CONGRESS MUST PROHIBIT COVERT CIA OPERATIONS HON. JOHN CONYERS, JR. OF MICHIGAN

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP79-00957A000100040013-2
• Release Decision: RIFPUB
• Original Classification: K
• Document Page Count: 5
• Document Creation Date: December 16, 2016
• Document Release Date: July 14, 2005
• Sequence Number: 13
• Publication Date: September 25, 1974
• Content Type: OPEN

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CONGRESSIONAL itEC
However, there are other raw Materials
'which are crucial, and must be imported
from foreign', South American and Caribbean
co:entries.
Venezuela and Ecuador are planning to
nationalize and have adoPted the eame
poli-
cIes and join with the Middle Fast Oil Pro-
ducing Exporting Countries (OPEC). Copper,
which at one time was plentiful in the
United States, must be imported from Chile
and Peru, which countries are forming a cop-
per producing exporting agreement known
as CIPEC. Chilton ports have been opened to
Soviet war ships.
Bauxite comes from Jaanaica, Surinam,
and the Dominican Republic. Since Britain
has withdrawn from Jamaica there are two
communist parties competing for control of
that Island. The United States air base was
terminated upon Jamaican independence.
Jarnica and Cuba excbanged ambassadors,
and Havana is now a poviel port of call in
the middle of the Caribbean approach to
the Paneana. Canal. Jamaica threatens to
nationalize bauxite and aluminum.
The policies of Argentina, one of our sup-
'pliers of beef and wheat, are uncertain.
Colombia has been suspicious of the United
States ever since we took its most important
province, Panama, from Its control. We are
also in need of Bolivian tin and natural gas.
'United States today is none too popular at
any point south of its borders, and democ-
racy has taken a terrible beating throughout
the Islands and Latin America.
Congress voted to boycott Rhodesia, leav-
ing American industry no choice but to pur-
chase chromite from the Soviet Union and
South Africa, United States has contradictory
policies with reference to Rhodesia and South
Africa. It endorses United Nations sentiments
respecting Rhodesia, but It ignores similar
attacks on South Africa, notwithstanding our
need of chromium, antimony, manganese,
platinum, palladium, and ether materials
from those ?two countries.
The politics of the anti-capitalist labor
govern/tents of New Zeeland and Australia
are uncertain, which countries supply 65%
of zinc, tungsten, titanium, thorium, man-
ganese, lead and even iron ore to the United
States, Australia and New Zealand are look-
ing. toward Japan as the coming foremost
naval power in the Western Pacific, especially
In view of the fact that Washington has failed
aMserably 'Co maintain its naval superiority
in the face of the challenge created by the
Soviet-Vnion's modern navy.
The Weak link in American military and
naval capability is a lack of strategic mate-
rials available domestically and therefore,
there is continuous need to control adequate
ocean transport for delivery of such materials
from overseas. -
.Ninety-nine percent of the raw materials
imported by the 'United States must be de-
livered by ship over the world's oceans tri
sufficient quantity to keep our American in-
dustries prosperous and functioning.
The growing naval strength of the Soviet
Union throughout the Mediterranean and its
? seas, Northeast Pacific, Arctic and Indian
Oceans must alert the administration and
Congeals that our lifelines must be pro-
tected and extended.
The lessons of the Spanish American War,
World War I and World War II, Korea and
Southeast Asia, illustrate thirin this era of
detente the casual attitude toward the lack
or loss of air and spa bases and a modern
navy by Washington fordb3y indicates the
need of renewed interest and hemispheric
interdependence with Latin America.
The areas of communist pressure during
the Corti war era were the four bottlenecks of
the oceanic world, the Strait of Malacca, the
Suez Canal, Straits of Gibraltar, and the
Panama Canal.
Ours is an oceanic world and the Soviet's
)ave studied well their geography and his-
tory including ThemistocIes who said hun-
? '.4.3ciA-I
rip ?Exteusions of Reniarks September 25, 1974
rebuild our warldwide trade, friendship,
peace, and to modernize the treaty with the
Republic of Panama to include the con-
struction of the sea-level canal on the
Isthmus to replace the outmoded, Japanese
made, electric driven mule-shiptowing under-
sized sixty year old lock-canal.
It is vital for hemispheric cooperation that
Congress support Secretary of State Henry
A. Kissinger's negotiations with Panama,
Latin America and Caribbean countries to-
ward the rebuilding of a strong Western
Hemispheric Pan-American Union in order to
create a new era of harmony and solidarity,
(Ire& of years agr - "He who commands the
sea has command t everything.' It is for
this reason that tk: Soviet T.Inior, occupant
Of the world's 11-.:!2est single landmass le
quietly building le world's largest mer-
chant fleet, and "a, the .etme nine it has
become the world n leading undersea power
with more comme ee-tiestroying submarines
in its fleet than a ).y nation has ever had in
war Or peace.
In an article wl.,n I wrote, entitled "Sea-
Level Canal Vital ,Petense Need", and which
was published in a syndicated newspaper,
Sunday supplemeAL on December 26, 1948,
I stated in part with reference to western
hemispheric secita I y as follows;
"This is evident ay the fact that plans for
the three-perirnete, defense of the Panama
Canal, outlined bc the Army, Navy, and Air
Force, cannot be put into effect at present,
"This defenee calls for bases on three
perimeters: the outer perimeter passing
through the Galaeagos Islands is. the Pacific
and Puerto Rico a, the Caribbean; the per-
imeter of the middle ring passing through
Nicaragua, Emead Costa Rica, Republic of
Panama, Colorribit , and Venezuela. The third,
inner circle is vie e in the Canal Zone.
