Document Type: 
Document Number (FOIA) /ESDN (CREST): 
Release Decision: 
Original Classification: 
Document Page Count: 
Document Creation Date: 
December 19, 2016
Document Release Date: 
October 12, 2005
Sequence Number: 
Case Number: 
Publication Date: 
March 31, 1982
Content Type: 
PDF icon CIA-RDP91-00901R000400120001-3.pdf6.77 MB
Approved For Release 2005/11/28 : CIA-RDP91-00901R0004001200 ' Af: T ~. GI:E t,.1s ...~ I3 ON PAGE lb WASHINGTON POST 31 March 1482 By Thomas?B. Edsall .?,sue 1 = 'group,' of--five-;current-and-for mer. top federal-employes, including: -: `Villiam.. J.: Casey, : -director- `of. the, Central Intelligence; Agency;'owns a company that is part of. a consortium__ seeking 'loan and-price guaranteesr from the-U.S. Synthetic Fuels Corp; The company,- Energy-'Transition i Corp., is the managing partner in the' consortium. that was ? chosen last .week by the'synfue'rs agency as ;one of five finalists-competing fof"varjt~` ing types.of loan and. price supports. :The-con?ortium wants. to;'set'up? a plant in North Carolina for the con4 -.versioir of peat into;niethanol.- A spokesman.,?or the-;.CIA,-Dale Peterson; said Casey, is: a.."small, din active stockholder" in'Energy Tran- sition and-`-'knows nothing about the. workings of the company."..' 4 The.. othert .partners,in .ihi ..firm. ` .dministratpr Qf ~ the Energy - Re tration; Charlee. .- Robinson, former- deputy.secretary'of=state; Frank' G Federal Energy Administration and ;Wiiliam'.Turner,-.former'U:S.` repre sentative;; to ?the -. Organization foi "Economic'- Cooperation and, Deve . :opment.??i* r-r~, .g ether. during..*_the--Ford_adrninistra t tion. During.. the .: "administration ,l Export Import `` Bank and ' at ,;the 'State Department,as undersecretary for.econornic'affairs. Before that, he !was ehairmari of" the' Secuzities and Exchange Commission. ? There is no ` suggestionof `any im propriety_in 'connection with: Energy Transition's'application'' `~, a.. `Fri -said "the 'five o .n roughly: equal shares, but profits; if'and where they occur; would be distributed: 6-1 ;evenly,, the b";- going, to the""two owners - who actively run the firm. I .The federal support would ?anc= a They are Fri, the 'president, ~ and Robinson, the chairman: Casey 'did not include his interest in: Energy-Transition in his"-initial .financial. disclosure statement filed. 'Jan. 9, 1981, when his prospective nomination was under consideration by the Senate Select Committee on Intelligence. The firm was formed in ;early 1979. In August, however, Casey amended his disclosure statement to include .10 additional holdings, in' eluding his interest in Energy Tran- sition. In the amended statement, he described -the value of his stock at somewhere "-.between - $5,000' and Unlike many other Cabinet-level officials,: Casey did not-put his assets into a blind trust. .. Fri declined to disclose how the companies?in.the consortium would .benefit if the project is successful.. - ?Ther consortium; - Tailed.- 'Peat Methanol Associates, wants to build a plant near -Creswell; N.C., that _ would be ;capable . of. converting 676,500 tons-'of'peat a year into 67.5 million' gallons of methanol. The, principle source of financial backing sfor-the.project_is the: Koppers Co.,. acting,: through a subsidiary-called North Carolina Synfuela.Corp Fri; _ -said the. the, 'consortium:`. not :.seeking a' loan. guarantee ccovering, the. cost of the entire `project, In-' '-stead, it. wants a limited. loan guar- antee that-would, protect-the :consor-: rtium in-the event.interest rates rise ,higher"than anticipated in; the.:pro- posaL the Synthetic Fuels-Corp: to provide' ' price `_ supports' for the. methanol." ;This would protect the consortium if prices, of natural gas or crude oil, the' ' principle c ompeting fuels, fell' below methanol _prices, making the plant's product uncompetitive , ,--Zi `tion' to'"irisulate us from 'abnormal" events"in'the area of interest rates, oil-prices and gas prices, Fri said. Fri,said-'the question of Casey's involvement withrthe firm' comes.'up? regularly-_ we've discussed this ;.at 'board meetings"=but_the group has= been :unable to resolve the question : "Should .we.. ask hini` to' turn `in his shares?? n Casey does not, F'ri, pointed out, -attend board meetings or participate in the operation 61 the firm in any way. Beforehis appointment as CIA i di c re tor,.Casey served as the. secre- Fri said the group shared a coni- .mon entrepreneurial spirit, and, "We -.set out to.see -if an entrepreneur could succeed :in_ the synfuels: busi- In a brochure, the firm said it spe- cializes in determining new. markets, and technology; obtaining financing for projects, and, in the area of go ernment policy,. the anticipation of "the course of future government :'policy,' the, securing of -".necessary cooperation and approvals," and the encouragement of government "to 'create the climate in which the pri- .vate sector can. operate successfully' Approved For Release 2005/11/28 : CIA-RDP91-00901 R000400120001-3 STAT Approved For Release 2005/11/28 : CIA-RDP91-00901R0004 Tj ~ ~.? Dy X%UUCi'. r"_-., Globe Staff -,tR ~tMO ; WASHINGTOPi -= CIA director William--X Case y,15 a gone-fifth shareholder a. synthetic :fuels company.-with an applicatfon; be~ ? company.-with US fore the! government-spo. - F I m Corp it was Synthetic , learned yesterday. : N~.;.r `' . '.The company: -Energy Trarisi tion': Corp. .`.: seeks loan. and prime guarantees from the-agency fora eswe i. $350-million project in'Cr N.C..Called First Colony. the.project would : be the first to gasify peat too produce a fuel called methanol.;_;2 Others associated with Casey in the venture are former'membersof .~ the Nixon "Administration.,-d.7 which Casey served se acknowledged his interest 1n the venture.. The one-line, state. ; . rnent said:,,. Casey. is-a small; inactive stockholder, and? knows: nothing about the activities of the.' THE BOSTON GLOBE 31 March 1982 I s ^ f l e e first', CIA:director in at e t ~thx~a;Administratios~who'naintaiiis direction; Mal affairs: He has not piit his' f itian: of x-ts~owir fi>ane1al trai sactions: into a blindt trust. as=did;' George.Busi'lnderPresidentRichard M vixon la'Turner in the Carter Administra; f ie, and;stans 'tioirl aceordirig to Spencer Davis of the.Senate +:. ~ RUbeTL~W?z~ T"f ~ a . W' ayitttt~w.....,.. :.- . stn,- of the-'Energy esearetxparidDevelop}?iefitAdminis, a one, =T}e art` of the Energy . V. ~wHl tate~c'Ciecame part , invent is thel"iead of Energy.Transition Coip Fri' 'that Casey, s r' the tsaicl_tester ay, opfgtion is about zera } ,s, ?~ 3 , x .'fOi'ine~~ir2 Fi=t said. that the corporation was years-ago, one. the original' guys "in .theiv.erit4re- said , FrcP' said that when Casey was appoi'ted di 4 Ga.}yi ?v y r.,a a66 ds only interest'now is that o . a s ar z} treys in the firm are Casey. Fri: r e pa Cliatles W. Robinson, former deputy Secretary- inistrator of d m 'of-State; Frank G. Zarb, former a Administration. and 1Vii- l Energy ttit~edera former US representative to the. liain:T..urner, !- --- For Economic Coomration and De- duri ?.o vetppment. The men served ogeth a EoY`d and Nixon administrations:. -1 Casey served d ' ,x. t Gerald ,?thlder PresidenFor Bank and at t i . mpor bkh'as head- of the Export- tment as and rsecretary for eco- D epar tate th" He was was Nixon= chairman of ffairs I1 ii a . `ti*Securtties and Exchange Commission ddit spC3i ors in . a Corp. Koppers Co: and J.B Sunderland This consortium, called Peat Methanol Assn ~'ciates, wants to build, a -plant: near Creswell; N.C., that would be ca'pable'.of converting 676,500 tons of peat a year into 67.5 million gal- Ions of methanol. The principal source of finan cial backing for the .project is the Koppers Co `acting through a subsidiary called North Carole el S r y,,.... --t ca Financing for the venture would all be pre if it wins approval from.the-Synthetic Fuel t v e: a `,Corp. Where. the government=sponsored agen-) `cy's role would come into . play; according to Fri. Is in a complicated set" of guarantees Involving the price of the methanol fuel arid in the interest, loari aid on the $350-miilion. t , es p ra r The agency would subsidize the price of what; . Fri referred to as "uneconomic". methanol fuel, x ceeds what U. or fuel whose:cost of production e et:in,theworld market.', Fri said it would could g also subsidize the-. corporation' temporarily for ital invest- the ca t p rates on teres . fluctuating in._ 'ment of the project. Without such a subsidy, the `said, the-project would beti`uneconomic' Casey. according 'to-a source who has 'searched the Senate Intelligence Committee. r :cords, did not file=.with,,t ie?committee adiscl sure of his-involvement. with:; the First`, Colony ;project, or his role as .one of the.'sponsors;with Energy Transition.Corp.,According to the same source, he did filed an amended:statement last summer when the entire confirmation pros f Casey was reopened. -.Casey did not include his Interest in Energy 'Transition in his initial- financial disclosure hive nomination was under consideration by the Senate Intelligence Committee The.firin was ea l Ne s 4 ^r ? . -.: wt aced a., ? Last,?August: however, y Casey amended ..his'. ;disclosure statement ao include. 10 additional- ;holdings: including his.interest ire Energy Tran-,. sition. In the amended statement, he described 'the value: of his stock at,somewhere- between $5000 and $15 .000 , .1 The Synfuel. Corp. was established as. part of. . yPresiderit-jimmy-Carters energy program to en-.' ;production of alternative. . .,s,.,~.~.~.~~ Approved For Release 2005/.11/28: CIA-RDP9f'~ ter.6 --. ,. ,. r.ON- Approved For Release 2005/11/28: CIA-RDP91-00901R0004q 31 March 1982 CIA Director William Casey and four former top government employees own a company that is part of a consortium seeking loan and price guarantees from the U.S. Synthetic Fuels Corp., it was reported Wednesday. The Washington Post reported Casey is a part owner of Energy Transition, the managing partner of a consortium that would like to set up a plant near Creswell, N.C., for the conversion of peat to methanol. CIA spokesman Dale Peterson told the Past, Casey is a "small, inactive stockholder'' in the firm and ''knows nothing about the workings of the company.'' The Post said there is no suggestion of impropriety In Energy Transition's application. The consortium is one of five finalists chosen last week by the corporation aaa competition for varying types of loan and price supports for synthetic fuel ro;ects. The paper said the other owners include: Robert Fri, former deputy a ,,' inistrator of the Energy Research and Development Administration; Charles Robinson, former deputy secretary of state; Frank Zarb, former administrator a the Federal Energy Administration; and William Turner, former U.S. representative to the Organization for Economic Cooperation and Development. The five served together during the Ford administration, with Casey the Pad of the Export-Import Dank and undersecretary for economic affairs at the State Department. Casey, the Post said, did not reveal his holdings in his initial financial disclosure statement of Jan. 9, 1981 when his CIA nomination was under Senate cvils3ideration. In August, however, he amended his statement to include 10 additional holdings and listed the value of his Energy Transition stock between $5,000 and $15,000. Fri told the paper that Casey, who served as secretary of the board prior to his appointment as CIA director, does not now attend board meetings or participate in the operation of the firm in any way. Fri said the consortium, called Peat Methanol Associates, is seeking limited loan guarantees that would protect the consortium in the event interest rates rise higher than anticipated in the proposal. in addition, the Post said, the consortium wants the Synthetic Fuels Corp. to provide price supports for methanol. This would, Fri told the Post, "insulate .us, from abnormal events'' in the areas of oil prices, gas prices and interest rates. Approved For Release 2005/11/28 : CIA-RDP91-00901 R000400120001-3 STAT Approved For Relea, R Aq/8 J 8j t frl~A[1J,?91-00901 R00 31 March 1982 CIA Director William Casey is financially involved in a C ur, rya was tapped to compete for synthetic fuel. subsidies from the government, but an associate says he does not have an active role in it. Casey, whose business dealings were investigated last year by the Senate Intelligence Committee, is One of five Stockholders in Energy Transition Corp., but "is not active" in the firm, Robert W. Fri confirmed Tuesday night. Fri is president of the corporation, which is the managing partner of the consortium Peat Methanol Associates. The consortium is one of five finalists selected Friday by the government's Synthetic Fuels Corp. to compete for different types of loan and price supports. The government corporation was created by Congress in 1980 to distribute billions of dollars In various types of financial Incentives _ but not direct aid _ to spur construction of synthetic fuels plants. Peat Methanol Associates proposes to build a $350 million plant at Creswell, N.C., to convert peat to methanol. Casey played no role in the synthetic fuel project, said Fri. "Mr. Casey is a small, Inactive stockholder," said CIA spokesman Dale Peterson. "He knows nothing about the workings of the company." All five principals in Energy Transition served together in the Ford administration, The Washington Post reported in today's editions. Fri was deputy administrator of the Energy Research and Development Administration. Casey served as head of the Export-Import Bank and as undersecretary of state for economic affairs and before that was chairman of the Securities and Exchange Commission. The others were identified as Charles W. Robinson, former deputy secretary of state; Frank S. Zarb, former head Of the Federal Energy Administration; and William Turner, former U.S. representative to the Paris-based Organization for Economic Cooperation and Development. The Senate Intelligence Committee concluded a four-month investigation of Casey's business dealings last December. It issued a six-page report which gave him what was considered a backhanded endorsement, saying that "no basis has been found for concluding that Mr. Casey is unfit" to stay in his CIA post. The committee's report said Casey had omitted large amounts of Information an his Initial disclosure forms both to-the committee and to the Office of Government Ethics. Approved For Release 2005/11/28 : CIA-RDP91-00901 R000400120001-3 Approved For Release 2005/11/28 : CIA-RDP91-00901 R000400120001-3 In his initial disclosure to the committee in January i9zi, Casey omitted at least nine investments, valued at more than $250,000, the report said. Casey did list his holdings in Energy Transition in an amended financial disclosure statement he filed last August. He put the value of the stock at between $5,000 and $15,000, according to the Post. Regarding Energy Transition Corp., Fri said the five principals own roughly equal shares, but said that most profits, if any, are to be distributed to the two principal managers of Energy Transition - Fri, the president, and Robinson, the chairman. Peat Methanol's principal backer is droppers Corp. Fri told the Post that the project sponsors seek limited loan guarantees to protect them from increases in interest rates and price supports for the methanol output. The Synthetic Fuels Corp. said in its Friday announcement it was not certain I that any of the five companies would win a subsidy. Approved For Release 2005/11/28 : CIA-RDP91-00901 R000400120001-3 ON PACE Ap /e 1 For Release 20bP% e1 - DP91-00901R0004 Foroliffillilln Lu-buVISIS11111111111111111111111HU191h W T Oy Operate in Washington With expert American advisers and millions to spend, nations from Australia to Zaire know how to get what they want from Uncle Sam. Casting aside traditional diplomacy, one nation after another is plunging into American politics with multi- million-dollar lobbying campaigns aimed at swaying official U.S. policies. Reaping the benefits of such spend- ing-estimated at more than 100 mil- lion dollars annually-are scores of for- mer high U.S. officials, including senators, House members and cabinet secretaries, whose political savvy and access to power are increasingly being sought by foreign governments and businesses. Even relatively poor countries are spending heavily, often hosting lavish parties, grinding out press releases and underwriting junkets in an effort to im- press American policymakers. For many "hired guns" of foreign governments, the aim is simply to cre- ate good will for the country they rep- resent. Increasingly, however, the goals are more specific: To win for their clients more U.S. aid, trade con- cessions, technical assistance or mili- tary hardware--or to block another country from obtaining such favors. Among recent examples-- 0 President Reagan's proposed sale of AWACS radar planes to Saudi Ara- bia, which Israel opposed, was snatched from apparent defeat in the Senate by an intense lobbying effort orchestrated by a Saudi prince and his U.S. advisers. ^ The impoverished nation of Zaire paid the Washington-based law firm of Surrey & Morse $208,524 over two years to plead its case for more foreign aid. ^ DGA International, a specialist in representing foreign interests, was paid $927,855 by Morocco to portray that country as a "stable in fluence" in Africa and to reverse a ban on the sale of arms to Morocco. r Former Defense Secretary Clark Clifford and law partner Paul Warnke, formerly of the U.S. strate- gic-arms negotiating team, received $200,000 to help the Australian meat industry gain access to the n access tote American market. They later helped resolve a dispute over the discovery of horse and kangaroo meat in a shipment of Australian beef to the U.S. Justice Department records show 701 persons now registered as required under the Foreign Agents Registration Act, compared with 452 in 1970. How- ever, no one is certain how many such. agents are actually at work. After studying the situation last year, the General Accounting Office found that registrations represent "only the tip of the iceberg" as a gauge of for- eign-lobbying activity. Most agents, en- couraged by lax enforcement of the law, do not comply, officials believe. Need for close watch. The GAO re- port urged Congress to provide closer monitoring of all foreign agents, espe- cially in light of the so-called Abscam cases, in which seven members of Con- gress were convicted of accepting illegal payments from persons they believed were Arab businessmen, but who, in fact, were disguised Federal Bureau of Investigation agents. The expanding use of direct lobbying by foreign governments and industries is beginning to worry many lawmakers. "So much money is available that it's corrupting our governmental system," says Representative Benjamin Rosen- thal (D-N.Y.). "Foreign powers are able to hire very distinguished Americans with fine records to do their bidding- frequently when those interests are con- trary to American interests." DGA Vice President Lloyd Preslar An army of Japanese lobbyists is besieg- ing Washington to fight for open trade. disagrees. "Our Moroccan activity was more purely political than most of what we've done," he says. "Our firm thinks long and hard about what Amer- ican interests are before we take on any client." Adds DGA Chairman Charles E. Goodell, a former Republican senator from New York: "Most nations can't afford large embassy staffs. They are limited in resources and understanding of our legislative process. Our system is very different. Americans who know the nuances of the establishment- can bridge the gulf." Most Americans registered as foreign agents are attached to a relatively small number