Senate intelligence committees regarding proposed presence and -assets in Iran to be ablet to: The driving force behind the creation of the actions. Committee members cannot veto supply intelligence and equipment for Desert secret Pentagon intelligence unit appears to; , . 1. the 1980 aborted U.S. rescue mission. be retired Army - Gen. Richard Stilwell, secret operations, but the oversight process . gives members an indirect influence and , Other officials added that the Defense deputy undersecretary of defense for policy. Intelligence Agency- (DIA), the Pentagon's The Army established the Activity as part of allows them to ask questions. The only way . for Congress to stop a covert action, however, ? official spy unit, was too well identified to be - its Intelligence Directorate, currently com- , to cut off funds for it. effective. .,.._ mended by Maj. Gen. William .Odom. is ? Since 1980 the ISA has undertaken at least Although the -whereabouts of the ISA So far, Congress has failed to respond , decisively to the CIA's secret war against the 10 missions. The Activity reportedly helped . headquarters is . unknown, "some of its Sandinistas, an operation in -bold violation of ; 1 former Army Special Forces officer James- operations were run out of Fort Bragg N.0 , international law and the so-called Boland : (Bo) Gritz's clandestine foray into the jungles apparently as an extension of the Ai-, my:s Capitol Hill lawmakers have to date been of Laos in search of missing U.S. military Special Forces [headquarters) there" the Amendment. Thus it is no great surprise that .. ' personnel allegedly held captive by the Ne,' York Times reported. silent about the Pentagon's new spy unit and its activities in Central America. Approved For Release 2005/11/28 : CIA-RDP91-00901R000400080001-8 li ' Approved For Release 2005/1N8iS*113B111-0090 1 June 1983 1R000400080001-8 KOPPEL: The White house had no comment. The CIA had no comment, and the State -Department went only a hair further. 'We don't comment on intelligence activities,' said state, 'but as a matter of policy, it is not the policy of the government of the United. States to overthrow the government of Suriname.' That was all in response to a report by Carl Bernstein on this broadcast last night. In that report Bernstein quoted Congressional sources as claiming' that CIA Director William Casey told the House and Senate intelligence Committeeslast December of a covert. CIA plan to overthrow the government of Suriname. in the face of heated congressional opposition, the plan was reportedly dropped. Today the New York Times reported that its independent sources had 'confirmed that story and Bernstein reports that other cqngressional sources have now also oonfirmed it. A little later in this broadcast we will talk with henry -Kissinger, Richard Allen and Stansfield Turner about the pros and cons of covert activity. But first, Fred harte, leader of the Council for the Liberation of Suriname. hr. hate, the conditions in your country?you claim they are eve= worse than we have heard. how bad are they? hARTE.: Well, Ted, they are very bad because to look at the Suriname situation, one should view then on two levels. The first is the level of the national unit in which we have to do, we are confronted with armed. bands in a fragmented state which are terrorizing the majority of the people of Suriname. Now, 99Z of the Suriname people are against these armed bands, and it is a matter of fact. that conditions ate far worser, worse than we've, you've heard here. KOPPZL: Ead you heard,,let me just ask you first of all whether you had heard, and 1 mean has the CIA for example, been in touch with you .or any of your collegues, about providing assistance? ?SAME: No, we don't, we know nothing whatsoever about CIA and CIA contacts. We are trying to liberate Suriname from (inaudible) in fact criminals, and we are determined to to tha and we have -embarked on this course. STAT Approved For Release 2005/11/28 : CIA-RDP91-00901R000400080001-8 Approved For Release 2005/11/28 : CIA-RDP91-00901R000 NBC - Nightly News FINANCIAL DISCLOSURE/ CASEY 1 June 1983 400080001-8 STAT MUDD: The financial disclosure forms from the Reagan Cabinet were released this week, and all members appear either to have sold any holdings that would create a conflict of interest or have put their holdings in a blind trust. The one exception is CIA Director William Casey who has retained his extensive stock portfolio. Economics correspondent Irving R. Levine reports the details of Casey's disclosure form. LEVINE: When Casey, who headed the Reagan election campaign, was confirmed