"With the international situation tense,
there Is no time ;0 be lost in negotiations
with our Latin-A merican neighbors for the
defense sites so nmessary for the security
of the Americas."
The same issuer; about which I wrote in
1948, remain pre tent today.
Since Great Br asin granted Independence
to Jamaica, Darla dos, Trinidad, and other
islands in the CY;,..ibbean, we must rely On
surveillance from the naval base at 0
Unarm Bay ant the Canal Zone for t
protection of the "mama Canal which mea
in the event of ea emergencn, the Pan
Canal can only be defended from the ma
land of the Uniteti States.
, IATENT.: -DEFENSE-DEFEAVE
Despite detente, the Vaned States anti t
Soviet Union are in competition, if not
conflict for world eupreznacy. We have be
laggard in defer ee of what once was t
"status quo" and the building of a mode
navy. The United States is now under t
additional hantIca.p of overcoming ma
shortages besidee that of oil and petroleu
The Soviet tlinea backed the French sten
in the energy crise endorsing an independen
Polley, which Vie in conflict wall the Kis=
singer policy, and continues to use gunboat
diplomacy in the lvliddie East and Indian
Ocean.
Soviet militat, advisors and technicians
have arrived in Pe el with heavy Soviet arma-
ment puichaaeOty Peru. The Soviet Union
has been 'atternplaig for years tc gain a foot-
hold throughout aouth America. If we com-
mit another Asw ,a Dam mistake, watch the
Soviet's move th -.u.ghout Ecuador, Colombia
and Panama, Whet is there to prevent these
countries from aegotiating wits the Soviet
Union to build a na-level canal?
France entered into a defense and eco-
nomic agreerrien: with Tripoli (Libya) di-
rected against 4r; United States. The coun-
tries of Mexico; Peru, Aegentir a, Barbados,
Jamaica, Triaicrei, Tobago anti Guyana urge
the raising of tit-, economic blockade against
Cuba, which aril L be on the agenda of the
Organization ,af nerican State:: in March of
1975. Brazil, importing two-thilds of her oil
from the Middle Zest, was not interested in
or becoming cune'oiled, in Wasaington's dis-
pute with the A etb oil producing countries.
The United SI ',es is being otrabanked and
under-priced ti,etigholit world markets,
especiallY in La- In America and the Carib-
bean Islands by "Fest Germany, Japan, Great
Britain, Soviet - Tinton, Canada and other
European Comn Market Countries.
A new' and lirtter diplomacy is required
from our govern-.r-.ent to reconstruct and to
I am Convinced that the Foreign Relations
Committee of the 'United States Senate will
maintain close watch over current negotia-
tions with the Republic of Panama and the
new draft treaty when submitted to the
Senate for ratification.
By turning away mistrust, suspicion,
hatred and fear of the "Colossus of the
North" at the conferences with the foreign
ministers of South America and the Islands,
we may yet realize that wtih mutual co-
'operation, an era of harmony shall prevail
throughout the Western Hemisphere on
domestic as well as foreign affairs; moral as
well as material matters; political as well as
economic and technological advancement.
Americans have recently learned, during
the Arab oil embargo, that we cannot rely
upon our NATO allies, except the Nether-
lands, for political, military or economic sup-
port. We are only useful to them when we
fight their wars and rebuild their nations
with our treasures.
Let us not repeat history, but rather let
move forward with progress.
CONGRESS MUST PROHIBIT COV-
ERT CIA OPERATIONS
HON. JOHN CONYERS, JR.
OF MICHIGAN
IN THE HOUSE OF REPRESENTATIVBS
Wednesday, September 25, 1974
Mr. CONYERS. Mr. Speaker, I was
pleased to support the amendment intro-
duced on Tuesday by our distinguished
colleague, ELIZABETH HOLTzMAN of New
York, which wc?rit.-UFUTa'Y-e--m--"Vv bited the
use of Central Intelligence Agency funds
for the purpose of undermining or other-
wise "destablizing" the government of
any nation, More careful congressional
oversight of CIA activities and methods
is certainly long overdue. Recent revela-
tions of CIA activity in Chile, a nation
with which we claim to have friendly
and peaceful relations, are merely the
latest in a series of disclosures of CIA ac-
tivities which violate the United Nations
Charter and the principles of interna-
tional law we so piously encourage other
nations to adopt.