of large law or public- relations firms in Washington and New York. Such firms often have several for- eign clients at a time. The Washington law office of Arnold & Porter is on file as foreign agent for 12 clients. Foreign representation has become big business, with fees often topping a half-million dollars a year per client. DGA, for example, has been paid a total of 1.8 million dollars by the Moroccan government since 1978. Former Senator Goodell reported 253 meetings, lunches and phone calls he made to State Department, congressional and other officials to promote arms sales to that country. When noise problems threatened to keep the Concorde supersonic jet. out of the U.S., its French manufac- turer, Aerospatiale, turned to DGA for help in winning landing rights. The firm spent thousands of hours in preparing reports and testimony and contacting U.S. officials. For its successful effort, DGA received 1.9 million dollars over five years. ner party got silver spoons as mementos. by lawyers Clifford and Warnke for Approved For Release 2005/11/28: -VONYEWMI pD the Australian Meat & L istocrov-ke For or- poration were the filing of comments with the House Agriculture Commit- tee on meat-import problems and tele- phoning members of the House inter- national-trade subcommittee. Later, when horse and kangaroo meat turned up in some Australian beef, Clifford and Warnke served as a bridge between Australian and U.S. of- ficials. "We were helpful in finding a solution to the problem, and, as a re- sult, a tighter set of rules and regula- tions are in effect," says Clifford. An issue before the Senate last year underscored just how sophisticated in their understanding of American poli- tics some nations have become. In weighing whether to approve Reagan's proposed AWACS sale, senators came under intense pressure not only from the White House but also from skillful Saudi and Israeli advocates. Presenting both sides. "The Israelis put on a high-powered and quite legiti- mate full-court press," recalls Freder- ick Dutton, chief American strategist for the Saudis and a former aide to President Kennedy. "Our stance was designed to demonstrate a contrast- that this was an issue for the U.S. to decide based on its own interests." Using previously effective tech- niques, the American Israel Public Af- fairs Committee, registered agent for the Jewish state, began cranking out mail, enlisting support from other Jew- ish groups and circulating petitions months before the vote. By July, a ma- jority of senators had signed a letter indicating their support of the Jewish position. The Saudi lobby held back until the vote was closer, then went to work. Operating out of a Washington hotel, Prince Bandar bin Sultan of the Saudi U.S. agents helped Australia when kanga- roo meat turned up In a beef shipment. Three laws regulate the> activi- ties of agents for foreign interests who are seeking to influence U.S. policy- The Foreign Agents Registra- tion Act requires lobbyists for for- eign nations to register with`:. the Justice Department and, fits semi- annual. statements listing `clients, activities or services, rendered, money received and expense's in-: curred..Wherr approaching agov ernment official or member. of Congress'in behalf of "=client;' a -. lobbyist Is: required to identify Wm__" forei n government...' tions-Act.prohibits public.ofiidials or their relatives by ` blood, mar-" riage,or adoption" from accepting giftsworth more than 5-140 unless it appears that refusing the giftwvould offend the donor' or otherwise ad ,- yerselyr,affect.the foreign relations 00RPARWO 19POQ1n for Smathers (D-Fla.) and former Repre- sentatives James W: Symington (D-lvlo.) and A. Sidney Herlong (D-Fla.) to help counter American condemnation of that country's racial policies. Last fall, the firm contacted House leaders in an effort to defuse opposition to the U.S. visit of South Africa's Rugby team. One technique foreign interests use to create good will is the offer of free junkets to lawmakers, journalists and others. In January, for instance, Sena- tors John Danforth (R-Mo.) -and John Chafee (R-R.I.) visited Japan as guests of the Japan Institute for Social and Economic Affairs, a registered agent.' Japan is, by far, the biggest spender on lobbying. One out of every 5 regis- tered foreign agents in the U.S. works for the Japanese, a sign of the huge economic ties between the two coun- tries. Over all, the Japanese spent more than 11 million dollars last year to stay abreast of and influence U.S. policies. . William D. Eberle, a former Ameri- can trade representative, has been ad- vising Nissan Motor Corporation, the No. 2 Japanese auto maker, which pro- duces Datsuns, on U.S. trade matters since 1979. In the latest six-month re- porting period, he received $131,000 in fees from the company- The Allen affair. Richard V. Allen, former national-security adviser to Reagan, also once provided consulting services for Nissan. Upon joining the administration, Allen sold his firm, Po- tomac International, to Peter Hanna- ford, a longtime Reagan campaign ad- viser. It was after questions had been raised about his continued contacts with Japanese business interests that Allen resigned from the White House staff in January. Justice officials say they constantly battle to get more foreign agents regis- tered, but claim that, with an enforce- ment staff of only 20, they have a hope- less task. Since 1975,- the -department has filed 15 civil suits to force bashful lobbyists into putting their foreign as- sociations on record. In one well-publi- cized case, Billy Carter, younger broth- er of the former President, registered only after authorities threatened to cite hirrf for accepting some $220,000 in cash and gifts from the Libyan gov- ernment. Carter claimed the money was a loan, not a payment for services. Violations generally are hard to spot. For example, a lawyer hired to repre- sent a foreign client before a federal agency is not required to register or report his activities as long as he makes no attempt to influence beyond the scope of agency proceedings. Yet, fre- quently his work involves lobbying. Director William Casey of the Cen- The^ :Federal Election - Cam , y paign., Act' o ;1976 prohibits any foreign natioral from contributing - --hibits~"any, American frorrr~accept Iting such oonaii?rIs royal family met with a parade of sena- tors whose support was considered winnable. Many were feted at recep- tions and dinners at the Saudi Embas- sy. At one black-tie affair, 12 senators, plus other guests, sipped wine, dined on Mideast cuisine and were given small silver spoons as mementos. Other Saudi officials sought in press interviews to allay U.S. fears about the proposed sale. Some hinted of harsh Saudi reaction if the deal failed. When the Saudis suspended all contract talks with U.S. firms pending the AWACS vote, senators were deluged with calls from worried American businesses. Was it Saudi lobbying or Reagan's appeal that turned the tide? No one knows for sure why so many lawmak- ers switched sides, but, on-October 28, the sale was narrowly approved by the Senate, 52 to 48. Few foreign-lobbying issues are as dramatic as AWACS. More typical are the low-key efforts of foreign clients simply to have their views laid before the American public. The government of South Africa, for instance, pays a $300,000 annual retainer to the law Approved For Release 2005/11/28: CIA-RDpgl-OOgOlRot)D400,1-2a00 -N"j ;< -1 A roved For Re ease 1/28 :CIA-RDP91-00901_R000400120001-3 tral Intelligence Agen as come un- der official scrutiny for his previous o' Among reign Representatives work in behalf of the Indonesiar~gsw-A Whs Who Fa ernment, during which__he_aIle edly - To bbied fora tax-law .chang_ewithout registering as a foreign_ag-ent. Casey b Among those operating under the Foreign Agents Registration Act since 1980 _ as- am sador to Denmark and the Philippines for which he then worked "made a good-faith determination in 1976 that no registration was called for." Among Washington's "fast-growing public-relations firms is Cray and Com- pany, owned by Robert K. Gray, co- chairman of the Reagan Inaugural C..mmmithaa (:r,v rarantly hrnnaht ;n Joseph H. Blatchford, former director of Peace Corps Clark Clifford, former Secretary of Defense Chile; Canadian oil interests; El Salvador; Mexican rail-car makers Australian Meat & Livestock Corpora-. William Colby former director of , Central Intelligence A enc g y Hymel, former aide to House Speaker Marlow Cook, former senator (R-Ky.) British tobacco and other interests; Thomas P. O'Neill (D-Mass.). He also Australian sugar and cattle interests got a new client in February: The gov- William Fulbright, former chairman'of United Arab Emirates; Saudi Arabia ernment of Guatemala, which hired _._ _ ? ... . .. the firm for the purpose of improving (D Ark ' vrafyn noiauui iJ Guatemala's image" in the United (D-Ark.) - States. Charles Goodell, former senator Morocco; French aircraft and form. Hymel's registration statement notes that he accompanied Abdul Raz- zak Mohammed Mulla Hussain, deputy chairman of Kuwait Petroleum Com- pany, at a meeting last October with Representative Rosenthal's Govern- ment Operations Subcommittee.. The Gray firm was paid $10,000 to prepare Hussain for the hearing and to deal with the press. A. Sydney Herlong, former representative (D-Fla.) Linwood Holton, former Republican " governor of Virginia United Arab Emirates; Saudi Arabia; Japan;.Bahamas Ministry of Tourism Robert Leggett, former representative . Somalia Jack McDonald, former representative Japanese motorcycles; Turkey Hymel, Anderson and Gray, accord- Wilbur Mills, former representative British tobacco, food and " ing to the report, critiqued a video- (D-Ark.) cosmetics interests " tape of Hussain presenting his state- ment and anticipated potential questions from members of the House panel. Hussain had been called to tes- tify on the acquisition by Kuwait of Saute Fe International Corporation, a prestigious American oil-drilling and engineering concern. A jaundiced view. Says Rosenthal, whose committee was critical of the purchase: "The Kuwaiti government now owns some of the most highly re- spected engineering skills in the world, and the purchase was orchestrated by a lot of high-powered Washington lobby- ists. Former President Gerald Ford is on the board of directors of Sante Fe International-that helped the deal go through speedily." All this is entirely legal, but Fred Wertheimer, president of Common Cause, the self-styled citizens' lobby, believes that, by pouring so much mon- ey and resources into lobbying, foreign interests are distorting the American political process. Argues Wertheimer: "Too much pressure is being brought to bear in influencing public-policy decisions." El James O'Hara, former representative (D-Mich.) Korean Marine Industry Development Endicott Peabody, former Democratic Haiti; Japanese fisheries governor of. Massachusetts . William P. Rogers, former Secretary of State Sargent Shriver, Jr., former director of Peace Corps and Office of Economic Opportunity, and ambassador to France French nuclear-power and other James Symington, formerrepresenta- South Africa Paul Warnke, former director of Arms Control and Disarmament Agency and Corporation; Algeria; French aviation interests; European shippers Approved For Release 2005/11/28 : CIA-RDP91-00901 R000400120001-3 Approved For Release 2005/11/28 : CIA-RDP91-00901R00040 RADIO TV REPORTS, I NC 4701 WILLARD AVENUE, CHEVY CHASE, MARYLAND 20015 656-4068 PUBLIC AFFAIRS STAFF PROGRAM Face the Nation STATION WDVM-TV CBS Network DATE March 28, 1982 11:30 A.M. SUBJECT Senator Barry Goldwater Washington, D.C. GEORGE HERMAN: Senator Goldwater,. the people of El Salvador are voting today, with the possibility of a victory-by the extreme right. What do you feel should be the United States policy towards whoever wins the election in El Salvador? SENATOR BARRY GOLDWATER: I think we ought to try to get along with them. I think we should do whatever we can in a noncombatant way to help the country. Central America is as im- portant to us, I think, as any part of the world, probably. And I wouldn't want to see us go down there with armed forces if there's a chance of getting the whole thing to work. And I think maybe we can do it. ANNOUNCER:' From CBS News, Washington, a spontaneous and unrehearsed news interview bn Face the Nation with Senator Barry Goldwater of Arizona, Chairman of the. Senate Intelligence Committee. T Senator Goldwater will be questioned by CBS News con- gress.lonal correspondent Phil Jones; by Jack Germond, syndicated columnist for the Baltimore Evening Sun; and by the moderator, CBS News correspondent George Herman. HERMAN: Senator Goldwater, It was your opinion in your first answer that we should get along with whoever wins the elec- tion in El Salvador. But supposing it should turn out to be the extreme right wing,..Ma,jor D'Aubuisson, who says his first action would be to hang President Duarte, a man who's been -- D'Aubuisson has been called a psychopathic butcher. Should we get along with him, or should we put him in some kind-of quarantine? Approved ForRelease 2005/11/28 : CIA-RDP91-00901 R000400120001-3 OFFICES IN: WASHINGTON D.C. ? NEW YORK ? LOS ANGELES ? CHICAGO ? DETROIT ? AND OTHER PRINCIPAL CITIES Approved For Release 2005/11/28 : CIA-RDP91-00901R000400120 ARTICLE APPEARED ON FAGE,_,_ THE WASHINGTON POST PARADE MAGAZINE 28 March 1982 W931 X- r &2% Q. Can you explain why William J Casey, direc- for of the Central Intelligence Agency, did not I place his vast holdings, worth approximately $10 million, in a blind trust when he was appointed to the job? Surely there is a possibility, of Casey's 1 obtaining secret information as CIA chief, which he could use to his financial advantage.--C.L., Chevy Chase, Md. .A. The law does not require the Director-of Cen- tral Intelligence to:place financial holdings in a blind trust, and Wiliam Casey chose not to do so. .Some previous CIA chiefs, however--to avoid crit- icism and possible conflict of interest -voluntarily walked the blind trust road in the past. Approved For Release 2005/11/28 : CIA-RDP91-00901 R000400120001-3 ARTICLE APP Z. RED ON PAGE Approved For Release 200 V ,,_0IfpP91-00901 R flughes points out a military installation: Longer and louder alarms about communist meddling in America's backyard rW he lights dimmed, the projector beamed and the screen filled with blown-tip aerial photographs that conjured up an earlier time of confrontation. Before a packed house of reporters, John Hughes, the photo-intelligence expert who present- ed the evidence in the Cuban missile crisis twenty years ago, took a pointer last week and made the Reagan Administration's case against Nicaragua. Flipping through the grainy photographs, Hughes said the Sandinistas have built 36 new military in- stallations in just two years. He pointed to new airfields, lengthened runways and a dramatic array of Soviet-made tanks, truck- drawn howitzers, helicopters and amphibi- ous ferries. He showed Nicaraguan troops in training and put the total number of men under arms at 70,000=-the biggest and most threatening army in Central America. "Who is helping the Sandinistas do this?" he asked. "The fingerprint we find, in every case ... [belongs to] the Cubans." The carefully orchestrated show-and-tell session was the most, successful element in a ragged propaganda blitz last week. The of- fensive seemed to reflect the Administra- tion's growing frustration over the limits'of its ability to act in Central America. Neither Congress nor the public seems inclined to STAT from candid about the size of their military buildup, nothing in the declassified material showed a direct conduit of arms into El Salvador. "I think most people were ready to believe that the Nicaraguans are building up their army," said o+ie U.S. official, "but that was never the problem." The Administration hoped to make the Nicaragua-Salvador ecnnection with a pa- rade of witnesses from the front-but the first step went disastrously awry. The State Department invited sic reporters to inter- view Orlando Jose Tardencillas Espinosa, 19, a Nicaraguan captured in El Salvador. Tardenci.llas had "conf -sled" earlier that he had been sent to the war zone by the Sandin- istas. But when the tape recorders started rolling, he stunned the reporters--and U.S. officials--by suddenly taking back every- thing he had said. He described himself as a free-lance revolutionary and said he had been tortured and beaten into collaborating with El Salvadorand W.shington. "The day before I came, an officer from the U.S. Em- bassy told me what I should say," he said. "He told me they needed to demonstrate the presence of Cubans in El Salvador. I was given a choice. I could come here and do what I'm doing-or face. certain death." Tardencillas's bizarre: turnabout left the accept Reagan'swarnin4al &rr iskelf S@ -i46Ma'sGI RD 4)901 RM4i@01W0th1a3bind_ For weeks offi- rneddlingintheregion. Thepublic mood has answered. While the photo evidence dem- cials had been hinting that they had top- all but ruled out direct military intervention. onstrated that the Sandinistas had been far secret intelligence data on the Sandinistas' 'fln77?: rani' As a result, the Administration has found itselfwith few alternatives other than sound- ing ever longer and louder alarms. It was hard to say what the alarm bells foretold. Washington seemed to be playing a high-stakes game of psychological warfare designed to keep the Nicaraguans, Cubans and Soviets guessing about Reagan's ulti- mate in tentions. One possibility was that the Administration was hoping to use its evi- The Administration launches a frenetic propaganda campaign that leaves troubling questions unanswered. dence to enlist other Latin American na- tions to help cut the flow of arms to Salva- doran leftists. Looming behind it all was the prospect of a darker playa: a CIA proposal to help paramilitary groups cut the flow of arms from Nicaragua to El Salvador. Therewas no doubt about the earnestness of the Administration's concern, but its me- STAT STAT Approved For Release 2005/11/28 : CIA-RDP91-00901 ARTICLE ?,. FP, `,4YED ON "PAGE_ TIME 22 MIlARC:i 1982 The U.S. bungles its evidence offoreign subversion in El There were briefings and consultations, complete with spy-plane pictures and closed door revela- tions of secret intercepts. It may have been the mostr intense national. security information campaign since President Kennedy went public with graphic docu- mentation of the Cuban missile threat 20 years ago. The purpose of the blitz was to convince skeptics of the correctness of the Administration's approach to the critical problems of El Salvador and its neigh- bors--namely, that the struggles in Cen- tral America are not simply indigenous re- volts but rather are crucial battlegrounds in a broad East-West confrontation. Facing a credibility gap at home and abroad, the Reagan Administration sought to prove that the fire raging in El Salvador is primarily fueled by Soviet- sponsored subversion spread by Cuban surrogates and the Sandinista govern- ment of Nicaragua. In that extreme and simple form, their case is as yet unproved, and indeed-by the very nature of these conflicts---may never be. In a lesser form-that there is significant involve- ment by Cuba and Nicaragua-the case is almost self-evident. The campaign, to say the least, had its problems. In fact, the inability of the Ad- ministration to line up convincing wit- nesses would have seemed farcical were the matter not so serious. First there was the so-called "smoking Sandinista," grandly touted as a captured Nicaraguan commando who had helped lead the insur- rection is El Salvador. But when police let him loose to show the way to one of his pur- ported contacts, he disappeared into San Salvador's Mexican embassy, which said he was only a student and granted him asylum.. Then there were two Nicaraguan air force defectors who were scheduled to bear witness to their country's involve- ment in El Salvador but by week's end were judged "not ready" to face the press. Finally, there was a young Nicaraguan soldier who was produced by the State De-.