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December 30, 1980
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STATI NTL SATLNITL Approved For Release 2001/03/06 : CITA-Kuv91-009 Few Bright Spots - CIA 'Mighty 1/Viirlitzer' Is Now Silent By ROBERT C. TOTH Times Staff Writer WASHINGTON?The Soviets knew the schedule of the United States' KH-9 spy satellite to the minute. and when it flew over the Uzbekistan missile center every- thing was tucked out of sight. But a few hours later. another U.S. satel- lite the KH-I1, passed over the same field and caught an 'aerospace glider out in plain view?giving this country its first evidence that the Soviets were making a craft similar to the U.S. space shuttle. In the kind of games modern spy- masters play. the Soviets had ex- posed the secret space glider be- cause they had been tricked into believing the second satellite was electronically "dead." Among other ploys, it. was made to seem silent. Instead of transmitting its TV-like pictures down to earth as other satellites do. the KH-11 radioed its pictures up into space?to a com- munications satellite that relayed them to a U.S. intelligence station halfway around the world. (The de- ception worked until ex-CIA em- ployee William Kampiles sold the operations manual of the multimil- lion-dollar KH-11 to the Soviets, fora mere $3,000.) Supremacy Misleading .Technological cleverness is the pride of U.S. intelligence?no nation is better at .it?and that supremacy can be a source of comfort to the American people as U.S. military vulnerability in the early 1980s puts greater reliance on intelligence to avoid dangerous surprises. LOS ANGELES TIMES 30 December 1980 But American supremacy in technical intelligence is profoundly misleading. It is not representative of U.S. intelligence capabilities as a whole but stands in stark contrast. For in every other intelligence field ?human spies, analysis of data col- lected and ability to conduct secret operations?the U.S. intelligence community appears to be dange- rously deficient. "Except for technical surveil- lance of the Soviet Union," said one highly knowledgeable source, "we're in lousy shape throughout the world." Some examples: ? _ --Human intelligence sources have largely dried up because of leaks. "Some potentially coopera- tive sources say frankly they are afraid they might find their names in our newspapers." one knowledgeable source said, "and I must say for myself that if I were a Libyan or Pakistani, to say nothing of a Soviet, I would not cooperate today with any American intel- ligence agency." Firings, Retirements Costly --Recent waves of firings and early retirements cost the CIA many hundreds of senior personnel with unique language abilities and regional expertise. In 1978, when Iran's Shah Mohammed Reza Pah- lavi fell, the agency did not have a single regular employee who could speak Persian. A .large percentage of the field officers of its Neer East division, which includes Southwest Asia, are former employees recalled to temporary duty, according to an informed source. ? ?In Africa and Latin America, the United States must rely heavily on information supplied by British.. French and West German agencies. But cooperation has slowed signifi- t?busiys a Si'e "Then agencies ?Coll U.S. dip rattly s thirds of cy :have J. bus nat ? ti-..atinti . . ? :tif, "CIA ana.ysts -cneting Soviet oil production declines, one national se- curity official said. "but they almost missed the Afgha- nistan invasion, after watching the Soviet buildup for six mei-Alas, because they focused on reasons Moscow would not move?detente. Salt II. trade_ -They are biased to predict the ordinary. not sur- prises." he said. ?The CIA's covert action capability, which once un- dertook everything from propaganda campaigns to se- cret wars, has been virtually dismantled. Hostage Raid Cited The raid to free U.S. hostages in Iran. for example, - Would have had a better chance if it had been orlt,anizcd and run by the CIA, according to several intelligc:rice of- ficials as well as one military officer who took part in the ad hoc Pentagon effort. - -At a less dramatic level. the CIA's ability to aid insur- .-geyA groups short of intervention is almost non -exas- -:tent. "If we wanted to help the Afghan -freedom fight- -erg' with guns," one source said. "there is no supply of . -untraceable arms, no experienced gunrunners, no trans- - . ::por.tation assets available readily. And the Soviets knew ? Political covert action, such as planting newspaper ..? .:stories and aiding sympathetic officials abroad. never ::was? suspended totally by the CIA. even in the Carter :.Administration. "But it's on a piddling scale." one of fi-? I said, ''and what's left is rather atrophied." 7Carter became angry at Cuba's continued use bf troops in Africa after his initial overture to Fidel Castro in 1977 for more normal relations. He ordered accounts of Castro's activities to be disseminated internationally. But most of the machinery for such propagandizing? the "Mighty Wurlitzer" once boasted by the CIA?has deteriorated into rusty silence. Even the U.S. Information Agency resisted Carter's orders to play up anti-Castro stories. This particularly incensed the President and led to a minor shake-up within that agency, informants said. Such is the debris left from the unprecedented cam- paigns against the intelligence and counterintelligence agencies in the gov.ernmentparticularlY the CIA. ? . ? Brougbt on Therasel ves To a considerable degree. the agencies brought it or themselves with fc.e.ei;n and domestic crimes and ex- cesses in the name of national security. As a result powerful figures in the Carter Administration. includire ? Vice President Walter F. Mondale who served on de Approved For Release 2001/03/06 : CIA-RDP91-arhEW .2-td CIA abuses, seerne4 e4ntelligence cornmuni _ -- Approved For Rele-ase-2001t03/06 : CIA-RDP91-0 STAT I NTL CO.?..,IPARISON'S'are alrendie ;being clrawitria, Washing- , _ tonbetweep.;-the appoint- , :rnent- of ..1\11=?IgiIliam .J:' Casey = as :? CIA director - , . -.:funder,the ReaganAc1111141.? stratio4i arirY t'ne; choice- of - r lvIcCone - f or the. -sam-e role under the ?:., nedya.Administration; .:".th? men ? are ...,..shrewd- noro: professionals -(although Mr Caseyserve.cLivith. distinction 4 in the. Odice7arStrategic yicesand is remembered4 ivar- colleagues, irr 1...ondon). ? vhose instinct:Ai:ay. prove a surer- guide to policy tban. '.7.-the..',conventional,wisdorns--of established ._bureaucracy., NicCone's instinct told him. -that .:Khrushcbev::: had-zsec- .;? Feted.: missiles :in- Cuba-when? - CIA:sanalysts- were still un- ',convinced., ..,Similarly, Mr- Casey?-_-is unlikely - to-wpay- ..;!..'overmuch respect": - esti-: ftmates analytical , tbe ...Assess- .Centrel,(iiFAC)?sug. ,gesting,!that _the -"motivation 3-,."..?foir:the,.Soviet military build... up'. is essentially., defensive instinct tells him. other-. According., to. sotirces- inside -Mr -? ":-.-Beagan's CIA..:transition: -team, :n.'? major overhaul a .::Ac "...is expected "to be one, Tof ,h. first consequences .of. -aPPointrnent- The. p-resent bead-, of:zNEAC, . Mr- ft._Brute. Clarki=is.,xpected to.? One leading ? contender,to take, [ place,:. is :MrGeorge -Carver,zrai....;; forme:. .0 I A-- --?,:sta [ion, "chief., in, Bonn, now -based =?????at: the-:.Georgetown. :,..:-.Centre? or-ritStrategic,.....and --:;,-;.?International Studies. _ who' _Reagan:s tract- " -:sition tParn and ...!..bas=4nade T:-.hitnself-ta-i,Subtle... and 7 engag- :?.-?;ing.,-: commentator -.on . Irf'atiliarallel.:deielopinent, the '."Deferice"-Intelligence Agency -...--(DifA)--trut.? the. :other corn- ... '.ponents 44f... Pentagon Intern:. are:likelY.. to be. given ?';?- a -larger. Tolic.in. the' shaping! of ? national estimates. _their predictive .record is generally- i,-s.?..recognised?to=have been. ninth. L:botter; th anzatli at. of NIP A C4: ?casera id -tearnt'Faye _.. 11A9.Ye slowly,. a?id- flng d. ' -,?iu ..changesr_it -. ley; '...,the in the . i...Tre'ag4anngentiii' is 1hat. the C FA has already05.een'tdangerou51y ...7-clemoralisAct,?titipKg titiof .roeterdffielliiMale'sY. LONDON DAILY TELEGRAPH 29 DECEMBER 1980 THE7 !INTELLIGENCE - ? : ? : ,-,'2.,Y: -,vi.1:-.74- ..-,,,,,.. . ,...: ? :.-'..T). ..---...,..-. '...*-_--.,, 4.N rvr. -t-k7---1 r. : ji, ,, ....._ . HoweiV'er, the ' Waiat_Ao :.:i.engage,....the services of ,sorne ypeople-,?who" fired,:nr 'pressured- int9 preritature", retirement- Under.? Admisali8tansfield,-,Tu'rner. or - ;his nC,,tes.s controversial pce-.-, .decesporf Mr- William:Colby; ? ?In 'addition-. to' !'analysis-,-:, the; other ? component-: of ...CIA -7:activities - that is likely to:- be'? ? subjected to most -rigorous:. scrutirty--===. is -1'.7!.couriter-intelli- -gence--"- Tliere?-is widespread', concern that ;the. counter-intelligence. -( I) -staff ?talbi weak- . ,ened.in...1974..when:Mr Colby -; managed engineers-the ? ; ouster of - Mr James Jesus Angleton, for twin decades_the agency's CI chief. .The -: nominal ,:cause of - Angelton's removal" was the . Press leak of his involvement a programme of domestic mai}. intercepts. .It-,was not 4 made clear op-the...time that ?! . this, programme ',had been-, -s ? initiated as early as-1953 with presidential -;authority,:- %.and :,that it- has tresulted. in- the discovery ? of: ara.....import- ' --ant East German "illegal": ,as. well as: of rcontacts :`-?TtWeen prominent--.Congres:-. . - sional- figures, and- the Soviet 1{?Glir, , .1,66 ai?A -ZStaff cuts ...;;;;.;Yerti ? - _ ?With.:Mr -Angleton's :Tait powers the-2,..centraliied CI A.! staT.were--",!radically reduced; and. the ,..se'ciIrity' of department'i'Own :files-- . -;?_i..,.including sensitive studies of -secret--services?w - lessened, giving rise to con- cern :that CIA operrations, ....-:--and-';-"aIlied.seer'eti/t. had7?..be- ' .4come id morei". vneiable: Sovie t- detection and. penetra- Counter-in telligenci 'ts :.popular within. a secret ser- ?;.s. vice,. since-the- C I A role is to 7:play the .histinational devil's advocate, cie.restiorting for ex- ample, whether a- defector or double agent: (whose? case-. May ..be 'intensely .44 gIc41703111Cie3c plant. . The breakdoWi, .... tion, :, howeYe 'entire, inteIlig penetration' an .= by it3 antagon NIr...Angletbs:;,...i- ; ..- who have-bee !''.-the Reagam.--..t CI.,, r ,. :?;;., the- next::_adm his advite,?;is _ ?,. - weighedvery seriously, no-t- .:: the creation of a fully- clan= 7i 7.::ciestirte---.,service,' outside-, tile '1 , - least because of . the . close ." - .-'. relatioralii,p of, trust that :1.1r.1,-?.. -.preSent'.0 IA structure,-. to '.'.-- Angleton established in t;11,e- [-'' :conduct :intelligence and.: C1.1 '.- past with'!" many frienutY_is -'"operations-- ,- :: 4-,;:--=-;-;.....=,- secret-services, including_t'9e It.The - ..present, - C I A?.. largely .1 ''TsraelisA754.4":".'"-"--...- ' ":--,----''''..,?-'1 reduced to analysts,, cove-t The :whole -:-..questiort, of CI , r --,. Action --and._ ? paramilitary -1 : "organisatidn...is'- taken itp. in a ,. .operatioris.: (none- of .., whicit,I "Valuable.sollecEon cf puers,...:-, ,-,are -likely.-to remain secret edited.....:13-:."?Pr' -Roy:.:Godson,:;:.- :-,inclefinitelir. or perhaps -even.: ;',..".:.that will3..be`;:iinblislied ? early- for very long) would; remain , 1?'?'-. neit yeat-hy-thez_Washingtorr7:',,..7,to."--defiect interest and, scan: ; ' clCrinsortium' for - the _ ='.: dal' away _from the clandestine :- 1 rt. -.. Study or:Intelligence as part-- service: .,.. .,_ p.... ,_?-?,. , ,......? ;1-Ctf a series entitl.ed "Intelli:4";1:415 is:One' of the'-irianif tu'it-c'n!..---: i ' 4:vent& B.eqUirernenti 'Tor- the- :-.: P'roposals for the ?restructur-.: -;_ing of the ? 15.S. intelligence: - community that will be-teach" , . ing- Mr Casey's 'desk: -"ii Within': thit:-' 'n arrb-vi ei:-.. -a rii aciel c_r itself!,;11r Caspy,..-will'te'.-; ..? urged - by-some' merriberiPf!': '-the CIA transition- teanf:- to ' .?;!..- re-initiate-!!"-.-therevieW.:1-.:=4)1' 1 Soviet deception operations-". '-' eiiitiallylq those- ,?irtVolvirig ?-1 double: agents in ilei:V --Yorls..../1 .:"....-,Whd.3rriayiliave,:been-control; -1 --,ile-rli byl-the-i KG E-rthat-,iwai'...-4 ? ???.t aborted-bp. the:-197.4.:=purg e.1'-:11 _ MITT TNI:= ..1989s.',"?;v? -Contriblittirs to-th. new yolume, en t it Led:- ...Counter-Intent- =-7 gerice,Inle?senior present- :, and, forr CLA:.? and D1 A. - " Two provocatiViC: ? ' paperilie-the- book.are. by. Mr i. Noirnaristin--Smith and - Mr Doribviat(tPtattl.Who..wereqor inerly (tesPectivelY) chief operations and research. diret- - ?. .Ltor,':?iin,-....the;.-C LA's -;CoUriter.f.v. Intelligente -.'. ? Mr Sniuith? argues that-it necessary:,to- re-establish r.a._ :CI.' staff = With ?a:- wide,.pur view; not onli to; en- 'sore' the -security:- of the. A,'s,;. intelligence-collet-tin and covert-. action operations,. - but? to... unde.rtake.. its ..-.own ? offensive,,-double-:, agent -anal - deception i-activitiessiAig.Siqq. the KG-13:- 'He . very:- special qualitications-,-' required to make -a' successful Cl "specia- ' - only .. in -terms of intellectual abilipy,., 1)43,- in terrris7-7of'faMiliarity ? -with 'hundreds- of individual_ cases. - . -over many years:-.-He-rightly. -..observes.....that,the? Soviet: in-k. telligence. ?:place' A-RIVIPLIO ACM ?,:.for -IA-Lich, no- computerised 3e,data-Lbank, tan .-substitute..; '.'- 010002-3 STATI NTL Approved For Release 2001/03/06 : CIA-RDP91-00901 YOUNGSTOWN VINDICATOR (OHIO) 28 December 1980 4:The CIA Under. Casey f ? William J.:Casey is not talking about his' plans butt there is little doubt this Country's espionage' a'rm will get ex- panded:, authority ,and new muscle - Wheri he is confiimed as director of the Central Intelligence Agency. yhile:'seme.-sep4torS?Jnight" quarrel labciut Casey''s conduct as Securities IrarA;2Excliange Commission chief in 491.1 he was *aped of trying to thwart an SEC, inqtury into fugitive fi- nancier,Robert Arespot--!--'hiS confirma- itionappears And With confirmation- behind him, 4ttief67::year-old lawyer, who served as t`Chief",;of Secret 'intelligence for Europe .in thes Office of :Strategic Services in ?yorld- War II; will be entrusted with the job of healing the. CIA; torn by congressional Probes and low - Casey, :, described-, is s decisive and ;blunt4alking, had the :Credentials. The OSSJorerunner of the CIA, was an ef- Ocient network of 150 spies assembled ?by Casey for work. in Nazi Germany. And he's got the backing. President- elect Reagan's task force is recom- mending an increase in CIA operations and the creation of a central records system shared by the CIA and do- mestic law-enforcement agencies. While the CIA's I5,000-member sta is expected to withhold judgment on Caey, there is no secret that a number -' or them welcome the departure of the incumbent, Stansrield Turner, Presi- dent Carter's Annapolis classmate. -.Turner's , critics claim he com- pounded demoralization with imper- sonal, management methods and suspicion of _clandestine operatives and , relied too much on electronic gatherin while downplaying the use of agents: Reagan's advisers are urging revival ? of the CIA's capacity to conduct secret operations as a means of countering ' Soviet expansionism. ? . And Casey, characterized by one bureaucrat as a man who likes to do things for himself, is expected to do just that. Approved For Release 2001/03/06 : CIA-RDP91-00901R000500010002-3 (j2 "-l'Ighiffior Release 2ooli,91/$;? .,c14,Rpf),,q1coo9 ON ezi_ 27 December 980 CORD METER . ow: Public.. - The- ., A Having written..a book about a 26- year career in, the CIA; this reporter has recently completed a tour or-' ,ranged by the-.Publisher,lef nye_ major American cities. It's not clear, yet how many books were 'sold as a 'restate but .expoSure to ?searching" questions in-. a: myriad of TV`inter7 views and radio talk ;shows pro- svided a unique:insight into the cur- rent state of theptibliC's perception of our intelligence services. ? While demonstrating a refresh- ing capacitytosf"think ":; for themselves, the large majority of the questioners'. seemed convinced that at this stage the U.S. has to have. an- effective,intelligence systene, capable of providing, advance warn- jog of impending trouble abroad.' The Soviet :niilitary, buildup has!, been accepted- es, an irrefutable reality and withethar.goes a wide understanding,. that the country- needs to be better,infOrmedethani, ever before. But if the lonetretreat from for- en involvement that began with Vietnam and Watergate has ended, those events have left behind abid-' ing scars: ''Questioner after.. ques7'' tioner probed the-issue of.liow'?tlae'' secrecy essenttel to intelligence col-, -lection can be: reconciled with air-- open socieryrand- official': secrecy_ can: be prevented from masking domestieeithuSe prihipri.0 dent foreign entanglementee*t'f., ` On this point,'She,presS.has evi- dently done an inadequate job of ex- plaining the significance of recent!:' fa-reaching 'institutional, ref erMi Very few. inethiS: large, audience; understood that President Carter by- signing on:Octe-14 the Intelligence- : OversighrAct.prpyided for a depth of congressional review over Intel-' ligence operations the; goes. beyond'; anything .preedpusly entrusted to the legislature-or any-denlocratic;t . nation. ees-. STATIN ? NOV" einbedded in Our-law is the right of the Senate and House intel; ligeitte comraittees to be kept cur- rently informed on all intelligence activities; to which they demand ac- ,:cess2, 'Petalled review;, of : all programs-by these committees and their suspensive veto oyer covert action Pperatons are the best possi- ble guarantee against the repetition of- presidential abuse of secret power:'' . In'reporting on this crucial re- form, the press stressed the fact that it 'reduced from eight to two the. number of committees that had to be informed of covert actions. but failed-to emphasize that these two committees haye now been given the legal teeth necessary to become reliable watchdogs oyer the execu- tive. There is admittedly a security risk in exposing so much sensitive information to the Congress but it is a risk worth taking in view of the deep public concern over the possi- ' ble misuse pf secrecy. . .. _ , ' .. ... With the basic issue of congres- sionalloversight now definitively resolved, there remains the ques- tion. qf how, Ronald Reagan's adviS- ers are responding to the public support for a foreign intelligence service second to none. The current _ answer is that these advisers are agreed on the need for strengthen- ing American: intelligence but seri-. ously divided on how to do it. - -, .. __... Behind the closed doors of Rea- ; gan's intelligence transition team,.. three young Republican- Senate,. staffers have been arguing that the CIA's performance and morale has ; sunk so.low, that only radical sur- ? gery can save the patient.e: ? Drawing on ideas first-Surfaced in a report last year of the Republi- can 'National-Committee; they are ? proposing to downgrade the role of ' the CIA by placing an intelligence, czar in the White House staff. The' operations directorate of the agency. wouldbe established as a:separate ' organization and competing centers,' . for:prOducing-hational -estimates, ,.*O414;13e.p_k4p4::,,,....:Li4;sie.ik,444 '.,=-A-thafority of wiserheads on thel transition team -are opposing these ) plans for radical reorganization. On.' the basis of a-performance record better than its- critCs concede, the CIA,?they'clanneneede to ,be s?ap-- ? ported 'rather than dismembered. The final 'decision will rest with Reagan's-newly-chosen director of central intelligence, William Casey, and those who know him best do not believe, that he intends to pre- side over the dismantlement of the agency he ha i just been appointed, to head. ee cr. '? e, ? "Casey is enOugh of an old Wash- ington. hand to. recognize the. wis- dom of former CIA Director Rich- ard Helms' advice:"To separate the president's principal intelligence adviser from his control of CIA is like removing the head from the' 'body. A disembodied intelligence adviser cannot compete with the other claimants for the president's time and attention' - Another stabilizing factor is the recent selection by Sen. Barry Gold- water of an experienced intelli- gence veteran; John Blake, to be- come staff director of the Senate; intelligence committee. With yearsT of service in, some of the-CIA's topi jobs, Blake is likely to look with al skeptical eye on draStic reorganiza- tion schemes which are partly moti- vated by the personal ambition of, those who aspire to head the newlye created components., Meanwhile, profesSional officers ? at CIA's Langley headquarters are! waiting in some suspense for thel outcome. They are encouraged by signs of wider, public support and .understanding of their work and hope that Casey will "supply the cone tinuity of competent civilian leader-- ship that:has so long been lacking. Approved For Release 2001/03/06 : CIA-RDP91-00901R000500010002-3 ? 7/ For Release 2o,nomo 1,c4A-Rop9vp,Ftpoo5 25 -DECENEI ER 1980 -ESSAY ---- . ? .WASHINGTON. Dec: 24 Twice in recent weeks, a group Of people have stumbled:. onstage at transition head- quarter awkward:. defensive. blinking ....in the Unaccustomed lime: lighe?. and lined up to face a flock of witnesses and potential accusers..; half-expected one member of the audience to leap to his feet and shout at one uteri in the lineup: "That's him! There he iik:That's the one who prom- ised me a rose garden!" s ,The .dreary; frayed-edge introduc: tiorf?of the Reagan Cabinet I'm the, new Secretary of Whatever; and I". can't-ansWer any questions yet" is pari?OtIlie incoming Administration's post-election slump, -At,,:first;,:the Cabinet-in-formation Was presented the way a tie salesman selIs-tfesr."You like this one? How about this instead?" The Washington landscape was _littered with deflated trial balloons. -? '-??? -1-3??5!-"? ' ? Later, the transcontinental distance between the President-elect 'and _the men and aVOMan finally selected left- the Impression that Mr. Reagan was - at the receiving 'end of the decisioa- making Process. - -- .In the end:when the lineup managed tO.lurch onstage, no rhyme or reason. accompanied their introduction. Nei- ther the foreign-defense group nor the ? - economic-issues grtnip presented any thematiO,sapproach?lAs crowds of transitioneers bumped into appointees at the stationhOuse? the elected leader:. ? seemed to .be off on some diStant trol CanSt, where are you? : thIS".rate? both Reagan's tired days'..J'; anti his honeymcion ire in: danger of being over by Inauguration Day, a modern. record. That's unfair,. of mode; by failing to act as mas- - ter of his own ceremonies. Mr.. Reagan invites others to search his selections, for a Sense of purpose Atpgterise; Cap Weinberger is a su-- perb choice. If defense budgets are to be increased dramatically, who is bet- ter at Defense than an experienced cost-cutter? Weinberger has both a sense of proportion and a- sense of humor, and nobody will be closer to President Reagan. His infighting skills were shown in Weinberger's first bureaucratic test: he rejected hard- liner William Van Cleave as Deputy Secretary in favor of depnty C.I.A. chief Frank Carlucci, to the dismay of the "Madison Group." which_ pre-., ferred cleavage. . ' At State, Al Haig is a question mark. ? Seeking Democratic help.in his Senate cOnfirmation, _Haig reached first for..,. lawyerliewton Minow, Shen hired his - Johnson Administration sponsor, Joe Califano; seeking to please the Kissin- ger faction and diplomatic establish.: ment,.,Haig abruptly dismissed the right-wing transitionaries who were. worrying the striped-pants set. All his. attention now is focused on the left, but . his long-range battle will be with the haWks._(For his deputy. Haig seeks to circumvent Richard Stone, Fred- Ikle and Laurence Silberman with a dark- . horse Californian beholden only to- At Treasury,, Donald Regan was chosen ,beause he is neither Alan Greenspan (resented by the supply- side Sirrionites) nor William Simon - (resisted by the traditional Green-- spar-tics). He is a fine manager who ' may not realize that he is backing into a philosophical, buzz saw. We will be betterserved by Reagan's Regan than Regan's Reagan. . _ At .Justice, the_ choice of Mr. Rea..., gan's personal lawyer was a mistake, William French Smith would have been a perfectly good White House counsel,., but .the Attorney General should be, .neither. the President's brother nor his buddy nor his cam- paign manager nor his former lawyer. Justice has been profoundly politicized in the past four years; we shall see if ? the job of chief of the Criminal Divi- sion goes to someone who ? combines prosecutorial zeal with judicial tern- ; peratrient, or to Robert Blakey.- Tb" Commerce, Malcolm Baldrige: brings the experience of running a ? tight Ship at' Scovill Manufacturing; his sister, Tish? is editor of Amy Van-.." derbilt's "Book of Etiquette," so we can expect the Reagan Cabinet to use .44, A 15416 VOL IL]. , ' 8.5 Djuctor of Central intelli ence, William Casey- is a natural ? World War II master spy, international law.. yer, refugee advocate. economic statesman. By treating this atnnint- menu as of Cabinet rank, Reagan sends a clear signal that the C.I.A. can stop feeling guilty and start getting results. Skipping over most of the others, as Reagan probably will, we come to the most inspired appointment: Jeate Kirkpatrick as ambassador to the United .Nations. Intellectual, articu- late, forceful,:this Jackson Democrat Will sweep away the guilt-ridden pre- tensions oftliAndy Youngs and bring back memories of Pat Moynihan. With rank, she will have direct ac- cess to the President if the Secretary - of state wavers on policy. At the Coal i... don for a Democratic Majority; hers. was the ?trongest voice for support of _ Israel; America will, not soon. again . be embarrassed by the spiteful anti- Israel vote cast by Mr. Carter's man last week.-- A good bunch,. by and large, biai-:. stered by Richard Allen and Martin Anderson within the White -House? certainly a big improvement over the crew sinking from 'view. The pity .is that the "team" has not been pre-- . sented as a team; the fault for that lies with the man who may.have chosen his- Cabinet, but failed to give meaning to. his choices. Approved For Release 2001103/06 : CIA-RDP91-00901R000500010002-3 Approved For ReleasEatinAtiWTAllikibl5bl0901R00135 25 DECEMBER 19 0 STATI NTL --"'"???? idward J. Walsh /Probes By Congress Cause jL imping Of U.S. Intelligence i President-elect Reagan': Hughes-Ryan locked the nomination of William Case President into a cumbersome , for the critical Cabinet job oi and potentially embarrassing ( Director of Central Intellig? reporting procedure, and ence looks like a good one. brought clumsily into the pub- Mr. Casey served as chief of lic eye the heretofore unspo- ken recognition that the CIA did, indeed, engage in "covert activities." The effect was the almost total abandonment of such operations, with the fo- reseeable adverse impact on intelligence gathering. Shortly after the passage of Hughes-Ryan, both the U.S. Senate and the House of Rep- resentatives established Se- lect Committees to investi- gate the CIA. These were the Church and PikeCommittees, named after their chairmen Intelligence for Europe in the no-nonsense Office of Strateg- ic Services during World War II. It's a safe guess that he By EDWARD WALSH knows how to gather intellig- ence. It is no secret that Ameri- can intelligence capability has deteriorated in recent years, and doubts have already been expressed about Mr. Casey's ability to "reform" and "re- build" the here is cer- tainly plentte4eliebuilding to I do. But efforts at reform have been going on for ten years, Iand we have seen them go too , far. In November, 1978, Presi- dent Carter complained that 1, he had been poorly served by ! the CIA's reporting on the Iranian revolution. But rather than blame the Agency, he should have pointed the finger ; at Congress; that is where the I responsibility for the feeble- ness of our current foreign in- i ? telligence- operation lies. In 1974, in response to evi- dence of abuses of the civil rights of Americans by intel- ligence bodies 'during the Vietnam protest era, Con- gress passed the Hughes-Ryan Act, the first in a series of bills that had the effect of crippling the nation's intellig- ence agencies. Hughes-Ryan amounted to a cutoff of funds for any CIA activities other than information collection, unless the President approved such activities and described them. to Coogress., - Sen. Frank Church and Rep. Otis Pike, who hunted wrong- doing by; the Agency with vengeance. They found very little. In June 1978, the Foreign Intelligence Surveillance Act became law. It created nearly insurmountable obstacles to surveillance of foreign visi- tors to the U.S. The Associa- tion of Former Intelligence Officers (ALIO), a dedicated group of men who understand the meaning, and the need for covert activities, testified that the Act would hamstring the intelligence agencies' abil- ity to watch subversives and spies. But the Act still stands. Today, the Senate stands at the brink of approving a 3road charter for intelligence gathering; the bill, S.2525 would set up detailed over- sight and disclosure rules for the CIA. The President would be required to reveal to Con- gress every minuscule detail of routine intelligence opera- tions. Permanent Committees on Intelligence in both Houses of Congress are already in place for that purpose. The direction of bot i Intel- ligence Committees has been that charted by the opponents of clandestine operations who first steered the Crch and Pike Committees. The fous has been on Congressional e v- ersight and debatable viola- tions of the civil rights of rad- icals, rather than intelligence- finding and combating the pervasive Soviet intelligence apparatus in this country. This is the tide that the new Director of Central Intellig- ence must swim against. The American intelligence agen- cies have been hobbled by nearly a decade of anti-intel- ligence posturing in Congress and the American press. In the silent war with the KGB, they are still limping. Approved For Release 2001/03/06 : CIA-RDP91-00901R000500010002-3 .A?rrAigprOVe421,-For Release 2001[03/0,6 ? 9IA-R,DP,91-00901R 1, ON PAG 1 / TE1: 25 December 1980 Mira .4":"."4":???M'A. .7, ? 1 ? By Jeremiah swir l'.7iS?..expected to. be-.riaMed deputy di- rector- of;: the. Central J.ntelligence President-elect Ronald ',.Reagan, according to well-informed::: :sOurces, in.the transition. process:: 49:?YearOld:naValbfficer has beert director of thesuper-secret ,f4ioaal.-Security :Agency at Fort sinae, 1977_. Transition 71-..sources- said Inman .was at the top:: 43f the list for taking over as deputy. director-designate' William - Casey because Inman s talents would ? complement thoseof the_.67-year-old ..,2,Casey:qs . --;irespected political . strategist who took Over as Peak-an's campaign inianager. .on . the eve L_the New Hampshire Primary and had ''?'.?:4--lidesSfni career as an OSS oper?. -ator durin.g World Warl.t. But Casey -:- is",:Said;_even by ,his friends, to be somewhat disorganized when it - comes to details, occasionally forget-: and out of touch with modern:, intelligence techniques.. Jn -Addition, the _CIA -tradition is': that when the directorof the agency is,. a civilian, the deputy's Spot goes to a miliMry.man, Outgoing director Stansfid Turner is a Navy admiral..::_ his 4eparring deputy; Frank Car- lucci, is ? i'i.-1?-;i:!?:".-Th Re gan-talent.hunters have,been looking , for someone '.orga:-:".,'? nited and current . . IllSTATI NTL 'ir-esent-day'intelIigenteCiaft'and technology- ; _install as Deputy CIA Director Under Casey. While 'Inman's' nomination- is not final, several sources. Consider him to be a rtinaway leader for the pdst: Inman a native of Rhonesboro, Texas, entered the Navy after graduation'. from: the University . of Texas iia 15O Although not a graduate Of the Naval Academy; he did' graduate from the' presti- ? gious National War College here in the 1972 cls.; He became .' an ensign in 1.952 and. Advanced, through all the officer ranks until his promotion' .--to- Vice, Admiral. in 1976:" In, his career, Inman has served as assistant naval attache in Stockholm,' ;Svieden a:key listening post for events ,in the Soviet Union He also ' was assistant chief of staff: for intelligence Under the commander of the Pal- civic Fleet-frbrn 1973 and 1974-.- For the following two years, Inman was director rOf the Office ?Naval Intelligence in Washington. 'Hewes vice director Of the Defense Intelligence 'Agency -,frO.rii '1976, to 1977 when he was named. head of the NSA L= ' The National jSecurity 'Agency'. has the task of Ifstenini,iteeIectrOnically on all world comrnii=1. "pications' 'pria has the' Major role in U.S. efforts', '2W break other nations'codes-" Approved For Release 2001/03/06 : CIA-RDP91-00901R000500010002-3 ...I Approved For Release 200111/03q06IMIJAKRDR91413901R0005 24 December 1980 Toothless CIA may regain its once powerful bite . By EbWARD 1.WALSH T.United States indiistrial Council r President-elect Reagan's nomina- tion of William Casey for the criti- cial Cabinetejob of Director of Central Intelligence looks like a good one. Mr. Casey served as chief of intelligence for Europe in the no-nonsense Office-of Strategic Services during World War IT. It's a safe guess that he knows how to gather intelligence. - It is no secret that American intelli- gence capability has deteriorated in re- cent years, and doubts have already been expressed about Mr. Casey's abil- ity to "reform", and "rebuild" the CIA. There is certainly plenty of rebuilding to do. But efforts at reform have been going on for 10 years, and we have seen them go too far. - - In November, 1978, President Carter complained that he had been poorly served by the CIA's reporting on the Iranian revolution. ?But rather than blame the agency, he should have pointed the finger at Congress: that is where the msDoiisibility for the feeble- ness of our current foreign intelligence operation by intelligence bodies during the Viet- nam protest era, Congress passed the ? Hughes-Ryan Act, the first in a series of bills that had the effect of crippling the nation's - intelligence -agencies. Hughes-Ryan amounted to n cutoff of funds for any CIA activities other than information collection, unless the pres- ident approved such activities and de- scribed them to Congress. Hughes-Ryan locked the president into a cumbersome and potentially em- barrassing reporting procedure, and brought clumsily into the public eye ? the heretofore unspoken recognition that the CIA did, indeed, engage in? '"covert activites." The effect was the almost total abandonment of such oper- ations, with the foreseeably adverse impact on intelligence gathering. ' ' The focus has been on Congressional oversight and debatable violations of the civil rights of radicals., rather than intelligence-finding and combating the. pervasive Soviet intelligence apparatus I in this country. This is the tide that the!; new Director of Central Intelligence; must swim against. The American in.' telligence agencies have been hobbled by nearly a decade of anti-intelligenc posturing in Congress and the Amer In 1974, in _response to evidence of can press. In the silent war with th abuses Of the civil rights ofAmericans KGB, they are still limping. STATI NTL Approved For Release 2001/03/06 : CIA-RDP91-00901R000500010002-3 STATINTL - Approved For Release 2001/03/06 : CIA-RDP91-00901R000 A:IT/Cr:2. l'AOZ ft???,..40.,...V.-/N7.16,?. Waste.of PHILADELPHIA INQUIRER 23 DECEMBER 1980 .4o..**10440, 1Bypattieler,Buthenan. 45 reisey , .....,, the ,..... ......- - t relatiVe Inerits:',Orthel - Mcisr.?,importantqhe'r-Americanl T cruise _missile over the Pershin , or 1 . people-didnot vote that cabinet l=r-',WASHINGTOlit:Thiklatalilatir ..: a u e tug m e o t e . St. , they did not vote for committee deci4 31, 1981.. After ,'?0 bruising confirtrie .. what -.value the reflections. of the HSion:Therdid not in Hodding Car-I tioniSeCietark-of State Al HaiePre-: seeretary:Ot, Energy; on whether or .,..,,?ter's: words, ,"buy .a,'-.Pig ;in a poke."i :Occupied Witltrthelatest:Warnings,o1 1 ? Soviet:iinterlientien in -POlank,ar-- r: het to extend the .yating, Rights, Act ',...:-.They -Chose a politicaLfigure with al ifvo_at. his first fiest.m.deiiiiipt th-evsu,:,7:p11965?_ ? z? ,.: ,,_ .,,,,..k.;- :-...;:, ? ; , .':' ?-:;:,;;PbilosoPhY;.aS ;fatnilier:, as that: Of. ,..4:7-...c. Conc,ededly, PreSideni-Reagan 'lies _ Barry Goldwater the leading chain-. , per Cabinet.7411i.4.,,t,:,,,t,-,:w,;;;Tii.,,.'4.4---. ,i,,y..-?, w on the; right to sinieture his cabi- , 4- piopf. the copse' rvative movement . ? -Snbieetbf dinvefiatibiii.einlikAal''.;net'as? he_deemS fit Eftit-'SUrely the; , for a dozen years; who upon the .by Office Of Minagerneht and Budget: " lessons of the recent should. not' ...most conserve t ive.,platform in ':the , ? , . . . 1,11 2 II - II 11 ,Director DaVWA. Stockman. for a reduction.in;ZiiiilaYs?fot food stamps in fiscal year.1981. 7 be altogether fgnored.7::..1,5 ?- jifetime of mostAmericans. Since Richard Nixon; every presi-, A:managerial class, seated in -a dent has talked about ?."cabinet goy- ; Super Cabinet whichdoes not share ZReadinCover'..the.positionipaper ernment'.! to the cheers of the na- the no pale pastels!! philosophy of -,and,tbackulp:' statistics Haig's eyes tional press And each president has.. ? Ronald Reagan; will bend before the -glaze,!.overjrtHerises;`,-;politeryt;.an- ?found himself holding fewer cabinet . :prevailing winds. And the prevailing meetings. The reason: The cabinet winds in Washington, approaching cannot be -a policy-making body be- gale force, are from the Northeast - cause the secretary of Housing and Pundits and pollsters, -sifting the. Urban Development has no need_to returns, are discovering that ? lo. know' how Many divisicinS the Krem: i:-.7and behold! there was-no"conser-1 yative mandate."--in 19..80:?-. Actually; lin,has,.:while the secretary, of State- has no need to know;?within five .;_says pr. George; Gallup on social lion, how -many dollars ..HUD will. Tissues -like 'ERA and Right to Life' . ? . _spend this fiscal yeart.;-- . :1?Instead pf resolving the old prob- lem of -conflict- between the cabinet . ri ounces van.inportant ; meeting 4 at . :State7over the siniation iniEsstEii.:. 'rope,: and-laeads. off to do wharhe ought tor be doing. Which is not?drgu-.' ingt abatit?.r71ood,.. stamps, .:,,welfarei. forcedbusingKemp-Roth or Conrail. ? AS envisioned, the Super Cabinet is to consist of...the secretaries of State, Defense, Treastiry,?the attortergen-? eral and perhaps one 'other :cabinet officer. lt, would bathe. highest poli,;'' cY-making bodyi:in_the government:, and White House staff (Which arises for him- that it was -a rejection of . it would discuss, as a group, all issues . from personalities and -.Policy, . not: Jimmy Carter"; 7.7. -. '-- ?.? . , .....; inducting those outside the juris-: structure), the Super -Cabinet will ' '' So, Ronald Reagannis-being deluged ' iliCtion of the cabinet OffiCerS-thein-:: , compound it There Will, be an extra , -,I.Rith cOunsel, from, within and with selves ';'?'''?`:.V,4,i,:::::-.4.1:;;A-::,!:?..,,,,, - ?.,. :layer of bureaucracy betWeen. the out his- inner nirCie, from those who The Supeetabiriet . idea is not ,a ? 'secretaries , of the 'social departsoeletOppOsed,hiirc,.and some who supPort-. ,. . . ..., - - .super idea t- la ai birnimeit- it will. ments"- SHIM, Education Health and ',...`, ed him. to move gingerly-on tax cuts, - 'come a cropper. andsost President -Mimi Se-tViCeS. etc.) ,and the PresiZ . to make Modest increases in defense ' 'Ronald '-Reagan.. precious months -dent We will have .a new elite and _but, above all to avoid unnecessary : before itctilIapseS..,?%r.,-: ,,'244.ic3:;-? ;1!..i::L new frictions inside- :?? the-'. cabinet :-.Controversy ? by shelving the entire ....., For it LS:a:waste or the'fimd of the- And while the seating 'arrangement , social agenda in the platform on 4,-- - -" - ? ? - ? " .. _ . , secretary.of State and the directoror at the cabinet table already suggests ''?which he campaigned.?:",7 :?:. s--- ..-: -: : - the CIA to be studying up at night on :a ;ipecking order, we win: now havel ? If the 'president-elect- 'cides ? follow the "social issuia=.'it isa waste of the -first-class cabinet officers and steer.; that path, he will win six months of - time of Attorner General William ...ageclass. ,,;- ?-? ,..:::,!-, :?,',.i.; ..... ,,.. ,..;..j 'indulgent press ---, and 18 months- 1- tary Carterization. Prencli-Smith and -Treasury- Secre4'f from nbvi he will be on the road to -', - ' .._ .._ ??,-"?'''' - ?-'' -.., '''' ISonald - Regan = to -, be- arguing ??.,..-... ? , , ..-:,-,,,?..........:-...._. , ..?,-.....,J. .4&_Haig 'or.CIA Director Bill- most-AmericanS disagree with Rea- gan: Actually; adds the good doctor, Reagan's victory was less.a mandate Approved For Release 2001/03/06 : CIA-RDP91-00901R00-0500010002-3 iirTICLZ ON A' TIME Release 2001103/016eDIALIRDP91-560-11NolX) a Appointees to the Cabinet Casey, Stockman, Lewis, Schweiker, Baldrige, Smith, Weinberger and Began Approved For Release 2001/03/06 : CIA-RDP91-00901R000500010002-3 EIRACK-B, ACK STAR Approved For Release 2001/03/06 : CIA-R6116F-001R000 _ . SOURCES close to Presi- dent-elect Reagan say that? he is Rrivately deter- LONDON DAILY 1.1.ELEGRAPH 22 DECW3ER 1 980 THE. INTELLIGENCE WAR ? --mined to give the fullest 1.2.4_ . TEA G a ly _ t 1. . t . ._._.. . ---,, _ 11 . z - I' f ,,i _ . ... .. .r= poszible. American' support ! to _ groups .opposing the ' ----------------- -- -,?preserit reg!mes ..in, Cuba ? .. C ? _ .., a Lib which b .-and Libya,. wc are both! - . .. . _,..6 .,-?,.. providing ,surrogate forces -.;:.:for the Soviet *Union. ?-??'.?'. ?"?Libv-ari troops and tarii:s .h?ave.. A TV -.-?,--just ena bled -Chad's President By ROBERT illOSS ?, C.,otils-burii.-.Qaedde.ai. to. estab- In. the :caSe ' of:tuba, , the -pros- Auclropov.-1 the Chairman of - -:--11:;11 his: suPrernacr'in 'a' civil -. pects? for an 'effective- covert the. KGB,, r,lr.. Boris Pono- ''' ' war' ag.atinst: the I-alto-liars' .of .?.,action, programme. -to reduce. -marev,-the bead. of the inter-: !' the -former, Defence 'Minister. .Th-. Ca.:-.4,E?O'S ? , -appetite ? for . national Department of the . . . - - Soviet- .Commonist :party's., - ?- .: major. intereq. to l'..ibya'S dic- . ;, lighted by evidence_ of :recent -Central' Committee, and i'lr ; r- ''ta tor,- Col. Gaddati,7bec-ruse of -,, successes. bY. _the:. anti-Srp,iet. ..Mikhail -- StrSloy. : the - Polit- Hissene? a-adjs.:of- foreign. wars have been high- whi?ch _Ilaita..guerrillas in Angola_ : ? ? hopes .,triercrAoit.'-in his 'Western Military observers con- ' efforts tor acquire, *nuclear firm that, with the help of -weapons: '''? '? ? ? . three- newly-acqiiired Sam 7 Unita forces have' shot down ? 'tut ' Chad may -also , e . !hone in, a, broader strat2gy. . two Soviet jets:_that v?ere, *_'.? Senegal's 'President ' Senghor ,'. heing Used'. to . b?orr!h -.: arid has warned 'that Cnts GadItfi.. '. . ,strafe; civilian .,villa:_4es. -f, . ? , '-, Ii -pto '12Fa ' a., specially- : ,I.:7-:'":...:' '-- ?r?- trained (and' Soviet?arrned) ..,-,;; Russians captured 1-`'-force -or 5,000 men to set ?up " ' --...? _ - ? ' ' i . . ? ..... . - an "Is1arnic, Repubiic cf the , Unita has also- captured tw4 , Sahara:: under-, his control: -' ituians, a 'dig pilot and an' '.this puppet. 'republi-c would ---air-force- engineer.-who may embrace_ area-S?of. Chad, Mali, - be able-to provide first-hand-- ? -.Ni,..,e- and ql."...IFt. -. . - - ' : testimony - to ...Abe role that Egvot's President Sadat .seeS-a' : Soviet- person-tel are playing ; 'threat of:..Lib..1-..an -and..-5.3oviet --in-the- repression of -black - . . Africans. . _. ? .: ?subversion, ,.-ia Chad, pgaiust .I.Sud;a. ori :his southern bOr- ,... : C'e.r: This would be t'...-.e. latest move. hi' coy Gaddafi's long- 'iitia-g carri?Pitgn to cuist MI- - Sathzt. in. the,cnurs'e of,ultich aen of .":the" Libyan secret service : have:: been ?sent.i.to 7- fo orchestrate. a ssaasio- -ation,attern?ts?tt,s,,..,-.-.:!147;77-I ? :?????: ? ?? Libyan success:- - tLibyi's- coup in Chad could -?-? easily,: have.. averted, according Western .mili- ^ tary. analysts,. h-ad .th-e French -.prepared to-play an, T', active role."Butt:President ;_.? ..Gi.scard _d'Estaing reportedly.' L,rejected the ..advi?of.:_his ? ,sen-ior intelligence.adVisers.to French...planes.-to:,strafe ? ? - .--^ -the,Libyari. columns. ?. Now-7 the- most 'effective ? re- sponse Gaddah's foreign.- adventures - may.- be -.Irv- direct . support, for-, -the elements ? inside.. -Libya who are .opoosed to his-regime, reliably reported that the r Carter Administration inter- -. Yelled during El 'previotti crisis to- prevent Mr . Sadat- from ? moving against' Libya; the '..':?Tteagan Administration, in a " ':dramatic change of :rolicy, is 'likely to. work-in close con- ,...cert with the Egyptians to end. Cal. Gaddares career as ,buros -top Ideologist, are ail said to have -counselled against military action..-(This despite-Lor ' perhaps -because. of ? the 'tact' -that Gen.. ,' ,Andropov' then- -Ambassador In: Budapest, was. the main organiser of the suppression. of the Hungarian uprising in' 1956.) ? " DiviSions _in ?MosCow. and the. prevailing uncertainty over ,Presic:ent. .Brezhnev's. health .and the shape_ of the. sur: .cessior; tri 'him-improve -the' .prospect? for a strategy of' 'land .. the "Reagan "Adaiinistration. Another' aiajor ,hcatre for this If Unita ?vere.to be re-equipperl_ strateey -will' be Central- with, say .309-..lteat-seelsing ?AnIerica: -In Nicaragua. . . missiles and.' modern ?anti- -Sandinista- dead.ership--whi:h -- .is -now,. supplying:.revolutioa-. ary? "'volunteers " _ for -Angola -alienated- -much' of its .-earl.v.- nioi,erate'-support, and :some ..analysts -believe 'that 'it- .coolo ...be.??overthrown .by -a - Coalition -of- ? centrist forces,-.. given-Sairpr6pionritn7.1theofcan', ACmaretreir Admiiihstration s poliey has: been. to .endorse, and finance' the:present: Marxist -:regime_ .- ? . Some: of. Mr Reagan's advisers on --Latin America _are sug-?- :?????gesting -that- he should- statement (perhaps:. a -`qleclaration of Miami," he; cause of the, large Cuban emigr'e. community there) dc- -' fining' - Washington's ..refusal to: tolerate .Soviet -Bloc acti- :vities? 'in the -Central Amen- region? a'.? sort ? ??...updated Monroe.Doctrine.?-_, ? ?,.? ? ? -? -- ? ? ? ? - :St-mdis. - face erswn soviet .tlebat6 ?" ? ' . EP" - D -? e . ? For the -moment,.the Soviet' .OV Iran-Ii'art -.leadership ? appears...- to be locked in the -sante .kind of.. ? _-'.1.hib war b `tiestage:problerri -in?Teherart," ceded the invsn-of ore-. evidence has- come -to- internal. -.debate ,,-'that'pre- light of Soviet-backed: efforts aio ?C?zer.hre " ? ccording to Western intel- ligence' co-operation '. between the Iraoian and --Syrian secret .;er-vires has re- suited in important ?- ex- !.,:Changes. of irformation coa- . ;corning .Saudi Arabia ? The ? Syrian secrq.? service have -,'close - liaison. .qith the KG-13 and the GB if; and Syrian k.F.icers- are sent ''to Russia fru training: One Source - reporrs ' that ? in a. recent"Meetin'4- between? the ----head'of-Syritai_Air Force in- ???-- telligence.,. Cen. iquhararnad -z anq ? the Iranian '.,----secret 7 service. - "-Gen, ...Hussein (Formerly? :.:.7employed - by the Shah); the .2 -Syrian r?oCia- claimed that the Badana air base north-easte.rn 15 7being used by Soviet Moe i - transport ---,cii craft ferrying ..militart, supplies to Iraq:and . ;Altar. the. Saudis .were... using their iauenc- . to encourage ? ? Kuwait and tiu.,7 Gulf emirates suoport -the-. Trams._ Such : reports 'could help- to prod the- :Teheran re virile:, into - direct - -action against -,the 2 Th tt Dernurr?Itic Front for the -1,1he.ratiori of Palestine (DF I, Pi, an ,,perrly Marxist- 'Leninist- erouo within 'the ?': P L 0, that to 4:es no -secret - OF its. pro-Sovi.q loyaltie3. ha: bei-m. ? distribtoing anti-Saudi propaganda materials. ? - tank weapons,' the 'chances of " ...inflicting a serious bunmili- -: ation on the Cuban:garrisons ? an' Angola mould be greatly. .' ? -increased...'-? Mr' "Reagan's .foreign . policy adviers. believe' that, the pre- .. sentc, world climate presents, remarkable- opportunities for _ . ...curbing the process 61- Soviet', expansion-:that was .to .gd unresisted :--by 'the, YCacter...Administration. Whit - the .? occupation of. ? Afghanistan .:- lost 'Alescow. - , friends-in the._ Islamic world, . the,workers' revolt- in Poland' has 7' :exhibited the,- vuluer-. ability--and- fragility- of the .:Soviet empire in -the face of internal pressures.? If the Bussians-invade Polann,' -'they-- will lose allies and ? sympathisers throughout the world; 'and deal a death-blow the :myth Of Eurocom- Tmunism." in the run-up to the . next French': elections..-- ? are ,slovakia in 0963, when' such ?. ? tos. destabilise. the monarch L y --it:taker._ A _ct _2 ? inte ational- tro pi le- JoriReittigt -2001/03/06 . . p 90'11M:1005 ? . . . , At- a recent co ? terenre of the Association Arab-Amen- cart Graduate., in the United . States.- . for example. the .'DF LB stall was distributing a series .of namph!ets pro- -. deceit- lw Sou' al-Taliah (PO Box '27530. :,an Francisco, Calif_ 94127). A represents- . tive booklet. entitled,'" Poii- ticat.' Opposition . in, Saudi rtu?de a -direct appeal.to..Saudi military per- , sonnet to rise up against-the regime., '.The Saudi Armed Forces: the anonymoos-- aathors of; this- publication 't ote, : are. , the- only...institictimis in the- coun- try .possessing' the .,actual means. of ,revolutionary .-.Change: Sao propaganda. activities-, are significant, be: cause.the.v-?rellect an- effort to. -Indoctrinate Saudi . officer- - cadets who -ace-sent--to the United-States for - 3?The _rnost___:exotie--case--in-- . volves the.recent stepping-up --;.-of official Soviet interests in ? the culture and- traditions of the_Uighurpeople, -who -live not only in Soviet Central Asia and Chios but in tight- knit comtnunities :in' Saudi Arabia too, where many have made careers in the Armed Forces and th, civil adminis- tration_ ? . oolooRiorttm AppEovictql5pf,Release gopigmq :AkftRiegir-oo90 22 December 1980 STATI NTL The President-elect is fleshing out the top echelon of his administration mostly with hardheaded moderates. Their double task: Tackling the country's problems and breathing life back into a weakened institution?the cabinet. ? For director of the Central Intelli- genceAgency, William Casey, 67, Rea- gan's campaign manager and a former chairman of the Securities and Ex- change Commission. Company men. Regan, Baldrige and other Washington newcomers were chosen for the cabinet because the Pres- ident-,elect pledged during his cam- paign to bring into government people? who have excelled in private industry. But the new men are not expected to have as much influence on the Presi- dent as his old friends, Smith and Casey. William Casey CIA Approved For Release 2001/03/06 : CIA-RDP91-00901R000500010002-3 STATINTL kRApproved Fel- Releaseti?pyRof -00901ROCIMMI o 22 December 1980 New Boss and New Future for CIA It will be up to William Casey, one of Ronald Reagan's most trusted advisers, to heal a Central Intelligence Agency battered by six years of scandals, con- gressional probes and internal turmoil. The 67-year-old Casey, a New York lawyer and self-made millionaire who served as the President-elect's cam- paign manager, is no stranger to the world of intelligence. During World War II, he served as chief of secret in- telligence for Europe in the Office of Strategic Services, the forerunner of the CIA. Named to the post of CIA director on December 11, subject to confirma- tion by the Senate, Casey will take charge on a tide of congressional and popular support for a stronger intelli- gence arm?a sentiment reflected in new legislation relaxing restrictions that have virtually precluded the agen- cy from covert actions. Reagan's advisers are urging revival of the CIA's capacity to conduct secret operations as a means of countering So- viet expansionism. Casey likely will give that task a top priority. Some observers predict that Casey will find his No. 1 problem involves not clandestine operations but the CIA's gathering and analysis of information. That weakness showed up in failures to anticipate such crises as the fall of the Shah of Iran to an anti-American Islam- ic regime and Iraq's attack on Iran. So distressed was President Carter with failures of intelligence assessment that he sent a rare handwritten note of complaint to Stansfielcl Turner, the An- napolis classmate he chose to run the agency. CIA's Casey: "A man of action." The CIA's staff of roughly 15,000 is reserving judgment on Casey. But many welcome Turner's departure, claiming that he compounded demor- alization with impersonal management methods and suspicion of clandestine operatives. Casey gained a reputation for being forceful and intelligent while handling such government positions as chairman of the Securities and Exchange Com- mission and as Richard Nixon's presi- dent of the Export-Import Bank. Yet some associates question wheth- er the new CIA chief has an adminis- trator's temperament. As one intimate put it: "Bill Casey is a complex guy, a man of action. But he's not a bureau- crat. He likes to do things himself." El Approved For Release 2001/03/06 : CIA-RDP91-00901R000500010002-3 ARTICLE AiriaLM oii rApproetalcLEor Release 2001/0 An Idea Man For CIA Who has no time for detail A s a young spymaster for the U.S. in Pat World War II, he wore Navy blues that were usually spotted with crumbs, peanut butter and cigarette ashes. But be- hind that disheveled appearance lay a keen and free-wheeling mind that, by war's end, enabled him to put together a network of 150 agents in Nazi Germany. Now, after a highly successful career as tax lawyer, businessman and Government official, William Joseph Casey, 67, still looking rumpled in the best-quality dark blue suit, is returning to his first profes- sion, as director of Central Intelligence. Casey displayed so much energy as a child in New York City's Borough of Queens that playmates nicknamed him Cyclone. A 1934 graduate of Fordhani University, he studied law at St. John's University at night while working as a city home-relief investigator during the day. After the war, he set out to make his fortune by practicing law for a New York firm and by writing a series of how-to books for fellow strivers (sample title: How to Raise Money to Make Money). Though he refers to himself in his still pronounced New York accent as a "card- carrying Republican," Casey counts among his friends Liberal Democratic Historian Arthur Schlesinger Jr., who says of the CIA nominee, "He has firm views and judgments, but his mind is not closed." Casey ran for Congress j from Long Island in 1966, but he lost in the primary.1 STATINT4.001M 'Alltilkfr 1-00901 For Intelligence: William Joseph Casey He ended up in Washington anyway, in 1969, when Richard Nixon appointed him to the advisory council of the Arms Control and Disarmament Agency. In 1971 Casey became chairman of the Se- curities and Exchange Commission. Dur- ing his 21-month tenure, Casey won high marks for simplifying the regulations on issuing and trading stocks; at the same time, he developed a reputation for being a blunt-talking, decisive manager. Friends recall that when Casey arrived in Washington with his wife Sophia and daughter Bernadette, he offered to buy a Massachusetts Avenue mansion from the widow of Chicago Tribune Publisher Rob- ert ?McCormick. Upon learning that the Japanese embassy had offered more mon- ey, he quickly made a yet higher bid and sealed the deal_ When the flustered Mrs. McCormick asked what she should tell the Japanese, Casey tersely replied: "Tell them to remember Pearl Harbor." Casey became Under Secretary of State for Economic Affairs in 1973 and then served as president of the Export- Import Bank from 1974 to 1976, when he joined former Secretary of State William Rogers' New York law firm, Rogers & Wells. Casey barely knew Reagan when he was hired last February to straighten out the campaign organization. Though some staffers criticized Ca- sey for being disorganized and poorly versed in modern political techniques, such as television advertising and polling, admirers credit him with tightening the campaign's budget and making up for his shortcomings by surrounding himself with seasoned noli tical professionals. As even his friends admit, Casey is not very good on specifics. -He a great idea man," says one of them. "He can get people stat led, but then he loses interest. He's no man for detail." Casey has so far deelined to talk about what he plans to do as CIA director ex- cept to say: "The U.S. has had the finest information-gathering analytical and scholarly organization, in the world of this kind. I would hope to maintain it and strengthen it." But he has refused to talk about what CIA weak spots he might at- tack and has not yet read the Reagan transition task force's report that recom- mends an increase in covert CIA opera- tions and the creation of a central rec- ords system shared by the CL. and domestic law-enforcement agencies. Most career-agenc officials welcome the appointment of the OSS veteran?as long as he selects a capable deputy to take care of the details that he prefers to shun. But first Casey must survive a tough grill- ing by Senators on accusations of miscon- duct as SEC chief, including an old charge that he tried to thwart an SFC inquiry of Fugitive Financier Robert Vesco in 1972. Casey. with typical bluntness, professes no concern. Says the CI k nominee: -I've ' been confirmed by the U.S. Senate four - times. I don't think there's any question I'll be confirmed again." Approved For Release 2001/03/06 : CIA-RDP91-00901R000500010002-3 AV!". 