We know so little about the CIA that
we cannot even be certain if the CIA has
acted on its own initiative or only at the
direction of the President and his chief
national security advisors. Fortunately,
however, the veil of secrecy surrounding
the CIA is beginning to lift. A review by
Richard J. Barnet of Victor Marchetti
and John Marks' "The CIA and the Cult
of Intelligence," notes in detail some of
the covert operations undertaken by this
agency and the damage such operations
have caused. Mr. Barnet is codirector of
the Institute for Policy Studies and the
author of several books, including "The
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BEST COPY
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' September 25, 1974 CONGRESSIONAL kt COith?Extensions of Remarks
Itotits yy ar " "Tile ..c.nonOmY Of" Watergate -debate 'What is that higher
Nit. cause for which we ,aust stand accepted
-
I*3 _Ssile of the Ne-tAilrolit.-ReView
f-c-511-owst
, THE dIT'Li OF 11qTELLIGENCE
_ vlevibY Riehard J. Barnet)
Iii'd.'raffing-inipeaehment
clary -Corinnittee of the Rouse of RePresenta-
tivear,ch#red -Nikon' With "misuse of the
The jr,iore ftihdanientar ;.(?iestiori was
outside" the spte tiT' 'their inquiry: What is
the proPer U8e
? In, the, :riratiOnalTseenrity world Watergate
has becorne,:a-COdeWord-for '011leial dismay -
that the; WroggjPeOPie'ik'eYe'-'giiWfed"Wifh
fitting wigs and -btffglar `tools at the wrong
place and time. Rixon's defenders On the
committee argaed that if the residenthad
, reaScin tO tiink that the -CIA -wag-inVolved
in "proper" cOVert 'operations that would be
?_ jeopardized' by a -Vigoreine PM 'investigation
he Was indeed "obliged to mislead the chief
investigating a,ina`of the federal government.
., The president's accusers believed that he
Committed am impeachable offense by allow-
ing members of the intelligeriee underworld
like _Hunt and Liddy to go after-the-wrong
? - ,
targets. .
"Natforial, security" is the holy' oil that
converts felonious -- acts Into patriotic ex-
ploits. It has been sprinkled- liberally to
justify break-ins- at foreign embassies, but
' it is, fortunately, not yet available to bless
burglaries on rieverly Rills psychiatrists. /n
the piactise Of covert intelligence the work-
, irig tOois are burglary, assassination, extor--
tion, bfackmail, and lying. It is hardly sur-
prising that agents like E. Reward Mina
labor "under, ablne nieral confusion. The fol-
low/41z eXchange between RuntMid Assistant
Atterney Earl' Silbert tOok place before,
- a federal, grand j'arY in April', 1911
$),manaT, Now while you worked at the
White ItetiSe,_ were YOU eVer''''-a liartiCipant-
or did Yon ever have ink-other
46-called ,-"nag job" or entry operations?
RaNt No, sir.
Smaxirr. Were you aware of or did you par-
ticipate in any other what might commonly
be teterrect to as illegal activities?
Iursr. Illegal?
'es, sir.-
RalgT. I have no recollection of any, no
sir.
Sir.rsEar. What about clandestine
? 1-1171.1 Xis, sir.
81.1.43eirt. All right. What aboutthat?
FlItilr,_1'1U not-quibbling, but there's quite
a difference between sOrnethiiig that's illegal
and sprnething-that's-clandestine.
- -
?
EmnEat. Well, in Our terminology, would
ahe entryt into Mr: Pielding's' ttlaipiel
berg'S psytelnatriSti Office havebeen clandes-
tine; illegal, neither, or both?
kit
d_ simply call it.n entry
liOn-Certiclueted- under the auspices of
.,9Orbp_eient -ant ority.
ieSpnriSiii-ilinitrate--l'iYhat
;Marclieltii and Ictbri Marks eal-I the 'dander-
oaio. :r4ami,riti,. the state 'Of" mind '7ii,Vhich
liitelligence-effort.
' RicharCiii-Ae4, _former head Of -clandestine
Operations, onee'pirt- it That CIA men "feel
higher loyalty and . . . they are acting
inObedfente that higherIoytalty." That
'higher loyalty ii -a---d6-finitfori' of -
eeeutity" developed and eonifirdnics,ted
be0.01, by higher-ranking letireanerats. her-
inetiOally Sealed frOrM pit-bile ierutiny. "The
hation triukt to a degree take it on faith that
VQ.6 e are honer able; Men dev Oted to her
..terViee,," CIA DireCtor -Richard " Helms de-
clare:a in 1.6,7l. '1,406 is indeed a Cede of
honoi. 'oPet'ating_ In the iriteillgenee ifrielef7-
*arid, Yyhteh is Made _tif'nf People' who
sur-
pass 'Mat- of lie' in credicatien 'fa-a-higher
- cause. The question still obscured "in' the
norms of civilized ctptduct on their head?
Marchetti and Wia--!cs barely suggest an
answer to that cute,..- ,on in their heavily
censor
ed book The G I and the Cult of In-
telligence. the book r sminly describes the life
they observed when h.r.tielfetti was an aasist-
ant to the deputy dil-ector of the CIA and
Marks worked for the director of intelligence
in the State Departin, ,t. They make no full
analysis of the effec le of the intelligence
underworld on doinew.ic politics and foreign
policy. That book .:-en . Ins to be writ-;en. But
when it is, the effcrt ' Marchetti and Marks
to collect specific t ma on the structure,
finances, and operatiets of the CIA will be
an indispensable sou ,'e. For the increasing
numbers of conce rue I citizens who vaguely
feel they are being ,,nned by government
this book will be ::,1e.,irying and infuriating.
