MEETING WITH PAT LYNCH, NBC NEWS

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CIA-RDP88G00186R000200150012-5
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RIPPUB
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U
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23
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December 22, 2016
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March 8, 2011
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12
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Publication Date: 
October 30, 1985
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MEMO
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Sanitized Copy pproved for Release 2011/03/08 : R UTI -ND E+ . SHEET B dews +curi t Or , PIN ,6 NY ave any dues ions ., please give Sanitized Copy Approved for Release 20'11/03/08: CIA-RDP88GO0186R000200150012-5 recd Pi ~ CA Y-4i '12 t At R whprp . Dr :;fi ~ ' - v .od comma Sanitized Copy Approved for Release 2011/03/08: CIA-RDP88GO0186R000200150012-5 30 October 1985 MEMORANDUM FOR THE RECORD SUBJECT: Meeting with Pat Lynch, NBC News 1. Ms. Lynch called on 18 October and said she would be in Washington and would like to get together. 2. On 21 October she called again and it was arranged that she would come to my office on 22 October at 3:00 p.m. for an off-the-record tour d'horizon on the functions and modus operandi of the Agency's Public Affairs Office. We do this for most major media representatives. She said she had no stories she was pursuing related to the Agency and just wanted to get acquainted. 3. I did my usual dog and pony show, emphasizing the need to work with the network on protecting sources and methods and affirming that we do not deal in classified information. I asked that she call whenever there are any sources or methods questions and we will attempt to sort any problems which appear to be arising. 4. The conversation then turned to other things. Lynch said that while doing the NBC story on Shadrin, she had grown to admire him. She asked if we had any information re Shadrin's death, noting that Mrs. Shadrin had remarried. I said it seemed to me that Mrs. Shadrin must think he is dead if she remarried and that the signs would seem to point that way. She said that she would like to give Shadrin a fitting sendoff on the tube. I said I couldn't help her in any way on that. I noted that the case was an FBI case and not an Agency one and that she would have to go to them or possibly to the Department of State for any information on Shadrin. 5. Somewhere in the conversation she mentioned the press and TV reports stating that there were USG officials other than Howard named by Yurchenko as being Soviet agents, one being an Agency officer and the other an NSA representative. She asked if there was anything I could say about these stories. I replied that I had seen the stories too, but that we hadn't and wouldn't comment; these are matters under investigation by the Justice Department. There had been recent media stories that some announcements might be made by Justice within the near future but only Justice knew what it was going to do. If there is to be comment, it must come from Justice. She asked if the second CIA officer was still an Agency employee. I replied that I was not aware of any investigation in the Agency of active officers for complicity Sanitized Copy Approved for Release 2011/03/08: CIA-RDP88GO0186R000200150012-5 Sanitized Copy Approved for Release 2011/03/08: CIA-RDP88GO0186R000200150012-5 with Howard. However, the FBI is handling the Howard investigation and she would have to ask it. She commented that that must mean this unidentified officer is an ex-employee and simply helped Howard after he left the Agency. She asked if the CIA officer had dealt directly with the Soviets. I replied that I was unaware of any Soviet espionage cases connected with the Howard case other than the Howard case itself. This again is an FBI problem. I emphasized the "mole in CIA' stories are garbage to the best of our knowledge and that she would be incorrect if she pursued this angle. I asked Lynch to let me know if anyone confirmed to her the existence of a second CIA employee in the Howard case. STAT 6. Lynch talked to _of my office the next day, 23 October, and said that she wanted me to know that she "has confirmed to her satisfaction the existence of the second employee, that he was a CIA employee and that he is no longer with the Agency. She has not be able to ascertain his name or what ties he had with Howard. Does the Agency have any guidance on or off the STAT record?" "No," 0 responded. Lynch subsequently called me on 24 October to tell me that Bernie McMahon, Staff Director of the SSCI, was the STAT sou he information that she had provided In addition to what she SIAI toln,wor she said she had confirmed that the CIA officer was low leved with Howard and was out of the Agency. Lynch also said that a former FBI officer with whom she had worked on the original Shadrin story had told her that KGB defector Yurchenko has said that Shadrin was chloroformed and killed accidently after he was kidnapped by the KGB in Vienna. She wants to run with that story on Monday Night News. Is it true?" The answer was, "Cannot help." We referred her to Justice. 7. Yesterday, 28 October, David Holliday, SSCI Staff and Press Officer, called to exchange information on what journalists were up to. He asked how the Agency was reacting to Durenberger's statements over the weekend. I replied they had created a stir. We discussed Pat Lynch's efforts with respect to Shadrin. I said that I understood she was going to run the Shadrin story last night (Monday) on the NBC Evening News. (She did.) That brought us to the ex-CIA employee problem. Holliday said that Lynch had told him that she had talked to me and that I had told her about the second CIA man. He said he had thought that that was the story which the NBC Evening News was going to run last night. I gave Holliday the essence of my dealings with Lynch per the above. I advised him that I had not given her the identity of the second officer and apparently neither had Bernie McMahon. I added that it was my impression that Lynch had not acquired the identity of the second CIA officer from anyone else either since she would instantly break the story on the NBC Evening News the moment she acquired such data and nothing has appeared on the program to date. Holliday agreed she would run with the story if she had it. I suggested that Lynch was working us against each other, which is journalistic standard practice. He concurred that this seemed to be what happened STAT George V. au der Director, Public Affairs i Sanitized Copy Approved for Release 2011/03/08: CIA-RDP88GO0186R000200150012-5 Sanitized Copy Approved for Release 2011/03/08: CIA-RDP88G00186R000200150012-5 t/ ARTICLE ON PAGE 2 Ex-CIA Agents Sought by FBI As Possible Spies By Patrick E. Tyler ww:sa^lwsuaw,at The FBI said last night it has is- sued an arrest warm fora Iarmer CIA afcer, apparently identi fiF 4 i a Soviet spy by Vitaly Yurchenko, a high-ranking Soviet intelligence of- ficer who defected two months no.. Informed sources said the FBI has identified a second CIA officer, ap- parently named by Ymcheako, but has not yet taken action against him. Yurchenko is being debriefed un- der tight security near Waabingtau, a congressional source said yester- day. T'he suspect being actively sought by the FBI is Edward Lee Howard, 33, who fled his bom out- side Santa Fe, N.M., two weeks ago after FBI agents questioned his em- ployer. Agents quickly searched his home and car under a warrant say- ing the government sought coding equipment and espionage parapher- nalia. The Federal Bureau of Inves- tigation said Howard is charged with conspiracy to deliver n4tigxsl defense information to a foreigii government. A federal official said. yesterday that the second former Central In- telligence Agency officer has not fled the United States, but he would not comment on whether efforts are being made to place the man un- der surveillance or arrest. A congresaiooai source also sug- gested that a separate international search may be under way for sev- eral other former CIA' operatives possibly identified as Soviet agents by Yurcherdco, a