WASHINGTON OBSERVER NEWSLETTER

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP83-01022R000100220001-9
• Release Decision: RIPPUB
• Original Classification: C
• Document Page Count: 8
• Document Creation Date: November 17, 2016
• Document Release Date: July 31, 1998
• Sequence Number: 1
• Publication Date: May 18, 1967
• Content Type: MF

Approved For ReIea000"/02 : CIA
DD/S 67-2655
18 MAY 1967
MEMORANDUM FOR: Director of Security
SUBJECT : Washington Observer Newsletter
1. There is attached a copy of the Washington Observer Newsletter
dated May 15, 1967 containing an article entitled "Murder in the CIA".
Please take this up with the FBI noting the allegation contained FOIAb7
in the article and advise the Bureau that there is no truth whatsoever to
the allegation. Also, please ask the FBI what action it is willing to take
on this matter. The FBI could well ask the Observer, in light of these
allegations on which they claim to have documentary evidence, to produce
such information under the FBI's responsibility under Executive Order 10450.
2. Please advise promptly of the results of your request of the
Bureau.
Deputy Director
for Support
Approved For Release 2000/09/02 :
 WASIIIN
GTON OBS]3RVER
rrEmszE rrrrz
"Thw that can give up essential liberty to obtain a little temporary safety deserve neither liberty nor safety"
BENJAMIN FRANKLIN
MURDER IN
THE CIA?
A fantastic story which should be
checked out by a federal grand
jury has been revealed to a few
favored reporters in Washington. It
involves possible treason and murder inside the sacro-
sanct Central Intelligence Agency!
Three loyal employees of the CIA are alleged to
have discovered the existence of a Soviet spy ring
inside the CIA. They reported this to their superiors
and subsequently each one met a violent or mysterious
death.
One had his throat cut in Madrid. Another was
found dead in his Washington apartment but no cor-
oner's inquest was held and his body was cremated.
The third-'a' woman - jumped or was pushed from
the roof of her Washington apartment.
What happened to the head of the Soviet spy ring?
As soon as he was accused of treason, he was trans-
ferred to the Bureau of Intelligence and Research
of the State Department where, on the famed
seventh floor of the State Department building, he
now contributes to the policy-making process in the
crucial decisions affecting the security of the Nation.
Naturally such a dedicated worker is privy to the
highest classified secrets.
If a grand jury wants to look into this tale, WO can
supply documentary evidence.
MINORITY
BULLDOZER
On May 4, when the
ploymcnt, Manpower and Poverty
subcommittee, chaired by Sen.
Joseph S. Clark (D,Pa) convened,
a parade of witnesses testified in behalf of S. 1308,
co-sponsored by Sen. Clark and Jacob Javits (R,NY),
ranking subcommittee Republican, but there was only
token opposition.
S. 1308 gives the Equal Employment Opportunity
Commission sharp teeth to enforce its mandate against
job bias. This bill will give the EEOC power to issue
enforceable cease-and-desist orders against raclnl dis-
crimination in private employment and can be applied
both against employers and labor unions.
Failure to comply with the EEOC can result in im-
prisonment of one year and $5000 fine on each count.
Furthermore, wilful failure to keep required employ-
ment records or falsifying records or failure to submit
required employment reports to the Commission carry
penalties of $5000 fines and one year in prison.
Last year an identical bill was reported out +nf the
House Labor Committee and slipped through the
House in record time but got held up in the Senate,
where chairman James O. Eastland (D,Miss) of the
Judiciary Committee tried unsuccessfully to get it
referred to his committee; finally the bill was referred
to the Senate Labor and Public Welfare Committee
where chairman Lister Hill (I),Ala) got cold feet about
pushing it through in an election year. But he has
now promised LBJ that he will report it out this
session of Congress.
An EEOC legislative aide has revealed to WASH
INGTON OBSERVER that it was decided to put the
new enforcement measure through the Senate first,
where the Administration expects some opposition
from southern senators on the floor, but not in com-
mittee. The aide says that only negligible opposition
is anticipated on the House side after the Adam Clay-
ton Powell controversy has subsided. Smiling, lie says,
"Everything is in the timing - and the President is
going to do a bit of arm-twisting this time."
CHAMBER
OF HORRORS
hated to LBJ.
The once respected U.S. Chamber
of Commerce, which valiantly stood
up against FDR, the New and Fair
Deals, has now completely capitu-
The Chamber's minions are playing footsie with the
Rockefeller-Cyrus Eaton clique and the Soviet gar-
rison in the State Department to promote East-West
trade, despite the Chamber's sad experience in 1946
when it sent Eric Johnton to Moscow to make a trade
deal with Stalin.
The Chamber's house organs will soon begin run-
ning a series of articles boosting the East-West trade
theme. The Chamber's representatives are already
sitting in on secret talks with Amtorg, the U.S.S.R.'s
official trading organization, in New York.