9,,YiRd 011 lease 2001EM OWNKCIA-RDP91-0 - 22 December 1980 STATI NTL eagan's G od, Gray Cabinet Like the supporting players in a town pageant, the first eight members of Ronald Reagan's government-in-the-mak- j ing filed onstage in a gilded Washington hotel ballroom last week and?in the awk- ward absence o f the star?introduced them- selves to America. They were cast to fit Reagan's vision of himself as chairman and the Cabinet as his board of directors, and, at anti-climactic first glance, they looked the part They were light on box office and heavy with gray hair, sober suiting, Ivy League diplomas, corporate pedigrees and traditionalist Republican views. "Not much there," shrugged a senior Reagan adviser involved in assembling them?not much, that is, except a shared habit of suc- cess and a common bent for solving prob- lems as against enforcing ideological purity. Men of Affairs: The choices were in fact fresh evidence of Reagan's determination to let his New Right admirers howl (as some did) and to look instead to moderate- right men of affairs for answers to the hard realities he is about to inherit. The Capital, when he paid his second call as President- elect during the week, was caught up in a new wave of jitters about a Russian in- vasion of Poland (page 48). The prime lend- ing rate was back at its April record high of 20 per cent and headed higher (page 65). Inflation remained at a double-digit boil, the recovery was melting down into a new recession, the stock market had gone from bullish to bearish, and an impassioned transition report from two congressmen warned Reagan that he was in for an "eco- nomic Dunkirk" unless he took drastic emergency action in his first 100 days. In the circumstances, Reagan largely ig- nored the Moral Majoritarian right and , assembled what he called "a balance of' experienced hands with fresh faces" in the conventional Republican shopping cen- ters--the boardrooms, the Congress and' the rolls of Nixon-Ford alumni. His starting line-up: ? His economic team is on balance old school, with Donald T. Regan, the spiky- sharp chairman of Merrill Lynch & Co., as Secretary of the Treasury, industrialist Malcolm Baldrige of Connecticut at Com- merce and U.S. Rep. David Stockman of j Michigan at the Office of Management and Budget. Stockman, 34, is the co-author (with Rep. Jack Kemp) of the economic- Dunkirk paper now on Reagan's desk and is Kemp's brilliant ally in the cause of radi- cal tax cutting to revivify the economy. But Regan, 61, and Baldrige, 58, are men of more traditional conservative stripe. Re- gan, not StAlgpro iressiuPet ft Wetase emerge as first among equals?and he in- sisted from the moment of his introduction last week that tax cuts must be yoked to offsetting cuts in the budget. ? The national-security command will be more hawk than superhawk, with old Washington hands Caspar W. Weinberger at Defense and William J. Casey at the CIA?and with Gen. Alexander Haig as the resurrected best bet for the flagship I position as Secretary of State. Casey, 67, j is an old OSS hand and a lifelong espionagel buff with no heavy ideological baggage; Weinberger, 63, is a bottom-line manage- , ment man whose main charge will be to: preside over the Pentagon budget?the only one in town ticketed to grow?and to keep its coming flush times as orderly and fat free as possible. The geopolitics in this mix would come principally from Haig, 56, a sometime Nixon-Kissinger protege whose world view is a more subtly woven version of Reagan's own: rearm America, watch the Russians and keep your powder dry. im The start-up domestic-policy group showed a clear predilection for prudence over zeal, for managers over wreckers. Rea- gan's Attorney General, as widely predict- ed, will be his friend and personal attorney William French Smith, 63, a patrician Los Angeles labor lawyer of boardroom-con- servative bent and cautious temperament. His nominee for Secretary of Transporta- tion was Andrew Lewis, 49, a Pennsylvania management consultant who migrated only slowly to Reagan from the moderate wing of the party and backed Gerald Ford I against him last time around. His man for Secretary of Health and Human Services was U.S. Sen. Richard Schweiker, 54, of Pennsylvania, a belatedly converted ex-lib- eral who helped shape some of the social programs HHS administers and is said to believe in them still; he had been Reagan's choice for Vice President in 1976, and he was the only man on all Reagan's Cabinet lists who came personally recommended by Edward Kennedy. The selections taken together were pre- cisely what Reagan wanted in his passage from fundamentalist politician to centrist President: a company of good, gray, solid citizens with eight team players and no known prima donnas. The collective profile of his starting eight was white, male, East- ern, Ivied and middle-aged; they average 56 years, and half are over 60. They are at least as outsiderly as Jimmy Carter's government, though rather less pushy about it; only Weinberger has ever sat at a Cabinet table and only Casey brins any 2004/osiowleem ift120-00101R000500010002 3 ence to his new job. Six come straight from business or business law, and a surprising number carry Reagan's 1.0. ef.'s for cam- paign services rendered?Casey as his man- ager, Lewis as his man at the Republican National Committee, Schei eiker as his "running mate" on the nom icket of 1976, Baldrige as Connecticut .-hairman for George Bush in the 1980 primaries and for the Reagan-Bush ticket thereafter. If their nominations were well received on the editorial pages, their mass baptism at Washington's Mayflower Hotel played badly as theater; the drum roll had been too long, the leaks too profuse and too ac- curate, and the casting too bland in the conspicuous absence of the President-elect himself. Reagan, by official account, feared that his presence might upstage his nom- inees?"It's their show," said press spokes- man Jim Brady?and so staved out of sight in his borrowed quarters iii Blair House, granting an audience to two dozen black leaders. The more prevalent guess, shared by some of his own people, was that he preferred not to take quesi ions about the fitful pace of his Cabinet making thus far? and particularly about his off-again-on- again dalliance with Al Haig, for State. Which Way In? Whate?. er the case, he sent his written sentimentS by proxy and left his eight nominees to meet the press without him. For a half hour, they stood in a stiff, dark-suited row under the plaster cupidons in the Mayflower's State Room, vamping nonresponses to questions they were too new or too canny 'o answer. There were almost no clues as to the direction of public policy beyond Regan's signal on budget cutting and Schweiker's four-square endorsement of jogging. Drew Lewis fi- nessed one question, pleading that he had been too busy filling ou r his disclosure forms to start thinking trai sportation; Bal- drige ducked another, "inasmuch as I have not found the front door to the Department of Commerce yet." The session maundered on to a mercifully early elose, with none of the drama that normally attends the birth of a government. "We needed Reagan to lend some class," one aide said. "It was a pretty lackluster show.' CO'g The Nev Right counted it something worse than that: the betrayal eration. Special Watergate prosecutor Leon roivectuFtir,fReleadndiJiic ed Haig in rint by ReaApp e which people had soldiered in his crusades since 1966. "These are Fortune 500 people," stormed Richard Viguerie, the hard-right direct-mail wizard. "We've just been closed out." Some of the new righteous did take heart at having Stockman at Reagan's court, preaching the gospel of the redemptive tax cut, and some were pacified by Schweiker's opposition to abortion and school busing. But Regan particularly was a pink flag for the right, for hav- ing contributed to Democratic as well as Republican candi- dates in the past and for his suspected heresies against pure Kemp-Roth economics now. "His nomination makes no sense to me whatever," said John T. (Terry) Dolan of the National Conservative Political Action Committee. "I don't see how President- elect Reagan can explain the nomination of Secretary-designate Regan." The New Right and some of its allies in the Senate had tried in fact to light a backfire against Regan once his name leaked out, with the implicit threat that he would be put through some feet-to-the- fire questioning at his confirmation hear- ings. But Regan had a powerful friend at court in Bill Casey and a strong portfolio of his own as the master builder of Wall Street's biggest securities firm. In the end, he outlasted half a dozen competitors and nailed down the job before the opposition got fully mobilized. Byrd Hunting: The infighting over Al Haig's probable posting to State was more furious still, but at the weekend, insiders said, only some last "mechanical problems" were left between him and the nomination. There was a measure of risk for Reagan in choosing him?the now near certainty that Democrats would seize on his con- firmation hearings to rake up his record as Nixon's chief of staff and principal prop almost to the end of the Watergate crisis. Minority Leader-to-be Robert Byrd reit- ' erated his threat to put Haig to "intense" scrutiny, armed with his strong prose- cutorial gifts and his command of the Watergate literature. "The Reagan people don't have any understanding of Congress or what Byrd can do to them," a top-rank Nixon Administration alumnus said. "Bob Byrd doesn't go hunting for rabbit if he thinks he's going to find a bear." But with his fortunes apparently fading, Haig and his advocates on the Hill?the ultraconservative Sen. Jesse Helms of North Carolina principally among them? mounted a brisk and winning rescue op- the secret White House tapes, suddenly ma- terialized and pronounced the general an "unsung hero" for having helped ease Nix- on out of office. Ford told Reagan by phone that, while Henry Kissinger remains his first choice, he 'could support Haig with no reservations about Watergate or any- thing else. ("Jerry Ford," quipped Wash- ington political satirist Mark Russell, "just pardoned Alexander Haig.") Helms called Nixon himself to inquire if anything on any tapes as yet unheard might damage the general. "Not a thing," Nixon an- swered, "and I'm the world's greatest expert on the tapes." Byrd's whiff-of-grapeshot threats did shake some of Rea- gan's people?even, by inside account, the indomitably stolid transition chief Ed Meese. But their operatives did what one source called "a second water testing" on the Hill and came back to Reagan's M Street i transition headquarters with the word that the storm warn- ings were overblown?that Haig could be confirmed with minimum damage. "As far as the country is concerned," a Reagan hand concluded, "the Watergate horrors ! are over." Democrats talked in the cloak- 1, room about pressing on and even inquired I as to the availability of Carmine Bellino, a demon investigator who has served three Kennedys in the Senate. lint Reagan was said to have settled at last on Haig because he needed somebody with a world view to lead his foreign-policy team and had no one else at hand. "Cap Weinberger is a hell of a manager," a Reagan topsider said, "but he isn't much of a big-picture man. You get that with Haig." Haig was accordingly thought likely to be nominated as early as this week. But the public seesawing over the choice looked a shade amateurish and dimmed a bit of the glow that had bathed Reagan on his first triumphal tour of the Capital last month. This time, he found himself grumpily obliged to deny that his Cabinet making was running on any longer than the norm. He was beset as well by a spate of unflattering stories on, his troubles wres- tling down Washington's bigger-is-better imperative in their first microcosmic test of arms. His transition shop was disclosed. to have so overloaded its payroll and so overspent its allotted 32 million in Federal funds that it will have to scrape up a half million more from leftover campaign funds and private donations to stay afloat. "It's like a minister go- ? ing to Las. Vegas," a staffer : said wryly of the bureaucratic bloat. "To fight sin, you've got " to know it." Decorating: Reagan elected in any case to lower his profile New York 01'6 R000500004.ant. 1 and Nan- cy ventured out to Beautifully Peopled din- ner parties in both cities, but he President- elect otherwise limited himself mostly to his suite in the Waldorf-Astoria and his rooms in Blair House, receiving various supplicants and lunching mai i-to-man with his newlywed son, Ron. He did fit in a ; tour of the White House with Nancy and her decorator (box). Her dcmain was the living quarters. His was the Cabinet Room, and his now plain design w. is to do it up with a group portrait in corporate Repub- lican gray. PETER GOLDMAN with ELEANOR CLIFT, THOMAS M. DtFRANK and HOWARD FINEMAN in Washington and MA.R1 IN KAS1NDORF with Reagan Approved For Release 2001/03/06: CIA-RDP91-00901R000500010002-3 Approved F 0500010002-3 Approved For Release 2001/03/06 : CIA-RDP91-00901R000500010002-3 i.121TICLE LD TlikE 03 NApvtped For Release 2001t03M6EADIA-13434)91-001EMODUS0 ,: I -: ,b400- 'For Secretary of the Treasury: Merrill Lynch Chairman Donald Thomas Regan : -A Broker for Treasury , . :Whose economic views are mostly unknown Ihe ad for - iii kerage house reads MERRILL LYNCH -r the nation's largest bro- 'IS BULLISH ON AMERICA. In naming a Treasury Secretary, Ronald Reagan ,wanted to send a similar message of con- fidence to the nation, especially its busi- ness community. Who better to carry it than Merrill Lynch's own chairman, Don- ald Thomas Regan? , The choice came at the eleventh hour, . after former Treasury Secretary William Simon and Citicorp Chairman Walter Wriston had been counted out Some members of Reagan's transition team were surprised and soured by the deci- sion. They felt that the post should have gone to former Treasury Undersecretary Charts Walker or Reagan Economic Ad- viser Alan Greenspan_ The selection of Regan. 61, seems to have iwork of lieagan's campal CIA Director-designate tam asey, who got to know the Merrill Lynch chief when Casey was chairman of the Secu- Pities and Exchange Commission in the early 1976s. en the hand- chairman, - An English major at Harvard ('40) and avid golfer (he shoots in the low 90s), Regan learned his hard-driving manage- ment style as a Marine lieutenant colo- nel during combat in the Pacific. Says Regan, whose Irish temper flares quickly at subordinates who do not meet his ex- pectations: "I don't hIce laziness or slop- piness or slovenliness." After World War II, he joined Merrill Lynch, became its president in 1968 and chairman in 1971. Under his leadership, the firm, already biggest in the U.S. securities industry, be- came a financial supermarket with thriv- ing new lines of business in insurance, real estate and consumer lending. Having ac- complished what he set out to do, Regan had begun to think of stepping down. Two years ago he and his wife Ann, who have ...four grown children, bought a house in ?":-Mount Vernon, Va., for their retirement. Businessmen regard Regan as sensi- tive to their need to raise new capital to spur investment, industrial growth and productivity?all the things that the "Reaganauts" claim must be done if in- flation is to be stemmed and the econ- omy steered along a path of robust re- covery. There are, however, some reservations about Regan among career officials at Treasury. As Merrill Lynch's chairman, he rarely expressed thoughts about economic policies beyond stating their impact on the securities industry. For instance, in a speech last month to the senior staff of the New York Stock Ex- change, he declared, "Most of us feel that we are moving into the most encouraging environment for a free-enterprise econ- omy in a generation or more. It should spur investment and productivity and growth, all of which should be reflected in vigorous stock markets." Says a pri- vate economist in Washington: "None of us has any notion of what his economic philosophy is. He's a conservative Repub- lican and believes in lower taxes, but? what else?" Regan's experience before congres- sional committees has been largely limited to, discussing such Wall- Street esoterica as negotiated commissions in the buying and selling of stock. He has publicly favored a proposal to lower cap- ital gains taxes from 28% to 21%, which would chiefly benefit the nation's nearly 30 million shareholders. He also backs tax incentives, such as more rapid de- preciation schedules for businessmen, broadening individual tax brackets to off- set inflationary bracket creep and in- dividual tax cuts, but only if a statutory limit is put on the growth of federal spend- ing. However, friends are confident that at his confirmation hearing he will am- ply demonstrate that his views are broad- er than the special interests of Wall Street and the "thundering herd" of Merrill Lynch. Approved For Release 2001/03/06 CIA-RDP91-00901R000500010002-3 Approved For Release 2001/03/06 ? CIA-RDP9T-NM ART I C EiE NEWSWEEk :.-v,c;?E, a 0 22 December 1980 Lawyer, Author, Executive?Spy As a poor-sighted Navy lieutenant in World War II, William J. Casey ma- neuvered a transfer to the U.S. Office of Strategic Services, the nation's fledgling es- pionage service. By the war's end he was commanding a crash program to send Al- lied spies into Nazi Germany. Then, there were years of solid?if less dramatic?suc- cess as a millionaire tax lawyer, author, chairman of the Securities and Exchange Commission, Under Secretary of State and chairman of the Export-Import Bank. But now Casey is returning to his first love; in the Reagan Administration he will direct the espionage outfit that grew out of the OSS?the Central Intelligence Agency. Casey faces the challenge of restoring _might and morale to an agency not yet recovered from disclosures of excesses and a series of manpower cutbacks. Members of Reagan's CIA transition team have rec- ommended strengthening the CIA's covert activities and counterintelligence oper- ations as well as a wholesale reorganiza- tion?perhaps splitting off clandestine op- erations and leaving the CIA as an analytical unit competing with other intelligence agencies. Such talk has made CIA of- ficials anxious, but they greet- ed Casey's nomination with relief. That Reagan named his trusted campaign manager to the post?and gave him Cabinet rank? shows that the President-elect "takes the CIA seriously and is not about to reduce the director's authority," guessed one of- ficial. And though Casey's own espionage experience is dated, he has served on recent intelligence panels. For his part, Casey concurs with the need to beef up coun- terintelligence activities but told NEWS- WEEK he has no plans for "a drastic reorganization." Casey could have some problems at his confirmation hearings, although he has been confirmed by the Senate in four pre- Casey: An old hand is welcome at the CIA Bruce Hoertel vious appointments. As SEC' chairman in 1972 he infuriated congressmen investigat- ing campaign contributions from the In- ternational Telephone and Telegraph Corp. By giving the SEC's files on ITT to Richard Nixon's Justice Departmeni for possible criminal action, Casey held up the Con- gressional examination for months. Also that year, he met with an attorney for fu- gitive financier Robert Vesco, at John Mitchell's request, on the very day that ' Vesco made a 5200,000 contribution to Nix- on. Casey says he knew nothing of the con- tribution then and that the meeting merely facilitated an SEC investigation of Vesco. Vigor: Casey's manner belies his broad experience. At 67, he is gruff, shambling and surprisingly inarticulate, but friends say his appearance disguises a razor-sharp mind and a shrewd sense of combat. "Words do not often catch up with the speed at which his mind works," says intelligence expert and friend Leo Cherne. "You think you'rel dealing with this old has-been and before' you know it, he has you in his back pocket," agrees one Reagan aide. An avid reader and author of scores of "desk books" on tax law, Casey surprised critics with his vigor at the SEC. As Reagan's campaign manager this year, he was widely credited; with restoring order after John Sears was fired as campaign boss. "He's an instinctive intelligence director, organizer and agent," says friend and oil entrepreneur John Sha- heen. "He has a common touch, but he knows how to use muscle." Approved For Release 2001/03/06 : CIA-RDP91-00901R000500010002-3 I Ak I IN I L 0,ETARP,r9YeSt...2. Egsr Releasej.2901MCWWMA-RiD15191-00901R -- 00 JIM-050 3 AGI, 22 December 1980 Tomorrow? A?LOOK Al-lEA.D EI-tOM THE NATION'S CAPITAL At the Central Intelligence Agency, William Casey, Reagan's campaign manager, was an intelligence agent in World War II, has been a lawyer- politician since. Carter named Adm. Stansfield Turner, a career Navy officer. CZTT Approved For Release 2001/03/06 : CIA-RDP91-00901R000500010002-3 ANZICLZ PAQZ CONGRESSIONAL QUARLERLY d For Release 20011174/01PCIA-RDP91-00901 20 DECEMBER 1980 STATINTL William J. Casey: Central Intelligence Director President-elect Reagan apparently is getting off on the right foot with the American intelligence establishment iv naming 67-year-old lawyer and self-made millionaire William Joseph Casey as director of central...intelligence. Indeed, some prominent former intelligence officials are elated by the choice if Ca.-aiv, who they say may be just the tonic to fortify anemic morale at the Central In- telligence Agency and in the intelligence community at large. William E. Colby, a former CIA director who practices law in Washington, said Reagan's choice was "a very good one because Casey "has a unique background and one very appropriate for the inb." Casey's background Oh ?I *World War II service in the Office of Strategic Ser ices MSS), the CIA's wartime predecessor, working to infiltrate IS agents into Europe. &Successful careers as a tax lawyer, teacher. writer and businessman 'that have earned him a fort uric'. *Long and close associations with establishment Re- publicans that led him to terms in the early 1970s as chairman of the Securities and Exchange Commission, un- der secretary of state for economic affairs and president of the Export-Import Bank. *An ardent interest in intelligence matters, demon- strated by active participation in groups such as Veterans of the OSS and the Association of Former Intelligence Officers, plus service on President Ford's Foreign Intel- ligence Advisory Board. *A brief but successful stint as Reagan's presidential campaign manager that earned him Reagan's respect and his ear, and got Casey the job he has coveted for years. Such experience, concludes John ,Bross, ,a former OSS and CIA officer who knows Casey. makes the director- designate an "ideal choice for this job." Mixed Reception While he is known and generally admired among his intelligence community contemporaries, one active CIA of- ficer said Casey was a stranger to younger officers. "I can tell you honestly, the reception's going to be mixed lot the CIA]," this officer said. "Nobody knows anything about him. It's really a 'wait and see' attitude." But Casey has his doubters, including those who won- der whether a man who has done no intelligence work since *World War II can run a modern spy agency. Another question is whether Casey, whose rumpled, relaxed manner and wispy white hair make him look every bit his 67 years, has the energy to oversee the CIA and some 10 other ?intelligence community components. Lawrence Ilouston. an OSS veteran and former CIA general counsel, is one skeptic. "People that worked with hon seemed to think pretty highly of him," !lonston said. "I've aka\ s frankly been a little puzzled by Bill. He knows all the right names to call. I've never been particularly impressed by him otherwise." Accieiding to author Joseph Persice, C,..-:ey's appear- ance always has been deceiving. In 11rt'ru-ug the Reich. a book about the OSS operation Casey worked in. Persico wrote: 'In Casey, OSS had a man, with an analytical mind. tenacious %,s ill and a capacity to generate high morale among his staff. He delegated authority easily to 'rusted subordinates and set a f:imple standard - - results. He had no patience with the well-born effete who had locked to OSS, people he dublaal the 'white-shoe boys,' The criticism that Casey may be "out of touch" with modern inte!figence operations resembles doubts expressed when he became Reagan's campaign manager Feb. 26. Campaign insiders said Casey did not understand modern media campaigns. the heart of modern political contests. Casey responded at the tithe: "I'm not supposed to know tr.erything. I'm bringing into the c.impaign guys who have lieen there before, who know all thcse mysterious things Pm not supposed to know." But a lack of recent intelligence agency experience could prove a politicill virtue. Casey is untainted by the CIA abuses of the 1960s ? such as attempts to overthrow or assassinate foreign leaders ? that smudgcsi the agency's image when they -were exposed in the 1970s. Consequently, even an unforgiving CIA critic. such as Louis Wolf, editor if a magazine dedicated to exposing ('IA operations and publicly identifying U.S. agents, had difficulty criticizing the appointment. "I'm still in ilie pro- cess fir looking. into his background," Wolf said. Nlorton II. Halperin, an equally vigilant but less stri- dent intelle:ence community critic who is active in the American Civil Liberties Union, said he would "wait and see- ahuut Casey. "I really don't have an (minion," Halperin said. "I don't know enough about his record." Background, Personality Born tin March 13, 1913, and raised in Elmhurst, , Queens. in New York City, Casey was such an energetic child that, by one account, his peers called him "Cyclone." Casey earned a B.A. degree from Fordham University in 1934 and a law degree from St. John's University Law School in 1937. He began practicing law the following year when he was admitted to the New York St:ve Bar. He was commissioned a lieutenant, in tile H.S. Navy when the war began in 1941 but poor eyesight confined hint to a desk job in Washington. Through friends in legal circles, Casey connected with Maj. Gen. William J. "Wild Bill" Donovan, the Wall Street lawyer President Franklin 0. Roosevelt tapped to form and run the 055. This led Casey into the OSS. Casey left the OSS with a reputation as a forceful manager who could make tough decisions with speed and see that they were carried out. He remains supremely con- fident. When Reagan named some new campaign aides in July, Casey announced with authority: "Everyone re- ports to rue. Every campaign has to have a final arbiter, and that's me." COTITTROYD Approved For Release 2001/03/06 : CIA-RDP91-00901R000500010002-3 ThoAp roved (for IReleaser2G01i0a/06y: C IAA DP94,009Arl R000500010LID2 A I, titles were Tar Planning on Excpss Prafits and Tax Sr f?lter(al Inocst awn! s. I M he also wrote How to itoi..e Money ,Ilehe Meney tinl How rfaicral Tax Atzg!,-; Niattiply Rca, Estatc Profits r y has practiced law throughout his career. and among hi, partners was Leonard W. Hall, a legend in OP circies in New York. Casey was active in GOP onli''ics himself. hle worked for Thomas Dewey's 1940 and 1948 presidential bids. He ran a fereign policy group ii Vice President Richard M. Nixon's 1960 presidential campaign. In 1966, Casey ran unsuccessfully for the U.S. Hoese. Ile worked again in 1968 for Nixon, who pit him or the Advisory Committee on Arms Control and Disarmament in 1969. President Nixon named Casey to the Securit,es Ex- change Commission (SEC) on Feb. 2, 1971. AfLer E some- times stormy tenure as SEC chairman, Casey was named under secretary of state for economic affairs in 197:-e How- ever, when Henry A. Kissinger became secretary ot state, Casey as moved into the presidency of the government's Export-finport Bank. was not in act the final arbiter on political decisions. , Bie he won praise for taking tough steps that rescued ' he' campaign. He fired 100 campaign aides and refused to pay others for awhile. His tourniquet stopped the fi- nancial hemorrhaging. Career Casey has been in itad out of government ever since World War IL In 1947-48 he was special counsel to the Ste ate Small Business Committee and liOer associate gen- eral counsel for the Marshall Plan. He taught tax law at New York University between 1048 and 1962. In this period he wrote and published sonic Controversy Casey's publishing ventures led to one dispute that caused him difficulty when he was nominated to th, SEC. The Senate Banking Committee approved Casey's nomination by a 9-3 vote soon after Nixon made it but reopened its hearings after news stories disclosed that Casey had been a defendant in three civil suits between 1962 and 1965. One suit involved a plagiarism charge again.4 one of Casey's publishing ventures. Another charged that a firm in which Casey was a director and principal stockholder had sobi unregistered stock, a violation of securities laws. The snits were settled out of court, and Casey con- tended before the Senate committee that he was unaware of the actions of his subordinates. The Banking Committee ultimately reconfirmed Casey to the SEC on March 9. While he was SEC chairman, some congressional Democrats also charged that Casey had attempted io con- ceal information about the relationship of the Nixon ad- ministration to the International Telephone and Telegraph Corp. A special House subcommittee was investigating re- ports that ITT had offered to trade a $400,000 campaign contribution to Nixon for settlement of an antitrust suit, and Casey shipped 34 cartons of SEC documents to the Justice Department before the panel could subpoena them_ Justice said it would refuse to turn over the documents because they were being used in a criminal investigation. It was later revealed that some of the documents con- tained infermation about conversations between ITT of- ficials and Attorney General John N. Mitchell, Secretary of the Treasury John B. Connally, Vice President Spiro T. Agnew and John D. Erhlichman of the White House staff. In areq her case, Casey met in 1972 with a lawyer for Robert L. Vesco about a pending SEC investieation of the financier. The meeting was on the day Vesco secretly gave $200,000 to the Nixon campaign, but Casey has main- tamed he learned of the donation only later, from .news',, accounts. .? There was conflicting testimony in each case. and Casey was never charged or penalized for his role in either. I --By Richard Whittle Approved For Release 2001/03/06 : CIA-RDP91-00901R000500010002-3 Approved For Release 2001119,4/q6E:Nc4A-RDP91-00901R 20 Dec ember 1980 Conservatives Do Doubletake Over Treasury Choice Conservatives can probably live with most of the President-elect's nominees, but the one name they still seriously question is the choice of Donald Regan for secretary of the treasury. Clearly, the "right" is less than bullish about the 62-year-old chairman and chief executive of Merrill Lynch & Co. What particularly bothers them about Regan, who was apparently pushed through at the last minute by the governor's choice for CIA, William Casey, is that he has never been much of a conservative supporter, has made few public policy pronouncements of sig- nificance and has allowed Merrill LyncliTsix-eniart+i , political action committee?of which he is a mem- ber?to back leading liberal Democrats, . Approved For Release 2001/03/06 : CIA-RDP91-00901R000500010002-3 r Release 2001/03/06 : CIA-RDP91-00901R0 Anqh.P, 'M(111361? CHRISTIAN SCIENCE MONITOR 011 I' NWT, / 19 DECEMBER 1980 ? Reagan ?supercabine to have low profile? By Godfrey SperlingJr. Staff correspondent of - The Christian Science Monitor , :Washington President-elect- Ronald Reag an's "supercabinet"" concept is undergoing stresses and strains even before it be- comes a reality. - _ There now is a strong possibility that it will be...a de facto_ "supercabinet," not a fornial one. Thatis,'? Mr. Reagan-intends to have an elite 'advisory group within the offi- cial Cabinet that will counsel him in making decisions on subjects across the board., But due to objections he is hearing, the ,President-elect now may put this plan Into action quietly making it part of his government but playing down its e:dstence so as not to antagonize the other Cabinet members. _ The Reagan chief of staff-designate, James Baker, is one of ..those who is pushing for this quiet approach to the adoption of "supergovernment." "Otherwise," he says. "you are go- ing to downgrade 11 other Cabinet mem- bers ? and in so doing you irritate their constituencies . within _ . their STATI NTL cepartments." "Also," said Mr. Baker, "you antagonize the committee chairmen in Congress whose activity is related to the Cabinet members who are left out of the supergovernment." ' _ - At is understood that it is Reagan's intention to put to- gether a hard-core advisory unit that would consist of Secre- tary of State Alexander M. Haig, Secretary of Defense Caspar W. Weinberger, Secretary of Treasury Donald T. Regan, Attorney General William French Smith, and, very likely. CIA director William Casey. _ _ '7- Edwin Meese III, who will be a dabinet-rartk counselor to Reagan, is strongly backing the formal "supercabinet" con- cept. In fact, it seems that all that now needs to be decided is . whether the President-elect will emphasize or play down his ..inove to this kind of government ? one which copies his ap- proach as governor of California. - - "If we decide to do it [publicly announce a supercabinetl,"=,.: said Baker, "I'll do what I can to see that it works,- Otherwise:Baker pointed out, he had no doubt that the. President would set up this kind of government anyway - -that is, he would be meeting with only a select few of his Cabinet most of the time. - ? ' -Baker made it clear that he could live much more com- fortably with a supercabinet of this kind ? soft-pedaled so as not to embarrass the other members of the Cabinet. Who will win out in this early Reagan White House inner struggle? . . One observer points out that an answer may-lie in the offices Baker and Meese are going to occupy. Baker gets Jack Watson's chief-of-staff office, a choice location. But the "prime property," now occupied by Zbigniew Brzezinski and earlier by Henry A . Kissinger, goes to Meese. - Meese is extremely close to Reagan and has been for years. ?. - ? But Baker has won Reagan's admiration and respect in recent months during the campaign ? and his "say" is being given a iota weight by the President-elect. In the superabillet concept, Meese Wotild Central 1 , role as coorainator, moderator, and, at times, consultant to thePresident. ? -. - Both Baker and Meese are known for being good natured and easy to get along with. Thus, they are working out how the supercabinet will be implemented in an amicable way that will not threaten to erode their exceptionally good relationship. .; = - Approved For Release 2001/03/06 : CIA-RDP91-00901R000500010002-3 STATINTL Approved For Release 2001/03/06 : CIA-RDP91-00901R0005 ARTIC7,7, THE WASHINGTON STAR (GREEN LINE) ON 18 December 1980 THE EAR 1 ? OVERHEARD AMONG THE REAGAINISTES . . Bill Casey will be the first CIA Chief who won't need a scrambler.". . . "Why's Reagan naming a conservative ? dentist to head Energy? "Durtno. Drilling Experience?" Heh Heb.. They do have a good time. Back " tomorrow. Approved For Release 2001/03/06 : CIA-RDP91-00901R000500010002-3 STATINTL Approved For Release 2001/03/06 : CIA-RDP91-00901R0 et; " .?"'" PHILADELPHIA INUU 18 Decem.ber 1980 0 te0ye- , ; eenit*rewee eeet ''eeeeeeeee,c,?'T By David Ilofferan Knight-Ridder New, Seivirwr ' ? ) I ; ? WASHINGTONe?Art the early days of the War:IL American spy.. ?-,;effort, Gene .Williarn (Wild Bill-) Donovan, chief of the Office of Stra- tegic Services (OSS). - recruited a 1 young New Yorklawyer, to h.elp him spy on Nazi Germank. The lawyer, was , William Joseph Casey.:. ,a ? hard-driving, . impatient. Navy lieutenant who: supervised dozens of - successful- intelligence forays intoHitlerGermany. . "Casey has always been an admirer of Donovare"; recalls author Joseph ? E. Persica who chronicled the war; time spy operations. "It would be the realization of -a dream for him to become the General Donovan of his, day." e 7 ? President-elect ; Ronald' Reagan took a step'. toward making that dream a reality by nominating Casey, 67, to be director of the Central Intel- ligence Agency (CIA), successor to the old -OSS in which Casey once served.. ; ece In those hectic World War II days; Casey was the chief of secret intelli- gence for the European Theater.. From his-post- in London,. he sent more than 100. agents_behind enemy. lines.- ? .; A ;V', ?When ihe war . was won, he- re-- turned to private life, earning a per-.- sonal fortune over the next 35 years rofile is one inc series of profiles of ?top officials in the incoming adminis,. - - - William J. "He'd throw out the book if it didn't work," Persico says. "He is no respecter of sacred cows- or tra- ditions if they don't work"1..- Casey returned to private practice in 1977 and remained there until as a high-pricedcorporate lawyer, a early in 1980 when Reagan, faced with serious financial problems in prolific publisher-of "how-to" books his presidential campaign. sought. for, lawyers and lensinessmen . on taxes and economic subjects and e. help by naming Casey campaign successful venture capitalist, He was. chairman. - - . also a -loyal_servant in the adminis- According to friends and transi- tration of President-Nixon. lion sources. Reagan had several Under Nixon, he-was chairman of other reasons for appointing Casey to the Securities -and Exchange Gem..., carry out his campaign pledge to mission (SEC) in 1971 and 1972. un-- dersecretary of state. for economic . affairs from 1972-tor 1974 and then. ?president and chairman of the Ex- port-Import Bank. " strengthen America's embattled in- telligence service. ? First. Reagan felt that he needed a trusted adviser who would riot ob- struct his "window on the world" in ? ce Of Most aRDWO1 merit a guy w o won't be if not always conventional. ? afraid to deliver the bad news,' one source saysoiA).:, ? ? More important. however, was thel feeling among Reagan's advisers that ' the intelligence service had been demoralized and shackled by restric- tions on covert operations and intel- ligence-gathering methods imposed by Congress in recent years. - While Casey certainly is not ex- pected to resurrect the abuses that touched off a string of investigations in recent years, the Reagan advisers suggest that his results-oriented out- look could at least sharpen the agen- cy's sense of purpose, the sources sav.- Casey's independent style.- has. caused some problems in the past. in 1971, when.the Senate Banking Committee .was:' considering ? hisi nomination. to head. the-SEC, .Serr. William Proxmire (D-W1s.1 chargedl that Casey "has cut corners when he considered it to be necessary to busi-_ ness- profit.. He has - wheeled .and dealed his way into-a-personal for- tune, sometimes at the expense of his clients."? Casey was confirmed, but only after a long hearing-- . The hearing brought out that Ca- sey had freely gambled millions of dollars from his own fortune on more than two dozen inventions and- business proposals just getting off the ground. Most of them involved- computers and new communications technology, an interest that Casey .retained from his work in the OSS. Casey's temper can rum high when he feels that others are questioning his integrity or motives. During a deposition in a plagiarism' case, en angry Casey swore at a questioning lawyer and threatened to t:kick your out of here." ? ? e ? . Much like the self-made California industrialists who aree personally close to Reagan, Casey came from. humble origins in New Yorke.- e ? - After graduating from-.Fordham: University in` 1934, he worked his way through night law school at St. John's University while earning his. living as-,a New York home-relief investigator. He received his law- degree in 1937, during,the depths of the Depression, when young lawyers were making 55 a week. e - ' Casey walked into Reagan's- 1980 campaign on the night of the New. Hampshire primary, ',?when- Reagan. I fired manager John Sears and twa ? other lieutenants. Casey was brought . -in to stem the financial hemorrhage! ing in the campaign. and -presided :! over the dismissal of 100 aides._ Yet Casey, in his pin-stripe suits) was always something of an anomaly. in the Reagan circle.-In a group oil primarily western coma/see -0090*R0005900 n.-i _moderate Republicanism.-.... OTINUED Approved For Release 2001/03/06 : CIA-RDP91-00901R000500 4T I CLE APP.:11;4D THE WASHINGTON STAR (GREEN LINE) 18 December 1980 STATI NTL TT; Ternoilori?-FearediT: By Key --Regan Ade rVIttrtt T r ; ":? :re% By Jeremiah O'Leary -we-eerie: ..4WitAiiniteiri?Star Stall Writer ? r'7,t "6 . dt7, tion is having second thoughts about-. -. the idea of having a "super-Cabinet" help the president make major poli- - C-YllecisionS;adairding-sto a top Reaz-T - gam-aide.: .e !lathes A. Baker...III,. whO,will be:1:j ' . chief of staff in The Reagan White ? House, yesterday told reporters some, ' "red flags" were being raised against .- the proposal and that it had not yet:e. been decided whether to adopt it. e As set forth by Edwin Meese IIL , ? who wifrbe counselor to Reagan in. the neW administration, the super- Cabinet; would include the secre-.. detense; state and treasury-. the CIA director. lTyoupromot1rbinet.memJ. bers, you demote-ll others and mayL make some congressional-Committee ? chairmen mad, ' said Baker. "The are ? guraents for it are tharthe presiderit needs to reduce the-number of peo? ple in the decision-making process:. The president will always rely on: some Cabinet members more than. 'others." Baker-said that;a decision.' on whether to set up a super-Cabinet:; e- will not be made until next montleee :_re,The-Reagan transition team hadl- , in mind a sort of executive commit- ; tee of the Tabiner,that Would sit, regularly on matters involving nee- i-. tonal sectrity and the economy. Meese's original idea was that the, Cabinet members ,concerned with human problems, resources and de-e. velopment would not, be directly af-: fected ,by national decisions requiring swift policy.action. --In practice, the .:e'super-Cabinet''-" e group corresponds -Almost exactly' f. with the statutory. membership in. the. National Security Council and; irmay turn 'OUt -that.the NSC wia; evolve into the smaller-group Meese has. ? Reagan became accustomed to - regular .meetings with Meese and - his six-member Cabinet in his eight years 'as governor of California. -TheNSC requires attendance of.; the Joint Chiefs of Staff, and in prac- tice presidents have brought:in oth- er Cabinet. members ,for-NSC meetings from time to time.' Baker. also said the ReaganWhite - House wilt upgrade thecongressione... al Heiser'. office. to :betiheaded by. Max Friedesdorf . 'r r c:11 He said,: the new: ddrainistration considers the legislative liaison staff so-important that it will- be moved back into the White Houselrom the -' Executive Office..Buildingelle. said he thought it was a mistakefor the . Carter administration to- move the Congressional Relations office over to the EOB. The transition team -,also ian-,- nounced -.yesterday that longtime - Reagan aide and confidant Michael K. Deaver has been appointed assis-- tent to the president and deputy e chief _of- staff. Baker" Said Deaver, who is now co-partner-in 'the-public relations firm of :Deaver -.Fe- Han. naford? will be in charge of Reagan's appointments office, of advance-and scheduling for the president, the_ . military office in the' White House - and the First Lady's East Wing staff: - ' Baker said the transition ,team Still searching for a White ,House press secretary and has interviewed --..a-number of-men - a ndewomen, -in- eluding some journalists:Jim Brady; ?spokesman for the Washington tran- sition _office,eelso is under .coneidi -eeration for the job.e. "el eeleeree. Baker;' who willebeeiia- ,overaa charge of. the 'press Operetibrie said ;the intention is to have the7 press _secretary-report directly to Raga.n; 70bvieusly,-. the. press-secretary Won't:leave: .accessegoing:iriLeaid Baker,e'But iLwe get the right,per- son, there will be access to the presi-; :dent." The chief, of ,staff stopped:: short ?of-declaring that -Martin-Anderson will-be domestic affairs adviser and: 7that Richard Allen Willibe.assis tanr; tot the president 'for-national; Approved For Release4EW -btAlitfatO ar irr those jobsrAlletradvised-Reagane "on foreign. affairs during the cam- Baker said Allen's future has not yet been determined, but he added; ."Off 'the top-. of -my head,' I 'thinkt Allen .will be ,appointed, but the scope of the job wilthave a far lower profile than Under-Henry A. ? singer and Zbigniew Brzezinski: -He said the transition team antici: pateclboth criticism and Support for' the nomination of retired Gen. Alex- ander Haig to be Secretary-of State. "We expect full, coraplete-hearings,"f. "'','-- Republican leader's -at' Capitol: Hill have assured us that the general, willte confirmed; but the president- elect gave some consideration to thee L , fact, .that the. hearings could lest longer .than- usuaLeSome senators, as a result-of their staff work; have: assured us that there is nothing se- rious in -Haig's record as White- House' chief of:' staff- in the.. -last ; months of President Nixon's term." e . Baker said that-Reagan has made it clear to all' nominees for Cabinet rank that they wia have- a voice in thc- selection Of sub-cabinet assis- tants but that the-White House also will- have much tee say. about the choice of undersecretaries, assistant: secretaries and depndes- in the-vare? ious departments: The new White- House will have, at . least one position that does. note) exist in the Carter administration,: The.Reaga 12 teaneexpects to- appointie a staff secretary: to raise .-Ichargeofe, the paper flow te ?7 There also will bestaff end al cabinet .secretary; but Baker said he will rely on the.neve position et 'of Staff secretary to se that informa- tion is routed to- all sections:of thee White House staff-and government. departments. 0901R000500010002-3 Approved For Release 2001/03/06 : CIA-RDP91-00901R OFFICE OF CURRENT OPERATIONS NEWS SERVICE DISTRIBUTION II r!t:=FinL?t::::= , ! r 2 1.4W TATI NTL Date. 18 Dec. 80. Item No L Ref. No. STATINTL 74;lh;iiNtIZ11% 17 1: . WAw 1;? NAc W7Nr17.pl OiDN5 ,A=77TEr IN PR7PRRINf; TE INITIAL FERNS FOR THE P7Ar7TIME INTELLIG7NC7 SERVICE TWT 7V7NTUAssY B7CRME 7H7 C7NTRRs2TIGENCE Mr;ENrY ? T1 7. 7..7'.GA7.7I7ATIO37 THAT HE 1I1L DIRECT FnR TH7 X7PGRN ADMINISTRATION IF CONFIR17n AY TH7 SENATE. SASEY -WAS 21 YERRS OLn F. HERD OF ELsIEO INT7LLIGENCE IN EUROP7 WHEN HE R7.717.T7n WITH THOSE Ps RN7 IN i344 UNO7R THE OIR7CTION OF DoNovAN,t s7N7RR1 OF TH7 OFFIr7 nF STRAT7s7,3r h7RVIr77. Oh.:_%.15 TH7 M717TRRY INTELLIGENCE AGENCY. FsSEY n7R71-77n TH7 7NFTITRAT7nN nF 77f-R77 AG7NIS INTO 1%;7i7:MANy: 7. 77..VI2G MIsITARY SERVICE RND RFTURNING TO 1.. N7;4 YnRK LAN PRAf-77r7 THAT 7V7NTIsRlYr it F.ERVED ON P 71V7-MRN rnMmTTT77 TN 4,947 THAT MADE RECOMMENDRTIONS TO !'RESIOENTiUM2 N TH7 N77n FnR FHD STRUCTURE OF A PERMANENT MMERIrAN I7.7T7ssIf7,77.7C7 '1:7RVICE. SHE EXTENT OF HIS EARLIER I1. 1 77..73E1757T NITH ORGRNI7ING P7RC7TIM7 INTELLIGENCE WAS REVERLE5 .IN A LETTER HE WROTE IN TO THE CHAIRMAN OF THE SPNAT7 EANKINcq COMMIIT775 NHICH WAS HOsDING rnNF7RMPTInN HERRINGS _ON HIS CONTROVERSIAL APPOINTMENT TO HEAD THE ?Sr.ruRITTpc ANn 7xrHpw77 r:rimm17,7,1770N: nthLt THE Ls2Ki-Lissii OF CENTRAL INTELLIGENCE C;c715 WHO HAO BE7N?X7RaRN'7. NATIONAL rRMARTnN MANRs77R5 WILL TAXE COMMAND OF A VA7J Hu'T'AN 4% 12 7s.FrTRnNIf F. N7TWORK THAT 7.4 F. BELIEVE IS IN DIRE N77n OF R MRJOR nV7RHAls!. ih:HAT7V7R TW7 7 n7R7t-TR rHnn777 TO nn In R7V70.47 TE NDOTHERNN O . . H R I12T711In77.1r7 7.7RVIr77. IS r7RTA7N TO PE CONTRERSIA!. !HERE RR7 mANY PEOPLES 7NirsUn7Nf7 A NUMBER OF TnP X7AnRN WHO BELIEVE BELIEVE RESTRICTION7 PlAr7n BY fAlNDR77.7. nN CLANDESTINE ACTIVITIES DURING THE PAST SIX YEARS HAVE MADE IT IMPOSSIBLE FOR THE 71.IT7s7. IG7N7.'7 rOMMUNITY Tn nn 71'7. SOB. THF OTHER NO PROP07.R1F. TO LOOSEN THESE R7STRIC71.7. RRE LIKELY TO MEET WELL-ORGANIZEO LnPAY7Nn FROM CIVIL LIBERTIES ORERNI7RT7nNF.; . Apprame.d for,R.elease,200,1/03/06 ,;,,CIA-RDP-91, 00901 R00050001002 14H7CH HI! n !nr7 4rif GIVE UP THE POWER. IT HAS A7-7UM7n OVER INT7!sIG7NC7 OPERATIONS. Approved For Release 2001/03/06 : CIA-RDP9?Idgffri0 ?t-iroveent: LOS ANGELES TIMES 17 December 1980 ;.0 ? - I/ ? . . r?;(?, tt,tri 44. ? ; ? Tr?-?(??-it ?-?.-???? ? Alexander M Haig 3r not 'Only has the &per- :" of Haig?not the new secretary of defense; Caspar- . .2.. ? jence-andintelligence to handle the job of secre- .W..iWein'oerger; not....t.he new director ,of the ...tar,r41-state; but also possesses something else that.: Central Intelligence Agency, William J. Casey; not shdr-itivprove:r beneficial?a,iname .recognized;_in even --.-the .; man expected . to be named as. the .imPortant WorldcapitaLq...t-ru:1!2--ix,-----7::-.M.:::?4":,--.'i-t4j'-',"-PreSident'i,national-security adviser, -Richard: V. --.....,:-.1i13.9:est.erri-EUrope, Haig's nomination comes as: Allen The result will be a secretary- of state with reassurance to all,those who knew him ConSiderable influence, one determined to discour- inili.4..four-yearale served as the commander of age any; attempts to encroach on hs domain as the - the41/4.Tortli Atlantic Treatyprgpni7ation.."They like President's'foreign-policy chief: '1- and Tesp.ect and prefer him over lesser- _All. this ignores some of the questions certain to knowns- who :could "have emerged with the key _ arise when the Senate begins consideration of the ?Cabinet post. Haig nomination?questions concerning his role in among the allies is not necessarily the Nixon White House during- the Watergate 11,A Alier7Soifet:ITiiiiiii:7-FOrerierals, ?scandal. There- are-Igitinfate issues tobe-exploredprlictirarly those-who were in command of allied here, although President-elect Reagan has-satis-,-, ijorciefi- in Europe are not among Moscow's favorite. fied himself that. Haig was not guilty_ of any - ?. people .And Haig has made it clear that he would': wrongdoing or. bad judgment Others may. feel not.;-., always ? walk ?softly - when dealing with - the :different, and are obligated to pursue the matter in .:SoViet:Uniop, -which, once called :him a.''witch r.- the coming hearings. _ What was his role in the wiretaps of reporters his -background, ,, ,included Con- and government officials? Did he -specifically verSial service as -White House chief of staff in bargain with -!President Ford for a pardon for Rfchird M. Nixon's- final days ? as President, Haig Nixon' What was his advice on Vietnam policies? should also help return: to the Sta.teDepartinent its ,i- Toes he in fact,, deserve gratitude,. as Kissinger_ role:x.thepreernirient force in foreign poliCy. The..., suggests, for keeping the :White House running department often-came- in second . to the ...White:- just before Nixon resigned? ? 1-1bnse7haSeti National Security Council in the days , . If Haig emerges from the congressional hearings vhen!'Henryw.N.0.7.1Cissinger.--;ancl,,f,--more7 recently-,177"tinCathed; he may-well go' on to become a-strong -4 7thieV:::dipliiiiiaii-6-7"eflit 7 and. effective- secretary of -Siate. He "Certaitilf.liaS'j ?::around as presidential advisers. . the knowledge, background and ability to become .Noi one in the Cabinet will baize the experience - Just that. ?.!?? ' t" A A A ",'..,4;:i4.44.4 Approved For Release 2001/03/06 : CIA-RDP91-00901R000500010002-3 STATI NTL luvricAppmeact For Release 2001/03/06 : CIA-RDP91-00901R00050 NEW YORK TIMES OU PAGE ....di 17 DECEMBFa 1980 The Region Margiotta Defense z Gets Bipartisan Aid Some of the rifost prominent officials in the state have lent their names and money to a legal defense fund for Jo- seph M. Margiotta, the Nassau Repub- lican chairman who has been indicted on charges that he devised and oper- ated a scheme of kickbacks on public insurance premiums. - More than $30,000 has been raised, and a fund-raiser last night at the Swan Club in Glenwood Landing, L.I., was expected to raise at least $30,000. Among those listed on a letterhead seeking contributions to the Nassau Re- - publican Legal Defense Fund are such leading Republicans as William J. .Casey of Roslyn, L.I., the newly, nomi- nated Director of Central Intelligence, ana -ehator-eiect Aitonse ICD'A"mato. The list also includes such prominent Democrats as Assembly Speaker Stan- ley Fink and Assemblyman'Arthur J. Kremer of Long Beach, L.1., chairman of the Ways and Means Committee.. Approved For Release 2001/03/06: CIA-RDP91-00901R000500010002-3 STATI NTL Approved For Release 2001/RO#KsR6-113p1?9/1ROMMQQ?p00 17 December 1980 A.F.117 I OLE ATP 'C.:. 7...:1) ON PAG;.; A Republican Gathering for William Casey By Lois Romano Washuigton Star Staff Writer Republicans, Republicans and more Republicans swarmed into the elite Me- tropolitan Club last night for yet an- other opportunity to reunite, reacquaint and celebrate. , While CIA I director-designate and Reagan transition team chieftain Wil- liam Casey was the guest of honor, the object of everyone's attention was a recently released study, "The Staffing ? of the Presidency." The report was pub- lished by the tenter for the Study of the Presidency, which hosted the party. Appropriately enough, Casey agrees with most of,the report's recommenda- tions.' ? -,?r? "The President:elect want's to have a cohesive cabinet that runs the gov- ernment like a committee so that all the .decision-making comes from the 'top and is not all broken up-in the bureaucratic process," said Casey who, most believe, has the greatest policy. making influence on Reagan. "That's the way he ran the government for , the state. of California'and that's the 1.way heinrun:thi nation.* , Casepsays he agrees with,. the Con- cept of Creating a "super-Cabinet" com- -PriseArpfliWftiafferretlet ?ON /03/06 : C IA-RD P9 1 -00901 R000500010002-3 would e considered the ig estpo cy- making body and would be responsible Eisenhower, an :.important part- of for o.yerSeeing the entire cabinet: the job was arranging trips for the . , ? The idea,. proposed- by , Defense first lady on the Sequoia." , Secretary-designate Caspar Wein- The recurring joke of the night berger, has reportedly been the revalved around the ever-growing source.of-some disagreement among size"of the Reagan transition office. Reagan- _ in Washington. "It's a powerful ma- "Presiderit-elecRepgan .prefers ....chine turning Out its quota of daily ? working w.ith smaller -committees,",_ leaks, and one of the greatest paper- notes CaSey, adding Matter-of-factly,- makers ever created joked Casey to "after all, everybody:can't do every-- - the CroWd. "We have 72 chiefs of thing." . transition teams and all of them.are, -At least 200-Reptiblicans and a- -going out and coming back with lotS- 'few-old-guard Democrats stood in a ? of paper: With only 10 Cabinet posts, 'arather long-receptionepatiently-? becomes difficult to read all 72 etv.,aitirigto pump hands with Casey, reports.7.-7','- - taidtwo of the. four authors ..of the: "YeS, I'm part of the maze they. :trepart Bradley Nash and R. Gordon call a. transition?' laughed foreign - ,tfircociel But norond seemed tO mind: adviser Fred ikle. The size think we ye -already brought a of it.reallY-haSgOtten out of hand". Vdtbflif e to Washington in the short '"'But Ikle,like his colleagues, doesn't Itirnezsince the election, don't you?" forsee any problems with theSenate :tsmiled Clifton . White; one- of the -confirmation of Gen. Alexander.- FanySet?iior members:of thetransi- -.'Haig as .Secretary of State. "Water- ;.tion team. "I've,worn.ray tux. three -. gate is a dead' issue," he grimaced. times in thelast week and only wore -Those guys -up there don't even it twice during the entire four years, have the material to reject him and of this administration." : ' ; if they did, they wouldn't have the t For some, it was old home week courage to do, it." . ; "God, on look like an ad for life And then there were the handful, in California," blurted .Elliot Rich=:?-.. of Democrats present always hoping tardson, former Secretary. of-Every- for the best. t?This is one the greatest hing under .; Nikoni,;;td Alex ? _opportunities in American history. *Butterfield. "Life must be treating for Democrats' and- Republicans.to ' .7 ideologically meet in the middle and "Weil? you're ,not, looking too bad . . work ;together," said Tommy. "The ' i'estionded Butterfield- Cork" Corcoran, formerly of the Roo- :ie., who was Nixon's Cabinet secretary. -7 -sevelt "brain trust" and perennial "You haven't aged *day!' political activist "The Democrats And back' tid'the report; Which 1.: have-to do something or there.will alsoencourages the re-creation and be no party,",.. ? trengtheriing?of the rOle-of Cabinet!: 72-, Less philosophical was D.C. Mayor cretary. "I hate to go on record Marion Bariy.' "I'm doing the hest as disagreeing with pill Casey but I can with all these new Republican served as a Cabinet secretary and , -faces I have.-td learn. But it's great just don't. think there's enough,..-?:. for the city,:A lot of new Money' ;-Ithere to warrant a full-time job," coming in. Now, wejust have to get as Butterfield. "For awhile under them to spend STATINTL Approved ForRelease2001/03/06 : CIA-RDP91-00901R0 RADIO TV REPORTS, INC. INC. 4701 WILLARD AVENUE, CHEW CHASE, MARYLAND 20015 FOR PROGRAM DATE SUBJECT PUBLIC AFFAIRS STAFF NBC Nightly News December 16, 1980 STATION WRC TV NBC Network 7:00 PM Washington, Dr Experience in Foreign Affairs JOHN CHANCELLOR: Alexander Haig's nomination wouid make him one of the most powerful Secretaries of State in American history. Neither Mr. Reagan nor any of his cabinet choices so far, including the men he has chosen to run the Defense Department and the CIA, has any recent experience in foreign affairs. Haig does, and in the cabinet his views on International matters would not be easily challenged. CES Approved For Release 200119 3j8 cit-RwpA -qcvmpop5nowpralg OFFI IN: SHINGTON D.C. ? NEW YORK ?S 'EL :S P CMES i fne fn. nevi riqference Dunnsos nniv. It Ma,/ not be rex>roduceci. Fold Of ntibliclv ciernonstratmcf or nethihvnet ,ortAppramed-or Release 200/103fra6i,CIAARDP91-00901R0005 Ca nos, 15 DECEMBER 1980 WASHINGTON So you think they - - Reagan advisers and appointees. all ? ' look alike, mesh their gears in perfect unison and promise four years of boardroom boredom? A quartet of vi-' grettes sunests-some human turbu- lenceuntierthe corporate tarpaulin: Among My Souvenirs ? ? On thefl morning 'after the Carter- Reagan televised debate in Cleveland, . candidate Reagan met for breakfast with his most high-powered advisers. All were jubilant: their man had made no Ford-like blunders. - Copies of the debate transcript were handed out to all those at the break- fast, and it occurred to one of the par- ticipants thate an autographed copy would- be an historic- rnernen to. Rea- gan gladly signed -all the copies, in- cluding Henry Kissinger's. - f' "Now Henry will sign yours, if you like, Governor," said George Shultz puckishly. It was- a pretty funny line; nobody laughed.: _ . - -.Praise Silence Last v;reek,' the Interim Foreign Policy Advisory Board convened to make policy recommendations to the President-elect. This is a good idea: outside heavyweights should have regular access to the- next President, and the "interim" in the title suggests that this board'will be made perma- nent, along with a reconstituted For- eign Intelligence Advisory Board. William Casey, the next C.I.A. chief, briskly chai-die group, issued as- sigturients of topics and allocated time. But a dozen or so biphots sitting around a table do not always listen raptly to each other's presentations. When George Shultz began to set forth his ideas, Henry Kissinger and Henry Jackson began to engage each other in ,conversation. Shultz, a man whose quiet voice and steady .presence commands attention, stopped speak- ing and avraited the silence that was his due. .That maneuver always worked in labor-negotiations, board ESSAY - By William Safire meetings, and never failed to focus at- tention in Nixon Cabinet sessions....... , But Jackson and Kissinger kept crn chatting. Casey chose not to intervene. -. Shultz shrugged, put on his-most im- passive look, and went on with his pre- sentation..