former Soviet KGB officer. WASHINGTON POST 3 October 1985 The FBI was closely guarding in- formintioot abo . the investigation yesterday: The agenqu even asked the Senate Select Committee on In- telligence not to ism a statement about the investigation afterentel- aenacars, another Committee Vice Chairmen Pat-. rick J. Leahy (D-VtJ was described by one source a very disinurbsd that information had leaked abed the CIA debriefing of Yurcbenko before law a tierce nent officials had; time to investigate Yurchenko'sdi-- closures. After the intelligence committee briefing yesterday, a panel spokesman declined to say whether the search for Howard re- sults directly from information giv- en by Yurchenko. He would say on ly, "We were contacted last week by the FBI that they were conduct- ing an active investigation of [How- ardl " The profile emerging of Howard yesterday was that of an Air Force officer's no. a private economic an- alyst working for New Mexico's state Legislature and a former Peace Corps volunteer. Howard, who had worked for the Agency for International Develop- ment in Linn, Peru, from 1976 to 1979, tutpd down a posting to Moacaw idd returned to his native New Meaioo in 1983. The FBI said Howard worked for the CIA from January 1981 to June 1983 under diplomatic cover in the State Department According to Santa Fe court records, he pleaded guilty last year to assault with a deadly weapon and was sentepced to five years' pro- bation after being arrested for scuf- fling with-three men in February. Police reports said Howard fired a .44 Magnum pistol through the roof of a ear. during the altercation. The FBI said be is also wanted for unlawful flight while on probation. Phil Baca. Howard's superior on the New Mexico Legislature's Fi- I DWARD LIM HOWARD ... sobjset of FBI havesaigstbs nance Committee, described him as "a hard worker (whol did a good job for us."" Baca said he was interviewed by FBI agents Sept. 19 and, although he declined to disclose the nature of the questions, said he was not sur- prised when, on Sept. 23, he found Howard's resignation letter on his desk. The federal warrant was is- sued that day. The Associated Press reported that reporters at Howard's home in a Santa Fe suburb late Tuesday found a search warrant on the driv- er's seat of his car. According to the warrant, the AP said, federal of- ficials were seeking coded pads. mi- crodots attached to business cards, recording and transmitting equip- ment, and telephone and travel records. While disclosures that CIA em- ployes may have been feeding in- formation to the Soviets have alarmed U.S. intelligence officials. several of the officials said Yur- chenko's defection and those of oth- er Soviet intelligence officials in London and Athens represent a ma- jor disaster for Soviet intelligence. "[The KGB] has been hit with an earthquake that's above 8.0 on the Richter scale, and we've been hit with a few had stones," said George A. Carver, a 26-year CIA veteran who left the agency during the Car- ter administration. Wad Sanitized Copy Approved for Release 2011/03/08: CIA-RDP88G00186R000200150012-5 Sanitized Copy Approved for Release 2011/03/08: CIA-RDP88G00186R000200150012-5 OZ. ' Other officials said it is far from clear which superpower has suf- fered the greatest hemorrhaging of sensitive information. Some intelligence experts sug- gested that, while Yurchenko's de- fection may be a short-term CIA bo- nanza, the loss of Yurchenko and other recent Soviet defectors to the West actually represents setbacks for the West, since they can no longer be used as "moles" inside the Soviet intelligence establishment. Counterintelligence experts. also. . cautioned that it will take time to check and crosscheck information provided by the defectors before it is deemed reliable. Stafjwriters T.R Reid Mary Thornton and Loretta Tofani contributed to this report. Sanitized Copy Approved for Release 2011/03/08: CIA-RDP88G00186R000200150012-5 Sanitized Copy Approved for Release 2011/03/08: CIA-RDP88GO0186R000200150012-5 A:iTICLE AP"EARE ON PAGE " BALTIMORE SUN 3 October 1985 NATION Former officer of CIA is charged with plotting to spy WASHINGTON (AP) - The FBI said yesterday that it had charged a former CIA officer with plotting to spy for a foreign government and had been seeking his arrest since he fled from his New Mexico home more than a week ago. The bureau said Edward Lee Howard. 33, of Santa Fe. was charged Sept.. 23 with conspiracy to deliver national defense information to aid a f . i gave rrment. Sources have said the foreign government was the Soviet Union. The FBI said Mr. Howard worked for the Central Intelligence Agency from January 1981 until June 1983. According to State Depart- ment records, his last post was the U.S. Embassy in Moscow. where he operated under the cover of being a budget analyst for the State Depart- ment. He was also named Friday in a federal warrant for unlawful flight to avoid prosecution for probation vio- lation in New Mexico. the FBI said. It was learned yesterday that FBI agents had searched his home and car in New Mexico for code pads. microdots and other spy parapher- nalia under a warrant seeking evi- dence of a plot to deliver national defense information to a foreign gov- ernment. The search, which occurred be- tween Friday and Tuesday. became krxnm as evidence emerged day that Mr.. Howard flew to Texas more than a week ago. leaving even his wife in the dark abolt his where- abouts. There were these other develop- ments In the case of the missing offi- cial suspected of being a spy for the Soviet Union: O The Santa Fe. N.M.. district at- torney has obtained an arrest war- rant for him, saying his flight violat- ed his five-year probation on a 1984 gun-brandishing Incident o Colleagues who worked with him in the New Meidoo state go ment said he traveled wide Boa state business to economic confer- ences In San Francisco. Boston. New Orleans, El Paso. Texas. and else- where. They said his work led him into close dealings with some work- ers at the Los Alamos National Labo- ..whrire oop4ecs. weapons m ratory search is done O in a MlmmapnN. suburb. Ever Cedarleaf. the father of Mr. How- ard's wife. Mary. said Mr. Howard had not been heard from. She hasn't heard from him. She has no Idea where he Is.- Mr. Cedarleaf said his daughter' who returned Tuesday to their Santa Fe home after a visit to Minnesota. was dismayed by her husband's disappearance. O The CIA. the Justice Depart- ment, the State Department and the Senate Intelligence Committee all declined to discuss the case. Mr. Howard quit his most recent )ob, with the New Mexico Legislative Finance Committee in Santa Fe. Sept. 20 and fled just before FBI agents came to question him about whether he had been a spy for the Soviets. a U.S. official has said. This ofiklaL who declined to be identified. said Mr. Howard was probably one of two ex-CIA men im- Yurchenim a re. t top-lee defec- tor from the KGB, the Soviet secret police and lee agency. Sanitized Copy Approved for Release 2011/03/08: CIA-RDP88GO0186R000200150012-5 Sanitized Copy Approved for Release 2011/03/08: CIA-RDP88GO0186R000200150012-5 ARTICLE ON PAGE BOSTON GLOBE 3 October 1985 FBI says ex-CIA man is sought Associated Press WASHINGTON - The Federal- Bureau of investigation has charged a ormer ace enc offiter who in Moscow witil plotting to spy or a fareg~n overnmen an as P nhis arrest since he fled from him New co me more than a week ago. a spo man said er am an FBI spokes- man.. said Edward Lee Howard. 