The national Chamber of Commerce exerts powerful
influence on state and local chambers and frequently
persuades merchants of Mnln Street to lent t'1es'snte
on Congress In behalf of the fat cats who run the
Chamber. If Chamber President Allan Shivers and
his lads apply this "grass roots" pressure for Fast-
West trade there is nothing to stop LJB from selling
strategic war materials and armaments to the Soviets
on long-term, low-interest prices. A few big manu-
facturers will make a killing (financial) while their
goods will be used to kill American GI's in Vietnam.
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 Approved For Releas 20( 1/i 2 : CIA-RDP83-01022R00010
JUGGLING
FOREIGN AID
LBJ has made much over the fact
that this year's All) request repre-
sents the lowest figure ever submit-
ted to Congress in the history of the
program. It should be noted, however, that the con-
temptated reduction in this case results from the trans-
fer of an estimated $232 million in military aid-in-
cluding programs for Laos, Thailand, NATO and Inter-
national Military Headquarters and Agencies--to the
Defense Department's budget. The total outlay request-
ed, which amounts to $3,126,420,000 for both econom-
ic and military assistance, still exceeds by $190,930,000
the amount actually appropriated by Congress last year.
LB.1 has scaled his request for a five-year-authorization
down to two years.
WHERE YOUR
TAXES GO
Now that the last ounce of blood
has been squeezed from the good
old tax payer again this year and
more people have had to borrow
money to pay their taxes and fewer are receiving re-
turns every year, where does your tax money go? The
Tax Foundation says the average income tax of $1,114
on a $10,000 annual salary is split this way: $623 for
defense; $117 for interest on the national debt; $93
for health, labor and welfare; $51 for veterans; $44 for
the space program; $40 for international affairs and
finance; $34 for commerce and housing; $29 for natural
resources; $26 for agriculture; $23 for education; $23
for general government costs and $12 for miscellaneous
Federal expenses.
The interest on the national debt is more than five
times the amount we spend on education. Welfare has
crept up to third place in the wealthiest nation on
earth. As more taxpayers are forced to borrow money
to pay their taxes each year and as the refund gets
smaller and goes to fewer people, perhaps some day the
taxpayer will care enough to vote the big spenders out
of office.
LBJ's
PR
LBJ vows he is against electronic evesdrop-
ping except in matters relating to national
security. Here's how it works: phone calls
of Government officials are monitored regu-
larly by Federal security officers and recordings taped
if determined "pertinent."
President Johnson gets investigative reports about the
contacts between newsmen and top Administration offi-
cials when they are "deemed pertinent or informative,"
according to Presidential Press Secretary George Chris-
tian. This, of course, has nothing to do with national
security, but LBJ is jealous about underlings taking the
bows in the public spotlight. He wants to make all im-
portant newsworthy announcements except on unpopu-
lar topics-these he delegates to Vice President
Humphrey.
BUY BONDS
OR ELSE
American GI's arc not only com-
pelled to fight and die for their coun-
try, but also dig down in their pockets
to help pay for the Vietnam war by
buying Government bonds out of their meager pay, ac-
cording to incontrovertible evidence amassed by Sena-
tor Sam Ervin (D., N.C.) chairman of the Constitution
at Rights subconm itee.
A committee report says: "A private at Ft. Hood,
Texas, was called a communist and threatened with de-
nial of promotion because he refused to participate in
the bond drive. Another private wrote that he and his
comrades were threatened with K.P. on week-ends if
they didn't buy bonds. Eventually, the battalion com-
mandcr was presented with his own Minuteman flag
for obtaining 100 per cent participation."
Another soldier wrote from Germany: "It is the
policy of this Battery that in order to get promoted, one
must have a Savings Bond." A private wrote that his
sergeant had trumped up a minor disciplinary charge
and then offered a choice-take the punishment or take
a bond. He took a bond.
A captain in Massachusetts stated that junior officers
are expected to display their military leadership ability
by getting 100 per cent participation from their units.
This officer said that after seven years of such pres-
sure, he had finally adopted the practice of contributing
his own money to cover those of his men who did not
wish to participate. "In that way I can meet the goals
set for men and still live with my conscience," the offi-
cer said.
Senator Ervin is trying to call a halt on the pressure
tactics in what he calls "unseemly coercion" in military
units. Some PFC's and privates, supporting families,
don't have funds to buy bonds, others feel that they arc
doing their bit in fighting a war, so why not let the war
profiteers buy bonds and make an extra profit.
Recently Ervin received a letter from Vietnam signed
by more than 30 enlisted men expressing support of his
subcommittee's efforts to end coercion of these same
fighting men.
KEEP THE
The cause of civil rights in America
would be further ahead today if it were
FAITH, ADAM not for Adam. Clayton Powell.
Because of the explosive situation
created by the Powell case in the House of Representa-
tives, Democratic and Republican leaders have decided
to delay further consideration of civil rights legislation
until the fate of the Harlem Democrat is decided.