by the Senate as CIA chief, he asked for and got unusual White House permission to Continue to buy and sell stock himself, not through a blind trust, even though the CIA has access to secret economic information. And Casey's financial disclosure form shows him a heavy trader in the stock market last year, including in companies with holdings in foreign countries where the CIA gathers information. On August 26 alone. Casey bought stock in these companies. (Abbott Laboratories, Bristol-Myers, Harland, John E. Co.. Johnson & Johnson, La Quinta Motor Inns, MCI Comm. Group, Scotty's Inc., Sensormatic Elec. Corp.) purchases amounting to between $335,000 and $765,000. The disclosure form is no more specific than that. On September 20, purchases amounting to as much as $800,000 in these stocks. (Bristol-Myers, Digital Equipment, Johnson & Johnson, MCI Comm. Corp.., Paradyn* Corp., Scotty's, Inc.) Most have gone up considerably in price. In all, Casey bought stock last year worth as much as $4.5 million and sold stock for up to $2.1 million. A Casey predecessor at the CIA, Admiral Stansfield Turner, was required to put his holdings in a' blind trust, but Turner doesn't believe CIA information necessarily would help in stock trading. ADMIRAL STANSFIELD TURNER (Former CIA Director): I don't recall any situation where I learned something that would have been useful in a personal financial sense. I think the issue here is one of appearance as much as it is a fact. LEVINE: Administration officials point out that Casey's stock trading is periodically reviewed for any conflict of interest, but that review is done by Casey's subordinates at the CIA. Irving R. Levine, NBC News, Washington. Approved For Release 2005/11/28 : CIA-RDP91-00901R000400080001-8 Approved For Release 2005/11/28 : CIA-RDP91-00901R00040 NBC - Nightly News 1 June 1983 REAGAN/ MUDD: The CIA refused today to comment on a report that SURINAME Director Casey, with the President's approval, had planned a covert operation to overflow the government of the small South American country of Suriname, but congressional sources confirmed the plot and said Casey backed away only when the Congress balked at the idea of using a paramilitary force of Surinamese exiles to depose the government, which Casey felt was coming under Cuban influence. Suriname was a Dutch colony until. it got independence in 1975. Approved For Release 2005/11/28 : CIA-RDP91-00901R000400080001-8 Approved For Release 2005/11/28 : CIA-RDP91-00901 ? CBS Evening News 1 Tune 1983 .000400080001-8 REAGAN/ RATHER: CBS News today confirmed reports that President Reagan suiNkmr last December authorized and then abandoned a secret plan to overthrow the government of Surinam. CIA Director Casey backed that plan, believing that Surinam's government was drifting into the Cuban orbit, but after a briefing, Senate and House members objected to the plan, and it was finally dropped. Approved For Release 2005/11/28 : CIA-RDP91-00901R000400080001-8 ARTrr proved-For Release 201Thrin218( : CIA-RDP91 -00901 R0004000 1 JUNE 1983 rtrrr CIA chief very active on Wall St. Special for USA TODAY WASHINGTON ? CIA chief William J. Casey, who has ac- cess to the government's confi- dential economic data, traded, several million dollars worth of stocks and other securities ia the stock market last year, ac-1 cording to financial disclosure statements released Tuesday. r Casey bought stock worth from $1.9 million to $4.5 mil- lion, while selling stocks worth, at least $1 million to $2.1 mil-I lion, the form showed., I After release of his 1981 dis- closure form last year, which showed Casey had sold 8600,000 in oil stock as .a world market glut developed; the CIA established a new rule. A17 though Casey would be allowed to continue to bade on the mar-, ket, it required that Casey's' stock transactions be reviewed to assure against -possible coni flicts of interest. STAT 30001-8 The 1982 form shows that Casey and his wife earned at ' least $478,600 to $959,600 in outside income. For three other Cabinet members ? Treasury Secre- tary Donald Regan, Commerce Secretary Malcolm -Baldrige and Labor Secretary Raymond Donovan ? 1982 was a verY, good year financially, though! not as good as 1981. The record shows: 'Megan, former head of * Merrill Lynch & Co., made at least $113,000 in outside in- come last year, most of it ema- nating from a blind trust set up , when he took the Treasury. post. He reported income of at least $715,000 in 1981. ^ Balclrige received be-: tween $198,800 and 1270,006 1 from -outside the government last year, including $108,813 in , pension payments from Scovill Inc., the Conrieclicut firm he headed before joining the gov- ernment. He listed income of at least $1.6 million in 1981. ? Donovan listed outside in- come of at least $130,000 in 1982, compared with1562,874 in 1981. He listed assets of $483,000 to $2.45 million. Approved For Release 2005/11/28 : CIA-RDP91-00901R000400080001-8 Approved For Release 2005/11/28 : CIA-RDP91-00901R000 kRTI CL Imre= iATA SHIN G T ON P OS T 1 JUNE 1983 ? 