33. d Santa Fe, was charged la an arrest warrant Issued Sept. 23 in Albuquerque with conspiracy to deliver national defense informa- tion to aid a foreign government. Although the FBI and the war- rant did not say which foreign government Howard allegedly spied for. US sources. who would not be named, have said it was the Soviet Union. One US official has said How- ard was one of two ex- CIA officialm imp as Soviet agents urchen The CI - is believed to have ve few US agents in the Soviet Union, and former rs ve said a_EM_ has ficult recruiting Soviet citizens as agents. us. anyone Involved in American spy operations in the uon to pass potentially orma The IN 03_ffi~u_d worked for the CIA ft-om Jan until June TVW. According State Department records. his last post was the US Embassy in Mos- cow. where he operated under the cover 4 being the State Depart tbudget . analyst for He was also named list Friday In a federal warrant for unlawful flight to avoid prosecution for pro- bation violation in New Mexico, the FBI said. as spy Meanwhile. It was learned yes- terday that FBI agents searched his home and car in New Mexico for code pads. microdots and other spy paraphernalia under a war- rant seeking evidence of a plot to deliver national defense Informs- tion to a foreign government. The search. which occurred be- tweeeh' last 'Fridley and Tuesday, became known as evidence emerged yesterday that Howard flew to Texas more than a week ago leaving even his wife in the dark about his whereabouts. There were theme other develop- ments in the Howard case: ? The Santa Fe district attor- ney has ? obtained an arrest war- rant for him because his flight vio- lated his five-year probation on a 1984 gun-brandishing incident. ? Colleagues who worked with him in the New Mexico state gov- ernment said he traveled widely on state business to economic con- i ferences In San Francisco. Boston: New Orleans: El Paso, Texas: and elsewhere. They also said his work led him into close dealings with some workers at the Los Alamos National Laboratory. where top- secret weapons research Is done. Howard quit his most recent Job. with the New Mexico Legisla- tive Finance Committee in Santa Fe. on Sept. 20 and tied just before FBI agents came to question him about whether he had been a Sovi- et spy. a US official has said. Late Tuesday. reporters found a copy of a federal search warrant on the driver's seat of the Howards' red Jeep. which was parked in front of their home Ina Santa Fe suburb. The warrant said federal au- thorities were searching for coded pads. V" cards with micro- dots, microfiche, recording and transmittal equipment. docu- ments.that identify foreign espio- ~t agents. payments trumb to telephone contacts with agents and trawl records. Upon leaving the federal - gov- ernment. Howard became an eco- nomic analyst in July 1983 for the Legblative Finance Committee of the New Mexico legislature. He. . was engaged in revenue pn eo- tons and in analysis of the oil in- dustry. He left work suddenly on Sept. 20, leaving behind a resignation note effective two days later. By Sept. 23. FBI agents were Inter- viewing colleagues and neighbors about Howard and said he was .accused of espionage." A native of New Mexico, How- ard was a Peace Corps volunteer from August 1972 to August 1974 in The Dominican Republic and Colombia. according to Peace Corps spokesman Hugh O'Neill. Government records show he worked the Agency for Interna- tional Development from 1976- 1979. Sanitized Copy Approved for Release 2011/03/08: CIA-RDP88GO0186R000200150012-5 Sanitized Copy Approved for Release 2011/03/08: CIA-RDP88G00186R000200150012-5 WASHINGTON POST 4 October 1985 Ex-CIA Agent Suspected of Spying ;deemed Unexceptional to Associates -Young New Mexico Economist Lived Quietly, Conventionally By TR Rsid w-rsn. w. aw wow SANTE FE. N.M., Oct.3-To friends and colleagues here, Ed- ward Lee Howard seemed a stan- dard Santa Fe-style yuppie: a re- pected $32,000-a-year. economic analyst with the state government i io commuted in a bright red Jeep to his brown adobe house in a mid- Ale-income development south of town. Neighbors said he was a dutiful husband to his wife, Mary, a dental assistant in Santa Fe, and a devoted father to his 2-year-old son. He enjoyed flying radio-con- trolled model aircraft and target- shooting at a local gun club-hardly remarkable pastimes for a young professional in the Southwest. "He did good work," said Steven Arias, clerk of the New Mexico Legislature, where Howard was employed as a natural-resources economist with the Legislative Fi- nance Committee. He did good work through the afternoon of Sept. 20, when he 'briefed legislators at a budget-anal- ysis meeting in the state capitol, slipped quietly away and van- then Jobed. In Washington today, a Senate staff official described Howard as a low-level officer in the CIA's clan- destine service who was fired by tfie agency in 1983 for undisclosed reasons and apparently took sen- sitive material with him, perhaps to sell it to Soviet intelligence agents. David Holliday of the Senate Se- lect Committee on Intelligence also said that, based on briefings re- ceived by the panel, he "would not discourage" speculation that high- level Soviet intelligence defector Vitaly Yurchenko had identified Howard as a spy. called Yurchenko, a former ranking HowBum said he ard's home and reached Mary member of the KGB who defected Howard. He said she expressed a s- two months ago, is being debriefed tonishment that her husband had by the Central Intelligence Agency at an undisclosed location near quit his job and seemed to have no Washington. idea of his whereabouts. :...Holliday said he could-not-identify, Federal officials here declined. to diams how long' they been what Howard may have taken when he left the agency. But a warrant watching Howard and why he was used here to search Howard's home able to leave Santa Fe before an and car indicated that federal offs- arrest warrant was issued. cials were seeking coding materials, Coworkers and neighbors said FBI agents were in Santa Fe asking transmitting and recording equip- questions about Howard in the days ment, and business cards carrying before he fled. They said he must microdots. have known this by the day he left work early A second former CIA employe is I and disappeared. Federal law enforcement officials reportedly under surveillance as a say Howard fled Sept., 21. He was possible Soviet agent, apparently able to escape, a federal official in also based on mfbrmation from Yur- Washington said, because the FBI chenko, a federal official said today maintained a limited surveillance in Washington, until an arrest warrant was issued. Two days after - Howard slipped Federal agents have staked out away, a passenger listed as "Ed- Howard's home and begun -trailing ward Howard" took an American his wife on her daily commute from Airlines flight from Albuquerque to home to the orthodontist's office Dallas' The next morning, Sept. 23, where she works. the Federal Bureau of Investigation issued an arrest warrant for the fugitive analyst but, by then, he was gone- News that this quiet, generally mild-mannered young economist might have been a U.S. agent work- ing for the KGB stunned and elec- trified his coworkers here. Equally surprised, evidently, was Howard's wife. Philip Baca, Howard's boss in the state government, said he came into his office on the night of Sept. 22 and found a letter of resignation from Howard. In it, Howard asked coworkers to clean out his desk and said he hoped "some day to be able to explain this to you and the rest of the staff." Howard was born in Alamagordo, N.M., in 1951, son of a career Air Force sergeant. The family moved frequently during his boyhood, and he acquired a proficiency in Spanish and German. After graduating from the Uni- versity of Texas in 1972, he spent most of the next four years with the Peace Corps in South America and the United States. From 1976 to 1979, he worked in Peru for the Agency for International Develop- ment, according to the State De- partment. After earning a master's degree in business administration from American University, he went to work for the CIA, where he was employed from 1981 until spring 1983. Q~w V Sanitized Copy Approved for Release 2011/03/08: CIA-RDP88G00186R000200150012-5 Sanitized Copy Approved for Release 2011/03/08: CIA-RDP88GO0186R000200150012-5 c2w In June 1983, he moved to Santa Fe. His coworkers said they did not know what prompted the move. He applied for a job as an analyst with the state Legislative Finance Committee, a joint budget-planning body serving both chambers of the legislature. He told his bosses that he had been employed by the State Department but left State because he and his wife did not want to ac- cept an imminent posting to Mos- cow. It is fairly common for CIA co- vert operatives to work under dip- lomatic cover for the State Depart- ment. As an analyst in the Capitol build- ing here, Howard seemed to co- workers to & a solid, serious' young man. The only stain on his record here came in February 1984 when he was arrested for brandishing a .44- cal. pistol at three men in down- town Santa Fe. He told police that he had been distraught after a fam- ily argument and had too many drinks at a bar. In a plea bargain, he pleaded guilty to an assault charge and was sentenced to probation. As part of the bargain, Howard obtained letters of support from several government officials here and in Washington. All described him as a reliable, serious individual. He is a dedicated, honest and truthful individual," wrote then- state Sen. Frank Papen, chairman of the committee for which Howard worked. I Sanitized Copy Approved for Release 2011/03/08: CIA-RDP88GO0186R000200150012-5 Sanitized Copy Approved for Release 2011/03/08: CIA-RDP88GO0186R000200150012-5 A,. .,;LZ AP' ED ON PAGE WASHINGTON TIMES 4 October 1985 Fired CIA pair took revenge by spying for KGB, FBI told BBy Bill Gertz Vas 4.