It destroys the CIA ,ficial cover story that
it has replaced its ,,pies, adventures, and
assassins with rows Princeton graduates
reading foreign new-,11apers. The following
passage, which the CT /t tried unsuccessfully
to excise, makes it clear how important
"dirty tricks" still are
At present the accney uses about two-
thirds of its funds ,,,nd its manpower for
covert operations as :I their support?pro-
portions that have br,ti held relatively con-
stant for more than ten years. Thus, out
of the agency's cares,' work force of roughly
16,500 peopte and y?-).rly budget of about,
$75,0 million _11,000 personnel and roughly
$550 million are earr i4rked for the Clandes-
tine Services and tht ,o activities of the Di-
rectorate of ManageTriont and Serv:.ce (for-
merly the Directorate, of Support), such as
communications, fo,ietics, and training,
which contribute to -overt activities. Only
about 20 perc.ent 61 the CIA's career em-
ployees (spending leS:; than 10 percent of the
budget) Work on if' Aligence analysis and
In formation proCessi.
Nothing its cate:,r of the agency's new
director, William Col my, suggests that covert
operations will now become less important._
Colby was an alum :us of OSS parachute
operations in France rnd Norway, director of
the 30,000-man Mee Armee Clandestine in
Laos, designer of the :..gency's "Counter Ter-
ror" program in Vi-Loarn (described by a
former U.S. Foren,n ;-re'vice adviser eci South
Vietnam internal se, tray programs as the
use of "Viet Cons. Je-hniques of terror-as-
sassination, abuses, -ednapings, ant. intimi-
dation?against tee V let Cong leadership"),
and coordinator of Phoenix program two
years later (20,587 "executions" of sus-
pected Viet Cong ' 1- two and a half years,
according to coiby's town testimony). Prob-
ably more than any ,rf his predecessors, he
represents the dant': alfie mentality. Mar-
chetti and Maki: .cribe ho* his upside
down view of the vo,s Id is taught:
He learnt that he must become expert at
"living his cover," at -)retending he is some-
thing he Ls not. Aw?iicy instructors grade
'the young operators on how well ;hey can
fool their colleague A standard exercise
given to the studem spies is for one to be
assigned the task of 'inding out some piece
of information abm 0. another. Since each
trainee is expected t maintain a false iden-
tity and cover durin _; the training period, a
favorite way to coax ,it the desired informa-
tion is to befriend tie targeted trainee, to
win his confidence iid make him let down
his guard. The trairy,-, who gains the infor-
mation receives _a h:zti mark; his exploited
colleague fails the t.:.;t.-The "achievers" are
those best suited, in Ce clew of the agency,
ior convincing a fo?-,Agn official he should
become a traitor to is country; for mani-
pulating that official, often against his will;
an for `_terrinitiatir," the agent when he
has outlived his tisel-;isiess to the CIA. .
Most operators Si hiConalstency be-
tween an upstanding :priiiate life and immoral
or amoral work, ani they would probably
E3119
say that anybrie Who Couldn't abide the
dichotomy is "soft." The double moral stand-
ard has been so completely absorbed at the
CIA that Allen Dulles once stated, "In my
ten years with the Agency I only recall one
case of many hundreds where a man who
had 'joined the Agency felt some scruples
about the activities he was asked to carry
on."
The authors describe some of these "activi-
ties:" Colonel Lansdale's "psywar operation"
would ambush suspected Huk rebels, punc-
ture their necks "vampire-fashion with two
holes," hang their bodies upside down "until
the blood drained out" and put the drained
corpses back on the trail to scare off their
insurgents. (Enterprising agency anthropolo-
gists had discovered that even revolutionary
Filipinos in the area would melt at the
thought of encountering a vampire.) The
CIA broke into a bonded warehouse in Puerto
Rico in order to contaminate Cuban sugar
stored there. Tibetan refugees trained in
Colorado raided mainland China and stole
mailbags. The Green Beret operation in Peru
in the mid-1960s secretly provided helicop-
ters and arms, as well as counterguerrilla
training, in a "miniature Fort Bragg" deep
in the jungle. Secret operations in Southeast
Asia were carried on under the cover of Air
America, Southern Air Transport, CAT, and
Air Asia. Mountain Air Aviation "served as
a conduit in the sale of B-26 bombers to
Portgual for use in that country's colonial
wars in Africa."
Since Marchetti and Marks did not take
part in such covert operations, their account
of them relies largely on inside 'gossip and
outside resources rather than direct experi-
ence. Although they add a few new details to
previously published accounts of CIA opera-
tions in Indonesia, Tibet, Bolivia, and else-
where, they do not take us much beyond
Thomas Ross and David Wise's The Invisible
Government, a brilliant piece of investigative
journalism published in 1962. They do give
the best available description of what the
agency looks like at the top, particularly its
structure and mystique. No one has yet been
able to give a full picture of 'what agents in
the field do, although a book about to be
published in England by Philip Agee, a secret
agent in Latin America for many years, may
begin-to fill this gap.
The agency itself has confirmed the accu-
racy of The CIA and the Cult of Intelligence
by its extraordinary efforts to censor it. So
far their efforts have been largely successful
and have cost the publisher over $100,000 in
legal fees, as the CIA is no doubt aware. One
hundred and sixty-eight passages are still
deleted pending the ruling of higher courts
and almost 200 more passages were restored
only after persistent negotiations. The latter
appear in boldface type throughout the book.
By examining the bold-faced passages and
filling in some of the gaps one can, thanks
to the diligence of Jack Anderson, gain some
insight into the minds of the CIA officials
who seem so worried about this book. They do
not mind taking credit for the 1954 "coup"
in Guatemala but don't want us to know
about Indonesia capturing a CIA pilot who
carried out secret bombing missions against
the Sukarno regime, something that has been
public knowledge for years. They are uneasy
about references to CIA guerrilla raids against
North Vietnam in 1964 at the time of the
Tonkin Gulf affair even though the raids
were revealed in the Pentagon Papers.