- partment but then promptly repudiated his previous statements about being trained in Cuba and Ethiopia and having been sent into El Salvador by his govern- ment. The U.S. did have solid, evidence of a major military buildup in Nicaragua, and former high national security officials were persuaded by str 1 Salvador rebels. Nonetheless, the blunders and bad luck over the live witnesses to that subversion greatly undermined the Ad- ministration's plausibility. Presiding over this curious series of public presentations was the prime propo- nent of the Administration's us-vs.-them world view, Secretary of State Alexander Haig. "This situation is global in charac- ter," he told a Senate Appropriations Sub- committee last week. "The problem is worldwide Soviet interventionism that poses an unprecedented challenge to the free world. Anyone attempting to debate the prospects for a successful outcome in El Salva et mena the tnin Hai vador is ministr: Defense that it I stake sc tain ba advisers who were reluc_ant to detract na- tional attention from tt President's eco- nomic program. Convir ced that this bat- tle would be cleanly and quickly won, the Approved For Release 2005/11/28 : CIA-RDP91-00901 R000400120001-3 _ ON FACE, NEW YORK TIES 22 MARCH 1982 Former Chief of C.I.A. Honored by O.S.S. Veterans., The William L. Donovan Award, ;. is John A. McCone, the California in., named for the late major general who dustrialist whose various government. fcttrxied the Office of Strategic Sery- positions included a stint as Director icz..during World War II, is given by of Central Intelligence. The Central .I O.S.S. veterans each year. to those rho Intelligence Agency, which heheaded; _ have d d i ren ere s ngular and distin- was an outgrowth of the wartime guished service W the United States,, O.S.S. though riot necessarily in the intelli. The award will be presented May gepce field. at a dinner in San Francisco, where.: Previas 3vinner3 for example, the 80-year-old Mr. McCon, e makes his have included Lhe late Senator Everett home. To help assure its success, the-: have en of Illinois. the Ar:nnn 17 -,-zr,,. veterans organization has persuaded d G n ent eraldR. Ford and Wrl1iarr i hatchero4Britain, awi J. Casey; the current Director of Cen- gave a hacxground in intelligence. He of the dinner. STAT Approved For Release 2005/11/28 : CIA-RDP91-00901 R000400120001-3 ARTICLE 05 PAGE or Release 200 `1 8 ` I FP91-00901R000~ A Top Spook's Political Appearance The scheduled appearance of Central Intelligence Agency direc- tor William Casey at a $200-a-plate GOP fund-raising dinner next week has caused a stir in Washington circles. "It's outrageous," says one highly placed Administration official, since CIA directors have traditionally taken extra care to avoid partisan politicking, One Reagan hand who certainly knows that is Vice President George Bush. Before confirming his nomination to the top CIA job, Congress got assurances from President Gerald Ford that he would not pick Bush as his running mate in 1976. Approved For Release 2005/11/28 : CIA-RDP91-00901 R000400120001-3 Approved For Release 2005/11/28 : CIA-RDP91-00901 R000400120000-3 l'RTICf1l Zj?:e,E:IALD 2`II , 22 MARCH 1982 , - The Presidency/Hugh Sidey Needed,- Strength and Pat"i ce rom Ronald Reagan's first day on the job, photographs and clandestine re- ports have flowed across his desk every morning, convincing this President that a revolution in the Caribbean has been coaxed and fed by Moscow and Ha- vana. The CIA gave the world a glimpse of that evidence last week. But docu- mentation of a big military buildup in Nicaragua is only one fragment of the in- doctrination the President has received in superpower chess. He has listened to CIA Director William Casey narrate how the Soviet Union has exploited food, technology and credits from the free world; both men were astonished at how important these were to Soviet society. Lips pursed, head shaking in grim amazement, Reagan watched the agency's "horror show" of satellite pictures of Soviet ships and submarines coming down the ways, bow to stern, like compacts rolling off a Detroit production line. Reagan has sat, wondering at the irony of it all, as his briefers have traced how captured American M-16s, their serial numbers clumsily altered, were shipped around the world from Viet Islam to the rebels in El Salvador. The Presi- dent has observed the painstaking accumulation of evidence that Moscow's cli- ents have used poison gas (the deadly "yellow rain") in Southeast Asia and that the Soviets have themselves employed it in Afghanistan-perhaps out of frustra- tion that all their troops and equipment have been unablq to break down a stub- born resistance by the mountain tribes to military occupation. Reagan relished the accounts of how the CIA penetrated the Polish govern:, ment and how informers, once discovered, were spirited out of the country along with their families-but not before they had disclosed Moscow's hand in the martial-law crackdown. Reagan has followed the cabled details of Leonid Brezhnev's tears and grief after the recent death of Mikhail Suslov, the hard-line ideologue of the Politburo. Some of those secret reports tell of instant "personal- ity changes" of high Soviet diplomats when they were informed of Suslov's de-- mise. Those diplomats grew distant, their minds back in Moscow, as they wor- riedly waited for the changes that inevitably follow any unexpected interruption in totalitarian authority. Reagan has been tutored day after day by his experts that the Soviets are in a "historic decline" and a "systemic failure" that renders them, despite their pow- er, more unpredictable and dangerous than ever. From all of this, and much more, he has concluded that we have entered two of the most perilous years of modern times and that in this period it is imperative for the U.S. to stay strong.. This conviction explains why the President seems shrill about Central America and sometimes nearly fanatical in his refusal to cut defense spending. He be- lieves that America's-and his--credibility, both with adversaries and friends, lies in the extra billions. Those dollars instantly translate in Reagan's mind into helicopters and guns, then into confidence and courage, and ultimately into vic- tory for our side. ,, . The danger-and it is a serious danger--is that the President may be a pris- oner of his preconceptions, and that the selectively chosen evidence being shown him could simply reinforce his entrenched ideology in illusory ways. El Salvador and Viet Nam are not alike, in either geography or politics, but restraint and pa- Appro' &W * * t cm KCP9-1u00~#0b#~8O8A20M-3 years ago. ze viet empire is overextended, Reagan's challenge is to assist that "historic decline"-a long journey requiring quiet courage and extraordinary sensitivity.. STAT Approved For Release 2005/11/28 : CIA-RDP91-00901R000400120001-3 7 A TICL3 x? Pte':.`?~ LOS ANGELES TIMES 21 NATCH 1982 ASH1NGTON. 'Tfie ?United Sttites - does not - The 19,17 law establishing tt condcre the assassination of foreign leaders,' ' ly authorize covert operation. President Reagan's press secretary, Larry set urf the C1A, it thought it v Intelligence Agency had been given $19 million to build port onthem. - - which were not denied by the White House, that the divided into two parts-intelligence, w i ch ar. syzes in- President had approved a number of covert operations formation, and operations, which conducts ? spionage designed-to "destabilize!" the Sandinista government of and other covert action. Unlike the analysts, the covert .Nicaraguan, ne published report said that the Central -operators seek to manipulate events, not finer>ly to re- Speakes,.declared several months ago, "and we do not collect and evaluate intelligence itier:?nation. But the ' condone the overt-row of foreign governments by the same law also authorized the CLA to perfcrrn "other U.S. goverpmerL" functions" for the President, and the phrase has been Last - wee'x - Washington was abrvz rrith reports, used as the legal basis for covert op-e:aciors. The CIA is CO-IN'`I.-'y'\l . ',~licly. ?-j -the machinery for approving covert ozrat,ons. F3116: a .War II-has engaged in a number of covert operations rnittee:: Carter's.executive order on intelliar~ once de-- C ourd" the globe. Indeed, if Speaker' statement that the scribed-the duties of the SCC and listed i*smeinbers:. United States does not overthrow other governments -` But when the Reagan executive order was published was to be taken literally, it would be big news, marking ; last year, the SCC had disappeared. Ti e order contained a rnatcirchange in American foreign policy.: :x's _` no mention of the committee or of any succew:ter panel Although have' been some revisions ire tlieiaws A-White House official who declined to be ideoti5ed and ground-rulesgoverning covert operations, the CIA= said.the SCC. had.beenreplaced by rot ore but. three his still' free?trs:cxinduct suck cpsrations if the President National Security`Cauricil com,-nitt_ee3,_t'r_e";enior in approves them: And b; all accounts, the pace-of'covert terdepartrnental o oiler kno vii- as SIGs`."; t me group--.., ;action is increasing tinder the-Reagan'AminisLration deals-.with,. he`: is inreturn fot a U.S pledge not to try to about-the s.+rne' amount time t`le" "studying theimplications of a mur depose Premier-Fidel Castro. Russians would have i` th U .'s, Iau' Soviet threat to place: the United States CIA DIRECTOR William Casey said (lied the Per. h ink 2 rte' 11? .hedui~ d in new nuclear peril in retaliation for in an interview two weeks ago that the for deployment in Europe the end of", .-the planned deployrnent of L!.S. mis Russians.have violated the agreement next ye,r:' Tlie`SovieLh r riot yet cues in Europe. for 20;years But the Pentagon yester perfected ; a fiattrajectc miss>ie Soviet PresiIle on d I3rezhnev day- described as "ridiculousrecent, to Breaking the currep de!- dent' c .: warned in a speech in i,loscow'Tuesday r e 'sorts that the Russians have actually agreement to observe the t ns of the that if the U,S: procsaens to in;stall_572 "established nuclear bases on the SALT2 str,submnarines::carrying of a third country close or I: to the- q It I ^ flat-trajectory%rlussiles':near.-the US forachortnoticesuip attack .fiargo of,Sovlol missiies_tsr-anen :area) if they were placed In Cuba ;'= ? ~.. . iJOBEAT JUFfRA5 DAILY NEWS Approved For Release 2005/11/28 : CIA-RDP91-00901 R000400120001-3 STAT Approved For Release 2005/11/28 : CIA-RDP91-00901R00040 BALTIMORE NEWS--AMERICAN 15 March 1982 "Jr 'here this ~oI'ternoon becau4t I'an concerned briefing for reporters at the-:JState Departrnerit, Havana are providing the arms and ad lice to but hi words aeraprompted by an unusual situ- b ve Nicaragua the largest military force in C'en- atior -lntelIi enc iffcials had beei7 trying Eotell traI'A.*nerica 'And-Nicaragua;'.as,~,,~I, ' I;,recror C onC ress and the publicfor days that there is a `uilliaan J~.Casey.says, is ,fanning the yflarres of threatening buildup of military strength in Nica_, insurrection in El Salvador. ragua,:and that it is-made-ptxisrbleby assistance AdmzraI Inman was concerned about the reed f orzr Cuba and the Siwiet vnson to,inform Americans about what isgoing on on Tlie-reports were?:treated with skepticism, in' . `our -doorste ' to`the south ".irid `what ~t " Congress and elsewhere- and that:was the reason for this coon po? Ynd'' 'for Admiral Irunan'a conce^%and- anger. -The"administration is serving the'best nter-.,. At them urging of the- administration, Intel-Ii- ests"of the country': by, presenting its case with gence 'officials declassified sensitive information these`briefin, . It:is an effort to open Air.-ric, that included reconnaissance photographsand _eyes bD-the fact that the trouble in'Central .\mer- stati"stics relating the'size of Nicaragua's armed ica is much-more than an internal ar ar as._.~ forcer Release secree;inforrnation.of this nature some-havgriislstecl w 6 r. and because I'm angry.' This may seerrr??Iike ani.unusual way, for CIA I)eputy~?Director :Bobby- Ray Inman. to open a is rare; ;but the administration felt The rr.oment had, arrived to tell the truth to a skeptical aublic. Approved For Release 2005/11/28 : CIA-RDP91-009018000400120001-3 ST Approved For Release 2005/11/28 : CIA-RDP91-00901FJ000400120001-3 U.S. NEWS & WORLD REPORT :-.z, 15 MARCH 1982 lashir~~taIn Ir@ CIA Director William Casey sur- prised the WhiteIlouse with his pub-': statement that shipment of Soviet' MiG-23s to Cuba breaches the Ken- nedy-Khrushchev 1962 agreement! barring the Kremlin from sending of-' fensive weapons to the island. Presi-' dential aides had been trying to tip- toe around that delicate issue. The Central Intelligence Agency has found a compelling new reason why it should be exempt from disclosing documents under the Freedom of In- formation Act. CIA officials claim that, too often, they release classified material by mistake. Approved For Release 2005/11/28 : CIA-RDP91-00901R000400120001-3 .15 tttsrch 1902 John Birch: Beware The One-Won tiers Ever since its founding in 1958, thejohn Birch Society has campaigned against big government, high taxes and-above all- communism. It's riot going to slack off just because a conservative is in the White House. President Reagan may be moving in the right direction, says society member Gary Allen, but he's taken "a 5-foot leap across a 9-foot ditch." The society, named for a Baptist mission- ary and American spy who was killed in China in 1945, has widened its focus since the early days. Still headed by 82-year-old founder Robert Welch, it considers com- munism only one arm of a "master conspir- acy" in which socialist American "insiders" are plotting to establish one-world govern- ment. Even theAdministration has its share of insiders, says public-relations director John F. McManus-among them Secretary of State Alexander Haig and CIA director William Casey. Youth Camps: To spread the word, the John Birch Society syndicates daily corn- mentaries to 75 radio stations, publishes a newspaper column and deploys some of its 50,000 members to speak around the coun- try. It has also set up a network of TRIM (Tax Reform Immediately) committees to inform Americans how their congressmen voted on tax bills and claims some credit for helping to defeat several liberal congress- men in the 1980 elections. The society operates a chain of eleven summer camps for teen-agers. Along with sports, the camps offer seminars on topics such as "The United Nations-Get US Out" and "What Is Communism?" Birch officials say that at the end of each session, when counselors ask the youngsters to join the society, 75 percent usually do. Once probably the best-known conserva- tive organization in America, the society now shares the stage with such New Right groups as the Moral Majority. But Birchers believe that they havea deeper coin initment to traditional American values than any newcomers, and that they remain a breed apart. As one member says proudly: "Not just anyone can be a Bircher." _ in Newt Yo k and CHARL S GLASS in Boston, Approved For Release 2005/11/28 : CIA-RDP91-0090.1 R000400120001-3 Approved For Release 2005/11/28: CIA-RDP91-00901R00 ARTICLE, APPEARED 0 PAGE--/.~> i'T W YORK TIMES 15 MARCH 1982 ellin ga olicy. to Public U.S'.intelaigence Data on Central America Has Not Translated. into Support for Plans WASHINGTON, March 14 - For the By that, he said, he meant opposition It two weeks, the Reagan Adrninistra- was primarily coming from organza- tiara has cor:ducted what senior officials, lions and individuals whose main inter- acknowledge has been an intense public est was to prevent further conflict. relations campaign designed to dispel. Missing from this perspective, offi- doubts about its policies in teals said, was an understanding of na- Central America:' The ef- tional security considerations. "We :tort, ;s hick has relied heav- failed to make our case convincingly Aw:alynis ily on the use . of intelli-? even in Congress,' another senior Ad- Until Friday, officials thought they Some members of_Congress, including men, carne away from private irtelli- strong evidence to support its charges Central America and of Nicaraguan aid The public was given a glimpse of the intelligence material when the Admin- ,tra'ticn made public aerial reconnais- n-militariforceinCentral America Then on Friday, the campaign re- ceived a major blow when a young Nicaraguan captured last year while dorsurprased theState Department at a crinrihct 3 a That unexpected 'development has prompted a reappraisal of the public relations offensive among. senior Ad- minis-tration officials who must decide Monday whether to proceed with addi- tional intelligence briefings for Con- gress and the press tentatively sched- uled for later in theweelt. T pressure appears to be great to 90 through with the briefings.. Accord- ing to several senior officials, the initial .decision to conduct the public relations campaign was considered long overdue. "We made a mistake," one senior offi- cial said last week. "We were pressing ahead with a policy before we had con- vinced either Congress or the. public about the nature of the nation's vital in- _terests in Central America. State Department.officials recently 'concluded that mec?t of the dor~ the Administraticlrll~IZt"1~rf policy was generated by what one offi- ;cial.called. "'hurmanitari:an",?concerns,. Even critics of the Administration's policy were persuaded that some exter- nal involvement exists. "i don't think that anyone disputes that there is some foreign involvement in El Salvador" said Senator Paul E. Tso;,,.gs, Derno- crat of Massachussetts. question is how much and how signif ;cant it is." That question was apparently not re;- solved by the Administration's cam- paign. Critics, for example, pointed out, that the photographs showing a major military buildup in Nicar-tgua did not- prove', that Nicaragua wa:; aiding the Salvadoran guerrillas. Senator Christopher J. I odd, Demo- crat of Connecticut, a lea,.ling critic ofi Administration policy, said that "to suggest that Nicaragua is the only source of support for Salv':C:o?ran guer rillas is ridiculous.,,! He aid that the guerrillas received ? subst ti l an a ministration official said. "We decided amounts of arms and amp. unition' from log o back to square one, layout the evi- sources within El Salvador, including dence we have and hope we could build disloyal army troops. the ldnd of broad-based support that has Nicaragua's Amba sad ,r in Wash- been lacking." .i.ngton, Francisco aillcs Navarro, re- The campaign focused on Congress..'sponding to the intelligence made nub. Senior intelligence officials, led by Wil- lic about his country, charroecl in an in- liam J. Casey, the Director of Central terview broadcast by the Ctble News Intelligence, started briefing Congres-! Network today that theirii.tarybuildup sional committees about what the A.7 ministration considers to be Cuban, Soviet and Nicaraguan interference in El Salvador. According to members' of Congress who attended the briefings, the Admin- a ;as forced because the ' Reagan Ad- ministration is threatener. us all the time with the possibility 14 a military intervention." -till other critics argued that the Ad- ministratinn was ove . h .d_]_ r intelligence collected through -elec- i ne problem in El Sal vador is ,rimarily an tropic surveillance of radio