FYI - ALLEGATIONS AND ANSWERS

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP75B00514R000100180005-2
• Release Decision: RIFPUB
• Original Classification: C
• Document Page Count: 2
• Document Creation Date: December 14, 2016
• Document Release Date: October 22, 2002
• Sequence Number: 5
• Publication Date: February 18, 1972
• Content Type: MISC

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Approved For Release 2002/1030: A7- 6 '75B00514R000100180005-2
18 February 1972
On 27 January 1972 Allen Ginsberg appeared as a guest on the
Dick Cavett Show. He alleged, in sum, that the Central Intelligence
Agency is tied in with the drug traffic in Southeast Asia.
The March 1972 issue of Earth magazine contains the above
allegation in considerable detail. Advertising the article in Earth.
The New Republic of 19 February 1972 states, "The CIA put your
brother in Vietnam. CIA heroin traffic turned him on to smack. "
Nicholas von Hoffman appeared on CBS on 17 February, referred to
the article, and stated that Congress should investigate the matter.
ANSWER:
The Director has dealt with this allegation previously. In an
address to the American Society of Newspaper Editors in Washington,
D. C., on 14 April 1971, he said:
"There is the arrant nonsense, for example, that the
Central Intelligence Agency is somehow involved in the world
drug traffic. We are not. As fathers, we are as concerned
about the lives of our children and grandchildren as are all of
you. As an Agency, in fact, we are heavily engaged in tracing
the foreign roots of the drug traffic for the Bureau of Narcotics
and Dangerous Drugs. We hope we are helping with a solution;
we know we are not contributing to the problem. "
Attached is that portion of the 2 June 1971 Congressional Record
containing a letter to Congressman Charles Gubser from John E.
Ingersoll, Director of the Bureau of Narcotics and Dangerous Drugs.
The letter explains our non-involvement in drug traffic and our intelli-
gence support to programs that are dedicated to the termination of
illicit narcotics traffic.
nit
Approved For Release 20 P /10/30: CIA-RDP75B 0 0lJ 0105-2
 Approved For Release 2002/10/30 : CIA-RDP75B00514R000100180005-2
June 2, 1971 CONGRESSIONAL RECORD - Extensions of Remarks F" 5305
The objective of the new policy is to Induce Sixty days are being allowed for the sub- sity) of the article entitled, The Nev., Opium
foreign concerns to take the Antidumping mission of comments. I would assume that War." as reprinted from "Rum},arts Mag-
Act Into account before they engage In many persons present here today-if you are azine."
sales to the United States, not already aware of the Treasury's invita- Charges made in the article appear to be
The 25 Percent Rule tion to submit comments-may wish to do a part of a continuing effort to discredit
The Antidumping Act provides that in so. agencies of the U.S. Government. such as the
normal situations fair value shall be deter- Let me emphasize that the Treasury De- U.S. Military, the FBI, the CIA, and the De-
mined by comparing the ex factory home partment continues, as always, to adhere to partment of State, all of which are, in point
market price of the merchandise under in- its policy of equitable administration of the of fact, working actively with the Bureau of
vestigation with the ex factory price at which Antidumping Act. With the Increased per- Narcotics and Dangerous Drugs (BNDD) in
the merchandise is sold in the United States. sonnel assigned to this field and modernized our worldwide effort to curtail International
If the price in the United States is less than procedures and policies, we shall speed up drug traffic.
the home market price, then there are "sales antidumping Investigations, thereby making Actually, CIA has for sometime been this
at less than fair value" within the meaning administration of the law more effective-all Bureau's strongest partner in identifying
this without sacrificing equity. foreign sources and routes of illegal trade in
of the s Let me also emphasize that the Treasury narcotics. Their help has included both direct
the The Act uantity atutecalso. states
of f merchandise tin situations sold sold in where the Department and the Administration are support in intelligence collection, as well as
home market is so small in relation to the strongly opposed to having the Antidumping In intelligence analysis and production. Liai-
Act transformed Into an instrument of pro- son between our two agencies: is close and
ouantity sold for exportation to countries tectionism. On the other hand, we are constant in matters of mutual interest. Much
other than the United States as to form an equally strongly opposed to allowing foreign of the progress we are now making in iden-
inadequate basis for comparison, then third firms to injure U.S. industry by unfair price tlfying overseas narcotics traffi; can, in fact,
country price should be used as the basis for discrimination. It is with the latter ob ec-
The be attributed to CIA cooperation
co The Antidumping in mind that the Treasury Department In Burma, Laos, and Thailand opium is
Antidumping Regulations provide that introduced the changes in the administra- produced by tribal peoples, some of whom
generally for purposes es of of determining what tlon of the Antidumping law, which I have lead a marginal existence beyond the polit-
constitutes an "inadequate basis of tom- discussed with you today. To the extent that teal reach of their national governments.
parlson" for fair value purposes, home mar- we succeed In our objective, the Treasury's
If less Since the 1950's, this Southeast Asian area
ket sales will be considered to inadequate rejuvenation of the Antidumping Act will has become a massive producer of Illicit
if lthan 25 percent o of the n non-U.S. sales opium and Is the source of 500 to 700 metric
of the merchandise are sold in the home mar- become an increasingly Important influence P
In conclusion, I would like to repeat a world's Illegal supply. Up to now, however,
The selection of home market or third statement made by Secretary Connally on less than ten percent of the heroin entering
country price for fair value comparison can May 17 before the Subcommittee on Inter- the United States comes from Fir Eastern
easily be crucial to the results of antidump- national Trade of the Senate Committee on production.