For the most part the deletions appear to
be based on concern for public relations
_rather than for national security. The Rus-
sians are undoubtedly aware of the ricticu-
-leuS incident in Tokyo when C/A and .XCII
operatives scuffled over a WoUld.:15e Soviet de-
fector and were carted off by the Japanese
police for ditturbing the peace-Vhe American
public is not. The Chinese know about the
niothitain-climbing crew that installed a nu-
clear listening device which collapsed and
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20 CONGRESSIONAL RECORD --- ateusions oi Remarks September 25, 19;4
oteitsminseed the Ceeeht el-ee 1111-1" e`311-
mlesieneitt do not know about cush evertniely
reuvocatere onneattone
The CIA also does not like references to
la cavalier Use of clandesttee feuele, such
as Robert. McNamara's. secret transfer al CIA
funds to Nonni? in 19e7 wima the Pentagon
military aselistance budget ran -there or
Lyndon Johnson's use of -The Directors
Contingency -Pend' to supplement the :3tate
Department% entertainment allowance dur-
ing an OAS meeting in Uruguay the same
yean The CIA a/ae cut references to its 1. as of
secret fends to play the stock market for the
mem regions of "national security" that
Richard Klemm used to protect private and
public wrongdoing
That Willy Brandt took money non the
CIA when he was a young politician alter
the war might have been politically em-
barrassing to him, but to impose uroon-
stitutional censorship la order td i ueeress
that, fact is more than se owe even inc moat
cooperative foreign politician That tee so-
called Penkorske Papers were an mem,
forgery has been one of Washington's wont
kept secrets. It was an elaborate but quite
useless prank, fun for those in on the Joke;
nothing Is damaged by revealing it eecept
the reputation of the CIA. Bugging limmlin
limousines sounds liko the ultimate in
espionage coups, but in fact It produeed coley
the gond') and trivia one would expect. Per-
haps this Information ens useful in prepar-
ing the famous peychological profiles In
metiers the agency specializes tutees., of
course, it was too secret because Its
source to entrust to psychlanistan ee tam
In the US was wiser or safes for it.
The CIA's spies, buggern odee mite hers,
crop contamtaators, covert philanthropists,
and teem political manipulators lee In an
sitmeephere of pretentious banality. Vast
amounts of money, time, and merge are
expended in designing signet tree:emitters
that can fit in a false Moth, In an:main&
gossip on the eating, drinking, and sleep-
ing habits of political figures arourd the
world, and In caring for defectors, the
agency's principal "assets" in comm inlet
countries. (Colonel Peukovsky was ghee a
emelt CIA Medal and a US Army colonel's
uniform as assurance that transfer of al-
legiance wciuld involve no lose of retake
Other secret activities ouch as overflights of
the Soviet Melee, Chine, and Albania, elec-
tronic surveil:thee by ships off North Korea
and Isrsel, hidden bases in Pakietan and
elsewhere involve =Itch higher cost- than an
occasional stage prop. We know of WO latuy
CIA missions that not only fallen -e g the
17-11 and 1133-70 overflights in the Snict
Union and the unhappy tome.. of the
Pueblo and the Laken yo-4/1.1i r eems
risk* of provoking war.
Secret bane and secret armies e hick are
intended to "open up the options" ior 1:13
foreign policy have a way of doing precisely
the opposite. Once the secret base le eetab-
lishod, its 'Mover' must be protected. Coesich
mettle crincessions have been made to Paki-
stan, Ethiopia, and other couz tries to protect
snob "assets." (One of the reasons hy fresh
dent Kennedy decided to go throurela with
the Bay of Pigs adventure, In spite of mis-
givings, was the fear the Cuban execs in
the training camps would talk if they were
not staked to an invasion.)
What Ls it all for? Although the,e la
rampant glib:tees in the intelligence wider-
world. It is also a neceesary inatitutIgn for
managing a modern empire. While the fail-
ures are spectacular, it is the successes that
mese the motet important lenses. No one can
quarrel with the need for intelligence. ahlch
is merely another name for informatica on
which to time decisions. But the CIA Is
spending a major share of its budget on
covert Meilen, which is not information-
gathering at au, but secret warfare. Bissell
has cetalegued some of the activities of cov-
ert salecar epecialletri;
(1) Political advice *tad counsel;
al Awl:oldies to an ingividual;
(3) Stu-meal support and "technical
eirearice" to political parties.
(4) eupport of private organizatlons,, in-
Lit.ding labor unions, butanes; firms, coop-
crete ea, etc,;
(5) covert propagaiida; (6) "private"
raining of Individuals said exchange of per-
sons: (7) economic open:nous, and (8) parte-
military for' poliUcal action operations de-
recited to overthrow or support a regime.
're rrutnage political and social change
emend the world and to oppose national
revolutions, as in Chile, Is a "responsibility"
that requiles covert acelon. As long 115 the
I'll maintains its extreemaet policy of try-
ing to make the world bate for established
mettical and economic power, there will al-
1w men like Colby, Mamie and Hunt
reedy to Ile steal, and kill In that higher
elite. Indeed there are many reasons why
the CIA new seems e note political instru-
ment then erre ineteding the improved
technique!: for "low erotic" interventions,
ter growing desire to control resource-pro-
sier-Me TeIrci World coentries, the increas-
ing difficulties in mounting conventional
milttary operations abroad. If we do not
wish to use the etate in legitimize criminal
nettle/ at home and abroad, then we must
stop /nine to set the ennelitions for the In-
terne) development of other nations.