traffic in El economic ere," said Senat:3r Clan erne S alvador-and surrounding nations, in Pell, Democrat of Rhode Island, the el uding Nicaragua. ranking minority member,) f n he Sena t e J that have been positioned off the coast of El Salvador and Nicaragua since late last year, this information included de- p - tails of communications between Salvo- sa, senior Administration ,?ticials still doran rebels and command posts in believe in the power of their intelligence Nicaragua, which they said showed that data. "Whenever we can s t down with the Salvadoran insurgency was con-, someone and show them what we've trolled in Nicaragua, Administration of got, we can persuade the-r-1 Cuba and ficials told the committees, according Nicaragua are involved," one official to several members. Similar briefings Pr said. were given to a group of former senior. , What the Administration cannot do Government officials. : , ?,; ..;..; , . ~n ,,. top officials acknowledge, is translate intelligence information about outside `CorivincingIntelligence' interference in Central Arnerica into The Administration was encouraged 'support for theGoverunent'spolicy. by the results. After a briefing a given to-. the House Intelligence Committee, the panel's chairman, Representative Ed- ward P.' Roland, a Massachussetts Democrat . who is considered a bell- wetter of moderate Congressional opin- ion, said that the.use of Nicaraguan sites for command and control of Salva- doran insurgent forces was supported by "convincing intelligence." He added that "Cuban involvement, especially in providing arms, is also evident." Senator Richard G. Lugar, Republi- can of Indiana, said, "'The case of sub- ttSY~tfO day's turnabout by the tficr?r?aguan call: tive, OrlandoJosuTardencillas Es ino STAT STAT Approved For Release 2005/11/28 : CIA-RDP91-00901R00040 014 vD10i!EY PROBLE1S PLAGUING SOVIET, FIGURES INDICATE Debt and-Trade Deficit Are Up, Foreign Reserves Down i U.S. Debates Reaction By HEDRICK SPiUTa ` WASHINGTON, March I3 _ Evi- 'dence is growing that the Soviet Union is having a cash-flow problem -with the currencies used in international trade- This has sharpened debate within the A_dministration's over how vigorously to NEW YORK TIMES ]l+ M RCH 1982 "Two things have been mixed up," Rumania and other East European said one senior Defense Department of- countries. i ficial. "One is the Polish sanctions. The other is a longer-term strategy to insure that the West does not become the source of aid and support for the Soviets to go on spending 13 to 15 percent of gross national. product on defense. I think it's a benefit to the West to elevate the guns-versus-butter argument in the Soviet political hierarchy." More concretely, Fred C. Ikle, Under Secretary of Defense for Policy, urged American banks on Friday not to extend credit to Moscow for grain purchases. '"Requiring them to pay hard cash will work to limit their ability to. maintain the.?military: expansion program they ,haveunderway,"he said. ' If that persists, as expected, most policy makers believe, Moscow will eventually have to permit soale;iberali- zation in Poland and perhaps elsewhere. The problem for the West in applying economic pressures there, American' bankers say, is that the West itself can be hurt economically. Forcing a Polish default on Western loans "is a very bad strategy," says Leif Olsen, chairman of the economic policy committee at Citibank. "It would have repercussions for the West as much as it would for the Soviet. And I'm not at all sure that it heightens the pressure on the' Soviet." These are some of the indications of Moscow's cash-flow problems cited by t'-Another Another camp, centered in the State Government and other experts: ..Department and Treasury Department, An increase in the Soviet Uriion's contends that the Soviet economy is too short-term debt last year to d15 billion large, too nearly self-sufficient and too from $13 billion. accustomed to belt-tightening in times 9A drop in the level of Soviet hard- of stress for the Kremlin to be pressed currency reserves in Western banks e from into con~ons on its vital interests or b$8 last t Sept. 3at0 the and, it end is of r-stim to' s ated, billion mainlines of policy. 58 billion atyear'send - apply economic pressure to try, to force 1 This group contends that for all its ob- I 9Requests to West German and Japa- Moscow. to ease- repression. in Poland ; vious cash-flow problems, Moscow has nese trading companies to r ermit de- $3D !and to slow military spending and over well~over billion in gold reserves and layed repayment of about $1 billion in Western debt of $20 billion. Some offi- cials also recall.that Moscow resisted similar Western pressures in the early postwar period, and also recovered from a considerably worse foreign ex- changeproblem in the mid-1970's. "Hard" generally refers to those cur- rencies that are freely convertible among themselves, such as the dollar or the French franc; "soft"- currencies cialistit report, the SovietUrdon's shojt- - era banks fell $2 billion. Gold Sales and Pleas on Debt: PressureNot Only on Poland they can pull in their horns a lot more if Soviet Union had to-underwrite some- . Theysee the situation in Poland not so they get into a really tight foreign debt ports close to $1 billion for Polish tin- bth~? ports from the hard-currency area, not much as the focus of policy as an oppbr to mention indirect subsidies of Po- tunity to marshal support in Western.. Possible Repercussion In West ,land's trade with other Communist Europe and Japan for an ambitious countries. how- campaign to press the Kremlin not only The two groups generally agree, so especially C~?IV13`d to make concessions in Poland but al ever, that Eastern Europe, Poland, is the economic.Achilles heel for last year, double the 1980deficit:'.'. "The Soviet financial position has de-1 11tl "met economy is in ternhle Under. these pressures, the Kremlin ! teriorated sharply -- but from a very shape," Marshal Goldman, professor of has felt compelled to sell what is esti-' strong base," one State Department of- economics at Wellesley College, corn- mented. "The Soviet casks-flow problem mated to be 300'tons of gold, worth about ficial asserted. "Don't confuse the idea $3.5 billion, over the- last six months.. of their 'scrambling around -because is an external manifestation of internal Soviet trading companies have. also everything has fallen apart'with problems. Their grain problem is not just a theoretical exercise: It costs hard asked Western. and Japanese companies - scrambling around to get all they cancy ? now because they are anticipating an major reason for the trade defi- to postpone collection of about $1 billion f The ma American policyof a credit crunch-"' cits was a bi food im- in short-term debt. "There's a big difference between the; g increase in Soviet Moso7w's problems hav -encouraged difficulties the Soviets have and bring- - ports caused by the third bad fain har-- some Administration policy makersi. lag the- Soviet economy to its knees," vest in a row. These imports increased from about $9 billion in 1950 to 312 billion centered ? in. -the Defense Department added another civilian policy maker. to $14 billion last year, a bit more than and the Central. Intelligence Agency, to "Economies that big don't collapse. The half of that grain and most of the rest believe that tTe 'West now hasun~ Soviet - economy . just shambles on. economic ledexa a to iii~t]uenee_ ov-et They're used to bottlenecks. They don't eatand sugar. g The Polish crisis added a complica- run their economy well in normal times. lion: Western experts Now they'll -just run it less well But estimate that the 9Moscow's purchase of 2.i5 million metric tons of grain from Australia and the United States last month on 90- to 180-day credits instead of the usual cash payment, but then reportedly being turned - down Friday by ?U American banks- when it sought more- 180-day- credits. 9An increase in the commodity trade deficit with hard-currency countries from $2.5 billion in 1980 to between $5.4 billion and $S billion last year. These specialists also calculate that the Soviet trade deficit with the West, widened by huge. food imports and fall- ina wnrld- nit nric!Pa_ Hawed S3_5 billion its own resou Sovfetfarei r des a: ,..; gma Moscow. T h e y reason that, even if Mos- eaweAO 11 it42 ta' 901 R000400120001-3 be able to cope simultaneously with the gro~ritrg credit squeeze on Poland, Approved For Release 2005/11/28 : CIA-RDP91-00901R00040 ARTICLE _E. RFD NEW YORK MTES ON PAGE- _=5( 1 2+IARCFi 1982 The v d en, : ,' tally situated countries was general-? ing world-class ceccera. $ s7 In some dgvelopments last week: out Mr.. Tarde _llas presuznably had "Art off=.k of the- U.S. Embassy:. .been. cotmted .an to support 'alai: told me that they needed to demon .u Haig's claim to "a-rer-:+hei.ming" and strata the Presence of Cubans in: El'::. ;'irrefutable"- evidence of Nlcara-. Salvador. TTtey gave me an- option.. . gwaninterventian in El Saivador.._Mr,_ They said 7'could come here or face. L Eai4 andWLiliam S. Casey the Direc- certain death. All my previous sta3a? tor of Ca:rtral Iatailig ca did better menus about training in Ethiopia and- with ZS p R^aaly leakproof former: Cuba werefaiss,'?,>=i:..::;:; = seaiorofttdadcslle3d in for asiaisi= Then?reexntiag' Oriaado Jose Tar- a wed brieftU_Tney were Impressed.: dendila ..I/saixse a bespectacled- a: calling t en psesentatio "very per---, 29-year-oId.Nicasaguan _ guerriiTer+s ,'sua3lve.'^Mr. Haig also assured hie who had- been cantt>rtr} in E] Salve- it 4' critics that the Administration was dor, astoruished listeners, at - a State; pursuing efforts toward a negotiated Department brfeftk Last week and::-. solution, an option that might gain.-- compounded the ? Administration's luster if right-wingers .win on Mar-17 dif iczitiesinseekingcredenceforits.' 23.Today hewastomeetagain todie- CentralAmerican policy- y .cuss Me sdco's proposals for regional Administration officials said Mr..: peace moves with Foreign Minister Tasdeacillas had told the Salvadoran, Jorge Caste ada and, is separate Army and later the American Em. meetings, Mr. Haig was planning to ? bassy that h& was specially. trained-'.-?,discuss. the Adarinis#ratfan's Carib and ddsgateed to Hi Salvador by the -;.. bean* economic economic initiative with the Nicaraguan Government. s .:: - . = T{s Foreign Ministers of Canada,, V . But as aapalled State Depar ent_ 14 zuela and Colombia.. :'officials loosed on, he Insisted he had ~~;?: In response to demat:cis -that- thel -"obviously been presented for our Adreini stration clarify its Intentions, ' poses of propaganda" andproceeded the Chairman of the Joint Chiefs of to retract the entire acc=t.:Yester= ; Staff,. Gen.; David C. -Jones, told a ; day he was handed over to Nicara-?;.:...,Congressional committee he did not..; guar authorities andleft iorhamr= :..;''se any dri:umstaix~es tamer which Mn Tardencillas was presented t6'.__1 we. -would - intervene - with' United- reporters - as part of Secretary- of States,for .-- I don't thialt that's State Alexander X Haig's effort-to n y,? aad_ L don't -think that 1 gtsaeraGsstrocgerst-pporttortheA& wcWdbetherigbrccurseofacdon.": ministration approach, which he said:: .~ -.The mesa gents'-Radio Veecereraas. j ."involves. -, muttilatcralism;r? that. called forpreparaticns for a general.i avoids the danger-of big b?,cotheris:m- r uprising timed to disrupt the March: i fromtheCalcssusoftheNorth;"., Za28::votf^.g ..Guerrillas -temporarily, - 'It was a tall orderis Central Amer - >, garsalyzed. San Vicente. and San. Mt-- lea where r=_Corts nays Ins. guel FrOvincial. capitals -ia : central tellroacc coyest opeia~ta y-:.and northeastern El _ Salvador. _and:i stirred- Memorfes: o . e not-so~'is=-~ killed 17 soldiers In an ambush nearp 0, to t Lit- U nf~ tterr en"is`odes Cbalataiaago in the the north.. .eluded occz. rib ? Unite d Scat ?:1 :Maifaes (l~liearageta, moat recentl from 1929 to um), a. Central.-Intell.1-el te? coup t R?t)_and acerbic Uui2ed'.4 ? State~ailitargfatxrbentiQnuTaziaf a eleedioaa only =; two weeks away, turmoil in the re--j gicra's small and weak'rut st ratesd .- Approved For Release 2005/11/28 : CIA-RDP91-00901 R000400120001-3 Approved For Release 2005/11/28 : CIA-RDP91-00901 R000400120001-3 National Eroadcasting Company, Inc. All Ri PLEASE CREDIT ANY QUOTES OR EXCERPTS FR AND TELEVISION PROGRAM TO "NBC's MEET T M E E T T H E P R E S S, 'Produced by Betty Cole Dukert LiveA7ashington, D. C. Sunday, March 14, 1982 REP. MICHAEL D. BARNES (D., Md.) Chairman, Foreign Affairs Subcommittee on Inter-American Affairs REP. ROBERT K. DORNAN (R. Calif.) Member, Foreign Affairs Subcommittee on Inter-American Affairs Bill Monroe - NBC News Ken Bode - NBC News Barry Schweid - Associated Press Marvin Kalb - NBC News This is a rush transcript pro- vided for the information and convenience of the press. Accu- racy is not guaranteed. In case of doubt, please check with Approved For Release 200p,1g/1281ApQjffN -00901 R000400120001-3 STAT Approved For Release 2005/11/28 : CIA-RDP91-00901R000400 =`=:ZARED THE WASHINGTON POST UI PLC. L1-` 13 March 1982 Senate Conducts its O n Probe Of. L ea tirt.Unrest: ByPPatrick E. Tyler. Wa:bmgton Post 9art writer The Senate Intelligence Cominit- tee ' is conductin;; an independent review of, a number. of- intelligence .matters relating to Central America,- and the committee's vice chairman,. Sen. Daniei+=Patrick Moynihan (D -N.Y.), has-:endorse&a' proposal to' issue an unusual report on the region to the Senate. The. comprehensive: review was first requested on March 4 by'Sen Patrick J.' Leahy (D-Vt.) 'to deter- mine-whether intelligence informa- tion reaching.. policymakers in ; the Reagan administration is adequate. and whether it proves administration iissertiona:of Soviet and Cuban' in.. .tiolvement i the region. The review also would provide- senators. better information ' about- U.S. covert- opei al-ions in -Central; America; =Leaky said. The committee staff began a full,; kale intelligence' review, ? last' week -and on Monday .-the committee members -will -discuss whether to, re- port to the Senate and to the publics Monday's;-closed session._.will : re-'. sume a detailed examination `of -iii' telligence=that ;-the administration maintains: shows- an alarming mili-' tary buildr in Nicaragua and a Ni- caraguan-.supported arms supply line to the guerrillas in El Salvador. CIA Director William J. Casey, who con -': ducted a '.1nitial three-hour briefinz Approved Feb. 25, is scheduled to return Mon- day. Following Casey's appearance, committee chairman Barry Goldwa- ter (R-Ariz) issued a press release in which he, said, "The briefing left no doubt- that there is active involve- ment by Sandinista government of- ficials in support of the Salvadoran guerrilla movement."- -_' Leahy said yesterday that Gold- water- expressed ' concern that the oversight committee not get involved in debating the administration's for- eign policies in Central America. But; Leahy said, Goldwater ex- pressed no opposition. to compiling an objective and factual record of the intelligence data that could be, supported by all members - of the :.committee..... t n, Another official said ' there 'was .some concern among committee Re- publicans that a full-scale intelli- gence'- ;review of Central America .could politicize the committee, which traditionally . has: avoided partisan politics in order to have a greater impact on executive - branch intelli- gence operations. >,__ Goldwater was in New -York and could not- be :reached for comment.,. "It may well be that such a report' would be written-in five parts, with volumes. one, two and three made public and volumes-four and five classified; but that would also be a major help," said Leahy: "Then, whatever debate there .,was: on. the policy down there- could be stated with a certain touchstone, something the senators know they can talk about in public." Moynihan, the. committee's vice chairman and ranking "Democrat, said Leahy's ; letter - to-- Goldwater "was sent. with my knowledge and concurrei ce,'"''- adding that he thought 'the report was 'something the committee should do." Rarely in its history has the com- mittee issued a report-to 'the Senate .on intelligence matters....The last major-report was issued during .the 1978' debate .on the - Pan,una Canal- T. - _ . . Treaties.:', The 'Reagan' a dmirristr-ation ,'this For Releasee ka-f/!- i-P [3Fa '1"-bb?01 R(l>')#bM200191 etiant to have us al public displays of irieth,gence data to buttress its case that Nicaragua is serving as a command and control base for the guerrilla insurgency in .El Salvador. .- '- ' . - ,a. Also this week, The Washington -Post reported that Pr' sident Meagan { had' authorized covert - ooeaations against Nicaragua with a-- CIA- supported paramilitary. T force -. of Latin Americans,' who are to operate out of commando camps ' .spread along the Nicaraguan-Honduran border: The White' House has. officially declined to comment about -le co-+, vert operations, but senior 'gdmin istration officials. have confir zed to the three major television networks ,the presidential autherizatiorrfor the paramilitary force- CBS News quoted sources saying that the- CIA would-use no IS.. cit- izens to direct the paramilitary force in the field.. rte`; ,~.. i. ABC News reported that the corn- 'mando force would- comprise' former! members' of elite U.S. military units .and would engage in highly 'sensitive intelligence collection and demoli- tion work. NBC News said it had aut iorita-, tive confirmation of the parareilitary 'force and quoted one `rita:blouse official as saying the preside.nt was not especially upset about news 1 'leaks on'the covert operations because the reports convey- the pres- ident's determination to counter what he considers ag, cession in Cen- tral America. The Reagan' adry.inistration"' this week briefed a-number of Democrat-l is leaders and officials of former ad ministrations on the classified-intel ligence relating to Nicaraguau, activ- ities. Leahy- said the -administrationap- peared to be lining up "pub C rela-1 tions" testimonials, trom these offi- cials.: "it may be. a nice, courteous thing to 'do, but insofar as we [the Senate] are. the- one- who -are- going to vote on these :matters--not- the former-- government 'officials 'it informedY-Leahy said Approved For Release ,0 1 '12 -~C - DM1 r PQ,1R000?00120001-3 13 March 1982 ice;; F N _ _ rt i _ -.^ -r?i ' _ _ - _ _ 3 i r ci r r }; 4 } } i- .. . S;rIi'.;.t GROUP OF KEY DEMOCRATS ON _ArL t.!:.. ..L A Oi?i;_:iIi THEY Hi-iVi_ BEEN TOLD LITTLE r. ~t MO;i-iIMG ABOUT Piir t}s_=- __iii -. T . ? t, :? d L F : 3 E M -10 DO it, ;- ;-! T N } _ ii i i R _. ;;-i_ R COMPLAINTS FOCUS ON WHET THEY ._E, A F' _;EF?".`.. O FFeiy` if__Fii_., D F3 ; i?: BEING SUPPLIED TO THE . t G ! } { - i i i I's? r W E L L AS H LACK OF ;- i -vii , D ?,!? ii F r i Ni:w ON THE T.t ^ N I S IRRi _iiF>i ;= f LCIr _r C c N T H I S CR i i i;-RL 0010& ; ii;- i ri F 4 i i : x OG i . . . . - ' . - - - T R H E C H i HF 4- TO LIGHT IN i.-'. SERIES ;E i i i ; r ri ..n ; x; '`' I 'r; '-. ; Cl 'r "r _ H r r n It TO ; e 'r. r E'r. ; V' N ANY T' i = 1-=i i-i F_ C -r OF r ft 4 - ; ; ; ; n ; i-ir- -i :;e- - - _--i;r.C4.. i;V:. !ii MOUNTING , PROILEmS IN r . t }-i i C } [ C T H : - t SE4 - 1. i . 4 .4 - ) i . ate} R ^ A- 4-SaSIM= "THERE -R _"E.. NO _:rt:;EFINI rr_-; Am RmERicull SEN. On r.;-:: R MEMBER OF THE :.Ei-Jc : E RRME{i SERVICES RMii P POTENTIAL r. UEr!iiCi:i.TiC P_ OEN:!}?iL c N010 TE IN ,,i?9 Li-{ -pin $a 't: KIND }i;- i -T; D_ Nr.:i UI art FOR CONGRESS EXISTS IN TO }s_: - I N L R}-tTIO-- 1 AT BOTTOM ;r:;- Ri- trB ALL PEOPLE i}_ C}}i-i'i-'n; r4- ;iti- EVONi }-:iri-tii' HRRTIS V } i- MOT HIS SHARP RHETORIC! HERE ECHOED BY RN@Tqi;: 'r M . . ; r _ rHOice- ..! i .:I.;_E-n I r i - i OF D _.