ing Investigations, for frequently home mar- Finance: The dimensions of the drug problem and
ket price tends to be higher than third coun- the absence of any strong poll, ici.l base for
try price. This is particularly true where "The efforts to foster increased competi- control purposes has been a dilemma for
merchandise is sold in a protected home mar- tiveness In our economy must be actively United Nations opium control bodies op-
ket and, when sold in third countries, is ex- pursued in the context of fair and liberal crating In Southeast Asia for many years,
posed to the vagaries of world competition. trading arrangements." Drug traffic, use, and addtetlc. s appears to
It has been Treasury's experience that have become accepted as it fact of are in this
cases arise where sales in the home market area and, on the whole. public attitudes
are adequate as a basis for fair value com- are not conducive to change.
parison, even though less than 25 percent of RAMPARTS MAGAZINE MISREPRE- The U.S. Government has bean concerned
the non-U.S. sales are sold in the home mar- SENTS ROLE OF CENTRAL INTEL- that Southeast Asia could becoine the major
ket. From a technical standpoint, the exist- LIGENCE AGENCY IN FIGHTING source of illicit narcotics for Ir.?;. addicts
ing regulations provide for this situation, DAN- after the Turkish product ion is brought
since the 25 percent rule is Introduced by AGAINST DRUGS IMPORTATION OF under control. The Bureau of Narcotics and
the adverb "Generally." Examination of the Dangerous Drugs, with the help of CIA,
precedents, however, revealed that the Treas- DOD, and the Department of State has been
ury has not, in recent years at least, made HON. CHARLES S. GUBSER working to define and charactei,ye the prob-
an exception in applying the 25 percent rile. !cm so that suitable program> tc suppress
This left the Treasury with two alterna- OF CALIFORNIA the illicit traffic and eliminate 'lle;dal opium
tives. It could have ignored the previous in- IN THE HOUSE OF REPRESENTATIVES production. such as the proposed United
terpretations of the Antidumping Regina- Wednesday. June 2, 7971 Nations pilot project in Thai uul. can be
tions which had, In effect, applied the regula- innplemented.
tions as if the word "Generally" were not Mr. GUBSER. Mr. Speaker, recently It is probable that opium p-oduction in
there, or it coud propose a change in the Ramparts magazine published all article Southeast Asia will be brought under effec-
Antidumping Regulations to eliminate the 1{h F1, like so many other articles which tive control only with further political lie-
25 percent rule. We chose the latter course. velopment in these countries. `]elertheless,
The proposal was published in the Federal appear in new left publications, attempt- in consideration of U.S. NIllit.a y personnel
Register of April 27, and is currently open ed to discredit established agencies of the in the area, as well as the possibility that
for comment by interested persons. Any com- Government, including the Central In- opium from this area may became a source
ments received will he carefully considered telligence Agency. Unfortunately, the for domestic consumption, com,rernerl U S.
before we take final action on this proposal. Stanford Daily, the newspaper pub- Agencies, including CIA, Bureau, of Customs.
A LOOK INTO THE FUTURE fished by students at Stanford Univer- DuD, and State, are cooperating with BNllll
to work out programs to meet. he immecii-
In my judgment. we have only come to sity, saw fit to lend credibility to this ate problem as well as provide longer term
the end of the beginning of the rejuvenation article by reprinting it. solutions.
process. But, I believe we have made a solid A tearsheet from the Stanford Daily Since the subject matter of your letter
start. was sent to me by a constituent' and I runcerns CIA, I have taken tl:e 'Iherty of
Let me take a final brief moment to touch
upon what I see happening In the future. We submitted it to the Bureau of Narcotics furnls:siug a copy along with i,y reply to
have taken steps to initiate a fresh examina- and Dangerous Drugs with a request for Director Richard Helms.
Sinrereh,
lion of the Treasury's antidumping proce- comment. Under date of May 37 I re- JOHN F. Irvcrasr LL,
dures and regulations to see what more can ceived a reply from Mr. John E. Ingersoll. L:n, for
be done. The regulations were substantially director of the Bureau of Narcotics and
revised In mid-1968 after a broad review, Dangerous Drugs. His letter should he As all enclosure to his )ett?"r, Mr. In-
with the dual objectives of conforming the brought to the attention of all responsible gersoll included a paper entitl?d "Recent
Treasury's procedures to the requirements Members of Trends in the Illicit Narcotics Market
of the International Anti-Dumping Code, Congress and the press since
it certainly c"ntradicts the implications in Southeast Asia." This should also he
and also of having the regulations lmple- of interest to every ment in clear and precise language the ob- contained in the Ramparts magazine person v, ho is con-
jectives of the Antidumping Act. With al- article. Mr. Ingersoll's response follows: cerned about this problem at d I there-
most three additional years of experience Hon. CHARLES S. GUBs,:a fore include the text herewitl
under the regulations, as then revised, it Is U.S. House of Represcnfatires RECENT TRENDS IN TILE ILLICIT 'A:;c-?r, s
now appropriate to stop and take a new look Washington, D.C. MARKET IN SOUTTIEASI' A IA
to see whether additional changes may be ap- DEA QryQ ~~(AN e. pT~ pi,~ ~y c acing i i, i ienre f
pr Iprlate. A Notice q4 QQn*d,FCQ{s Re4ea4r Q(6d/y"b ,iTtldtor a ,r7S Fd1~ 1 ~U j ~ ~ n U S sere icemen in
to this effect was pull if hed in the Federal enclosed a tearsheet from the "Standard Vietnam and recent intelligence mcht 1!,,q
Register of April 13, 1971. Daily" fa publication of Stanford Univer- that heroin traffic between Sol:, ii. 1st A: a