That's the report which the House leaders gave Presi-
dent Johnson during a recent White House legislative
meeting. They told the President that if civil rights legis-
lation were taken up in the House that the backlash
from the Powell fight would kill all civil rights legisla-
tion.
The leaders urged the President not to push the legis-
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 Approved For Release 2000/09/02: CI - -
lation at This time in order to keep it from being dc-
fcatcd.
Congressman Emanuel Ccller (D., N.Y.) Chairman
of the House Judiciary Committee, agrees with this
strategy.
What disturbs many of his committee is the recent
organization of a "Conference of Negro Elected Offi-
cials.- No comparable organization of white people is
in existence, nor is there any such assembly of elected
officials who happen to belong to any other racial or
religious group,
Former Congressman Powell plans to address this
group on May 26, when he is expected to announce the
formation of a "Third Force" political movement. The
meeting will be. in Los Angeles.
There have been in recent months, moreover, cries
for a "Crusade in the ranks of Black Power." By ad-
dressing the new all-Negro group, Powell hopes to take
over as one of the leaders of this movement.
Senate leaders plan to push civil rights legislation
first. The President's program is being split up so the
proposal for "open housing" will go to the Senate
Banking and Currency Committee, where it stands a
chance of being sent to the Senate floor.
In the past, this controversial legislation has been
bogged down in the Senate Judiciary Committee headed
by Senator Jim Eastland (D., Miss.) a bitter civil rights
foe.
There are indications that the Powell fight will con-
tinue in the House for the session since polls indicate
that members are in no mood to let him take his seat.
Powell's backers say they will carry his fight for a seat
to the Democratic National Convention next year if
the (louse refuses to seat the defrocked Harlem Demo-
crat.
If this happens, the Powell issue could become the
major issue at the coming convention. It also might
give Senator Robert F. Kennedy (D., N.Y.) the issue
he needs to challenge President Johnson for the nomi-
nation. Kennedy favors Powell's seating in the House.
Although a Senator usually keeps out of House affairs,
he has been urging members to seat Powell,
Significantly, Kennedy is the choice of Powell's
"Third Force" backers to be their Presidential candi-
date in 1968.
While Bobby would rather wait until 1972, several of
his advisers are slowly moving into a position where he
may have to be a candidate in 1968.
PRIMARILY
NUNN
Louie
within a
oral Catholic from New York."
Vast quantities of "Romney" money, thought to
emanate from Rockefeller Center, is flowing into Ken-
tucky.
Cook has a record of being a party spoiler and once
tried to read popular "Gene" Snyder. I.ouisvillv's: t'on
gressmnn, out of the party. Nunn has charged that
Cook, by knifing him in 1963, lost the election to the
incumbent Governor "Ned" Breathitt by a scant 12,000
votes.
if Nunn wins, he will probably go on to win the Gov-
ernorship this Fall and will throw his support. to either
Richard Nixon or Ronald Reagan in the Republican
Convention. If Cook wins, it will be Romney or Percy
for Kentucky's delegation.
That's what makes the primary so important.
DOGS'
LIFE
Even the dogs are affluent in South Africa.
At the Ford auto plant at Port Elizabeth,
an $8,400 luxury ranch house has been built
by the company for eight Alsatian wolf-
hounds who work as security police.
Each dog has its own living quarters which is fin-
ished in mahogany, a fenced yard, a lawn with a
neatly trimmed hedge and imitation fire hydrant, run-
ning water, electricity and a luxury wall-to-wall carpet.
Dogs work a shift every other day with a night off
between turns. In addition they get a month's leave
a year.
ROCKEFLLER'S
REPUBLICANS
Senator Charles Percy (R., Ill.)
has solicited the cooperation of
auto labor boss Walter Reuther,
Negro leader Martin Luther King,
and other left-wingers to support his $2 billion housing
bill to spread home ownership to the "disadvantaged"
by having the Federal government subsidize interest
payments and guarantee loans to poor credit risks. In
return for their support, Presidential candidate Percy
has privately promised to aggressively support new civil
rights legislation and to support Reuther's "cradle-to-
grave" subsidy schemes.
Amazing as it may seem, Percy has secured the co-
sponsorship of twenty-seven Republican Members of
Congress for his expensive housing bill; even more as-
tonishing, "Peerless" Percy has secured the support of
conservative senators Wallace Bennett and John Tower.
The aggressive freshman Senator is o
timi
ti
b
p
s
c a
out
Kentucky's May 23 Republican pri- Senate passage of his housing measure, but fears that
mary may have a definite impact on L13J may sidetrack his bill in the House despite the.
the type of Presidential candidate blessings of GOP House leader Gerald Ford and the
who will be nominated next year. sponsorship of Con
ressman Bill Wid
ll
g
na
(R., N.J.1
B. Nunn, a moderate conservative who came who is on the House Banking Committee which will
hair's breadth of winning the Governorship in handle the Perc bill Th
y e magic of Rockefeller backing
1963, is running against Jefferson County Judge Mar- of Percy has had a singular effect on GOP'ers sensitive
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