400080001-8 CIA Targeted Suriname, ABC Reports United Press International President Reagan author- ized covert CIA actions aimed at .overthrowing -the government of Suriname last year but. backed off because of strong congressional ?. op- poition, ABC News reported last night. - ABC said the rationale of Reagan and the CIA was that Desi Bouterse, military. leader of the South American state, was moving toward close alliance with. Cuba White House spokesman Anson Franklin said last night,'"It is the administra- tion'spOlicS, not to comment on -any reports of cOvert tivities." Rep. Edward F. "Boland (D-Mass.),. chairman -cif the House Permanent Select, Committee ?on Intelligence, said, don't discuss any matters of that committee.' ? ABC reported that CIA Director William 3. Casey, as required by law, informed Boland 's panel and the Sen- ate Select Committee on In- telligence of the plan to cre- ate a paramilitary force of exiles from Suriname. In the face of overwhelm- ing bipartisan opposition, the administration reportedly reconsidered. Several weeks after Casey's appearance on Cattitol Hill, he told mittees that the plan was being withdrawn, ABC said. Approved For Release 2005/11/28 : CIA-RDP91-00901R000400080001-8 TAT Arica AppEketproved For Release 20ritliggpp6RE2DR91-00901R0 1 June 1983 LIN PktIE 0400080001-8 Reagan OKd bid to oust Surinam chief, ABC says Washington (AP) ? President Reagan last December authorized the Central Intelligence Agency to try to overthrow the government of Suri- nam in secret.,, but the administration ? -dropped -the idea -after objections - from Congress, ABC ;News said last night. . ? -- CIA spokesman ?- Dale Peterson said: "We can't :comment on these kinds of allegations." - According to the report prepared for the "Nightline" program, a -tran- script of which -was 'released in ad- vance, CIA Director William 3. Casey told the Rouse and Senate intelligence committees that Surinam's ruler, Desi Bouterse, -was leading the coun- try into the Cuban-orbit. The CIA plan reportedly called for the formation of a paramilitary force of Surinamese exiles to topple. the Bouterse government. But committee members of both parties objected that there was no ev- idence that Cuba was "manipulating ? the government in Surinam', or gain- ing a military foothold in the coun- try," the network said. - After the Senate committee weighed in with objections, Mr. Casey dropped the plan, it was reported. Mr. Bouterse, who as a lieutenant colonel commanded Sminam's army, ? took power in a coup in February, Unned ress Internanonar DESI BOUTERSE . Surinam's military leader 1982. Last fall, -opposition mount- ed, be -rounded up 'dissident leaders, including journalists and labor lead- ers. Fifteen were shot to death, ac- cording to the government account, while trying to escape. After that, the Dutch and U.S. gov- ernments suspended aid to Surinam, a Dutch colony_until 1975. More than 1,000 people reportedly have fled the tiny country on the northern coast of South America. Approved For Release 2005/11/28 : CIA-RDP91-00901R000400080001-8 Approved For Release R295/y101g8./TARRPA111.2R01g 1 June 1983 SURINAME p. S. DROPS PLAN TO OVERTHROW GOVERNMENT OF SURINAM BY PHILIP TAUBMAIC 00400080001-8 STA WASHINFON - THE RERGRN ROMINIETRRT3ON DROPPED R'PLRii TH1P, YERR OVERTHROW THE GOVERNMENT OF SURIWPME5 THE FORMER DUTCH COLONY 3N SOUTH AMERICRf PFTEF: CONEREESIONRL COMMITTEES OtJECTED5 RDMINISTRPTION OFFICIRLS SAID TUESORY. THE PLRN5 RCCORD1NO TO THE OFFICIRLS5 CRLLED FOR THE FORMRTION OF R SMRLL PRRRMILITRRY FORCE COMPOSED PIR2NLY OF SURINRMESE EX3LEE OPPOSED TO THE R1THOR2TRRIRN GOVERNMENT OF LT. COL. DEE: BOUTERSE. THE FORCE WRE SUPPOSED TO INFILTRPTE THE CRP2TALs PRRRMRRIBOs RHO OUST THE GOVERNMENT5 THE OFFICIRLS SR3D. BOUTEkSE WHO SEIZED POWER IN P KILITRRY COUP IN i9S0.5 IS VIEWED BY RERGPN ROMINIETRRT2ON OFF3C1fiLS RS RN UNPREDICTRtLE LEROER WITH PRO-COMMUNIST SYMPRTH/EE, LT DECEMtER HIS REGIME ROUNDED UP 4r LERDINC OPPONENTS INCLUDING PROMINENT CIT2ZENS5 RND HRD THEM SUMMRULY EXECUTED! RECORD3NE TO THE POMINISTRRTION. WHETHER THE PLRN TO OVERTHROW BOUTERFE CRLLEO FOR HIS FIRREST OR DEPORTRT2ON OR OTHER RCTION RGRINFT HIM WRS UNCLERk. THE