- _ Reaganaughty but Nice , ...In that same series of foreign policy meetings, _before the President-elect arrived, and with Al Haig's chair inex- plicably empty ? presumably, he was off listening to tapes.? the long-time rivalry between Richard Allen and Henry Kissinger briefly surfaced. In his presentation about transition operations, Allen spoke proudly of the people who were carrying out their assignments on behalf of the dent-el ect in defense and foreign poli- cy. He used the term that he had ' coined to describe them ? "Reaga- nauts," on the analogy of the Argo- . nauts (intrepid followers of the an- cient Greek who sought Senator Prox- mire's award). Henry Kissinger, man of many - neologisms, was not amused. He was aware of the growing tension between Allen's chosen operatives (who are in the main anti-Kissinger) and the for- eign policy establishment. That sub- surface battle broke out into the open, last week with an intemperate blast by STATI NTL Prteident Carter's reformist Ambes-, sador in El Salvador, who objected to the opinions of the Reaganaut author of a blunt transition memo which had been obtained by The New York Kissinger's put-down of Allen con- sisted of an encomium to those thou-; sands of unappreciated; fine public servants who make up our foreign - service. Everyone at the table knew -what shadovy jousting was going on between the past and future national ? security advisers When it came his turn to speak, Allen -- as yet unap- pointed -- chose not to slam back, and genially allowed as how the careerists were cooperating in the main_ -When the group later met with Rea-- - gas, however, Jeane Kirkpatrick, the political scientist seated at tee table between Shultz and Kissinger,- spoke up about the Reaganauts. She used the - word pointedly, stressing the impor- tance of having men and women with a sense of political purpose, trusted fol- lowers of a President with a mandate, who would infuse the bureaucracy. with the direction it needed. Reagan nodded vigorously; Caspar Weinberger, the Secretary of Defense- designate who fully understood the by- play,. beamed; Kissinger did not pick up the challenge; the rest of the players at the table kept ther poker faces. . Ups and Downs A group of the same foreign and de- fense transitioniks were trying to find their way out of the Executive Office Building recently and came to an un- marked elevator.- - "I think this is the wrong elevator," warned Seymour Weiss, a former am- bassador whose hawkish 'advice was rejected in the Nixon-Ford years. Nevertheless; they entered, pushed "down," and soon registered that look of pained surprise when the elevator went up. "The stoty ?of my life," sighed Weiss. "Good advice, never take it" -- Approved For Release 2001/03/06 : CIA-RDP91-00901R0130500010002-3 . II NEWSWEEK Approved For Release 2001/03/06aCElk-RIDR91-00WEFLOgelte02=3"-"w Newsweek NATIONAL AFFAIRS The Making of the Cabinet t a glittering cocktail party in Los An- geles last week, Ronald Reagan talked about his first scouting trip to Washington as President-elect and how it reminded him of the story of the three men on an island in the path of a killer tidal wave. One of the three, said Reagan, retired to a mountaintop to meditate until the final moment. A second stayed below to cram all the earthly pleasures he could into his last hours. But Reagan identified instead with the third man?the one, he said, smil- ing wryly, "who surrounded himself with the best advisers that he could possibly find to see if he could learn to live underwater." Reagan will return to the Capital this week prepared, or so he hoped, to let the world know at last who his advisers will be. He has spent weeks in hermitic retreat putting together a Cabinet of safe, sane and heavily credentialed boardroom con- servatives?a hard job made harder by the onerous post-Watergate rules on financial disclosure and divestiture (page 28). By the weekend, Reagan had chosen nominees for twelve of the top fifteen jobs; eight said yes, two said no, two more had yet to be asked, and three slots remained wide open. But guessing the names proved a hazardous business. One media boomlet for Gen. Alex- ander Haig as Secretary of State began wilt- ing in the face of serious opposition; another for banker Walter Wriston as Secretary of the Treasury fizzled with the inside word 26 that Reagan had settled on someone else. The suspense as to Reagan's choices helped feed the illusion that America was somehow without a government at all in a time of danger in the Middle East, in ? Latin America and, most ominous of all, in Poland (page 38). Jimmy Carter, in ob- vious concert with Reagan's men, warned - the Russians in the bluntest diplomatic lan- guage against mistaking that illusion for Reagan's hard choices have been made harder by the tough new rules on conflict of interest. reality and loosing their tanks against the Poles. But a sort of end-of-the-line languor has in fact fallen over the Carter White House in its final days (page 28), and, in Reagan's self-imposed silence at the far rim of the continent, his still-forming govern- ment-in-waiting has had an increasingly awkward time trying to keep from speaking with a confusion of voices. Reagan nevertheless refused to be hur- ried at finishing his Cabinet--even when the flow of tips and whispers to the media began congealing into a single consensus list of the most likely to succeed. The col- lective profile of the new crowd, in these speculations, was conservative but not ideo- logical, with a heavy preference for what one head-hunter called "good managers from the private sector who know how to produce on the bottom line." Haig at State and Wriston at Treasury headed most of the published tip sheets for the four front- row jobs, though both were already sliding downhill. Caspar W. Weinberget, 63, once budget director and HEW Secretary in the Nixon-Ford years, was thought secure for an encore?this time as Secretary of De- fense. William French Smith, 63, Reagan's patrician friend and private lawyer, re- mained the runaway best bet for Attorney General. The consensus names for the second- tier portfolios were similarly worn smooth by repetition, to a point where their formal anointment may be an anti-climax. Rep. David Stockman, 34, the brilliant conser- vative two-termer from Michigan, seemed locked in for the Office of Management and Budget. William J. Casey, 67, an old Washington hand who managed the Rea- gan campaign, was thought similarly se- cure for CIA director. Thomas Sowell, 50, a black UCLA economist of rightward bent, was mentioned for Housing and Ur- ban Development, among other jobs. Sev- eral men holding campaign I.O.L .'s from NEWSWEEK/DECEMBER 15, 1980 Approved For Release 2001/03/06 : CIA-RDP91-00901R000500010002-3 Approved For Releas Reaga.1 or the Republican Party were said to be slotted for Cabinet work?Richard Schweiker, the retiring U.S. senator from Pennsylvania, at Health and Human Services; Drew Lewis, a Pennsylvania businessman and party leader, at Trans- portation; Bill Brock, the incumbent GOP chairman, at Commerce or perhaps a sub- Cabinet slot at State. Hash Marks: But some of the plums so confidently awarded in the inside-dope sto- ries were in fact in serious-to-terminal doubt at the weekend?among them Wris- ton's supposed posting to Treasury and Haig's to State. Haig, 56, has lately retired to private life as president of United Tech- nologies Corp. with impressive hash marks in military and civilian service. He was blooded in combat in Korea and Vietnam, schooled in Washington realpolitik under Henry Kissinger and Richard Nixon, and burnished brighter by a mostly successful tour as supreme commander of the NATO forces in Europe. His stock for State rose when ex-Secretary of the Treasury George Shultz?once the favorite?indicated that he was happy in private life. But Reagan held off in the face of storm warnings from the leaders of both parties in the Senate. Haig carries the heavy bag- gage of having served?and, some say, shielded?Nixon through the worst of the Watergate crisis, for all his well-publicized heroics at easing the President toward res- ignation in the final days. Haig acted as the middleman in arranging a series of FBI wiretaps of government officials and news- men; he delivered Nixon's orders to fire Archibald Cox as special Watergate pros- ecutor; he figured in the resistance to yield- ing the White House tapes; he saw the then Vice President Gerald Ford near the end and raised the possibility of a pardon for Nixon. Senate Majority Leader-to-be How- ard Baker privately warned that Haig could encounter flak in confirmation hearings, and Baker's Democratic counterpart, Rob- ert Byrd, said the general would come under scrutiny so "intense" that his nomination might fail. Mr. Clean: State thus remained on Rea- gan's open list. Treasury, by inside account, was not. Wriston, if he ever really did head Reagan's "A" list, had problems of quite a different sort than Haig's?the kind that might confront any man of wealth and cor- porate power contemplating government service under the new Mr. Clean reform rules. At 61, he is chairman of Citicorp and its subsidiary, Citibank, and has won a:considerable reputation' as a tough, entre- preneurial conservative with an active so- cial conscience. But his bank, the nation's second largest, is involved in a number of items well up on Treasury's agenda: the New York City bailout, the Chrysler Corp. rescue loans, the contention over Iran's fro- zen assets. Wriston at last count held 104,499 shares in Citicorp, worth more than $2 million?and with Reagan's opera- tives erring 9towievedIfien; Reietis 0 John Marmaras?Woodhn Camp & Assoc. Wriston: Were his assets a liability? James D. Weson?NEwswees Best bets: Weinberger (left) and Smith The flak-catchers: The Aliens and the Haigs at a black-tie dinner in Washington John FtC3r3?NEWSWEEK NATIONAL AFFAIRS be forced through a painful divestiture to avoid the mere appearance of a conflict. The delays in naming a Cabinet or even a single, strong press secretary had their cost; a babel ,of leaked transition papers and middle-echelon policy brainstorms found its way into print and was treated as Reagan writ. The last straw came when Ray Cline, a Reagan adviser from George- town University's Center for Strategic and International Studies, suggested during a trip to Asia that the new Administration might reappraise relations with China and upgrade U.S. contacts with Taiwan. In the answering thunder of outrage from Peking, - a memo issued forth frOm Richard V. Allen, ' the likely national-security adviser in the Photos by John Frew 5?NewswtEx ? --Reagan White House, urging vows of Signing the big budget reconciliation bill: The message was, I'm still the President' ...:silence on foreign affairs. "The usual dis- - - .7.claimer of not speaking for the President- ` ? Carter's Final ? may not be enough," wrote Allen. immy Final Days ln some cases a meeting 'postponed' may trouble avoided." . ? :? But Reagan held to his better-safe-than- sorry pace, retiring from public view to his home in Pacific Palisades, running the 'Cabinet search by conference phone and = browsing through a book of past Inaugural - .speeches for inspiration. His people ex- -, -pected him to start naming names in small .,.-,....clusters on his return East this week? .-ra journey that will begin with a visit to New --York and end with a? walk through :the. White House with Nancy and her :decorator to plan for the no longer distant day they move in. ? ' PETER:GOLDMAN with THOMAS M. DeFRANIC, " _ELEANOR CLIFTand HOWARD FINEMAN in Wash- ington and MARTIN KASINDORF in Los Angeles _ - Not too long ago, it was the 'center of the political universe. But as Jimmy Carter's days in office dwindled to a pre- cious few, an eerie quiet descended on the White House. The phones weren't ringing nearly as much as they used to, the normally crowded press room was deserted, and even the President himself had taken to ducking away for uncharacteristically long week- ends at Camp David?ordering up his Ma- rine One helicopter last week for a once unthinkable Friday-morning departure. Most administrations go through just such a lull in their final days. But with major crises on the boil in Poland and Iran? and a series of nascent ones brewing in the Mideast and Latin America?the nei- ther-here-nor-there uncertainty of this in- terregnum worried some White House aides. "There's a general feeling of anxiety around here," said one, "that foreign ad- venturers might use this period to do some- thing they wouldn't otherwise do:' Carter thus found himself forced into the embarrassing position of having to re- mind the world that he was, after all, still President--and would be until Ronald Rea- gan was sworn in on Jan. 20. He jolted the lame-duck 96th Congress with the an- nouncement that he would veto an essential appropriations bill that carried an amend- ment aimed at blocking the use of busing for school desegregation. He also laid on what he hoped would be rnediagenic cere- .....t, ,, ..:;4,',""'"';';',-2..]..1.',f ",'"'.''.':.'.'!%:',-r-. ' if..:"-'''': "--.7-'? -'-"- .-r-' - --r- : '..'..-.'" -...-- , - . :..,---!--7--..--, - -- --... --- --, -- -.. -).6..'*'.'1?-?,?-;:i37.7,,I.., --,, ? ?'7::?=itl..''''' -',..'"?-,: '; e'?4..-- . : -. ? ?:'. gan's business -world nominees...-.And it may take wholesale aterate.:-Hangup.:.--,-,.:';:l divestiture, a baby-and-bathwater unloading of investments, ' '',-., ?7.--,---,,, -,, -',...., -? - ;-;?:;:.', ', i.... for wealthy appointees to avoid conflicts of interest under - - 1,,,, ?``'e???*,-...--s' .---,',."-?---. k ??? - - ?-? ,-, '.-,--.? . " -. . ? dauntinglie*Of papersvorkiii Fred Fielding'S Wash- the new law. "You're no longer able to insulate yourself by ... ,.....,:---... - . 1 -Pingtori-ciffice is a legacy of Watergate?a mountain of conflict- - setting up a blind trust," a senior Reagan aide complains. ,..:z.v. . Of4iiterest regulations;consent forins, and disclostire require::,:-There arc also security checks, fingerprinting and a host of .2 . _:. ? merifrliFieldingaiimielfa?Waterga.t.eVetei-ari as onetime deputy' 7 ;:.;: pointed questions about past and present associates. Says one ? -- t&White HOUSeCainis-elJolitiDenn;LiesPtniiible for eXplaining ,:"!;'' revieWer, "We're just trying to minimize surprises.". .4.- ? 'alLitO.Wotil. 4-be;-RE4a.a. 4PI3-.6,ii4,s. '#-s-'Par-,..':.',.'1;-':::isr'i:.---_-::,.,57',:r....-.7...''...:..,..:?j:"4--.'4-4,..-,.:.All this makes the checking process as deli- .W... - -,--;,...--, or,-aliiiiiplet.eilaiCal-:kreening prodesS;7i7eo":::,:'i;P;e411.,ne.,Tfisp:i'f!anj,:h.nrillfs? ,._:!;:::':Cate as it is cumbersome -!!That's not to say -.. , o'idelon. katitandiaY;.!Ohni.YGoirr -;:.-'s-erivorSi,"7.-,-3 .., it's necessarily good or bad,. but the no-..; says One insidet;itTherd'areuSu.ity.sonie eX.--..c4 '.. question that it really slows, dawn the proc- 7- pIetiveS..7.,A.s.:!'at4=restilt?ztheivhole-,.:SeleCtion _ ',. ess," says Reaganadviser Caspar Weinberger. prOCFSs'haS begaii'!.tii..take' much longer ,than .11 -:..Gone are the clays when -a Cabinet choice .. experteit :Igliela-Wi'are'VerY,..liariWand.Ty?.erY1 ... , could have a .talk :with his wife arid deliver inhibiting`,",..Sayi;Chiet.Eit,-,,g4khdid,-iiiii*:- aefL4 -)ais answer the following day.: Now, says Re. a-- :... 4 '.1c'endletort.Jaines.41-T,agree -in': principle;.",bnill -.- gan counselor Edwin Meese, "he has to sit.--.. gt.ttiAk'thiY-.3'areeierteacting,2tO7..Watergaii 4 ' down literally With a lawyer from the tran- ii-? Yst-elia2..r 00 4 .f44.t4.7*,41--11-41e.":4M .: . e:sitiori, his own lawyer an , a-banker and in ac- ,r chief 'aiiiiingthe;Stiniibling.r.lilOCkS.'ts'Ythe-:, ,...- ? ,couritant to figure out how he can comply , 7 ? 97i -,Ethics in Government Act;;Which-'re-'-' :1With all the terms." And recruiting govern- '.. criii.ea'bfficialiti:Iiiiiikeiweepiing:finiiiciat iiis--2ii -zment -officials will get tougher -still, Fielding : - - elm-4e ariiiiii:Ohibiti foinier bUreaucrata from ','It .. suspects, when. the selection 'process reaches ..-.. , , contacting etr. o agencies or one year a er the sub-Cabinet level?where public service -:- eaiiing the Wverament f jObs industry :7- ..: largely lacks the incentive of -i title that "your lie-OW- TR00011,000100024;;:-:,---,L--; t.t4;--'Altk'ti**,-M.,4aK4w 17 ?,,--,. - !4,,11:Fi'-',"--Siti.-.11-:--iit!..-,:r4st.....71t1.-_-z-ctu-,4,--- .:..-V?7::.:t:-...... monich; for thApptipmect Eo bill and a precedent-setting budget "rec- onciliation" package. He had the State De- partment working overtime to negotiate an end to the hostage crisis, and he personally warned the Soviets to stay out of Poland. Even so, Carter continued to have trouble getting his I'm-still-in-charge message across. Though he seemed likely to get his way with Congress, the media virtually ig- nored his bill-signing fete, the Iranians re- mained as balky as ever?and perhaps most symptomatic of his suddenly diminished status, aides had to phone up reporters to make sure there would be someone in the White House press room to hear press sec- retary Jody Powell issue the President's statement on Poland. 'Deep Funk': Though Carter himself maintained that he was "reconciled" to im- pending retirement, White House insiders told a different story. The vicissitudes of lame duckery, they said, had left him dis- pirited and resigned. Where he once seemed to relish testing himself against the rigors of the Presidency, Carter was now putting off whatever work he could. "In almost every conversation," reported a staffer, "he'll say, 'Well, that'll be a problem for the next Administration'." In part, his new- found passivity followed a gentlemen's agreement with Reagan not to pre-empt :the President-elect's hand in any major pol- icy area. But it also reflected his own "very, very subdued mood," as one aide put it. Said a close colleague of the President's: "Rosa lynn and Jimmy have been in a deep funk since the election." The one bright spot in his fading Presi- dency was his gutsy eleventh-hour battle with Congress last week. The set-to was spurred by the passage of an appropriations bill that included an amendment prohib- iting the Federal government from initi- ating court suits to force busing of students. "I cannot allow a law to be enacted which so impairs the government's ability to en- force our Constitution," Carter had de- clared?and when Congress sent the bill to him late last week, he said he would veto it. Conservatives on Capitol Hill vowed to include the same anti-busing provisions in the continuing resolution Congress would have to pass to keep the government functioning. But at the weekend, the lead- ership was trying to work out a compro- mise. And White House staffers?knowing that Congress couldn't adjourn without a continuing resolution in 'place?were confident that the President would prevail. "We've got nothing to lose," crowed one. "It's them that can't go home, not us." For the most part, however, Carter's final days were filled with far more pain than pleasure. What seemed to hurt most was the evident delight with which Washington was preparing to greet his successor. The enthusiasm generated by Reagan's recent tour of Capitol Hill so rankled Carter that he ordered up a lengthy report on his tran- sition activities four years ago. (The find- Leaving for Camp David: A yen for longer weekends ings: as President-elect, Carter had met with Congressional leaders no fewer than eight times.) Carter was also infuriated by a spate of newspaper and magazine articles suggesting that the Reagans would restore to the White House a cultural and social grace that had been absent for the past four years. After all, the record showed, Jimmy and Rosalynn had welcomed to the White House such cultural luminaries as cellist Mstislav Rostropovich, pianist Vla- dimir Horowitz and jazz trumpeter Dizzy Gillespie. Despite his battered ego, Carter shed no tears in public. At the start of his last sched- uled Cabinet meeting, he tried to dispel the gloom. "I thought I'd be the first to Brzezinski, Vance: The debate goes on UPI UPI 015040 10002-atie outcome of the election," he deadpan- ned. "We lost." Then Carter served notice that he did not want any "sentimental" or "maudlin" testimon ,als from his Cabinet officers, but the ses- sion quickly turned into a poignant review of the Carter years. Concluded V:ce Presi- dent Walter Mondaie: "I am certain that history is going to deal far more generously with the Carter Administration than the voters did This fall." Carter shared Mondale's con- viction?and in place of what would have been his final State of the Union address to Con- gress next month, he planned to deliver a kind of valediction explaining just why. Caustic Analysis: rhe Pres- ident was not the only mem- ber of his Administration eager to provide a personal perspec- tive on the last four years. His former chief aide Hamilton Jordan surfaced to give a series of interviews arguing that Car- ter's defeat at the polls was the price he paid for confronting tough issues. And a fortnight ago, national-security adviser Zbigniew Brzezinski offered his personal assessment of the Ad- ministration's foreign-policy r ecord?a caustic analysis that last week provoked a sharp response from former Secretary of State Cyrus Vance. Brzezinski was bitterly critical of what he said was the nation's failure to "compete assertively" with the Soviet Union, and he blamed Democrats burned by the war in Vietnam. His own efforts to increase American military strength, he said, had encountered "a great deal of opposition within the Administra- tion." Retorted Vance: "The charge that . . . there was unwillingness to consider the use of force if necessary when our vital interests were concerned is hogwash." Brzezinski, he added, was overly fond of "the use of military power or bluff." The spat not only represent- ed the continuation of a long- running debate between the two foreign-policy experts, it also seemed to typify the sort of divisive sniping that had crippled the Carter Adminis- tration from the start But with just five weeks left in his term, Jimmy Carter seemed content to leave the resolution of that old conflict?and most of the other unanswered questions of his Presidency?to history. ALLAN .J. MAYER with ELEANOR CL1FT and THOMAS M DeFRANK 1,, Washington Bruce Hoertel Approved For Release 2001/03/06 : CIA-RDP91-00901R000500010002-3 Approved For Release 2001/03/06 : CIA-RDATSWIROO kitT LE. ON PAO'S THE WASHINGTON POST 15 December 1980 1?aivland Evans and Robert Novak' The.-Sub-Ca-bin)ei "A really terrific appointment!" gushed a senior aide to President Carter upon hearing that Merrill Lynch's Donald T. Regan would be' Ronald Reagan's secre- tary of the Treasury. Small wonder. Dan Regan not only :personally contributed the maximum.$1,000 to Jimmy. Carter's campaign, but supported his administra- tion's economic ventures:- ? '-"f" ' -t"" In contrast, he: played tiO Psirt in Ron-. ald Reagan's campaign and did not back his daring tax-reduction program until being named to the Cabinet. Even then, ? the prospective Treasury chief stumbled; Regan seemed-tot-Make' tax , cuts condi-- tioinal on budget cuts, 'which never has been the president-elect's policy.- See. peculiar an --appoiritrnent to the Treasury ianio-aberration but flows natu- rally from Reagan Cabinet-Making. Instead of seeking men oi4ideas or just jdeological compatibility with Reagan, the president.- elect's inner .circle stressed managerial _ . - skills and status in the establishment. ? -This results in a Cabinet ill-equipped for the radical reform of economic, social: and national Security policy intended by. Reagan?save for Rep. David Stockman. as budget director . and, presumably, Gen. -Alexander-. Haig .as secretary of ? state-Consequently, the president-elect now maY be forced to imposa sub-Cabi- net officers- on, his Cabinet: members to carry out those reforms. : ? Reagan himself is responsible for some ? peculiar choices. Caspar Weinberger, the s secretary.of defense-designate who dur- ing the campaign resisted Reagan's for- ...milt of rebuilding the nation's defense no matter what: the cost, is intensely ad- -mired by, the president-elect. William French Smith,....the attorney general- designate.who as a University of Califor- nia regent supported racial quotas found abhorrent. by Reagan, is the president- elect's personal lawyeite But .the president-elect did not even I know Regan two weeks ago. His name was surfaced by that artfully bubbling backroom maneuverer, k,,1, !them nasey tcampaign chairman and now CIA direc- tor-ctesignate). Casey is Don Reeans friend and, 1,vhaTs?more, his New York law ?firm receives fat fees from Merrill Lynch. Reoublican politicians who did not take, Regan seriously as a contender for the Treasury underestimated Casey. .. For Don r&gan to Yecoine a senior Cabinet member in a Republican admin- istration amuses Wall Street insiders, who always figured: the :self-described ."lifelong Republican" was angling to give the-bipartisan touch to a Democratic !Cabinet. The $1,000 personal contribu- tion to Carter's campaign and the extra $14700 from Regan's Merrill-Lynch political action committee were not the end of his 1980 Democratic dalliances. He personally contributed to Sens. Russell R. Long of Louisiana and Daniell Patrick Nloynihan of New York. Recipi-! -ents of Merrill-Lynch PAC funds are a! liberal Democratic Who's Who: Sen.l Alan Cranston (Calif.), Sen.-elect Christ Dodd (Conn.), Sen. Thomas F. Eagletonn (Mo.), Sen.' Pat Leahy (Vt.), Sen. Gay- lord -Nelson (Wis.), Rep. Thomas Dow-i ney-(N.Y.), Rep. Robert Eckhardt (Tex.),1 Rep... Wyche Fowler (Ga.), Rep. Henry Reuss (Wis.) and many others. Since Regan and the Merrill Lynch PAC also contributed to many Republi- cans, this can be dismissed as big-busi-1 ness- cynicism playing both sides of the street. More troubling is the esteem for Regan at the Carter White House for' supporting the Carter economic policy (including wage-price :guidelines) and-I not :supporting Kemp-Roth tax reduc-1 tion, embraced by the president-elect. Even after Ronald Reagan's nomina- tion -for-president, lifelong Republican Don Regan could not endotee the party'sj tax position in a statement submitted! July 25 to the House Ways and Meansi Committee. That statement and com- ments following his Cabinet nomination betrayed the need for a cram course in: supply-side economics. ? - Interviewed on the. CBS Morning! - News the day after his unveiling, Regaa! was asked whether he would still push; .tax:Cuts if Congress resisted budget cut..41 - His reply: "I think the thing has to be done as a package." That confirmed the; absolutely unfounded suspicions of thel :Wall Street smart boys that the presi- dent-elect Was abandoning tax cuts. - Why was Don Regan preferable to I ' New -1-York - City blisinessman Lewis1 'Lehrman, who is a loyal tepublican, at deVoted Reagartite and a brilliant stu- dent- of supply-side economics? Lehr- man is too young (42), too unknown, say Reagan .insiders. But why not, then,_67s year-old shipping tycoon Peter Grace, who also is loyally Republican, Reagan--; ite and supply-side? Prone* beCausee 1.3...ilKasey did not back him. - - ? Apprehension about l'easiiry policy would be eased if Lehrmaa (who knows, .! likes and admires Don Regan), were ! named deputy secretary. Similarly,. a de- fense-,expert would help Weinberger as deputy at the Pentagon. But Weinberger stunned the defense community when he advised that his tentative choice is .1 Trunk Carlucci, a non-ideotogicais civil . servant who is now President- Carter7! deputy (JLA director. . - -I The president-elect has premised visi- tors he will make sure -sub-Cabinet offi- cials fit his policies. Since he set no such requirement for Cabinet members, pick- ! ing the sub-Cabinet could determine ! what happens to his radical plans for transforming national policy. ? - i ce MO, Field EmterpeLee I - Approved For Release 2001/03/06 : CIA-RDP91-00901R000500010002-3 Approved For Release 2001/03/06 : CIA-RDP91-00901R00050 TIME 15 December 1980 AR T I C LE ATP ZIkal..9 ON PA GE lb -I? SIAIINIL Reagan struggles to form a Cabinet able?and willing?to serve CIA Director. William J. Casey, 67, Reagan's blunt-spoken campaign manag- er, is the clear front runner and almost I certain to be appointed?if a Haig drop- out does not cause him to be considered for Secretary of State. During World War II, Casey was a crafty and inventive chief of Oss intelligence operations in Europe. As Nixon's Securities and Exchange Commission chairman, he was accused of complicity in some scandals; though the charges never stuck, they may be revived in confirmation hearings. Although a ded- icated . conservative, Casey is flexible enough to win praise from liberal Dem- ocrats, including Historian Arthur M. Schlesinger Jr.: "He'd be a good CIA chief. He's not a frenetic hard-liner." EXCEI1PTED For CIA: William J. Casey? Approved For Release 2001/03/06 : CIA-RDP91-00901R000500010002-3 STATI NTL A:21-ZAI-LID Approved For Release 2001/03/06 : CIA-RDP91-00901R000 ARTICLE U.S. NEWS & WORLD REPORT 15 December 1980 :271.1 PAGli. Ronald Reagan won't take over until January 20, but he's already confronting big . decisions on business, global hot spots---with more to come. Six weeks before the start of Ronald Reagan's Presidency, the problems he svill,inherit were piling up fast_ As the President-elect prepared to announce his first cabinet appoint- ments, bad news kept bombarding him. Demands grew for tough econom- ic and foreign-policy decisions to be rnade?or signals -given?even before his inauguration on January 20. At home, signs spread that the econ- omy was dropping back into recession, undercutting chances that Reagan's program for recovery would achieve quick results. Abroad, these developments were crowding in? ri A huge Sovislt military buildup around Poland raised fears of a Russian invasion that could renew the Cold War. The stability of the Middle ? East was strcelptiblfenied POT cReillyaise tween Jordan and Syria: Fighting be- tween Iran and Iraq showed no sign of chinleanina "It looked easier in the game pian." vador stirred renewed concern about a leftist takeover in the Latin American country. is Peking issued a shrill warning that U.S. relations with China could be damaged if the new administration de- cided to appoint an envoy to Taiwan, as one Reagan aide urged publicly. Despite these difficulties, the Presi- dent-elect's main concern in early De- cember remained selection of the cabi- net that will help him grapple with the country's woes. For key posts, names flew in all di- rections. Some aides were promoting ex-Nixon official Caspar Weinberger for Secretary of Defense; the former commander of the North Atlantic Treaty Organization, Gen. Alexander M. Haig, Jr., for State; New York bank- er Walter B. Wriston or New York stockbroker Donald T. Regan for Trea- sury and Reagan's lawyer, William. French Smith, for Attorney General. Also, trial balloons were going up for Reagan's campaign chief, William Ca- sey, as director of the Central Intelli- gence Agency, and tor Itepresentative David A. Stockman (R-Mich.) to head the Office of Management and Budget. , Once the cabinet is picked, Reagan's attention will begin shifting back to his 21014/0300atieVAIRD-P91 LOOM the nation from its economic doldrums. A few months ago, it appeared that tha annnnm ilri ha vv.11 nn tha percent on December 5, inflation was running at 13 percent and unemploy- ment stood at just under 8 percent. Nor can Reagan count on the econo- my improving in the near future. A new analysis by the Economic Unit of U.S.News & World Report indicates that the real output of the nation's goods and services will drop in the fourth quarter of 1980 and decline further in the first quarter of 1981. Reagan's basic plan for reviving the economy is to couple big tax cuts with spending reductions?moving toward a balanced federal budget by 1983. But the worsening economic picture will make it much harder for him to control federal spending. What's more, many Americans appear unsure that they want a tax cut. A Harris Survey re- leased on December 1 showed that a majority of those sampled oppose a re- duction in income taxes, tearing that such action would only stoke inflation. Troubled auto industry. One other piece of bad economic news came from Detroit. The auto makers report- ed that sales for the final 10 days of No- vember fell nearly 18 percent below the same period in 1979. At the same time, imported cars showed big gains. Detroit's continued slide could con- front Reagan with one of his first di- 1R0005000400024er to let U.S. auto makers rescue themselves or lend a hand and risk a trade war with Japan nwar th 1.?PIA TM !IS ITC ; rra ..,"1?40 A.I?m?-ti,ne? STATI NTL Approved For Release 2001/03/06 : CIA-RDP91-00901R0 DES MOINES REGISTER (IA) 14 December 1980 fyiuspanuted a Strange how the foNs who want to get the government off the backs of the American people want to put the government on the backs of foreigners. Presi-, dent-elect Ronald Reagan's tran- sition team for .the Centrallael- li,ncy wants the agency to put more emphasis on "covert action" outside the United States. The term is a eup-h-iinism-for meddling in the affairs of other people. At one time, the CIA had hundreds of covert-action projects in scores of countries. The actions included fomenting coups, planning assassinations and conducting paramilitary Op- erations. The CIA wisely de-emphasized covert action. The Senate Intelli- gence Committee in 1976 found that "the evidence points toward the failure of paramilitary activity as a technique of covert action," and raised questions about the effectiveness and pro- priety of covert action generally. Americans call it "subversion" when foreigners try to undermine their government, and they rightly resent it. They should also resent secret American efforts to subvert foreign powers, including demo- cratically elected governments. Iran's resentment: of the United States is a direct consequence of 710? this country's history of covert action in Iran. Americans are appalled at the Soviet invasion of Afghanistan and. the threatened invasion of Poland. Invasion at least is overt, arnrthe Soviets can be held ac- countable. Covert activity may be just as 'effective in putting a government under the thumb of a foreign power, but there is no . public accountability. Former Secretary of State Henry, Kissinger testified that one reason he had the CIA conduct a war in Laos was that it could be done in secret. An insidious feature of covert action is that Americans may be victimized by their own govern- ment. Phony stories planted in the foreign press as part of a covert "black propaganda" operation sometimes are dis- seminated worldwide and deceive readers in all countries. -Secrecy and covert action go hand in hand. When Reagan's transition team calls for a ! step-up in covert action, it means it wants more secrecy in the exercise of government power. That's not the vision Reagan held out during his election 1: campaign. His Amite, for CIA director, William Casey, should0 disavow the recommendation for stepped-up covert action. Approved For Release 2001/03/06 : CIA-RDF'91-00901R000500010002-3 STATINTL c_.1 For ReleaseiZORIA-MRpti#P91-00901R000500 cose By David-Hoffman Inqiiirosington Bureau ? WASHINGTON - . President-elect Ronald Reagan had not met personal- ly with Pogaid.T:Regan or Malcolm Baldrigei,before:he nominated them; - for positions lathe powerful-cabinet, he envisions.. .t Instead; he. talked_ .only; by- tele:. phonetbRegaii;,his'thoice.for Trea sury4i,secietary?.-And ..Baldrige,. his. . nominee forcbmmerce secretary.. As he assembled- the...first _half his cabinet Thfirsday,.Reagatrprovid-'.. ed yet: another' clear' signal that he plans to delegate authority generous-:: ly to subordinates, governing from a . slight distance rather. than at close. range. For example;.the president-elect felt- nd'Urgency fora getacquainted meeingwith Regan, the New York stock brokerage executive who prob; ably will become Reagan's chief spokesman-nri.his, most difficult and pressing problem ? the economy_ instead.. Reagan .was-content to :Hsi- ten to the advice, of. his- most trusted, advisers-,. and, ,particularly;x,to his chief 'skWhite'..House. counselor-to-be,. Edwin Meese3a.*.itW;r2.,-r**!..7.. making his. Rea; gan,soughtto-reinforce, the; imprei=. sion.tliat,heplans.fil haVehisr.cabineti funetionas it_did he was governor of California''.--4'.aseworking group that. wilrgdeaVn frequentIY, ; withi,thetroublas:thai confront .th , !J'tteyllinrerriy philosophy, and my - belief:in-:cabinet government," Ree7 gah4Saict....of his'appointees:.:-'1.,arni '.4,c4-A0,19.44Pt:.!4r1;:9,Y.F34114,;,11k1 To accomplish this, Reagan's first- cabinet ? selections was almost ?uni- formly managers in the - corporate- tradition. The eight nominees an- nounced .Thursday -- contained no- right-wing ideologues but, rather, a cast of decidedly pragmatic execu- tives and politicians... - - ? ? - - - In some cases, such as CIA director-. designate William .1. Casey. the nomi- nees were valued for their loyalty to the president-elect. -But in others, Such-. as Regan and Baldrige, they ? were qnalifietuor the cabinet more ,by. their-success in managing_ large- corporations. ? ..? :-. .:,. _ 3 i, -..- I By, inauguration Day. Jan-...2G,-aides say-that. Reagan .plans to have- in, place ' an --- inner-circle committee: within the cabinet to- grapple with, urgent matters before the president-, This. will include -the secretaries- of defene,. Treasury, state and several top White. House aides,. with Meese overseeing it. ? ..-- - ' With only half the cabinet named-, it already appears -some members will be the-dominant players in Re gan's-White House. If only by virtue of his broad government experience and Reagan's high regard for him,. Caspar W. Weinberger, chosen as defense secretary, is one who is like- ly to set the pace. ----? , ? ... _ -- --- .? In a move that could prove to be an- important asset to his administra- tion,./3eagan has, from the start, -in- cluded some astute political figure in the cabinet. Baldrige, a Connecti-;1 cut- industrialist, iss-a well-regardedi Republican Party-figure there.-- - ? i - Drew Lewis,. Reagan's choice for secretary of transportation. served a deputy Republican national chair- -man during the campaign and has earned high marks for political ex-. peruse _ - :-.}-----r? :,-.7. ,-;, ......-",,--4.-?,f_. With those advisers, Reagan could.; hope to. detect any early dissatisfac- tion-with his administration :? the kind of political-warning system that, seemed 'to elude the Carter Whitej . House during its first Vti years. Car, ter later found it necessary to bring, . in political types, such as Transporte, 1 tinn Secretary Neil Goldschmidt. - .-;.ti - . , Just as be did with a small world ng,-; cabinet in California, Reagan plans4 to place a large measure of authority, in the hands of subordinates. - ?? "It's going to be a delegated govern-,i rnent," said Verne Orr, a deputy tran-i sition director. Orr was Reagan's-1 finance director -in California fort five years after Wienber7.,er left tola. join the Nixon administration. - = Speaking to reportersat a breakfast: meeting Friday. Orr said the presi-N dent-elect-Would- give his cabinetv. members -"loose reins"- -but, at the, -same time, they are watched by Mr- Meese for their performance." ' five -years of working for -Raz] nald Reagan; he never called me- and.- Criticized me, and he. never,. called:me in. and praised me,"LOri-; added. "Meese is the one.," 4 0^4-' Approved For Release 2001/03/06 : CIA-RDP91-00901R000500010002-3 Ni YORK I ILY E45 A,ppiroved For ReleassoM1103,,? 6 : CIA-R641-uuuu1R0 , Ron 's CIA choice faces intelligence test BY FRANK yAisl RIPER , Washington (News Bureau)--To re- cently nominated CIA Director William : .1. Casey?lawyer, businessman, author and chief , of...secret intelligence for :Europe- during World WaryII?there always Will be a-place in his outfit fora good spy:- But he doesnl particularly like the word:- ??? "'Spy' is-.a:.:word that has a Iot -,-,Teonnotations,"'he said in 'an interview ;:.with-.the Daily .? News,,:"l :would say. ;-;there'll- 'always :be a ...place for the ,:?...!pbserver,..7! ? a ta.rge-framed-inan With- py-gray hair and-.e. strong New,york?. -4accent;' the. result, of -.growing up in j-Queens; most recently was chairman of the Reagan,:reelection campaign. He - became top man after 'John :Sears Was _ s...bounked, and Casey faced .the-taSk:of. reorganizing n early - bankrupt carri2 '..paign. He emerged from the job 'with i the confidence and respect of those in the Reagan high command:Land -with ? his boss victorious by a landslid&::--- . Casey, 67; says; "The best thing William Casey-7-heading for CIA.. is run an organization;-whether its a , 7 ? campaign, a commission (he. chaired CASEY ALSO IS eager? to 'confer . the Securities and Exchange Commis- with congressional leaders on reinov- .sion under' President-Nixon) Or an ing.,-.what he terms:- "impediments to economic portfolio at the State Depart- collecting intelligence -c' ,c ,? e :2--"There's legislationT?up there :font "TM THE HIND OF guy V,rlio can go "-Capitol Hill) that would do that and I'd" _ _ in,- assess morale in an organization be most interested in that." He said he- and make it - I would not elaborate Until 'after m?Yeetin ,? . ? : ? with lawmakers. , ,? -: "The-first-thing' to do open the: . To Casey, knowing what the other ;door -and let` them know- you're in- side is up to is paramount to sound terested in them and their problems, policy-making. -"Without good intelli- : that ysin know they want to do a job ,gence, you're not going to have' arms and you want to help them do it." . control agreements, you're not going prospictive.director of- central': to be able to scale down your-arms, intelligence, ;Casey ris !unwilling to.: you're not going to know what you " criticize his predecessor, -Adm. Stens- -- really need in Military strength." ? field Turner..But he notes that "there And, he- adds, "in an increasingly is almost an infinite degree to which an interdependent economic world, I think intelligence operation can be improved. it's important to know what forces And I hope ,IwiIlfind,that Adm. there are that can jeopardize not only Turner had done that to keonsiderable your military security but your. pros- degree."- perity,.as well." ? .,:-7 . -; Casey favors reestablishing the Pres- ident's Foreign -Intelligence Advisory _Board, a group '-'of nongovernmental- experts charged. with, overseeing the. ; ;Intelligence comniunity. President Car- 0 len abolished .the board by :executive - .order on March 5,1977, contending it 'duplicated the-work of Other offices: ,But C.asey says," I pink 'it. was ,a very -useful bailY ---I thinkLwould, recommend thatit he revived."' Approved For Release 2001/03/06 : CIA-RDP91-00901R000500010002-3 CASEY'S MANNER can be abrupt; his answers, noncommittal and blunt. At times, he has the air of ?I man who has. made it and does not sufier subordi- nates gladly, if at all. But that can , change midway into a conversation, and that side, associates say, is the real_ Bill Casey. - Casey's war experience is his only background in -intelligence, but it is formidable. Commissitned in the Navy during the war, he found hts eyes too weak for sea duty. He man.iged to get into the Office of Strategic Services--- the precursor of the CIA?and wound up as chief of secret intelligence for Europe. He coordinated the placement of intelligence and sabotage teams on the continent. ? The experience left Casey with a profound regard for the "observer" on the ground, be the observer a scholar gathering:, information 'from public' sources, a businessman gleaning facts on industrial-production or an under- cover operator?the spy__ 21,11lT I C12, API)E3i.n1) WASHINGTON STAR STATIN rAtiniftbtetlFor Release 206110aRicra:EPIAADP91-00901R0005000 ?diOns Get Nitionwkle PraisE Businessmen Call Regan Good Choice Here is a 'roundup of reaction to President-elect; Ronald Reagan's first round of Cabinet selections, compiled by bureaus of the Time- Life News Service. ? ATLANTA *They're non-black; ? non-brown, non-working class and non-female,"- was the reaction of Dr., ? Joseph LoWery?-:president of the Southern. Christian Leadership; to *the Cabinet nominees of Ronald Rea- gan. "The brightest thing so, far is that they 'don't 'seem to repretent, farright or even the new right, .:and..I suppose that's a goodfsign." Lowery "44io,^.joineVother civil rights leaders in a meeting`with. Rea- 'gan Thursday, 'Said,,the president- elect "hedged" when asked about appointing a black Cabinet member. "I'm a" little 'concerned he may have the dubious distinction of hav- ing the first all-white Cabinet in a good while," Lowery added. He said he could not comment more specifi- cally until other Cabinet members were announced. In Columbia, S.C.'?. attorney Harry Dent, a former aide to Richard NiX- on,-hailed,the selections and Coin- mented,:"I hope he'll step.up tO:the , , plate with:,Haig." ? PananCity?Fla., auto dealer Tommy Thomas, who headed Rea- gan's Florida campaign, approved of the Cabinet choices, but said he was I "shocked and disturbed". William Si- mon was nothichided. "A'-tremen-1 dolts number:, of: conservatives I across the country ,haye read , Si-1 man's book and believe fervently! in him," Thomas said. "The new man may be just as good; but we thought ; Simon had- written a, geod.I.Ire-1 scription for"getting us out' of the, dilemma we're in..I really think we needed him." '- ? ? -? ? Marc_LOinson New England , BOSTON ? 1Olid. "Moderate!' "Ex- , penenced." witk,characNVAqc re- serve,. New 'EriglandersOiave responded positively to president- elect .Ronald Reagan's Cabinet choidekArea Republicans decrared that these eight.nien augunwellIcT the Reagan 'admiriistration,dak- I -" state Rep. Andrew Natsios, the state'sNcirtheast-'' - - 'So far," enthused Massachusetts ' Republican Party chief, "this is one! ,of.ithe strongest Cabinets in dec- ades" Singled out for particular praise were Defense Secretary-designate Caspar Weinberger and Treasury Secretary ppminee Donald Regan. Of Regan, economist Otto Eckstein lopined, "Ilet a highly qualified per- 'son who understands the financial 'system. He'sl, been an outstanding leader and executive." , Even the traditionally liberal- minded Boston 'Globe gave the par- tial. Reagan Cabinet a, nod of -approval. "There is no reason they cannot performi their function' with ccimpetence, " editorialized the glObe: 14While taking obvious pride in the ?fact that five of the eight are Har- vard graduates, observers are con- , cerned that neither,.women nor minorities have yet found represen- tation on the top echelons of the Reagan administration. --Joelle Attinger Midwest CHICAGO ? So far, community, leaders' here representing areas most likely to be affected by Rea- gan's initial Cabinet selection are reacting with the same moderation characteristic of the appointees themselves. The American Medical' Assod- anon attempted a benign en- dorsement. "The AMA has had a longstanding and productive rela- tionihip with Sen. Richard Schweiker, and we look forward to continuing that relationship," said Toba Cohen, public relations direc- :tor. And that's all she, would say. The American Hospital Associ- ation, however, said a lot more. President Alex McMahon says 'Schweiker has the, knowledge and \expertise to tackle tough issues fac- ing the health care field. "Sen. ?Schweiker is an individual who re- jects simplistic solutions." Continental Bank President John. Perkins said of Donald Regan's selec- 'lion as Treasury secretary: "Regan , is a man of great personal integrity. While oneimay not agree with him on specific points I'm Sure he will examine each issue on an objective -basis- for this country's best. inter- est Approved For Rel '44 A4, ..?Sheila Gribben NEW YORK.7,-, From Wall Street to the city halls of the northeastern industrial states of, Pennsylvania, New York and New Jersey, there was near unanimous', approval of President-elect Ronald Reagan's' first eight choices for his Cabinet.' The Wall Street. Journal editori- alized, "a pretty interesting bunch." The New York Times added, "so far, so good ... Formidable talent." "Here in Pennsylvania, we're thrilled having two of-our own so to speak in the Cabinet," said Mike Krauss, state director of the GOP. "Donald Regan is an excellent choice. His career is unparalleled in the investment industry," said; Harry A. Jacobs Jr., chairman of the Bache Corp., from his Wall Street k office: , And another banker, who had worked with William Casey in ? Europe as, an OSS agent during ' World War II, rendered the opinion: "I'll bet you $10,000, with Bill Casey running the CIA, you won't see the United States getting caught with its pants down as, damn it, we were in Iran. ? ?Dean Brelis IlVest? - LOS ANGELFS California Re- publican Chairman Truman. Camp- bell says, "I have heard no negative vibrations although some people say they expected some different names. We have always seen Cap Weinber- ger as a fiscal personality oriented towards budget and finance and the Defense appointment appears a bit incongruous. There is no question that Weinberger should be in the Cabinet someplace, but the Defense job caught us off guard." Democrats are not so tolerant. Dennis Desnoo, executive director of-the California Democratic Party Says, "It is typical thus Tan A bunch-. of white male businessmen. Maybe with the appointment of Haig, we'll have.some discussion." , Equally 'unhappy - is Professor -Larry Berg, director of the Univer- sity of Southern California Institute of Politics, who says, "There were some who thought Reagan's conser- vatism was more moderate. But these appointments show he has no intention of diluting those things -he said, in the campaign and,when -he was- governor There is. a lot of hoopla': about these people being great. Me,..I'dbn't see. it. We .have 'reversed theiprocess. We have,geri- atrics in the executive branch and ease 2001/03/06 : CIA-RDP911SVOOLOgegtORM13 Approved For Release 2001/03/06 : CIA-RDP91-00901R0005 MEMPHIS PRESS-SCIMITAR (TE) 12 December 1980 STATI NTL e-""?-, Kea an s ir First ET6-ht t 'Ronald Reagan took a long time it thinking over his prospective' Cabi- :tie., and there were plenty of leaks - and public discussion about the can- didates. Thus there were no sur- prises in his first eight choices (and .c9ie hopes no clinkers either)..1 PBi boldest inove was to entrust thpowerful Office,of Management and. Budget tcr,yofing (34-year-old) Rep. David Stockman.. The Michigan Republican is Virm'advocate of tax ciitt and budget cutS5which may be What the -troubled economy needs. ng before he kneW, he was go- itg-Tto 0MB,4StoCkman.::rstudied the Current $632 -billion budget and pro- posed - p0sed- $26 billion. in specific cuts. It Will be a ';welcome change to have a bidget,'director ? who believes gov-' anment spendi:ag can be restrained ana.doesn't Consist only of "uncon- trollabl?. sacred, cows.1.- %Stockman should have an ally at the: Treasury,. where- the president- ? elect will nominate Donald Regan as secretary:- Chairman of. Merrill Lynch St-''Co.,- the nation'S largest stockbrokers, Regan lacks govern- ment experience: But he knows at fiist hand the destructive effect of Mflation:orCbusin.ess and the need to',-spur saying and investment. - An old pro in government, former 1241,dget Director and Health, Educa- tion' and:Welfare Secretary. Caspar er than, but workineno better than,. the Post Office. Reagan seems to have made a sol- id choice in sending William Casey to head the dispirite.Cispy way back in World War Ti, Cra-s-ey also has a background in arms control, a field in which the agency must ad- vise the president. Most important, ? he is a tough old bird; which he'll have to be if the CIA is again to ' produce first-rate intelligence. In selecting his close friend and personal lawyer, William -French Smith, to be attorney general, Rea- , .gan . may have erred. A pal at thel _Justice Department sometimes 'acts as the president's lawyer and not thei ,),nation's - top law enforcement offi-1 !cer. And when the president is too . Close to the attorney general, you 1 Can get political justice, which con- tributed to the downfall of Richard Nixon and John Mitchell. Reagan1 and Smith will have to be extra care- ful to avoid conflict-of-interest pit- ' falls. ' In 20 years as a congressman an senator from Pennsylvania-,-Richar Saaweiker showed an interest health issues. He soonmay regre that interest, for it and his Reaga ties are sending him to the Depart -ment of Health and Human Re sources, whose secretaryship is Nitteinbergerlivgoing to the Penta-,. :thankless,: discouraging.- -job 0:dit", Some', conservatives grumble Schweiker says he will reduce frau ;_,-::: -,,._ -k 1 that he knows nothing about de- *.:.: and waste. Once inside the door 1 fense but "Cap the Knife" knows HHR he won't have far to loo #itich'_abia-Utcutting fat out of pro-;;;k, Reagan also tapped Malcolm Bal-1 : drige, a Connecticut industrialist 4; - If the Defense Department is to secretary of commerce, and Dre Imake effective use of the additional Lewis, a Philadelphia area business billions Reagan:. promised, it will man politician, as secretary of trans Ineed Weinberger's cold eye when-.,,-partation.: Since the fate of the re '.the brass submits its gold-plated 'public does: riot rest on those/ ;wish lists. Otherwise the defense es-h departments, comments on their! tablishment will end up much costli- problems can be deferred. ; Approved For Release 2001/03/06 : CIA-RDP91-00901R000500010002-3 01R000500010002-3 1R000500010002-3 RIhe first eight choices for President-elect Ronald Reagan's agement and Budget; Drew L. Lewis Jr., Secretary of Trans- merce; William French-Smith, Attorney General; Casr W. 6abinet are, left to right, William J, Casey, director of the portation, Sen. Richard S. Schweiker, Secretary of Health Weinberger, Secretary of Defense, and Donald Regan, &Fere- MIA ; Rep. David A. Stockman, director of the (Alice of man- and Human Services; Malcolm Baldrige, Secretary of Com- Lary of the Treasury. UfWHOTO , CIS CIS CD CD CD CD 8 8 LL LL CD CD 2 2 itp pi-tweet FecieRelease 200ffiy?fo,pompp9i-wrimEtt05000 ON PAGE eagan presents J,' 8 me y;RaChelle Patterson' lobeStaff WASHINGTON resident-elect onald Reagan, in naming eight of his choices- for the Cabinet yesterday, stuelt.tn his pledge to, select persons ? who were successful and "do not want ?'a job in- government.",, ; atryesterday after- ncion's,.unvelling looked like a Wall Street '.'boarst: meeting.' For the most part,Ahose selected were Eastern-edh- cated, white,businessmen who don't need a job in:government. ,? Chosen for Secretary of the Trea- sury was Donald T. Regan, 61, chair- man of Merrill Lynch & Co., Inc., own- er of the country's largest investment firm. Merrill Lynch, Pierce, Fenner and Smith Inc. . ?: ' Caspar .W..Weinb&ger,. 63, vice . president of Bechtel Power Corp. and Reagan's finance. director when he was governor of California, wasi named Reagan's\ choice for Secretary of Defense. , -William French Smith, 61, Rea-- gan's personal lawyer and a member ? of his social circle, was selected for At- torney General. ?? AlLthree men,are expected to form the ntialeus Oran inner Cabinet that will meet ,frequently with Reagan to 'adVise.him on a range of issues.. ' ,Others, in the new President's pro- spective Cabinet include Malcolm Bal-; drige, 58, of, Connecticut, chairman , and' chief executive officer of Scovill, - Inc., 'designated to be Secretary of Commerce: Drew L. Lewis Jr., 49, Rea- gan's deputy campaign director and a Philadelphia management consul- ' tant, chosen as Secretary of Transpor- tation: and William J. Casey, 67, Rea- gan's campaign manager and former chairman of the Securities and Ex- change Commission, designated to be- come Director of the Central intelli- gence Agency, a post that Reagan has accorded Cabinet status. Pennsylvania Sen. Richard S. s?. Schweiker, 54, who is retiring after serving in Congress for ?.0 years, was picked as Secretary of Health and Hu- man Services. Another member of Congress,- Rep. David A. Stockman, 34, of Michigan, a conservative who works out economic prescriptions on a computer in his Capitol Hill office, was chosen as Director of the Office of Management and Budget, The Reagan selections were intro- duced to reporters by James Brady, transition press secretary. in an or-. nate room of the Mayflower Hotel, a popular meeting place for the Wash- ington political establishment. ' Reagan, chose not . to, appear with his prospective Cabinet members, an. unusual move for a President-elect: who enjoys being on the stage and has personally ,introduced rhainLof the people-connected With his cainpaigh. Hiss. aides said he did not want to steal. the lime- light from the nominees, but there was also speculation that Reagan did not want to be confronted by reporters about his choice for Secretary of State. ? Reagan is Said to be ready to move abead with the announcement of Gen_ Alexander Haig for `that Post despite criticism: the. .nomination is expected to receive. from some members of Congress_ A friend of for- mer. Secretary of State Henry Kissinger, ? Haig has been criticized for his role in -thel Vietnam war and for authorizing the wire- tappingof former Nixon Administration of- ficials and newsmen. While yesterday's 'Cabinet announce? ments contained no surprises, the homo- geneity-Of those selected prompted some 'questioning, as to whether a black or a . woman would be appointed to any of the. remaining Cabinet jobs. Brady said he could not answer that, but he said more ap- ?pointments may be announced either today. or this weekend. There are seven- more Cabinet positions to be filled. In a , prepared statement. Reagan 'de- scribed his choices as "outstanding individ- uals", who "combine a balance of 'exper- ienced hands with fresh faces, new ideas . and seasoned perspectives.- Reagan said: :They share my philosophy and my belief in Cabinet government and teamsitork and with these individuals, and the others I will ?be nominating, I arn - more confident than" ever that Cabinet 'government can and will .-- work."' .; During the-. televised news 'conference,' Reagari's Cabinet designees were hesitant_ to offer any insight into what their steward-. 