COLBY BACKS US IN EL SALVADOR, PRESSES FREEZE OF NUCLEAR ARMS

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP91-00901R000500070016-2
• Release Decision: RIPPUB
• Original Classification: K
• Document Page Count: 4
• Document Creation Date: December 9, 2016
• Document Release Date: November 14, 2000
• Sequence Number: 16
• Publication Date: January 18, 1983
• Content Type: NSPR

STATINTL
BOSTON GLOBE
18 JANUAP Y 1983
backs
STATINTL
Salvador.'-
resses freeze of
nuclear armS?`
By Paul Aaron
Special to The Globe
WVASH1NGTON - He is a devout Ro-
man Catholic who believes the
church's "just war" doctrine should
help guide a nation's military conduct.
Yet during the 1960s. his name became
synonymous with Operation Phoenix.
an attempt to destroy the Viet Cong in-
frastructure that critics charged led to
a vast. indiscriminate campaign of po-
litica) murder.
While CIA director. he delivered up
the agency's secrets to the Senate's
Church committee and struggled to es-
tablish a framework for permanent
congressional oversight of the intelli-.
gence community. He was dismissed by
President Gerald Ford and reviled as an
apostate by those CIA professionals
whu still swore allegiance to the cult of
the clandestine.
Today a successful Washington law-
yer with the firm of Reid and Priest, he
is a staunch supporter of the nuclear
freeze, and his testimony has grown in-
creasingly prominent as debate intensi-
fies over the strategic balance and the
nuclear arms race. At the same time. he
defends US Involvement in El Salvador.
Collective common sense
The nuclear freeze. Colby argues, re-
presents collective common sense mobi-
lized against the hocus-pocus of an un-
accountable elite: "My thesis is that the
subject of nucear war has been so awe-
some. so frightening, so complex that
ordinary citizens have left It to the
priesthood to handle. But the priest-
hood has failed, and people looking at
outlandish ideas like the -racetrack in
the desert ;the original-MX basing
model. or now, dense pack. ask, 'My
goodness, are the experts who designed
this for realT "
Intelligence, which began as an ad-
junct to military operations. has
moved. Colby maintains, from a "mere
contest with the enemy to helping us
make decisions about the world we live
in." Colby contrasts the deadlock over
the 1946 Baruch Plan, the initial ex-
periment to curb atomic weapons that
failed because the United States could
not persuade Stalin to authorize inspec-
tion teams, with the SALT I agreement.
which both sides were able to sign and
monitor thanks to satellites and other
sophisticated data-retrieval systems.
where the hearts and minds of peas- "Or look at the electronic sensors in
ants can be won through applying the Sinai in 1973 that buttressed a
techniques that, he says. produced truce so that neither r the Egyptians
results in Vietnam. Ithe William Colby Is the man who em- ders with their fingers on the trigger.
bodies these contradictions. At the end Each side could have confidence that
of an interview, during which he held ample warning would be available
forth on intelligence. arms control and should assembling of forces occur,
assassination, what seem jagged edges That's the crucial role for intelligence:
of sensibility and experience fit togeth- to keep the peace, not just aid in war."
er into a smooth even placid charac- Colby denies that a freeze would lead
i
ter.
LEM
A Erase 2001/03/07: CIA-RDP91-00901 R
steppes producing what we suspect is a
new whiz bomb. and we ask the Soviets
to let us take a look at it. they'll tell us
to mind our own business. Under a
freeze, if we think a factory is produc-
ing a new nuclear weapon. we can go to
them, and say, 'You've got to reassure
us you're under compliance.' "
No.ironclad guarantees
Colby admits. however. that iron-
clad guarantees against subterfuge
cannot be made. "But would it be possi-
ble for the Soviets to violate a freeze to a
strategically significant degree?" he
asks. "I don't think so. We have a var-
led array of capabilities to protect
against major violations."