-rwRRr: St-`..r._;'r:S HERE T O i Ct1T TNt "i'...ra IRS C:.1:.irF} tEP OF THE CI.M ERIFRV .:EN .-. E_: ::eL! E ;:=-.;-;; ;i-- ;i;f:;4 H G.-iii- OF 4 "I-tiiir- , NEWS EaHJ 'ts ,_ MEN REPORTZOLY Ci= i i } , ;-. } E MEGAN'S f-i L ' ? . - _ ._ .: Fis .. } f . ' . N =. TO S ! ` . R R E ANY 'r: R i-.:. O .. 0, JHE S I'?'.CR=FiStM1_L5 VOLR IL . S 1 i .i^; OV i m LRTI r'; ;E}f i } r iii }iti THE __ivn ..N }! _ Lt_=..'.I...-. COMMITTEE! ON WHICH BIDEM SERVES. MEN S; i6EE_w ; ED THAT THE F :DMI : I S iRRTI N COULD END UP PfiYI?: = 11%- PRICE FOR ITS LEEK OF CRUD . HIS REMARKS WERE } i.:NFIRwE0 BY i; , = PRESS SECRET~~RYI PETER 1f Ne^ rt^ C:9L POINT FO THE - r!:_ -h:r _ I}^ i.i'[ ERSE IS P RESOLUTION !Ira R._i Iic, D ,,.IS ?.~t ._`.}I: i r 'r,.'i SEN. CHRISTOPHER ;iODDi OF ;-ONMEr::.. ii i e }-: M=1 I'~ _ THE L !'.! =.....! .'. -!'! =._ i' is '- Li' C* LLEt"ii FOR THE UNITED _ :: ...._ TO F N- _ 4,.-.._._ i;CrCON -~is;;::-;; i-;r.G;;T:ri L:.' ... FOR 'n Cr r__-FI-` I _` _e-_r-.-R OR: } ; ' r Y'}s;_;i l i _ , STROMCLY i:;rr;_'S_0 O _ty^'r.';-;:?;n.7 OF SRT &LEXPNii_r =/k}ip txvecl r RUNS fl# 5/'N4i~28^ C1 DP9=4ib0WT 64W4 2QOt%1 ' =y r? . Fi iii ; - tR }-i E R ;-t }?; N i i R ii{ s. S } i ; r i} E }? W 'i?i L 1M THE , it }t: } _: E E: Approved For Release 2005/11/28 : CIA-RDP91-00901R000400 20001-3 JVRT_YG- '`' A_--:?EARED WASIIINGTOil CITY PAPER (D.C.) 12-25 March 1982 g y Dan E. Moldea IN THE FEBRUARY 6,-1982, edition of Thee Nation, Bertram Gross;a professor of urban affairs at Hunter College, published a story entitled, "Some -Anti-Crime Propo- sals for Progressives." The articl - ap- pealed to the left to steal some of the right's . thunder by - recognizing the serious problem ofcrime in America and to offer innovative methods for its control But, like the Reagan Adr-ministra- tion, Gross appears to be concerned only about street crime and, like most liberals, is not at all troubled by. the: more serious problem of organized crime-which Gross implied was something less than organized Considering this attitude; shared by both the light and the left:, it is n- no wonder that the underworld has, an uncanny ability,: to thrive under either conservative or liberal govern- menns.. Conservatives-as we are see- ing now through Reagan's "New Federalism" policies--decentralize power, making it easier for organized; criminals to buy and sell state and local officials within tip dictions. Meantime, liberals con tine to be inflexible in their defense: of personal privacy, and balk at the suggestion of electronic surveil- lance-which, unfortunately, is the most effective means for gathering crucial' intelligence on organized .crime activities. - Bottomlined, because of the general unpopularity of the organized crime issue among most politicians--the mob can and does support right-wing causes and 'civil liberties at the same time. Organized crime continues to be- Ameri ca's fastest-growing business, and thus far during the Reagan Ad- ministration, its opportunities ' for future growth have been enhanced. According to a :report prepared by the General Accounting Office last December,' -"Organized ` crime. -is flourishing...(It) is a billion -dollar business which affects- the lives of millions of individuals and poses a serious problem for law enforcement . agencies.. The effects of organized- crime on society are pervasive." Yet, in the President's budget revi- sions last September, he imposed a one-third cutback of the FBI's in- new uridereove operations will ' be authorized" in fiscal 1982 against organized crime or white-collar - crime All of this came in the wake of a hiring freeze and -dramatic staff reductions withn the FBI. Further,. the administration has severely curtailed the investigative I and enforcement abilities of the Securities and Exchange Commis- sion, the . Internal Revenue Service, and --the Justice Department' Strike Forces Against Organs 'a, L And, on Nov- 12, the mini- stry tion officially be- gan dismantling." the Bureau co and Firearms of the Treasury De- partment-which vestigations of gambling,` prostitu- has been ex- ' tion, arson-form-profit,' gangland tremely eeffec- Relea 2_6 000fbbi brJ 3_ mg to an vsis prepared by ~ war against 'Morton of The Washington Post. In. i organized STAT Approved For Release 2005/11/28: CIA-RDP91-00901R000 THE BALTIMORE EVENING SUN 12 March 1982 Con vi i n photos make case za aI st . Nicaragua By Cord Meyer WASHINGTON',' THE REAGAN ADMINISTRATION ha's' irrefutable proof that the Sandinista re'-gime is lying when it denies that Nicara. guan territory is being used, with Cuoae _L hp, to funnel large amounts of arms and- trained guerrilla manpower into the Sal-f vadoran insurgency. - ; But in the face of widespread public, skepticism both here and abroad, the dd- 'ministration delayed" until this week -in', revealing the aerial photography that shows the extant of the internal Nicaia ,. guan military builduo. 7 "he Reagan tearn?: ,is still ;wrestling with the dilemma of hoia: to disclose the equally hard evidence'of.7 extensive Sandinista support to the Salvo='- doran guerrillas, without blowing intelli- gence sources and methods. The recent inadvertent use by Sect;!-?' tary of State Haig of a phony photograph; to prove the Sandinistas guilty of atroci- ties made it appear that the adrninistra tion was grasping at straws to prove its' .case. But, in fact, long before this week's public showing of the- photography, the` State Department had been extraordi-, narily successful in using this evidence, behind the scenes to make true believers of even the most hardened skeptics in for- reason that none of the advanced sateillt? eign countries. photography was included in this week'3 Last year, Haig was quick to recogniz public briefing. the critical importance of the European Since it is less r:ccurate, the photogra- and Latin American social democratic' p`uy from high-flyig U-2 planes does cot par ties in forming opinion toward events; have to be withl el 7i from Soviet scrutiny. in Central America. Since these Parties- Its release to the A erican pubLc v: as had initially celebrated the Sandinista long delayed because of State Depart' overthrow of Sornoza as a democratic lib- meat concern that its publication might eration, they were reluctant to believe be taken as an admission that the U.S. has that hard-line Marxists had taken over, engaged in unauthorized flights oyes and Haig assigned his brightest aides and. " Ni-aragua. With his credibility now.on best ambassadors to changing minds. In a the line, President Reagan finally monad series of secret 'briefings over many months, what most ' impressed sccial,?sts dike Felipe Gonzalez of Spain and Caries. Andres Perez of Venezuela was the` `American overhead photography, somaef: which was finally shown the American. public this week. The skeptical socialists' could see with their own eyes how Nica'- lab a was being steadily transformed= into a menacing arsenal. The Russian and Cuban derivhtion !the armament was so clear in the photog- raphy that Sandinista denials of dean-. dency on Soviet arms lost all credibility; Aerial photographs showing burned o& ,Miskdto indian villages corroborated. To t1 e question of why such convinci ig evidencE has been secretly shown to for' eigners but withheld so long from theme American public, Reagan officials reply, that in private briefings photographs c b. be shown and then retrieved, while onto published in the press they become avaii- able to everybody, including the Soviets.. The guardians of the most advancezY 'American satellite technology rem' Porting, the Saiva(:oran insurgents with convinced that the U.S. still has a coni4 Cuban help. manding lead in the precision of its high- With this bii irtisan congressional f resolution photography. To expose to - finding clearly on the record after an :- tiei es partial review of all the evidence, there. s m-Russians the.fuli extent of that advantag by allowing them to study actual pho d- plenty of room for debate among Amen - ~ graphs would, it is feared, give them in' "cars as to what to do about Nicaraguan', valuable help in refining their decepttor intervention bud no reasonable doubt that' and camouflage techniques. It is for the this intervention is a massive_~ and cont a- uing reality. to break this impasse and to order re- lease of the U-2 phi) tob aphs. As the administration has clearly irrz plied in its accusations that the logistical flow and battle?iel f strategy, in El Salva- dor are being controlled from sites in Nicaragua, the arcane and super-secret National Security Agency _ must have some access,to Sandinista lines of com- munication. This irrefutable proof of San- dinista command and control has be,] closely held for obvious reasons, but CIA Director William Casey has presented it in detail recently to the House and Send intelligence committees. ( , These two bipartisan committees, with their specially-cleared staffs and full'ac- ces3 to all intelligence information, cone close to being an impartial court of last resort on intelligence matters. However the American and ,' oreign media gave lit- tle coverage last week to the significance- of the fact that the Lhairmen of both corn mittees reported that there was "con- vincing" evidence that the Sandinista government is training, arming and sup- Approved For Release 2005/11/28 : CIA-RDP91-00901 R000400120001-3 Approved For Release 2005/11/28 : CIA-RDP91-00901 R000400120001-3 ?i ='I A: cry By James McCartney WVASHINGTON A top-secret Rea- gan administration. briefing on Ei Salvador providedhard evidence of a gun-running operation from. Nicara- gua to Salvadoran guerrillas, accord- in- to a participant. But it `failed to establish direct Cuban or Soviet involvement in the operation, he said yesterday. The participant; a former high- level government official who asked not to be identified, said-the evi- dence indicated a "fairly sophisticat- ed, - relatively well-financed.. and- supplied" system with: advanced corn munications facilities and an i rn nressive organizational structure. PHIT_,AD 01PHIA IN UIREER 12 MAR CH 1982 The former official said the admin ! was to have voted on a r sot ution to' istration's' presentation did not seek' nullify President Reaga?.'s declara- to show the origin of arms that have' , lion that the Salvadoran f w ernmentl arrived-in Nicaragua. Presumably,; "has taken explicit act on to end he said, they could be coming from; human-rights abuses." That declara- Cuba or frorri some other communist country, but no attempt was made in the briefing to document arrival routes. But after the arms reached Nicara- gua, he said, the administration briefing showed they' were being redirected into El Salvador largely on the ground, most of them through Honduras but some through Guate- mala. According to the administration, a small portion is going by sea, he said, almost none by air. He described lion, made Jan:- 28, was necessary,! under a law passed last bear, before) any military aid could be given to El Salvador. But Rep. Daniel A. Mitt (D., Fla.) obtained agreement to f ~~stpone ac- tion until after the )Marc) 28 election' in El Salvador, arguing that action] now could touch off increased vio- lence in the Central Amc r ican coun- try The administration is Asking S165 million in the next fist ii year for economic and military a ,sistance to lie JQtLL 11 A.JU11 as the Salvadoran junta. tion's evidence that arms were being Ight enough to carry. He said the l, shipped from Nicaragua to El Salvia- evidence presented at the briefing, Sen. John Glenn (D., 0 ciul, char(; dor to be well-documented and "con--I suggested that it would be extremely that our Glenn poly, , is c a dead difficult, because of rough terrain, to] ing viButlie: end," announced. yesterc Eythat hip But he said there was no evidence' cut off the flow. was co-sponsoring . a re lotion call in the briefing of direct Cuban in- He said that as nearly as he co sE uld ing for the United State. to enc al- volvement. "The Cuban tie," he said, tell, the administration was unable to nrrniertn arrnrata r-timsitPS of the age unconditional negoti ations for a ... at all waspresented of a Soviet con. volume of the arms involved but nection, he added: could document that arms were flow The Associated Press cc n for certain, be said, whether Nicara- . He would no[ discus, n1EeuEgencc-i guans or Cubans are. running the techniques that were used, but he` operation only that' Salvadorans' said; they were familiar to anyone probably are getting substantial out-, who had worked at high levels inside side help-: the government.:. The former official was one of 26 -He said the administration's case is members of a group, including prom- "not fundamentally built on people" inent officials of past Republican and -. meaning intelligence agents - or .Democratic -.administrations, who on photography, although .there are were- invited .Wednesday.toview } some. photographs showing "camps evidence of Nicaragua's role in sup- and things like that plying Salvadoran insurgents. Critics of-the administration, such The group was briefed by Secretary as, Rep. Clarence Long (D., Md.), of State Alexander M.. Haig -Jr. and argue that the guerrilla movement is, CIA director William J. Casey in what largely'home-grow t, a result of.cen seemed an-obvious effort to bolster turies of economic oppression. the credibility of administration The administration argues that the contentions that Nicaragua and movement has been inspired largely. Cuba, with Soviet encouragement by forces in Cuba, supported by the and support, are. supplying the guer- Soviet Union. Haig has said the fight rillas, against the Salvadoran guerrillas is Haig said last week that the admin- - part of a-global struggle against istration-- has. "overwhelming and communism: _ irrefutable" evidence of Nicaraguan Critics have sought to cut off mili- and Cuban roles, but he has declined tary aid to the Salvadoran govern- to make.the evidence public, saying ment, but yesterday a House subcom that to do so would compromise inte'l-i mittee postponed action on the first Ni gr r}~1 challenge to a resi- ligencesourc co ~ e~i e'a~ atdddl A 5 e H ~ftl6stE} ~zf :a~agua that it. is sii-;ifng arms to the Salva- for continued military aid doranguerrillas =-- ~? es>;>. *,koreign..Affaiss subcommittee STAT STAT 0 II March 1982 STAT NOTE FOR: STAT FROM: SUBJECT: STAT STAT CerTSwARff? 84fAF W V 2005/11/28: CIA-RDP9~1-009 18 February 1982 DCI Interview with Joe Fromm, U.S. News and World Report Attached is the 18 February transcript of the DCI's interview with Joe Fromm. 'This. copy has the Director's corrections; the original was returned to Joe Fromm for final publication. Please call if you have any questions. Attachment cc: C/PAD/OEXA w/att./~ OEXA Registry w/att. DD/OEXA file cy w/att. Approved For Release 20.05/11/28 CIA-RDP91-00901 R0Q04001'20001-.3 fit. ~ ..T; ,App~o ,gbFor Release 28r/11IA/ -`1 -00901R0004001 011 ~: 11,11 11 March 1982 By John M. Goshko ? Haig Defense Se.retaay',Caspar NV. Weinberger and some other. sen- ior administration officials refused to comment on a- report yesterday in TheWashington Post that President Reagan has approved a $19 million program to destabilize the revolu- tionary Sandinista-dominated gov- ernment in Nicaragua. Instead, they took the position, described by Haig. as "consistent and longstanding.pol-. icy," that the government does not comment. publicly on covert . activ- ities, but they added that their si- lence should not be interpreted as confirmation of the report. However, White House counselor Edwin Meese III told a journalism- seminar here last night that The` Post report placed the administra- tion in a "totally untenable position." Meese said, "Here is a situation. in which the security of the country is seriously affected, whether the arti- cle be true or false. If it is true, then vet' hupart t cep rt; vital to ourf i : r i? ant ,,t, ,.tact to the silt. cess of any such rrissiun have been.; revealed. If it is false, then you, have given an adversary a great.opportu-1 nity for propaganda'-. 'Haig' said the administration has --rot>rejected Mexican President Jose Lopez Portillo's offer to act as a me- diator in trying to end the Salvador- { ari civil war and ease the tensions between the United States and Nic- asagua. The secretary said he. would continue discussing the idea with Mexican Foreign Minister JorgeCas-, taneda in New York this weekend; in another hint that Washington wants to: keep alive the possibility of even- tual negotiations, Haig expressed; hope that after the March 28 elec-r t ions for a. constituent assembly ? Secretary of Statee Alexander M. flaig. Jr., speaking against a back ground of - mounting. controversy about U.S. policy in Central Amer- ica, told Congress yesterday.thai; cut- ting off military aid would be "a fatal blow" to the government of El Sal- vador in its struggle against leftist guerrillas. "I think it would be 'a catastro- phe;' Hai;; said. "In practical. terms, the guerrillas are not about to over- whelm the country. But `American arms are a crucial factor, even more in political arid--psychological terms than in actual material terms." The secretary's testimony before a Senate subcommittee came on a day that saw a rapid-fire series of devel- opments continue to push the, de- bate'over El Salvador and Nicaragu& to the forefront of congressional and: executive branch attention. Among, eTwenty-six prominent .officials of past Republican and Democratic administrations-emerged from a clas- sified intelligence- briefing at the State Department. to .say- they hady been given convincing-evidence: that 'the Salvadoran.- ;uerrillas' are being aided, supplied and guided- from out side. by Cuba and Nicaragua. Hose ever; the former officials also; agreed that the evidence- is so' "sensitive" .that it cannot be made public with- out causing serious damage to U.S.- ability to collect' intelligence irr the- future. Approved induced. to lay down their arms an For Refeatist2005fht/281 flAf the Salvadoran people.''. ;_ iscite that would express the will 4',Weinberger an, .Jones, chairman of of Staff, reiterated, fore the House For mittee, that the ar 'nd plans or intenti troops to Ei Salva its support _- ciuilian government there to in- creased military and economic: aid. - ELj~The administration, obviously -concerned that its p,iliry toward Central America coulc be derailed by persistent questions about wheth- er the United States is tending for a new Vietnam-type involvement, this week mounted a campaign to swing ?public opinion behind is approach. ri'lie effort began `I aesday when enigr intelligence officials gave re- porters a detailed briefing, including the, display of blowwup: of aerial re- connaissance photogra:ihs, designed to show that Nicaragua is building a sizable military establishment with Cu',:,; Soviet het second c +,.i;. y est tday the brief- ,,ing,aimned at enlisting he support of former officials and w!th Haig's ap-_ rpearance before a Senate Appropri ations subcommittee that oversees foreign aid. . Vncler heavy que:itioning from Republican and Den ocratic men- bers, Hain reiterated his past charge that the .Salvadoran ,uerrillas are "largely controlled" from the Nicaraguan capital of Managua. He said the principal flaw in the Max- peace initiative, which he as- . serted is basically the same plan pro- .posed by the United States and re- jected by Nicaragua lost year, is the. lack of a requirement that Nicaragua' "commit itself to-cease and desist" in "We are exploring every; feasible means possible to.. bring- about -a -00901'F Q49Q6118Q6&14 said. "But this' is a '.two-way street, and it requires. reciprocal ' obligations by those - who`. STAT STAT U!