In 1903 Rarry Trurnah said that he was
"diturbed by the way CIA has been diverted
'rowi its original aselmunent. It has become
en eparetinnal arm and at times a pelIcy-
making arm of the Government." But fifteen
"ears metier he began the process by meat:-
Mining the Mee of Polley Coordination, the
fleet pewterer "dirty tricks" operation. Mee-
Feted terttetriftl arenteite Intelligence Direc-
t/ere broadened its scope giving It, among
caner powers, the stale:My to question
smernant /Mont their ferelegn travels and to
ewer Into contracts with American =leer-
!lees. Once the cold war defined the Amer-
teen national purpose, lethal pranketerism
tecemeit enowlne Indintry. The CIA's left.
? Macy, enee accepted, cannot be effectively
controlled, as the sorry record of the Senate
"witchder" committee attests.
It is hard to find public defenders of
"dirty tricks" these dam. Despite the (tri-
m-rice now coning to tight about the agency's
sees le the Greek coup of 1967 and its gen-
creel payments to high Mexican ?Metals, the
only clandestine activity to which the CIA
admits is covert Intelligence collection. How
,'bo. ("Mb, asked recently in a speech to the
le- Angeles World Affairs Council, can we
eel nnformation on the Intentions of other
tneeere"9 The revolution !n technical Intel-
cerce-gmhering of the pant twenty years,
ee points out, has "not retrieved the need to
Identify et an early stege research abroad
Ito ome new weapon syetem which might
!hreeter. the safety of cur nation."
Richard Bissell hAs provided us enough of
a cling:eh Into the 'intelligence community"
to expose the clisingenweisness of this state-
ment Clandestine intelligence collection is
entre Olt, directed against those societies
least !dile to hurt us because these also hap-
pen ti he I he seeleetes 'emit able to protect
them! elves from pence-melon. The Soviet
Mem, mince such a bilge investment in
couoterespionage that, exoept for an coca-.
Mortal defector like Peekovsicy, most of the
infonnathei about their Ii teetions has to be
pieced together from open sources. Powerful
countries, the Only plate Pole !enmity threats,
clan develop sophisticated codes that are, as
reenntlogiet Devid Kahn pute It, "unbreak-
able in practice." In UM rebid Gmeler of
the !fatten c-M
:a Seite ency admitted
privately siccoreiMg to Marcbetti and
inarhe "thee a good part of the NASA's sue-
lassos came Irom breaks" into embassies and
oteser placee where cede books can be stoien.
This it Is possible to break the codes of
wee Third World countries such as Chile.
"Ores surreptitious entry can do the Joe
sutt essful at no dollar cost,- the authors
of tee 1970 Huston Plan reported to Pres-
ideet Nixon. But such cheap petty thievery
promeces information the US government
dem not need or should not have.
The reason the underdeveloped world "pre-
mixes greeter opportunities for covert intei-
leielne collection," as Richard Bissell ex-
pled led to a Council on Foreign Relations
stur.y group in January, 1908, is that govern-
ments "are much less highly oriented; there
is hes security consciousness; and there is
Ape to be more actual or potential diffusion
of power among parties, localities, organize-
Leon s, and individuals outside the central
goveruanents." Thus, the same internal aus-
pice na, rivalries, and bribery that keep poor
nate ms from effectively organizing them-
mites to overcome mass poverty make them
atuecteve targets of the intelligence under-
woeid. Real and exaggerated fears of being
Mil) rated help to keep such societies in a
continual state of political disorganizatiore
As t issell points out, the less totalitarian the
society, the easier it is to find out and to in-
nueece what goes on there. Salvador Ol-
lie:nen tolerance of forces opposing hun
made it easy for the CIA and other Intel-
negates egeneles to work with them to hasten
Moen argues that espionage in the poorer
countries is needed to produce "timely
knomeedge" cd "tactical significance." In fact
meth clandestine collection of information
series no purpose other than to support
comet activities that subvert foreign regimes.
Beset himself concedes that sometimes "the
taste of intelligence collection and political
acti.n overlap to the point of being almost
indietinguishable." For what legitimate pur-
pose does the United States need to immerse
Mar in the internal political developments
of bird World and other countries which
pose no threat to the security of the United
Stitt a other than the assertion of their own
indgpendence?
tO usual argument for a large secret war-
fare department is that other nations have
theri too. The "clandestine mentality"
pen ides the Soviet Union. and the record of
the KGB for murder, theft, torture, and
forgiry is probably unmatched. But do
el-Mina' activities of other countries require
us to maintain our own? Certainly it is neces-
sary to carry on counterintelligence work
against penetration and manipulation of our
government and theft of military secrets.
But there is a difference between such de-
feneive counterespionage operations end
seer 't warfare against other nations, al-
thot gh there is always the risk that the one
care be disguised as the other. The "gap" in
dire tricks (if indeed there is one) is no more
just /Lenten for the United States to corrupt
our, ewn society and distort our foreign rela-
tion 3 than the "missile gap" or the "bomb
sniff en gap" of the 1960s. ?
Lice all other arms races we have been
ruining madly against ourselves, the "back-
atm -war," as Dean Rusk calls it, could be
dratically cut down on our side with a net
gain in security for the American people.