Colby asserts any attempt by the So-
viets to mount a decisive evasion of a
freeze agreement would not only run
risk of detection by US surveillance.
but might also be jeopardized by disclo-
sures from the Russian people them-
selves. A small cabal of conspirators
would be inadequate Jo carry off a ploy
so substantial as to Up the strategic
balance. he said. Instead, widespread
coordination would be required, there-
by increasing the chance that a partici-
pant, appalled by his government's du-
plicity, would bring the secret to the
West. "The Kremlin has to remember,"
Colby said, -that [Oleg] Penkovsky [a
Soviet army colonel who. .during the
early 1960s. handed over more than
10.000 highly classified documents on
Soviet missiles to the CIAI acted out of a
wish to put a brake on what he felt was
"
olitical leadership
reckless
p
~
~
. Approved For Release 2 " ~~a1~iY~Ft :+ 61 R0005940T 1t6- d the inclination
et weapons in any case. With a treaty. to engage in an arms race, are not, in
it becomes easier, not harder. There Colby's view. peculiar to the Soviet
r._ .- - ff. __.-? -- .L_ ... L......ae -4 1
 STATINTL
Approved For Release 2001/03/07 : CIA-RDP91-0090
WASHTNGTON POST
6 JANUARY 1983
Amused of Illegal Soviet Trade
.Ex-CIA Official Two Oth,'
By Philip Smith
w&wngten PatBlatt wftn
A former CIA spymaster and two
business associates have been in-
dicted by a federal grand jury in Al-
exandria on charges that they con-
spired to sell a $5 million diesel en-
gine assembly line to the Soviet
Union in violation .of U.S. export
laws.
Federal authorities said yesterday
that the charges were the result of
an undercover sting operation run by
the Customs Service through a fic-
titious Paris-based company with
which the. three allegedly had been
dealing since October. '
Paul Sakwa,_ one of the defen-
dants named in the 11-count indict-
ment, was the Washington-based
chief of U.S. spy activity in Vietnam
from 1959 to 1961. For two years
prior to that he worked as a covert
agent in Brussels, according to court
papers. He left the Central Intelli-
gence Agency in 1962 to join the
State Department and remained
'there ' for two years before leaving
the government to become a consul-
tant.
Also charged by the grand jury
were a Chicago business executive,
Stephen G. Carter, president of Per-
formance Sales and Marketing, Inc.,
and Gerald F. McCall,- a Toronto
businessman.
Sakwa was arrested by Customs
agents on Dec. 28 at the Holiday Inn
in Alexandria's Old Town section as
he waited to meet with Carter and
k McCall,. officials said yesterday. The
latter two were arrested the same '
'day at National Airport as they
stepped off an American Airlines
flight from Chicago.
All three men are free on bond
and are scheduled to be arraigned on
Monday at Alexandria's federal
courthouse.
Customs Service Commissioner
William von Rabb told a news con-
ference that the three had an option
ufactured by Ingersoll-Rand Co., a.
New Jersey-based conglomerate, and
planned to export the assembly line
to the Kama River Truck Complex,
a major Soviet factory in Siberia."
Ever since U.S. officials found
that the truck facility manufactured
much of the military equipment'
used by Soviet forces in its two-year
-
old operation in Afghanistan, Amer:
scan firms have been forbidden to
ship equipment there.
Von Rabb said the United States
has no evidence that the Soviet
Union was directly involved.
"The "Soviets do not leave forger
prints; he said. "So it's not surpris-
ing at this point not to have any
hard evidence that the Soviets were
i volveV
The indictment was vague about
whether any Soviet officials had
been involved.' William Rudman,
special agent in charge of Customs'
Washington field office, declined to
say if any Soviet Embassy personnel
may have figured in the proposed
deal. Rudman said that the Customs
investigation is Continuing and the
question was "sensitive"
The assembly line is among the
items on the Commerce Depart-
ment's Commodity Control List;
meaning that a special license is re-
quired from the department in order
to export it. A license for shipment
to the Soviet Union would not be
issued, the indictment said.
The grand jury charged that the
three men had dealt with the Paris
firm, identified only as Arinfi, in
The Customs .investigation is part
of Operation Exodus, a 14-month
old Reagan administration campaign
to curb the illegal export of Amer-
ican-made high-technology and stra-
tegic materials. A Canadian firm and
two of its executives are facing sim-
ilar U.S. charges in Alexandria alleg-
ing that they conspired to ship tank
engines to Iran.
Sakwa, a Northwest Washington
resident, made headlines in 1973
when he opposed President Nixon's
choice of William E. Colby to head
the CIA, criticizing Colby's perform-
ance as CIA station chief in Saigon
in the early 1960x.