'ships might be like. Brady conceded later' that he had given the Cabinet appointees a "pep talk" on the dangers of saying any-. thing substantive before their Senate con- firmation hearings scheduled between Jan. 5 and 19.: Donald Regan. emerged as a' candidate for ;.Treasury Secretary after former sury Secretary -William Simon dropped outi:t: of the running. Simon. who had been advis?s ling,Reagan ometonOmic policy throughout theoampaigrpFaa considered a shocsin the pOst gsrfaintix . ago. But Simons.a . ? s, . Approved For Release 2001/03/06 : CIA-RDP91-00901R000500010002-3 cuti:1--,1 terapenumental. impatient-man who is cur- rently. a Wall Street investment banker, ApproYffrii#VMAkciMUMsal President Gerald Ford is -also reported to have said some negative things about Si- mon, who served in Ford's Cabinet.. Regan referred twice to an "economic team" who would be defining economic policy in the Reagan Administration, indi- cating that there would.be others pulling at the same string. Asked whether he would be the "chief economic spokesman" for the Administra- tion, Regan demtirred, saying "that was not decided." He avoided any commitment .to a specific tax cut, although he said he agreed with one iiniprinciple "to stimulate the economy:" Weinberger, Who was destined to have a keyrolein the Administration from 'the be- ginning, was known as "Cap the Knife" for his skill at budget-cutting. He was director of the Office, of ;Management and Budget and 'Secretary .6P._,Health, Education and Welfare in the NixOn-Administration. High- ly intelligent and a bureaucrat who knows his way around,. Weinberger is also said to have 'a big ego4rid`turned down earlier of- fers to resume his olci Office of Management and .;Budget ? po,st.tkle supports Reagan's ? plan for tax cuts 'federal spending reduc-- tions and morthiciney for defense. Smith had4n he talked into taking the job ofcAttarney 'General, sources said. He was said to, have been concerned that it would look 'like' Cronyism. Born in Wilton,1 N.H., Smith moved to California when he was younglint:riturned to the East to re- ceive his law degree at Harvard in 1942. He- Is a major figure in the business, academic and cultural communities in California. He headed the group, of longtime, Reagan friends who drew up a list of potential Cabi-. net nominees.' ". During his first national exposure yes- terday, Smith twice. said he did not "know enough" ,about the Civil Rights Commis- sion to determine whether he would curtail its role not-would he indicate how he would deal with busing to achieve-racial balance in public schools,.,.:".. ? ' ? Smith is very close to Reagan, dines with him frequently .'and is expected to be at his side often_ Asked yesterday whether the re- lationship might pose a problem, Smith 1 said that the "basic integrity of the individ- uals involved". Would preclude any conflict.. Baldrige, a pcilitical ally of .Vice Presi- dent-elect George Bush, is regarded as a skilled businessman as well as a good be- hind-the-scenes Political organizer. Politics runs in the faintly. His sister, Tish, was sec- retary to Jacqueline Kennedy and is now advising Nancy Reagan on how to staff the White House, The Corrimerce Department will probably continue to be a nesting place for political patronage.- Schweiker.WaS considering tetUrnIng to pdva te trsinesS'Iast January. But he sifned on to help Reagan in the 'Nort14-isC and it paid off.r9 A one-time prolabor liberal.,Schwelker became one of the Senate's more conserva- A-RDIV:111hCM.VMPAPaCliiMen d n- tial running mate in 1976. In an interview 11 months ago with ,The Globe,. Schweiker said he had "growing concerns" about bal- ancing the budget, inflation and "some of the social programs I had voted for in the past." Schweiker said he had already moved away from the liberal spectrum when approached by Reagan's campaign manager, John Sears, to be Reagan's run- ning mate and failed to understand the "po- litical opportunist" label placed, upon him at the time by the media. Lewis is a longtime friend of Schweiker. He headed up Gerald Ford's election cam- paign in Pennsylvania in 1976 and is con- sidered a moderate Republican: A business- man as well as a politician. Lewis success- fully performed a variety of duties for Rea- gan during the campaign. Forthright in his manner,. Lewis said yesterday he would continue mass Iransit funding but would review transition team reports before mak- ing any further. commitments. He was a successful businessman at an early age. At 39, he became president, Of, Sicmple.x, ,W1re and Cable Co. in Boston. Casey wanted the post of Secretary of State almost from the day he became cam- paign manager. But that never seemed to materialize. He-was not particularly liked by Reagan's California contingent, but the gruff New Yorker was skilled at wielding in- fluence, mainly because he knows a wide variety of people and knows how to play politics. A wealthy lawyer with a variety of 1 interests, Casey is not expected to stay on as CIA director for long. The job, however, is something he is expected to enjoy. He served as chief of secret intelligence under Gen. j Dwight D: Eisenhower during World War 11.1 - Stockman is a former aide to Rep. John ' Anderson and the man who helped prepare Reagan for his first League of Women Vot- ers debate during the election campaign. Reagan took a personal liking to Stock- man, and admired- his style:- particularly his grasp of economic facts and figures. Stockman was originally pegged for the job of Secretary of Energy,' but he declined. He set his sight on the Mice of Managerrient and Budget and finally won it. Approved For Release 2001/03/06 : CIA-RDP91-00901R000500010002-3 :?:,,,;?.1 ON THE BOSTON GLOBE 12 December 1980 ranmeal.. s iete eaouri ,, ? . ;, ; , 'r.,: ,. , . ? , ,, ' - , . 1..; I . : -,.? ?= i - ? -.,- :,, . e: , ? ,, 1., .; -'',-, - , . , ..?: -ti,' ? :ri,:. '???; '5 ;-i.,;?;,i-: ';-?1,r!,811':',;. ? ? FENSE: Caspar W. Weinberger, 83, was Ronald ., . GIA: William Ll.;? Casey; 67, another member Of Reagan!Sf:Man Of.SeeV111 Inc.; a diversified consumer products nia'ap-': _Reafam'S California state finance director before serving ," inner circle. was Manager of the President-elect's cam:. ti.?.-facturer, based in Waterbury, Conn cochairman of Rita- as Mcsidenti Richard M. Nixon's Federal Trade COMmIs'," Paign and chairman' Of the transition operation, Chief of ,,:'-'-givs.conii6cticut. campaign, BaldrigeWas born in Otth . siorhalrman, budget director and Secretary of Health, secret Intelligence for Europe during World War 11, Casey is `'ha,' attended an exclusive Connecticut preparator, hall : EdOatIon and Welfare. He is one of Reagan 's closest eCOi , a lawyer who served as an .Undersecretary of state and ,,: and graduated from Yale University;.':. no advisers and headed a task force on Cutting the feclt- chairman of the Securities and Exchange C,ornmission iiii7,;,.,y,.. l? 1 TRANSPORTATION: Drew Lewis, 49, a Reagan polasL eralattidget.! Nicknamed 'Cap .the Knife. because of .1)1s.f. -. der, Nixon He was criticized for an SEC report On Robert al loyalist', . . . A., a was deputy chairman of the campaign and 2t tighkiliudget 'ways under Nixon, Weinberger is.a vice preal;',,:..Ve.Sco,, the fugitive financier; that did mit' disclose a Veseriv., .. ' - . . .. : .. ,,,,,,,,er was named, to the same post at the Republican NdtiO . tienp2of the Bechtel Group, 'an InternationatcOnstrUetion,,, contribution of $200,006 to Nixcin'a re-election campaign' Committee business consultant from Perinsylva anengincering firm with headquarters In San Francisco Stock David A Rep .......:' -,?'-'''. ' ' . '''' ? ? ' - '" 41;eivis'Ins..fil1074 bid for governor.: '.:- ' ::? ,;'2.:,:i ';.,,r;'-i- i.(1) .,': niMANAGEMENT AND BUDGET: . . -. ATTORNEY GENERAL: William French Smith, 63, ,..'. : :Ilan or Michigan, 34, is considered one Of the brightest '-:ii' ' " ' ''. . ',',-.'' ? '.... - chabinan of a Cabinet-selection group of Reagan 'advisers '": young congressmen. Ile is a leading advocate of "SLippiy_.':? . HEALTH AND. HUMAN SERVICES: :oen.-.Richtml : an lends, Is Rcagan's personal lawyer and longtime con- side" economics, which calls for dramatic tax cuts to spur Schweiker,.54, a millionaire Pennsylvania businessmat ' fida-M. A New Hampshire native with a Harvard law de-.'-'!, . y-1,-.Anyestment,., raise. productivity .and employment and re- is retiring from the Senate after two terms. Ranking id-. -.: _,_.....?:;:. duce. Milatien:'First, elected to Congressin,1976, at.age q,- i.,,,, publican on the Libor and Hi.imail:Reso,Urees CoMmIttE, ' gr Snlithi set :up practice in California in -:1942.:. it :.. : w y conservative . he is senior partner in the Loa .ang C-4. 1,Stockman was a Sparring partner fot;Reagan iii:Pr..pa,ra.-,J7' ':....Sehi..veiker ?Waat,picked as Reagan '.s ,vice presidential riptH les Of Gibson ,i Dunn and Crutcher and a diketor of t 1..,tions.for his first presidential campaign:debate.1' ning Mate 41976 shortly before the Republican Natleal several California utilities, banks and other torPOratiOns. -'. ? .-- 7. Convention nominated then-President Gerald R. :Ford.:' Sin 1968 he has been a regent of the University of Cali- . COMMERCE: Malcolm Baldrige, 58, a onetime rodeo ..: Long considered a liberal, , . ,. , .,i ...:',.r: :. . ,. . , .". ' Schwelke.r s voting 're a!CIvi' vs for? aRcagau gubernatorial appointee cowboy who specialized in calf and steer roping is chair much more conservative 1976 , . -,-, . -.. -. ? f,' ? , ???:':., :...t. '...", . ? . . '' , : ,',. ,',': !..,t, ,..12.-;.' .:s?'! , .,?; 111.,./10.5., rz: 0,1,r..,, , ,,iity?V , ' ,V,. ? ' r ft., .0. ...,,,7. ,,,,,..? Ak " met se ection A' STATINTL Approved For Release 2001/03/06 : CIA-RDP91-00901R00 iJE THE WASHINGTON STAR (GREEN LINE) ON PAGE 12 December 1980 By a-Washingteo Star ?Staff Writer On the day Of ihe1980.New Hamp- shire primary, Ronald. Reagan fired John Sears, his campaign manager, and immediately, put William J. Casey in his place. ? - ? ' Casey is credited with reorganiz- ing a campaign that was on the verge of bankruptcy and helping keep it on track through the primaries. He was also instrumental in heading off a conservative cabal to oust Re- publican National Chairman Bill Brock at a time when Reagan was trying to broaden his appeal. ? On the other hand,' Casey was faulted for his role in trying to per- suade former President Gerald Ford 1 to join the ticket as Reagan's vice 1 presidential running mate, a prime- time inini-debacle at the Republican National Convention. It was also said by SOMB of Casey's critics in the Reagae campaign that he did not understand the new politics of tele- vision and polls. He was never the "final arbiter" of campaign matters that he claimed " to be, and most of the important, political decisions of the general election campaign were made by other Reagan intimates like Michael Deaver and Edwin Meese, and vet- eran GOP campaign trooper Stuart Spencer. ? e ? ? - ? - - When the time came to 'divide the political spoils, Casey, reportedly wanted to be secretary of state or defense, but agreed tce take a job' for which, Reagan convinced him he was particularly suited director of the CIA, ` The 67-year-old Casey is widely considered intelligent, decisive," self-confident, and experienced ' both in government and politics. He is a successful lawyer with the firm. of Rogers and Well an entrepre- neur who is a self-made millionaire, and the author of a number of books on tax law and one on the American Revolution. . - "He's a rare blend of Irish hunibr, experience and sagacity? is the way' he was described by Meese, '"He's:, independent and -strong-willed and, an. amazingly ,hard worker." : eagan s Cabin A tall, rumpled, wispy-haired man, Casey grew up in Queens and Long Island and went to undergraduate school at Fordham. He earned .a law degree at St. John's University School of.Law at night while Nork- ing as a New York City home relief investigator. . . . He was commissioned in the Navy - in World War II and when his eyes proved too weak for sea duty he wangled an assignment with-the Of- lice 'of of Strategic Services, the war-. time predecessor to the CIA. He. became became chief of secret intelligence for Europe and coordinated the - placement of intelligence and sab-? otage teams on the continent. Casey has remained active in the ' Veterans of the OSS organization . and, along with Dwight Eisenhower, Allen Dunes, :John J. McCloy and Sen."Everett M. Dirksen, is a recipie" ent of the Donovan medal for distin- guished service to the United States. Since World War II Casey has lived in Long Island, although during the campaign he and his wife took an apartment in Washington. He has a 30-year-old daughter who is active in the arts in New York. Casey is an avid golfer and a vora- cious reader. His personal library reportedly contains 10,000 volumes of history and biography. He is ac- tive in community affairs and local politics. He ran unsuccessfully for Congress in 1966. ? When he was a member of the Nixon administration, Casey bought the Washington home of the widow of Robert ?McCormick, the famous publisher of The Chicago Tribune, by outbidding the Japanese Embas- sy. Asked by Mrs. McCormick what she should tell the Japanese, Casey replied, "Tell them to remember Pearl Harbor." Politically, Casey is described as a conservative who believes in a strong national defense and the free enterprise system. He also is among those who believe U.S. intelligence agencies have been hampered in their effectiveness by congressional reforms. . , ? ? . He helped incorporate William F. Buckley's conservative magazine,. The National Review, and was execu- " tor of the late Jim Wick's desire that his estate be arranged to ensure the continued publication of Human:1 F.:vents., During the Nixon administration Casey served as president of the Export-Import Bank, chairman of the Securities and Exchange Com- mission and undersecretary of state for economic affairs. - As SEC chairman Casey restored the morale of the agency and pushed through a number of recorms. But in that job, and in some others, Casey faced charges of improver actions that have pursued him through much of his career. His publishing firm settled a pla- giarism suit, claiming no knowledge of the actions of subordinates. He ? was the defendant in another suit that involved alleged violation of I the securities laws and misrepresen- tation of some stock value, which also was settled. The Senate Banking Committee delayed his confirmation as SEC chairman while it exam! ned these cases, but ultimately the panel rec- ommended his confirmation on a split vote. As chairman of the SEC, Casey was touched by two of the major scandals of the Nixon administra- tion. . , One was the ITT case, which in- volved, among other things, a charge that Casey lied to other mem- bers of the SEC. The House Commerce subcom- mitee that was investigating reports that ITT offered to make a $400,000 , campaign contribution to Nixon for settlement of an antitrust case, was about to subpoena 34 cartons of doc- uments that contained information i about conversations between ITT of- ficials and Attorney General John Mitchell and other administration officials. Casey shipped the doc- uments to the Justice Department before the subpoena could be issued. Casey also played a role in the scandal involving fugitive financier Robert L. Vesco, who made a secret $200,000 campaign contribution, in $100 bills; to the Nixon re-election campaign while he was under inves- tigation by the SEC for looting a mutual fund complex. e Casey admitted having been asked by Mitchell to see Vesco's lawyer " on the very day, in April 1972, that the lawyer, Harry Sears, delivered , the contribution. Casey said he saw Sears immediately, but did not know , anything about the contribution ty ot2ip3t h e newspa- Approved For Release 2001/03/06 : CIA-RDP91-00901R Nyi r Cs! Cs! United Press Itletnational 'he eight designated Cabinet members at news -conference Mora left): William Casey, David Stockman, Drew Lewis, Richard Schweiker, Malcolm Baldrige, William Smith, Caspar Weinberger and Donald Regan.a) 2 0_ 0_ 2 0_ 0_ STATINTL Approved For Release 2001/03/06 : CIA-RDP91-00901R000 THE HALTIMORE SUN 12 December 1 980 eagan's as ; How fascinating'that Ronald Reagan's first batch of top government, appointees should be so Eastern in its background. Of the eight white males named by the president-elect, seven hold degrees from colleges in the PEtrinsylvania-to-Massachusetts. corridor and the other, David Stockman, tagged for budget director, can hard- ly be called a- Far Westerner with his all-Michigan re- sume. Of course, _like a lot of other Californians, Mr. Reagan is a:transplant, having reached Hollywood via- Illinois and towa. For familiar faces Mr. Reagan can depend. on Cas- par Weinberger at the Department of Defense and Wil- liam French Smith at the Department of Justice, both of whom worked closely with him when he was gover- nor of California...,,, ? . ? - ? The-nation will have to wait until Mr. Reagan com- pletes his cabinet-level appointments before deciding if he delivered the "good mix" he promised. Clearly, he needs female and minority representation, plus in-put: from regions that so far have b-een ignored. 7 Yet it is not our purpose to quibble with yesterday's Choices. They reflect a readiness to tap the traditional wellsprings of Republicanism, where prudent econom- ic policies and enlightenedinternationalism take prec- edence over the more extreme approaches of the New Right. ? This will hold true, as well, if the president-elect de- cides to nominate Alexander Haig for secretary of state in the face of intense opposition.. Whatever his li- abilities in the.Watergate episode, Mr. Haig is consid- el-ed part of the moderate GOP establishment. The Pennsylvanians on the Reagan list?Senator Richard Schweiker, nominated for secretary of Health and Hu- man Services, and Drew Lewis; named for secretary of transportation?were anti-Reagan mainstreamers :ern bacle'in 1976. Mr. Schweiker quic'xiy necam a o, sere. vative after he was picked as Mr. Reagan's r oseecti V E! , running mate; Mr. Lewis swung over aftee directing . the 1976 Ford campaign in Pennsylvania. hey nave ; some sympathy for Kemp-Roth economic wilt its - emphasis on tax cuts, but of the Reagan only. Mr. Stockman, something of a congress n.11 kid, is a truly supply-side economist. Donald T. Regan, the Wall Streeter name, ae se 're- tary of. the Treasury, has stated that we u have budget cuts and tax cuts together.- And Mr Weir ier- ger at the Pentagon brings with him the ni ::-Ltra.! of "Cap the Knife" in tribute to his previous bin. -51 ish- ing record. Despite expected budget hikes, I:. ? berger will be doing a real service if he creeh delve on Pentagon waste. The other. appointee with ,concrnic responsibilities is Malcolm -Baldrigie a C, mecl.cut businessman, selected for secretary of corn eree As ; director of the Central Intellieence A eencv, ,rIkari J.. Casey brings an extensive backgroenn, begi. hc..2 ; (-kis operations in World War If, erwce in eFord administrations, administrations, and chairmanship of fre 030 -Vieagan campaign. - Perhaps the key man on the Reagan P - 3 N' Ir. Smith, the attorney general-designate He cc i os- est to being a crony, which could hinder the iceae.r,g, struggle to free the Justice Department fre a m!lue political influence. If Mr. Smith is to ,)e par if ' ni- percabinet." overseeing the whole governmer - way . be wise to delegate many functions to :iihordi it's 'nd isolate himself from their decisions. Overall Mr_ Reagan's first cabinet list seer- selid one. It could help get the administration off ) god start. Marylanders will have no objections to , it- r ern-ness of his early appointees. - - Approved For Release 2001/03/06 : CIA-RDP91-00901R000500010002-3 STATINTL ,ApstrQul i For Release 2001/03/06 : CIA-RDP91-00901R000 Art 13:L,,,L A r z...i.="0 ON ?A0T, NEW YORK DAILY NEWS 12 DECEYBER. 1980 ? _ . ASHINGTON?The overall impression of President-elect Reagan's first batch of.. Cabinet choices is one of blandness. In an '2:effort to avoid antagonizing either the Republican .; far right or GOP moderates, Reagan ended up with a. - politically safe, but colorless lot to fill the first eight . Cabinet chairs... e!There are no controv- ersial figures like the -.Texas dynamo John Con- nally in the first group. Nor are there any promi- nent Democrats like Sen.: 'Henry. M. Jackson of . Washington. Both Conn- ally-. and Jackson had been.. at. one time- ru- mored to- be high ---on Reagan's list for secre- tary of defense.' .- nen, ,Instead, Reagan opted ' for _Caspar W. eWein- - berger. for the defense ?- Post:A longtime Reagan budget adviser who earned the nickname "Cap the Knife- when he served as - budget director, and later secretary of health, educadoe and welfare in the Nixon 'and Ford ! --:administrations, Weinberger is now a vice president ; of the S-an Trancisco-based Bechtel Corp., a raultir.a- .'?,tional construction farm He has the reputation of an eanffectve, but colorless, administrator. _ _ ? ? The Cabinet list also-lacks a mover and shaker 4: like former Treasuly Secretary William E. Simone .who was said to be Reagan's top choice for that key !!...p-ost..But Simon, a forceful and outspoken conserve- etive who earned a reputation for toughness and abrasiveness by knocking heads as energy czar and .! Tmsury sem:ebory M. the Nixon and Ford ad:minis- etnatons, apparently ran afoul of moderate Republi- cans on Capitol -Hal and Reagan's own inner circle-- of California adviser's, who felt he might be too hard. to handle - . ..!-? Soeee ter letting '7Sirtion twist - in the sfind -of . ;ere. ? fettnatenibuted political sniping from his enemies for ? .several- weeks, Reagan apparently was content to let. withdraw his namefeenn consideration.. ? ? PRESIDENT-elect thereTturned to Donald ? T. Regan, aformer director of the New York & Steck Exchange and now the highly respected ^ chafrmane of Merrill :Lynch & Co..; the nation's ..-?1.3.1-gestinvesent brokerage firm. - -I:-T-!!! Regan has first-class credentials for the'. Treasurj _post and will undoubtedly be fine. But Simon, who- . -.brought the inflation rate down'frorn 1.2.5% to 4.3% ^ as Ford's Treasury secretary, -might. have been a 4-;411=tappropriate, if more difficult, choice.;- _ A3 commerce secretary, Reagan picked Malcolm ? Balchidge, 58, chairman-of Scovill Inc.,a Waterbury; ? c..Onetn. manufacturing firm. Again a highly AppragratA5PArtreareeeVOSIVetbliMA ADP91-00901R000500010002-3 ?Ices: _ . - this (Baldridge ran Vice Presideatelert Bush's campaign against Reagan in the GOP prenary). . But in designating Baldeeige. R aen bypassed - Republican National Chairman Bill ereck, who had been angling for the job. Brock, a former senator from Tenaessee, is widely credit-d for the im- pressive Republican gains in the co lgressional and state legislative elections: Howev-r, Brock was targeted by the GOP's New Right as no left-leaning, so scratch Brock: _~ ? ? The same kind of commentary c itild be written - on each of the Reagan-choices teus fare When . criticisma were heard from either : ea far right or. -.nom powerful Republicans-on Capiesi Hilt, Reagan ..ose to avoid a fight The on e . 92,:a2_11342 ? j. 1 xi J. Cgsev. a- well4elown Ne ..e York lavee ! ferner char nan of the. Securities and Exchange Commission who was-picked by Rea ;an to head the- Casey, who managed Reagan's _pfesidential earn- _palate was a high-level Intelligence o ieretive World War II forethe OffeoiStraie ServicesIthe legendary OSS, and he is know7 23 a teugh outspoken and crusty operator. - STATINTL Approved For Release 2001/03/06 : CIA-RDP91-00901R0 LF7:JLE THE WALL STREET JOURNAL ? Ronald Ri.47;aifi'-tt.ist eight Cabi- net.. choices wisely dodged most of the substantive questions chucked at them ? in their maiden press conference, but it was possible to get some Mitial ink- ling of what kind of Cabinet this..will be.-r.They think pretty much alike on the' ieed to restore market meclia--'1 nisms and bring- the federal .governefi, mini under better controle.:-_:?.:.?..:i;,;?tti t. Their soberness :was interestinge!,'; however.. In the past, Cabinet appoint. ees' have often looked flushed .with ex? citement wheneeintroduced press.. These mennfoureofewhnirOaren' in their 60S",;'Iriiitstly- have successful' careers ? behind them didn't need- new laurels for their crovmsl'It seems probable that all are very much aWare;e of the difficulties that lie before them. The initial, appointments put ? key ? figures of .Mr....Reagan's economic team n in place. The likely teard leader, Dm Regan at Treasury, was a choice worthy of speculation. Mr." Regan's personal abilities have been demon- strated in his success at Merrill Lynch, where -he: has shown daring and imagination in-taking that old and ? revered Wall Street:house into new ventures and. ?markets.. He has di- rected a great deal of criticism at fed- eral budget management in recent months. . :'it Mr. Regan could be an apt choice for another reason. He is a man who -understands_ the credit markets. which will be of primary --. concer_nnr when the new administration tries to cope with inflation, pet, he is not, tech",,:,, nically at least,: a:banker. . Indeed, Mr: Regan has spent 'fa. : great deal of ;time:doing. battle with the banks as he has , moved Merrill Lynch into areas,:. such as Cash Man--n- agernent Accounts. that directly corn- pete with banks. lithe administration is to be successful.in. getting the Fed ? to restrict creatiornoi bank reservei,',... it may-find itself.4sonsiderable conflict with - 12 December 1980 11:- The Reagan Team -'2DavieStockmain'thie-Youne, Con- gressman who will take over the Of- fice 'of Management and Budget, has' developed, along with 'Congressman Jack Kemp, a lucid game plan for the anti-inflation fight, excerpts- of which we print elsewhere on this page today. He has been an important spokesman for..supply-side economics,- . which as the Stockman-Kemp memo. 'suggests,; is ,far from simplistic 'tali:slashing. Mr: Regan, Mr. Stockman and the.. President will have a formidable chal- lenge in front of them trying to put an ant-inflation policy' into. final shape::: and: Win congressional support. for in-., Well 'know more about .ththrust 'the administration's economic policies when- we .see the crucial second and - third level appointinentsebut the expe- rienced Mr. Regan and keen-witted, , Mr. Stockman look like the start of a good team. .Another- big job filled yesterday was Cap Weinberger for Defense. Mr. Weinberger has survived some very tough government jobs, running HEW and the GMB, for example, with all limbs still attached. As Defense Secre- tary he will need an almost superhu- man ability to sort out priorities and persuade admirals and generals to work together, but Mr.. Weinberger seems well-equipped for that. ? Former Senator Richard Schwei- ker, who will take over Health and Hu- man Services, has been ranking minor ity. member of the eSenate Health, Manpower . and Education Committee and has. thus had an opportunity to witness the. long evolution, of federal health care policy, which has helped fuel the federal drive- towards bank- ruptcy. In the last few years there has i been new thinking about ways to bring! market restraints to bear on Medicare and Medicaid and we would expect I Senator Schweiker to pursue these ef- forts. 'nen Ti T :- William Casey, v, ..a.l.ces charge of the CIA, goes all the waTrirc7c to in tel- 'ligence work in Wori.i War LI. it could be very usen.d to ha:7e a CL7. nerTcror with tais }aria or pe-spective, as well/ - as a rnucn oroa.ter cxpenancti.wj an p?d?Tarr rh?e?CL. nee:is torn-a-Its' proper role again in 1J.S. toreign The choice of Sta asneld Turner:TY ; ..Presibent Carter dt'esn't appear to have been a. partciil-arly tortunate, one, despite the atimiral's .obvious aoilmes. As to the other two appointees, Malcolm-Baldrige t Comrnerce and Drew Lewis to Ti ansportation, it would be , difficult to guess how well they might do. Mret eon's, in particu- lar, takes on a part.cutarly difficult job as Secretary of Teansportatien, mainly' because the carter adminis- tration has involved the government so heavily in interfere 'le, with auto de- sign and rnanufacturi ig and financing railroads and urban tri_nsit. If Mr. . Lewis has a mandate to dismantle the DOT, we're all for 'it -. Many important lobs, including 'Secretary of State, re, -,ain to be filled, and no one should un lerestimate the impact of second an third tier offi- cials. But. on the wt ole, the sober- faced men who stood efore the cam- It eras yesterday look lik e. a pretty inter- t esting bunch. Approved For Release 2001/03/06 : CIA-RDP91-00901R000500010002-3 S_TIN Approved For Release 2001/03/06 : CIA-RDP91-00TA 901Ku0 ARTP:_;LE ON PAGth512,_ THE WASHINGTON POST 12 December 1980 zi2e 'V! ? - " -HERE IS an awful lot:we still don't know-about. ' Ronald Reagan's prospective Cabinet, such as, - for example: where's the rest of it? And even after the, . 'President-elect has disclosed his choices for all these jobs, we.still won't know either how much of his Cable. net-governmentinnovation lie plans to put iritoeffect ? . or how the personal/power chemistry among the' top- people will work out. This last point is especially im- Portant; People are more .(and. sometimes: a lot- less) than the sum of the parts of theirresumes: Still, everewithout.the naming as yet of either the ? ,whole national security or economic first team, a few facts about the Reagan designations stand. out. Of the batch named yesterday,- Rep. Dave* Stockman; proposed for director of the Office of Management: and Budget, is distinctive on several scores; not just- his relative youth. This is an audacious designation by Mr. Reagan (who got to-know Rep. Stockman, in-: cidentelly, when the congressman was impersonating John Anderson and then Jimmy Carter in pre-de- bate rehearsals with the governor). * ? ? . ? - Mr. Stockman is a man of great *political energy who is strongly identified with a collection of views on how both a federal administration arid a national ',economy should be .managed. (separately wherever - possible, in a nutshell). But alone of yesterday's group he has this kind of powerful. association with what you could call one school of views on a complex of.disputed issues to be addressed by the-Reagan ;. gOveniment. The others named have, notably; not ? been at the raging heart of the arguments over- the. subjects and jurisdicficins they are to inherit .? ." ? . Caspar W. Weinberger, for instance, a skilled anci- n.1"."' respected -administrator,"..whose'preVious Cabinet* ? work (0-NIB, the-old Department of Healt , Educa41. ,..tion and Welfare) was very well reviewed in Wasbing4 - ton, -has certainly not been involved in ai y serious: way in the big contention over defense pi iicy. And . :.,DOrreild-T. Regan, who has presided over a uccess. :New York brokerage house, is kno.Wn. for-he ein4 livd -'withrienblie Policy; :in his business, very siccessfullyi, and.:even:prescientlyt?but not for having ri.acli?. such poliHe too. does not represent one side r another' ein:.thee cOntroversies, that -have emerged*- . i?within-the-prospective Republican; governni mt. He-is not, to put it as crudely as we?can..BillSimo, .William Casey; named forthe CIA dfre-ctc rshirr.liwt been, around this-town-plenty .before and certainlY1 some .ot his views on how .the agency silo, ;i 5e. reel ViTred are going to, be the subject of dispute --iney reare. But normore than the others wno ,vere ? -irgriated .does he represent the triumph of - he "Here:- . logical, wing" of anything. These are. by and arge men:, known for their competence at what they- o. Merci- fully, Mr. Reagan spared Us that traditionai presiden2e . tial palaver about the, "extra dimension" of sach man- or-- his, most-distinguished-in-the-werldnese and tha:' rest- Very workmanlike, very .businesslike, very low key, at least as measured against orthodox p aiuce? We will get around to the more substant ye. policy ? :implications of the Cabinet *nominees ev, iert then .? harries have all been announced Our first i npressink is earily ??tentative, provisional..But ii is this-42..-1 that Goy-. Reagaremay be serious about th, Cabinet--;:.1 "government:fermate but he is clearly not .p aiming teiz. -; ?base :it on the 'appointment of 'superstar or prima donna Cabinet figures. What looks* to be eirer.ng is something more collegial, board chairman p,,rs-board:,,,4 Approved For Release 2001/03/06 : CIA-RDP91-00901R000500010002-3 STATI NTL AT2. Approved For Release 2001/03/06 : CIA-RDP91-00901R000 T I CT. THE WALL STREET JOURNAL 12 December 1980 oi PAGE Chooliig a Cabinet. ? Reagan Lineup Includes Season8 usiiessmen, Allies No Minority Members or ornen , 10.14. V.,44.d. rt. By T15101115:7Seiikl-LHAIth,T S Cali Reporter of TmaWau.senr.zreottaerin.:-.i. WASHINGTONTeRonale Reagan turii-ed to old friends, politicarallies and exp-eri enced businessrperi,t4lllhefirst half 0f his Cabinet. 4 :V The irtitial eightnca inet niembers-4ere announced yesterday although the Presie- dentelect broke' withe tradition. and didn't personally annotinceeitlienree'eq.,`, , There weren't- an. yeasurprises In the grOup, nor; were there ' wohneh': or.members of Trros, norities'aReagan,..aideScsayl,representatities' of'etticse,;po1it1ca11y potent... interest 'grou arg.',expected, to.be, arn9pg. mr....Reagan's nil ehoices; liketz_tikte named. next. weele.iiie California.. ? ?' ?There weren't-anysurprises-in the groun;i theniong-awaitecl, "announcement of Cabiner appOintments wasv:,iiiiade yesterday. ,,after4 noo in the noisy,: crowded ballroom at downtown hotel here:' He left the task to his n e*E; transition pres4a9kesrnan, Jim Brady, who read the appointees ',:names as they paraded before television cameras. They were: --Donald Regadq't years old, chairman . , and thief executive:cifficer of Merrill Lynch co:;? to be Tree:Sail Secretary. Caspar Weinberger, 63, vice president and general counSet,-, of -Bechtel Group, as Defense-Secretary&Aeee', e' e 'Llketalcolm Baldrige,..58, chairman :'and chief executive ofeScoviireliace, to be Corn-. merce.Secretary-aAlea: :? --David Stocittaaine, 34?:.Republi can Con- gressman from Michigate-tto be director of; the Office of Ntanagementand Budget..e"e_e!,:s, French.'Srmtk; 62, Los AngeTes.', lawyer and Mre'Reagares personal attorney?:-. to be Attorney Genera.t...., -e-Richard Sdiweikere-54, itepubliCan Sert- ator -from Pennsylvania.-i. as -Secretary, GU; Health and Human Seraicese : Lewis '4Phfladelphia-area- nianagement consultant-and deputy clIalr4;' man of. the Republican l',Itaticnal Cornrnittee, to be Transportation.Seetary. ; Casey; 6:-.New York tax law- yer And former hairzna.re the Securtties- triT..Exchan e to .be director of etli?ra1 InteihgnMeJ., of -the- appointees must be Confirmed by the Senate to their S89,630-a-year posts. None of them are likely to face tough confir- mation -battles; although_ MreeRegan's ap- pointment as Treasury,- Secretary drew strong early- criticism yesterday. from hard-. line Conservatives. Democratic.Senators are expected to grill several of the-nominees, es-, pecially- -Messrs_ Regan, Stockman and Bal- rige,'en their economic views.: ? :Mr.- Reagan's decision against personally disclosing his -Cabir.et choices was surpris-- inge especially- since h e repeatedly has said his Cabinef-will wield greater:independence and authority than previous'ones. Indeed, he is, expected to designate several Cabinet, membersaineluding the Secretaries of Trea- sury; .Defense, and 'State.' as a -sort of "super" executive committee to help deter- mine domestic ar.d foreign policy Asked to explain Mr. Ragan's abseace, Press Spokesman Brady-said, "He feels that this is the Cabinet members' day, it's their show and he doesn't want to do anything ? that will detract from them."" - [ However,- other transition. officials said privately the:reason was that, if he had been there, .Mr_ .Reagan- would have been pum- meledJ:with _questions on" the absence of women .and minorities in his initial choices I and on the controversy surrounding his se- ' I - ec on- for -Secretary- ofe State: -Alexander Haig, a: former Nixon- administration offi- cial, is viewed.as the likely nominee for the State Department post But-he has drawn criticism.- from. some, Democratic Senators because-of. his role as White House Chief of Staff _during the final months- of the Water- gate scandalee- If he had been there,- Mr.-Reagan would have been among many close friends and al-- lies. Attorney General-designate Smith and Mr. -Weinberger are long-time pals- of the President-elect. Aad Messrs: `Casey, Lewis, Schweiker and Stockman all played roles in. Mr. Reag,an's presidential campaign. Mr: Baldrige has dose ties to Vice President-' elect George Bush and ran Mr.. Bush's Con- necticut campaign for the Republican presi- dential nomination. Mr. Regan, perhaps the nation's. leading securities executive, is a I close friend of Mr. Casey, who is counsel to, IMerrill-Lyndrs law firm . . _ In ?-a. statement-Mr. Reagan said 'his choices: "cornbine a balanee of experienced hands:with fresh faces; Ilt'W ideas and sea- soned perspectives." As a group, excluding two-term lawmaker-. Stnceman, the initial' Cabinet Members: average airriest 60 years in 'age. 'Half 'are Harvat ri graduates, the other:half went- to ;Yale: Mr. Reagan said the men' -"share my philoeopny and my- be- lief in Cabinet government and teamwork.":' Biit'several spokesmen for new-right con-, -.e- servatwe groups questioned that statement. They. criticized. the ,appoit:trnent of Mr. Re-i g-an- as Treasury. Secrete, y, contending the "wan? ic ? philosophies of the securities- dustry executiyee and . the- President-elect conflict4 Paul Weyrichedi -ector of the Com- mittee or the-Survival of a Free Congress, termed - thee, Regan- appointment:. "ques-, tionablet" He: maintainec that Mr. Regan "really ;isn't in accord" with th,. President- elect's7-J-iew on the econo ny_ Howard Phil- lips of the Conservative C Lucas, making the same criticism, called ti.e choice - tunate." I , ? 4eagan's - finale t. abinet picks-for Secretaries of State, Housing and Urban De-- velopmerlt ' Education, Er erey, Agriculture and. Intetkor -are expected to include- seve- eral fates, new to governr lent. Sources say that; among them are likey to be Raymond Donovan, 50, a New Jersey contractor, as Labor Secretary_ Mr. Dolovan, whose- Se.- caucus, N.J., construction atm pany is union-. ized, is }mown as a fairbut hard-nosed union.: negotiator/e-----"? ' ' Approved For Release 2001/03/06 : CIA-RDP91-00901R000500010002-3 STATI NTL Approved For Release 2001/03/06 : CIA-RDP91-00901R00050 I ON THE BALTIMORE SUN 12 December 1980 me ?A- ? ? ? ? A-13T.37'..,..42 f. -'; sinessm By Gilbert A.telahsvaite,-71 Washington Bureau of The Sun? - -;":,?-Centralrantelliienie 'AgencY-1-Wil- 11am J Casey, New York lawyer and Rea- I an camnaism official. : ?,/ ? '.7-;',).44 TED WILLLANI J. CASEY:' ? ' :director of central intelligence ? Approved For Release 2001/03/06 : CIA-RDP91-00901R000500010002-3 InT OT IA3'Ei STATI NTL For Release 2001VO4/616(:,,PlAnRDP91-00901R000 - 12 DECEMBER 1983 REA lAN- DESIGNAr:ESt. bIGFIT-70 J1j1i FATS AT CABIN,T LFVKJ SEES A NEW START FOR NATION Regan, Weinberger, Smith, Lewis, Baldrige, Schweiker, Casey and Stockman Selected ?_ By STEVEN R. 'WEISMAN Special w The New York Times ' WASHINGTON, Dec. 11 ? President- elect Ronald Reagan announced his first eight Cabinet-level appointments today, declaring that together they constituted "the exact combination to create the new beginning the American people expect ?-e? State Not announced Interior Not announced Agriculture Not announced Labor Not announced Housing and Urban Development f Not announced and deserve." _ Those who were chosen were presented ? this afternoon at an unusual joint news conference, which was not attended by Mr. Reagan. In a statement, the Presi- dent-elect said that with these selections he was "more confident than ever that Cabinet government can and will work." , Introduced one by one by James Brady, a transition spokesman, the designees lined uptefore a blue curtain in a packed meeting room of a clownto,,vo hotel here, all wearing dark siiitS and ties. They stood together answering questions for , about half an hour and then left quickly. Designees For Top Posts . Those announced today were: _ . Director of Central Intelligence: liam J. Casey, counsel to the New York law firm Rogers & Wells, former chair- man of Mr. Reagan's election campaign. EXCMPTLD Energy Not announced Education Not announced he sr York n f C ' . William J. Casey, let, was nominated t C.I.A. director, , Approved For Release 2001/03/06 : CIA-RDP91-00901R000500010002-3 Approved For Release 2001/03/06 : CIA-RDP91-00901R0005 A-631CIAE o:1 THE WASHINGTON STAR (GREEN LINE) 12 December 1980 STATI NTL !-f4?.?5, tIVC7 St 01Ce -re:45,141 ]ntra Lice ? By Lisa Myers - ? - :--Washinglon Star Staff Writer.- .- - The nominees -"were: Donald' T.-- Regan as Treasury secretary; Caspar W. Weinberger as defense secretary; William French Smith as attorney general; Sen. Richard S. Schweiker as secretary ot ? health and human services; Rep. David A. Stockman as budget director; Drew L. Lewis Jr. as transportation secretary; Malcolm Baldrige as commerce secretary; and William J.. Casey as CIA director. Approved For Release 2001/03/06 : CIA-RDP91-00901R000500010002-3 Approved For Rel9ase 2001/03/06 ,? CIA-RDP91-00901R000 THE WALL STREET JOURNAL ON l'AC?j;_ 12 December 1980 World-Wide REAGAN CHOSE Caspar Weinberger for Defense and Donald Regan for Treasury. ..-Eight Cabinet-level jobs were filled by the President-elect, who tapped personal at- torney William French Smith to be Attorney General. Rep. David Stockman (R, Mich.), who favors sharp tax cuts to spur invest- ment and combat inflation, was picked to be Budget Director. Campaign manager Casey is to head the CIA. Reagan selected Pennsylvania manage- ment'specialist Drew Lewis as Transporta- tion Secretary. The Commerce post will go to Malcolm Baldrige, chairman of Scovill Inc. Sen. Richard &hweiker (R., Pa.), will head the Department of Health and Human Services. All appointments are subject to Senate confirmation. - Left unclear during the formal an- nouncetnent, which Reagan didn't at- tens was whether retired Geri. Alexan- der Haig was due to be named Secre- tary of State. STATI NTL Approved For Release 2001/03/06 : CIA-RDP91-00901R000500010002-3 PATICL4WQ O PACI? For Release 2001/03/06 : CIA-RDP91-00901R00 CHICAGO TR TBI1NE 12 DECEMBER 1980 nald Reagan's nominees CIA-director William Casey Manager of Reagan's carn- paign, :chairman of the 'transition; formerly Nixon's un- ? cersecretary of state and cnair- man of .the . Securities and Exchange Commission. ? Budget and personnel figures not available - Function: To advise, the Nation al Security Council on.intellig- once, gathered by various agencies: to correlate', evaluate and disseminate intel- ligence reratirg f.o; nailonal security: t to coed - foreign intelligence.. William J.' Casey, 67, President-elect Ronald Reagan's choice to head the CIA, is a Wall Street lawyer who served' as Reagan's campaign director. As campaign strategist, he was said by in- siders to he ineffectual, but they note; that Casey has considerable experience in the intelligenee .field. During World,. War II he was chief of intelligence oper- ations in Europe for the Office of Stra- tegic Services, the precursor of the Casey seryed... as ,undersecretary state for economic affairs and later as chairman of the Securities and change.. Commission during the Nixon administration.. In his only bid for politi;, cal.office, Casey ,was defeated in a , York congressional election. ' He took over the. Reagan campaign:: atter the President-elect fired John ' Sears last winter. In the general elec- ? tion, though, . Ca-key found himself eclipsed by the wily Stuart Spencer. Af- ter the election, Casey served as chief of ? Reagan's transition committee. Casy is a graduate of Fordham Uni- versity and St. John's Law School. STATI NTL Approved For Release 2001/03/06 : CIA-RDP91-00901R000500010002-3 Approved For Release 2001/03/06 : CIA-RDP91-00NAR13015000 Ai,s, T. I C:LE ON PA THE WALL STREET JOURNAL 12 December 1980 Casey :Would Carry 2 Assets to CIA Post, But Re's Also Seen Bringing 2 Liabilities By GERALD F. SEIB Staff feeperrter of TI-13 WALL Sraz JouRN A L WASHINGTON?William J. Casey, the gruff New York tax lawyer nominated for director of central intelligence, would being to the job two valuable assets: a close rela- tionship with the President and Intelligence everience. ,? ? But, in the view of intelligence profes- sionals, he also carries two liabilities. His age-67?causes some to wonder whether he has the vigor to revitalize the Central Intelli- gerAceAgency, which many experts consider tabe seriously demoralized. ?And professionals fear that Mr. Casey's intelligence experience, which dates back toi World War II, might be outdated. - ? eA-if., - "The initial reac- tion is going to be a &? ' wait-and-see one" said one former intel- . :(1); ligence oftcer. ? ? tr-T:rie As CIA directore---1--4.. Mr. Casey would in-. sr ? ? herit an agency that " some of Ronald Rea- , 's advisers think N'e needs wholesale im- provements V and: ..r.weeping reorganiza- tion. They reportedly ? recommended that the new administrat on place greater emphasis on covert action and counterintelligence. ?? - Mr. Casey said yesterday that the recom- mendations are merely a collection of "in- formation and ideas" gathered by the transi- tion team. He said behadn't read the transi- ti6n report yet and would set policy later. ? But Mr. Casey has said the U.S. needs' the world's "best" intelligence, and he ap- parently shares the view that the CIA's operations need to be strengthened. One in- dication of the emphasis the new adminis- trat-lan-will place on intelligence may be the announcement yesterday that Mr. Casey, as director of central intelligence, would be -.a.- member of the President's Cabinet.... - ? .Stansfield Turner, the current director of national intelligence, isn't" a Cabinet mem- ber. Mr. Casey, who managed Mr. Reagan's election, campaign, served during World War H. in the U.S._ Office of Strategic Ser- vices, a highly regarded intelligence opera- tion that was a forerunner of the CIA. He eventually rose to become , chief of intelli- gence for the European Theater. : But for most of his adult life, Mr. Casey has been a highly successful tax lawyer. He made a fortune publishing "desk bcoks" for lawyers needing to know about, taxes and es- tate planning. _ President Nixon appointed him chairman of the Securities and Exchange Commission in 1971. Liberal Democrats protested, saying Mr. Casey was too close to Wall Street. But many of the critics were pleasantly sur- prised when he turned out to be an active, relatively tough replator...?.- ? - Mr. Casey later be6aine Under Secretary of State for Economic Affairs, then .chair- man of the U.S. Export-Import Bank. He managed Mr. Reagan's presidential campaign from last February through the election?although much of the authority for running the campaign was assumed by Ed- win Meese,- a Reagan confidant who will be. White. House counselor. .-.Intelligence experts 'say that ,the first problem Mr. Casey s :oe'd tackle is low mi rale- al-othe CIA. Th- agency was several shaken during the re d-teies by a period ( .Cohgressional invest eation_s and.:press..di . closures-of questiona ectivitp_se Morale saek further, former officers sae when .e.f.e. T.ureer elir ;Mated about Set.} job lathe Vgencis.coi.'Vt ectioa programs 1S7.tsAs a reseit,1 ma )y intelligence profeS ..sionals disliked the. :areer ?adrathistratioi nirec most ever/bad 'agrees that anything ?tould. be an improve -ment"says one former: intelligence officer. . . - _ :seMorale;-; also will ji rnb,:sorne -observers say, if-the new admire .tration can get Cori- g,ress to- pal? desiemed to?protect CIA. agents: One .would outlaw the wholesale disclosure- of the .narms of CIA undercover operators. in recent rr ates, some publica- tions have printed - lis .e urames of _CIA agents..This has sent st :vers through the irie tellig,ence community, 'hose members fear that disclosure of age its' identities opens. them to attack from un r rieedly agents: - The second bill won ci eeclude some CIA triateriaissfrom disclos ire ender the Free- dom of information A rt. Intelligence offi- cials-contend that such t tell is necessary to assure agents and Sour -es that their names worit_ be released. - ?Mr.';.Casey- isn't ex eected to encounter. ahy serious problems ii c:onseressional con- firmation hearings. Hui he may face-some ticklish questices over recent .disclosures that while.he was chail mart of the. SEC he met ssithe- a -lawyer- fo-- tegitive financier. Robert Veseo. Mr_ Vesre+ wes tinder SEC'. in-. vestig-ation at the time. .: ez? eess 'e Mr.-, repre.se etative- broil ghte ups the-investigation.durine the meeting-with' Mr:-Casey-But Ricliat Allen,s-a. Reagan. foreign I.Nalicy, adviser who...arranged .thei meetin,g;shas. said -.that te didn't !claw the-i lawyereWoillirdiscuss the Vesco investiga- tioff;AndMr Casey said yesterday that her .directed-': the case; again 4 _Mr. Vesco, ? whoi eventually_ was indicted iVP separate dmese in U.S., courts for securiies violations- Mr:- Casey Saicf.heididn't think there was "any question":, about his-vigo -ous pursuit of the- case aen n st ; Approved For Release 2001/03/06 : CIA-RDP91-00901R000500010002-3 STATI NTL Approved For Release 2001/03/06 : CIA-RDP91-00901R00050 THE CHRISTIAN SCIENCE MONITOR 12 December 1 980 Changing of the guard at the CIA__ In tapping William Casey to head the Cen- tral Intelligence Agency, President-elect Reagan is sending a clear signal to Congress, the American public, and overseas govern- ments that US intelligence-gathering will be given increased priority by the new adminis- tration. Mr. Casey ran Mr. Reagan's success- ful election effort and is currently chairman of the transition committee. Moreover, the extent of that renewed mission for the CIA became apparent earlier this week when the GOP intelligence transition team proposed sweeping changes in the organization and op- eration of intelligence-gathering, including a call for an increase in covert action abroad. ? We are not unmindful of the need to strengthen US intelligence capabilities. par ticifinrly through ensuring a careful balance between the human side of intelligence gath- ering and analysis, and the use of gadgetry and technology such as spy satellites and computers. But we would urge the new ad- ministration and Congress to be wary of any loosening of restrictions currently applied to covert actions. As Monitor correspondent Daniel Southerland pointed out in a series in these pages earlier this fali,there is a great need for US intelligence work to be fitted once again into a clearer sense of national foreign policy priorities. That means a greater ern- phasis must be placed on understanding the many cultural and political changes sweeping the world, with a need for recruiting thought- ful, well-educated analysts into intelligence work. The years with a James Bond aura of manipulating governments and plottrig as- sassinetions are now behind us. What must be avoided is a return to the days of going for "quick action" cloak-and- dagger operations. Intelligence work, rather, must be made the handmaiden of a carefully defined US foreign policy. That should not preclude a greater empha- sis on counterintelligence. There is little doubt that terrorism and Soviet espionage are continuing threats to the US. There is some question, however, whether having a national central records system, as proposed by the transition team, is the proper solution to better counterintelligence. As pro- posed, the recording system would maintain records not just on presumed overseas agents but also on dealings of those agents with American citizens. To many lawmakers, such a system comes close to a national police dos- sier on US citizens and would likely pose grave constitutional questions. In fact, we rather suspect that any such system - if ever put into place by the new administration - would quickly become embroiled in litigation from civil liberties groups. And that would de- feat the ultimate purpose of having such a system in the first place, namely, increasing intelligence capabilities. Legislative proposals to establish a sepa- rate clandestine agency, as now proposed by some lawmakers close to Mr. Reagan, also strike us as questionable. Mr. Casey, because of his background as a lawyer, former head of the US Securities and Exchange Commission, and onetime official of the old Office of Strategic Services (OSS), is particularly equipped to oose the careful, long-range policy questireis that wii.I be , needed during the days ahead as the Reagan administration seeks to den ne the new direc- tion for the CIA. Although oine current CIA officials are reportedly coecerned that Mr. Casey's views of intelligeac -e are too rooted in the OSS "night parachute C: coo" mentality of the 1940s, his tenure as SEC chief indicated caution and deliberation. Vie. would hope thati the same qualities will con, e to the fore dur- ing his days at the CIA. We think Mr. Casey mig et profitably con- sider ways of increasing a -nore competitive system of intelligence anai is's, as proposed' by the Republican Party tr insition team. Di- versity of ideas and informetion is as impor- tant in intelligence gatherieg as in any other, endeavor. We would also tie st that Mr. Casey! will continue the pursuit of technological inno- vation that has been one of the accomplish-1 ments of the CIA under its current director, ! Stansfield Turner. Whatever else is done, we think a basic need is the strengthening of the entire US edu- cational system: Will int e lligenee agencies down the road be able to fin, I the cultured per- sonnel they will so badly need in a society that: has downplayed foreign lai guages in schools' and shortchanged basic ce ucational skills?. The longer-range objective - and problems - of US intelligence agercies must not be, overlooked in any consideretion of short-term solutions. Careful deliberat on phis regard for ? the long-range need - tiles} must be the main: ingredients in planning for ne new CIA. ... . 'Approved For Release 2001/03/06 : CIA-RDP91-00901R000500010002-3 Approved For Release 2001/03/06 : CIA-RDP91-00901R000 G 1,E ON PAGE 143 THE WASHINGTON POST 12 December 1980 STATI NTL see ? ? .e.By George Lardner Jr. Washtngton PostStat t We lter !Wiliam J. Casey has had .his scrapes -,with 'congreesional investiga- tors before. He has aLio, as he pointed: out -yesterday, "been confirmed by the United States-Senate 'four times."- -The shambling,- plain-spoken New ? York lawyer made plain that, he has. every expectation of being confirrne& again; this time ?as- director of the Central Intelligence Agency in 'the! Ronald: Rea.gane administration. Amid calls for more emphasis on covert ac tion abroad and a more prescient in- telligence system.- -at home, Caseye would be returning to a routine he left! behind in World War IL - And the objections that were raised against himenearly 10 years ago --- when President Nixon named him ,! chairman of the Securities and Ex change Commission ? could, as they ? did then, prove as. much of an asset as an obstacle to speedy Senate approval. Casey was accused- by aides ? then of too-sharp dealings in the business ,world. His supporters replied that they were impressed by his "energy 1 . and toughness." ? ?-?- Born in Elmhurst, N.Y.; in 1913, s Casey hae alwasei had a reputation as a, quick study, a pragmatist interested , in-results-The idds he_grewenpewith -'"called hihe "Crime." Colleagues- say. etions. For BM Casey, workable an- . he has no pat:axe for perfectezolu: swers are much -better than perfectl- ; ones. te???? . erei I "A graduate of Fordham and SO John's University law school, Casey- . joined the Navy after Pearl Harbor,. but found himself oensigned,-ecause of poor-eyesight?.-co the-tedium ofpro- curement 'contracts._ He managed to. get dose to -people who were close to. William (Wild WY Donovan, head of the. Office of -Strategic ?Service, - and won a traxisfer.to the OSS. Approved For Release 20 "As_ a man who had learned early-I how -power functions," historian _Joel seph E. Persico has written, "Caiey? knew that in OSS most power lines: led back.to the Donovan law. partner- ship in New York" -? Ha was-soon sent to London where he became chief of secret- intelligence for Europe; with direct responsibility for penetrating Nazi Germany with secret agents in the closing days of the war: -. - ? : After postwar service in. Washington with a Senate committee and in Eu- rope as a Marshall Plan adviser, .Casey returned to New York, where he made a fortune practicing tax law and writing specialized and reportedly highly profitable manuelsien tax, real estate and investment law and related! subject& Among the titles: "How toi Raise Money to Make Money," "How! to Build and Preserve Executive; Wealth" and "How Federal Tax An- gles Multiply Real Estate Profits." - Casey made an unsuccessful run for Congress in 1966, and wile quo`ted saying: "I've made all the money in; business that my family :could ever! spend .... I want to dol something more meaningful and I'm convinced' that with my qualifications, I ? can make a real contribution in public of. ! fice." -- -An active Republican and contribu- tor to conservative- causes _ for years, Casey carne in for his first Senate confirmation clash in 1969, - when President Nixon named him to the advisory council of the Arms Control and Disarmament Agency. Chairman-1 J.W. Fulbright (D-Ark.) of the Senate I Foreign Relations Committee took is- sue with a controversial advertisement' on. behalf of the ? antiballistic missile , system that a -committee Casey- founded had placed in various news- - 'papers. But the committee approved his appointment. ?_ ..iee ? . -- ? A tougher battle developed in 19711: 041Q C WIREN2t9T0690: ate g Committee 'quickly ap- proved the nomination, ?but Ham Proxmire (D-W) led a fight to reopen the hearings .klter a variety of,' lawsuits came to light_ In two of the suite Casey was ac-i cused of violating securifies laws. Irt another, 'which -he evenally settled; for $20,500 aa part c a post-trial ar-, rangement that inch .ded sealing the. record, he ,Was sued tr plagiarism. , Casey's :account ot the plariSne suit was disputed by he tie' judge on", several ?? -key -points, fueling.: doubts- about Casey's =do-, but the corn--!.1 mittee stocel behind his appointment by a vote of 9 to 3. Proxmire! cOin-1 plained in a Senate floor speech that- he still did not, feel i 'asey sufticientlY, ? "beyond reproach" b. be SEC chair- man, but no one. voted against, confir- mation. Casey won high msrlcs for his'near-- ly two-year performance at the SEC. A surprising many obserrers with -the vigorous way he dealt with the securi-' ties industry. He iestructured the stock markets to incrsase.competition- ?and strengthened tin incial discicsure ; laws to make them !mire "realistic." I The performance ,eemecl to vali- date the predictions ef some senators I that his "rough-aml-tumble back- ,t 'ground" would prove an asset at the.. SEC. ? - . . - I 'In October :1972, however, 'Casey: e became embroiled in tproracted and bitter dispute when the SEC turned" over to the Justice Deoariment its en- tire file ? 