_ Approved For Release 2005/11/28 : CIA-RDP91-00901R0004 Whatever one's opinions are about the United States' role in El Salvador, they al- most inevitably must rest on the answer to a single question: Is the dissidence in El Saiva. dor a true indigenous rebellion with mass popular support, or is it directed and control- led by foreign - Nicaraguan, Cuban and Soviet - elements? In the absence of concrete evidence in the public domain, the answer to this question tends to split on political grounds. Those con- doning the administration line accept the administration statement that the foreign ele- ments are in control. Those opposing the line reject the statement and demand "proof." Secretary of State Alexander Haig has now stated "the operations of the guerrilla forces inside El Salvador are controlled from external command," the evidence for this is "overwhelming and irrefutable." CIA Direc- tor WW Casey also briefed the Senate InteIlige enceommittee, leaving no doubt there was active involvement by Nicaraguan officials, including the use of Nicaraguan territory to move arms, munitions and per- sonnel, with guerrilla HQ elements in Nicaragua. . Haig would give no further details in pub- 11c, stating it could jeopardize U.S. intelli- gence sources. This is understandable, because the sources are unquestionably CO- MINT - communications intelligence and while the situation Is hardly analagous to the wartime security surrounding our ability to read the Japanese Purple code (Haig would not even have hinted so broadly were it so), the United States still does not wish to con- firm publicly that it makes use of COMI IT. There are;- actually, two. forms = traffic analysis and cryptanalysis. Even if codes cannot be read, the nature of the traffic gives massive information. Even Unbroken codes can be identified. Message headings include the originating command, and the recipients. HOUSTON POST 11 March 1982 These indicators are not difficult to puzzle out. The originator's location can be pinpoint- ed by direction-finding - DFing - and in short order chains of command can be work- ed out, with their locations and relationships. It is no problem, for example, to trace a mes- sage originating in Havana, relayed by a Nicaraguan station to an element in El Salvador. Code-breaking - cryptanalysis - is touch- ier. The major powers use machine-generat- ed codes that can't be broken, but such in- stallations are only found in permanent diplomatic compounds and can't he used by the military in the field. Portable cipher ma- chines today are extremely sophisticated - but not unbreakable and, while many can be read, the United States is not about to con- fi which ones. Britain's ability to read the German Enig- ma machine codes in World War 11 (thanks to brilliant work by pre-war Polish cryp- tanalysts) was a major help in winning the war. The British refused to declassify that triumph until 1974. Hundreds of Enigma ma- chines had gone to dozens of smaller coun- tries, which, to the delight of Britain and the United States, happily continued to use them for decades. All manner of intelligence can be milked from COMINT. The Cuban command struc- ture in Nicaragua - its ciphers, networks, traffic (and even the "fists" of specific opera- tors) might, for example, be paralleled else- where - say in the traffic linking the Cubans in Angola and the SWAPO guerrillas striking at Namibia, an exa< t p aralllel to what is hap- pening in El Sa:vadur. Access to CC :1L' T, or educed and distrib- uted daily by the National Security Agency, requires a special elerrance - not superior to, but quite disti- ct from, a Top Secret clearance. COI vT goes to senior officials in the White House, th, Pentagon. the State De- partment and the CLA. it also goes to ana- lysts who require such information in their duties. It was C011--,\T hat produced the Libyan hit team furor. It is COMI T that has con- winced the administration El Salvador is the target of a Soviet r,duced and Cuban and - Nicaraguan-supported attack, disguised as a popular rebellion. If domestic pressure mounts. the adminis- tration will almost nque-tionabiy rely more heavily on COMET to support .heir stand - congressional foreign relations and intelli- gence committees have already been briefed: The danger is not that the enemy will "change the codes' - the keys are changed daily in any ?'rent tad instituting a complete system change, w:th new equipment, is a major undertaking, impossible to effect in an active combat situation. COMINT - its progress and immediate fruits - will never enter the public domain. Distribution of the ruits is severely restrict- ed even within the ,overwnent. It does exist, though, and government's job - for any administration - v cu'.d he far easier if the public accepted the fact policy is often shaped by intelli, that can't be dis- closed. ..{ Morris served :7 yeas with tie CIA SePore retiring I In 1977. .ft Approved For Release 2005/11/28 : CIA-RDP91-00901 R000400120001-3 Approved For Release 2005/11/28 : CIA-RDP91-00901 R00040q =PEAR, ED Approves:' o ert Plan .11 icaragua By Patrick E. Tyler and Bob Woodward Washington Pest Staff Writers - President. Reagan has authorised covert operations against the Central American nation of Nicaragua, which, administration officials have charged, is serving as the military command center and supply line to guerrillas in El Salvador. According to informed adminis- tration officials, the president has ruled out the use of U.S. military forces in direct anti-Nicaraguan op- orations. But the authorized, covert plan directs the CIA to begin to build and fund a paramilitary force of up to 500 Latin Americans, who are to operate out of commando camps spread along the Nicaraguan- Honduran border. The officials stressed that it will take months for the paramilitary force to be recruited, trained and positioned to begin operations.. They- (lid not say. precisely when. the cross- border operations are. scheduled to begin. As part of this plan, the comman dos eventually would attempt to de- stroy vital Nicaraguan targets, such as power plants and bridges, in 'an effort to disrupt the economy and divert the-attention and - the resources of the government: Mk, strategists believe these covert ''op- erations inside.; Nicaragua will slow the. flow of arms to El Salvador and disrupt what they claim. is a Soviet and Cul an-controlled government in. Nicaragua, Operating under 'a $19 million CIA budget, the. planned 500=man force could .be increased in. siz'e.if necessary, officials said. The CIA force would. be supplemented by an-. other , Latin - American commando force of up to 1,000? men-some. of whom currently ' are . undergoing training by Argentine, military offs- resistance:, , vials f1 aa -' : fi_n a- -;, Approved For ReleaseCs0t11%28 : CIA-RDP91-009018000400120001-3 THE WASHINGTON POST 10 March 1982 This is the plan for CIA covert operations first reported in The Washington Post on Feb. 14 as part; of the Reagan administration's strat- i egy in the region. At the time, it' could not been determined whether. the president had authorized the .CIA's plan to build a paramilitary; force against Nicaragua. Several informed sources now say that the president did formally au- thorize the proposal, but the precise timing of his authorization could not be determined. It may have occurred late last year. The covert action proposal was developed by the CIA and. first presented in detail to President Rea- gan by CIA Director William J,. Casey at the .Nov. 16 meeting of the National Security Council. It was supported by Secretary of State Al- wander M. Haig Jr. and Defense Secretary Caspar W. Weinberger, ac- cording to knowledgeable officials- Administration officials familiar with the CIA covert program stressed that the decision to focus on economic targets was based on a de= sire to disrupt the Nicaraguan arms supply line to El Salvador in a man- ner that is relatively inexpensive and least threatening to the civilian pop-' ulation. "If you blow up a clam, you cause; a lot of trouble, but, you're not kil-' ling people," one high-level official said.. Ire his Feb. 1S press conference,, Reagart- was asked if the- United! 'States was planning, covert opera I tions in Nicaragua, but he declined to comment. Nicaragua currently is =ruled by. the Sandinista National Liberation. Front, whose guerrilla forces over threw the_ government of dictator Anastasio. Somoza in July .1979.' Honduras has a close military re- 'lationshi _with the United States;) and Honduran officials = fear. that the+ political upheaval in EI Salvador and j Nicaragua will spill into-their .counf try. As a separate part "of the U S strategy in the region,-the U.S. mil= ;op itary currently is engaged in two erations in neighboring.Honduras toy indirectly support anti-Nicaraguan efforts , informed administration of- ST1 T According NSC records, al in Nove:nt and conduct military opr Cuban preset nista support and elsewber: The CIA, in thorization fc military forcE program shot that funding force describt Covert opt proposal, ac records, are i s `Build p tral America opposition front trial wuuiu uu ,~a i tionalistic, anti-Cuban and - anti- S, - -9 "Support.- the o~)position front through formation nd training of action teams to cob-ct intelligence and engage in paramilitary and po- litical operations in t14icaragua and elsewhere. P "Work primaril' through non-j Americans" to achieve these covert.! objectives, but in sor to cases the CIA! might "take unilate -~I paramilitary action--possibly usi ig U.S. person-i nel-a gainst special ,;uban targets." After the initial 1 resentation, the! CIA proposal was tu:-ned over to the national security pl inning group, a subcommittee of the 2N-SC, as a draft "presidential findin ,;' which statesi the need for specit'c covert opera-i tions. Under natiorat security stat- utes, no funds can 3e expended for covert actions "uni a the president finds that each such operation is im- portant to the national, security of I the United States." Senior U.S. def,-nse, and intelli- gence officials . hay - said in. recent weeks that withou. a slowdown in the arms supply tc. El Salvador by air, land and'sea r lutes from Nica- ragua, the position, o government forces in the. war-t( rn country could deteriorate retpinly, potentially prompting an escalation of Salvador= an requests for U..i. military assist- ance. Such requests arelikely to run into strong congre 3ional and public. .`.. _ ..,,~ 0~! .App d For Release 2005/11/28 CIA-RDP91-00901R000400 THE WASHINGTON POST 10 March 1982 By John M. Goshko ,'l. hlmton Post8tatt Writer Mite Reagan administration, seek-- ing to swing public' opinion behind its Central America- policies, yester-~- day staged a display of blowups of aerial photographs to bolster. its- charges that Nicaragua is engaged in a massive military buildup that poses a threat. to its neighbors. . The photographs, projected onto a giant screen in the darkened large auditorium of the State Department, were the highlights of _ a lengthy press briefing given by Adm. Bobby R. Inman, deputy.- .director of the Central Intelligence Agency, and John Hughes, deputy director of the Defense Intelligence Agency. As described by Hughes, the pho- -tographs purported - to : show Nicaraguan military :installations. built according to an alleged Cuban: model, airfields with runways length.; ened to handle Soviet Mig jets that, Vie United States ':claims are- ear marked for Nicaragua, and Sovie tanks and arti1le&in place at some. of these installations The two officials.. Also- ahowed a series of before-and-after photo graphs showing :Indian .villages near' Nicaragua's bordei with. Honduras Nicaraguan. huthorxties. Tha.:admiiz istration has charges aragua with; the Miskito [ndiangand other tribes': that lived in the arV-L.. lected by unspecified' aerial r econ naiasance-'methods;ithe briefing toast largely a reiteratioin.:of- information that;: the administration-:: previously Its main point,,,ich Inman and Ilughes tried- to-'drive =home, with a: drumbeat of tough rhetoric, ;was the, tionary, , Sandinista-con r goo-; enment;- 'Roth 'Cuban' and'- Soviet halm-. iR hx~ili3intr aar`sizriv Aose size`, needs for, legitimate self-defense. Inman said. the intelligence commu- nity believes Nicaragua's goal is to create a standing army of 25,000 to 30,000 and a ready-reserve militia of between 100,000 and 150,000. He added that while the purpose wasn't clear, he believe: the "pattern of Cuba" is being repeated in Nic- aragua-and that "the military infra- structure is there to turn the country into a Soviet bastion" from which campaigns. of political intimidation or outright. warfare can be waged against the rest of the Central Amer- ican isthmus. "This time, the ocean barriers aren't there," Inman said. "They can move much more easily into Central American countries." What -set yesterday's `briefingg apart,froni acc ,-f Or;n7 ac'i stn2ina area and ( tureS. y one of the bases shown wa, cesignea gencies Decla co"uaandcenterfort,'tet;uemmovo. for i,`tetrair rb of special array forcs Initalhgencs Agencies- _ by . meat in El Salvador. Nicaraguan lean. he said. The base, on the s-o e of La e Formes Are `Vastly Bevori e:shave deniedthecharg:ea. gua, cont insasawdustnitthathe r,iana? Today's presentation, Admiral Inman r '. said, was the first of a series of intelli- said was used for training i-i ha id-'o- well as s min e art"air- h Any Defensive lee _ cans bnei -'gs scheduled for this week and . _ _ . _..1...., ~, - ,-V, ~t't c ea used to re i n I:.talHgeace~ ~ ~ 0~4~~IF t~$19~ ~p 01 8 p61 *i& -ie'oriefin~ detersive purposes, said="Joohn '1. areas are built along Cuban design, e said, the result of a systematic effort by VL al putt' Director O1 t Defenstx said. the Sandinist Government to d:stllace Fo*example b1r Hughespresenteda t` eIndia s oy rtetceagan .ur~u~,~:uuuuwi:.~:=.a againstairfieids, ublic about Soviet ss and Lhe C p ongre 4 SyP1?IILIPTAUBMAN r ,- and Cuban involvement in Central Tank PlacernentNot-d s;ari~Mto?:~?t+e+-Yortirma.--' - . America. External support for theguer- At several garrisons, M-- Hughes ~vASHlNGTON Marcfz9-=TI2e.Rea. r-Ila movement in El Salvador will be noted the placement of whit he said an Administration made- biic,today the focus of oneof thesebrifings, Admi- were Soviet T-54 and T-55 ranks and g allaruansaid. Soviet antiaircraft guns. He s-tid?that a_ ::al reconnaissance photographs that ' Nicai a at present has 25 S )viet tangy; t i-:eiligence officials said proved i3ica? Public Doubts Are Noted gu ; armed with 1GC-millimter guns- ;...n with Cuban and -Soviet-assist. According to senior Administration In addition, he said, the United States. a_.ce, was assembling the largest Mill- of icials,thedecisiontodeclassifysome has evidence of the _preserce of two ta. force in Cent; al Atneric .- = ? intelligence infarmation about by Sec- Soviet Hip relico Tees, 12 seB-I t t armored -the Administration assertedthat thet America was made this morning by Sec- personnel carriers and sev ral heavy rilitary buildup posed a threat-to Nita- rein' of State Alexander M. Haig- Jr. amphibious ferries capable of trans g r a's neighbors and has.ugset t.'i and William J. Casey. the Director of porting the Soviet tan'cs acrd s rivers- Central Intelligence. It ended severs rneconstnctionofnewgarn-ions has weeks of internal debate about whether been accompanied by the irr3mve has Ling that Vicar avian Ieader todisclosetl:einforination,they said- had lied about the e-'tnt.of the militarj! . TheAdrninistration, the officials said, and expansion of at least fou ~, according to Mr. Hughes- He d that at growth, Adm. Bobby R. Inman, t..e how the release of the raw intelligence airbases, i. puty DirectoroiCentra1.Intelligest~e;'datawill help dispel public doubts about Bltiefieldsairbase, forexarple,on[he" said: "It's time to get some concern In Adr-'iriistration assertions of outside in- Caribbean coast of Nicara,,ua, aerial Jan showed ' t:Ts country about their military builds terferencein Central America. photographs ction of a taken new in runway: up. It's vastly beyond-. any. defensive The aerial photographs made public The t uctionra a he said, 4 s 3,100 feet ;.` today were taken in recent months dun- Ion?, far too short, he-added, to handle a ing manned reconnaissance flights over ? fl, 3?itotsTtefaorted-UndeLTaainiug Nicaragua and show evidence of major iiyarmed bi[G fighter At a press briefing at the Statet?D military construction, according to Mr. par[:Went, Admiral Iainati :sank the Hughes, This is the kind of ai..iel i expansion ui-,es, who was described by Admiral for an air force that claims to have only . ~ , . in Nita- United States believed Nicaragua's.Sanf Inman as the Government's premier a few The O old overall Cubes said, tctais more tranding army of 2S,CCti to 30,000 m Mr. Hughes, who conducted a similar than 6,CM0 advisers: 2,000 military and s . about the introduction of security advisers, 500 medic 1 advisers, e-dipped with Soviet tanks andhelieap~ briefing in I tern. The nation's total military lore ?-'L e Soviet Nicai^agt missiles ran in Army Cuba, had said 49 today garristh at ons, 600 government advisers, 2,G0 teachers including militia, is nearly 70,000, easily 35 of them constructed since the Sandi,-'- and 750 constriction worker;. the largest in Central Amens, Admen- lets gained power- Admiral Inman said that there were. istration officials said:'-- . ":~_ , , He also said that imph-ovements were 50 to 75 Soviet advisers in Nicaragua , in- In addition, they said; N1C3 :a::i3 being made atNicarao atNicaraguan ai~'olvedprimarily inadvising ;dieNicari? soon to receive advanced jet- fighteZ eluding the extension of runways, to ac- guans. about military organization and p anesfroratheSovieL Union 3ndhas 5) tA7 madate advanced MIG aircraft tactics: pitotstr'aininl,-inBulgartatoflfthem_ Y built in theSoviet Un'on *s ..: .: Today's presentation also incii:ded a Based the pace of nets airfield PbotographsAreDispIayed series of photographs showing )tiliskito Indian villages in northeast Nicaragua caristtuction on ;,"and- the :de- ""' tent d. To support-'those assertions,- Mr. on Jan 4,1482 and again on Feb. 23. The zew ground force installations, It is evi- Hughes displayed a series of oaks bed first photographs, Mr. H-. goes said, deny. to-its -that-:tlte Sandinistas-are photographs showing military. insalla- p first showed populated, fundionrnR villages. achieviagmilitaryforcelevelsxaexcesa tiors in operation-or under constriction ! The second photos showed the sa me vi llage t- .of those:-nuiiaally-r'egtured'.p ly`~or)ia Nicaragua- "Most of these garrison4 lager with all buildings destroyed, he.( rison at Villa Nueva. Fie sal at the said that in a visit to Wasainngton last week, Nicaragua's Minister of Agricul- ture, Jaime Wheelock Roman, lied STAT Approved For Release 2005/11/28 : CIA-RDP91-00901 NEW YORK `i I NHB 10 MARCI 1932 0_~+ P. O'E Following is a transcript of the the largest in Central America a :d 1 .when John Hughes briefed the evi- statements on the military huildup in dence, fromphotography, of the Intro- totalsupto70,000rnen. Nicaragua given yesterday at the; ductonofnhissilesinto Cuba. Based on the pace of new alrtield .State Department by Adm. Bobby R.; .