+oroN TMES 'IWo former CIA operatives sus- pected of spying for the Soviet Union were dismissed from the agency as the result of improper conduct and then took revenge by spying for the KGB, according to administration and congressional sources. The J FBI is controlling to search for Edward L Howard, a former eco- nomic analyst with the finance com- mittee of the New Mexico legislature, who resigned two weeks ago and eluded federal agents who had placed him under surveillance. Howard, a former CIA operations officer hired in January 1981, was fired by the agency in June 1983 after he was discovered stealing money from the CIA and for using illegal drugs, sources said. He also failed to pass the CIA's probationary period for new employ- ees, the sources said. "He was a rotten apple we got rid of in 1983;' said a senior CIA official. A second ex-CIA operative also is under investigation on suspicion he supplied CIA secrets to the KGB, the Soviet intelligence service, in con- nection with Howard. But sources said his crimes appeared to be less serious than the FBI's case against Howard. The unidentified former oper- ative also was dismissed from the agency for disciplinary reasons and not for suspected espionage activi- ties, sources said. 'lb date, the two former CIA employees being sought by the FBI are the only two Soviet agents impli- cated by Vitaly Yurchenko, a senior KGB defector. The CIA does not sus- pect that a Soviet agent - or "mole" - has burrowed into the intelligence service, the sources said. Howard has, been. charged with codspicacq to-'` deliver national' defense information to an unspecif- ied foreign government believed to be the Soviet Union. The espionage charges were filed in a federal arrest warrant issued Sept. 23 in Albuquerque. N.M. Four days later, Howard was charged with unlawful flight to avoid prosecution for violating probation on his 1984 conviction in a Santa Fe. N.M., gun- brandishing incident. Rep. Bill Richardson. D-N.M.. said yesterday that at his request Rep. Lee Hamilton. chairman of the House Select Committee on Intelli- gence, has agreed to hold a hearing next week on Mr. Yurchenko's reported disclosures concerning Americans. "I'm extremely concerned about the potential damage to national security," Mr. Richardson said, allud- ing to Howard's reported access to the Los Alamos laboratory. In Los Alamos, a businessman told reporters he and a lab official met with Howard and that Howard had asked questions about technol- ogy transfers. The lab conducts top secret research on nuclear weapons for the U .S. Department of Energy. Contrary to news reports, How- ard never served in Moscow nor was he offered the post while working for the CIA, these sources said. Howard served in the Peace Corps, its ACTION division and the Agency for International Develop- ment before his employment with the CIA,`the sotitces'said. Howard was described by these sources as a "revenge case" similar to that of former CIA cable clerk William Kampiles. Kampiles was convicted in 1978 of passing the Soviets a top secret man- ual for the KH-11 spy satellite after failing to be admitted to the CIA's clandestine services division. Federal authorities were led to the two Soviet agents by information provided by Mr. Yurchenko, the Soviets No. 5 man in the KGB. Mr. Yurchenko defected to the West in Rome Aug. 1 and is being debriefed by the FBI and CIA. FBI officials defended their sur- veillance of Howard, saying he was only a suspect and had not yet been charged in any legal proceedings when he disappeared. Federal authorities in New Mexico last month found two airline tickets from Santa Fe to Austin, Texas. after searching Howard's house. Howard. 33, graduated from the University of Texas in Austin. I Sanitized Copy Approved for Release 2011/03/08: CIA-RDP88GO0186R000200150012-5 Sanitized Copy Approved for Release 2011/03/08: CIA-RDP88GO0186R000200150012-5 ARTKC AP'?t.AK ON PAGE BALTIMORE SUN 4 October 1985 Mi sing SPY suspect fled while under FBI's watch WASHING ON (Reuter) - A for- for Soviet Union was u der - veillance by the PEI when he dkap- pcnadn Resgan administration offl- The FBlace- ed up by letting this guy 'one administration of- ficlal said. The FBI refined to comment on 1981 to 1983 and has been charged with conspiring to deliver national defense secrets to a foreign govern- ment FBI officials defended the way they conducted their surveillance of Mr. Howard. saying he was only a suspect and had not yet been charged he On Sept. 20. Mrs ~ urea- whether another ex-aA of lcer had pectedly quit his )ob and fled been Identified by Its counterintelli- before FBI agents were about to t gene after bring named as a question him concerning his alleged by. Y hid espipn actlt a n~gals a .~oikf aAkdada~e'd~. 'rl I ? 64 alleged double agents to be re- vealed soon in what could produce a major shake-up in the U.S. intelli- gence T The former CIA employee who fled was Edward Lee Howard. 33. who worked for the agency from The FBI had Interviewed his neighbors and asaodatea to Santa Fe. N.M.. where he worked as an economic , tn a analyst st for the ~te Ie a sb=* enough case_ they said Al' they said Mr. Howard may a Ve beealerted by news re- ports. his arrest warrant was issued Sept. 23, two days before the first disclosure that Mr. Yurchenko was naming double agents believed to have penetrated the U.S. intelligence community. I Sanitized Copy Approved for Release 2011/03/08: CIA-RDP88GO0186R000200150012-5 Sanitized Copy Approved for Release 2011/03/08: CIA-RDP88GO0186R000200150012-5 ARTICLE A ON PAGE BALTIMORE SUN 4 October 1985 Defedor revives fear of high `mole' at CIA WASHINGTON (Reuter) - Dis- closures by a key Soviet defector have reopened a question that has perlmW lly tied U.S. In knots: Is there a high- Soviet 'mole' in the Central Intelligence tdtigen a sources say that the defector. Vitaly Yurche nko. a high afflc tai in the KGB. came over to the West in Rome last summer. bringing highly sensitive Informa- tion that Included names of U.S. double The ageoM is re of those nshnesis likely to pro a dmkke-r in the American intelligence community. the sagas mid declined to give detalls. The Justice Department has said that Mr. Yurchenko, who is now be- Ing 'debriefed' by the CIA at an un- disclosed location in the United States, has implicated ftuma a" HaZN the agency 18 months agir and Is now the sub- )ect of a police manhunt. Some congressional sources who have been involved in overseeing U.S. Intelligence. including San. Mal- colm Wallop. R-Wyo.. believe that KGB moles are active in the CIA to- Mr. Wallop said he hoped that the new revelations would fuel efforts to uncover such moles 'We have managed to penetrate the KGB, and it's Inconceivable that we have such a corner on the world's morality that they haven't been able to do the same thing with us.' Mr. Wallop, who felt the Senate Intelligence Co ,ee earlier this year after an eight-year tenure. told Reuters. This is not the first time that U.S. Intelligence has been shaken by a mole mystery. In 1961. Soviet defector Anatoly Golltsyn told U.S. officials that there was at least one high-level mole in _ CIA counterintelligence chief James Angleton searched for the tralfce or traitors for mere than 12 yc until he was fired in 1974 for excessive zeal, former intelligence offlc~ls say. They say that Mr. Angleton s mole hunt ply