34 cartons ? on the Inter-: national Telephone & Peleg,raph Corp.i 11 1 had been accused at Senate hear- ings earlier that year of pledging fi- nancial support for the GOP national convention in return fir settlement of :antitrust disputes with the Justice De-.; partment. . -? . , House members ' Who had been ?seeking some of the leccirds for con- I gressional scrutiny -c died- the SEC 1 .- move an effort to put the docunients.) out of reach until after the 19'72 elece-i he gave the:.1 RO?ps51)00tice34f)002643 that Department the filesbeanisel the department had asked for them.. JJ Z Z.0 Approved For Release 2001/03/06 : CIA-RDP91-00M,M45[00 AATICL .4117)aEl) NEW YORK TIMES ON 12 DEGEN.BF,R 1980 Director of Central Intelligence William Joseph Casey By WARREN WEAVER Jr. Special to The New Ye,* Ti mos lenged Representative Steven 13: Derounian, a Goldwater Republican, for renomination in a Long Island Con- gressional District. This produced re- ports, now regarded as more amusing than accurate, that the insurgent was a party liberal. Despite his status as a protege of Leonard W. Hall, the local Republican leader, Mr. Casey lost the primary and did not run for elective office again. WASHINGTON, Dec. 11 ? In World ; War H, while in his early 30's, William J. Casey developed a keen interest in espionage and intelligence. Working for the Office of Strategic Services in Europe, he helped plan the infiltration of agents into France and Germany be- fore the Allied invasion. Thirty years later, after successful careers in business, law and govern- ment, Mr. Casey resigned the last of a series of prominent Federal posts, con- fiding to friends that they did not seem to be leading him toward the jobs he wanted: Secretary of the Army or Di- rector of Central Intelligence. - Today those ambitions were realized when President-elect Ronald Reagan named him to head the Central Intelli- gence Agency, successor to. the O.S.S. The action was recognition of the New York lawyer's service as manager of the campaign that won the Repulican nomination and the White House. In an interview wi ei United Press In- ternational today, Mr. Casey said the President-elect had told him: "We need to have a strong intelligence serv- ice. Even though we may not have the biggest intelligence service, we know we want to have the best." Lost Congressional Primary In the 1980 campaign, as in much of his career, Mr. Casey aroused a certain amount of controversy; other Reagan ' aides questioned his judgment and background from time to time, but never the success of his candidate. At one time, Mr. Casey essayed a political career of his own, but without conspicuous success. In 1986 he chal- Approvedigg Reg tggfpag his career, he aroused a - ? certain amount of controversy. . Named Chairman of S.E.C. William Joseph Casey was born in Elmhurst, Queens, on March 13, 1913, and was graduated from Fordham Uni- versity and St. John's University Law School. His New York City accent re- mains pronounced. In the Nixon Administration he held a series of appointive Federal posts. In 1971 he became chairman of the Securi- ties and Exchange Commission. In 1973 he served briefly as Under Secretary of State for Economic Affairs but when Henry A. Kissinger became Secretary of State, Mr. Casey left the State De- partment and became president of the Export-Import Bank. In the Watergate investigation, the special prosecutor looked into charges that Mr. Casey, while S.E.C. chairman, had withheld documents involving the In ternatio nal Tel ephune and Telegraph Company from Congress by moving them to the Justice Department. Testi- mony was contradictory and no legal action was taken. Mr. Casey was a witness at the trial of Attorney General John N. Mitchell and Secretary of Commerce Maurice H. Starts for obstruction of justice in connection with a $200,000 Nixon cam- paign contribution made by Robert L. Vesco, the fugitive financier: Mr. Casey testified that Mr. Mitchell had asked him to see Mr. Vesco's attorney but said he did not learn about the con- tribution until later. Cut Political Spending Replacing John P. Sears as Mr. Rea- gan's campaign manager on the eve of the New Hampshire primary, Mr. Casey cut back spending and kept the election effort within legal limits. Generally, he was regarded as deci- sive, not overly diplomatic and little acquainted with modem polling and television techniques. Mr. Casey was one of the promoters of the abortive attempt at the Republi- can National Convention to persuade Gerald R. Ford to accept the Vice- Presidential nomination. Some Reagan aides believed that he offered too many concesanons thaoc9oess. : ClAr-ROFIN IcR000500010002-3 Sophia Kurz. They have a grown I daughter, Bernadette, who lives and works in New York Cit,'. Approved For Release 2001/03/06: CIA-RDP91-00901R00050 THE WASHINGTON STAR (GREEN LINE) 12 December 1 980 Text of Press Session Held by Cabinet Choice Q: ... Mr. Casey, could I ask you a two-part question, sir? The transi- tion report on the CIA recommends greater emphasis on counterintelli- gence and on covert action. Is that to be basically the thrust of your policy at at the CIA? Casey: The transition report is merely a report about information and ideas collected by the transition team. It will be submitted to me. I haven't read it yet, and When I do I will consider that and consider ? have consultations with the appro- priate people in the Congress and the people in the organization for determining what the focus of policy will be., ?? ? Q: The second part of my question, sir, do you expect any difficulty in your confirmation hearing because of having arranged for ? having seen the Vesco lawyer at the behest of Richard Allen when you 'were chairman of the Securities and Ex- change Commission? , Casey: I've been confirmed by the United States Senate four times. My conversation with one of Mr. Vesco's lawyers broke that case open. It was my case. I directed the investigation and the prosecution which brought to light the largest fraud in securi- ties history up to that time. I do not think there's any question about Approved For Release 2001/03/06 : CIA-RDP91-00901R000500010002-3 STATI NTL STATI NTL Approved For Release 2001/03/06 : CIA-RDP91-00901R0005000 fa-uL,AAL,IJ 01'; I'InGE THE WASHINGTON STAR (GREEN LINE) 12 December 1980 Reagan Stays With Frents in Cabinet Appoinimrits No Surprises Seen From tight Picked By James It Dickenson Washington Star Political Writer William Casey, named to head the CIA, was Reagan's campaign man- ager and is something of a testament to Reag.an's already- well- demonstrated loyalty to friends and associates. Some of the people who are closer to Reagan would be just as happy if Casey would return to his New York law practice, but he wants in the administration ? he would have preferred State or De- fense. Reagan is grateful to Casey for stepping in and running the cam- paign during the primaries after he fired John Sears on primary election day in New Hampshire, and report- edly was unwilling to shut him out. Approved For Release 2001/03/06 : CIA-RDP91-00901R000500010002-3 .,., AppgweskiFor Release 2001/03/06 : CIA-RDP91-00901R000 NEW YORK DAILY NEWS ON 12 DECEMBER 1980 By ..LAURENCh McQUILLAN and BRUCE DR.A.ICE- Washington (News Bureau)?Presi- dent-elect Reagan today announced his first eight cabinet-level nominations? including Donald Regan, chairman of Merrill Lynch, as Treasury secretary? and said that.;_all eight "share my philosophy"- about running the government.:;.? 7 '21 _ ? The firStglim- ps-e.of who-will be the-! key players on the Reagan team camel at a Z p.m. press conference in the- Mayflower Hotel here. They are: ". ' - _ ? New "'fork lawyer William Casey, 67, asAiteCtor of the Central Intelli-} gence:Agency.;_ ' EXCEZTTZP Approved For Release 2001/03/06 : CIA-RDP91-00901R000500010002-3 STATI NTL STATI NTL Approved For Release 2001/03/06 : CIA-RDP91-00901R000 ?41ICLE 1=1M PHILADELPHIA INQUIRER DN PAGE /A 12 OF,CENB.ER 1980. ??,.. ? ? By Saut-Friedman and Day Ed Hoffman Inquir 14Ictiotrtgton Bur eau ; WASHINGTON President-elect Ronald Reagan yesterday named half of -Itis:Fabinet-level nominees -- collection of cautious, conservative, business-oriented men. ? The.:Cpresident-elect,'. unlike his recent predecessors, did not person- ally introduce his cabinet selections, who included two men from Pennsyl- ? vaunt.. But he issued a brief, prepared statentenewhich said in part, ?These outstanding:individuals combine a balance- of-'experienced hands-with fresh faces, new- _ideas and seasoned perspectives." y - The appointees, all of 'whom are whit appeared to be mainstream, if conservative.Republicans_.?_ ? Reagan- filled all the major cabinet posts except-secretary -of state, al:"I though. Alexander Haig still is re- garded as the leading candidate for 1 The positiOns Reagan did-fill, and the men appointed to them ?subject to-Senateconfirmation 3:4-? Director of central intelligeikel Casey_67, of suburban, New-York City, a former chairman of. the?Securitiesand Exchange Com- mission (SEC), and manager of Rea- gan's?presidential campaign. ? - ,;,:The intelligence and budget direc- torS,,are not members of the cabinet, bilt7they have ,cabinet-level status and frequently attend cabinet meet-- Approved For Release 2001/03/06 : CIA-RDP91-00901R000500010002-3 Approved For Release 2001/03/06 : CIA-RDP91-00901R00050001 AiTiCLE 03 PAGE THE WALL STREET JOURNAL 12 Decembr 1980 STATI NTL 11111r, ey-4%'1,,i,ld Carry 2 Assets to CM Post, But He's Also _Seen:Br:1417g 2 ,l_tiabilities ByGALD FSsta 3roff _Reporter of Tffa WA Lt. STA! E !IT JOURNAL WASHINGTON-William J. Casey, the gruff New York tax lawyer nominated for director of central intelligence, would bring to the job two-valuable assets: a close rela- tionship with the President and intelligence experience. But, in the view? of? intelligence:profes- sionals, he also can-les two liabilities. His age-67-causes some to wonder whether he has the vigor to revitalize the Central Intelli- gence"Agency. which many experts consider to be-seriously demoralized. rAnd professionals fear that Mr_ Casey's intelligence e;cperience;?:which.date-s back WI World War If Might be outdated. :7 "The initial ton is going to be a ? alt-antI see .one,-'t said one formerintel-, lig,ence officer. As .CIA director r4- Mr. Casey ?would herit an agency that some of...Ronald Rea-:' ?-..; gaa's advisers thilik.r. needs wholesale -irn- provements and:, sweeping reorganiza- ? tion. They reportedly' -- - recommended that the new administration place greater emphasis on covert action and cbunterintelligence_ '; ? Mr. Casey said yesterday that the recom- mendations are merely a:collection of "in- formation and ideas- gathered by the trojisi- tion team. He.said-hehadn'. t read the Lzansi- tbn report yet and' would set policy /ater. But NIr. Casey has said .th.e. US-heeds -thF... world's "best" intelligence, and he ap- parently shares the view that the CIA's operations need to he strengthened. One in- dication of the emphasis the new adrr,inis- trate-n..1.3,61 place on intelligence may be the announcement yesterday that Mr. Casey, as . director of central intelligence, would be:a. rneinber of the President's Cabinet_ ? .Stansfield Turner, the current director of .national inte.u.gence,.. isn't a Cabinet mem-. Mr. Casey, who managed Mr.. Reagan's electon,, campaign, served during World War II in the U.S.. Office of Strategic Ser-. vices_ a highly regarded intelligence opera- tion that was a forerunner cf the CIA. He eventually rose to become chief of intelli- gence for the European Theater. , But for most of his adult life, Mr. Casey has been a highly successful tax lawyer. He made a fortune publishing "desk bco'res"far lawyers needing to know about taxes and es- tate planning. President Nixon appointed him chairman .of the Securities and Exchange Commission in 1971. Liberal Democrats protested. saying! Mr. Casey was too close to Wail Street. But ' many of the critics were pleasantly sur- prised when he turned out to be an active., relatively tough regulator?; - Mr. Casey later became Under Secretary 'of State for Economic Affairs, thea .chair- man of the U.S. Export-Import Bank. He managed Mr. Roagan's presidential campaign from last February through the election-although much of the authority for irunning the campaign was assumed by Ed- win Meese; a Reagan. confidant who will be. White House counselor. ..:.Intelligence experts say :. that .the first problem-Mr. Case' rale at. the CIA. 'shaken 'during the .'cOrigrsianal b.-We -closures-of qu.--tio, ??_ .1 Morale sank fur when :the. ? agency's :Co 1971.-1q.s a res.:31;1 sfonals.' disliked th ardx:Nlr.f. Tuner agrees tha.t arythii rnene&-tys one for shorld tackle is low ic ag-?,co7,- was save ,nic1-1.7es 1.)3r a per;_c,. tigaho -.1r:d-press. ctivi :.-Trier officer,- !mi.:lazed about S;),)--:. 'ert- art Or prtrgmnrmr ;any intelligence pro , d stral thinc most. ew-ryht be in imprc ner_in ellince offic iurrig,--stirOe" obs-"i say', if-.the'new atirr can get C( grass-. to- pass- two-b designed to. pron -OLA.aferits: One. wo- "otita.w. the wl7.,.les: disclosure-of the ,ria les -of CIA underco,, operators._ La recent :-,-..zonths; Some pubE: Loos have '..prii;t:?'.1. cf.): LAS has thrctrg;-: thei telligenCe coramunit: members that.thscic,,,sure of acots' identities ope them to-attack from : Ifrierdly agents: - ,-_The second bill .w e (clude some C inaterials-from- disc isurp under the Fri Com of information Act_ Inteili,gence--of cials-coatend that sti, ha bill is necessaiy assure agents and .so ?rcrs that their nam ...--...Mr?1,t-asey- isn't Kpect.d1. to encount -any serious proble.m, in CongreSsional. co .hrmaton_hearings. I ut he may face-son -tcldish iprestions ov re.7ent .disclosur that while-he was ch 'it-man-of the. SEC:1 -_lawyer 'or- fugitive finarci. R.ibertNesco, Mr_ VP co WPS. tinder SEC i -yes tigatiort at the: reprt-;enti7e7sbnntight-t . the-inveSt gation ; dun rig thmeetingwh lt,fr:.-.e2.sey: But Rich Ird Re.aga foreign .;policr. ad viser' who.. arrariged...12 -...2.has said:that-he didn't:I-mow- tt .lawyer..7.Would.-discuss the- Vesco invesdgz ondCaseyssid-yesteday that h the:?..case-: against Vesco,..wh eventually_was indicted five separate time courts- lot securities violations_ MI Casey 'Said:he:didn't Mink there was an questoriabciut ptirsuit of_th case against mi.xesco Approved For Release 2001/03/06 : CIA-RDP91-00961 R000500010002-3 STATI NTL Approved For Release 2001/03/06 : CIA-RDP91-00901R0005 ST. LOUIS POST-DISPATCH 12 ThCF.MBE7H 1980 ... The Reagan Team President-elect Reagan has announced the names of eight of his 15 Cabinet-level appointees and, by and large, he has made impressive selections. With only a few exceptions they are men with whom he has had: long personal associations or close political relationships, so Mr. Reagan is likely to be spared the sort of surprises or problems of loyalty that his predecessor faced with Michael Blumenthal and Joseph t. Califanoi-He will have a deeply conservative Cabinet;:but. that, after all, was the sort of team he wai'.;elected to assemble. He will also have -aCabinet, if his ? other choices resemble these, of highly successful business and professional_ 'men,- which is to say?.':- persons who are more 'pragmatic in outlook- - than ideological.; :" ? The " Senate traditionally -,? and with ? justification has given new presidents the cabinet officers, they have nOminated, and there is no reason that Mr. Reagan should not 'be accorded( the same courtesy. But as the,`.7. Bert. Larice--affair so vividly demonstrated, there is a difference between being accommodating- and in rushing the confirmation ": process -through in so perfunctory a fashion that great chunks of Idamaging information about a nominee '? I-material - highly. relevant to the job he is 'about to assume are blithely ignored or, ? indeed, never even looked for. So while we say that the Reagan appointees, in general,-., appear .to". be of high caliber,a, more definitiVe judnent on their fitness for high public , office Must - necessarily:: :await a responsible examination by the Senate. Four of Mr.::-.Reagan's appointees havet" federal government experience. His Defense.. Secretnry-designate, Caspar W. Weinberger, secretary, of Health 'Education and Welfare and budget director in the Nixon Admnistration, is known as an intelligent, "dollai-conscionS administrator_ The - Pentagon no doubt will prosper during the Reagan years, but Mr. Weinberger should be - a tough-minded force for efficiency. Rep. ? David Stockman, the new budget chief, has Approv responsible advocate for ? his departn cot. It is--disappointing that for direct( r of central intelligence MI% Reagan chosf: his campaign manager, William Casey, t= tax Sawyer who was chairman of the Sect', ities . and E-xchange Commission.: in the Ix on years. His role then in secret calm aIgn contriutions from the financier R( hart Vesco has never been satisfactiny rexplained; morever, his backgroun?( World War IL intelligence suggests thai under his leadership the CIA will agai encouraged to engage in covert activitie:- and ; the black arts. For attorney, general, Mr:, Re; gan selected his own lawyer and one of his o; lest Iriends, William French Smith, a respe :member of West Coast legal- circles. He has - been reticent about discussing his view on civil rights and basing, but as a Universi y cf California regent his support of the soh ors refusal to admit Allan Bakke suggests hat he is not insensitive torminority rights. [he head of :the Reagan economic team ? Treasury Secretary-designate Do_r aid Regan: the innovative chairman of Me riIi- Lynch, may well be the most impressiv of the nominees. His will be the - job of quarterbacking the Reagan tax cuts thrt - gh Congress -- and his will be the responsib ity of recommending whether. the Chry 'bailout should continue or whether the at ing 'automaker should be allowed to fail. ' For Commerce, Mr. Reagan has tap -ed Malcolm Baldrige, chairman of Scovillel one, of George Bush's strongest backer S nd a man of refreshing _candor. One of his chief priorities, as you might expect, is nutt ng back on government regulations. The r eve Transportation chief, Andrew 1.. Lewis a management ?onsultant, has extens ve experience with railroad bankruptcies int his views on auto or tiansit problemSare lot ? widely known. But his philosophy ?ill - become ? More appa:rent_ under ..,2.Sen- itei questioning Solid is the word we would apply to Mr. Reagan's choices. ".There - is not mich made himself_ a scholar in the arcana of flamboyance there; thl impression we gel is -federal spending and he is a disciple of the of a competent team in,the making. The N voguish supply-side economics, .which Right Is upset that the president-elect I.as informs the Reagan tax-cut propOsals. neglected '. high ideology: Feminists a id -.Sen. "Richard Schweiker, formerly theblacks point to the absence of women or most liberal Republican in th Senate has minorities among his selections. With seven undergone a sea change inphildiophy, which , more spots . to fill, Mr. Reagan may- veti e 0OOF -e- - epaTrmen o man ffrardr r 6 Services. . action critics. In any case,.the country wot:id ::1.115 activist record on bealthissues suggests," not be ill served if the next appointments ztret Approved For Release 2001/03/06 : CIA-RDP91-00901R ARTICLE .ada o Says Cabinet vernment ora. BY Lee Lesesze: weeerertee Post Starr Writer Ronald Reagan named his -first -eight-Cabineteselections yesterday, sin- -chiding heads of the Treasury,_ De-- fame and Justice departments, and said that the men be-picked increese his confidence "that Cabinet_ govern meritcan and.will work" - The president-elect chose notto apC- pear with the men who will help: him govern, but the eight paraded sing,See: file onto a stage in a Mayflower Hotelf ballroom to have their names celled by spokesman Jim Brady, be photo- gaphed and answer reporters' ques- Reagan did not name anyone to the senior Cabinet post, secretary of state. He reportedly wants Alexander M. Haig Jr. for the poet, but the nomina- tion is being held up by fears that Haig's role in the Nixon White House, might provoke controversial Senate confirmation hearings damaging to the administration in its first weeks -in Sen. Howard H. Baker Jr (Tenn.): who- will be the majority leader in the Republican-controlled Congress:: that convenes in January, pve Haig's-can- didacy-an anapiarent boost yesterday: Baker said "Haig did nothing improp- er" in the Nitoneyears and could:be co nfirmecL?Baker added that be be- lieves Reagan-has decided to nominate . ,Ventalin'a' -,..aseasz-e7:nsesezrss The eight 'nominees armodacedhyes- teeday: anaseseeli nes:, ? Donald T.'"Regan, chairman of the brokerage ho&Merrifl Lynch: and Co. Ince to be treesury secretary:- _ ? a ? Caspar- Wa? :Weinberger,-firm- er -Secretary - of ' health, education-.and welfare- andsdirector of the Office of ManagementeandeBudget, to be de- fense secretary. _1 ? Williarri Frez:ch , Reagan's: personal lawyer 2nd financial adviser 1 s a-1 THE 41ASHINGION POST 12 December 1980 businessman who is chairman of Scovill Inc, to be secretary of corn- merce. ? Sen. Richard S. Schweiker (R- Pa.), who had not sought reelection, to be secretary of health and human ser- vices. ? Andrew (Drew) L Lewis Jr., dep- uty chairman of the?Republican Na- tional Committee, to be secretary of transportation. e Rep. David A. Stockman (R-- Mich.), a Reagan economics adviser during the campaign, to be director of, the Office of Management and Bud- STATINTL ? William J. Casey, Reagan's 1980 campaign chairman, to e director of the Central fntelligence Agency. Together they are a mainstream Republican group, a Cabinet nucleus that will not alarm liberal GOP mem- bers although it may somewhat disape point extreme conservatives who hope: that a Reagan presidency will be strikingly different from previous Re- publican administrations. As the eight white males in dark business suits appeared on the hall- reom stage, they looked a little like a singing group without its choirmaster, but Reagan decided that his presence would detract from his nominees' first moment in the spotlight, spokesman , Brady said. - "He feels this is their day. It's their show," Brady said. The nominees did not seem to en- joy the show much. Weinberger was the first to make clear that he thought it inappropriate to give an- swers of substance to any questions before answering the questions of the Senate committees that will vote on- confirming the Cabinet members, but, all of the nominees spent much of the question-and-answer session orally ducking. Smith answered several questions ? including ones concerning ? civil rights and Abscam ? by saying thatal: he needed to do a lot of studying. "It's going to take a lot of learning before I ! can come to any conclusion' said the man who has been one of Reagan's. closest political and financial advisers Smith was confident, however, that Talk) i a sanior;pertner with the-Lo his personal relationship With Reagan Angeles law firm of Gibscin,; Dunn &I would not lead to any abuses. "The crt4clikp rforReTe4peri200 ?,,Malco :PaIdaagee,a Conneettart . _ ess ?? . . . - Reagan's first eigh nominee5 are a politically cohesive g oup. All worked' for ,the Reagan cameaipe in one way. or another. Their average age .s ;i6 despite the- inclu.sion of the 34-year-o1d Stockman. Casey, 67, is the oldest; of the others, : Only Stockman and i ewis, 49, are un- der 50. ? ? All had been rep-ted as prospec- tive. Cabinet choices in speculative press reports that bed been surfacing one name or another since shortly af- ter Reagan's Nov. 4 election victory. Baker has said he you'd like confir- mation hearings to -..)e held between Jan. 5 and -Jan 19 so that the full Senate can be prepared to vote on the I nominees -as soon ; s possible after -Reagan's Jan. 20 inauguranon. ? Most of the questions put to the ?Cabinet nominees yesterday coacernecl. economic policy. . . Stockman was asked about cuts in the 1981 budget.. He replied that the Reagan planners are "at a very pre- liminary state," but that there is "no indication we would back off' the 2 percent cut Reagan pledged in his campaign. "Let's face it, hula problem facing the Regan said. He Reagan team would anti-inflation packag, p,et cuts and tax cuts question whether, a- - ion is the No. 1, nation today," .dded that the lave n) devise an including bud. Regan ducked a ; treasury secre- tary, he would be the administration's; chief economic spokesman. ? 1 Schweiker was asked about control-: ling health care costs "As a comfirmed1 two-mile-a-day jogge ," he replied, he will emphasize exerc ie and nutrition as ways to prevent dasease. . , He added that. my . budget cuts-1 wOUld be "in the a_ ea of fraud and4, abuse." ? ? ? ss- ." I "I'm sure we're (ruing to serve thel needy people of this? country," he said.1 One area where :smith was willing ; ? to indicate his thinking was on con- flict-of-interest-laws end regulations. "I i think there is much that is required ! that is unnecessary," he said of the re-; quirernents that Rea ;an advihsers have:1 said have delayed and c-omplicatedi ,their efforts to ,form .1 Cabinet " Ail r 00.0500010002-3 there you will not be disappointed,"- he. told: a questionernesaa,nas eassa',.:-esY4 Approved For Release 2001/03/06 CIA OPERATIONS CENTER NEWS SERVICE DISTRIBUTION II 11 Dec 80 Date. 4 Item No STATINTIRef. No. 1 1 al .1 1 >1 1C-flea gan-Casey Ni T'T\ CIIITOTON , Dec 11, Pueuter Pillia Casey, named today hy -President-elect Pon,ald 1-:.earan to be CIA director, will be re-entering the field -where he first made his mark. Pr Casey, 67, a tax lawyer who managed the Seaman camnai on in its final eicht months, has held various key oovernment posts in the past, including chairman of the Securities and Exchange Co.,a7lission (CPC). Put his first major mu)- lie job an with the Cf floe of r2-trategic Services , Norld Pr II forerunner of the CIA. :.z? Casey was a 32 -yser-old 1.7e%,7 York attorney who had already made a fortune writing technical manuals for lawyers when he was chosen in 1944 as CCC Intelligence chief in London. his principal assignment was one of the most crucial in the war -- to oversee the infiltration of more than 20C) Allied arrents into T'azi Germany 17ef ere t1-.e final push. 7r_. Casey once exulted that he was proud that all but al.-out a dozen aqents returnee, safely at the end of the war. 00 In Casey, ' es]Pionace historian Joseph Persi co wrote after the war, 0 orEC had a r1,7..n with an analytical mind, tenacious will, and a capacity to generate high morale amono s staff . ' POLL 1423 PC-7'.eagan-Ca soy 2 Washington [ianjnc morale will 1._)e one of !'r Casey' s chief initial tasks at the CIA. The aeencv ' s confidence has been .hatterec3 by er.-,1Darrassine revelations about assassination plots a aainst foreign leaders and doubts about its ability to keen. secrets. Pilliam Joseph Casey, who was born in New York City on Parch 13, 1913, is an affable man whose reputation of (-Jetting along with people is expected to be an asset at the CIA Aft the war, :1r Casey returned to his lawnractice in New Yorl, . In 1971, he was named by President Nixon as chairman of the SEC. No held the position until late 1972, when he became undersecretary of state for econo:ric affairs. In 197,1, he became president and chairman of the TExport- Import Nan):, an in denendent c,overnment auencv which makes loans to promote the sale of U.3' . goods ahroad. Ce also has served as an adviser on arms control before ra-11roir. to hs 3aw 7:r act i co . Last. February, he returned once amain into the political limelight as Pr rzea gen' s campaign mana c:,rer after lonc.1-time P.eaean aide John Sears was fired because of disharmony ane c c't problems in the camnai on organization. LT:LhP 1C3C, 0"2. Approved For Release 2001/03/06 : CIA-RDP91-00901R000500010002-3 A C. TICLE ATP.RLD Approvecirt_- Release 2001/00/041ApkINPR5h00901R000500010_ 11 December 1980 STATINTL 4 ta me nnouncements Start ----1`41-1:- ..,...--.1:-_,-,:-.., . -- . .., ;h.". By Lee Lescazei";,',:i--;'':,,,,' Tc., , pears to be Reagan's choice for secre- .Washington Post Slat t Writar ; - :. tary.of state, although some advisers _ Ronald Reagarr said yesterday that - had counseled that Haig,. because of he willannounce ?hiee fus(:Cabinet his role in the Nixon White House, nominees today, and:there were inch- ;would be likely to stir controversy in cationsAhat -.ills, initial . group will in-p- Senate .:,.confirmation hearings -- too. dude roUghly,,,j. hAlof;4h p( -.. high a price for the fledgling adminis-!- el posts to b6!.... ' ,tration to pay.;---_,"! ' --..-::::!-::.r:;,-;,;;',1-\7-: - --'? t...,-",;zi..,-;4.':?':;.,;;',,,,-: A document in which former Wa., ThetPresident,ele his second familiarizaiii;;tr"5;totirg,:f.:.(7 ''''''--teriate prosecutor Leon Jaworski Javiorski hails Washil.:*thn-;''' cliCli..:Ii6" indicate hof '.-4-:: i.gHthateg-- ana5danthe'u-nsamu:vtgh:eraforc7 eo!'f inWapteerr-:': many011iii Cabinet-dioicefieor'Alicki=". ,uacung,. Richard. M. Nixon to resign ones; will be annciunced ?today.:-..-_?...-r...-4K-:- ' ? ---',. has been circulating_ in Washington, : ReagaiThrel;onite'dlY.'17:'..,:d-----''''.i'Ll-i, 'l-?;;-::__-__,65:'::'-however. In an unpublished interview_ name-, W'Perional:.attorlieY1Y"'"i'::., with the editor of Armed Forces Jour- Frencik:Sinith;':attOrney -generg,:Tand_ 'hal that MS made -public by United Caspa21.- -?Weiriberger,'InrinerOhief.;',... of the Oce f , Press, International;,,Jaworski - added ' 4_ - Manegeinenaiiiiu :? 4.1.,?,_ ...j.aig might deserve to 1..0.4, presi?; . -.1.,..1 ,------ Budget; ,secretary of defensfsS:v-,--- .:- dent someday., , , ,-.,-, ,....,- , .. GerriAleiander M. - 4:.still ap-:. ',-;.,.. ;Other choices,- reportedly.. decided are: Sen. ,Richard Schweiker (R-Pa.), Reagan's 1976 vice presidential choice,. for health, and human" services; Wil- 11am Casey, Reagan's 1980 campaign chairman, to head the Central InteW- gence Agency; Drew Lewis, a Reagan supporter on the Republican National Committe.e, for /transportation, Rep.: St&Icrrian -:(R-Ivlich.) as director. -2 of the Office of' Management and .:!Budget, and'Malcolm Balridge, who the Canapaign, of Yice. President- elect George Bush in Connecticut,- as ?commerce secretary.= Approved For Release 2001/03/06 : CIA-RDP91-00901R000500010002-3 ?.? ?? -? ?.???r? 71%4,4-, ? -Schweikritci: ??: ? ith 101..; : Itlyer17,'? ' ? -and...RobertzieHornig. . 4 Vi341144424`,StarStag :PreSidtar"erieti ? W het haswrestled forinore than five e:weeli=e-itlithetniedietiXer the-Cabi- ..neteinewhicte he hasvowed to- vest ? unprecedented:anfliiiretea, today W. snveil eight of.:tlipoweis.to4,e.y -.'eeScheduled ecet*rianeed? today:e sc.= -cOrelineitctyeell-iiitificaeck eaurdei; ?Donald-7;;11"eg-4,rilf6reas..Treiesiirje ---=secretaryeteRegan'eSTriirbrninent . figure-in NeWiYorli financial circles _-andechairmatiofe-Mertill;':Lynch; Pier-te,-. Fennee:ancltSznittOnce the natiori:s.':raFgeSte,i,jeteestinerit brokerage '-firtne4..ee4teetee're'eeeeeie!ee't, * CespareeeWeinber.ger63e?rai de- fense secretaryeNfelt'riarned,"Cap the Knifeeforehiselnidget7cuteing zeal; eWeinberger,lerr,ACC-P,Oeslelen,tpf the' Bechtel-. Grcee In cc*, es. a former HEW-secretary.'and:bildger director e?Who :served as Reega,titele.nance. die. -. rector whilehewaslievernorof Calle -;:tenchee:Siiiithee 61; .a , Mori* gerterat;:eeriNie.Reagan!S. , personal: laiifeteelarktIOng,:time:, friend aridenS:emaiiiret ai-Teter in the prestigionslea*geleilaivairra of GibtioteeDuirii and Criitcleere'e ? Sem:Richard' ?eelew,eiltereeSetea.0 .seeritiriarefieelthatti:sei;: ei,iteeich'weeilcisriii4,1Republi--- '. 'Can, bei.7-thee'; TerabeeNIEWicoramitteee Is; retitingeafterr;211).1e4r3._:61 -rePree: esentletgePerin#19pnialiteCongreseee'e lIe ,was Reicee0eyktp-Feeiclentia1 choiceifieldselfei4sttehrgsfifle1976 bid? for- the Renubli?othnatjo?.,' .0 RereeDaijietStOolieff?aele; . budget clipeCtor;.:StaeTtrna:ii- is a-tvid-;,. term RepUbliCaneeitigtessman from :e Michigan ewhai?begane.hiSr., .-Career, a,an,aideetolWerolin - dersonee-R-41:eandNcileete:aceaini, framcoUeagueso..4g-of the itgee.and "'other c :*.Dre. 4,9;'": - as- tap?tarfon". 'efiseelt Philadelphiaeraanaienfeiit teand'Tfie nancial-con.sultantle;aforerier GOP guberilatorialeandlettite!vand -seasoned , aldeFerel'a siellplIOMORe 'iand-Reagai1"g:monrieVegetr thief* 'marte'of-the;!RepriblittilfeNationat rrt thi cr? t4;4412:- ..rriitri -?-? ? ? .? 1-Ft109QMPIVAI) Malcolm Baldrigee ? 58,, ase com- merce secretary. Baldrige is chair-i m a nof Scovi 11 Inc. t amanufaCturieig . firm headqeareel."' in .Wa terbury?. Ccinne and headed, Vice President- :fleet -George Bush's-presidential campaign in the state. ? * WilliamJ. Casey, 67., as CIA dires-, tot. Casey, a former intelligence:. agent .ance well known New York , tax lawyer was director of-Reagan's _preside-MI.1Fam at n and a former chairmaneof the ecerities and Ex- ., change Commiesion.: ? , Not on the listto nanagd to'claei is Gen Alexander Haig Jr.', still the, " leading candidate for secretary of state. Although.4 the final decision has. yet , to be Made, ;transition. sources said Haig is likely to be nom- inated in: he next few days.e Reagan who arrived in Washing etein.'lesterdaYefor a .four-day visit 7 end promised some weird On Cabinet eselecnonseoday; was asked. whether ? e.H?il1was -in the runningefor. = the State :Department. .Reieganere OKI: "Sure' ' 'kserlior transitiCirr of ficial. called Sen. Jesse Helms, R-NC., on Saturday , and-asked him to privately poll his colleagues on the acceptability of Haigeea,formet NATO corrimander, as Reagan's senior foreign policy subordinate. . - "I am confident, based on the. ap-, peal of Haig that Lhave found among e senators,' ehat 'Mre Reagan can-feel very confident about his nominee," -said Helms, an ardent Haig supportel -er, in an intertfew yesterday: "That' doesn't. mean that questions- won't1 he raised etthe.(eonfirmation) hear-i ings, but the hearings Won't be lengthy.,;:-eeee,, - ,.eeeseeeeee?e Helm predicted that Haig, if nom- inated, would be approved "over- whelmingly if not unanimously" bY the Senate Foreign Relations Com- mittee and "promptly" confirmed by?. the Senate et. r , After some senators ekpresSed^ 'concern.; over., the weekend about :whether Watergate tapes might con- -tain'something damaging to Haig, wrhoeveas chief of staff during the final days of Richard Nixon's White House, Helms said he called the for- ? mer president. Asked whether there -might bee anything incriminating about Haig on the tapes,_Nixon? re- plied, according to Helms: "AbsolUte- ly not. I know More about those tapes than anyone else." , Nixon: is arncing those who tee/ ,lobbied,haed .foc- Haig. with the ? president-elect, - _ eeetTperte'R.eagan's:arrivarlesterday for his getond visit since the elec- orhewas hounded_ by reporters ease14004405/98 4e1F4A4RD99r1 thaife sometIOng by tonamorroev," hes, _ The president ect was somewhat defensive about suggestions that it has taken him unusually long to put together.the top echelon of his. administration.. "You alt keep' pressing me. about these an- nouncements," he said. "I don't know. of anyone who's ever an- nounced this early.".. - hi 1976, Jimmy-Carter unveiled his first Cabinet nominations on Dec. 3 and his last on Dec. 24. In 1960, John Kennedy announced his first selections on. Dec. 1 and com- pleted the'proterss.' on -Dec. 16. In` 1968, Richard Nixon-nimed his en- tire, Cabinet on Dec:, _ Sources say- Reagan has at least tentatively settled on two other Cabi- net. selections: Ray Donovan, a New Jersey contractor anctstate director of Reagan's. presidential campaign, as labor secretary; and Jewel Lafon- tant, a Chicago, lawyer and former deputy SoliCitor general during the Nixon administration, as secretary of housing and urban development. ?_Reagan flew to Washington from New York yesterday morning. He met with Republican National Com- raiffee chairman Bill Brock and had lunch with-some of his top-aides, including 'Vice President-elect George Bush, Edwin Meese III, James A. Baker III, Michael Deaver, Drew Lewis and Dan Terra, his campaign! finance director. - ?Reagan then met with black and Hispanic supporters. The black lead-I ers told him that jobs and the econ-I orny were. their primary concern,1 and he:told-the Hispanics that his Latin American policy would be set country by country because of his concern about nations. such as Cuba that are under Communist or Marx- ist domination. - Today Reagan is scheduled to gete -a national security briefing add to Meet with transition officials and national .black leaders. Later he is to meet at Blair House, where he is -staying, with Democratic Sens. Henry M. -Jackson of Washington. and Jelan Stennis- of Mississippi and Republican Sens. Bob Dole of Kansas and Jesse Helms of North Carolina. = e- Tonight Reagan attends an Amer- ican Enterprise Institute dinner in j honor of William Baroody Sr. and then has dinner at the home of Kath- erine Graham,- chairman of the Washington Post Co. - ? Washington Star Political Writer. James R. Dickenson contributed to this report. - ? ? -00901 R000500010002-3 Approved For Release 2001/03/06 : CIA-RDP91-00901R000 'Si 1 i'tia CO ?AG?,74 ?ye !Investo'r'Official Believed in Line For Treasury Job Donald Reiaii Is Eih ected to Be Named Today - - - ? By STEVEN R. 'WEISMAN special b;Theigew York Times -7..WASHINGTONe.Dec. 10? President: elect Ronald Reagan plans to announcetomorrow his selection of Donald Regan, chairman .of Merrill Lynch. &? Company, the investment concern, as his nominee for Secretary of theY Treasury,, according to senior transition officials.' `The selection of Mr. Regan, a leading. figure in the Ntrall Street. financial, com- munity, is expected to .be announced along with abouthalt a dozen other Cabi- net choices, as well as the directorships of the Central. Intelligence Agency and the Office of Management an Budget. ? Among the other selections expected to be announced tomorrow were William J. Casey, former chairman of the Securities rnth and exchange Coission, as Director bt eentrai intatirgence; \atilt-ern French. smith, Mr. Reagaiirs personal attorney,. in Los Angeles, as Attorney General; Caspar W. Weinberger, a longtime Rea- gan aide and former Cabinet rnernber, as Secretary of Defense, and Representa- tive David A. Stockman, a Michigan Re- publican, as director of the Office of Man- agement and Budget.,e Others RePortedly Chosen t Sources close to the Reagan transition said that otherannouncements would in- t ? clude Senator Ricimrd. S. Schweiker, a Pennsylvania -Republican, as Secretary of. Health and Human: Services; Drew Lewis, a Pennsylvania businessman and Republican Party official, aS Secretary of Transportation-nand Malcolm Baldrige " 3r. chairman of the Scovill 'Manufactur- ing Company. of -Waterbury, Conn., as Secretary of Commerce. ? Knowledgeable Republicans-said that. Mr. Reagan bad stilt liot settled com- pletely on a choice:or Secretary, of State, but that Gen- Alexander B. Haig, retired, of the Array, former Commander of the porth AtlanIdoljreaty .1.,Organizatiora Approved For Release NEW YORK TIMES 11 DECEMBER 1980 'forces in Europe, was the leading candi- date. This morning, before traveling from :New York City to Washington, Mr. Rea- gan was asked by reporters whether Gen- eral Haig was being considered. "Sure," he replied. ? ? . Support :for the general, which had seemed to diminish somewhat last week, has been building in recent days on Capi- ? tol Hill, especially- since Democrats in - Congress suggested that they would use Ii-selection to undertake a scrutiny of 'hiSrole inthe Watergate scandals and the pardon of fermer President Richard M. Off-eon.. ? . ?? ? * ? * Last weekend Robert C. Byrd, Demo- crat of West Virginia, the Senate ma- ority leader, said that General Haig, a former chief of staff to President Nixon, might be rejected by the Senate if his role in the Watergate was not cleared up suffi- ? ciently by a review of the White House tapes that were made at the time. Mr. .: Byrd's remark was reported today to have built up considerable anger. and re- .sentment among General Haig's support- _ r. Senator Jesse A. F.elms, Republican of eyorth Carolina, said, "I called the No. I. r expert on the tapes ? his name is Nixon ? and said, 'Tell me if there's anything Ott the tapes that would embarrass me or Hag.' And he said, 'Absolutely riot.'" Mr. Reagan, making his second visit to the nation's capital since his election, had ? low-key day of rneetings that contrasted with his exuberant display of courtesy calls and visits to Capitol Hill three weeks age ? . ? , Mr. Reagan, in a private visit with Bill Brock, chairman of the Republican Na- ticlnal Committee, has discussed the pos- ? ? sibility of choosing him for one of several Cabinet positions, including Deputy Sec- ? .retary of State. There have been reports that Mr. Reagan wanted to bring Mr. Brock into his administration and then choose his own appointee to run the party organization. . ? . . Names Are Discussed - Among the other names being (els; cussed by Republicans today were Ray. Donovan, an executive at a New Jersey construction company, as Secretary of Labor, and Thomas Sowell, a black, who is an economist at the University of Cali- fornia at Los Angeles, as Secretary of. ?Labor. ? ' The Reagan transition teeth has re- portedly had difficulty* settling on a choice for Aiculture Secretary. Knowl- edgeable offieials said today that Senatcr Paul Laxalt, Republican of' Nevada, a liey Reagan adviser, had been toiu oy Mr. Helms and other Republicans it7 Cua- gress that they wanted the post to go to Richard Lyng, a former Commissioner of -Agriculture in California when Mr. Rea- gan was Governor. ?. : . , The reported choice of:Mr.Regan as. 2001/03/06 : CIA-RDP91-00901R000500010002-3 STATI NTL Treasury Secretary comes after a series of false starts for that job. At first Wil- liam E. Simon, a former Treasury Secree tary, was said to be certain to gee his old job, but Mr. Simon withdrew from consi eration after some Republicans in Con-.41 gress,criticized him as uncooperative. - Then Walter B. Wriston, chairman of Citicorp, was thought to be the leading choice, but transition sources said that he had been dropped because of conflict-of- interest problems arising from Citicorp's involvement in various ,Government ac- tivities. ?' Mr: .Regan was said ta-be the choice of Mr. Casey, who got to know him ,while Mr. Cagey was chairman of the securities commission and Mr. Regan worked in 196e-70 to help save several faltering Wall Street brokerage firms. ?- - -4-seeseee STATI NTL Approved For Release 2001/03/06: CIA-RDP91-00901R00050 AR T I C LE APP.E:..I't.ED THE WALL STREET JOURNAL ON FAG 11 December 1980 Initkittabinet Ciwices Expec,,et d Today; Merrill-Lynch's Regan Seen at Treasury .;_;? ? ),4::2; By TrMaerElY D ScHELLHARDT Stag Reporter of ;rim WALL. sTREF iounNAL WASHINGTON--Ronald Reagan is exi pected to begin announcing his Cabinet toi day and tomorrow, with Republican sou rce saying Merrill Lynch & Co. chairman. Don-1 aldRgan 111.1R line for Treasury Secretary. - Casey, a 67-yearlo1d:-New tax :lalwyer. has 1ang2coveted. the CL.k. Past; His; Experience- In the intelligence area .came ,during,'World 11 when the4(ecaine intel- JigencE chief In Europe for. the Office.Of'Spe Adal Services-, a:forerunner :the, CLI.:Dur- % ingi the Ntxon and- Ford adrn inistrations;: he Was SEC chiet'Under Secretariat State for ,Eoonornic-Aff airs: and. chairman; atthe-....1.1,S.;_ Export Import ?Bank: ;..He was director of the Reagan, presiden:- lialanpaign and is chairinan, of the Presi- ;:clent-elect's transition teart.:Atiunsuccessfull ,Ccingress;On4i candidate in:1966; he has been inVolvedi in Republica.ri / presidential paigns since, the 1940s Reagan; confid ant,' Mr.. Casey has been vievied as a :.Candidate, for several. top-,Cabinet pasta in tile new ad-z; min' istration. Lac-11:131'TM Approved For Release 2001/03/06 : CIA-RDP91-00901R000500010002-3 STATINTL Approved For Release 2001/03/06 : CIA-RDP91-00901R00050 ARTICLE AP37,4RY0 DA PAGZ WASHINGTON STAR (GREEN LINE) 10 DECEM2ER 1980 1 , jpecial to PI* Wash t n g to n Star rest Friday Bill Casey ? re- portedly the next CIA director? breezed into the Watergate Hotel to see Al Haig, taking with him? ' 12. men described by an on-- , looker as Secret Servicemen. But ? not even the present CIA direc-' tor is accompanied around town- ba guard of 12. So maybe all' those guys were Casey assistants or FBI specialists trying to fine- ,tooth-comb Haig's background for possible deterrents to?confir- mation by the Senate as secre- ? tary-of state,-y , 4,,salz?-ti? _ ':-.. The- American Enterprise ? Institute dinner tomorrow night- arthe Washington Hilton has a power-stacked list. Besides for- mer-President-Ford, five U.S. senators, four members of the Reagan advisory or transition team and 19 foreign ambassa- dors, 47 congressmen and 16 .newly elected members of the House have accepted. And the ! 1Reagans are scheduled to drop by during cocktails..- -,-- - , - ? ? 13ETTY BEAU 1 -31010212MO'Cl racLIIPTBD, Approved For Release 2001/03/06 : CIA-RDP91-00901R000500010002-3 Approved For AR. IC I CLE ON PAG1 Release 2001/03/06 : CIA-RDP91-00901R00050001 THE WASHINGTON POST 10 December 1980 Ilaig-On,ce Again .1-(ey-,(antlidate to Head State Dept. By Robert G. Kaiser Wsehlrigton Post Staff Writer ? Gen: -Alexander M. Haig Jr. is Once again a leading candidate for the post of secretary of state in the Reagan ad- ministration, well-placed sources said yesterday, suggesting `anew that. the searth for a Reagan Cabinet is some- thing of a political roller-coaster ride. At the end of last week the same knowledgeable sources were talking as though Haig's fortunes were fading fast after Republican leaders 'in the Senate warned that a messy confirma- tion ...fight was possible 'if Ronald Reagan did-norninate the former chief of staff in .Richard Nixon's White -??? ? - %;-?tr, _ One factor that helped revive Haig's prospects, sources in the transition \ team said yesterday, was the paucity of alternatives to him. "Look at the I choices," one transition official said af- ter predicting that "Haig is going to get it." Alternatives mentioned by sources cI08 . to Reagan last Friday were. George P. Shultz, Caspar W. Wein- berger and William J. Casey. Shultz is hotly opposed by many conservatives, .1 Weinberger is in line to be secretary' of defense and Casey is set to become director of the Central Intelligence Agency. None of the three has exten-: sive experience in foreign affairs. ( EXCERPT STATI NTL Approved For Release 2001/03/06 : CIA-RDP91-00901R000500010002-3 Arppanci-ForrRelease 2001/03/06 : CIA-RDP91-00901R0005000 11".T ON PAGE .13,1? THE WASHINGTON POST STATINTL 8 December 1980 NAL - By Hen Such a flap! Furor! Brouhaha! Everything askew! ? ? `!No!" shouts William F. Buckley Jr. from his vexed sprawl in the conference room of the National Review as the clock ticks to- ward the magazine's 25th anniversary ban- , quet the next night.. - / Friday night, 600 people?most of whom number themselves among the "we"?gather under the gilded ceil- ings of the Plaza ballroom. His swivet behind him, Buckley has dining com- panions who include: Henry Kissing- er, Clare Boothe Luce, probable CIA. chief William Cas_ey, Senator-elect Al- fonse D'Amato, Walter Cronkite, law- yer (and old Joe McCarthy aide) Roy Cohn, futurist Herman Kahn and col- umnist George Will, who warvonce the Review's book-review editor and who fills in for the missing Reagan and Goldwater. EXCETZT.:',:'1; Approved For Release 2001/03/06 : CIA-RDP91-00901R000500010002-3 Approved For Release 2001/03/06 : CIA-RDP91-00901R0005 AATICLE APBEARZIO O "'AGE Reagan iked To Reorganize S. Iiitelligence By MILLER ..,? . Special to The Nev. York Times WASHINGTON; Dec': :7' ? President-- _ elect Ronald Reagan's transition team , for the_ Cen tral , Intelligence Agency has proposed several sweepingchanges in the ' organization and operations of the ,na- tion's_intelligencel.programs, including increased emphasis-eon covert,,action abroad, according to Mr. Reagan's advis- ers, et, ,;.4"tt'e The aides said that a prelitnina&re-: port on the C.I.A. was completed iate last; week and is to be submitted to Mr. -Reag Fan's, transition,headigiarters tomorrow.' The...panel is headed by J., William Mid-, . . dendorf, 2d, former eSecretary of .the ...NAVY, who is president cif_Financtat era! Bankshares; a Washington-baSed " , . . . bank holding comPany- ? In acIdition.to calling far art enhanced rOle and increased" financing or covert activities, thee' report , recommends g:rater attention to counterintelligence to3cornbat what is viewed as a growing threat of Soviet espionage and internee. ? ? tional terrorism.-- 4 Central Records System ? This could be accOmplished, the report is said to suggest, thrtnigh the creation of a central records system that would be used by both the C.I.A. and domestic law-, . enforcement agencies, including the Fed- eral Bdreau of investigarion. Such a:- move has been resisted by Government: officials in the past, on tbee-ound that it could pose a threarto the civil liberties ot American citizens. , Reagan's aides added, NEW YORK TIMES 8 DECEMBER 1980 also recommends the establishment of a competitive systein of intelligence analy- sie; iiitended to provoke wider debate on sensitive international issues. Under the proposal, the Central Intelligence Agency welfla be forced to defend its conclusions against those of other intelligence agen- cies, such as the Pentagon's Defense In- tellfgence Agency. -A-gc-orcling to several aides, these steps could be taken without legislation. But they added that the proposals, and the transition effort itself, had? already proMpted deep anxiety and debate within the agencies. Moreover, the wide-ranging debate over the structure of the intelli- gence .bureaus and the quality of intelli- genCe,they produce have recently exacer- bated long-standing tensions on the Sen- ateIntelligence Committee. - - Though Mr: Mittendorf declined to dis'- cussed:A report, he said in an interview yeetrday that he favored a more "ag- gressive" approach to intelligence and that:the report's recommendations were ainied at "increasing the productivity" of the intelligence agencies. William H. Casey, Mr. Reagan's cam- paign director, who is a strong prospect for the post of Director of Central Intelli- gence, is known to hold similar views. However, it is not known whether either Mr'.-Casey or Mr. Reagan will approve the transition team's recommendations. The proposals are similar to several contained in a recent report prepared for senior Reagan advisers by the Heritage Foundation, a conservative Washington- based.: research group. However, the ? propOsals touch on a number of complex issues that have been debated for years by intelligence officials. - Among the Most sensitive of the proposals is the call fcir the competing centers of analysis. Many intelligence ex- perts believe that the idea is good in prin- ciple but difficult in practice, as a previ- ? .,,, STATINTL ous attempt reflects. Four years ago, a I group of outside specialists was asked by George I3ush, then Director of Central In- telliger.ce and now Vice President-elect, , to appraise Soviet military potential and intentions. . Trouble in the Agencies The group, known as Team B, con- cluded that the C.I.A. and other agencies had underestimated the Soviet buildup and that- Moscow was bent an achieving strategic superiority. The effort sparked an acrimonious debate in intelligence cir- cles and upset C.I.A. analysts when re- ports of Team B's conclusions appeared in the press. ? Reagan aides contend that under its plan, the competing analyses would be provided not by outsiders but by such other intelligence bureaus as the Defense - : Intelligence Agency. While the Reagan aides believe that this approach would improve the overall quality of American intelligence, C.I.A. officials maintain that the Pentagon intelligence apparatus is not capable of functioning as an effec- tive counterweight. - Moreover; some intelligence experts contend that competing centers of analy- sis, as once existed, would overempha- size disagreements among intelligence agencies. The President now receives a consensus view from the Director of Can- tral Intelligence in so-called National In- .teligence Estimates, in which disagree- ments among intelligence bureaus are tisuallynoteeonly in footnotes. ? A Longstanding Debate - The report's recommendation that a' "central file" be established ta enhance. coordination of counter-intelligence ac- tivities is likely to be opposed by civil liberties groups. The file would contain data collected on the activities of sus- pected foreign agents, including their dealings with Americans. Such groups as - the American Civil Liberties Union have maintained that this information could. violate citizens' privacy rights. ? Finally, there has for years been a ? growing debate over the push for a larger -Cbliti117/1 Approved For Release 2001/03/06 : CIA-RDP91-00901R000500010002-3 Approved For Release 2001/03/06: CIA-RDP91-00901R00050 ARTICLE AFI'LARED THE WASHINGTON POST O PAGE_W-- 6 December 1980 STATI NTL HaigCha.hee I For Cabinet ? eo ar ,.....,...??m eacran Told COnceffit:,.. out \Vatergate Ro16: ,i..I.Nt, atlas Appointment -- By Robert _61 Helier ' -. ? ~,-,-.!?! Wastlington ?tit:: Writer ", f.k..1 - . : - , % L ;..:: ? 7."..i..-5 "', r -'-' ' ' ' ,,Que*aons about ? former general Al-. eioirider M. . Haig ,Jr.,'S:'- assistance to ":-Ricliard iNL Nixon, in :thefinal stages ' 'dig-Watergate affairhave Put his ap- -? - poilatment as secretary of state in jeop-, ,".a.k. fy; authoritative sources Said yester-: ifily . ieM4.,..'"'" ''''''._..-7-t Sources clOse tO'liresident-elect Ron-, ald Reagan said that the president-elect mid his associates were , concerned by the warnings they _had received from- , Sen. Howard IL Baker Jr. (R-Tenn.), _ .the future Senate majority leader, that ,. Haig could run into trouble in the Sen- ate. ,This = has, put, Haig's- nominatior-. in jeopardy, these sources said, though many 'around Reagan,. still. :,want him for the job. :----,-,..,-:itt'1.44:,.*:ii,Mk,-; --e ?.--' ..-? ;Haig 's cause - is also being hurt by the fact that -Nixonvhimself is. earn- ? paig- fling avidly for ifaig's,nomination to be secretary ..,of statlarowledgable- .-sol'irces , lf,Reagaddetidee4re.cannot seleCY, ? ,-.7 sources said, 'Ire will turn to :Gorge P-Shult;,-caspar W. Weinber-,-., lierror William J. Casey fill the,Stati:!- ] Department':', in:b;;;;:;Shultz.7 has ' :told: LITIOgali? 6.3 490.. pix*--At,41*?40Poi.iit?' .,-ment, but sour_cmc.I.ose to Reagan hope :he. /night r*.06104.-44;;;;4:,..;;,i,:,,,ii.li' Weinlwrier bin:line to .teCorae sec:-4 ryi....,Of defere 'iiiicf CasXdireCt-1 the ?Cen;Og "Iiiiellikeiic'e'Agerky 41 Ftlie Reagan administration,. These p -josti"-: Pfnight.be rejuggled jE,Hal,g is dropped.. iis.,. secretary of ,state.f1:-`:afg,:-::, , EXCERPTED Approved For Release 2001/03/06 : CIA-RDP91-00901R000500010002-3 Approved For Release 2001/03/06 : CIA-RDP91-00901R00050 AIITICLE 0 3 PAGTI NEW YORK TIME'S 5 DECEMBER 1980 STAT I NIL Problems Arise With 2 Reagan Choices - by HEDRICK SMITH special to The New York Times WASHINGTON, Dec. 4 ? Edwin R. Meese 3d, director of President-elect Ronald Reagan's transition team, said today that Mr. Reagan would be ready to announce some of his Cabinet selections late this week or, next week, but well- placed Republican sources said that com- plications had arisen with two major potential appointments: , ? At a morning news conference, Mr. Meese warned that the Soviet Union would be-making "a grave miscalcula- tion" by thinking that the Presidential transition would place the United States in a weakened military position. He also denied that the Reagan transition team had problems with conflict of interest be- cause some of its members worked for private companies. Mr. Meese said that the Cabinet selec- tion process was "on schedule" and that Mr. Reagan would announce some of his choices "either at the end of this week or, it looks now, more probably next week.'.' Other transition sources said that roughly a half dozen Cabinet selections were nearing completion of the normal clearance and legal procedures. Problems With Wriston But these sources said that some prob- lems had developed in a discussion with Walter B. Wriston, chairman of Citicorp, whom Mr. Reagan had wanted as Secre- tary of the Treasury. Mr. Wriston had served on Mr. Reagan's economic advi- sory panel during the campaign but had privately told some associates that he was hesitant about entering the Govern- ment. Well-placed Republican sources said that the complications apparently cen- tered on financial disclosure require- ments and arrangements for avoiding conflicts of interest. Citibank, a subsidi- ary of the holding company that Mr. Wriston heads and holds stock in, has di- rect interests in New York City loan guar- antees and claims against Iranian assets as well as loans to the Chrysler Corpora-. tion. The Treasury Department deals with all those issues. As of last January Mr. Wriston owned 104,499 shares of Citicorp stock now worth $2.25 million. With uncertainty now about Mr. Wrise ton, well-placed Republican sources said that the President-elect and his top advis- ers were reconsidering the Treasury ap- pointment. Among the new names being mentioned, they said, are Charls E. Walker, formery Deputy Treasury Secre- tary, and Donald T. Regan, chairman of the board of Merrill Lynch Inc. Problems With Haig . Republican sources also reported prob- lems in the selection of Gen. Alexander M. Haig Jr., the former NATO com- mander who is now president of United Technologies Corporation.