RSERSEINPTION OF FOREIGN LEROERS FORMRLLY PROHIBITED tY PRESIOENT FORO WFS RLSO tPRRED PRESIOENT RERGRH IN RN EXECUTIVE ORDER ON INTELLIGENCE RETIVITIES HE 1SFUED 3N 19B1. THE PLRW WF F SPONF.ORED BY THE DENTRRL 3NTELL7GENCE RGENCY5 PCCOROING TO HOUSE /NTELL2GERCE COMMITTEE MEMtERS. THE PURPOSE NPR. TO OVERTHROW D.OLONEL BOUTEREE, THE CIA WRS REPORTED TO HRVE TOLO CONGRFF-52ONRL COMMITTEES THRT HIS OUSTER WOULO EL3M3WRTE THE POSFIE:3LITY THRT THE SOVIET UNION AND CUE:R ROULD TRY TO USE SUR3NRME PS P ERSE FROM WHICH TO EXFPND THEIR INFLUENCE IN SOUTH RMERICR. SEVERRL MEMEERS OF THE HOUSE RHO SENPTE INTELLIGENCE COMMITTEES SAID TUESDRY THRT THEY HRD DE7ECTED BECRUSE THEY FELT THE ROMINISTRRTZON HAD WEIT DEMONSTRRTEO THRT SURINAME f'OFEO P THRERT TO UN:TED STPTEF INTERESTS, SURINPME5 ON THE NORTH COST OF SOUTH RMER2CR, 3E tORDERED BY FRENCH GUIRNR! BRPZIL RHO 6UYPNR5 R FORMER BRITISH COLONY. WHILE NOT OPPOSED IN PRINCIPLE TO THE IDER OF RTTEMPTING TO OVERTHROWING P FOREIGN GOVERNMENT COMMITTEE MEMBERS SR1D THEY HO OR172C1ZED THE CIA FOR ROVOCRTING WHR7 ONE HOUSE MEMtER CRLLED "THE MOST EXTREME KERE" BEFORE LESS SEVERE METHODS WERE -USED TO TRY TO STEER SURINPNE RWRY FROM SOVIET RHO CUBRN INFLUENCE. TO CLA:ELVDED Approved For Release 2005/11/28 : CIA-RDP91-00901R000400080001-8 ARTICLE APPEA r/ed For Release 2005Ell4ZaL (NALROJD9-1)0042,:1R00040 PAG 1 June 1983 CIA Chief's Stock Trades Were Heavy During 7-982 WASHINGTON (AP) ?The director of the Central Intelligence Agency, Wil- liam J. Casey, bought and sold several million dollars of securities in 1982, ac- cording to his financial disclosure form released yesterday. Mr. Casey bought stock valued at 11.9 million to $4,5 million, according to the report, and sols1 stock with a value of at least $1 million and possibly more than $2.1 million. The form indicated that the CIA director apparently fi- ? nanced some purchases by selling Trea- sury bills. = ? . , -Exact amounts for his investments - -were impossible to determine because government disclosure forms list values within -broad ranges. Unlike his two CIA predecessors and other top Reagan administration offi- cials, Mr. Casey didn't put hisrextensive stock portfolio into a blind It-6st or sell any stock as a condition of employ- ment. - Following release of last year's dis- closure form, which showed Mr. Casey selling more than $600,000 in oil stocks .as a glut developed in world markets, .the CIA established a "screening ar- rangement." The arrangement permits Mr. Casey to continue buying and sell- ing stock but requires that Deputy CIA Director John McMahon and other se- nior CIA officials regularly review Mr. Casey's stock transactions for possible conflicts of interest. The report shows that Mr. Casey dropped most of his remaining holdings in the oil industry last year. Many of his purchases were in computer, electronic and drug-manufacturing concerns, res- taurant and hotel chains and airlines. 1 0080001-8 Approved For Release 2005/11/28 : CIA-RDP91-00901R000400080001-8 AopTzed For Release 2ox5$1 2terconzoR91f-oo9o1 Roo?Zoom:mai-a ARTICLE APP RtD ON PAG JUNE 1983 WHO'S WHO in the Administration No one may ever again attain the mastery over White House perks and status badges that Bill Gulley demon- strated during his long reign as director of the White House Military Office under Presidents Johnson, Nix- on. and Ford. But Gulley's counterpart in the Reagan administration, presidential assistant Edward V. Hickey Jr., appears to be upholding the legacy. If you want a beeper, a White H ouse phone in your home, a TV in your office, or a car or plane to dispatch you to your destination, word in the White House is that you first have to clear it with Ed. .. . Behind the enmity within the Reagan administration for the James Baker/David Gergen /Richard Darman faction lies a lot more than jealousy and personality differences. For al: their considerable talents. these men are viewed by ideological conservatives as part of the "survive tomorrow" side of Washington. motivated not by the hope that the right cause will prevail, but by a desire to wake up the next morning with one's power ? undiminished. Anyone who's worked in government for idealistic reasons knows that nothing grates on a true believer more than members of the "survive tomorrow" crowd, who often come to be perceived as the worst enemies of all.. . . Around the halls of the CIA. director William Casey is famed for his frequently unintelligible pronounce- ments. Indeed. Casey is referred to as the first CIA chief who acts as his own scrambler.... Approved For Release 2005/11/28 : CIA-RDP91-00901R000400080001-8