caused parts of ,hi ClA vh~ to grind to a halt. some CIA veterans of what they regarded as an ovary zealous campalgIL Fanner CIA ofBclal George Carver said: 'The Soviets have been trying to penetrate us for 40 years. and Of course we need to be careful. but If you went on a great mole hunt the whole o pain ation would seize up.' Mr. Wallop said that the fear of resurrecting the Angleton era has so eroded U.S.. spy-catthing. abilities that -the United States and is thus highly vulnerable to KGB penetration. Legislation passed in 1985 called for the enlargement of CIA mole- hunting operations and for more analysis aimed at detecting false in- formation planted by the KGB. Neither program has been Imple- mented vigorously because Intelli- gence officers are not committed to it and do not like investigators con- stantly questioning their loyalty. as Mr. Angleton had done. Mr. Wallop said Ex-CIA Director Stanfield Turn- er said in a book released this year that Mr. Angleton's approach bor- dered on paranoia. When a second Soviet defector. Yuri Nosenko. cast doubt on Mr. Gol- itsyn's story. Mr. Angleton ordered Mr. Nosenko to be locked in a small cell. without a toothbrush or suffi- dent food. for 3% years. Mr. Turner wrote. Mr. Nosenko was at times in- terrogated for 24 hours without a break. Doubts about Mr. Angleton's methods have not erased concerns that the agency may have been infil- trated at high levels. Former CIA Director William Col- by conceded that such Infiltration was a possibility. as did Mr. Carver. although both were skeptical. A former director of the Defence Intelligence Agency. who spoke on condition that he not be named. said that in recent years Communist agents had learned psychological techniques to avoid being uncovered- by He detector tests that are given to CIA job applicants. V111, If such agents posing as loyal Americans had managed to pene- trate the be-detector screen. they would today be at relatively low CIA levels. but could go higher. he said. David Phillips. a former high CIA official, said he doubted that the agency had been penetrated at top levels. but added: You can't be ab- solutely sure, of court.... If they had a real mole. he would stay for his whole career then retire and grow grapes in California' JAMES ANGLLrTON Ex-CIA counterintelligence chief Sanitized Copy Approved for Release 2011/03/08: CIA-RDP88GO0186R000200150012-5 Sanitized Copy Approved for Release 2011/03/08: CIA-RDP88GO0186R000200150012-5 ARTICLE APPEARS NEW YORK TIMES ON PAGE 4 October 1985 Suspect Is Believed to Have Told Soviet of U.S. Spying in Moscow By STEPHEN ENGELIERG Spsalal to TVw Mw Yak lima WASHINGTON, Oct. 3 - Edward L. Howard, a former Central Intelligence Agency officer, is believed to have given the Soviet Union significant s? cret information about the methods the -United States uses to gather inteW- ? gene in Moscow, Congressional sources said tonight. The sources said Mr. Howard, who is the being techniques as bow trained he in to be sent to Moscow as an operational officer for the C.I.A. The Federal Bureau of investigation has said Mr. Howard, who is 33 years old, served in the C.I.A. from January 1961 to June 1963,' One official said to- -day that he left the ageneyatter failing to pass a routine polygraph, or lied.- - tector. test and had not served in blos. The C.I.A. refused to say whether it had ever employed the iodivduual in oMdale have said Mr. Howard fled the country sometime an the weekend of Sept. U. uhortly after his friends and co-workers bad been questioned by the Federal Bureau of InvesdPtiGIL Mr. Yurchmko Is being questioned at an undisclosed location in the United; States. only Amedealls Under Serurtlay One official said Mr. Howard and the second tot ma intelligence employee were the only America= under inve i- Mr. rY lurcheoko octed to the West in July while be was in for International Development, which, administers foreign aid abroad, hired him as an intern in Washington in Sep. camber Uzi. He was later a signed to Peru as an assistant project develop- the I from ment officer and resigned agency March IM. In mid-August, the Italian prom pub- lishad brief articles reporting that Mr. Yurchenko had disappeared and that inquiries were being made by the; have been caused by Mr. Howard. Offi- cials say he is one of two American io- telligence officers identified as Soviet recruits by a Soviet defector, Vitaly. Yurchenko, a senior member of the K.G.B., the Soviet intelligence agency. Government officials said today that the second simpect of investtiigamiig the defec-identified tor's the course of tor's statements. National Security Role Hinted cow. The official would not characterise the type of problem found by the poly. graph but indicated that it apparently was not related to espionage. Another official said a test result suggesting es- pionage by an employee would have started a a wide-ranging criminal in- vestigation. Senator Expresses Concern CBS News tonight quoted Senator Dave Durenberger, chairman of the Se- lect Committee an Intelligence, as say- ing that the security breach caused by Mr. Howard could be as "serious as anything this country has seen in the past." Mr. Durenberger said :hat the suspect might have provided details of how he United States got sensitive in- forniauon from the Soviet Union. The intelligence committee has been briefed on the potential damage said to The officials would not say what agency of the Government had em- ployed the second suspect. although one intelligence source indicated it was the National Security Agency, which deals with this Nation's moat secret) codes and communications. One intelligence source said the sec- and suspect had access to details about secret United States electronic and satellite surveillance of communica- tions. "Let's just say he was part of the intelligence community," that source said. I Officials said lltr. Howard was the ioed in clandestine Service Of the C.I.A. He was charged on Sept 23 with caaspir- lag to pevvide national defense infor- mationpMdamba have Tsai Mr. Howard eluded the Federal autho itiee and fled his home in Santa Fe, N.M. He had employed by the New lesion Legislature An intelligence turegesince 1963 as an economic intelligence source said Mr. How ard, - "a disgruntled employee," ap- Qroac lned the Russians with an offer to pprovide secret information. Various at. offeredtlcials conflicting accounts on whether Mr. Howard began working with Soviet intelligence agents before or after be left the C.I.A. Dal by State Department A Reagan Administration official said Mr. Howard left the agency after be was assigned to a post in Moscow. The State Department. denying pub- lished reports, said today that Mr. Howard bad never served in the Amer- ican Embassy in Moscow. The Agency Soviet Embassy. But it was not until Aug. 3o that the Milan newspaper Cor- riere Della Sera reported that be was a de[rtctor. One former C.I.A. officer said it would be unusual to assign an inexpert-, soced officer like Mr. Howard to Moe- eow, one of the agency's most demand-I ivg poi;W. 8ta< !r, added.that .tit Mr. mom ~MState me as a ht have been more Russians because he had not served in jobs utsurr associated with the Central IntelIi- gen a Agency. A Congressional source "opera tional" j in the to hold an - rispform= would mean that Mrr. Howard had been . respaodble for coordinating informs lion-gathe ing clandestinely. He would thus have access, the former officer wont ao . to m a limited nuber of names of agents as well as the location of other sources of information such as elect traoic listening pats - but an agent in an operational job would not know about the networ of b agents run by others in similar posts. I Sanitized Copy Approved for Release 2011/03/08: CIA-RDP88GO0186R000200150012-5 Sanitized Copy Approved for Release 2011/03/08: CIA-RDP88GO0186R000200150012-5 CIT'CLE , P'. RF ? JG WASHINGTON TIMES 7 October 1985 KGB paid former CIA agent, FBI says n* ASSOCIATED PRESS Fugitive ex-CIA agent Edward L Howard met in Austria a year ago with Soviet KGB officials who paid him money for U.S. intelligence secrets, the FBI says. Meanwhile, sources in Washing- ton said FBI agents are also watching and investigating a second former US. intelligence officer sus- pected of spying for the