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January 18, 1983
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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_ ... -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 A01orbve>dleFb,SRe4e:as e2004r109107d: CIA-RDP9'lC~~ - 00070016-2 ~ LA+1E5 A q-rHAN is a prufrysor of pahtical mrncrct tlx L'ni: eroit7 u.,f Dcla: arc. H( bas rerrntll rrrarncl fryrt STATINTL