AUTHORITY TO DISPOSE OF SAT AND AIR AMERICA

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP75B00380R000200090014-0
• Release Decision: RIPPUB
• Original Classification: S
• Document Page Count: 2
• Document Creation Date: December 19, 2016
• Document Release Date: July 21, 2006
• Sequence Number: 14
• Publication Date: December 14, 1973
• Content Type: MFR

Approved For Release 2006/09/25 : "~R F 75B00380R000200090044 Vj
SUBJECT: Authority to Dispose of SAT and Air America
1. I met this afternoon for approximately one and a half
hours with William M. Jones, Staff Director, Subcommittee on
Government Activities, House Committee on Government Opera-
tions, and William H. Copenhaver of the Committee staff at their
request to discuss the question of the legal authority of the Agency
to dispose of Southern Air Transport and Air America. I showed
them a copy of the attached classified legal opinion which concludes
that we do have such authority. They did not wish to accept a clas-
sified document and requested that we furnish them a sanitized ver-
sion.
2. In addition to the above, they want the following items
of information:
a list of the assets;
b. the specific financial arrangements in connection
with the urchase; i. e. , the loan and how much is
Ihimself putting up;
c. what type of authority from CAB does
intend to operate on in the future when his supplemental
certificate is no longer operative;
25X1
STATOTHR
d. under this new authority can Oget MAC STATOTHR
contracts or other types of government contracts;
e. how the sale price was arrived at, was there an
appraisal, and if not how was the value set; and
V f. a copy of the sale contract.
II
01-e 7S-1"15"'Y
E2 IMPDET
Approved For Release 2006/09/25 : CIA; P ,5B00380R000200 p
 25X1A
Approved For Release 2006/09/25 : i`5B00380R000200090014-0
3. Copenhaver seemed a little disturbed that the Agency
had not responded to the letter from GSA to the Committee, a
copy of which was sent to us. He felt that if we were wrong on
our view of authority to sell and if the sale had been consummated,
this could have caused a cloud on the title of the purchaser. I
pointed out that I had been in oral contact with Bill Jones
and we were not ignoring the GSA letter nor the Chairman's letter,
but a problem is posed in terms of responding since SAT and Air
America are referred to and this would require a classification
problem in our response.
4. I advised them I thought we could get all the additional
information by about next Tuesday. This Office will pull it together.
25X1A
JOHNS. WARNER
Acting General Counsel
L,, c: OLC25X1A
Approved For Release 2006/09/25 : C14 -k LP15B00380R000200090014-0