Soviets. In. Albuquerque, N.M.,_ the FBL. charged Howard, 33, an economic analyst, with selling U.S. intelligence secrets to the Soviet Union. The- sources - federal officials who spoke on condition they not be identified - said that the second suspect, like Howard, was fired from a US. intelligence job. It also was disclosed on Friday that FBI agents confronted Howard in New Mexico with espionage alle- gations against him less than two days before he eluded the FBI and fled. Howard is wanted on charges of supplying national defense infor- mation to a foreign power. In filing a revised criminal com- plaint alleging that Howard had sold secrets, the FBI did not say how much money changed hands. Howard was fired by the CIA in 1983 after, a source said, he refused assignment to Moscow and was implicated by a polygraph test in petty theft of money and illegal drug use. He disappeared from his home in Santa Fe, N.M., less than two days after being confronted by FBI agents with the espionage allega- tions on Sept. 20. The FBI agent said the bureau was told recently about a former CIA agent who was working for the KGB by "a confidential source with intimate knowledge of Soviet intelli- gence matters." A source said this was Vitaly Yurchenko, the No. 5 man in the KGB who defected to the West in Rome two months ago. According to an accompanying affidavit filed by the FBI's Martin R. Schwarz, the Soviet intelligence source told the FBI that "senior offi- cials of the Soviet Committee for State Security, KGB, met in Austria in the fall of 1984 with a former CIA employee. The former CIA employee was paid money in exchange for classified. information relating to U.S. intelligence sources and meth- ods:' The FBI investigation turned up evidence that Howard was in St. Anton, Austria on Sept. 20,1984. Mr Schwarz said. The FBI also charged that How- ard traveled to South Padre Island, Texas, in July as part of his violation of espionage statutes. Mr. Schwarz said in that month Howard told another confidential FBI source of his meeting in Europe with the Sovi- ets. Howard told this source that the Soviets had paid for the trip and that he had received cash. for..inforipa-. tion.' t%e source relayed this infor-, mation to the FBI last month, Mr Schwarz said. Mr. Schwarz also quoted from a note Howard left his employer to give to his wife. "Well, I'm going and maybe I'll give them what they think I already gave them;' the note said in part. Mr. Schwarz also said Howard met with two current CIA employees on Sept. 24, 1984, and told them that in October 1983 he had traveled to Washington and spent several hours near the Soviet Embassy trying to decide whether to enter the embassy and disclose classified information. One federal source said the two current CIA employees were fl iends of Howard's from his CIA days. CIA spokeswoman Kathy Pherson had no comment on the incident, or on why, it appeared to have taken a year for the two CIA employees to report this contact. The FBI's revised complaint against Howard and the affidavit were filed Wednesday but were only released in the federal court on Fri- day. In Washington, a source said con- tinued surveillance and checking into the second suspect, who is still in this country. were required to develop enough evidence to obtain an arrest warrant. '1Wo other U.S. officials said the second suspect had been fired from , a US. intelligence job, just as How- ard was by the CIA in June 1983. In both cases, the firings may have con- tributed to a decision to offer infor- mation to the Soviets. Sanitized Copy Approved for Release 2011/03/08: CIA-RDP88GO0186R000200150012-5 Sanitized Copy Approved for Release 2011/03/08: CIA-RDP88GO0186R000200150012-5 ,.a.--- LOS ANGELES TIMES 8 October 1985 Firing by CIA Possible Motive in Spy Case By RONALD J. OSTROW and DOYLE McMANUS, Times Staff Writers WASHINGTON-Spy suspect islative Finance Committee, where Edward L. Howard was fired in he went to work after leaving the 1983 by the CIA, and anger over his CIA, said Howard had told him that discharge may have prompted him he left the department after being to provide information to the Sovi- assigned as a Foreign Service offi- ets, U.S. officials said Thursday. cer to the embassy in Moscow. Those officials refused to give But department spokesman any reasons for the firing of How- Charles E. Redman said that How- ard. who is now the object of an and had never worked for the intense FBI manhunt, and one department or in the U.S. Embassy source said the records indicated in Moscow in any capacity. He said that he was'"allowed to resign." Howard had been employed by the 'MMIv. ei R.vw Agency for IAterflati0)Dal Develop= But "a motive of revenge or disgruntlement has been known to be involved in other espionage cases," one official noted. Another source said that it is "not entirely clear whether (How- ard) had his final walking papers (from the CIA) when he was first in contact with the Soviets." How- ever, he added that he understood Howard was not working for the Soviets when he was carrying out CIA assignments. Intelligence sources have em- phasized that Howard was not a classic "mole"-a spy who has infiltrated an intelligence agency to obtain information from it. Those sources said that Howard was discussing a CIA assignment at the U.S. Embassy in Moscow under a State Department cover when he was fired. Curtis Porter, Howard's former supervisor at the New Meadco Leg- meat from September, 1878, until March, 1979, when he resigned. Howard did not work for the CIA when he was with AID, one Ad- ministration source said. The FBI has said that Howard worked for the CIA from January, 1981, to June,1983. Meanwhile; an FBI source ac- knowledged that Howard dropped from sight on the night of Sept. 21 while .FBI agents had him under surveillance at his home in a suburb of Santa Fe, N. M. But the source emphasized that the agents had no authority to arrest Howard until two days later, when they obtained an arrest warrant. "It was a loose-perimeter sur- veillance, not meant to contain someone," the source said. He described Howard as "a trained agent" and said he eluded the FBI agents in the early morning hours of a "moonless night." There was a half moon over Santa Fe that night. but weather records indicate that it was obscured by stormy weather. An intelligesio, some. said that the Soviet KGB dshetor who pro- vided information that helped lead the FBI to Howard has also given information that may implicate a second former CIA operative as a Soviet spy. But the source stressed that the investigation involving the second individual is ongoing and had reached no conclusions yet, Hooso Hearlag oespies The defector. Vilely Yurchenko, left his temporary Soviet diplomat- ic assignment in Rome in August and now is in the United States. The information he gave was added to other data the FBI had that then led them to Howard. the intelli- gence source said. The House Select Committee on Intelligence plaza a hearing next week on Yurchenko's disclosures about American spies, Rep. Bill Richardson (D-N. M.) said. He said that Rep. Lee H. Hamilton (D- Ind. ), the panel's chairman. had agreed to his request for the hear- ing. However, a Senate Intelligence Committee source questioned whether public hearings on the Yurchenko information would pro- duce anything worthwhile, noting that Yurchenko's leads are still being checked. Sanitized Copy Approved for Release 2011/03/08: CIA-RDP88GO0186R000200150012-5 Sanitized Copy Approved for Release 2011/03/08: CIA-RDP88GO0186R000200150012-5 ASSOCIATED PRESS 4 October 1985 SPY SUSPECT BY MICHAEL J. SNIFFEN WASHINGTON Edward L. Howard refused to transfer to Moscow for the CIA and was fired by the U.S. spy agency, all at about the same time he began working for the Soviet KGB, U.S. authorities say. U.S. officials said Thursday they believe the fugitive former CIA clandestine agent started working for the Soviet spy agency because he was angry over being assigned to Moscow. An FBI affidavit in federal court in New Mexico showed that Howard learned of the bureau's interest in his when agents interviewed his directly an Sept. 20, the day he abruptly quit his job before fleeing. Government officials familiar with the case were willing to discuss it only on grounds that