~ I will field your questions after John construction avid the development of Inman, Deputy Director of Central In- has finished within the degree that I ! new ground-force i:statlaticrs, it is telligereca, and John T. Hughes, can,-. And I'll be assisted by :Tim Wil-; evident to us that the Sandinistas are Deputy Director for Intelligence and, =liams, the director of D.I.A. John, over! achieving military force levels a~?d External Affairs for the Defense Intel :tQyou. f capabilities that are in excess of tcse Iigence Agency, as recorded by Thee 'Hughes: Thank you. Indies and l normally required purely for defe.n. antlemen, our purpose this afternoon sive purposes. O - )- Yor`t dews through the facilities) .cis to review some of the sensitive intel- We believe that they have alrea ly of the Ca'~IelVews l7ietwark: ` oence available ro us on the continu-) upset the military balance In Central --Mr. Inman: I'm Bob Inman. I'm here this afternoon because I'm con- c;rned and because I'm angry. I'm. concerned about insuring that you, rand through you the public, has a clear understanding of what's been worry-. mg those of us in the intelligence corn- raunity for months now. That's the military, buildup in Nicaragua and -what it portends for this country. I'm angry because I've watched, over the past couple of weeks, public servants trying to grapple with the dif- fic llty of conveying information while protecting critical intelligence sources and methods and finding that they're sandardly greeted with, "How can we believe you, unless you show us all the -detailed evidence." And over the, weeker^.d, we were treated to the occasion of the visit of ?Minister Jaime Wheelock from Nica- .rngua, who used the platform given:, him to talk at substantial length about;1 what wasn't happening in Nicaragua. And as you will see from what we have to say, he lied directly, and no one seemed to challenge that process, .at least not in the stories that I read. And today we're not going to deal with El Salvador and the events there. That will be coming, a series of events later in the week. But we are going to respond today with some declassified intelligence on the nature of the -buildup that we've been watching for hone time oll e si Th p e -- -, request that he exercise his authority] purpose to Somoza's National Guard,! .o declassify some manned recornais gradually have been built to a force of s.ance imagery, or photography, which five to six thousand men. jr "believe you will find makes a very , The regular military forces have, subbstantial, different case from that grown even more quickly from a small "which you heard from Mr. Wheelock ! initial force of 5,000 to a large, active-' over Lie past weekend. duty army supplemented by even, -We're privileged to have with us' larger, militia and reserve elements. today. to present the evidence to you, - This combined military force is howl John Hughes John has been in the in- telligence business now for slightly; raptly. Next graphic. over 30 years. He is the premier photo ,-interpreter in the Lplj Release 2005/11/28 : CIA-RDP91-00901 R000400120001-3 ,'community. And those you a, ?historicai interest.may_r',1962' , Ing Nicaraguan military buildup. In America. This is especially true since -tthis review, we will exhibit reconnais- their neighbor to the south, Cc :a; sancta photography of Nicaraguan Rica, maintains no standing array- m military installations and military Let me now share with you the e 'f- -quipment. Bence that is available to us. -We will also show comparative First graphic please. In any dlsc.s coverage-that is, before and after- sion on the Sandinista military buiA border, which have been systenati- cally destroyed by the Sandinistas. This presentation has two basic ob- jectives, with respect to the Nicara- guan military buildup: first, to de- scribe the nature and growth of Nica- raguan military facilities over the past two years, and the inherent Cuban design they represent; and sec- ond, to review efforts on the part of Cuba and other Communist nations to provide modern and upgraded mili- tary equipment to the Sandinistan ,ground -- armed forces. _ -Could we put the lights down please? '-Prior to the overthrow of Somoza by the Sandinistas, Nicaragua main- tzined aNational Guard with the strength of about 10,(x0 men.. This military facilities. tit tree present ui:e, we have confirmed from aer al photography and other sours 49, ic- tive military garrisons. The amaz gig' thing about that figure is that 36 of them are new military garrisons since the Sandinistas have taken pow -r. Thirteen of the garrisons to make :-? the total of .39 are old Somoza ga rris, ins that have been refurbished to accor~c l date the Sandinistar military units. Most of these garrison areas c -e built along Cuban design. In fact, eve, have evidence of facilities in Cuba u` at we'll exhibit today that are seen ink ; Nicaragua. 14 Installations - P The installations we're going to t ith, about are shown, or highlighted, here.' the country in an internal security role! lotions. They are rot all of them the e, and had very little heavy military some of the main ones, here marl --di equipment. - by the military symbol a standing : al SizeolftlllitaryForce dier. Fourteen of them, plus four haw; airfield activities, we're watch agi When the Sandinistas came to very carefully at Puerto Cabez is, power, they immediately began or- Bluefields, Montelimar and nc'arl ganizing regular military forces and a Managua itself. And, by the way, till strong internal security police force. inset of Lake Managua is enlarged in - the upper left, where you can see --he town of Managua and the newly est.:b- Iished ground-force garrison that we're going to be discussing in the c-m- text of today's presentation. This is Sandino Airfield, the main :n-! field. As I mentioned a moment ago, at of; these take on a Cuban design and char-1 - acter. Let me show you what we :re' saying on the reconnaissance photig- CON=UT -Q,, Approved For Release 2005/11/28 : CIA-RDP91-00901R0004001 A T ' c. _ ` - V u E E NEWSDAY (NY) ON 10 March 1982 By Daniel Kahn Newsday Long Island Business Editor Woodbury--A Central Intelligence Agency official yesterday shared some of the agency's concerns with members of the Nassau-Suffolk business community, and took the opportunity to do some lobbying. J. William. Doswell, the CIA director of external affairs,' called attention to two "crucial issues" now be- fore Conti ess: Public identification of CI i agents and easy access to sensitive material through the Freedom of information Act The proposed Intelligence Identities Protection Act would bar the publication of the names of agents, he said, without threatening penalties for . inadvertent disclosures." The Freedom of Information Act "galls me," Dos- well said. "The KGB can-and does--request informa- tion which. Nye must provide by law," he said, and the ! CIA "loses information" from potential sources that are I dried up by the possibility of future disclosure. The CIA and the National Security Agency should be exempted from the act, he said. Doswell invited the 200 businessmen. attending the Long ? Islas d:.Asso6!P`t1cn''s,;World-Trade.Club lug=; ' cheon at the Crest Hollow:: Country; (;lub to express their support- of the CIA positions to their conorress- The appearance apparently marks- an effort by the CIA, under new Director William Casey, to reach out to the public. A similar invitation fron. the LIA 18 months ago-was rejected by the CIA as sot in keeping with its policies. Doswell, a former newssa per publish-: or and head of his own public relations firm in Rich- mond, Va., joined the CIA in July. _ In his address, Doswell touched on w:- at he termed three areas of major concern: 0 Terrorism as a tool for political act on is growing rapidly worldwide. Since 1930-ard for tine first time-- terrorism has been "sponsored by a na-ional govern- ment on a large scale." (He later identifid the govern- went as Libya.) Primary targets are U S. citizens or their properties. Americans-particularly business- men and diplomats--ere the targets in two of every ive incidents. Latin America and the Midea t are the ma- jor areas of terrorism,_ r .th ;Europe "no far behind." 0 A low self-sufficiency of such critical resources as cobalt "may spell trouble" for the United S= tes, since any loss of the:roteurces ."would bring a shock to the economic systcrri? The U ited States "can't determine its own fate when foreign hands are on the throttle." Approved For Release 2005/11/28 : CIA-RDP91-00901 R000400120001-3 STAT Approved For Release 2005/11/28 : CIA-RDP91-00901R00040( 120001-3 RADD 1V REPORTS, 1 NC The Today Show WRC TV NBC Netvork March 8, 1982 7:00 AM Colonel Pluammar Qaddafi Interviewed Washington, DC JANE PAULEY: Chris Wallace spent this weekend in the Middle East, where he got an exclusive interview with Liby.j's Muammar Qaddafi. Chris is in Rome this morning with the story. CHRIS WALLACE: Jane, we are just back from Liby 3, where on Saturday night we spent an hour talking with Colonel Mu9mmar Qaddafi. In the interview the Colonel said that there was no justification for a U.S. ban on Libyan oil imports. He al -;o cri - fiicized Saudi Arabia, saying that it should cut oil production by two to three mil lion barre I s a day, and that failure to clo so might destroy OPEC. And we asked him what he will do if U.S. warships return to the G u l f of S i d r a , , where l a s t summer tw) U.S. planes shot down two Libyan jets. COLONEL MUAMMAR QADDAFI: We will defend our cou-atry till the last dro of our bl d d th l t p oo an e as man and woman. We know we are a small country and America is a superpower. That is our duty? We don't want to invade America. We are not going to make war on the shores of America. But America is coming acre. What we w i l l do on t h i s ? We w i l l do our duty. WALLACE: And that is to, fight? COLONEL QADDAFI: Of course. If anyone comes to your country,-in your home, what do you do in that case? When 'e attack your home, what you wi I I do? WALLACE: Qaddafi said throughout the interview hat he wants good relations with the U.S. But he accused Pres:dent Reagan of usling Libya to distract the American people from U.S. economic problems. Approved For Release 2005/11/28 : CIA-RDP91-00901 R000400120001-3 OFFICES IN: WASHINGTON D.C. 0 NEW YORK ? LOS ANG-,EL.ES 0 CHICAGO ? DETROIT ? AND O''HER PRINCIPAL CITIES STAT Approved For Release 2005/11/28 : CIA-RDP91-00901 R000400120001-3 Approved For Release 2005/11/28 : CIA-RDP91-00901 R000400120001-3 U pp it a lin pA J~ 7 romed For ReIe~ S l CIA-RDP91 00901 R000400120001-3 Interview With CIA Director William J. Casey eReaS Threat in EI Sava And Devon In a rare and unusually candid discussion, the nation's intelligence chief spells out a Kremlin strategy for conquest by subversion and for building Russian military power by using secrets stolen from the U.S. trainees in East Germany and Czechoslovaki_i and 5,000 to 6,000 students in the Soviet Union. They have 50 people here, 60 people there--in Africa, in the Middle East and in Latin America. They can do this because of the demographics that led them to get rid of 120,000 people in the Nlariel sealift. There has been a 50 percent jump in the I5-to-19 age Q Mr. Casey, there's a great deal of concern that this country group in the Cuban population. That's quite a latent force might be dragged into a Vietnam-like quagmire in El Salvador. In that Castro has no work for at home and ca a use for mis- your view, Is that fear warranted? chief abroad. He said in a speech just a few months ago that A No. I don't think El Salvador or what we're likely to do he would like to send 10,000 young Cuban; to Siberia to there bears any comparison to Vietnam. In the first place, chop down trees for construction projects in Cuba. Ill Salvador is on our doorstep. And we're not just talking Q Do you have evidence that materiel is being supplied by about El Salvador; we're talking about Central America-- Cuba to the guerrillas in El Salvador on a significant scale? Costa Rica, Honduras and Guatemala. The insurgency is A Oh, yes. Without it the guerrillas wouliin t be able to beamed at all those countries. Furthermore, this is part: of a sustain an insurgency. worldwide problem. Cl. And Nicaragua? What part does it play? Q Worldwide In what sense? A This whole El Salvador insurgency is run )ut of Managua A Around the middle of the 70s, the Soviets assessed the by professionals experienced in directing ;uerrilla wars. impact of Vietnam on American public opinion and decided You've got to appreciate that Managua has become an inter- we probably would be restricted in our ability to respond to national center. There are Cubans, Soviets, Fulgarians, East low-level insurgency operations. In the last seven years, Germans, North Koreans, North Vietname~.e, representa- starting with the dispatch of sophisticated weapons to join tives of the PLO. North Koreans are giving some weapons up with Cuban troops in Angola, they have developed a very they manufacture. The PLO provides we ipons they've innovative and brilliant mix of tactics: Political, diplomatic, picked up around their part of the world. Ther _- are American destabilization, subversion, terrorists and support of incur- weapons that the Vietnamese brought in in substantial quan- gencies. And they have applied this around the world. tities-mostly small arms that were left behi' id in Vietnam. Over this past year alone, you've had insurgencies in Q How large are these foreign groups operating in Managua? North Yemen, Chad, Morocco, Kampuchea, El Salvador, A In the case of the Cubans, 6,000 are in he country, of Guatemala. You have incipient insurgencies in many Afri- whom 4,000 are in civil work and maybe 1,8)0 or 2,000 are can countries. The Soviets work in some concert with Cuba, in military and security work. The East Germans and Soviets Libya and North Korea. They work with Angola against each have somewhere between 50 and 100. ""he Bulgarians, Namibia and Zaire; with Ethiopia against Somalia, and with, the North Koreans and the Vietnamese are ewer. They all Libya and Ethiopia against the Sudan. have their little function: The East Germans vo.rk on the se- Q How are the Soviets involved? curity system; Cubans work on the general strategy, and the A What happens in these insurgencies is that the Soviets Soviets work, for the most part, on the larg" weapons that go in and exploit the underlying social and economic dis- have come in. The North Koreans and Vietnamese are good contents, which are plentiful. That gives them a base. They at caching arms and digging tunnels and things like that. feed it with trained men and with arms. That drives away Q Why is the administration apparently so concerned about investment. The insurgents sabotage economic targets, and the arrival in Cuba of crates presumably containing a squadron so economic discontent grows. And as the discontent grows, of MiG-23s-a plane that already is operating there? more people go over to the insurgents' side. A Well, Cuba has the biggest air force in ' he hemisphere It's almost a no-lose proposition for the Soviets. They can next to ours. The new planes are just part of a buildup. But stay in the background. They sell their arms and get up to I don't know that we are that concerned. Jimmy Carter 20 percent of their hard currency from Libya and other made it an issue when MiG-23s arrived in Havana, and he countries that can pay for the arms. It's something we have didn't do anything about it. I think this President has been very great difficulty coping, with. rather careful not to make it an issue-although I wouldn't Q What is Cuba's role in all this? say we're. unconcerned. A Here's a country of 10 million, with 50,000 people Q Does what is happening now in Cuba ,iolate the 1962 around the world-military and civilian. Besides the Cuban Kennedy-Khrushchev agreement ending the missile crisis? troops in Angola and Ethiopia there ? r 12,000 technical A Oh, sure it does because the '62 agreement said the Approved For F efease 2005/11/28: CIA-RDP91-00901R000400120001-3 Soviets would *p 0MveWFF:irH fe8tW,2G0b141PN`a' IA-bP9 a-pd E~ [~~$~ 9" f~}} WWppppr rt of the El Salvador there would be no export of revolution from Cuba. The insurgents several moiitFis ago, I2 La`Ein American countries agreement has been violated for 20 years. dissented. That shows growing concern. At the OAS meet- Q So the aircraft coming to Cuba now are attack planes' -- ing in St. Lucia a couple of months ago, there was a 22-to-3 A They're attack airplanes, yes. vote in support of orderly elections in El Salvador. The three 0. Are they nuclear capable? dissenters were Nicaragua, Mexico and Grenada. just two or A They can be made nuclear capable. There's an export three weeks ago, Costa Rica, El Salvador and Honduras got 1 version which is not nuclear capable. We haven't seen together and called upon Venezuela., Colombia and the these planes yet. They're not out of the crate. The probabil- United States to help protect them against Nicaragua. ity is they're the export version, but it just takes a little bit: Increasingly, the Colombians and the Venezuelans are of wiring and a little bit.of work and.some pilot training to getting concerned. The Mexicans should be concerned be- make them nuclear capable. cause they could be the next target. I i ead now that they've On the other hand, the Soviets have better ways to hit us got at least the beginnings of a qui:-k-reaction force. So with nuclear bombs. It's more likely these planes are for the maybe they're coming around. Also, 'here is dissidence in purpose of building Cuba up militarily, modernizing their Nicaragua. A lot of Nicaraguans think that the Sandinistas Army, probably paying them for their work in Africa--to are betraying the revolution. They resent having the coun- keep their forces in Angola and Ethiopia. Their Army prob- try taken over and run by Cubans. ably feels happy if it gets modern equipment, and they So we can hope that development; in Central America probably wangled these planes out of the Soviets. will breed a reaction. You say "Halt" t' all this when you're CL Could these MiGs be destined ultimately for Nicaragua? not saying it alone, when you're not p,irceived to be behav- A We think that Nicaragua is lengthening its runways at ing in Central America the way the Soviets behave in three airports for the purpose of being able to take this kind Poland and when you have enough Latin American partici- of fighter. It probably hasn't been determined whether the pation so' that you're helping them instead of doing the Salvadoran soldiers. "The notion that all massacres of civilians are perpetrated by the government, not by guerrillas, is false." planes will go from Cuba to Nicaragua or whether addition- al planes will go directly from the Soviet Union. Q Is there a point at which the United States says to the Soviet Union and Cuba, "This far and no further"? A-That's the $64 question. I don't think the American public generally perceives the threat in as serious a light as we may perceive it at this stage. I think we'll come to our senses and face up to it. But you've got a problem not only of American public opinion but of Latin American public opin- ion. It's the gringo problem: They don't want us down there. When we go down there, we play into the hands of the Marxists to a degree; we give them a rallying point. The President has made it clear that there is no intention of sending troops there. Exactly what to do to help these countries defend themselves is a very difficult, complex political, diplomatic, military decision: You can't make it without public understanding and public support. Q Is there any sign that Latin American opinion is changing and becoming more supportive of the United States? - ~-~ A A year ago no Latin American country was greatly con- cerned about what was happening in El Salvador. Yet when whole thing for them. Q Concretely, what threat do these developments in Central America pose for the U.S.? A Well, just look at what is happenir.g down there. Nicara- gua, a country of 21/x million people, 1-as an Army twice the size of El Salvador's, which has twice the population and is fighting for its life. Nicaragua is sitting there with a big Army that's getting bigger, with Soviet tanks and airfields being ex- tended and pilots being prepared tor Soviet supersonic