- Two days ago, well-placed Republican sources reported that Mr. Haig was Mr. Reagan's choice for Secretary of State, after George P. Shultz, vice chairman of the Bechtel Cor- poration and a leading prospect for the post, told Mr. Reagan he did not wish to be considered. John McCarroll, Mr. Haig's executive assistant, said that as of late this after? noon, Mr. Haig "has had no approaches on a Cabinet position from Reagan or his people." In the past several days, several news- paper columns have appeared criticizing Mr. Haig's role in the Vietnam War, the Nixon White House and in the wiretap- ping cases against former Nixon Adrnin- istration officials and reporters. Well- placed Republican sources reported that some influential Republicans had pri- vately urged Mr. Reagan through inter- mediaries to reconsider approaching Mr. Shultz once again. Other Selections Late today, however, Pendleton James, who heads the Cabinet selection process for Mr. Reagan, said that there had been no change in Mr. Shultz's deci- sion. Sources said that six other too-level ap- pointments remained on track as previ- ously reported: Caspar W. Weinberger, vice president of Bechtel Corporation, foe* Secretary of Defense; William French- e Smith, Mr. Reagan's personal lawyer, foio '1 Attorney General; Drew Lewis, a Penn-1 sylvania businessman and vice chairmart"l of the Republican national committee, t for Secretary of Transportation i Senator I Richard S. Schweiker of Pennsylvania I for Secretary of Health and Human Serv- ices; William J. Casey, a former intelli- gence orricer and a New York taxIawyer, ,! 1 11-dr three- tor OrrefiTriteLligence, and it i epresen atwe Dave Srdeffman of Slichif=r1 gan, for Director of the Office of Manage? ' ?,--1^. ment and Budget. - - - They also reported that Elizabeth Dole,': former member of the Federal Trade': Commission, was under consideration for ', t Secretary of Education, but that Clifford' '1 Hansen, former governor and senator ! from Wyoming, who had been the odds-ont , ! favorite to become Secretary of the IiO. tenor, may have had to withdraw for con?TV Pict of interest reasons. Mr. Hanson, who . has a ranch in Wyoming, has a Goverfs,-7, ' ment permit for grazing cattle on public - land that he might have to give up to take , . t ? the Cabinet post ? Mr. Meese and other top Reagan ota:e': cials were at pains today to check spread- ? ing reports about Cabinet appointment; contending that the Reagan team was- moving as rapidly as possible given theto'i cumbersome checks needed for financial . disclosure and legal arrangements tce_`,e prevent conflicts of interests. Mr. Meese said the Reagan transition effort wanted,: the checks completed before Cabinet. announcements were made. - A ? --Afthaugh he mentioned poesible aike. ' nouncements late this week, other tran.si,tt tion sources said the middle of next week., is more likely. ? Mr. Meese also went out of his way, today to emphasize close cooperation, with the Carter Administration on cur- rent foreign policy issues, particularily the crisis in Poland. . , ,i . Approved For Release 2001/03/06 : CIA-RDP91-00901R000500010002-3 STATI NTL Approved For Release 2001/03/06 : CIA-RDP91-00901R000 f.,E. I? bi,usLA.0 THE NEW YORK TIMES 4 December 1980 Ki:AGAN IS PRODDED TO CHOOSE CABINET Aides Say He Is Forming Plans to Announce Key Selections in the Next Two Weeks By STEVEN R. WEISMAN . .s pedal to The New York Times LOS ANGELES, Dec. 3.? President- elect Ronald Reagan worked today on plans to make public the major choices for his Cabinet 'in a series of announce- ments to be spaced over the next week or 10 days, officials close to the transition said today. ? By all accounts, Mr. Reagan was feel- ing heavy pressure to end the speculation and unofficial rereerts of chniees, particularly those coming from Republi- cans on Capitol Hill. But officials said that delays were being incurred because of the need for security clearances and ' the need by the prospective nominees to consult with their families, businesses and lawyers. A top aide close to Mr. Reagan said today that although the President-elect had decided most of his Cabinet members as long ago as Nov. 24 at a meeting with his aides in Los Angeles, he had only begun to call his choices in the lad few days. The aide said that some key Cabi- net positions are still unfilled and that the inability of the President-elect and his aides to reach a decision also accounted for some of the delays. . 'Not Completely Happy' "We're not completely happy with what we've got so far," said one aide close to the decision-making process. Nevertheless, knowledgeable officials said again today that the Mr. Reagan had settled on his top cabinet members. Gen. Alexander M. Haig Jr., former Corn- .mander of NAT() forces, is said to be Mr. ? Reagan's choice for Secretary of State; Caspar W. Weinberger, a long-time aide and now vice president of the Bechtel Corporation, for Secretary of Defense; Walter B. Wriston, chairman of Citicorp, for Secretary of the. Treasury, and Wil- . liam French Smith, Mr. Reagan's per- sonal attorney, for Attorney General. It was disclosed today that the leading candidate for Secretary ,of the Interior was Clifford P. Hansen, former Governor and r..,?nator from Wyoming. . e .e. geagan aides cautioned that these and ether names, although considered the choices of the President-elect, could be thrown into question if problems arose as a result of security clearances and reser- vations by the nominees themselves over conflict of interest and other legal prob- lems. It was reported further today that one possible choice for Secretary of Labor was Ray Donovan, a businessman and construction firm executive who headed Mr. Reagan's campaign in New Jersey. Mr. Donovan was praised by Republicans for helping to get the support of construc- tion workers and other blue-collar groups. Aides continued to say today that Mr. Reagan had decided to pick Senator Rich- ard S. Schweiker of Pennsylvania to be Secretary of Health and Human Services. Knowledgeable officials also said that -Drew Lewis, a Pennsylvania business- man who is now acting as liaisonbetween the transition team and local govern- ments, the business community and the Republican National Committe-e, would be Secretary of Transportation. It was also reported that Mr. Reagan had decided to ick William j. Casey, Ci airman or is e ection campai cnairman o t e ecunties an Exchange Cornruission, as Director of .Central Intelligence, and Representative ' David Stockman, a Michigan Republi- can, as Director of the Office of Manage- ment and Budget. Reagan in Seclusion Mr. Reagan has been spending the last few days in seclusion at his home in the Pacific Palisades area on the coastal sec- tion of this city, except for visits from a few of his aides. The President-elect has no scheduled plans to make any Cabinet announce- ments before he leaves for New York City on Monday, but aides said today it was possible that he could make some before then. One aide said Mr. Reagan could make some of the announcements in New York City itself. The time-consuming process of estah; I lishing security clearances and Making other checks by both the President-elect' and the prospective cabinet nominees was expected to take most of this week. Meanwhile, it was announced today, that Mn Reagan plans to use next week's I trip to the East Coastfor the same blend I of official business and courtesy calls to both Democrats and Republicans that he adopted two weeks_ ago. Approved For Release 2001/03/06 : CIA-RDP91-00901R000500010002-3 STATI NTL 111111 Approved For Release 2001/03/06 : CIA-RDP91-00901R00051 CHaISTIAN NONITOA 4 December 1980 Reagan cabinet: tough, pragmatic learn shaping up - By Godfrey Sperling Jr. Staff correspondent of " The Christian Science Monitor ? ? Washington Ronald Reagan is not reaching out for ideologues as. he sifts candidates for his top appointments. - ? Instead, the common element apparent in likely selections such as Gen. Alexander M. Haig Jr. (USA, ret.) for secretary of state, Caspar W. Weinberger for secretary of de- fense, William French Smith as attorney gen- eral, and William J. Casey as CIA director -. is a hard-nosed ability to operate well in situa- tions where practical, tough judgments must A source close to the President-elect says of the Reagan selections: "Reagan is not go- ing to have one extreme or the other in his cabinet, those whose passions might cause conflict and make it difficult to get the job done." ? There are, in fact, some ideological lines. General Haig is a moderate on domestic mat- ters, a hard-liner on defense. Mr. Weinberger is somewhere near the middle of the GOP spectrum on domestic is- sues. But bets a dedicated budget-cutter who wields a sharp knife when it comes to waste. . Mr. Casey's early political ties were with Dwight D. Eisenhower. Also, Case is a New epu ican, w ch means be is a little more moderate than-Republicans elsewhere. 1 a er ris on airman o itCia-r-p, is ; being mentioned for Treasury. He too is much more a pragmatist than a political ideologue. i But, says one Reagan associate, "I don't think he'll get It." " - "He [Wristonj is very used to dealing with a lot of Democrats,." one observer here says.. "He, like Casey, is a New York Republican, 1 certainly somewhere in the Republican mid- I dle in his philosophy."I ' ' Mr. Smith, Reagan's longtime attorney, is i known to be a consistent conservative who has been influential in shaping the President- 4 elect's outlook on politics and issues. But Smith also is not considered tO be on ; the far right. Other names of possible Reagan appoin- tees also surfacing include: o Former US Sen. Clifford P. Hansen of Wyoming for interior secretary. o Drew Lewis, deputy chairman of the Re- publican National Committee, for secretary of transportation. * Thomas Sowell, a University of Califor- nia economist and a black, for secretary of housing and urban development. o Ray Donovan, a construction company executive who was in charge of the Reagan campaign in New Jersey, for labor secretary. do Bill Brock, chairman of the Republican National- Committee, for secretary of commerce. Another being mentioned for labor secre- tary is Betty Murphy, former chairwoman of the National Labor Relations Board. No definite ideological thread is apparent in this list of names either, although Mr. Han- sen is known to be on the conservative side and the others perhaps more moderate. But this same source close to Reagan in=1 sists that "loyalty, of course, is a test. But.i competence is of prime importance. And ide-1 ology is secondary." - . The cabinet selections are being watched closely for what they may disclose about the President-elect's intentions and about his own political philosophy. Says one Reagan source: "Wei is setting up this cabinet government, where he will be-- meeting with some four to seven of his cabinet secretaries every day. He wants people he feels comfortable with - people who get along with each other. That's a basic consid- eration in these appointments." In this vein, it is understood that-William. Simon, a favorite candidate of conservatives for secretary of the Treasury, was eliminated i from consideration. Some advisers told the President-elect that, while highly competent, Mr. Simorris not a "team player" and that his abrasiveness would be detrimental to the I smooth running of the administration. . 1 Approved For Release 2001/03/06 : CIA-RDP91-00901R000500010002-3 Approved For Release 2001/0 Ragan I ii - ame. Aids n Batches ? - Names_May. Start Coming Next VVeek Jeremiah, O'Leary, ,A.Washington Star Staff Writer - - LOS-ANGELES=Ronald Reagan , has virtually completed selecting the 13 persons hd wants in his Cabi- net, and-transition officials said yes- terday that the president-elect is likely--to- begin announcing -their names early next --Transition officials-said-Reagan is not planning to divulge his Cabi- net choices all at once.The officials ? said Reagan may makethe first dis- closures after he goes to.,New York Monday. - - ----- -- There was speculation that if any announcements are made here be- fore-the Reagens head east-on Mon- ? day-, the most likely to be presented will be the two Californians who are-considered shoo-ins for Cabinet positions. They are Caspar W. Wein- berger of San Francisco, reportedly Reaga.n's_choice to be-?secretary .of defense; and Withal French Smith of San Marino; a fronttrtinner to be- ? come attorney general.-- : Reagan- may use. the New York -- forum.foru?veill?gfixiancier.Wal- ter Wriston, a-New Yorker, who has been-most prominently 'mentioned a-the?ext secretary-. of -the Trea- sury..William 1.-Casey,?the -odds-on favorite tor the directorsbap ot the tlek, is a New York tax lawyer and ,former chairman of the Secialtris- and ExcKange Commission frIniff 'be named to tne post in New York where he nas many i lends. among, the New York financial leaden-1M: gan wi there. e seem ' ? VPt$ ce'rfi :40401T-tib901R00050001 --A West Coast-press spokesman tor the Reagan transition said the an-_ , nouncements will be made in press. conference-format- with the president-elect-introducing his Cabi- net choices in person. -The Reagens. leave Los Angeles Monday morning-and will remain in New York until Wednesday morn- ing when they will fly to Washing- ton. A Reagan spokesman said one reason for the New York visit was for the Reagens to see their son, Ronald, and his bride, Doria. The Reagans also are scheduled to attend a dinner Tuesday. at the home of socialite Brooke Astor. While in New York, Reagan will meet Tuesday with Ralph P. David- son, chairman of the board of Time inc. He also is expected to see Mayor- Edward Koch. The Reagans will arrive at An-- drews Air Force Base at 10:25 a.m. Wednesday. STATI NTL Approved For Release 2001/03/06 : CIA-RDP91-00901R000500010002-3 Approved For Release 2001/03/06 : CIA-RDP91-00901R000 THE WASHINGTON POST 4 December 1980 61(ey?Noininationsl By Pie'sideiit-Elect:: Are Certain' By Rolti4it: G. Icalses'Is and David S. Broder- .. wastu,gumpoltat!awriW5' PresidentAeit'fRiinalds:Realin has selected she" rain,forf:_1(ejsjOhi;in-hia-ad,; ministrations informed sources kii'd'yei- terclay, but heshis..92.totilyet_maclescfis. nal choicelfoirthe;:poit:s.:of-secretary of state and ?ary.dfthreUry:- The six nonsination4,that*Viappt* "quite certair4thstse4p95,-*:,*., Weberto of :defeni4WrhitrissReine:h.,rgiallan attoniaYsgeileisal Schweike'r (R:ga_.).:::*bes sec' re: -- health antihuman services, Pre*JA to Be secretarssrof tririsportationi:-Wil. liana J. Casey t'Orbe director Of thecen ,tral intelligence -Agency; . and Repy.4)4$ vid Stocianana(4-iylicts). as-director ,of - the Office of-Management and Iludgets Retired iriiLAlexander? contiriuesS.Wligithe leading c?ntendt for seoretarY'OrsOWsOurtqcsaid jut the selection 'id, hot :final. PresSwearti that Walter &Wriston, chairinaiiola;3 .ticorp, vvilt:-.11e.Reagan's.'=4'cre-t"E" the treasurY5t prernatureg-idthese sources said: Both Reagan and Wriiton are still "hesitinabout his selection,4 according :teo;f one source '&0'. to :the4 president-plectP _ Alan Greet/spin; chief of the Coiiiic of Economie, Advisess. in the Fortfack:: STATINTL ministration, is still a posSibility for the treasury, 1 some sources said, and there may also be others. -- Yesterday's round of name-playing brought no big surprises, nor any, certain information about when the president-elect would reveal his final selections. According to sources in California, Reagan hopes to introduce his Cabinet choices personally, probably in small groups, but it is not known when this-might happen. Next week in Washington seemed possible:. The president-elect has managed to maintain a sub- stantial degree of secrecy about the way he is going about the selection of Cabinet members, even if he has mot been able to keep all the names of the can- didates confidentiaL Sources close to Reagan have said the president-elect will talk personally to his se-- lections, but none of the candidates for Cabinet jobs has admitted publicly to a direct contact with Reagan, by:phone or otherwise. - Haig said in-Hartford; Conn.; -yesterday- that-he hadF.not had any word. from Reagan. Haig said be hada "no idea when or whether" Reagan will offer hirrs:a job. He called the State Department job at- tractiye, but declined to say that he would accept Thesemerging Reagan Cabinet includes a heavy close-of political rewardS.-Drew-Lewis, the apparent choice for secretary of transportation, is a Pennsyl- vania businessman whom Reagan installed as his rep- resentative this fall at the Republican National Com- mittee. The chairman of that committee, Bill Brock, reportedly is under consideration for secretary of com- merce, deputy secretary of state or ambassador to the ,Upited,Nations. - ? ? Sehweiker; Reagan's repOrQ choice for health and human services, was. Reagan's- designated running mate in his unsuccessful 1976 bid for the Republican nomination for president Schweiker voluntarily gave- up his Senate seat this year to work for Reagan's elec- tion. " ? - ? . ; - - ? Casey, the likely new director of CIA, was Reagan's _campaign manager. ss - - sbsgessess. Well-informed sources said yesterday thatdespite the heavy. specUlation in the news media, the secre- _ t-aryships of commerce, energy, housing and urbancle-- ? velopmenta interior and labor are Still "really opens": Agriculture, while- still -undecided, is- likely:to'. go to John R.:131odeof Illinois a Successful farmer and -that, state's- top- agricultural- official,s,thesel'Sources saicIJ The job his becoine, a hotly contested one-Clay- ton-Yeutter, president of the Chicago Mercantile Ex: change, is still a possibility for agriculture, the sources said: ,'.'',4-4i.A.rtizsii:s-;,es=41-i244,..sle4W''''' -Reagan apparently is interested in finding a woman, a black and perhaps a Derancrat to serve in his Cab- inet,: but if that* the cases:these members remain to. lel -Aecording t&inforined sources, Reagan is continn-? ing_to.diScusS7Tpossible 'appointeca withicey?ad ? byhtelephonee Most-, 9E. his; principals associates! are nown.in, Washington i where-the ?president-elect will be nextweelc.2.5 Approved For Release 2001/03/06 ? pc . Pe erson.c 4 4 I f 'II ' -04,V lye ;IT Wt. -- -11 Approved For ReleasFlp911919,61:;,:_C;IsA7lpfFil-00901R00050001 4 December 1980 STATI NTL 'Twas the night before Reagan ? 'Twas the night before Reagan, when all through the House ? And specially in the Senate not even a mouse Could list the big cheeses in the whole new batch, Such as Labor Committee chairman Orrin Hatch - Or the next 'voice you hear when you ring your Don Ameche * ? For the Budget Committee head, Pete V. Domenic _ . So our stockings are hung in hopes they --will fill, Not only with names from Capitol Hill, But: with all who may ? get a Washington Under presidential counsel Edwin Meese. And don't forget that transition team all snug in their beds, ' -r? - - ??? While ? visions of cabinet plums dance in their heads. It's true that the forecasts remain a little vague But "sources" keep bringing up Alexander Haig ? And other alumni from administrations past Instead of the expected brand new cast. ?But there are some other names the gov- ernment phone book may be listin' Such as possible secretary of the treasury Walter B. Wriston And William French Smith, Mr. Reagan's - personal lawyer, , An attorney general who wouldn't be kept waiting in the foyer. _ .? - Or therecould be a change at the CIA, see? Maybe - campaign chieftain William .J. CaseY-? ? , - ? ????- ? And some say the secretary of transporta- tion's shoe is On the footof a Permsylvariari named ?Drew Lewis.' With Richard SchWeiker, who Ls also from Pel3n, Meaitioned for a post, we wonder what then For - William Scranton, a -third from. ? His absence from the press's speculation- Is like that of EWot Richardson and some , As for those who are already home free, Here are some names we find under the tree. If not a baker's dozen there's a Baker times two, Majority leader Howard and James, chief of the White House crew. 1 And note the Senate committee- chairmen. to put on the roll, Such as - Environment's Robert Stafford and Finance's Robert Dole. _ _ Just to add to the bubbling Republican broth Governmental Affairs will have William V. Roth_ - - , Tilling Agriculture's far-flung realms Will be the man at the tiller, Jesse Helms, . While Energy's Idaho dynamo, as it were, -- Comes under the name of James A. McClure, _ And Foreign Relations will be at the tender mercy Of Illinois internationalist Charles Percy. Closing the door of Banking's barn Before the horses are stolen will be the job of Jake Garn, And to make Armed Services flourish an flower Hopes will ride high on John G. Tower. On Appropriations Mr. Hatfield wilt sign his Mark, _ While Mr. Thurmond will Strom the Judi- ciary strings from dawn to dark. In the Commerce Committee any Demo- cratic attack would Be repelled by Oregon's not Robert but plain Bob Packwood, . And at Veterans Affairs, an ex-GI looking for a pal . , ? Will find Alan K. Simpson ? "You know me, Al." . ? The long line of names -Spirals out of our ? . A sight, ? ? So for now, Happy Reagan, and to all . goodnight! ?- - Who' could hardly.,,pe, Overlooked before the falai choices, But vie digress in the age of till troCk;. , Who may go to Commerce. while Agricul- tare goes to John Block. ? ? Approved For Release 2001/03/06 : CIA-RDP91-00901R000500010002-3 Approyed For Release 2001/03/06 : CIA-RDP91-00901-R00050 .NEVI YORIC DAILY NE"AS 3 December 1980 STATI NTL By JAMES WIEGUART and BRUCE DRAKE Washington (News Bureau)?President-elect Reagan: has decided on his administration's top cabinet-po-sts, settling on Alexander Haig as secret- ary a state, Caspar-Weinberger as defense secretary and Citicorp chairman Walter Wriston as treasury secretary, Republican sources said today. William French Smith, Reagan's longtime person- al lawyer, will reportedly become attorney general. Sources said thatReagan has decided to appoint campaign director. William Casey, a prominent New York lawyer and onetime head of the Securities and Exchange Commission, to the top job at the_Cptio inteuiftriovitgleFeppliftkonAWMPlif)? tira480 1-00901R000500010002-3 .I ecimomist Thomas Sowell, a black, to the post of secretary of housing and urban development. , -; Casey, 67, the 'choice to head- the; CIA, went to night law school at St. John's in New York and during World War II entered the Office of Strategic Services, the forerunner of the CIA, where he became chief of secret intelli- gence for the European war theater. Casey had also been mentioned as a candidate for secretary of state , 1 STATINTL .0710,pLoxed&or Release 2001/03/06 : CIA-RDP91-00901R00050 WASHINGTON STAR (GREEN LINE) r.-AGE 3 DECEMBYR 1 980 Weinberger Likely to Gel Key POSitiOn But Aides to Reagan' SarChoices Remain By Jeremiah O'Leary Washington Star:Staff .Writer ? ',QS ANGELES 'Caspar Weinber-: ger will be named to one of the big three positions ?.state, defense or Treasury ? in theReagan Cabinet, - according to Reagan- sources here. "Once Weinberger's slot is known, the-rest- of the nominations .will be easier to figure out," said a source close tp. President-elect Ronald Rea- gan. . ? - Weinberger, who got the nick- name "Cap the Knife" while working on the budget for the Nixon admin- istration, is serving as Reagan's chief budget-cutter with responsibil- ity for recommending cuts that would hold the fiscal 1981 budget to no more than $620 billion. - - Treasury secretary. would be the logical position for that work; but ? there are persistent reports that he . will go tcrstate or the Pentagon. . . If Weinberger were to become Treasury secretary, the way would be clear for retired Gen. Alexander Haig or Reagan campaign chief WU... liam...1-? Casey .to become secretary . of state and foneitherformer Texas. .Gov.- John B. Connally or former:, Defense Secretary Donald .Rurasfeld' to take over at the Pentagon. Casey also is- seen as ? a font-runner by CD. director. . 4' ? There also is speculation here that economist Alan Greenspan no tong- ens in contention for a Cabinet Post Reagansources-report that a name has has been added to the list of leading Contenders for Cabinet1 nomination: W. Malcolm Baldridge,.. chairman of. Scoville Industries of Waterbury, Conn. He is said to be in good positien for ,a Cabinet post, ,perhaps secretary of 'commerce. Bal-. :dridge,-,.was?.chairman, of. the Cone necticut -Reagan-Bush,;comiaittee- andco-ehairman of Connecticut Citi- zens for Nixon and Agnew. He also is a?member of the National Repub- lican.Finance Committee. Reagan sources also say that Rep. David Stoc- kman, R-Mich., is likely to be named either sec- retary of energy or director of the Office of Management and Budget. . California attorney William French Smith, who headed Reagan's committee to seek talent for the top government posts, probably could be attorney general if he wants the job, Reagan aides say,? but some believe the nomination may go to Califor- nia Superior Court Judge William Clark. These sources believe Smith, who is Reagans attorney, may wish to stay in California. ? Reagan has decided on more than half the Cabinet nominees, but the names are not being made public until after Reagan and his closest aides have conferred with the president-elect's first choices. . ,It appears that Reagan is not likely to make public any of his Cabinet selections at least until Friday, when transition director Edwin Meese is i scheduled to arrive here for discussions on per- . sonnel and policy matters. -- Three potential Cabinet choices have asked that their names be removed from consideration. They are William E Simon, George.Shultz' and Anne Armstrong. Until the Cabiaet offices are chosen, there are not likely to be any final decisions on the sub- cabinet.positions because Reagan wants the new cabinet members to have a voice in choosing the assistants and deputies with whom they will be working. Reagan is to fly east Monday for several days, first to New York and then to Washington. Reagan advisers believe most of the Cabinet will have been made public by the time Reagan completes his second post-election Washington visit Dec.13. Approved For Release 2001/03/06 : CIA-RDP91-00901R000500010002-3 STATINTL Approved For Release 2001/03/06 : CIA-RDP91-00901R0005 10 T. I CZ:: .n.??..1 NEW YORK TIMES a-L1 PAGE (4-7?1 3 DECEMBER 1980 REPORTED CllUSE -AS-.TR-INITi. CIRCLE-, -oF.Jigiyo_OBINEf Haig at State Dept.; Weinberger at Defense; Wriston at Treasury; Smith, Attorney General ,ByHEDRICKSMITU Special WM* New York Times ? WASHINGTON; -Dee.' 2 Prisident. elect ROnald Reagan, ,drawing on both the Eastern establishment and Ms West Coast political aSsociates, has decided On the four men he wants to form the inner ring of his Cabinet, well-placed Republi- can sources said today. e These sources said that Mr. Reagan's choices were Gen. Alexander M. Haig Jr., retired, former Supreme Allied Com- mander (Europe) of the North Atlantic Treaty Organization, for Secretary of State; Caspar W. Weinberger, Mr. Rea- gan's long-time adviser and now vice president of the Bechtel Corporation,. for Secretary of Defense; Walter B. Wriston, chairman of Citicorp, for Secretary of the Treasury; and, William French Smith,. the President-elects personal attorney and friend, for Attorney General.. e Although all iour men are known as conservatives Republicans, they are re- garded as moderates and their selection seems to point toward a trend in Mr. Rea- gan's policy-making, following his pat-: tern as Governor of California. = - Caution on Clearances ., ? The Republican sources cautioned that not all the necessary clearances had been completed and that Mr. Reagan had not formally offered the top Cabinet posts to these men or received their final accept- ances . , : eeaeana'aa,...e'4" erlinintk4teeen.;. These sources said that both Mr: Wris- ton and Mr. Smith had expressed some hesitancy about' entering the Federal Government and that if they were to de- cline to serve it could lead to reshuffling among the top postsee'Y'',717ene .Associates_ot Mr,elteagan7Pciinted. out 'that although liity/einberger very much -wanted a foreigi policy post, he was suffia cientlehversatileand experienced to shift, . , . 'Casey and Stockman Listed . Two other key Cabinet-level positions were also reported decided. Republlean sources said. that Mr. Reagan had ee- eided to put his caripaign director, Wil- liam J. CaSey, a New York tax lawyer, as 13tredfor oftenfrarinteiagence, and had signaled his prefarence for Dave Stock- man, a two-term Congressman from Michigan, as director. of the. Office of Management and Budget...._ Although Reagan transition aides said that the President-elect was still working on some of his Cabinet choices,- they re- ported that he had essentially settled on Senator Richard S. Schweiker of Pennsyl- vania etoe be. Secretary Secretary of Health and Human Services and not Secretary of Labor, as previously reported: . ..They also said he was inclined to choose Drew Lewis, a Pennsylvania busi- nessmarewho became one of his deputy campaign managers and deputy .chair- man of the Republican National Commit- tee, as Secretary of Transportation. In an apparently typical pattern,' high- level Reagan aides reported that security , clearance procedures had been initiated today on Mr. Stockman, but by late after- noon his friends said that he had not re- ceived any call from the President-elect asking him to take the job. There were indications that the Reagan personnel operation was undertaking preliminary security checks and inquir- ies about potential conflicts of interests before any formal job offers or announce- ments were made to spare both Mr. Rea- gan and potential Cabinet appointees the embarrassment of later disclosures that would force a change in Mr. Reagan's choices. According to some associates of Mr. Reagan, at least two prominent Republie can political figures have been sounded out about Cabinet positions and turned them down. These sources said that John B. Connally, the former Governor of Texas, had rejected a chance to serve as Secretary of Energy and that Pete Wil- son, Mayor of San Diego, had declined to be considered as Secretary of Housing and Urban Development. - Bill Brock, the Republican National chairman, has been mentioned as a possi- ble Secretary of Commerce, but Reagan transition sources said that he was also under active consideration for Under Sec- retary of State. He has expressed an in- terest in both commerce and foreign af- fairs. Possible Agriculture Choice Although no decision is reported to: have been made on the new Secretary of Agriculture, senior Reagan advisers here- met today with John R. Block, former Di-- rector of Agriculture for Illinois. who is' being pushed for the job by farm-state Senators like Bob Dole of Kansas. The agriculture post could take on more than normal importance because in some preliminary plans prepared by top Reagan advisers; the-Agriculture Secre- tary would sit in as a member of the inner Cabinet that Mr. Reagan intends to make his chief policy-rnaking advisory group. ? Because of its importance, the Presi- dent-elect was reported to have: concen- trated initially on picking the key mem- bers of his Cabinet who would serve in that inner group, mainly the Secretaries of State, Defense and Treasury and the Attorney General. The choices reported today reflected an evident effort/by Mr. Reagan to achieve a balance in that group of Eastern estab- lishment figures like Mr_ Wriston and .West Coast associates with whom he has long been comfortable, like Mr. \Weinber- ger and Mr. Smith. . Blend of Old a.ncl New The first four choices also reflect a bal- ance of experienced Washinzton hands and newcomers to government. Mr. Haig, now 55 years old, not only served as commander of the North Atlantic Treaty Organization but also as White House' chief of staff to President Nixon and as a deputy to Henry A. Kissinger when he was Mr. Nixon's national security advis- er. At that time, Mr. Weinberger, who is now 63 years old, was budget director and later Secretary of Health, Education and Welfare. Previously, he had served as di- rector of finance when Mr. Reagan was Governor of California. Mr. Wriston, a widely respected New York banker, and Mr. Smith, a Los An- geles lawyer with family roots in Boston, have not served previously in govern- ment. Both men are in their early sixties. Mr. Smith is a long-time friend who served with Mr. Reagan on the Univer- sity of California Board of Regents,. and Mr. Wriston. joined Mr. Reagan's eco- nomic advisory group last summer, in the midst of the Presidential campaign. Approved For Release 2001/03/06 : CIA-RDP91-00901R000500010002-3 0:: ApprovActfor Release 2001/10:3A0VRXIMORI1P41-009ATOK 3 December 1980 arrow, Weinberger Top Chokes in , List abinet ? Yesterday's list of choices for the Reagan Cabinet focused on by-now- familiar names, including Alexander Haig for secretary of state, Caspar W. Weinberger for secretary of de- fense and William French Smith for, attorney general The New York Daily News was far- thest out on the limb, saying that President-elect Ronald Reagan had selected. six persons Haig, a former supreme commander of NATO; Wein- berger,. a longtime Reagan insider; Smith, Reagan's. personal lawyer; Walter Weston, chairman of Citi- corp., as treasury secretary, William Casey, the president-electcam- paign director, as head of the Central 'Intelligence Agency, and 'Aortas Sowell, a conservative University of California economist and a black, as secretary of housing and urban de- velopment. A top Reagan aide characterized the Daily News list as "50 percent wrong," but wouldn't say which half was right. The Washington Post con- tacted several of those on the list, who said that if they had been se- lected, it was news to them. The Associated Press reported that Reagan had made offers to eight per- sons, but mentioned only four names as "likely" or "top picks"-- Haig, Weinberger, Wriston and Casey ? for the same posts the Daily News had EXCERPT Approved For Release 2001/03/06 : CIA-RDP91-00901R000500010002-3 Approved For Release 2001/03/06 : CIA-RDP91-00901R00050 ARTICLE 01.1 PACO / 0 TIME 1 December 1980 STATI NTL Reagan gives a boffo performance in his first appearance in the capital ? Wednesday morning brought one of the more solemn transition rituals: the passing on of intelligence secrets to the President-elect. CIA Director Stansfield Turner arrived at the Jackson Place town house, briefed Reagan for 90 minutes, and left stonefaced and silent; he knows that he will be replaced, probably by William J. Casey, Reagan's transition chairman, who sat in on the meeting. But the ritual had one touch of humor. Hurrying to the briefing, Bush bounded up the steps of 712 Jackson Place and began shaking hands with pii771ed secretaries from the Harry S. Truman Scholarship Foundation before he realized he was at the wrong building. Said Bush to newsmen: "You can always tell the new kid on the block." ?By George J. Church. Reported by Walter Isaacson/Washington . Approved For Release 2001/03/06 : CIA-RDP91-00901R000500010002-3 Approved For il.HTIOLYZ. ON PAGE 2 Z. Release 2001/03/06 : CIA-RDP91-009'ffNai U.S. NEWS & WORLD REPORT 1 December 1980 When Washington and the President-elect came eye to eye, each liked what was seen. The watchword, at least for now: Mutual respect. Ronald Reagan's five-day, whirlwind visit to Washington in late November served notice that he is determined to avoid the same mistakes that dogged Jimmy Carter's administration. ? Leaders of all three branches of gov- ernment were left with that impres- sion as Reagan flew back to California on November 21 to begin the next phase of preparations for his Presiden- cy: Selecting a cabinet. As the next President explored the city that will be his home for four years, sizing up its power brokers and letting them take his measure, the names of his possible cabinet choices kept leaking out. Front-runners for key jobs included Reagan's lawyer, William French Smith, for Attorney General and Wil- liam E. Simon for Secretary of the Treasury, a post the Wall Streeter held in the Nixon and Ford-administrations. In meetings with Congress, the Su- _ ._ preme Court, the executive branchi and local society leaders. Reagan also made headway toward the major ob- jectives of his Pre-dency?a balanced I budget, tax cuts and a stronger de- I fense. He let it be known that as soon as he takes the oath of of- lice on January 519 he will begin implementing the plans now being drawn up by his advisem As the President-elect put it: "We're going hz, start; grabbing right avolov...- .1 Reagan made it clear that he was not ignoring world events. He sat down with Central intent- Tr,re-nce Agency officials for biTe-fikcTS and sent word to the South Korean regime that he, like Carter, op- posed its plans to execute -opposition leader Kim The Jung. He met with Helmut Schmidt during the West German Chan- cellor's November 20 stop in Washington. On the same day, for the first time since the election, Reagan met with Carter, I spending 80 minutes with him in the Oval Office. Carter called the meeting "a :delightful experience,". during which he talked to his successor about the problems he vill inherit. * Although the fist of potential cabinet appointees was not made public, it was known to include the names of Smith, Simon and a number of others with close ties to Reagan. Smith, 63, a prom- inent Los Angeles lawyer, was himself : a member of the screening committee. Simon was reported to be a unanimous first choice of committee members. Other names on the list included: . ' Director of Central Intelligence: William Casey, a New York lawyer who ; - ran Reagan's campaign committee and previonstinheRed the Securities and Ei-cfrange Commission. By SARA FRI77. Approved For Release 2001/03/06 EetAREMIN1-00901R000500010002-3 STATIN Approved,For Relgase 2001/03/06 : CIA-RDP91-00901 R00050 AT:..T C.L e, N EWSWEE K Oz P G 1 December 1980 The Smart Set: Reagan was at least as assiduous?and as winning?at paying . court to Washington's other regnant power elites. His visit to the Supreme Court was, so far as its historians could determine, the first by any President-elect since Mon- roe; he sipped a glass of blanc with Chief Justice Warren Burger and swapped sport- ing reminiscences with Justice Byron (Whizzer) White, once a football All- American. And, where Carter and the Cap- ital's smart set had held one another in mutual dislike, Reagan reached out for its friendship at a party of his own at the tony F Street Club and a dinner thrown for him by columnist George F. Will. The combin ed guest lists exposed him to a mix of dozens of BP's and VIP's from politics and busi- ness, the arts and the media, the churches and the local pro sports teams. Most were surprised to be asked?the Democrats to the point of guessing the invitations were a joke. They weren't. "There is only one letter separating 'President' from 'resi- dent'," Reagan said, toasting Washington on F Street, "and I intend to be both." He was pursued on his rounds by gossip as to the make-up of his Cabinet?a guess- ing game he tried in vain to discourage on theground that he hadn't chosen anyone yet. The best bet on most tip sheets was his friend and campaign manager?Williarn Casey for CIA dixtor. George Shultz was said to be leading for State and William French Smith for Attorney General?if Shultz can tear himself away from his Bech- tel Corp. presidency and Smith from his rich Los Angeles law practice. William Si- mon, much promoted for an encore tour at Treasury, has ran into opposition for ? his prickly personality?the opponents in- cluding his former boss Gerald Ford. A boomlet for John Tower as Secretary of Defense encountered static, partly because it might cost the GOP his Senate seat in Texas?and partly because some Reagan men thought he was lusting too openly for the job. Gen. Alexander Haig remained a - favored alternative. Shopping Lists: Reagan shrugged off the stories?the work, he said dryly, of "people who know more about it than I do"?and repaired to California at the weekend to begin making his choices. His Kitchen Cabinet shipped him a list of 78 names, four to eight for each major job, but staffers counted it barely more definitive than the newspaperversions. "It's a list, not the list," said domestic adviser Martin Anderson. "Reagan has been thinking about this for a long time. He has his own list." Reagan floated through Washington se- , renely above the hum of rumor; he owed his success there in part precisely to the fact that he has not yet had to decide any- thing serious or offend anyone important. A guest at one of his hey-look-me-over din- ners last week listened to his tales of how he made Sacramento work and was struck by his innocence?by his resemblance, that is, to all the other fledgling presidents who have blown into town promising to work with Congress, tame the bureaucracy, re- vivify Cabinet government and change the world. "I'm afraid he's in for some sur- ' prises," the guest said. "He doesn't realize what kind of bricks he's going to get hit with." But Reagan could hardly be faulted ' for believing his notices or their unani- mous verdict that he had conquered the capital he ran so long and hard against. , PETER GOLDMAN with GERALD C. LL13ENOW ? on the Reag-an tour, THOMAS M. DeFRANK, ELEANOR CLIFT and GLORIA BORGER in Wash- I ington and MARTIN ICASINDORF in Los Angeles - - EXCERPTED Approved For Release 2001/03/06 : CIA-RDP91-00901R000500010002-3 7. `,...) rAG:g Approved For Release 2001/03/06 : CIA-RDP91-1YOTAilitbla0500 XT 1C NEW YORK TIMES DECEMBER 1980. r1/ ESSAY :start My. builchip. We have to double 1 ? , ? our production of backfire bombers; I promised 30 a year, but the Americans, ' ? ? " will not know for three years if we d crews Cii. i. sproftutce160. agyoeaurr. nIowwilflorhaavirett: - . air refueling. And if we are to Miry our .0 , , ' SS-18's so they can carry 30 warheads , '. B rezi.ne-tv7 s A. instead of the agreed-upon 10, we must start now producing the plutcrnium and,- - building the guidance systems. , That's what Ustincrv wants, but I ? . ? ? cannot afford it The grain harvest was -terrible; Afghanistan has been 'er ' costing too much; the strikes in Po-4 ?-. ? j lande are giving some Russians the,' Sacire - -).wrong ideas. I c'do not need an arms - .- race, I need more food and -crSnsumer . I'm hoarse fui shouting at Senator goods. An arms race would be terrible.. Percy. ? Clever of ? the Americans to , because the Americans have the in send a man known to behard of hear- dustrial capacity to win it. It's vital 2 ing,-'and who makes a point of his tri- -'_'that they'd() notle-arn that we realize umph over. a -.physical handicap. I that- I need SALT II more than I can never knew for certain whether or not ; let them know. - -; ? .. he had his hearing aid plugged in. . ., Could it be that the Reagan advisers-, But is Percy- plugged in with Rea- ? are shrewder than either Arbatov or., , gen, Who' is also Slightly deaf? Arbatov ? Dobrynin think? Could they have sent says no. Says that Percy-is one of the .7 'Percy over here to lead me to 'think last of the liberal Republicans, a van- that new negotiations are possible' ishing breed,. considered a softie by the right away, so that .I will put off my Reagan men. Not a real emissary ?? February decisions? Could they be the only briefing he was given was to raising my hopes, so that I will. bel be handed a. couple of old speeches and obliged to do America's bidding in Af copy of-the Republican platform. ghaaistan, in the Persian Gulf, in Po-.- Percy speaks for himself, says Arbal , land? tov, not for Reagan. No, Reagan is not that smart. Look On the other hand, Dobrynin in at the way Helmut Schmidt made a Washington?who saw Richard Allen, fool of him last week, enticing him into the security adviser with the Amen- discussions in Washington so he could can accent ? sends word that Percy. tell'. the 'Germans he had the nevr,"- Could : be significant. Reagan may ' American President in his pocket_ want to show he is not such a Cold War Well, Reagan's young. throwback; and may be using Percy as I know what I must do: publicly in-2: a signal before he takes power. I won- terpret the.Percy visit as a genuine. der which theory is correct? Reagan opening to d?nte. That will The Americans are most confusing create a momentum in the U.S. for re- in their times of transition. Here I opening negotiations quickly that Rea- have the transcripts of Percy's press gait will not be able to resist without briefings in Moscow, telling people S appearing to be a warmonger. The back borne-how tough he was inform- ? Senate, the newspapers, the beaten Ing us that SAI.T II is dead and how he Democrats and Chancellor Schmidt warned us to stay out of Poland. But will all force him to be "reasonable,' here are the intercepted cables from and _accept my offer of cosmetic the U.S. Ambassador Watson to his so- changes. In that way, I can take away', periors at State in Washington, report- his leverage immediately. ? :-. ing how forceful I was -with Percy :If Reagan waits, I would have toT about SALT and showing what a pus?, make negotiations more attractive fop ; sycat he was. I like Watson's report. . him. Jewish emigration is down to 700 . _MYproblem is this: I must know be- a month now?I could ease up on that.: 'fore 'February, ,if Percy ,represents On the Other hand, if Reagan is cap..' - Reagan's view, 'and if the:Americans tured by the new momentum - of.i will be-willing to negotiate SALT two- _detente, I could then insist on an end to and-a-half right away. In February. America's grain embargo. A great the Communist Party Congress meets. rdeal depends on who appears more here in Moscow to lay out the five-year eager to begin negotiations. plan. Decisions must be made. The riposte that worries me most If the- Percy assurance i are really _ a proposal by Reagan for actual arms j: based on Reagan's policy:then we can reductions ? not just limitations --,- give the Americans some cosmetic _ such as Carter suggested in March of changes in SALT II ? make the new :-.1977. Carter retreated when I became ' Administration appear ,to have gotten .. '-furious at that; Reagan maynot. concessions that Carter failed to get ? : ". 'Maybe it's time to bring Anatoly Do:1 . and-ratify our deal. I rnusthave that brynin back to Ene torew mirustry,?1 Approved FaREkrifiC;tdailatitas:ttl..41-wiTzt. a ? ? - 4_ 1II.0 ot ? . 10002-3 offset our encirclement.., the Defense Secretary will be Laspar ? But itthe Percy talk q willingness Weinberger, tne director ot CeritraTrn- el ; el L. STATINTL aRtkivEomplchEas Release 2001104/A6N: RkpP91-00901R00050001 C1.1 ?PAGZ 29 NOVEMBER 1980 " * _CI% Director Stens! fold Tumor has failed in a ' concerted campaign to hold on to his job_in the new,. Administration. Turner;; whose rule has-,shattered morale at the agency, lobbied strentiously to keep his post. But Reagarrdecidedearly to bring in a.new team - at the agency: His reported choice to succeedTurner; campaign chiet.lrVillia;ni Casey, :despite- his. experl- ence. in the field, was not the favorite of some intelli- gence professionals, however..lhey would have pre- ferred Vice- Adm.- Bobby R..-Inman, -.head of the National Security Administration, or former Ambassa--f doe Ls uSllba, ? Approved For Release 2001/03/06 : CIA-RDP91-00901R000500010002-3 _ ARv-it-f Apitikiiied For Release 2001/03/Q6 r: ?CIA-RDOWNN311R000500 .051 ? NEI f 0 ?A 1 26 November 1980 ? ASHINGTON?Ronald Reagan-is still said to be working out his Cabinet choices, so the ? :net worth' of his official family cannot yet -be calculated. But whatever, the financial worth of ? his real Cabinet turns out to be, it can be said right. now: that the old friends and associates who are " assisting Reagan in the selection .process-16 -millionaires known as - Reagan's"--: -"Kitchen- Cabinet"-would -smalce the - Eisenhower::' ad- ministration's 'famed ft: "nancial biggies look like a bunch of pikers. ? ss The group is formally'. known as Reagan's -, transition advisory com- mittee on personnel, and IlViNANI" it includes some of the, 'former California gover-: nor's political advisers, - and several persons who. will serve on his-White House staff?people like longtime aide Edwin Meese 3d, who has already been named 'presidential- counselor.; California public relations man Michael Deaver, who is expected to be a top White House adviser; William J. Casey,, a wealthy Nevi York lawyer -Who prooably be named-direct-R*7?f theta; farmer Treasury Secret- ary WilliamiirSirge71 for the same post in the Reagan,administratien,. and Sen. Paul Laxalt (R- Nev.),-chairman of Reagan's campaign. - , ; But the- real power in the Kitchen Cabinet is wielded by a'relativelr small group of California millionlires who viere instrumental in luring Reagan into -running for governor of the V state against Democrat Edmund G. (Pat) Brown-Sr., Jerry Brown's" father, in 1966 and who have guided his career ever since. ? ' - . ?? First among equals in thiS group esSustin Dart, 73, chairman of Dart Sr Kraft Inc.-'a-crusty, outspo-- ken dynamo of a businessman who likes to think of - the Kitchen Cabinet as a"cross-section" of America. It was Dart, and-William' French Smith, 62, a highly successful-real-estate attorney and Reagan's personal lawyerw arsd -multimillionaire Southern California Ford dealer Holmes Tuttle, 75, who were' instrumental in bringing Reagan into the political. arena 15 years ago. - - . ? . relss; . , Along with the late- A.C. (Cy) Rubel, 'chairman of the, board of-Union'Oil Co., and' oilman Henry Salvatori, the group determined that the man who -spoke more eloquently and fOrcefully on behalf of Sen. Barry M. Goldivester and his ill-fated conserve:- tive crusade of 1964U-tan Goldwater himself simply had to assume the iedderships of ,,the Republican..' Party's conservative slang., ^ ^ In. athlition to_Smith? Dad, and Tuttle the current; 'j ? eesessai.s.-S4Vesele-Vesse Reagan advisory committee includes, among others, ; Alfred Bloomingdale, W. Glenn Campbell, head of the Hoover Institute, a conservative think-tanks Earle- M. Jorgensen, 82, chairman of Jorgensen Steels Jack Wrather, 62, head of the Wrather Corp., an oil, entertainment (it owns the rights to."Lassie") and real-estate conglomerate,. Theodore Es Cum- mings, 72, founder of the Food Giant supermarket empiress'..and- JaqUelin Hume of San Francisco, president of Basic?Vegetable Products Inc. Just how important is this Kitchen Cabinet In terms of shapingsthesReagan presidency? .'Very-. important," is the cryptic response of a Reagan 'insider, "not only in picking his to people; but in "? shaping policies.".' s - ..-? s When Reagan was elected to his 'first term as- -'California' governor, the original, smaller Kitchen Cabinet led by Smith was charged with conducting an' exhaustivetalent search to come up with bright, young, conservative managers to fill the top slots in state government:. Not only that, but the members also freely advised Reagan on -important policy. decisions. ' s . ,se _ Throughout Reagan's first campaign against Pat Brown, California Democrats viewed the powerful group as mystery Men" who would manipulate the politically inexperienced Reagan. for their own ultraconservative political ends. That charge fell flat, however, since none of the inner circle seemed to want anything for themselves. They were all wealthy, powerful persons in their own right who sought neither appointments to high office nor government contracts for their busines- ' The larger, slightly more diverse Kitchen Cabinet has more competition for President-elect Reagan's ear than the initial group. Reagan insiders point out that he must also heed advice from the Republican establishment, particularly former, President Gerald ' Ford and top ..officials in the Nixon and Fordsi administrations? ,and Republican-leaders-in the Con- ' gress_ _ - ? s --- es, Yet is is also true that the list of 70 prospectiVe.; appointees for the 13 Cabinet posts he must fill that Reagan is currently studying on his ranch near .4 _Santa Barbara is a list that was compiled by the! Kitchen Cabinet.- ? ' ' ' ? ? , Reagan insiders, defensive about how big a role i the Kitchen Cabinet may have in the Reagan . ad- ministration, argue that most Presidents have, in the 4 'past; relied on advice from longtime friends and ; associates. After all, FDR, had his "Brain Trust," ,.l Truman had his "Poker Cabinet," John F. Kennedy had the "Irish, _Mafia" and Jimmy. ,Carter had his Georgians.::. ' ? ? - - Approved For Release 2001/03/06 : CIA-RDP91-00901R000500010002-3 STATI NTL Approved For Release 2001/03/06 : CIA-RDP91-00901R00050 SPRINGFIELD NEWS (MA) 24 NOVEMBER 1980 By FRANK FAULKNER As Reagan's friend and presiden- ., AIVIHERST The Central pal -campaign manager, Casey was -gene& Agency has been recruiting dOnsidered a likely candidate for sec- students at the. University' of Mas- sachuietts, a rnajOr]change from the low profile it kepi' during .the decade of anti-war proteifi and an indication that the agency .-in*-13e:fmaking a public comebackil ? _ ? '. CIA recruiters Were here Thdrs- day and FridaY to attract students in- terested in "research, analysis and collection of foreign intelligence" and who had UMas training in electrical engineering,- computer science, eco- nomics and language training in Sla- .vic.; Asian or Middle Eastern studies. 'Arthur Hilson, the IIMaSs director of placement, who schedules recruit- rnent interviews, -said the CIA began ..,..4'recruiting here during the 1960s, but ,bypassed the campus due to student ; Bush May ,Help US. Rep:. Edwailet 'P. _ Boland, ; D- . Springfield,r-chairman of the House 'intelligence' Committee, -.'which has . 'purse string 'control over .,the spy , agency, hassaid that haying former . CIA director Georg,e Bush as the new administration's ,:".point Man" may T.. beip the agency.nvercome inany of its 7.-.-difficulties : -j"..-viith '' restrictive i ?legislation. ..?'? ' ..',.-, -fs:.. . -Reagan's transition teami has. indi- cated that the neVibIA director may :-.-; be William J. Casey,' who helped di- ', ',.rect American '' intelligence -oPera- ;C,tions behind German' lines 'late in 'World War H.,. :--,' :7 ...1*.jlit t ''' -::;?:?:1'. ;Ii.-':'? 2 f ;Boland 'termed CaiiCasey,"an.?eiCel:=:-; -' '-' ' ' ?-s 4 11.-'1. excel- rt 'a . administrator who fik a..we 7., iialitied background --''',,,tfti - intellil lice:"-',?' The Coligressihan' said he? knew him when Casey waiOnemberl. App reAtildt0ear'Roliedgi342001/69/ 4dn:ilhistritiOns;i.ez....:;.?:-.,?,,T.:,---2., eretary of state, but George Shultz and Alexander M. Haig,.president of Unit- "ed Technologies Corp.. in Hartford,? Conn., have been named as strong; : possibilities for the State Department helm. - ? ? ' Haig a Possibility - Haig has, also been mentioned for the CIA post, and he is a possible candidate for secretary of defense, but the retired general would'require a Congressional waiver from legisla- tion which prevents officers from 'ap-' pointment to the Pentagon post with- in 10 years of retirement, United Press International, citing transition sources, has dropped Haig from its list of top choices, which in- cludes and has listed George Shultz as the likely secretary of state and Casey as 'potential director of the CIA. Casey is chairman of Reagan's transition team, known as the "kit- chen cabinet," which has been advis- ing the president-elect, who is expect- ed to announce his cabinet choices Dec. 1. World War H Service ? During World War II, Casey head- ed the German intelligence branch in the Office of Strategic Services. Ac- cording to R. Harris Smith, author of '"OSS: the Secret History of Ameri- ca's first Central Intelligence Agen- cy,' published: in, 1972, Casey was chief of the' Strategic Intelligence Branch 'which had contrpl ' of ' cov- ,ert Operationi-izi Germany and by the spring of 1945 had parachuted more NaffirpIPAthreiEe6co n ers an repot on 'troop an emergency measure, the new SI Branch chief, a wealthy 32- 'Year-old tax lawyer, William Casey, was given overall operational control of German projects," Smith wrote. "He coordinated the- effort to send Polish, Belgian, and French agents to :the -major crossroad cities of Ger- many. The tactical missions were I launched by Army units at the front. The deep penetrations of agents para- chuted far behind the lines were flown from, Namur in Belgium or from the OSS detachment at Dijon in eastern France." In 19,39, Casey was chairman of a "National ' Citizens Committee" which purchased large newspaper advertisrnents throughout the noun- : try supporting the Nixon administra- tions Vietnam policy. .. 'gChaired SEC I. In March, 1971, former President Richard Nixon nominated Casey to Lthe Securities and Exchange Com- mission andY Casey became its chairman During the campaign, Casey advo- cated a more aggressive American intelligence operation and, in combi nation with Reagan's campaign rhet- oric, caused some liberals to fear the new administration would unleash the CIA from some Congressional controls. - Boland said his House Intelligence Committee controls funding for cov- ert operations and he did not expect major changes in the agency. But the Heritage youndation, a conservative research "group in Washington, released a 97-page intel- ligence report Thursday advising the Reagan administration ' to make sweeping changes in the agency. The report recommended separat- king' clandestine operations from the CIA, hiring more and better trained agents,_ establishing' competing sources of intelligence and altering laws which restrict CIA gaz.all2ns. 00010002-3 _Approved For Release 2001/03/06 : CIA-RDP9g/0,ffW000500 C!.4 NEWSWEEK - 24 November 1980 pE s p Reviving a Presidential Panel The Reagan Administration is expected to revive a White House panel called the President's Foreign Intelligence Advisory Board, created by President Eisenhower but disbanded by Jimmy Carter. The board was usually composed of establishment leaders, and Carter thought they weren't rigorous enough in reviewing _ CIA operations. William Casey, Ronald Reagan's campaign man- ager, once served on the PFIAB and so did Washington lawyer Edward Bennett Williams, one of the few Democrats on the Reagan transition team. Vice President-elect George Bush worked closely with the board during his tenure as CIA director under President Ford. Approved For Release 2001/03/06 : CIA-RDP91-00901R000500010002-3 Approved For Release iC, ON FA C.;11, STATIN 2001/03/06 : CIA-RDP91-00901R00THE WASHINGTON POST 24 November 1980 Rowland Evans and Robert Novak . 4Aren't we a very old team?" Winston t..