Sakwa, who watched over the
agency's covert activities in Vietnam
for about two years, later served as
special assistant to CIA spy chief
Richard M. Bissell Jr. before leaving
the agency.
If convicted, Sakwa and Carter
face up to 50 years in prison and
fines totaling more than $75 million,
under provisions of the Export Ad-
ministration Act. McCall could re-
ceive a maximum penalty of 45
years' imprisonment and more than
$50 million in fines.
order to obtain documents listing .
France as the final destination for
the equipment. Assistant U.S. Attor-
ney Joseph J. Aronica said that the
name -Arinfi carried no special sig-
nificance.
The - indictment, returned late
Tuesday in Alexandria and made
public yesterday, alleged that the
men had been alerted on Dec. 20 .
through an acquaintance of Carters
that the Soviets were interested in
~no
to buy a diesel proved Fr release 2WO d?. Yh- tDP91-00901 R000500070016-2
 STATINTL
A.R7TICI l '~r Release 200 1lW0c;l - 01-00901
tip FAG. E_ 6 JANUARY 1983
? Agents Thwart Plan to Help Soviets Build Trucks
By LEE MAY, Times Staff f writer
WASHINGTON-In a continuing
crackdown on illegal exports to So-
viet bloc countries, an undercover
team of U.S. Customs Service
agents has smashed an attempt to
smuggle a truck engine assembly
line into the Soviet Union, federal
officials announced Wednesday.
U.S. Customs Commissioner Wil-
liam C. von Raab said three men-
two Americans and a Canadian-
have been arrested and charged in
an 11-count indictment with at-
tempting to defraud the United
States and with violating the Export
Administration Act, which controls
exports of certain technology and
goods.
The investigation, known as
Operation Arinfi, began several
months ago and paid. off when.
agents in suburban Virginia
swooped down on the three defend-
ants, Von Raab told a news confer-
ence.
Named in the indictment were
former CIA employee Paul Sakwa.
of Washington, D.C., Stephen G.
Carter of Palatine, Ill., and Gerald F.
McCall of Toronto. All three are as-
sociated with Performance Sales
and Marketing Inc. of Chicago. Car-
ter is the president of the commodi-
ties export business.
CIA spokesman Dale Peterson
said Sakwa worked for the agency
from 1952 to 1962, "and he hasn't
worked for us since."
In July, 1973. Sakwa was de-
scribed in a New York Times article
Company based in Paifi Vqp Raab said. ;
He said the three men believed the bogus company,
could act as a go-between, buying -the sophisticated'
diesel equipment for a European country and eventually.
.
shipping it to the Soviets' Kama River truck -manutac-*
turing plant. The Soviets were to pay $5 million for the.
darns, plus a $500.000 cor iisston ~r tie tht ee: defea
Yon Rash Paid t .at a tremendous amount of such pc
tivity takes place but that, in this case, the alleged ,
smugglers "were dealing with the wrong people." In the.
last yi`ar, Von Raab said, Operation Exodus has led to
about 50 arrests.
The assembly line is a critical part of the?Sovierplant, .
Von Raab said. He said that the equipment involved in
the case was made for the Soviet plant by Ingersoll-
Rand Corp., a New Jersey. manufacturing firm, but that
shipment had been held up by the Commerce Depart-
ment because of reports that trucks made there were,.
being used in the Soviet invasion of Afghanistan.
'Foreign Ps llt7 Puirpoaei' '. '
The 15-page indictment, returned by a U.S. grand,"
jury in Alexandria, Va., charged that-the three~defend
ants conspired to exxport the diesel engine assembly line
without a valid license and with the knowledge that ex-
port of the equipment was restricted ?for foreign policy,
purposses."
Carter and Sakwa encouraged McCall to contact rep-.
resentatives of the U.S.S.R. to determine the Soviets`
"interest in securing the export of t-he.item," the indict-
ment said
Von Raab said the equipment now belongs to an in-
surance company that he did not identify. He said the
'defendants "had an option to acquire it and were looking
for a way in which they could exercise the option."
Since being arrested without a struggle on Dec. 28.
the .three men have been released on bond, ranging
from $10,000 to $15,000, lower than officials had sought,
Von Raab said ?
as the CIA's chief of covert activi- ; If convicted,'ttiei defendants could be sentenced to a 1
ties in Vietnam from 1959 to 1961. "maximum of five years and a $10.000 fine on the con'
Sakwa was reported . to have .. spiracy count. For violating the Export Administration
charged in 1973 that William E. Act; they could be fined five times the value of the as.