planes. When and if that happens-I think it will happen in six months-Nicaragua will have mil tary dominance over the rest of Central America, with a population 7 times theirs. If Cuba, with 10 million people, an.l Nicaragua, with 2' million people, take over the rest of Central America and build up the armies on the scale of ? heir own, you would have a very large army down there or. our doorstep. Mexico is sitting there with a military force of about 150,000 today and never thought of having anything more. Q Are the persistent reports true that government troops are responsible for most of the massacres of civilians in El Salvador? . A Nobody knows where all these casualties come from. This is civil war. Sometimes they come from the govern- ment, and sometimes they come from the guerrillas. We are satisfied that the government is sensitive to the importance of disciplining its forces and is making a genuine effort to do so. But that's going to be very slow and not entirely satisfac- tory to our public opinion. El Salvador has a violent society. and the law is kind of slow. A man can t be convicted of mur- der without a witness under their law. And those who sit in judgment risk their lives because the society is violent. So judges have a tendency to duck the rponsibility. But the widely propagated notion that all the massacres of civilians are perpetrated by the government and not by the guerrillas is clearly false. In the fl nal analysis, you have to makeup your mind whether you would prefer a Marxist- Leninist dictatorship to a society that is capable of reform. Q Turning to Russia: The CIA and the Defense Department recently stressed the need to limit Soviet access to American scientific and technological research. Why the sudden concern? A You need to be concerned about it. We have estab- lished a technology-transfer center at the CIA that has taken a very comprehensive look at the whole question of the degree to which American research and develop- ment-and Western technology generally--has contribut- ed. to the increased accuracy, sophistication, precision, ? ,power and countermeasure capability of the Soviet arsenal. Approved For Release 2005/11/28 : CIA-RDP91-00901 R000400120001-3 Approved For Release 2b0/1-1721 : CIGAR '%""64f 0N*01Y1_0? `' to gain access to Key Points Made by Casey M El Salvador as another Vietnam. El Salvador bears no comparison to Vietnam. It "is on our doorstep [and] is part of a worldwide problem." ^ 1962 Kennedy-Khrushchev agreement. The ac- cord barring Soviet offensive weapons from Cuba and prohibiting Castro from exporting revolution "has been violated for 20 years." e Havana's role in El Salvador. Without arms from Cuba "the guerrillas wouldn't be able to sustain an insurgency." ^ Threat from Nicaragua. "Managua has become an international center" for subversion-harboring 6,000 Cubans, plus Russians, East Germans, Bulgarians, Viet- namese, North Koreans, PLO. Three airports are be- ing developed to take advanced Soviet warplanes. e Qadhafi--a madman? "You could say that." He was driven to retaliate with assassination squads for the U.S. downing of two Libyan planes. a Continued threat to Reagan. Qadhafi's hit teams still pose a danger to the President. "You don't call those things off." ^ Russia's reliance on U.S. technology. "Soviet stra- tegic advances depend on Western technology to a far greater degree than anybody ever dreamed of," and the KGB has a large organization working exclu- sively to get these secrets. ^ CIA mandate. To overcome the effects of years of rundown, the agency has a "general go-ahead to carry out a buildup ... in line with the defense buildup." We have determined that the Soviet strategic advances depend on Western technology to a far greater degree than anybody ever dreamed of. It just doesn't make any sense for us to spend additional billions of dollars to protect ourselves against the capabilities that the Soviets have de- veloped largely by virtue of having pretty much of a free ride on our R&D. They use every method you can imag- ine-purchase, legal and illegal; theft; bribery; espionage; scientific exchange; study of trade press, and invoking the Freedom of Information Act--to get to this information. We found that scientific exchange is a big hole. We send scholars or young people to the Soviet Union to study Pushkin poetry; they send a 45-year-old man out of their KGB or defense establishment to exactly the schools and the professors who are working on sensitive technologies. The KGB has developed a large, independent, special- ized organization which does nothing but work on getting access to Western science and technology. They've been recruiting about 100 young scientists and engineers a year for the last 15 years. They roam the world looking for technology to pick up. Back in Moscow there are 400 or 500 assessing what they need and where they might get it- doing their targeting and then assessing what they get. It's a very sophisticated and far-flung operation. Q Can you give examples of how U.S. research has directly contributed to the development of Soviet military capabilities? A Yes. The Soviet ability to MIRV their weapons--to de- velop multiple, independently targetable warheads for their missiles and to achieve the accuracy of their missiles that threaten the survivability of our fixed-site land-based sys- tems came largely from their hooking on to the technology behind our guidance systems and from the use of high-preci- sion grinding equipment they were able to get from us. I'm not saying they might not have made these advances some- time anyway. But they got them on the cheap and quick. A This is something which needs to be looked at across the board in terms of our export controls in terms of the openness of information and in terms )f scientific ex- changes. I think there probably will be a panel of the National Academy of Sciences that will loo.. carefully at the question of scientific exchanges and detert'iine how far one might go to control damaging leakage. But ou're not going to shut these down. We want to preserve an open society. We're not going to alter that. But, at the sL: use time, we are entitled to protect our scientific and techn ,logical secrets. Q Early in the Reagan administration there was much talk of Soviet Involvement in international terrorism. Is there evidence that Russia orchestrates the activities of these terrorist groups? A We believe they export them more .ban orchestrate them. Terrorism has become a great indus; ry. It was always a false issue whether the Soviets directed, and controlled world terrorism. World terrorism is made ip of a bunch of freebooters, and they're all, more or less in business for themselves. The Soviets have supplied sveaaons and trained the Palestinians and other terrorist groups. ?'hey have train- ing camps in South Yemen. That was part o! their getting in- fluence and edging their way into the Mid Ile East. But if anybody orchestrates them, it's Libya's Qadhafi. He has made many of them dependent o i him-. After the '73 war, when the Arab world was in disarc-av, Qadhafi was looking for leadership. The only thing he had was money- and nothing to spend it on. So he found all :here Palestinian organizations wanting to stir things up, a id he started to put money in them. And then he started t,) train them and so on. There are over 25 terrorist and ?'uerrilla training camps in Libya. Training guerrillas and terrorists is the second largest industry there--second onl to oil. When Qadhafi wants to send hit teams o t to get his own dissidents or to retaliate for the downir g of two of his planes in the Gulf of Sidra by the United States, he uses mostly Libyans, but he'll also go to Pales. iuian and other terrorist organizations and sign them up tc help. The capitals of terrorism are Tripoli and Beirut. The money comes out of Tripoli, and the infrastructure and the false documents-the headquarters-are in Beirut. It's a big business today. They need money, and Qadhafi provides it. Q What is Qadhafi's aim? A He's striving for ego satisfaction. He '.ants to be a big figure in the world. He wants leadership. Q Is he a madman? A You could say that. When he's confr rated, he has to retaliate. He has that kind of ego drive- He has to show that he's as big as anybody else, and if the United States knocks two of his planes out of the air, he's got o do something about it. He talks about it, and then he s under greater pressure to do something about it. He wa its to spread his influence across Africa, and his money reaches Muslim groups as far away as the Philippines. Q It's your view that the hit squads we heard so much about were sent by Qadhafi to assassinate U.S. leaders in retaliation for the downing of the two Libyan planes-- A [ think that's when it started. Of court e, we had previ- ously, broken diplomatic relations and taken other steps against Libya. Qadhafi is a little guy fe, -ling he's being kicked around by the big guy, and he t' pinks he's really bigger-and he's going to show it. Q Do those hit teams still pose a danger to the president? A [ think they do. You don't call those things off. Qadhafi sent somebody to say, "We're going to cal them off." And then he said he was firing people out of his i.itelligence orga- nization, but we find they're still there. We keep getting re- ports that people are being recruited, mo-;ing around. It's Approved For Release 2005/11/28: CIA-RDP91-00901 R000400120001-3 .'JNT1N( interesting that thg0ri~q~~ar~~g1~/r}~ attache in Paris-who was killed at his home was at tic h.g - est level below those provided with security. I think that so much security was laid on to protect the President and other top Americans that the Libyans may have pulled back for a while. B t you don't know when they'i e going to resume. Our Paris embassy believes that a large number of their personnel are under surveillance. We see people casing the homes of ambassadors in other countries. There's clearly still a threat, and you've got to be concerned with it. Q Does the rescue of Brig. Gen. James L.?Dozier from Italy's Red Brigades imply that the terrorist threat is receding? A Oh, no. It's growing. I think we're justseeing the begin- ning of it. Take the Red Brigades. People who take up that activity are not normal, and their egos are easily bruised. When they suffer a setback, they want to tome back to regain their repu- tation and status-They bungled the Dozier affair from their point of view, so their reputation recedes. Like any other business, when their reputation recedes, their ability to re- cruit and to get money diminishes. If they want to stay in busi- ness, they've got to do something again. They've got to score a hit. They do this to make an impression or to get attention. The reason I say it's going to increase is that the opportuni- ty to inflict real damage and to really influence public opin- ion hasn't been scratched yet. The opportunities to score propagandistic hits are so much greater. than has been ex- ploited. That's why I think we're going to have more terror- ism.before we get less of it. Q If you were to name the half-dozen most dangerous spots in the world for the U.S. in the coming period, what would they be? A Iran, Central,Arnerica, the Middle East, the other side of the Persian Gulf, Germany and East.Europe, Morocco and the Strait of Gibraltar. Q Do you mean East Germany--or West Ger- many and Eastern Europe? C~4 Vf5 `-1 O'Kb0~`~kb"Ot'~' 6bdi something could Then, too, I think, you've got to look as southern Africa. There's the danger of that area being cut :ff and ultimately falling into the Soviet sphere of influence That could put squeeze on the minerals and other reso irces that are so important to the West. That may not be an imminent threat, but it's something you have to W01 Ty. about. But let nie emphasize this: We're not t a only people at risk. The Soviets have their problems, too Q What sorts of problems are most serious for the Soviets? A I would make three points: First, the Soviets have been able to carry on the biggest military buildup in the history of the world and somehow manage to make us the warmonger. we're portrayed as the threat to peace because we're respoaciur If we tell our story right, we can turn that tide. We're not very good at it, but we can make the world more concerned about the Soviets as a threat to the peace. Second, the Poland development should be proof of the failure of the command economy and th?. Commimist sys- tem. They can't work in the long run without brutal repres- sion. I don't know how Poland and Rorn..aia, which is also in a mess, are going to pull out. Finally, the Soviet economy is in very bad shape. The lead- ership was a year late with its five-year plan. And in order to increase military spending. they had to make an enormous reduction in their investment program. 1 he poor economy has led to a social malaise, alcoholism, labor unrest and strikes in the Baltic states. I'm told that Solidarity buttons were bringing $20 apiece in the Ukraine before December 13. At some point, the bottom of the barrel is going to emerge in the Soviet Union. There are real constraints on the Soviets-real constraints. They're only able to carry on their activities around the world because they've learned to use other people so well. . -n1cr ayriA Big Buildull for the VAL., y'E.~c="5;y Ak.The Cart Q What have you done to strengthen the agency after Its these for abou years of buffeting? undertook inc A- The basic intelligence-gathering capability can't be can be impor changed=overnight.. It had run down .over a< seven or and they're u eight-year period largely because of a 40 percent draw- er administration did virtually discontinue t two years, but in the final two years they - reasing numbers of special activities. These tant. We don't talk about these activities, ndertaken only if they're authorized by the- , -. down .in: funds and a 50 percent`drawdown in, people. executive branch and reported to Congrfess. , -. Over the past two years, starting with the last year of,the Carter3'-administration,. there has; been aim ? increase ,in C.:_Aree you seriously hampered by legisla "Now let me tell you I come down on He declined to?prov:de detail, hm- the side of, in such. an r~sessmer,t in aver, saying it would ;ecr mime intelli- Central America that the outcome of Bence sources. Later, i o^ r, iof Lhe Situation there Is in-the vital interest - J3arry Goldwater, Republican of -Arl- zgna, chairman of the Intelligence Coma- , of, the American people a n:1 must be so " said mittee, said that on Feb. 25 William J. ti altsvith, Ptir.Ila-a- . . .11 Casey, Director of Central Intelligence, and others briefed- his committee and "left no doubt that there Is active in- volvement by Sandinista Government officials in support of the Salvadoran guerrilla movement." - - "This support," he stfd,"includes ar- rangements for the use of Nicaraguan territory for the movement of arms rind munitions to ,guerrillas in El Salvador, the continuing passage of guerrillas in and ? out of Nicaragua for advanced training in sabotage and other terrorist tactics and the preesence of high-level guerrilla readquarte is elements in the American people and, as I said re- cently, I know the American people will support what is prudent and necessary, providing they think we mean what we mean and that we are goir:g to succeed and not flounder as we did in Vietnam," hesaid. - . Nicaragua. Mr Casey In this 'cep's Issue o? U.S . , . is red, by which he meant after the situa- I' Neves & World Retort, is reported to tion in Poland improved. . . ! have said that the ir.surge nts were being JJ'I't:e United States will not do bust- directed from .Nicaragua with the help ness as usual with either Poland or the- of Cuba, Vietnam, the Palestine Libera- Soviet Union "while repression in Pa. tlcn OrganIzalto n and the Soviet Union. ; land continues," and further sanctions' ~ The magazine quoted Mr. Casey as will be undertaken if the Polish situation 1. saying that "this whole El Salvador In- did not improve: surgency is rem out of Managua by pro- 4essimals experienced In directing guerrilla wars." Mr._ Haig, went to some lengths to rebut the argument that El Salvador Approved For Rel "I mu been done to sug- gest there are strong parallels between CLAIMS PROOF Approved For Release 2005/11/28 : CIA-RDP91-00901R000400120 071, ?Ae3 P HILADEL,PHIA INCUIRER 3 MARCH 1932 asytieorgeueuaa dor; the continuing' passage of guer- n. ca=ta Preas Haig replied "I d >n?t know of an i i d , y r ltas n an nut ofNicaragua for . . - WASHINGTON -.Secretary of State advanced training in sabotage and official in the execs tive branch who Alexander M. Haig Jr. said yesterday other terrorist tactics, and the pres- is considering that c~otion." At anoth- that the military operations' of the ence_ of high-Ievel :guerrilla head- ! er point, he said the administration's Salvadoran guerrilla movement were quarters elements in Nicara4ua," policy would be guided by "what is being directed from outside the Coldwatersaid. most prudent and w~iat is most likely country by non-Salvadoran forces he Casey was quoted in this week's to succeed". refused to identify. issue of U.S. News & World Report as Haig was testifyin on the aclriints-. Haig told the House Foreign Affairs saying that the insurgency in El Sal- tration's request fo S8.67 billion in Committee that he could not provide vador was being directed from Nica- foreign military an( security related more details because this'could jeop- ragua with the help of Cuba, Viet aid. ardize U.S. intelligence Isources. narn, the Palestine Liberation Organ- On another issue Ilaig sought"to Haig's statement- emphasized the' ization (PLO) and the Soviet Union. dodge questions abut whether the Reagan administration's' contention` Guillermo Ungo, a leader. of the. administration plans to sell mobile that the turmoil in Ef-Salvador does' Salvadoran leftist groups seeking to Hawk antiaircraft missiles and ad- not result exclusively from local overthrow the ruling junta, has de vanced jet fighters to Jordan. Al- discontent. Some critics of adminis? nied that the civil war is being di- though the idea has triggered fierce tration policy'have challenged that rected from outside EI Salvador ' by opposition from Israel. Defense Sec- retary Caspar W. recent contention, nonSalvadorans. 1 discussed the "[ he operations of the guerrilla are directing the war are in El Salva- y pns'?ibdity with Jot forces inside EI Salvador are con- dor," Ungo, president of the Demo dan's King IIussein, ;:ad the king said trolled from external command and cratic Revolutionary Front,. said in in a television interview Sunday that control," Haig said in' response to a an interview Monday with the Also- he intended to ask tae United States! In to sell him the equipment, i dated Press. question from Rep. Lee Hamilton (D., a d.). Ile added that congressional In his testimony yesterday, Haig Haig ' avoiding confrontation .lntclligence committees recently had again warned that it was a "terrible with Israel's congre signal support- been briefed privately on the sub- distortion" to draw parallels between ers, replied with the :dministration's jec t:: El Salvador and the Vietnam War. He stock answer that io request had Sen. Barry Goldwater .(R., Ariz.) said the Caribbean Basin is far more been received from Jordan and thus chairman of the Senate Intelligence critical to American security inter- no decisions have )een made.'He Committee, said that on: Feb. 25, CIA gists because a sizable portion of U.S. added: "It is not prt dent to get out Director William Casey and: others oil and trade passes through, that front with definitive statements that had given the panel a briefing that, reason` are neither timely nor called for" "left no doubt that there