they not be identified. Meanwhile, The New York Times, citing congressional sources it did not -identify, -?said today that Howard! iS? believed` to -have `given"tifte Sbv1et' Un 6n- secret information about how the United States gathers intelligence information in Moscow. And CBS News on Thursday quoted Sen. Dave Durenberger, chairman of the Senate Committee on Intelligence as saying that Howard might have given the Soviets information on U.S. intelligence gathering. Durenberg, R-Minn., said the security breach caused by Howard could be as serious as anything this country has seen in the past," according to CBS. Howard, 33, went to work for the CIA's clandestine service in January 1981 and was fired by the agency in June 1983, according to U.S. officials who were uncertain as to the reason for his dismissal. Howard told co-workers when he returned to his native New Mexico in July 1983 that he had just turned down a government assignment to Moscow. That refusal might have prompted a firing, but two sources indicated Howard had failed a CIA -administered polygraph. The CIA tests prospective, current and departing employees on the polygraph for security breaches, and in some but not all circumstances, a failure can lead to an employee's firing. The test is intended to cover a wide range of subjects, from espionage to simple negligence with secret information. One intelligence source has said there is no evidence Howard worked for the Soviets before he left the CIA, but other sources have suggested he hooked up with the Soviets very shortly before he left CIA. Either case would be less damaging than if Howard had worked inside CIA for some time under the actual direction of the Soviets. Asked what motivated Howard to work for the Soviets, one official said Thursday, "He was ticked off over his assignment to Moscow. That's why he went over to the other side." Curtis Porter, who hired Howard in July 1983 as an economic analyst for the New Mexico legislature's finance committee, said, "He said he was going to be posted to Moscow and wouldn't want to raise his kid there. ... He never went." Howard's son, Lee, is now 2. ContiV" Sanitized Copy Approved for Release 2011/03/08: CIA-RDP88GO0186R000200150012-5 Sanitized Copy Approved for Release 2011/03/08: CIA-RDP88G00186R000200150012-5 Porter said Howard claimed to have worked for the State Department in Washington. The State Department job was Howard's cover while at CIA. One former top-level U.S. counterintelligence official said it was surprising that a young agent would refuse a Moscow assignment even with a small child. "A young agent can't expect to get London or Paris. Besides, Moscow is sort of a plum in terms of one's career, and there are worse foreign outposts," the former counterspy said. "However, if the agent were already working for the Soviets, he might be worried that they would press him to do so many things in Moscow that he would get caught." Howard was charged by the FBI on Sept. 23 with conspiring to transmit national defense information to a foreign power. FBI agents have been trying to arrest him since then but he has been missing from his home in Santa Fe, N.M. since Sept. 22. Vitaly Yurchenko, a ranking KGB official who defected this summer in Rome, / has told American authorities that two ex- CIA agents went to work for the Soviets, and one official says Howard probably is one of them. '-At the State' Dep rfinen , s~QftesMan'Ctiarle's Redman satd'Howard never, worked for the department or the U.S. Embassy in Moscow. A department official said Howard's planned transfer was entered into the records for his cover job at State and, the records never were corrected because of an oversight. Meanwhile, a minor flap developed inside the Justice Department over Howard's success in eluding FBI agents. One department source said Justice officials felt the FBI agents had bungled the effort to keep track of Howard, but a federal law enforcement source said the agents did all they could before an arrest warrant was obtained. The department source said agents went to his home while he was out before he fled, and his wife let them conduct an informal look around the house. An FBI affidavit filed in federal court in Albuquerque said FBI agents interviewed Howard himself an Sept. 20 and said the FBI "believes that after Howard's interview with the FBI and his speculation that he would be charged with a federal violation, he fled sometime during the evening of Sept. 21." Howard abruptly left work on Sept. 20, leaving behind a typed resignation note. This source said FBI agents were still watching the house when Howard slipped away, apparently overnight on Sept. 21. He is thought to have flown from Albuquerque, 60 miles away, to Dallas on the afternoon of Sept. 22. But a federal law enforcement source said the agents were not there to keep constant watch on Howard. "Their purpose was to find our where he lived, how many members were in his family, when he normally left and came home, and any other habits that might assist them later if they came back for an arrest," this source said. "It's often necessary to contact even the subject or their relatives directly to get probable cause for an arrest, and that was necessary in this case," the law enforcement source said. "The agents had no arrest warrant, and he could have told them to get lost," he continued. "Sure, it would have been nicer if he didn't leave an a moonless night, but he is a trained agent." On that Saturday night in Santa Fe, there was a half-moon, but there were clouds. Sanitized Copy Approved for Release 2011/03/08: CIA-RDP88G00186R000200150012-5 Sanitized Copy Approved for Release 2011/03/08: CIA-RDP88GO0186R000200150012-5 ASSOCIATED PRESS 5 October 1985 FORMER CIA CHIEF PREDICTS MORE SPIES TO BE FOUND AUSTIN, TX A former top U.S. spymaster says he was not surprised by charges that a fugitive former CIA agent sold secrets to the Soviet Union, and predicts more double agents will be uncovered. "The odds are high there will be spies in other agencies as well," said Bob Inman, a former director of the National Security Agency and a former deputy director of the CIA. Inman, in an Interview published Saturday by the Austin American-Statesman said internal changes in the CIA designed to identify double agents "may be the beginning to pay off some dividends." Former agent Edward L. Howard has been charged with selling U.S. intelligence secrets to the Soviet Union. He has been sought since he disappeared from his home in Santa Fe, N.M., less than two. days after FBI agents confronted his with espionage allegations on Sept..Tp.... , Howard, 33, met in Austria a year ago with Soviet KGB officials and received money for U.S. intelligence secrets, according to an affidavit filed in federal court in Albuquerque, N.M., and made public Friday. According to government sources, Howard was fired by the CIA in 1983 after he refused assignment to Moscow and was implicated by a polygraph test in petty theft of money and in illegal drug use. Sources in Washington said the FBI was investigating a second suspect who, like Howard, was fired from a U.S. intelligence job. Inman said it was not unusual to see a flurry of spy defections in a short period as has happened to both East and West in the past few months in Europe. "You tend to get them in cycles," he said. He said spies who defect often identify other spies and "moles," or double agents. "Instantly there is a tendency for the handlers of those agents to send out an alarm that they may be exposed," Inman said. "In some cases they don't move and the leads come out and you begin to arrest people." Inman, a retired admiral, is president of Microelectronics and Computer Technology Corp of Austin. He was director of the National Security Agency from 1977 to 1981 and deputy CIA director in 1981 and 1982. Sanitized Copy Approved for Release 2011/03/08: CIA-RDP88GO0186R000200150012-5 Sanitized Copy Approved for Release 2011/03/08: CIA-RDP88GO0186R000200150012-5 Howard is the only known possible Soviet mole. But a second former CIA officer is also reported under suspicion. CIA spokesmen reaffirm emphatically there is no reason to suspect any present CIA employee. Sanitized Copy Approved for Release 2011/03/08: CIA-RDP88GO0186R000200150012-5 