'rtife is so because most of the information
so menelvely and dangerously procured by
lestine means often turns out to be po-
nt Sly worthless. The work done by spies
Is inherently suspect because specialists in
espionage are In the business of producing
dish formate:us as well as information. In-
deed the more esoteric and elaborate the de-
cep on required to produce a given bit of
date, the less likely are the spy's political
superiors to believe it. Thus some of the
gran; intelligence coups of history?the ad-
vance warning to Stalin of the impending
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SSIONAL ItECOt -- Extensions of Kemarks
eptelAber 25, 1974 CtiNdRE
German attack; for 'etalinaleavere rieVer
translated into effective policy (as more re-
' 'n gy7the Warnings-of the Defense Intent-
'figelibrthat the Egyptians and Syrians ?
fibeMt to attack in October, 1973, were
lesSiet 13Y -policy -Makers). Meanwhile the
briberrblatkmall, and theft that produces
-
piles otekedOrdings of foreign politicians,
phekotriaris or documents, and dossiers on
friends alid'enerilles breeds fear and distrust
Of the'en'ited-gtated aretind the world. The
blufadefalifitt Petty triumphs of US agents
abroad iiaVetirolve Mote to damage the repu-
tatioridt the-rnited States for trustworthi-
neaS difecliZeiTCY-lhan all the machinations
of tile' tdiff.' -
For the PrOtection of our own society the
"dirty tricks" -department must be recog-
nized tit Viet it is, a criminal enterprise.
pismdutIin _ P greappear-
ance
Wand -"revetitin its 1.0 _newer' and slicker disguises woUld
,be One 'OttY-ie first acts of a new administra-
tion ,gerittinelf c.oheerned to preserve con-
stittitional liberty and to stop the wreckage
our Paid pranksters are -causing around the
world.
_
WHAT THE 'PEDEBAI: GO
,IVfOTT .CAN DO ABOUT Rig
[ON. RILL FRENZEL
or ISINISRSOTA
irT,PHE ?HOME OP At PftESE:NITATIVES
,
Fe:dne0-ay,S'eptember 25, 104
Mr. Speaker, no Prob-
lemla marelmpbrtant to-Eill Americans
?'then itopping Inflation. Constructive
lideas are badlyneeded?especially for
action by the Federal Government which
has the respontibilitY to take the lead
.in the light against inflation. On Sep-
tember n President Ford received just
such a list of proposals Which I would
like to insert in the RECORD for the con-
. sideration Of all Mernbera of Congress.
This statement was prepared by Willis
D. Orra,disori, Jr., former 'Mayor of Cin-
.cinriati, and noW'a candidate for Con-
greSs in Ohio's First Congressional Dis-
trict. After earning his doctorate at the
Harvard. Business School,' Mr. Gradison
seryed in Washington as Assistant to
theUnder Secretarsr of the Treasury and
later as Aisistant to the Secretary of
Education and Welfare.
_ _
The list of proposals
- $neTkiiiieta. 25, 1974.
The PREMEIIT, ' The White lloitSe;
ctShing ton; D.C.
tSiil1k. piEeibk4T: I 'appreciate thl
poittinitY ti Confey- to you and yo ad-
visors the ' attached recorrimendati s' on
hat the "FerlerargeiVernilielit can fihout
-the _inflationary &isle Vlach gri our Na-
tion an the worI& These icl-esis my own,
-tint do - lake into account th tiggestions
AVhieh have 'cola-to -Me fro itizens from
al Of 'life in Ohio'd irst Congres-
, _
cRPs DistrIct. _
$ I see it all_Ameriean- all Parts of our
ficariY-s--are looking to'lraShington for a
signat that halting inflation will be our Na-
tions top priority and that first steps in this
,Xliration will be taken. novf. The clearest
ign that cOuld be" gliren *Mild be for you to
, eta on the CongretS to remain in session
Until i.f,61.3U the spending "rate (not" appro-
? pflatioria, not authOrizations, but -Spending)
t4 an anrinaL rate of $300 billion or less for
tbe current ,fisZaleilyear. ?futther sug-
gest that You cate that if the Congress
Is not able Or willing to prescribe the needed
'spending cuts, you Vtrild be willing to have
Congress grant author- y to you to make the
needed reductions.
If I can be of furti.er assistance, :C stand
ready to assist you ami your advisors at any
time.
Respectfully, yo: cs,
Wu. IS D. Gicsmsoli, Jr.
-
WNAT THE FEDERAL , ,LVERN1VIENT CAN Do
ABOUT I ,41,LATION
World-wide lunatics_ has resulted from ex-
cess demand coupled di an inadequate sup-
ply of goods and servi s. Rising living stand-
ards are pressing ar,,inst finite resources.
Life-time savings are Aug confiscated, thrift
discouraged, and the spector of unemploy-
ment caused by infial in haunts the working
en and women of or Nation.
Price competition ,icis been restrained by
onopolistic practice-4 and shortages of pro-
ctive capacity. .Assi government actions
ave intensified the inflationary tendencies
y counter-productn., fiscal policies and by
pattern of politica: sromises with costs far
n excess of available eevenues. This buy now,
pay later attitude n est end. In performing
on its promises for m -we spending (validating
the voters' expectatir is and stimulating even
larger pressures for future spending) the
government has ion A a tax in the form of
Inflation to pay for its inability to balance
its Income and ruft=st or? to resist politic'
pressures.
