EX-CIA OFFICIAL DENIES REWALD'S STORY

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP90-00552R000605490100-8
• Release Decision: RIFPUB
• Original Classification: K
• Document Page Count: 2
• Document Creation Date: December 22, 2016
• Document Release Date: June 30, 2011
• Sequence Number: 100
• Publication Date: August 22, 1985
• Content Type: OPEN SOURCE

Approved For Release 2011/06/30 :CIA-RDP90-005528000605490100-8
HONOLULU ADVERTISER (HI)
22 August 1985
Ex-CIA ,official
Rewald's story
1'he torrrsser heed of the CIA's
Honolulu Held otfiq said 1-et
terday he once bet up "cafe
Kowa" !or the CIA abroad. but
that Ise didn't create Biab~
Baldwin Rewald Dillingham
Wong in Honolulu. _
a1d ~RewrJaldWa~ charges t?ut
Weklti and the CIS directed
the Crlat~0~1 Of We OojW ~
vestment oompar~y, !ta ~ctftio~w
pact sad t aR`fen of ~8 peeoant
tweet to tnveetora.
Wealeh, Mno ran tt>t ooe-esz~
overt CIA Held otltoe hee+e !b~
1@?Q to i9?g, raid lye met lira
rrald only twice altar Rerva2d
telephoned and volunteered to
report about planned buetaeaa
true to Japans and Chirsa.
He thowe prop~lse of ds!vel-
op into a productive source
ad I tforeian intelligence),
ence he has been orieAted
. asp epdi ~ d m rested,"~~vsl' ch
wrote on a "source/watac~t
?lttioroaatlon sheet" about Re-
wald niter having lunch and
197a~ with iim oa June 90,
#~ ~Ve~ added. "be rraald
~vMaem ~ ~ ~t
lalnt v t0 !tile seal cape
it~aa."
. ~ Walcls. ttors- stared and tip
`owae d a oaseepleesoe ataee ~
e0~wee~wtt Vls~tata. Y a~,~-
rvitnew ~ the t'e at?
~No~ sad the doeu?
~,ar
-ho*- Rewayd Satned
-ice tl>! Aatioa'e
le rgatsf aa-
a aituatlon t>sat uItlmate~i-
espoeed eeeera! tgeAte and
?oma ~peratieae assd tech-
~~ -
to i0ti~~1e Y
ivald aye l~ !r t of
inv~ to~raa~ l~
'bov~ ii [ ~
tact ~~-three t+o
tour a ~r sent Ott
con~daered Rervald a=s "aver?
age ~~taer dt !be kind the
aces.
W ch. a ealas,? elorv-talking,
desp?voiced than wbo looks
v ltlce ttsoYie situ Gene
H ,aid be~ofined the CIA to
195.2 arsd that IsL contacts rPlth
lterorald were among hit last
duties bet'ore Isla t~etlrement
Sept t5, i9?>!, !n I3aMaii.
fate "generic" description 01
his 26 years in the agency sus-.
his cuter was a far cry
m James T3o1sd.
r _ . ~ tisat fob rrae lp wlogie-
auis fib_s~ot tebkla for a
~Lloo opt tie ages.
q'
I ~e Wert lour years,
. ~!, be worked is an
~~ lOCatiotf," triit,Wl~r ~]!
? and vehicle control
. ~.~ itp "opersti0ae support
- s t~eai estate activity proettr_
ins aid _
~ M awe ~M.
. ,
'~eh bow." Tye tta~ a ,.~
~"aot te~aoeab~e Zo tube I
C~ ~ fa aoane cares
not t
.
o
the ~ g'avaramesst" and used
Pe!'aw ~e~ediag alety
' Vas ingto theadq~wrtart~tor
the European division,
tail $om Rsrvald. whom die had
t~ev~r hoard vt. ?
Rewald tndscated bt Matt ce.
etntly returned from the Peo-
ple'r Republic of Chfr-a, a visit
denies
any waleer wr;~ght
?~? sw~ w,w.
which Rtwald thought would
be of tntewggeenee fntarest, as
cording to Welch.
"I suggested we vest for
lunch for a moP+r len~y die-
cueeton of what he had in
mind." Welch staid. At the rea-
taurdrst in downtowA Honolulu,
he bald, Rewald told him he
was involved to retail and
whoiaaa]e. zportirtg goods sales,
and planned to travel to a Far
East country and establish
manufacturing sources for
spotting goods.