`hurchill asked Prime Minister Neville I Cllemberlain on Sept. 2, 1939, surveying' ;Chamberlain's proposed war Cabinet. It .Eis a question President-elect Reagan also should ponder:.'as, he begins Cabinet- snaking in earnest. In fact;, he should broaden the guess etioneAren't we in danger of becoming a very old, very gray and very establish- ment team of businessmen with reputa- tions as managers but not as men of ideas? Before Reagan himself has made ' a single Cabinet decision, the most prob- able and important selections are arous- ing anxiety among his supporters. The antidote happens to be very old ` 'himself but is anything but gray, is not ? establishmentsnot a businessman, not a- manager and is surely filled with ideas:! Ronald Wilson Reagan. Jut as Reagan. isthe best hoThrlidi&il eConornic. aid. ? national security policies, he is also the -principal obstacle to an old gay Cabinet. ' That Cabinet is taking shape in leaks from senior Reagan. -aides. New York lawyer William Casey, 67, at CIA and Los Angeles ? -lawyer William French Smith, 63, at the Justice Department are i considered all but certain. Those twin executives from the Bechtel Corp., Casper Weinberger, 63, and" George S4,ultz, 60, are prime possibilities to be named somewhere--State Department, Pentagon or Office of .Management and Budget. " = Adding William Simon, at 54 neither old nor gray, only slightly modifies the. gerontocracy of this presumptive Cabi- net. Along with Reagan, -soon to be 70? its average age is almost 63. That ap- proaches the proptssed Chamberlain war' ld raCabinety Cabinet's average age Of 64 ("Only oni'S year short of the old age pension!" the then 65-year;old Churchill exclaimed). But age is not the moat seriouS prob- lem: Some insiders call it an "embarrass-. , ? merit" to make an attorney general out of Smithr-described by one -Reagan ad-.' Viser as "a: society lawyer." Reaganites blame him,- as Reagan's family lawyer, for Reagan's politically embarrassing zero income tax, payments of the past.: Whether such criticism is well-founded, nobody has accused Smith of serious thought about government. Nor does anyone believe that Casey, a brilliant World War II manager of es- pionage operations, has an agenda For rehabilitating today's CIA. Although .-Vrelniberger may return to his Nixon ad- ministration post at OMB, his transi- tion paper on the budget is considered' by 'experts to be 10 years out of date. The widely respected Shultz is 30 much an establishment conformist that even some of his admirers believe he would be an effective secretary of, state only in an administration peppered with younger, more innovative personalities. Otherwise, he might take on the colora- tion of his older, grayer colleagues. Why are the names emerging from Reagan's kitchen cabinet so lacking in youth, dynamism and imagination? Be- cause the advisers, elder establishmen- tarians from the world of business, seek- above all managerial ability. Past Republican administrations, as well as Jimmy Carter's, have been se- duced by the notion that managerial .ability--is the principal governmental skill. Lawyer-banker Laurence H. Silber- man, a trenchant Republican analyst of.. goveirtment, has written that ideology and program are far more important Without ideology, Silberman wrote in I 1978, "we see the now familiar picture of President Carter pondering each new, question as if it were an isolated ad hoc engineering problem." That is why the abrasive, contreversial Simon is Welcome relief to Reagan sup- porters who worry about an old gray Cabinet. Whatever the complaints about his temperament, Bill Simon lives in the world of ideas. What's more, he is willing to change them, currently showing much more inclination toward radical supply- side economic notions. Republicans Originally attracted to Reagan as a force for change also want at least one young.,-clearly innovative figure in an important Cabinet post. Rep. David Stockman of Michigan, 34, carries that hope in an intensifying push kir him as 0.11,IB director. Stockman has izi-1 formed Reagan transition agents he has no interest in a token position, such as secretary of energy. . s The conventional wisdom doubts Rea- . gan would stray far from the advice of his old friends. While insisting on -massive tax cuts and massive defense spending against the counsels of caution, it might be too much for Reagan to ca.sta gimlet eye on eminently-respectable recomme-ndations from his kitchen cabinet , ? But unlike those retired business ty- coons, Ronald Reagan has never met A payroll. For the last 20 years;'. he has dealt with ideas?showing staitling re- ceptivity to new concepts. He might prefer a few younger colleagOes with similar intellectual boldness by his side.-- ' c1980,Field EnterpcLies, InC.1 Approved For Release 2001/03/06 : CIA-RDP91-00901R000500010002-3 Approved For Release 2001/03/06 : CIA-RDP91-00901Reitriaat :AR T I C LE i!..L1' EAR1.0 PAGE.4eR272,2 NEW YORK TIMES 24 NOVEMBER 1980 the sponsorship of Henry Kissinger, ESSA?17 - ? who appreciated an efficient order-fol- - lower who would coolly tolerate the most demeaning bullying. Like a Gil- bert and Sullivan admiral, Haig knew how to polish the top-brass handles of the Oval Office door. 2. The 17 illegal wiretaps. Because of a personal interest in the 1969-71 eavesdropping on newsmen and White ? e' ? House aides, I asked William Sullivan ? -e".ere, ? of the F.B.I. in 1974 who was the man who transmitted the White House re- -, By William Satire ? quest for the unlawful surveillance, WASHINGTON ? Get out your yellow and who reviewed the transcripts. The pad and put yourself in the loafers of the reply: "Colonel Haig." When asked to President-elect as he weighs the pros and say it wasn't so, my former colleague' (eons of his choice for Secretary of State. said of the tapping: "It never gave me ..'Ore name that appears on the final gas pains." To this date, Al Haig has four-name short list is general Alex- ? ? never been! reprimanded for ? or ander M. Haig Jr., former Deputy to -shown any remorse for?his intimate National Security Adviser Henry KIS; , role in this perversion of the national- singer, former Army Vice Chief of security power. (I have forgiven him, Staff, former White House Chief of 'but whenever there is a click on my Staff, former NATO commander, for-.: phone, phone, I cannot help saying 'Hi, AL" _ mer man on slow horseback. - ; ? 3. Trotting out the tapes: At confir- ? The assets are Impressive: 'nation hearings, any embarrassing 1. Demonstrated bravery. The 'moments on the Nixon tapes involving : tinguished Service Cross Is not handed Al Haig are sure to be publicly played. out lightly:. Al Haig was a genuine hero ' A few apple-polishing remarks are al- it.' the battle of Au Gap, early in the - ready known ? "Only you, Mr. Presi- Vietnam War. In addition, he won a - dent" ? but Haig assures friends that battlefield promotion to colonel of an-: no no substantive improprieties will be ' infantry battalion for leading troops in .' revealed. Before making any decision, ? An Loc. Performance in combat ? Governor Reagan will have to make coolness under fire?Is an important certain that Haig's recollection is ac- criterion in judging any man's quail-. curate and consider if he wants any ficati on torn job in the storm center. Watergate-era associations attached 2. Well-regarded by allies. After ar- to his Secretary of State. (John Con- ranging for the resignation of Nixon, nally also- had this problem; Shultz ' Haig was assigned by President Ford":a.ndW'einberger did not.) ' ' to the top military post in Europe. As 4. Running for President from State. NATO's Supreme Commander, he won ' Al Haig stilt wants to run for Presi- ' the respect of most of our allies for his ?dent; as Ronald Reagan roust be the intelligence, political sagacity and first to know, that is not an ignoble forcefulness. Europeans are familiar ambition. The question is: Does Rea- ' with Haig and would be comforted by ? gan want a man at State afflicted with his appointment. ' the need to factor his political future 3. Finn grasp of the' strategic into his diplomatic recommendations? threat. When he resigned from his Now put down your Haig yellow pad. NATO job last year to test the political . Pick up similar rundowns on the pros waters .back:- home, Haig recom- 7 and cons of other panel-recommended mended that the Senate hold the SALT " "finalists":" George Shultz, who has 7 II treaty in abeyance while its flaws , asked that his name be withdrawn but were renegotiated. He was especially who was told to take that up with Rea- - critical of an agreement perrniting the ? gan directly; William Casey, who. is ' Soviet backfire bomber and 55-20 mis-. feysay_beedysiroice for C.I.A. ceThiit , sites to "run free" while limits were is showing late strength in the choice placed on our cruise missiles. He was for State; and Casper?Weinberger, tough on SALT before Afghanistan. e who is closest of all to Reagan. . :4. Experienced cultivator of opinion- Add to that list Henry Jackson, who makers. ;Many of the books and arti- would contribute that note of unlike- cies about the last days in the Nixon , mindedness; on domestic affairs, so -White House drew on details supplied - needed among the top handful. At the --on deep background ? by Haig or highest level., good-soldierliness is an his assistants; as a result, most ac- overrated virtue; it would be as much of counts gratefully, portrayed Haig as a mistake for Reagan to put a military_ the de facto President,' saving the " ? mind at the head of State as it would be country from the potential thrashing- for him to put his personal lawyer at the about or a wounded leader. Thouglr4Vhead of the Justice Department. = Nixon loyalists fumed, practical politi--:,-e;le Where does a Cabinetmaker come - clans admired Haig's ability, to extri-::' out? In the case of Haig, his assets far - catekimself with praise from the key . outweigh his. liabilities --- for Chair- ? :..)vriters; x,kp= man of the Joint Chiefs, for chief SALT Approved For qtagg ietetufto 09 11?00060804160012 .; or ?scow, or to command a military- 4r- Sycophartay footwork- Haig is the,...!?.k political operation to provide Iran with oillylipur-starl general never to have '71- a auitable trade for the hostaaes. Not for STATINTL Approved For Release 2001/03/06 : CIA-RDP91-00901R00 WEST PALM BEACH POST (FL) 23 November 1980 111' 01 ? ? ..,?!1!?;',0414 ' - tices A By 'Lindy Schultz Post Staff Writer . "?"...' , --JosephCasey? iteagan's apparent,,Choice to direct' the. fCentrai - Intelligence , Agency travels ' to And .from his house on.. Palro,, Beach: 'so junobtrusively, ; that few- people ever: know he has come and,., gone:. - Palni Seichers don't 7 -.even know-, that Casey- haS owned his hii-,house on NI Divan.: Blvd. just-north of the Kennedy.. estate _ --????t for ;roughly ?the length( of-.-..!-Jimmy ? His;-2-: telephone :1-..'iitiMber,-; unlike. those_of4:rnany Palm Beach social- ite,-,-.'.is' ::unlisted.',I.He does not be- ' long to the Palm Beach Civic .Asso:, elation, whose' membership is de ri-; gueur, for' the island's- establishment. During the- intermittent visits made :by:him and his wife. Sophia they al- most. never -make the social ramble, preferring' instead : in': see --a few friends and talk. of world and finani ,cial,-affairS. The area is Casey's bar-: [box; after 67' stormy years, during which he ' hai ',been a tag lawyer,: high-ranking government official and keeper of the Republican flame.-: ? . "Bill and Sophia. are quite .private *hen. they! re2. here?They"re not so- cially,,. 'Said .-- Granville Morse, a -semi-retired Palm Beach investor , who sold-, Casey his borne. tri/5s here are- relaxation ,for blab Privacy it".;What.he :values most when he'S..here.",;:?-?t-li!,Z.i.".'.'44e',:`,."".':'4d'f Casey's. has been i.very public lire' :ntherwise; from the. -time he Worked, ;in the _office.; .oVStrategic Services (OSS) the mother of the CIA .duringiWorl&-.War41. through: his 'tenure as president of the ? Export:- Gerald. Ford. :Over those three decades, he estab- lished himself-as the prototypic 20th-': -century Republican: conservative;: :urbane,. successful and wealthy. .;:.%,;;;,i, made 'all the money inihnsi.-1, -Inez that ? my-family" could spend,".? he said10966, can make; :a real- contribution in public offiee..!1`4, His, friends:- say', he is., known ler.: -frankness- Witness the statement :was 'never- in -sa -la* firm where V: _wasn't bringing percent of theC :birsiness-131..that?.claim is true, his' LinfluenceAPII)i/theinf- FocirRikid t.14,F-years .4 -partner --a 'NewYorlt !OM-that included' Leonard nhnirrrinvi nfth Rpnubliean Na;.!, a ""The path from-service-nsa Couni sel'-liv--EhrciPeAo -.those 'running the? Marls-hall PlairJL--t: under -HarrY-Tru- . rnan-;..-- to possibly' the'.CIA? . head- quarters in Langley, Va., under Ron- ald Reagan has not been without its roadblocks:.' and blind Curves. One State- Department' official familiar Casey's - career - said; ; Cagey may fall sometimes," but he knows how to land on his feet.-- ;Three times between 1962 and 1965 Casey was sued, once for plagiarism ? he has WrittennuMerous books on taiation:aad-,-..itivestment twice in 'connection with '.his bor- , porate activities.. Casey admitted at Senate hearings,._;7. -after first deny- ing it- that he; not the judge;t. had moved to seal _the record of the pla- giarism'''triaL One of the stockfraud suits was settled out, of' court. third eventually was dismissed.- All of this appeared not to' ruffle Casey, , v--rho blithely declared . to .one report- : ;e4- that .."guys: like me are always gettinesued."- At one point his annu- al income was 'estimated to be $250,- f His Burly-burly background elicit- sharp- discussion when Casey was nominated by Richard Nixon to be- come first' in 1969 a member of the Advisory Council of the U.S:' Arms Control and Disarmament Agency, two years later, chairman of the Securities And Exchange 7 Corn- mission . (SEC.) At the Disarmament Agency: hearings, Senator J. William Fulbright Sparred with Casey over a 'newspaper ?advertisement promoting' -the Anti-Ballistic Missile and placed -ny-the Citizens Committee for Peace with Security, which Casey. founded:. It had been revealed that 55 of 344 people whoiesignaturei appeared on . the ad had -ties to 'the -defense in- dustry.' Despite '.Fulbright's objec- tions, Fthe'.;Foreign Relationi. Corn-.: mittee approved-Casey's nomination. :'In l971,'.Sen,,.William,Pro,xmire (DVisc.);!?;;chairman:;.of.: the Senate 'Banking' Committee, "arguee,with' ;casey-- overthe SEG: said- he .vas- a"risk capitalist..', Proxmire ; contended Casey ? was ?wheeler=,_ dealerventure capitalisMIn? :of Casei*opr one: . . prIggiureg ef o Casey:s?, back..? '`.,..grounclaPprindm tek.,?,..thataiit-- the se, - ie first SEC chairman '1-- Joseph R Kennedy of New York and Palm Beach. Indeed, Edward Kennedy, told Washington's Gridiron Club that -"Casey, is the second most outra- geous appointment in the history of the SEC_ The fir3t was my father." As, chairman,,-," Casey was en- meshed in two scandals that brought down other members of the Nixon - administration. In 1971, the SEC had sued International .Telephone& Tele- graph (ITT)-for,:stock -fraud -during- the company's merger,. with the Hartford - InsuranCe -Co.- When re- ports broke ....alleging collusion between ITT.: and the Nixon White House,. Congress :.tried to: get the SEC's files' on its ITT investigation. After a meeting at the White House, Casey sent the files to the Justice Department,-, which is a member, of: the Executive -Branch. When, two years later, news -of that transfer came out, Casey had become Under- secretary of State for Economic Af- fairs and was traveling abroad. He declined to comment. . - At about the same time as the ITT case, the Nixon administration was becoming involved with financier Robert Vesco, who then as now was living out of the country to avoid prosecution on fraud charges. Casey, at the req-uest of then Atty. Gen. John Mitchell, met with one of Vesco's attorneys at about the same time Vesco gave a $200,000 contribu- tion to Nixon's-1972 reelection cam- - paign:- Later, when Casey testified .for the prosecution in the trials of Mitchell and former Commerce Se-- cretary- and Nixon fundraiser Mau- ? rice Stans, he claimed he could not remember many specifics. . ;With the defeat of Ford in 1976,-. Casey's name disapp&ared from the front pages and popped up only occa- sionally in the business section. He had returned to the practice of law. and Reagan seemed content to have :John-,Sears run his campaign. But -early- this year,. just after Reagan :had won . the - New- Hampshire :primary, Sears was fired and Casey- ' was '1 .named -campaign manager...! Currently heis director of Reagan's- presidential ;transition team -in _Washington_ 901R000500010002-3 rrl-scts:ft.5'314 STATIN Approved For Release 2001103/06 : CIA-RDP91-00901R000 ARTICLE AI'? THE WASHINGTON POST PAGIiLAW-- 22 November 1980 a. 4 Forel 4 doryT'.,.Bo'ar , -?"'' ;?qd Robert G. Kaiser ? "Wahigon P,?itsfarr ,,vrt tem, 11:-trresideritgI4CMoriald tetgih. met -fa the fiat! tilifil'idstdirclaii with his in- terim foreign ...policy. advisory board, a high-powereclehipartishn group that in- -eludes loin-ter:president .Ford and sev- eral ?other': natrrintir-figureS.- Missing, ;.howevere.Was George Shultz; a former secretary of the treasury, who-bas, been prominently mentioned as - a possible -seeretary'.of state ,i4.-...the..,Reagan .ad-. ministration. ?' Shultz is presiderit':or the ,,Bechtel Corp. in San.FranciSce and was unable to, attend. the Washington. meeting. be_ ..ki,a7.;"?.4eield Ntejt. Atai ireafit",-19 ?-?ettelltecipictetirte,tfreeti rig, went, -en foremost ot the day cloSetredo4S::ineltlie,Siinate and Jpeadlitterteni hinl?toit,1110;?: ? - t t. . ? il4=0. ? = WOMB: xere, enn. P , he?particrpa ? fat escribed. the.;enieetitrge'AS-'`,';,k 'Hemet. A. 'Kissinger, Alexander Haig, Caspar W. Weinberger and Dan- Rrimsfielcir.Sens:- Baker; -1-tenrrM. ? jacksoq;(neWash,LeePtliegovier (R?:: . Andllicha4d ,Storq GiJWilliar Th. Cfrnent,! farmer aiihasator. Annel-ArinstrOng'' and. John McCloy, and advisers Jeane Kirk!: -.....,patrick,,EugeneesRoefow. ide'Edwaral Bennett, Williams_ -= '4 = Top Carter a,iministration .officials, including SecretarY::.tir State Edmund Muskie, Defense' Secretary Harold; ' BrOwn ? and CIA chief Stansfiekt - Turner .took :Fart in portions of the'. : meeting, provraing-. briefings on current: defense, toreigi policy ancleintel4ence- ,, sitnations her the-: Reagent -:'-group.,?eee Glige BUSg joined aid grolit4.qr about . head- :,('Neaters yeeterclay. IngtpingliSt before 'Ijeaian rot- for:;,cL?ifOrni#.:-'7:4;!-''? i3Ord/Vi far ri '(3aseS',.1vld reportersIe ? t pres- rit-eleCt .Streesed,';?his.Intenteto carry. Eitpartisan. foreiga-Poli'djk.' n .e Okineatit'fte CO PC 4:41reforeie-ri: jolicyevroblems -e:andr.opportunities::that.ewill";face - 'mew administration. '].he idea, he said, the committee to come up with' a---.set of recornmendatiorwand evaki- ..atiuns.o various. 5ituatipps,; in a .report ? that cart be presented to Reagan shortly b?e the inauguration inI?January. group, he said, would meet again early in December. - Kissinger said, "Almost every ?topie you can imagine was discussed." Baker celled it "the most substantive meeting" e he-had ever . seen' in his .14 years hr ? the. . Asked about his -own role, Eissinger- ..' reiterated' that he would he available ?, for special,assignment and advice but i.,that,?rt: don't expect to play a full-time 'role" in the new adrni tration? , ? Asked what he thought about reports ..that his former deputy and ex-NATO commander Haig .might become secre- tary cif' State, -KiSsinger said. Haig was a.--,-"distid;LiiShed-,Anierichn and 'would %be' an outstanding selectiOn." Hai _arid;.Shultz.:are the two names ;Allot commoply ?mentioned for the state Department poste-though Reagan e twin ,saicl,Yesterclayrthat no: decisions ;,.have. beeitrnade yetpri, his Cabinet epe ee e.4,4 tit - ? ? pointments.. Shultz .reportedly has teat friends that he has some doubts about' taking the:post, if offered, and in an in, ter.vieve with:Ilia Boston Globe ThUrs- claY,ette eclme;.vie.dged that, if he had .any differenceS with Reagan, they prob- ably lie: ire Middle East policy_ eez.-., ? Some participants at yesterday's meeting also said they -detected a no- table lack -of -.communication between Tower, who wbuld like to he secretary or defense; and Clements, who report- ? edly would . like to-see Tower .remain as incoming chairman of the powerful ? Senate.Armed Services Committee for the. next Congressa was reported yes- . terday that Tower's chances of getting the Pentagon pest are now not good.., I Later in ,the day,' Reagan, aboard his 'planer en- r' antes to: California, also seemed to indicate, according to United Press International, that Tower's status in the Senate would work against his . being appointed: to. the defense post. . "I think the consideration with any- one who is In the legislature would have 'to be whether you would want to -reduce" the ? Republican majority there, he told reporters. Asked if that-i .would apply to Tower, Reagan replied, "Yes," He said he would take the Senate.. *situation into.account-when making his.1 -appointments_ Approved For Release 2001/03/06 : CIA-RDP91-00901R000500010002-3 STATI NTL Approved For Release 2001/03/06 : CIA-RDP91-00901R0005 An/CU ItARZ:0 O PAOrt, NEV YORK TIMES 21 NOVEMBER 1980 eport to Reagan A t'd& Urg.s nding Many-Res. frictions onU,5, Spyina, _ _ 4 ---- By JUDITH _espeeetoTherievvYorkTintes ? WASHINGTOW Nov:" 20 A: report prepared formational security-advisers to President-elect Ronald Reagan 'calls for 'sweeping changes:in intelligence prac- tices and the elimination of many restric- tions on the intelligence commtmity. The 97-pagereport, prepared under the auspices. of. the, Heritage Foundation, a , conservative research organization here, concludes that in order torevivethe na- tion's intelligence capabilities, "agencies ; must be rebuilt through a combination of . legislationeexecutive orders, administra- tive actions and Presidential leader- ship." It suggests separating clandestine operations from .the Central Intelligence Agency, hiringenore and better-trained, agents; establishing- competing sources: of intelligence analysis and changing . laws that restrict intelligence activities. , The report characterizes the current intelligence apparatus as being "in the. worst condition since before Pearl Har- bor" and blames-not only President Car- ter but also three previous Administra- tions or politicizing intelligence gather- ing and analysis. - ? Officials zetressed: that key Reagan aides had only begun to think about how intelligence should be reshaped, and the report, they said, is only a tentative list of ipptions open to a Reagan administration. As one indication of the tentative na- ture ot,the options, 3. William Midden- dorf, former Secretary of the Navy and acting head of the transitian's task force on intelligence, and other members of the task force, met today for the first time! wjth Adm. Stansfield Turner, Directorof 'Central InteWgence. ? Hnwever,mfficials close to the Republi- Can transition effort in intelligence said it was likely that several of the proposals in the report would be pursued by a Reagan administration: ancl the new, Republi ,.majority In the Senate. - 7, The officials said that Mr. iittagan had not yet chosen a Director of Central Intel- ligence but thar William 3. Casey, the _ . Reagan campaign director, was known to be the front-runner. Mr. Casey is known to support a much more aggressive ap- proach to intelligence operations. Moreover, many of the report's propos- als resemble portions of a now-dormant legislative charter, introduced last sum- mer by Republican Senators, that would restructure intelligence agencies and relax restrictions on domestic spying. Many of the changes advocated in the report are bound to be:resisted by civil liberties groups, which have fought for years for the laws and executive orders that now limit intelligence activities and protect individual liberties. Other struc- tural recommendations are bound to bel controversial, since they would require . an overhaul of the current intelligence scheme. They stern from an assumption that the. organizational "setup is largely responsible for what the report contends! Is the poor quality of intelligence. The report accuses the Carter Adminis- tration of weakening American intelli- gence "through mass dismissels of C.I.A. officials and partial replacement of them by inexperienced employees," a charge that agency officials have denied. , "Presidential leadership must play a role in rebuilding our intelligence serv- ices, which have not been so weak since _Pearl 'Harbor, and can instigate r.ot only -administrative reform? s, but alscipromote,' legislation and give the intelligence cam--; munity the moral and political supporti necessary to fulfill its mission," the re- port concludes. : .. : : i ee Many of the report's recornmendatiens' , would not require legislation_ For exam-. ! pie, it urges the revocation of an execu-I ? tive order that governs intelligence struc-; . ture and provides operational euidelines ' ! and restrictions for the intelligence. agen-1 : i ces. , . .. :1 : The report recommends that "Ian- ! guage training, as well as adequate mili2 Itary and political instruction" should be, standard for agents. . _ - Approved For Release 2001/03/06 : CIA-RDP91-00901R000500010002-3 Approved For Release 2001/03/06 : CIA-RDP91-00901R00 /// ;riCLT THE WALL STREET JOURNAL 20 November 1980 STATI NTL geagan Meets With Sen. Tower of Texas As Contenders for Cabinet Posts Emerge By TB! OTH Y D. SCHELLHARDT 2.'aff fif?por ter of THS WA LL STREET Jo ITRNAL,- .7 WASHINGTON?As Ronald Reagan con- tinued to acquaint himself with the nation's capital, leading contenders emerged for sev- eral top Cabinet posts in his administration. The President-elect,. held a -' half-hobr meeting yesterday. with -one of them, Sen. John Tower of Texas", amid reports he may name the 56-yeareold conservative Republi- can as Defense Secretary. , Associates of Mr. Reagan said other front-runners for Cabinet positions include: , ?William French Smith, 63, Mr. Rea-? gan's personal lawyer and business trustee, to be Attorney General:- ?Former Treasury Secretary William Si- mon, 52, to occupy the post he held under Presidents Nixon and Ford. " Reagan aid aide.s emphasized that the Presi- dent-elect hasn't made final decisions on any Cabinet appointments. "He hasn't signed off on anybody yet," said one aide. But they said he, is close to making decisions on nominees to head the departments of De- fense, ?Treasury and Justice. Others said that former Treasury Secretary George Shultz is the leading contender for Secre- tary of State: - - -.? Mr. Reagan has received a list of recom- mended Cabinet appointees drawn up by his 19-member "kitchen cabinet," headed by Mr. Smith. That group of close a.ssociates is to rrieet again Saturday in. Los Angeles. Mr. Reagan plans to return there tomorrow, and thus will have further opportunity to discuss Cabinet choices with these advisers. - Mr. Reagan's schedule yesterday left lit- tle time for Cabinet picking. Besides his ses- sion with Sen.- Tower. the President-elect re- ceived a national- security briefing from Car- ter administration ordcials, lunched with GOP House and, Senate members, paid an unusual courtesy call on the Supreme Court Justices, and held a private meeting with Massachusetts- Sen. Edward Kennedy. The liberal Democrat, who unsuccessfully chal- lenged President Carter for their party's presidential nomination, requested the meet- ing. Last night, Mr_ Reagan scheduled a din- ner with Republic= Senators and their spouses. While Mr. Belson spent a second day wooing otfictai Washington, speculation continued to mount on his Cabinet choices. Mr. Smith, a trusted Reagan confidant, is considered almost a sure bet as Attorney General. However, his appointment is likely to raise anew the question of whether a President should select a personal and polit- ical associate as the top U.S. law enforce- ment officer. Most recent Presidents have done so, but this sparked a controversy after Richard' Nixon's Attorney General, John,1 Mitchell, was convicted for his role in the; Watergate scandal, . Mr. Simon, .who has worked hard for Mr. Reagan the past couple of years, likely will be tapped to head the Treasury Department. However, the hard-driving, demanding man- ager irritates some influentia.1 Republican advisers to Mr. Reagan. Former .President Ford, for instance, favors economist Alan Greenspan over Mr. Simon for Treasury Secretary. Sen. Tower only recently emerged as the likely choice for Defense Secretary. A pro- ponent of a stronger U.S. military presence, the lawmaker has been expected to take over as chairman of the Senate Armed Ser- vices Committee. If Sen. Tower is chosen for the defense post, Texas Gov. William Clements might name former Treasury Sec- retary John Connally to his Senate seat. Although Mr. Shultz is the rumored front- runner to head the State Department, the I Bechtel Group executive is reported to be. reluctant to re-enter government service. . Other contenders for Secretary of State in- elude Alexander Haig, former commander ? of the North Atlantic Treaty Organization, and former Budget Director Caspar Wein- 1 berger. _ eee ? _ "Likely" or "most likely" appointees to other Cabinet posts are emerging, as well. Illinois Agriculture Director John Block is viewed as a top contender for, Agriculture Secretary. Under consideration for Secre- tary of Health and Human Services is Eliza- beth Dole, a former Federal Trade Commis- sion member who is married to Sen. Bob Dole (R., Kan.); for *Transportation Secre- tary, Drew Lewis, prominent Pennsylvania ? Republican and Reagan aide; for Commerce Secretary, Republican Natonal Chairman Bill Brock; for Interior Secretary. former Wyoming Republican Sen. Clifford Hansen, and for Energy Secretary, Rep. David Stockman (a, Mich.). Mr. Weinberger, another Bechtel execu- tive, may be asked to be director of the Of- fice of Management and Budget, the post he held under President Nixon. And William Casey, chairman of the Reagan transition ofnce and a former chairman of the SeEiia-T-- ties and Exchange Commission. is the leaa- ing candidate to be airector or me Central InteBigene Agency. . Today, Mr. Reagan is to meet with Presi- ? dent Carter in the Oval Office at 2 p.m. EST while his wife, .Nancy, gets a tour of the White House residence from Rosalynn Car- ter. Approved For Release 2001/03/06 : CIA-RDP91-00901R000500010002-3 AETIcL% THE WASHINGTON STAR (GREEN LINE)ji O /N PAW; Approved For Release220:110106 i7g1A-RDP91-00901R0005 STATINTL Appointment Scoreboard News reports published to- day and attributed to au- thoritative sources say that President-elect 'Wepn is ex- pected to nominate William J. Casey as director of the CIA. The Washington Star car- red similar reports in its Wednesday editions. According to the reports, including one in The Wash- ington Post, Sen. John Tower of Texas is a leading candi- date for secretary of defense. In addition to Tower, other leading contenders for high posts in the Reagan admin- istration, as reported in yes- terday's Star, are: ?Williaa E. Simon ? Treasury secretary; -William French Smith ? at- torney general; -Rep. David A. Stockman ? Energy secretary; -Caspar Weinberger ? direc- tor, Office of Management and Budget. -Among those being consid- ered for secretary of state are Gen. Alexander Haig and George P. Shultz. Approved For Release 2001/03/06 : CIA-RDP91-00901R000500010002-3 STATI NTL Approved For Release 2001/03/06 : CIA-RDP91-00901R00050 IRTICLE THE WASHINGTON POST Cral 20 November 1980 Casey Is Reporte or rectorship of By Robert G. Kaiser 'and:Michael Ceder Washington Fos; Staff Wrivars William J,...Casey,.. who .helpecl, run American e intelligence opera- tions behind'anemY. lines in World War II, is exPeCtecl io be nominated to become the. next director Of the Central Intelligence; Agency,. au- thoritatwe sources said yesterday.: President-elect -.ROnald Reagan met yesterday-with Sen. John Tow:- er (R.Tex.), a leadir4 contender for, secretary , of defense, but neither': would confirm that Tower will be - offered the. Peritagon job. = ' Sources clOge t? Tower said laSt.,, etigtht";.that ,thel.senatoesSeleCtinn 76-.9.:?.4efense'Seeretary was ? by ro means certain:- Tower reportedly .came away .:fromi. hie? meeting With Reagan without any clear signal from the president-elect, a; to his prosPects Some sources in the Reagan tran- sition operation referred to Gen. exancler M. Haig as a strong pas- sibility to become seeretary otstate, but sources close.to Haig said he had , heard , nothing to. this- effect, ? from the ?president-elect .or his aides. Haig has had no converse-, ? tions about the job with anyone rem,. resenting. Reagan, these , sources, A.Ilocating the joh.of.secretarY of state now appears .-toabe the key, to Reagan's, ,c4bittet-Ipuilding .f. forts. l'here has been no s'nortage of candidates. CaSey; who new is ex- pected to go to. the, ciA,:icvant9t1? infnrmedieurces- Saida .Haig,.fornaer- Office..of Manatienient nd Bncleet irector. Caspar Wein-o berger, Milner :Treasury '!secretary Siiriort,' former Texas gov- Ernor John B. Connally .and forrneta secretary of state Henry A. Kissinger. George P. Shultz, former Labor and Treasury secretaryenas been mentioned ? persistently-ails, the leading candidate for secretary of state, but he repOrtedly1 has said he,,doigilok want the job and. ? that hirPoeition-on the Middle E:asta as vice chairman, of the Bechtel doip:;'- a multipational, constzuction, rnight-pRORKIVARk179, 1101? :MI hae- taken- Pi-isitiOn- than Reagan did during the campaign.) Sources in the Reagan camp said yes- terclay that Shultz's statements should be taken seriously, though the sources did not rule him out as the nominee. Sinion apparently has been elimi-: nated by a_ decision ? all but fipal,. sources say nominate him for sec -7 retary of the Treasury again. Kissinger is.fiercely opposed by conservative pol- iticians and groups that were important -Reagan hackers in the CamPaign...Con.:::, nally, according to sources close to him, has apparently been ruled out as a member of the Reagan Cabinet, in part because of concern that he was tainted by his 1975 indictment on charges of taking an illegal gratuity in connection with the raising of milk price supports in the Nixon administration. -Connally was aequitted. ' Weinberger, long a Reagan confidant and a member of Reagan's gubernaT tonal administration in Sacramento, still may be in the running . for the State Department, though Reagan transition ? team sources say it. is more likely that, he will return to the OlVIB. However, informed sources say that Weinberger does not want to go back. to OMB; he could end up as a counselor to the president with Cabinet rank or in some other, role putting him close to Reagan. Rep. David Stockman (R. Mich.) is an active candidate for the ONIB job, and is supported by many of- Reagan's most ardent conservative supporters. Stockman is also considered a possible secretary of energy, though he haS told Reagan transition . officials that he would not take that post. Reagan will meet soon, perhaps this Weekend, wits the informal advisers known as his "kitchen cabinet" who have been weighing. possible :Cabinet nominations. This group already has sent the president-elect a list of several possible nominees for, each Cabinet post, with a tally of the votes each per- son on the list received from members of the "kitchen cabinet." ? ? The Reagan camp has promised tO' announce Cabinet nominees by the first ? week of,December.,,4 N. &aeries. Cloie: to-the Reagan...Camp said yesterday. that Williarn' French Smith, the president-elect's personal .th di other source saiclfhis prediction would; be_ premature? ana perhapiacCtira te. j e S us' On Capitol Hill, -membeN of Con- , gess interested in the Interior Depart-4 inent said they had heard three names mentioned as possible secretaries: Rep. Manuel Lujan Jr. (R-N.M.), Rep. John J. Rhodes (R-Ariz.) and Gov. Jay Ham- mond of Alaska. Lujan said last night that he knew his name was beim,' men-: tioned for the jobebut said he had not heard anything from anyone connected with Reagan: Casey, slated to take over the CIA, served under Presidents Nixon and Ford as chairinan- of the Securities and Exchange Commission, undersecretary -of state for economic affairs and Pres- ' ident of the Export-Import Bank. Kiss inger forced him- out of the State Dela-, tartment job:.:? Now 67, Casey worked for the Office.' of Strategic Services (OSS) ? the. CIA's organizational ancestor during ;- World War H. He served in London. as chief of secret intelligence in Europe, with direct responsibility for. penetrat- ing Nazi Germany with secret agents in the waning days of the war.. Casey took overall command of the Reagan campaign in February after the candidate fired campaign manager John Sears the day of the New Hamp- shire :. primary..., A senior. Reagan aide disclosed yes- , terclay that the new administration will retain William Webster as FBI director. ; Webster was appointed to his 10-year term by President Carter and career. FBI officials- reportedly. were anxious - that he not be removed by the new ad- ministration. ' The possibility that Tower might be- come secretary of defense has caused'l concern among some Texas Republi- cans, sources said yesterday, because of fears that it would he difficult to keep his Senate seat in the Republican column in the special election that would be required within 90 days of his resignation. ' Reports that Gov. William Clements would appoint Connally to Tower's seat were denied yesterday by sources close I to the governor and by Connally's ? friends. Clements was reported ai angry 'at the suggestion that he would- par- ticipate in a prearranged deal to put -,4 01R000500010002-3 G0111,011) Approved For Release 2001/03/06 : CIA-RDP91-00901R0005000 41.11rTICIa,r iP I'.1013. Reagan Nears Decision on Cabinet Posts ? By Jeremiah O'Leary ? Washington SW WI Writer President-elect Reagan is believed. to be close to making final decisions. on four key-Cabinet positions by naming Sen. John Tower secretary:. of defense, William E: Simon Trea-,:.- sury secretary; -John French Smith - ' attorney?general and William Casey. ? director of the: 4- ? ---SInfrararrITritragan transition team also said retired Gen. Alex- -. ander-Haig is-fading -as a possibler, choice for secretary of state and that George P. Shultz is now considered' to-be the fronvrtinner, there.; . addition,:Reagan sources said;.: Rep. David A..Stockman, :rising rapidly-is a-candidate for en;', ergy secretary and that Caspar Wein- berger 'probably?carrhave important post of: director of : the Office of Management and Budget; if he wants it. ? Tower is the conservative ? lican from Texas who. is slated to take over the Senate Armed Services Committee in the new Congress. Si?, . mon served as .Treasury. secretary.; under President Nixon. Smith is Rea- - gan's personal, counsel, and. Casey,., was his campaign director. ? Reagan has received the recom--. -mendations. of.. the. Transition..-?Ap-?,- - pointments-Committee, -headed- by.- Smith. Although he-will have little, time 10 study the choices of two or three names for each Cabinet posi-: ? tion. during his: brief Washington visit, .Reagan. is-expected to make- the final decisions when,. he return.s? xto Californiabn Friday. Official an- nouncements are not 'expected anal ? after Thanksgiving, but people-in key positions at transition headquar-1, ters here believe some of the nomR ?? nations -have been. settled for some', tune - it Retnemberi:nothing is final until - the governor. ?makes his tchoice,7-,, warned one transition official. But several officials close to the decision-making process believe the' Treasury, defense, justice and CIA:, ? .E.)sts are fixed in concrete. - Simon. and7-Smith- are consensus Candidates because Reagan 'Mates . do nothelieve anyone else.: was seriously considered for Trea7.. sury and justice. In both cases, there,. are cither_nagstort;_thlists:Eiven to Reaganibutrio. ohe-c4. be. foal' tIOCIRO .; chance. Simon;.whnserved on Rea- gan's Economia:Coordinating Corni% 'an WASHINGTON STAR (GREEN LINE) 19 , NOVEMBEH 1980 only 'other person under consider- ation tor tne LL-Y post is said to tie , 1 a fofmer deputy-attorneyTe-r-al ' anif-ambassador to Y ugoslavia, Launrree Silberman. '1 he Clictrarig- -tiOriteam is headed by Saberma_n, -a man Who is-TcTitlfright to thepoint ',, --otabraStverieSS7SOrrie lie 'Ie Ye fliie for the aII:im ortant post o ep y Err7tor of CIA under Casey. - There were some rumors yester- day that Sen.. Henry Jackson, D.; Wash., might be in the race for secretary of state, mainly because his one-time aide Richard Perle ap- Ireared suddenly to be on the transi- tion teams for both defense and state. ater, officials explained that there were undisclosed reasons for ' moving Perle from the defense team ? to the state team and that there was no significance-to-the shift in terms _ of Jackson.:., ?.' - - .- :.?-? -- - - -.- Shultz reportedly had - been- the subject of some controversy in the Reagan camp because he does not ' :see eye-to-eye- with Reagan's top ...echelon on Middle East policy. The? ? ?? Reagan insiders are said to be - 7 pressing for a tilt toward Israel :. ? while Shultz is considered to be clos- , .. :er to the Carter position of extend- ing the hand of friendship 'almost -*equally to- the Arabs and Israelis. . ? Former NATO commander Haig? ? who was White House chief of staff , ' under Nixon in the las/ days before ' ? Nixon resigned, has made it clear that he is willing and eager but his ? star is not believed to be in the ? ascendancy. - There have been recurring re- ports that Rep. Stockman was slated for the OMB job in the White House, but Reagan sources said the 34-year- old Texas-born Stockman is being. ? viewed as a natural for the Depart- ment of Energy. This is one of the ,departments Reagan said he intend- ed to abolish as part of his campaign. promise to cut down the cost of goy- ,? ernment and the weight of govern-1 r- mental controls. _ : -.-:-... : ? But there are many functions of '-- the Energy Department that would - have to continue under another ban- ?'_ner and Stockman has been ex:: tremely impressive to. Reagan's 7 inner circle. '?? : 4 ..? ,.'.Stockman .is a Michigan State ? graduate who went on to Harvard . Divinity School and the Harvard In- stitute of Politics before becoming ' ? an aide to Rep. John Anderson. He- . , is-al former executive: director of - ? House Republican Conference ' :and has served in the House since '? his election in I976. : ' - ',.- ?.;,:?.--? ?- ? --Weinberger, a 'veteran economist ? ? and businessman who is associated with Shultz in the Bechtel Corp__ Smith is regarded as not ambitious for a Washington job, even the post of attorney ? general, but he is as trusted and close to Reagan as Charles Kirbo has been to President Carter and can be expected to accept any job the president-elect asks hint to take. ? . -.4?-- ? ? There are .mixed sentiments at transition headquarters about the decision that might take Tower out ? of the Senate, where he would be. ? chairman. of the Armed. Services Committee and put him at the top: of the Pentagon.. Some Reaganites- . are enthusiastic about the purported, strategy-regarding Tower, a former Navy- enlisted man with a long in- terest in defense and national secu-- rity ,affairs ? Those who,,View,:Tower dimly asi secretary of defense do so because they say Reagan has no need to ce- ment his support for increasing the ? nation's defense capability with the ...Senate committee. Even Democratic .Chairman John Stennis of Miss's:. ? -'sippi, who loses his job to the rank- ing Republican on Jan. 20, is on the ? same wavelength as Reagan when it comes to buttressing national de- , ? fense. There?are some who are ex- ? pressing concern that aging Sen... - Barry Goldwater, R-Ariz., who is in line for the chairmanship, might be an occasional problem for the Rea- gan administration. But they say ? they also see a chance that the chair- manship might- devolve upon. Sen. John Warner, R-Va., art ex-Marine, a good friend of the president-elect ? and a former secretary of the navy:: ? The speculation is that the Tower 'deal was worked out last weekend at Pacific when Gov, ham Clements' of Texas visited Rea- gan there. Reportedly, the game plan would be-for Tower to resign in order to accept the nomination .to - the Defense Department. ? - Thereupon, Clements would ap---. ? point former Gov. John B. Connally - to Tower's seat in some certainty:. that the erstwhile presidential can- ? didate ,would. surely ? win a special election fora six-year term within the year against any Democrat ,The report that Tower was headed' -for the Pentagon came first .from? ? columnists Rowland Evans and Rob- ert. Novak, along with -the report that Connally was slated for Tower's. ? seat. In Philadelphia at a conference of GOP governors, Clements said," "That's the nuttiest thing I've ever jierl? ? - : ? But a -congressional sonrie--told.. :.theAssociated,Press he wouldvouch: 'for. the whole' scenario. . was an enthusiastic as 7(11"The Cr2rdiiffrig World ar ll, has ?always been the front-runner to suc- - ()MOOG 01000241811t t e post ut can be expected- to take on thejob if Reagan asks him to do so STATI NTL Approved For Release 2001/03/06 : CIA-RDP91-00901R0 A.F,T I C f_jf. AFI'L;sh.eal THE CHRISTIAN SCIENCE MONITOR ON PAGg. 18 November 1980 Turnet to be replaced at CIA, Reagan sifting five names Leading contenders: campaign chief. Casey; ex-ambassador Silberman?: , By Stephen Webbe ? Staff correspondent of The Christian Science Monitor :-- - ? . " Washington Convinced -that the .nation's intelligence capability has sputtered in the -last four years,:President-eleet Reagan will fire CIA director Stansfield Turner and replace him with one of five men; according to a well-placed source here._ The contenders for the nation's No. 1 intelligence hot seat, according to a well-placed source, are: David Abshire, direc- tor of the Center .for Strategic and International Studies at Georgetown University in Washington; Ray Clime. executive director for World power studies at the Georgetown- Center; Laurence Silbertnan,;a;former ambassador to Yugoslavia; Richard Pipes,a Harvard professor of Russian -history; and William Casey; chairman of the transition executive commit- tee in the office of the President-elect. Those' reached by, the Monitor declined to Comment on ' their possible selection for the job- that Admiral :Turner has held since 1977. ? , . - e The front-runners, this source asserts, are Dr. Abshire, Mr. Casey, and Mr. Silberman, while Professor Pipes is "a marginal candidate.".-c Some-- intelligence community ' observers. regard Silberman as the leading contender for the CIA directorship. A lawyer and hanker, he served as deputy attorney general from 1974 to 1975 and as ambassador th Yugoslavia from 1975 to 1977. He is currently coordinating the transition at the Cen- tral Intelligence Agency and already has visited the agency. . Other observers believe that Casey is equally likely to be qypointed to the post. A lawyer who fashioned Mt. Reagan's succes.sful Campaign, he served as chief of intelligence per ations in London for the Office of Strategic Services (OSS) in World War IL' He has had no intelligence experience since his days with the OSS, the forerunner of the CIA. But one source says he has maintained "extremely' close contact' with US intelligence circles; Casey was appointed to head the Securi- ties and Exchange Commission in 1971 and two year later became undersecretaryof state for economic affairs.' ' Although one analyst claims Abshire "is very well quali- fied on the scholarly' end of inte1ligence,7,116.says he would nonetheless he.f*very_surprised.if he were to come in first.", This view seems to be prevalent among intelligence commu- nity observers. One such observer went so far as to charac- terize the professor's selection to the CIA post as "out of the question" and "wholly unrealistic."'-:' ?; - Abshire, who esdirector of foreign policy transition for the incoming admitust-ation, is co-editor of :Washington Quar- terly and a formes assistant secretary of state for congres- sional That Pipes is being considered for the CIA post surprises some, but it is pointed out that in 1976 he headed the so-callecLi "ft tearn"'of the Foreign Intelligence Advisory Board, which produced a more somber estimate of Soviet strateg aeriC" iik-RDP91-00901R000500010002-3 tivesANMPOurdPVIgkstieffele o be k . ? - ? Although accused of being alarinist, bard-liners Pipes and4 associates declared that the Soviet Union was not just striv- ing for strategic parity with the United States, but also for nuclear superiority: Pipes; author:of:Revolutionary Rus- sia' and "Soviet Strategy in Europe,'.7 is a former director of I Harvard's Russian Reseal". ch Center. e'T.I1 deliberating on a new CIA chief, Re:agart and his advis- ers are expected to give earnest consideration to Dr. Cline,, who also spent his war years with theOSS. An author and lecturer, Cline served as deputy director for intelligence-at the CIA from 1962 to 1966 and later as the director of the Bureau - of Intelligence :and .":.Research.,.at the- State Department - ; ;t. - ? He is thought to have been somewhatmiffed when the CIA directorship went to Richard Helms in 1966. His contacts with and interest in ? Taiwan,. which date from his days. as director of the US Naval.Auxiliary Communications Center Taipei, might not sit well with the government of the Peo- ple's_Republic of China in Peking, some feel. Reagan, how- ever; is not expected to defer to the mainland Chinese in the selection of a CIA boss. : '? .; Although Turner reportedly wanted to stay at the CIA, . there apparently never was much chance that he would be able to extend his tenure there. . . "He came in at a bad time in the history of intelligence," Says one source. "But instead of improving it, he has let it, languish. He has left us with an insufficient capability in in- telligence, and I think that's a very widespread feeling. It certainly is in the agency.'" .ThisSOurce adds that, to a degree, Turner enOneerecl his 'own downfall when he fired or retired. 'practically all the experienced people in the clandestine side of CIA." _ Adds another source: `Turner is an extremely smart guy, , but his problem was that he had developed his own technique of institutional reform which worked brilliantly at the Naval War College, where he fired all the dead wood. The agency had already been through all its traumas and did not need - surgery.It needed tender; loving care...Itwas a tragic thing,: in ic objec- a . _ Approved For Re I eas ellgoriONNOL.-1:pARROW64--rd Mr' ROO By LAURENCE McQUILLAN . -; Washington. (News 'Bureau)--T-Presi- dent-elect Reagan plans to inform CIA ;Director Stansfield Turner next week 'that he will nominate someone else to. idirect the nation's intelligence-gather-, ang operations, sources close to the Reagan transition team said today.;: ? ! Adrre,Turner was President Carter's second choice choice for the CIA post four iyears ago, after Theodore Sorensen, a 'former speechwriter for.John F. Ken- nedy, asked that his name be withdrawn ;from Senate consideration. ? ; Sorensen withdrew amid right-wing [anger over alleged "security viola- ,: e ? itions" in his 1965 book on Presideni, ?',Kennedy's years inthe White House. Among the possible candidates to .replace Turner and his deputy, former' 'Ambassador Frank Carlucci, are Vice Adm. Bobby. R. Inmaa, who now heads.. , ,the National Security Agency; William ;Hyland, former deputy director of the !National Security Council and former head of the State Department's Bureau of Intelligence and Research during :the Kissinger years, and William .1. - Casey, Reagan's campaign chief who. was a top official of the' old Office of 'Strategic Services during World War ? IL ? ? _I.:, .; CASEY..., HOWEVER, has told friends he does not want the CIA post ? ? According to CIA sources, Turner ;has no plans to submit his resignation. :There were reports that he planned a low-key but intensive effort to save his ijob when the President-elect Comes to .Washington next week.' - ? ? -? ? ? ; '-? - I " Unlike -a new President'0,.. cabinet I ,choices, there has been no clear-cu 'policy on whether the tenure of a CIA 'director coincides with that of the President who names him. 11rever, the director does serve "at the pleasure of the President After Carter won the 1976 election, .there was some talk about keeping on ,then-CIA Director George Bush, novi I 'Reagan'S vice -president-elect,-- but it .was thought to be merely a gesture of ? courtesy toward Bush. i?"?- - ? ? As for Turner, "there is no vir ay he'll. Ap p rovOitrai: keliad-Wq!/01#0C 4 ... r _ Stansfield Turner?may be replaced _ THE PRESIDENT-ELECT reported- ' ly will deliver the verbal ax next week .1 when he visits CIA headquarters in: . Langley, Va., for briefings. Turner'sj only hope of saving his job, in the view,1 of most observers, is to try to convince- Reagan Abet the job should be above politics and the director should not be ? replaced with every change of administ- ? , I ration: a ? : . ? - ?-? -_ - ? i . Turner, a Naval Academy classmate. I of Carter, has been lobbying privately for the past few weeks to keep the job_ However, he has little support froni !two important constituencies?the Pen- tagon, where his policies have some-: times drawn wrath and veteran CIA , . ; :staff .: In other developments, the Reagan: transition headquarters here today re-. 'leased the President-elect's schedule for next week----when he makes his first yip to the capital since winning the ;election. . , - _ , , I ? HE FLIES FROM Los Angeles Mon.: day night and the next day meets with, GOP and -Democratic. congressional' leaders. Reagan and his wife, Nancy:: meet with President Carter and his Wife, Rosalynn, on Thursday - at the White House. - . : ? ? .. - --...- -.:- , - 1 ' Reagan's first CIA briefing v,%ill be .on Wednesday, with a follow-up the' IntOr9ffocOrtRtfoatlee ? . i ' . . e - P 7 . -- - ? ? . - , . : .-I-:71. '?.! .? ...".t...11-1, ::..t:t.-,:iA?n-r.: :...:'; 'ft.T--- I :......? 4. ....,--,--_: W 02-3 Ff 1\17 I e fs",t? P91-00901R NJIN 47r ',.^)1LLARD AVENUE, CI-e/Y CHASE, MARYLAND 20013 656gykr INTL FOR PIROGRANI DATE SUBJECT PUBLIC AFFAIRS STAFF Independent Network News November 14, 1980 11:30 PM STAIION CITY Quotes Former Directors of the CIA WDCA TV Washington, DC BILL JORGENSEN: Now the business of building a new Administration brings the Republican economic brain trust to Los Angeles this weekend. These 14 experts will wrestle with details of the Reagan economic plan, deciding how to make it work. Reagan says he'll be in Washington for two days next week, and the goal is building bridges with Congress and visiting his new home which, of course, is the White House. STEVE BOSH: Bill, in those meetings this weekend, the Central Intelligence Agency will be a priority discussion. The recent efforts to tighten congressional controls on the CIA will not be looked upon favorably by the Senate Intelligence Commit- tee's new Chairman, Senator Barry Coldwater. And former directors are saying the very same thing, as we hear in this report from Ford Rowan. FORD ROWAN: Several former high officials in the Central Intelligence Agency predict that covert operations will escalate under President Reagan. Covert actions were curtailed several years ago after it was disclosed that the CIA had plotted assassinations, experimented with drugs and spied on Americans. Sources say that under President Carter's CIA Director, Stansfield Turner, the number of covert missions has been modest. But William Casey, a top Reagan adviser, is expected to push for revitalizing the CIA. Former CIA Director William Colby said there will not be a recurrence of abuses but he expects covert activities will increase. OFFICES APAratiti Ear Rektasea200 1 LOSe EC 1A-RDP94)-009111R00050 10010248IPALcmEs Material suppSied by Pado IV Reports. Inc. may be used for be and reference burPoses onV If may not be rebrOduced. sOId or putAicly demonstrated os ekhirNted STATINT APP.r9Yegi-Far Release 2001/03/06r1gA3IRRElkly-W1 R00050 ON FA( ,A 11 November 1980 . , eagan visers ?":7 7 ersee ransi, =- - By. Michael- 'Ceder ....: .... : Wash.Ingsoa P.o.3i Stiff l'Airittc. : iresident-elect Ronald- Reagan's-ad-: \risers: have divided the govern men t in to' five. broad CategOiii-C'aridl'aier'abOUt. to? name coordinators-tO otrerSee the trans-7 fer: :of- power - itr- each, aides Said YeS-.. ,terday. These coordinators will brOvide ilasion between the Reagan hierEuthy ana"small working team's' to .be placed in -COining days in all department.; and agencies in the' eieci:itive' branch:: .7 .. -- Sources' in theRiegari-eeirfOsaFtlia0 EliiabethDole; a-former Federal?Tracte,.., _ .___..... _ , commissioner and the.'AVife?-di-Sen: BOW _Dole.I(R-Kan.),..,wi,1 be:coo. rdinatorffon- I "hurnan resources. Loren Smith, an a...e.,:, ' sociate professor of 'constitUtional - at Widner University and the chiefn - house counsel of the Reagan campaign (? comMittee, will coordinate teams work in on federal legai and regulatory agen; . Richard-,-M: Fairbanks,. a former ae, sociate director of the domestic council in the Nixon White House, will be co; ordinatdr-for- reSofirces' an'd develop-. _ rneht, an area that encompasses the de-' .partmenta of Energy, Agriculture:and Interior. Economic affairs, both domes; tic and international, 'will' be coordi- nated by Stanton D. Anderson; awash ington _lawyer who-. is --keldeputy ., trr , ,Reagan political; aide; William:' E. Tim- , . mons. David -Abshire, former --assistant ? secretary of state during the Nixon ad--.. .. ministration, will ',coordinate efforts' df -threeteama in the national seeurity ar- ea at the departments' of Stateand De- fense and ' then, Central'n Intelligence Ageiiik-''''fi? '..----..7.4,'", ---.1:.' '''.---.7-'-::?'!;.t.''''':;-,..';'..:: '? Isl'ho ' a nuiriber of?the.-"naptainer of Ihe'special'I,vOrkfrtgl:teainsi that will .actUally , move into thee departments have not -yet been natned,`sources say , that two key appointments.' in the na-4 .tional 'security at ea are firm. - William Van Cleave, a fornier Pen-, lag,on official Who- Served 'ea Reagan's senior defense adviser during the cam-. ppipnnwill head the team moving 'into the; Pentagon. ? . Robert G, Neu-Mann, former ambas; `seder 'Afghanistan -and Jerdan and curientlY at'-Geor,getoWn- University's Center for Strategic .and International '.Studies,' will head the State Depart-: - rnent ? working team... - ,. Though no captain has been named. for the CIA team, sources say Reagan campaign director, William J. Casey is certain to play a major role in the work- Mg of this group. Casey, who was a Eu- ropea.n intelligence specialist in the World War II Office- of Strategic . .vIces, is- also said to be a "reading pos- sibility for CIA director in the new ad- ministration Also in the national-Security picture asif,,4ii:)e.slit, is Richard V. Allen. Nu-, ? rnerofis Reagan advisers say they be-, lievejliat the longtime senior foreign. ' policy adviser to the president-elect will: be narned to the key post-of .national security adviser inthe White House; al- -though no final decision has been made.: That post is currently held by Zbig-nieW .Brzezinski and was formerly held by Henry A. -ICissingef: ? : !Allen reSignect:ini the final days of ? the camiiaignafter -a newspaper article suggested ,that he :had used past gov-' ernm'ent positions for private gain. But Reagan: said: reeently 'that those alle- gations 'had' been ,lonked into; by his ovarstaff and other newspapers, .%ntl: nci.evidence .of . wrongdoing had been fotnidnAt- the same.time, Reagan gave; ? a-stiong,.