While this arialy$Th is based on what/the
Federal GOverntrieril can do about hill lc&
we must recognise :rat it cannot def tth
all aspects of the ,,roblern. The ptic in-
creaSes' exacted by ',lie major oil jo5Tucing
nations, crop shorts i,es in the SIe,t Union
or the Peoples Rep i Ale of Chimi, Monetary
instability?these a in other eis are be-
yond the power of ur gove ment to cope
with (at least in t shortluri). Obviously
industry and labor r ave Miajor roles to play
in successfully cont Join Onflation. but right
now the question is ,,i-ho4Iliou1d take the first
step. And it clearly iii*itsbe the government
itself which must ,vcognize its leadership
role, and that it cannot expect others to act
until it acts. .4- -
What then cat' :tie Federal Government
do?
1, Fisc 'y and the budget
The cu ?ffects of huge Federal
deficits h required large Federal borrow-
ings and1jlt,,ese in t. 'en have absorbed savings
which hSrwise suld have been available
for j -creating ca,,ital investment and for
hou : Sound ro ...tiagement of Federal fi-
ne ffg in recent rars would have required
s luses, not defii irs. The rapid :.ncrease in
eliding Coupled with the expansion of
redit-guarantee vograms has played a ma-
,Itir role in the prea,nt inflation. The current
situation calls for t cut in spending rather
than an increase -i. taxes, since the latter
would likely be t as a justification for
even higher ottia Spending cuts should
begin in the Fedeciii Government's own pro-
grams, not only to c strain demands on Credit
but also to increay,, the productivity of Fed-
eral spending. Exa inples abound where cuts
should be made:
The postal cleric with its hidden subsidy
for newspapers ard magazines.
Other busin.?sis ,ubsidies such as ship-
building, Pent iutral. Lockheed, private
airlines.
Space projects ,?11.1.ch could be spread out
over a longer per d of years.
Agriculture whr--,i acreage restrictions and
price supports silt =rid be ended f sr all crops.
Livestock loan, which keep :neat prices
from falling as Aictated by supply and
demand
Overlapping 1,114 rare programs where too
much of the Feral dollar is absorbed in
administration a- the Washingi;on and re-
gional levels.
Poor administration such as ADC in Ohio
with 28.7% of all cases ineligible or receiving
overpayments.
Coupled with a pruning of existing pro-
grams all new expenditure programs should.
be deferred until revenues are available to
pay for them, or cuts in oldeg programs free
funds for more urgent avities. A good
place to start would be e construction
projects of the U.S. Corp f Army Engineers
such as the Red River gorge in Kentucky.
2. Monetary polic,7id. interest rates
For years monetar olicy has carried the
laboring oar in the ght against inflation,
with fiscal policy ally pulling in the op-
posite direction., S effective fiscal policy
moves from spa , es and promises into ac-
tion steps tow iMs monetary ease will fol-
low. Without Stern action by the Federal
Reserve the inflationary situation would
have been ?' worse; but as we have seen
such actio Cannot do the job alone. We are
at a criti 1 stage where even higher interest
rates 1,c1 cause a massive flow of funds
from t rift institutions, an even more severe
drop n housing than has already taken
pla , and require rescue operations by the
Fe' -ral Reserve and the Treasury which
fild all but doom to defeat further efforts
op inflation.
J. Taxation
'-' The time for tax reform is always with us,
/ and changes are obviously needed in the in-
terest of equity and to assure that everyone
carries his fair share of the tax burden. With
reference to inflation, however, tax reform
takes on a new dimension, namely the need
to stimulate expansion of productive capac-
ity, research., and development. This need
not result in favoritism to anyone; merely a
removal of present restraints on savings and
investment would help. For example, utili-
ties, which have huge needs for capital and
expansion, receive an investment credit of
only 4% while the credit in other industries
is 7%. Depreciation allowances are based on
historic cost rather than present (and
higher) replacement cost. Individuals can
exclude from income a portion of dividends
received but not of interest on thrift ac-
counts (which are the main source of funds
for housing). And while the tax rate on in-
vestment gains has increased, the oppor-
tunity to writeoff losses against other in-
come continues to be severely limited. In
this regard leadership is needed from the
Federal level in educating the general public
to the need for savings, thrift, and invest-
ment, and to the way in which prices, job
opportunities, and consumption in the fu-
ture are related to capital creation today.
4. Energy
Until the Federal Government establishes
the ground rules, expansion of energy output
is likely to lag. Taxation, price regulations,
rules with respect to coal mining on public
lands, environmental standards and other
aspects of public policy all bear upon the
ability and the willingness of energy com-
panies to commit the resources needed for
expansion. Such policies should be developed
with the objective of stimulating output and
fostering research, not with a spirit of vin-
dictiveness or hostility. The need for capital
is so great and the opportunities for invest-
ment of capital outside the energy field so
large that unduly harsh government policies
would discourage investment and intensify
both energy shortages and our dependence on
foreign sources. A Presidential veto of the
Energy Transport Security Act would be a
signal that energy prices will not be per-
mitted to rise unnecessarily.
5. Federal regulation
Over the years Federally sanctioned rules
have inhibited competition and indeed led
to price-fixing in many industries. All such.
limits on competitive prices should end. Ex-
amples abound ranging from freight rates
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