Sanitized Copy Approved for Release 2011/03/08: CIA-RDP88GO0186R000200150012-5 MT$CLE APOEMffD ON PAGE )-Ag __ Soviet defector led KGB in U.S. By Bin Gertz TM YVAN.wyOM Mae Senior Soviet KGB defector Vitaly Ylrchenko has been identi- fied as Moscow's top North American spy operations expert, according to the US. State Depart- ment. After weeks of official silence, the State Department saidthat Mr 'ear- chenko has been in the United States "for some time" after defecting in Rome. ..Prior to his voluntary arrival in the United States in August 1985, Mr. Yurchenko served as deputy chief in the North American Department of the KGB's First Chief Directorate" the statement said. "The First Chief Directorate handles KGB intelli- gence operations worldwide:' Mr. Yurchenko "had previously asked that his presence here not be publicized:' the statement said, explaining why official comment had been withheld prior to last week. "Mr. Yurchenko was specifically responsible for KGB intelligence operations in the United States and Canada," the statement said. During what was described as a"lengthy career" in the KGB, Mr. Yurchenko held "various key posi- tions" in the KGB, including the most sensitive post of global coun- terintelligence - directing all pen- etrations of foreign governments and policing the KGB and GRU, the military spy service. He also ran KGB operations out of the Soviet embassy in Washington between 1975 and 1980, the State Department said. As deputy chief in the North American department, Mr. Yur- chenko would have directed several categories of KGB operations in the linited States and Canada. WASHINGTON TIMES 14 October 1985 These activities, according to one intelligence expert who declined to be identified, would have included political, military and technological espionage, such as handling Ameri- cans and foreign nationals spying for Moscow; "active measures;'- var- ious covert action and "disinfor- mation" programs; and a network of "illegal" agents operating indepen- dently of Soviet and East bloc diplo- matic representatives. The statementyrovided no data for Mr. Y ircnenim a duties before or after his 1980 But he is a eved to have directed KT~ -terrll' t\vn wunt2r=u~,no'nro netwrm~~e after leaving et embassy in as ington and prior to his romo- ti e or Me North AmericarL_ d en a poste held until Aug _ 1. The State Department identified Mr. Ylirchenko's counterspy role as "chief of Department S of Director- ate K [worldwide counterintelli- gence] of the First Chief Directorate," a position that would have provided him with access to some aspects of virtually every operation of the KGB, GRU and East bloc foreign intelligence services throughout the world. Soviet security services conduct very active counterspy programs that require officers to monitor, to some degree, all Soviet and East bloc agents and the information they pro- vide to the KGB and GRU, the intel- ligence expert said. Intelligence sources close to Mr Yurc en s debriefing sal t e KGB officer has been nrovidina L LS. authorities with a win fall of lli- gence ata a out KGB operations and operational methods since August is debriefing by Justice Department and CIA officials began ffien at an undisclosed location in the ni tes an is expected to con- tinue ors -several Years. these who Akre s -tau of snvina 11 w the met Union after leaving the agency One of the forme; CIA o eratives, Edward a ow elude I d _1 surveillance agents to st mon Sanitized Copy Approved for Release 2011/03/08: CIA-RDP88GO0186R000200150012-5 Sanitized Copy Approved for Release 2011/03/08: CIA-RDP88GO0186R000200150012-5 ASSOCIATED PRESS 17 October 1985 fiLE ONLY HOWARD MAY BE IN MOSCOW, SOURCES SAY BY MICHAEL J. SNIFFEN WASHINGTON (AP) U.S. officials tracked fugitive ex-CIA agent Edward L. Howard, charged with spying for the Soviet Union, to Helsinki, Finland, and presume that he is now in Moscow, sources said Thursday. Two administration sources, who declined to be identified by name, said that Howard, who disappeared from his New Mexico home Sept. 21, was traced by FBI agents first to Dallas and Austin, Texas, and later to the Finnish capital, from which entry into the Soviet Union would be relatively easy. Howard, 33, who was fired by the CIA in June, 1983, was charged by the FBI on Sept. 23 with selling U.S. intelligence secrets to Soviet KGB officials in Austria a year ago. Howard was forced to resign from the agency after a polygraph test suggested that he had used illegal drugs and engaged in petty theft. The resignation occurred shortly after he had turned down an assignment to Moscow with the CIA's clandestine service. ~Ealie?r', -government' ourcesh* d ,reported that the United States had recently lost contact with a Soviet citizen who had for several years provided valuable information about high-technology electronics and aviation research. On Thursday, the Wall Street Journal identified the missing agent as A.G. Tolkachev. The Journal said Tolkachev was an electronics expert at a military aviation institute in Moscow and had told the CIA about Soviet research on the electronic guidance of aircraft and on so-called stealth'' technology for avoiding radar detection. Three government officials on Thursday, however, disputed the Journal's contention that Howard had tipped the Soviets off to Tolkachev and that Howard had been given Tolkachev's name because he was to be assigned the task of communicating with Tolkachev in Moscow. One of these government sources said U.S. intelligence officials were not prepared to link the disappearance of the agent in Moscow to the Howard spying case. Another government official said the agent in Moscow may have been uncovered through the use of an invisible spy dust'' that the KGB has been using to track contacts between U.S. officials and Soviet citizens, or because Soviet agents observed so-called ''dead drops'' where agents in Moscow hide messages for one another. A third government official questioned whether an agent as valuable as the one in Moscow would be assigned to a CIA officer as young and inexperienced as Howard. U.S. officials were tipped off to Howard's alleged spying by Vitaly Yurchenko, the No. 5 officer in the Soviet KGB, who defected to the West in Rome more than two months ago. Sources said Yurchenko provided an alias and enough descriptive information for U.S. agents to identify Howard as one of two U.S. officers who Yurchenko said were spying for the Soviet Union. U.S. sources have said that the second former U.S. intelligence official is still under surveillance by the FBI in an effort to obtain enough evidence to justify an arrest. Sanitized Copy Approved for Release 2011/03/08: CIA-RDP88GO0186R000200150012-5 Sanitized Copy Approved for Release 2011/03/08: CIA-RDP88GO0186R000200150012-5 FOR THE DIRECTOR FROM PUBLIC AFFAIRS CONTACTS WITH THE MEDIA ON 23 OCTOBER 1985 AGENCY CONTACT QUERY --------------------------- - - - - - - - - - - - - - - - - - - - - - - - - - - - - STAT Gertz, Bill STAT WASHINGTON TIMES STAT STAT 01 N I Still writing article regarding Sporki-n nomination: 1) Did Sporkin offer to find a lawyer who would take 2) When did in the NIC? Lynch, Pat NBC News Has conf i rmid A o her satisfactiol? t, te..*istence of the "secGnd4parson,* that he was a CII eIpI,oyee, and that he is go longer with the Agency. t., She has not been able t? a$csrtain his name or what t;et he had with Howard1 Iboe`s Agency enter into contracts and do not give grants. 1)?Mr. Soorkin advise' but did not offer to find one who would work free of charge. 2) in 'June 19W. ADMINISTRATIVE INTERNAL USE ONLY Sanitized Copy Approved for Release 2011/03/08: CIA-RDP88GO0186R000200150012-5 FOR THE DIRECTOR FROM PUBLIC AFFAIRS Sanitized Copy Approved for Release 2011/03/08: CIA-RDP88GO0186R000200150012-5 CONTACTS WITH THE MEDIA ON-23 OCTOBER 1985 MEDIA REPRESENTATIVE AGENCY CONTACT QUERY -------------------------------- COMMENT STAT have any 9%idance on or off the record? t. Shannon, Kay Has CIA provided any TV, TX Y Referred to Justice. inform ti n a o on Edward Howard? Triplett, Sally Requests co AMERICAN LEGION MAGAZINE pY of: speech Provided. i g ven by DCI to:SRI conference on terrorism. ADMINISTRATIVE INTERNAL USE ONLY Sanitized Copy Approved for Release 2011/03/08: CIA-RDP88GO0186R000200150012-5