Colby. while Saigon station chief for aembl y tine and sentenced to five years in prison.
the CIA, slanted intelligence data,. . .
submitted misinformation and al-
lowed U.S. money to be used in rig-
ging a 1961 election in South Viet-
nam. The charges were lodged
when the Senate was considering
Colby's nomination to the director-
ship but did not prevent his confir-
mation.
Peterson refused to comment on
the statements attributed to Sakwa.
As part of Oppration Exodus, a
year-o1dApt3r6-Gt*, bgt Release 2001 /03/07: CIA-RDP91-00901 R000500070016-2
ming illegal exports of critical and
high technology, Arinfi was the
U.S. Blocks Smuggling of Ass JM "vmwe
- - - I N - L
 STATINTL
I'j Approved For Release 2001/03/07 : CIA-RDP91-009
A'zcrE APPEARED
ON PAGE-,4,6sL...~
FOREIGN POLICY
WINTER 1982-83
DATELINE AUSTRALIA:
AMERICA'S FOREIGN
WATERGATE?
hti -James A..\athan
ho lost Australia" may soon be a signif-
icant debate in American politics. All over the
democratic world opposition parties are gain-
ing power. Should this happen in Australia,
the alliance with America micht be called into
question and Washington could lose intelli-
gence facilities indispensable for any future
arms control regime.
Today, from press and Parliament, Australia
is awash with accusations about illegitimate
American intelligence activity. .Much attention
and anger is focused on the Central Intelligence
Agency. There is an almost hysterical set of
indictments leveled against U.S. intelligence.
The CIA is charged with becoming involved
in Australian politics and foreign relations.
even manipulating the Australian banking sys-
tem and. most astonishingly, organizing a nar-
cotics trade from Australian soil.
lntellicent American observers' initial dis-
belief needs reassessing. For in Australia a
plausible case is being developed that CIA of-
ficials may have also done in Australia what
they managed to achieve in Iran. Guatemala.
and Chile: destroy an elected government-in
the case of Australia. the Labor party govern-
ment from 1972 to 1975.
The fall of Prime Minister Gough \Vhitlam
and the appointment of current Prime -Minister
?;Malcolm Fraser met with profound relief'
among U.S. officials. \Vhitlam, perhaps the
best orator in contemporary Australian his-
tory, aroused deep hostility within the U.S.
intelligence community. It viewed his pare'
and politics as, at best, benighted accomplices
to Soviet undertakings. The CIA feared that
secrets shared with Australia were being
routinely compromised, that CIA activities and
scents in Australia would soon be revealed.
irreplaceable elect
Australia. vital for
activities. could be I"
During the Whitla
United States were c
as an associate, and
nations. Relations im
a more conservative
tralian capital, Cant
tigation into the 19E
based. American-ov
chant Bank has rev
the controversies of
tralian suspicions t
preposterous in 197'
river of evidence. Th
warrant to a water-c(
noids have enemies.
Geography and geology have conspires in
directing Australia's destiny. Australia has
bountiful mineral endowments and a small
population-to-area ratio with a total population
of 1 5 million. It is one of the most strategically
valuable pieces of real estate on the planet. Aus-
tralia sits at the southeast corner of the Indian
Ocean about 2,400 miles southeast of Indo-
nesia. Sixty-nine per cent of Japan's oil require-
ments. 70-80 per cent of Western Europe's, and
15 per cent of .America's passes through the
area between Australia and southern Africa.
U.S. B-52s flying from Guam to Diego Garcia
refuel in northern Australia at a base in Dar-
win. Australia hosts 10 American military in-
stallations. Because of their unique location.
most cannot be replicated at any cost. The new
L.S. Defense Guidance characterizes Australia
as a critical area.
Australia has traditionally been friendly to-
,ward the United States. Tens of thousands of
U.S. sailors each year are delighted to find that
the computerized date-a-sailor services offered
at ever' Australian port are overburdened with
amicable Australian applicants. But things are
changing. No longer do prime ministers claim,
as john Gorton did in 1969, "Wherever the
United States is resisting aggression ... we
will go a-waltzing Matilda with you.-" Evidence
of a new atmosphere was the roasting Vice
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