Welch eai? Rewsld disclosed
to him in that first meeting
that hit Wisconsgrs company.
CM3, had failed there but had
bean. transferred b Hawaii
where Rewald hoped to rebuild
fc.
Rewald alto said he had been
a pmfesgiona] football player
with the Cleveland Browns,
and that he had graduated wish
bachelor's and master's degrees
after six years at Marquette
University, and a Ph.D. after
two years at the Massachusetts
Institute of Technology, Welch
aid.
Rewald actually attended the
bdilwaukee Institute of Technol-
ogy, at Iunlor college.
Asked tf he wa-.m't puzzled by
Reweld'a two-year doctorate,
Welch suggested it might have
appeased that Rewnld rues "a
genius. He had a great deal of
charm. I couldn't probe his
ioteuect."
Welch said Rewald gave hiin'
thtt ~nformauon even .hough
ht must have known 3t could
be checked in oar telephone
call:
Alter that first meeting
? Welch said, lee returned to his
ofllce and filled out the custom-
"source card.
Under cross-examination
~;;~r n^t.s~l
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which wfll continua today, "Source wu a ~valk?in who
yVdch tried toe lain why velueteered hie services,
that document Iist~ 'Rewald s moved, he said, to this action in
CMI Corp, at an address at sympathetic reaction w the
aroavenor Center tw-hich Re- yetis of criticism and slander
~vald didn't move to untll later. leveled against the U.S. intelll-
Welch said he assumed a i8ence community.
secretary had whited out the - "He claims a past association
original address and put in the with the agency during his stu-
rtew one after the business dent days ... Mhen one ele-
moved meat was attempting to oats
He acknowledged that some' the foreign roots of student un-
typing on some documents rest in the U.S."
looked the name, despite differ- ' ' it?n cross-exemtnation, Welch
ent does for the entries, but said he believed Rewald was
suggested it was because it was contused and must have been
done on the pros typewriter in thinking of the F'$I, because
Honolulu or different typewrit- the CI~ has no authority for
ors of the'same brand and vin- domestic spytog on Li.S. citi?
tags at CIA headquarters. zero. Sut Watch laid he was
Welch said he made a re- - unaware of Operation Chaos, an
quest for 'a check of Rewald's allegel CIA attem t to infil-
name for derogatory informs- , oats student groups ,
Lion to ifles maintalnld byY gov- Rewald, Welch continued,
ertunent egencies in the UNted
Sutea, primarily the FBI.
That initial name check re-
quest, sent to headquarters too
late for the answer to come
back before Welch left town,
apparently did not turn up Re-
wald's 1976 Wisconsin theft
conviction, and Rewald shortly
received a "secret" security
claastilcation valid for the ntxt
five years.
A subsequent check did turn,
up the tbett conviction, but the
CIA by that t[me had been
dealiris with Rewald for some
time and decided to continue to
do so, according to officials
close to the case.
lgeforo he left Honolulu.
Welch said, he introduced Re-
wald to hla successor to charge
of the field office, Jack
Kindschi, at a dinner at the Re-
wald home.
After that second mee~ng,
Welch prepared a confidential
'`DCD source/contact iniorma-
tion sheet" on Rewald
'The sheet, introduced in e~ i-
dence, contains this initial as-
seesmeat by Welch:
=bowed promise, and "has
visited the People's Republk of
China once in the recent past,
and seems to have laid the
groundwork .for continuing
good access there."
Rewaid's potential expertise,
Welch indicated, related to
Japanese sporting goods and
footwear manufacture, import
and erpori; Chinese industrial
development Welds; and China's
import-export trade.
Rewald, Welch noted at the
time, "would very likely be
receptive to optr:tional re-
quirement9."
Sut Welch insisted that the
CIA "source card" notation on
the original June 30, I878,
meeting as dealing with "plan
and operations" was a refer-
ence to Rewald'a personal plans
and business operations, not W
some CIA plan or operation.
The next meeting, the dinner
at the Rewald home with
Kindschi, was described on the
same card as dealing with
development of Rewald's "F'PI"
or "foreign positive intelli-
sencx" potential, Welch said
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