-.yOte- of -confidence to Allen. -Sources- saY-,-that-the official public Rife-- coordinating: .weelc.' These ?Minis ',itress., that; the five : aPpoint-r- : qnean' that those- Viduals- will -necessaxily wind .up with /a ? Ul'AteR ? _ Approved For Releas Lai The role of these coOrdinators, as ex- plained by Reagan's aides, will basically be to serve as a funnel, through which, detailed information developed by the working teams will be passed on to a newly created interim office of execu- tive branch management. That office is to be'run by :Timmons, who is also deputy director-of the top-level tran- sition team named by Reagan on Nov. 6, and it will play the central role in managing the changing -of the guard_ In terms of the-practical effect on the bureaucracy, however, the keY role is apt to ,be played by the small working teams- that go into' each department. Aside from a team captain, sources say, each will-have specialists on budgetary affairs, policy, personnel! and congres- sional relations. ? These teams will not be in a position to implement any changes before the new administration comes into office nor are they meant to develop candi- dates for-top-level jobs in the new ad- 'ministration. Rather, officials say, they will identify positions that-need to be filled and perhaps identify people- who need to he moved out of existing job; because of policy, differences. - These learns- will- look at the bu-: reaucratic structure to see what, if any- thing, can and should be changed. They are supposed to find out what decisions., the Carter administration will be mak- ing in itslinal weeks and where variotis ,Sgencies are in the preparation of the next federal budget for fiscal 1982. Ultimately, officials.'SaY, these teams -will be- drafting: position- papers that are meant to define issues and problems that the incoming administration may soon be confronted with, to outline the ? principal...policies that have been fol-7. lowed in the departments and to lay ;out options for future decisions. The idea, if it works properly, is to allow., the -new administration, to :"hit the :ground running,":ys Reagan officials de- 'scribeiL..t 00901R000500010002-3 Approved For Release 2001/03/06 : CIA-RDP91-009 LONDON IT1TLY -2:LEG2APH 10 November 1980 alf,AGAN'Ai D T E RUSSIANS-. By ROBERT MOSS President Carter would almost certainly call in Mr Reagan THE Reagan landslide in the United States has posed an acute dilemma for the Soviet leadership: how far shouldthey go to take advantage of the lame-duck period of the Carter Administration be- fore the new President is inaugurated on Jan. 20. Arkadiy Shevehenko, the lead- ing Soviet defector, and a former senior official at the United Nations with whom I spent part of election night in Washington, makes one ? disturbing prediction. He believes that the Russians, no longer inhibited by the American elections, are likely to invade Poland in the near future. . By challenging the Communist party's monopoly control of social and political institit-. tions, Poland's independent trade union . leaders have posed a- threat to the ruling ; system that is perceived in ; Moscow as a challenge to the I internal security of the en- tire Soviet bloc. ? -: Mr- Sheychenko's analysis; is -supported by that of senior officials in . France and Britain. Yet thea price of a Soviet in- vasion of Poland is likely to be vastly greater than that of intervention in Czecho- slovakia in 1988. Though Mr Kania, the present Polish leader and a former I State security officer who isi said by Western intelligence! experts ? "to ? have worked' elirsely with the K GB. would _ probably be prepared to pro- - vide a pseudo-legal pretext. for a Soviet invasion by re- questing "fraternal assist- .ance," the Polish people?as they have shown in the. past ?would mount a heroic re- sistance. Sweeping sanctions International protest would range from sympathy Masses in the Vatican and mass de- monstrations aa by Polish. Americans in Chicago to attempts to impose more sweeping economic sanctions against the Soviet Onion than have been applied in the past. Approved For in order to present a united ? face to the Rusaians. Worst of all, from the Soviet I viewpoint, a move into I Poland in the coming months ' would be widely felt to justify the demands by Mrs-Reagan and: his advisers for.;urg,ent -rearmament, broadening still further the vast constituency he is now seen to command in America and encouraging the new Gongressin which athie Senate will heeuncler Re- publican control -.7 to vote dramatic increases in the de- fence budget, ... ; . . . _ These' are all.. reasons -?wliy some members of the Soviet Politburo may still hope that events ia Poland Call be con- tained by methods short of armed occupation until after Jan 20. Part of that calculation may be that an invasion of Poland, or a similarly provocative move, after the Reagan- inau- guration might serve to de- monstrate that, despite the campaign talk, the new Presi- dent would be no more cap- able than the previous one of Vetoing Soviet actions.._; For the moment, the Russians are seeking to take the meas- If there should be a chance for ure of Mr Reagan's e.ntotin a separate deal with Cuba. it age as much as possible. As may well be that (as in the early.: as last spring, senior case of Nixon and China) a officials at, the Soviet Em- conservative American ad- ministration will be in a bet- ter position than a liberal on- to exploit it though secret bilateral contacts. American acirninist provide renewed 5 exile groups seekin throw of the Cast and may consider an economic block Informed sources i community in Mi.? that Dr Castro is circumvent this signalling to the Re that he may be loosen his ties t. arid reduce his st -guerrilla?. groups in cemtai America in return for the opening upeof normal diplo- matic and economic relations. The extent to which Dc Castro is able to make any indepen- dent overture to the Reagan administration, given his country's economic bondage to the Ruaaians, the role of -Soviet advisers (and K GB agents) in Havana, and the presence on his island of a Soviet "combat brigade" that may be used for internal security purposes is debat- able. ? - Stick and carrot lint he will be offering Mr Reagan a Stick as well as a carrot: the threat that the dumping of refugees of dubious backgrounds into South Florida this year could be repeated and that the con- tacts that Cuba has long nourished with militant groups among the black and Hispanic minorities in- the United States and Puerto Rico could be used to trigger race riots. STATI NTL baesy were cultivating some of Mr Reagan's top foreign policy aides:. Now the veteran ambassador. Anatoli Dobrynin, and Mr .0n a broader front, the maa-? Pavel Bessmartmlt, his 111in- agement of America's deal- ister-Courtsellor, the high- ings with MOSCOW will now ranking KGB officer respon- be moved from a group of, sible "asfor opening " back channels' to -the American leadership; wilit, have their work' cut out. -Cubans' move - The Cubans, significantly, are also putting out lines to the Reagan camp. President Castro is well aware that the period when he was Leading contenders for the allowed almost a free- hand critical Jobs of .1\ational l o.:7 and to make revolutionary forays ' Security Counsen into Central America and Director of Centrar-Tntelli- _ ' Africa is over. gence are (respectively): The tough talk coining front ..Prof. Richard Pipes, one of Mr Reagan's Latin American America s eading Soyietolo- gists arid a key ;ince on the adviaers, notably Prof. James ? so-called "Team-B t ut Theberge and Dr Roger RVetr ;0011081con?16h?ClitIgrpti 0500010002-3 s ou e icen o am" est so o e- iiay Cuba must have prompted ? spending aril?c-apabilitie3 in fears in Havana that the new 1976 TrurC.F13-il1Gsey, head advisers (some of them asaa- dated with the radical Wash- ington think-tank. the Insti- tute for Policy Studies) who were usually wilting to be- lieve the best about the Soviet leadership to a new ;team of experts who have been notably more acrate in their predictions. Another candidiate tor the post; of Security Advisor is Richard' Senate's backing ? The consensus airtong Intel professionals in --Washington is that the CI A1 can only be successfully re-? ; organised?at .las-with the' support of a sympathetici Senate. One of the many minefie.lcIal - ahead involves Soviet under) . -_cover-activities imthe United - ? States.: ?-a -- A majortSecurity. council scan- dal was brewing up in Wash- ington in the: last months before the elections, involv- ing more senior figures than I -David Barnett, the former CI A officer who was I exposed as a Soviet mole. I There-'nave_.been charges that! the Carter administration has I sought to ainhibit ? F RI in- vestigations of cases . like the possible betrayal of an American agent in Moscow by a source close to the White House. After Jan. 20. when the admini- stration will be headed by Mr Reagan and the Senate Intelligence and judiciary - committees by two promi- nent Conservatives, Senators-. Barry- Goldwater and Strom Thurmond, the extent of Soviet penetration of Ameri- can institutions is:likely to be ? subjected to exhauStive review. ? Approved For Reitaga,20?410W/061 : C/1/1A6W1l-60901R0' 0 14,4 /lac) STATINTL . 7 Confidential agent- . . PRESIDENT CARTER'S -"- dwindling. fortunes-have given his Republican renewed confidence.. . , Ronald Reagan last Week felt euphoric enough to allow his campaign manager, William Casey, to slip away to Lonar'for a. few days. : , Casey,, once chief of Rae!. tligence ..for..7the Office'- i of '.Strategio Services in Europe;: - has been.attending an Anglo?, American conference on the history of the. Second World War, held . at the Imperial. . .1War Museum.. ? _ Approved For Release 2001/03/06 : CIA-RDP91-00901R000500010002-3 WASHINGTON POST STATI NTL Approved For Release 20011-/bIlbt1 IA-RDP91-00901R000 'Reagan 's New Gam Lou Cannon , we.aaestea post, Staff Writer CIIICAGO,M, arch 1?Ther hav,e"In t h e eampaicfn been telling-It:4ms, about Willie/11'j. y 'Casey he,hind his back (luring the first management business 'Of liii,?',managership of the ? Itagan presidential canmaign. , ,Caiest,':?raisrernemberecl:, the . name of the'44inpaign finance three- tor Then, he -misplaced the date of 'a key primary election. e- , ? ?Finallk,' he canceled a Series of air- ane?eharteri, -for `Reagan without ' ganite. the press, about it,, leaving ' three network crews in Atlanta while , h as wc Reagan -campaigned triumphantly ,in? South Carolina and Florida. ? But three 'weeks after Reagan "die.: rnatically ousted campaign director Vjohn P: Sears during their mutual ma nient of 'tritimph 'in \ the New Hemp - shire primary; Casey is very much in charge of Ronald Reagan's campaign. The ,New York attorney and 'one- time Securities and Exchange Com- dence of, the Californian who is first mission . chairman has, ,meshed well among. equals in the Reagan circle? with the entourage, -of Californians ' surrounding Reagan, as New'York At.. 'fellow. _ lawyer Edwin Meese 111. torney John N. Mitchell once did with Meese, who didn't see eye-to-eye with the Californians' itround Richard Sears, says that Casey is "intelligent, Nixon?, ext. exceptionally decisive and easy to get Presiding over- th flrLng of 160 ' glIong with." ,. 'Reagan aides, and the nonpayment a ,,-00iers have used other words about others, Casey has stemmed the fMan,- . Casey. During his -Years as a success: ? cial hemorrhaging that threatened to ful venture capitalist and book pub- drive the former California governor, Usher. Casey was the target of ayari.- "canipaign into near-bankruptcy ety of lawsuits, including a successful way through the primaries. In so for plagiarism. Sen. Edward, M., ing, Casey has won the solid, ;Kennedy once quipped that Casetwas?-? fled support of,his?candidate. ?..th"second most outrageousappoint: In the campaign rdaagement '"nieht,is SEC chairman:P-1%e first be-.?,, . ness, you have a .constituency of one," , ing the senator's father. Joseph Ken- says a knowledgeable Reaganite. "And nedy. Casey has won the confidence of Gov. ..At 67, Casey is only ' two- Itears q,Reagan." ' , younger than his candidate and he Casey also has gained' the con ou have a constitu- eney of one, says a knowledgeable enee of ?van. WILLIAM J. CASEY has the wealth, legal experience and ' high-ranking connections that fre- quently impress political candidates. , But' his origins' were humble. After 'graduating " from" Fordham. Casey worked his way' through night law school at St.' John's while earning his living' as A New York_ home-relief vestieator. During World War II, Ca? sey entered the Office of Strategic Services? the predecessor to the Cen-, tral Intelligence Agency, and became chief of-secret intelligence for the Eu- ropean theate.k.. ?, ? 4 William (Wild Bill) Donovan, the head of OSS, credited Casey with overseeinethilnip"drfantintelligenVe-1 -; gathering mission during the Battle of ' Bulge and wrote him in, a letter: "You I ? took up one of the heaviest loads which an Of us had to carry at a time ; when the going was roughest, and you ? lavt,t) Approved For Release 2001/03/06 : CIA-RDP91-00901R000500010002-3 Approved For Release 2001/03/06 : CIA-RDP91-00901R000500010002-3 delivered brdliantly, forcefully and in- . good time.".................... After After the war, ,Casey became a suc- cessful capitalist and a high-priced corporate lawyer. His: gOvernment aertrice,$ in addition to the SEC; in- cluded terms as undersecretary of state for economic affairs, and presi- dent of the EXport-Import Bank. He is ,a$ prominent in support of Catholic does, any of ' this. experience -Anglify Casey tOt run a political , campaign? Casey, at least, has no oubts. In a recent interview he em- phasized that he, would be in charge ..f: .the Reagan campaign's political .,OtrategY- and traced his own $'eXperi--. Venee back t? his work' for the 1940 Re- 'presidential campaign of 4Thomag E-''Dewey, who lost the nomi- knation that Yegi to Wendell Wilikie. Certainly, Casey, ha's long displayed an: interest in3he political process. He ran: or Congress fir19-66, losing the -` Republican nomination in a Long Is- '1 and diitriet. He wa?a friend and con- fidant of the late Lebnard' B, Hall, the 'legendary Republican chairman, and 'a Member Of 'Hall's New 'York and Washington 'law firms. He ? is 'given credit' for rapid and accerato assem- ?bly ?fan Issues book for.Nixon's 1068 $. presidential campaign.' - r. $ ?_ :But for all of his nigh-level skills ' and friendships, Casey has never been a nuts.and-boltsptilitical person. Some:, "think lielneWs a laekof a9Preclation ',for$,tile, sensibilities of the campaign, foot soldiers. A few in the press sus- pea that Casey harbors the perva- *4,a4efive anistrUat 'of-media charaeteristic of Nixon but Only rarely of Reagan. or all this, there are those who say' that CaseY exact y what the trotk tied Reagan campaign needed.. ; 'We needed An outsider "to. take , charge, someone who 'could make decisions and hadn't been 'stained by all i the infighting? says one Californian who has become a Casey convert_ "Ca- "1 sey has imposed an objectivity `on this campaign that was lacking before. He has also brought with him an under- $ standing of international economic is- sues which will help to sharpen: the candidate." ' ' In the analysis of one familiar with . ? inner Workings of the Reagan opera- tion, the replacement of Sears by Ca- , sey improved the campaign's manage- ment while diffusing strategic deci- sions. Political strategy is now largely a state-to-state affair in which heavy reliance is placed on 'field representa- tives recruited by Sears and deposed political 'director Charles Black?such "operatives as Roger Stone in New . York and Connecticut, Gerald Carmen in Massachusetts and New 'Hampshire, Donald Totten in 'Illinois and Michi- gan and Lee Atwater in South Caro- _ ',The information, and 7recommenda. tions the field operatives provide are funneled :into a strategy- team which includes _Casey, Meese, field director `Andy, Carter and pollster Richard Wirthlin. Right now. everything is going well , Y,f57 Reakan, 'but there are, inevitable ,Tmornents.p,f crisis ahead,' and t is in $1,these`Jiiiijs that .Casey'lvili be tested. "Irthei;aisdom ,of chairman Casey' i *4tinclaadesl an understanding of his own -eampaigu is going to do- just fine," 'Jack of knowledge, about politics, this ..,says one who -has long labored in the peagan , vineyards. "If not, T 'don't know:Jri 'knowledge can be lawfully dangerous , tand Bill Casey's knowledge alf. .4cal campaigns for-all his accomplish- ments, la still 9n the small side." , Approved For Release 2001/03/06 : CIA-RDP91-00901R000500010002-3 ? -7-v? STATINT Approved For Release Mdfittirp,?' A-RDP91-009 20 SEPT.11,-)n _VD ??? ne. 9. v...C0 ed ? ..z.) 0 ;sees 9 9 , The assumption, for which ---- no evidence has been found, ' ? ?).Th T-1 ? :ono.. was that same old or new cne 231; ? ,,,..1ill,ta44-LK scandal involving the S.E.C. might have been the cause of ? the resignations. Mr. Garrett was recently ac- ,cused by Forbes magazine of ;having blocked an S.E.C. in- vestigation of ? the Chicago, ,Milwaukee Corporation, for which lie formerly did legal ,Iwork. A staff investigation of ?en the matter was made, which ....;!exonerated Mr. Garrett, and which has apparently been ac- cented by some members of circles when they were first terStoion, i , ? ...; Congress as .exonerating hum . Mr. Garrett became commis- sion chairman, in an attempt qto revive the commission's good ,?-4 name, in the wake of scandals involving allegedly improper ' treatment, by the agency, of individuals and businesses who had found favor with the Nixon 6'. Administration ? .;11 Tipa iirm York Times Ray Parrett Jr. Sks.ii*:5" 74 sscciated Press 'f .William J...Casey . e." -17 t i iay EILEEN SHANAHAN SpE?cial to The New York Dimas - WASHINGTON. Sept. 19? President Ford, Mr.C4a?seY said: The resignation of Ray Garrett be was leaving because(' be, ;Jr., the chairman of Securities needed to "give some attention and Exchange Commission, and at . this time to business 'mid 1o1 William J. Casey, a former financial interests which 1,iia,Ye, .chairman - of the S.E.C. who is been away from for almost _how the head of the Export- five years." - , -Import Bank, today by -1.vere. announced ?Mr. Garrett, who had the White House. -., The fact that botit announce- ments were made on the same :day appeared to be only a ;coincidence.. -; Mr. Casey, according to asso- ciates, was bored at the Export- -Import Book, and disappointed -that it had not proved to be- a 'stepping stone to the more im- portant government jobs for which he once hoped, including the post of Secretary of Abe Army or Directcr of Central Intelligence. --; In his letter of resignation to associates some time ago that" he wante to leave the commis- sion before the end of this year, informed the President that he: felt the commission had reached _ ? a paint where his leaving would; be "less disruptive-to the corn- mission's work" than it might, have been at some other time.i The possibility that .the Gar-: rett and Casey resignations' might be, in some way, coch-i nected caused a brief Stir itv Governmental and ' -financial ? ? ...News ticker accounts of the Casey and Garrett resignations were brought into a meeting of the full Securities and Ex- change Commission this morn- ing by the S.E.C.'s public information officer and were read aloud by Mr.- Garrett. According to someone who was present, Mr. Garrett was as surprised as anyone else by the announcement of Mr. Casey's resignation. Mr. Garrett had informed his fellow commissioners earlier this week that he had formally submitted his resignation to the President and that it would be announced at the convenience of the White House. Mr. Garrett leaves behind him Iat the commission a record of ihaving brought several major lregulatory and legislative mat- - - his chairmanship, the' two-centuries-old practice of price-fixing the sales commis-. sions on stock transactions on the New York Stock 'Exchange was finally brought to an end.. Also during his term, legisla- tion was finally passed requir- ing the creation of that is called a "central markezolace" for -securities, so that investors -could find out who was effering? .the best price for their stock on. 'the- different stock -exchanges; or. even over-the-counter. Among the major issues of. re..e,ulation f the securities mar- kets that will remain fee Mr. ;Garrett's successor is whether the commission should stop the' 'New York Stock Exchange from changing. the structure of its board to restore exchange insici-: crs to a majority position. Under Mr. Garrett, the corn... mission expressed some strong doubts about the wisdom of this; iproposal, but stopped short of !saying that it would veto.- the Ichange, which the -S.E.C. has. Ithe authority to do. I Another major pending issue is the extent. to which the New 'York Stock -Exchange- should be required to soften its Rule ,394., which restricts trading.-off the exchange floor of. snacks that are listed on the exchange. The. commissionen.will also- have to decide in. the near fu- ture what it should do about irequiring more -.disclosures by ;corporations of such matters as !payoffs. to officials of foreign ,governments; what standards should be established for fore-.; casts.of company earnings and " other key indicators of the ' :health of ea ?company whose , ;stock is publicly owner; and the- rules it should impose on mu- ? ?rucipal bond trading. Approved For Release 2001/03/06 : CIA-RDP91-00901R000500010002-3 WASHINGTON POST STATINT Approved For Release 2d61RYS/C347:4CIA-RDP91-00901R00050001 -_-KEEP1NG I. Spies Who Came to Dinrier By Dorothy .,11cCardle ? John M. Shaheen, who plans to start publishing an afternoon newspaper in New York; possibly some time next summer, says The New York Press, as he calls it, will be a 520-mi1lion enter- ?. A slight greying man, Shaheen was here as toastmaster at the recent Vet- era,n of OSS dinnen at the Washirigl on Hil ort?Pre?Via's chairman of the William. J. Donovan Award Committee, . which gave the 1914 Donovan award to ? William J. Casey, president of the Ex- port-Import Bank. Shaheen is, himself, a veteran of the OSS in World War II -and so is Casey. Casey said that American and Brit- ish counter-intelligence units had the "closest thine to a decisive clandestine impact on the war in Europe. It came not from the hundreds of men and thousands of weapons parachuted into Europe, but from a handful of real German spies captured and turned around in England, and a couple of dozen imaginary spies in an imaginary network carrying out imaginary opera- . tions within England." According to Casey, "The fact is that our side operated the entire German intelligence network in England, writ- ing their reports in London and send- ing them to the Germans by radio or with letters to Madrid or Lisbon in se- cret ink or microdot. "These fictitious reports convinced the German generals and finally Adolf Hitler that the Allied landings would -? come, not from Normandy, but near Calais, 100 miles to the North." ? Casey, who, has been chairman of the Securities and Exchange Commission, and Under Secretary a State, said that the Central Intelligence Agency, which grew from the OSS, is far more than a spy operation today. "The CIA is one of the world's great ? centers of learning and scholarship, having more Ph.D.s and advanced sci- - entific degrees than you are likely to find any place else," Casey said. In his speech, Casey set the record straight about that -Wild Bill" nick- name given Donovan. "Donovan's manner was deceptively mild," said Casey, relating 'how Dono- van's soft voice and gentle manner had caused some people to change their opinion of Donovan. Said Casey: "Donovan came into town as 'Wild Bill' and left as Sweet William." Organizers of the United Negro Col- lege Fund are beginning to feel jinxed. - For the second time in; six months, the date for their benefit conflicts with another event. The one scheduled Tues- day night at $50 a couple is intended to. draw members of, Congress. But Tuesday is the same night President and Mrs. Ford have invited members of Congress to a Christmas ball at the White House. - Last summer, Niles White, area- di- rector of the fund, organized a con- gressicinal tennis match after Geora,e Bush, then chairman of the Republican National Conimittee, agreed to sponsor the fund-raiser. ? Before the match could be held, however, Richard Nixon resigned 23 President, Congress went home to campaign for re-election and Bush went off to China as head of the U.S. Liaison Mission in Peking. - This time Robert L. Strauss, chair- man of the Democratic National Com- mittee, and Mary Louise Smith, head of the Republican National Committee, have agreed to co-host the benefit. There is one optimistic: note: benefit time is set for 6:30 to 8:30 p.m. and the White House ball is not scheduled to begin until 9 p.m. Fund-raiser organiz- ers are hopeful that congressonal guests will make it a point Co step by the Capitol Hill Quality Inn (415 New ' Jersey Ave. NW) on their way, to the White House. Approved For Release 2001/03/06 : CIA-RDP91-00901R000500010002-3 Approved For Release 2001/03/06 : CIA-Wbir;g1K6b90 The Clandestine War in Europe (19421945) Remarks of William J. Casey on receipt of the William J. Donovan Award at Dinner oi Veterans of 0.S.S., December 5, 1974 Presentation Ceremony, left to right, William P. Rogers, Mrs. William I. Donovan, William J. Casey. Approved For Release 2001/03/06 : CIA-RDP91-00901R000500010002-3 Approved For Release 2001/03/06 : CIA-RDP91-00901R000500010002-3 Donovan Award Citation The Donovan Award must go to an individual ". . .with the spirit. . .and the features which characterized General Donovan's career." William J. Casey amply fits these specifications, as soldier, lawyer, author, diplo- mat, and banker. It was in World War II that the O.S.S. first knew him in action. He be- came Chief of Secret Intelligence for the European Theatre of Opera- tions where his great drive and judgment made their mark. One of his many dramatic hours was his lightning organization of the radio teams he parachuted into Germany to send back intelligence on enemy posi- tions there, from the Battle of the Bulge to Hitler's last redoubt. His many operations gained military objectives, helped to shorten the war, and saved an untold number of lives. As a public servant, he well fills the mold of William J. Donovan. Like Donovan he has been a consistent student and activist of the strategic position and problems of the United States and of the role of its intelli- gence and operating agencies as vital tools in foreign policy. On this plane he helped design the Central Intelligence Agency, served on the General Advisory Committee on Arms Control, on the Presidential Task Force on International Development, and is currently a member of the Commission on the Organization of the Government for the Conduct of Foreign Policy. Recently he has served with distinction as Chairman of the Securities and Exchange Commission, and with notable success as Under Secre- tary of State for Economic Affairs. Now, as Chairman and President of the Export-Import Bank, he is serving his government with great wis- dom. As a person, he is full of the courage that General Donovan exempli- fied and loved in others, and that Hemingway called grace under pres- sure. He has consistently shown his humanity in his work for Catholic Charities, as a Trustee of Fordham, as a Director of the International Rescue Committee, aS' a distinguished attorney, and as a friend to count- less others. Approved For Release 2001/03/06 : CIA-RDP91-00901R000500010002-3 Approved For Release 2001/03/06 : CIA-RDP91-00901R000500010002-3 The Clandestine War in Europe (1942-1945) How can I adequately express my appreciation for the William J. Donovan Award. This medal has very special meaning for me. There is the great affection and admiration which General Donovan holds in my memory. There is the example and inspiration he provided during the 15 years I was privileged to regard him as leader and friend. So many of my most cherished friendships were formed in the OSS and for all these years I have been proud of what we were able to do together. This sentiment extends in a special way to those who have come across the Atlantic for this occasion tonight and to so many others who worked with us throughout Europe. At the time, we may have known them only as numbers or code names, like Caesar for Jean-Pierre Roselli, but strong friendships and bonds have formed and flourished across the Atlantic over these 30 years. We have visited back and forth and attended each other's re- unions. We've even overcome the barriers of language, notably when the French invited us back for the 20th anniversary of their liberation. They took us all over France and everywhere we'd go, there would be an occasion and a speech. I had to respond in my fractured French and I would begin: "Nous sommes tres heureux d'etre ici." This was intended to mean, "We are very happy to be here." After a few such per- formances, Barbara Shaheen, who had studied French in school, came to me and said: "Bill, you are saying, 'Nous sommes tous heros,' "which means, "We are all herpes." I hope you won't think that's what I'm saying tonight, as I tell you for the first time the full story of OSS. For us, in the United States, it all began with a New York lawyer who saw his country facing a deadly menace and knew that it was un- prepared and uninformed. It's hard for us to realize today that there was a time in 1940 and 1941 when William J. Donovan was a one man CIA for President Roosevelt. I remember General Donovan bouncing into London, with little or no notice, brimful of new ideas, ready to approve any operation that had half a chance. He'd come tearing in from New Guinea, or wherever the last invasion had been, and go charging off to Anzio, or wherever the next landing was to be. Approved For Release 2001/03/06 : CIA-RDP91-00901R000500010002-3 Approved For Release 2001/03/06 : CIA-RDP91-00901R000500010002-3 He really loved the smell of battle but he'd look at you with his cherubic smile and twinkling blue eyes and explain that he had to be at these landings to see, first-hand, the conditions his men had to face. Donovan's manner was deceptively mild. A few years earlier, running for Governor, he had campaigned through upstate New York. The local politicians, expecting this legendary VVorld War I infantry hero to come roaring and thumping into town, were disappointed by his soft voice and his gentle manner. The saying was: "Donovan came into town as Wild Bill and left as Sweet William" What was the OSS and what was it all about? It was probably the most diverse aggregation ever assembled of scholars, scientists, bankers and foreign correspondents, tycoons, psychologists and football stars, circus managers and circus freaks, safe-crackers, lock pickers and pickpockets?some of them in this room tonight. You name them, Donovan collected them. What did he do with them? Well, he unleashed them?John Shaheen was unleashed to capture the Italian Fleet or at least an Italian Admiral, Henry Hyde to build an intelligence network in France, Mike Burke to liberate the Vosges?and these and many others delivered magnificently. Now, General Donovan unleashed this talent in a very intelligent and perceptive way. He knew he had a bunch of rank amateurs going into a very professional game. He knew the British had run an intelli- gence service for five centuries and had been working for three years to carry out Winston Churchill's dramatic order "to set Europe ablaze." So, Donovan either set up joint operations with the British as he did in sabotage and resistance support and in counter-intelligence or he set up parallel but closely related organizations and arranged for an appro- priate degree of British tutelage as he did in intelligence and propa- ganda work. , Donovan grasped the value of the clandestine side of war as no other American of his time. But, its potential was realized not by his OSS but by the combined effort of British and American clandestine services, of the Allied Governments in exile and the resistance, intelli- gence and escape organization which sprang up spontaneously all over Europe. OSS, coming into the European war three years late, would not have been able to do very much at all if the British had not taken us in as junior partners and so generously taught us all they knew. For this we are ever grateful to our colleagues in the Special Forces Club which Geoffrey Walford has so graciously come here to represent tonight. Mrs. Tronstad was close to the first and perhaps the most vital blow inside Europe. Her husband, Lief Tronstad had produced nuclear terror in England in 1942 before we ever heard of the atom bomb. Escap- ing from Norway, this Norwegiaq scientist brought intelligence which led the Combined Chiefs of Staff to believe that the secret weapon brand- Approved For Release 2001/03/06 : CIA-RDP91-00901R000500010002-3 Approved For Release 2001/03/06 : CIA-RDP91-00901R000500010002-3 ished in Hitler's speeches was an atom bomb based on heavy water. He had learned the Germans had ordered a tripling of production from a plant in central Norway which was the only source of heavy water in Europe. The Combined Chiefs set the highest priority on destroying this plant. Professor Tronstad knew that plant so intimately that he was able to design plastic explosives in a pattern which exactly fitted its critical distilling tubes and pipes. Nine tough Norwegians parachuted in, succeeded in entering the plant, applying the plastic designed by Lief Tronstad and escaping before the plastic explosive destroyed the plant. But several months later, the Germans had the plant back in operation. The Combined Chiefs then sent 155 American flying for- tresses over to bomb the plant. This massive air raid killed 21 Nor- wegian civilians and 22 Allied airmen but did only slight damage to the plant. But this was enough for the Germans to decide to move the plant and its inventory to Germany. This intelligence got back to England promptly and the Combined Chiefs ordered an air attack on the ship bringing the plant from the seaport in southern Norway across the Baltic Sea to Germany. But the plant never got that far. It had to be taken by rail to a ferryboat which would take it down Lake Tinnjo towards the Baltic seaport. Knute Haukelid, who was here with us when David Bruce received the Donovan Award, was one of the original heavy water sabotage team and had stayed behind in Norway. Singlehandedly, he entered the ferry- boat applied plastic explosive to its hull and got off before it sailed. Halfway across, the innards of the heavy water plant and some 15000 litres of heavy water went to the bottom of the lake and it's still there. This operation may have deprived Hitler of the atom bomb with all that would have meant for our civilization. General Guerisse, who was to come here from Belgium tonight but couldn't make it because of illness, organized escape lines which ultimately brought Ralph Patten and 4500 American, British and Cana- dian airmen, shot down over Europe, back to England where they could fly again. Every airman as he set out on his bombing mission knew that if he had to parachute out and could find his way to a church, a school, a convent or a farmhouse, he would probably be sheltered until a guide from one of the escape lines called for him. These guides, many of them teenage girls would take 4 or 5 men speaking only in southern drawls, mid-western twangs or London cockney, move them by night on bicycles or trains, hide them by day in one of thousands of homes between the Rhine and the Pyrenees and, in a few weeks, deliver them to Gibraltar or Lisbon. Thousands of Frenchmen, Dutchmen and Belgians made their homes available knowing that if they were caught their whole family would be tortured and shot or sent to a concentration camp. General Guerisse, who was known in those days as Pat O'Leary, was himself Approved For Release 2001/03/06 : CIA-RDP91-00901R000500010002-3 Approved For Release 2001/03/06 : CIA-RDP91-00901R000500010002-3 captured and dragged through several concentration camps finally winding up in Dachau. Even Dachau couldn't keep Pat down and he wound up organizing the prisoners and having taken over the camp when the American forces arrived there. Jean-Pierre Roselli is here tonight to represent the Amicale Action made up of a thousand local chapters of resistance veterans all over France. Prance was where we were to land and I recall the flood of information that came over some 200 radio sets and in pouches full of maps and drawings and reports picked up inside France by small planes or small boats. These Frenchmen put 90 factories out of production with less plastic explosive than could be carried by a single light bomber. I be- lieve the record shows that this kind of a job, when it could be accom- plished on the ground by sabotage, was done more effectively and with less cost that it could be done from the air where the cost in planes and the lives of airmen and civilians could run very, very high. The French resistance made 950 cuts in French rail lines on June 5th, the day before D-Day, and destroyed 600 locomotives in ten weeks during June, July and August of 1944. Our greatest debt to them is for the delays of two weeks or more which they imposed on one panzer division moving north from Toulouse, two from Poland and two from the Russian front as they crossed France to reinforce the Normandy beach- head. We'll never know how many Allied soldiers owe their lives to these brave Frenchmen. When General Eisenhower failed to destroy the Germans in France, his armies found themselves moving into Germany without the behind-the-lines intelligence which the French had provided so pro- fusely. General Donovan brought in Milton Katz from Italy, Henry Hyde and his team which had worked on France from Algiers, Dick Helms from Washington, Mike Burke from the Vosges, Hans Tofte from the Danish desk, and Bill Grell from the Belgian desk. George Pratt and his Labor desk, including Lazar TePer and his small group of experts on controls and documentation within Germany, were enlisted. New com- munications, cover and air drop talent were brought in from Washing- ton. Between October 1944 and April 1945, this combination sent some 150 men, mostly Belgians, Dutchmen, Frenchmen and Poles into Ger- many with identification as foreign workers. They were sent to trans- portation centers with radio sets or new equipment which enabled them to hold a conversation with an airplane sent out for that purpose. These brave men went into Germany blind and it was remarkable that over 900/0 of them came out alive. I recall parachuting a young Belgian, Emil Van Dyke, near Munich. He and his partner got jobs in the Gestapo's motor pool in Munich, driving German officers around southern Ger- many. After our 7th Army took. Munich, Van Dyke and his partner turned up and brought me to their sleeping quarters, a cubicle in the Approved For Release 2001/03/06 : CIA-RDP91-00901R000500010002-3 Approved For Release 2001/03/06 : CIA-RDP91-00901R000500010002-3 Gestapo garage in Munich. They showed me how they had sawed out a piece of the floor under the bed to create a hiding place for their radio set. When they returned from a trip they would take out the radio and send detailed messages to London on' German troop units and their movements. His war over, Van Dyke had only one request. He wanted to meet the girl who handled his radio messages to London. They had gotten to exchange a few extra words every time he radioed in. He must have fallen for her over the air because every extra word sent out of that garage increased the chance that German direction finding equip- ment would close in and locate him and his radio. As it turned out, she was a corporal in the WACs, we had a fine wedding in London and they settled down in Los Angeles to raise a family. Fleming Juncker, who is with us tonight, organized the resistance on the Jutland Peninsula in western Denmark. You'll recall that in December of 1944 Hitler gambled everything he had left in the Ardennes offensive aimed at depriving the Allies of the Port of Antwerp. Twelve German divisions in Norway were ordered to go by ship to north Jutland and then by train to join in this last desperate German counter-attack. Three hundred Danes in Jutland, Fleming Juncker's men, supported by the whole population, undertook to bottle up this force of over 200,000 Germans in Denmark. They brought the railway system in Jutland to practically a complete breakdown and it took weeks for some of these German divisions to make a journey that normally takes 12 hours. By the time they arrived at the front the battle of the Bulge had been won. The Port of Antwerp was a great prize. When Belgium was liber- ated in September, the Belgian secret army had prevented the Germans from carrying out orders to destroy it. The war would have lasted a good deal longer if we had not been able to use those port facilities in the fall of 1944. Even then, the Germans put it under constant bombardment with V-2 rockets from sites near The Hague. The Dutch resistance, represented here tonight by Dick Groenewald, attacked trains carrying these rockets across Holland from Germany and destroyed a lot of rockets which otherwise would have exploded on Antwerp or London. All this had a heavy price. As you drive through central France near Limoges, you come to Ordour sur Glane. There, a monument to the cruelties of war, stands a small village still burned to a crisp, as the Germans left it over 30 years ago, its 250 male citizens herded into a barn to be shot, its 400 women and children herded into the church to be burned. Was it worth the life of this community to keep a single German tank-division away from the Normandy beachhead for two weeks? I don't know. But I do know that whether those GIs we sent to Normandy were to be swept back into the English Channel was a very, very close thing. Approved For Release 2001/03/06 : CIA-RDP91-00901R000500010002-3 Approved For Release 2001/03/06 : CIA-RDP91-00901R000500010002-3 Even that's not the point. The truly important thing is that those Frenchmen and 13elgians and Danes and Dutchmen and Norwegians rose to fight and wanted to fight and had to fight because they loved their country and what it meant to them. Returning to General Donovan, while he loved all this action and the courage it evoked, his real genius and greatness to me was the atten- tion he gave to the more subtle war of the mind. His organization was the only one which embraced all aspects of clandestine and intelligence activity, psychological wartare, deception and research as well as espionage, sabotage, and support of resistance. And he collected play- wrights, journalists, novelists, professors of literature, advertising and broadcasting talent to dream up scenarios to manipulate the mind of the enemy through deception and psychological warfare programs. Donovan created an outfit that was so secret it didn't have a name. We called it X-2. He put Jim Murphy, one of his closest legal associates, in charge and he integrated it with Section 5 of MI-6, the British counter-intelligence unit. They had the closest thing to a decisive clandestine impact on the war in Europe. It came not from the hun- dreds of men and the thousands of tons of weapons parachuted into Europe but from a handful of real German spies captured and turned around in England and a couple of dozen imaginary spies in an imagin- ary network carrying out imaginary operations within England. The fact is that our side operated the entire German intelligence network in England, writing their reports in London and sending them to the Ger- mans by radio or with letters to Madrid or Lisbon in secret ink or micro- dot. These fictitious reports convinced the German generals and finally Adolf Hitler himself that the Allied landings would come not in Nor- mandy but near Calais, 100 odd miles to the north. This deception program consisted of radio traffic from a huge imaginary army located on the east coast of England opposite Calais, wooden tanks and rubber boats for the cameras carried by German reconnaissance planes, as well as false reports from non-existent spy networks. It had the Germans believing the Allies had over 80 combat divisions in England on D-Day. Actually there were less than 50 of which less than 40 were combat ready. Eight of them were to land in Normandy on D-Day, 5 more on D +1,4 more by D + 3 and 4 more, 21 in all byD + 12. Stiff resistance could back up the arrival of these divisions which had to come in over beaches, without a port. The Germans had about 16 divi- sions sitting in Normandy, a few more in reserve around Paris and by D + 2 or so had ordered 5 tank divisions from southern France, Poland and the Russian front. Yet, for seven decisive weeks, Hitler and his generals kept 19 of the best German divisions 100 miles away from our hard pressed forces on the beachhead, waiting for an army that did not exist to make an assault that was never intended. Approved For Release 2001/03/06 : CIA-RDP91-00901R000500010002-3 Approved For Release 2001/03/06 : CIA-RDP91-00901R000500010002-3 The British had broken the German code used in wireless mes- sages between Hitler and his generals. General Eisenhower and his top generals were able to actually read the orders and intelligence appreciations which passed between Hitler and his generals by wire- less. Thus, it was possible for Allied strategists not only to know what kind of facts to feed the Germans but to watch them take the bait. For example, German messages showed that Von Runsted, in command in western France, believed the landings would be launched on the shortest line, across the Straits of Dover from eastern England to the Calais area, while Hitler and Rommel, commanding in Normandy, believed it would come from the south of England to Normandy. As imaginary facts were fed out to support the Von Runsted view, the intercepted messages showed Hitler wavering and hedging. The Allied comand knew the deception program had worked when Hitler refused Rommel's request for four tank divisions to back up the beaches in Nor- mady, but insisted on keeping them under his own control around Paris so they could go either way. Then, on June 8, two days after the landing, Hitler actually ordered five infantry and two tank divisions to move 100 miles south to reinforce the Normandy beachhead. On June 9, the Germans got a long message from London reporting that three fictitious spies believed the Normandy invasion was diversionary and intended to cause the Germans to throw in their reserves so that the massive forces in east England could land in the Calais area. The Germans swallowed this bait immediately. The next day, June10, the orders sending the seven divisions to Normandy were countermanded and all divisions in north- ern France and Belgium were put on alert. One has to shudder to think of what could have happened if that force had been thrown into Nor- mandy a few days after the landings. The deception was. so good that when the Normandy invasion plans were stolen by the Germans from the British Ambassador in Turkey and General Eisenhower had to consider changing the whole invasion plan, the decision was to intensify the signals that the invasion would be at Calais and make the Germans think that the plans for Nor- mandy stolen in Turkey had been deliberately leaked to cover up the real landings on the Calais coast. Later on, on the continent, Hubert Will and other X-2 officers used half a dozen German agents captured in France to feed German headquarters with tactical deception on the plans and movements of General Bradley's forces. Three of these agents were so convincing that the Germans awarded them the Iron Cross. So you see, intelligence is a very uncertain, fragile and complex commodity: First, you have to get a report. Then you have to decide whether it's real or fake. Approved For Release 2001/03/06 : CIA-RDP91-00901R000500010002-3 Approved For Release 2001/03/06 : CIA-RDP91-00901R000500010002-3 Then, whether it's true or false as you find out what other intelli- gence supports or contradicts it. Then, you fit it into a broad mosaic. Then, you figure out what it all means. Then, you have to get the attention of someone who can make a decision, and, Then you have to get him to act. Because General Donovan understood all this, he scoured our campuses and mobilized thousands of the finest scholars in America to put together, assess and evaluate, and then analyze the intelligence that came in from all sources. This unprecedented collection of scholars gave Donovan enormous influence. For example, in 1944 there was a fierce struggle between the RAF and the U.S. Air Forces over bombing strategy. Donovan was able to produce a team of outstanding econom- ists: Ed Mason, Walt Rostow, Charlie Hitch, Charlie Kindleberger, Chan Morse, Emile Despres to dissect the German economy and make the case that, by concentrating on oil depots and transportation lines, Allied air power could most effectively prepare the way for the invading armies. ? Donovan's grasp of this elusive, multiple and yet crucial nature of intelligence led to the CIA, over which Bill Colby presides so grace- fully, becoming not merely a spy outfit but one of the world's great cen- ters of learning and scholarship and having more PhDs and advanced scientific degrees than you're likely to find anywhere else. Well, we've gone around the room and fought Donovan's war in Europe all over again. I haven't touched the men and ideas Donovan unleashed in Yugoslavia where John Blatnik spent many months organiz- ing resistance forces in Slovenia, or Thailand to which Nick Deak has referred, or Italy where Milton Katz and Mim Doddario were leaders, or Greece where Jim Kellis and Chris Fragos performed nobly, or China and Burma where General Peers distinguished himself or Indo-China, or North Africa. I have neither the time nor the knowledge to do so. It only remains for me to again thank, from the bottom of my heart, the Veterans of the Office of Strategic Services and all of you here tonight for your generosity. Approved For Release 2001/03/06 : CIA-RDP91-00901R000500010002-3 Approved For Release 2001/03/06 : CIA-RDP91-00901R000500010002-3 .9o-Aotiez.4 .c/galezi THE HONORABLE ALLEN W. DULLES THE HONORABLE JOHN J. McCLOY LIEUTENANT GENERAL WILLIAM W. QUINN GENERAL OF THE ARMY DWIGHT D. EISENHOWER THE EARL MOUNTBATTEN OF BURMA THE HONORABLE EVERETT MCKINLEY DIRKSEN J. RUSSELL FORGAN THE ASTRONAUTS OF APOLLO 11 THE HONORABLE DAVID K. E. BRUCE WILLIAM J. CASEY The Veterans of the Office of Strategic Services will award the William J. Donovan medal to an individual who has rendered distinguished service in the interests of the United States and the cause of freedom anywhere. The purpose of this award is to foster a tradition and spirit of the kind of service to country and the cause of freedom which William J. Donovan ren- dered in both his private and public capacities. He was the exemplar of the citizen-soldier-diplomat who valiantly served his country and the cause of free- dom throughout the world. This award, as a perpetual parallel, will be made to an individual who, in his activities, exemplifies the spirit, the tradition and the distinguishing features which characterized General Donovan's career. These include a continuing concern for the world's security and safety, for the role which the United States must play in the world, and for the rights, freedoms and welfare of individuals in our society. Perhaps the most unique feature of General Donovan's life was the continuing expression of these concerns in his private life and activities as well as in public service. Specifically, in General Donovan's career these features were expressed, as one of America's leading citizen-soldiers, as ambassador, as intelligence chief, as assistant Attorney General, as lawyer in the courtroom and in the office, as pri- vate traveler seeing what he could learn for the benefit of his country. The recipient of the Donovan medal will be an individual who has, in his own career, outstandingly exemplified these features of Donovan's career. He will be selected by a committee appointed by the President of the Veterans of the 0.S.S. The award will take the form of a medal, carrying a likeness of General Donovan. Approved For Release 2001/03/06 : CIA-RDP91-00901R000500010002-3 WASHINGTON STAR Approved For Release/201:51.1q3/06 CIAR9(!91-00901R00 _g_ t STATINTL . Cloak $ and dagger feats . in the early days of the OSS will be recalledtomorrow evening when the veterans of World War II derring-do meet to honor one or their , own: In the ballroom of the Washington Hilton, the William t 3. Donovan Award will: be presented to Wil- , riarn .t.Casey, President of - the-Export-Import Bank. In receiVing the honor named after the famed gpneral, soldier, diplomat, attorney general, and chief of 'the intelligence service that preceded the CIA, Casey joins the ranks of such , men as David Bruce ? the last recipient, the astronauts of Apollo Ii Earl Mountbatten, ,-President Eisenhower, Allen Dulles, John J. Mccloy, Sen. Everett Dirk sen and Lt...Gen. William Quinn. ? Casey. is 61. He could be a banker, a lawyer, and author, and he has been all three. His name appeared most often in the paper when he was head of the Securities and Exchange + 1 IX ? Commission which slap--; ped a $224 million- fraud suit on-Robert Vesco. But the dinner prOgram . tomorrow evening will tell of his "lightning organiza- 1 tion of the radio teams he . parachuted into Germany to send back intelligence on enemy positions," of his help in designing the CIA and of his personal cour- age that Hemingway call- - ed "grace under. pres- sure." ? Coming down for the . dinner, and to give a party at the George Town Club afterwards is oil man John Shaheen, former OSS member and a man who must have cgurage. He plans to start a daily - evening newspaper in New. York ? the New York tress ? early in 1975. Approved For Release 2001/03/06 : CIA-RDP91-00901R000500010002-3 aaatenionstellit4 2.7 MAY ;971 Approved For Release 2001/03/06.: CIA-RDP91-00901R0 Wizar OSS By Margaret Crimmins Old spies, it seems, never die. They just get bigger And better jobs. ? Last night's 'annual re- union of the most clandestine cloak and dagger boys of them all, members of World War Il's OSS (Office of Strategic Services), included a special counsel to the Presi- dent, the SEC chairman, a vice president of Interna- tional Telephone and Tele- graph Corp., the New York Yankee's president, a former circus k i a g,I bankers and other financiers. Ambassador David K. E. Bruce, now chief negotiator ,at the Paris peace talks, was awarded the OSS William J. Donovan medal, named after the intrigue-loving, Irish organizational genius who in 1941 founded the CIA's fore- runner. "Those were very exciting days," said Ambassador Bruce, who said he came to Washington for the event and saw President Nixon . briefly yesterday afternoon. "Things have been very dull since the OSS days. , There were as many in the OSS as there were Ameri- cans killed in the Vietnam war," said the 73-year-old ambassad or. Mrs. Bruce, who was with OSS in London, also talked about the "excitement" of those days. She joined her .amsband in Washington yes- terday afternoon. "I had to ? stay in London for a special ceremony. ' They named a new rose after me" (an apri- cot-colored plant named Evangeline Bruce). There was a certain- nos- talgia among the amain:a- mately 500 in the predonii- _ sota congressman and now special consel to President Nixon, reminisced about the clays when he was in the China-Burma theater with .Earl Mountbatten CO win- ner of the Donovan Medal) and Gen. (Vinegar. Joe) Stil- well. .. "We were sludging through the jungles in Bur- ma, in the middle of the monsoon, with _rain coming down a mile a minute, and all dirty in Army-issue clothes. Mountbatten showed up in dress whites. We threw some K-rations in the mud for him to stand on. IIe gave a long speech about patriotism. Stillwell turned to me and said, 'That's the goddamnedest story I ever heard,'" related MacGregor. SEC chairman William J. Casey joked, "OSS stands for Old Soldiers' Society," and added "if you keep quiet you can hear the arteries harden." M. Preston Goodfellow, 79, who calls himself the "old- est surviving OSS member"' and is now president of Overseas Reconstruction, re- called looking for a "China- man to do some smuggling in Burma. We used him, and he always said, 'If you ever want anyone bumped off, let me know.' I haven't gotten to that yet." Henry Ringling North, of circus fame, and New York Yankees' peesident Michael Burke, were two of the nat- tiest men there, both in ruf- fled white shirts. "Those were the days," said North, who served in Italy. "Derring-do was a great fellow," said the long- haired Yankees' president of OSS founder Donovan. ' Some of the most dra- matic speeches were made by European Resistance leaders Maj. Gen. Andre Guerisse of Belgium, who founded the International Prisoners' Association while he was imprisoned in Da- chau, Germany; Kurt H w au- kelid, of Norway, who was among, paratroopers and skiers. who dynamited the ,Norsk hydroplant, which was the source of power for a German atomic weap- ons laboratory and Svend Truelsen of Denmark, pri- marily responsible for move. nantly Republican (and white-haired) audience at the Staler Hilton Hotel dinner. Nostalgia for the days 30 year ago when a war was popular, when there was a worship of min-. tary heroes, and even per- haps when surveillance was a more glarnAneceaa _aria 1 EpvetisFor Release 2001/03/06 : CIA-RDP91-00901R000500010002-3 criticized neMMIM Dinner,chairman 'MacGregor, former Mune- 'over one weekend. ing 8,000 Jews into Sweden President Nixon sent a special message praising Ambassador Bruce for his "enduring contributions to national security and to. world peace." Other guests included Rep.. John Blatnick (D-Minn.), who -was OSS. intelligence liaison with .Tito and Allied- forces in Yugoslavia; CIA Director Richard Helms; presidential assistant William Sa fire; House Minority Leader Ger- erald Ford (R-Mich.); and Mrs. Donovan, widow -of the founder. The U.S.. Army Chorus sang such songs as "The Last Time I Saw Paris" and "Those Were the Days." , Raymond L. Brittenhame senior vice president of ITT, is president of the Veterans of 055. The Rt. Rev. Ed- ward J. Carney, a former national chaplin of the, American Legion, gave a long, emotional invocation, saying about Ambassador Bruce "God knows he needs our prayers," and asking the Almighty to "descend upon ais and give us help." Be al- so in his invocation stressed -the need for a new organie ration. similar to the OSS to "fight the ravages from