THE CIA PLAYED A DEVIOUS BUT LEADING ROLE IN THE RISE AND FALL OF BISHOP, BALDWIN

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP90-00494R001100700025-2
• Release Decision: RIFPUB
• Original Classification: K
• Document Page Count: 13
• Document Creation Date: December 22, 2016
• Document Release Date: July 26, 2010
• Sequence Number: 25
• Publication Date: March 1, 1984
• Content Type: OPEN SOURCE

Approved For Release 2010/07/26: CIA-RDP90-00494RO01100700025-2
EXCLUSIVE' RewaldmrCM Links Rev'
H AWFAA J I
INVESTOR
The CIA played a
devious but leading
role in the rise and fall of
Bishop, Baldwin
Ron Rewald's defunct consulting firm was a
front in the most embarrassing tradition.
It's beginning to look like Honolulu
bankruptcy trustee Thomas Hayes
took on more than he bargained for
when, court appointment in hand, he
first strode into the offices of Bishop,
Baldwin. Rewald, Dillingham &
Wong, Inc.
That was early last August and
Hayes' takeover of the Honolulu
investment counseling firm with the
staccato name capped a landslide of
events that in less than a week had
toppled the company from
prominence to ruin.
On July 29, a local television station
aired a report that Bishop, Baldwin
was under investigation by state
consumer protection authorities and
hinted that the firm's chairman, 43-
year-old Ronald R. Rewald, may not
be the classy investment wizard that
most everyone thought him to be.
The next day, Rewald was found in
a Waikiki hotel room with his wrists
slashed. Rushed to a hospital, he
quickly recovered from what the
police said was an attempted suicide.
But while Rewald was still in the
hospital, the investment empire he'd
formed just five years before came
unglued. After a half-hearted attempt
at business as usual, Rewald's partner,
Sunlin "Sunny" Wong, promptly
resigned as company president and
declared his willingness to cooperate
with any and all of the state and federal
investigators suddenly gathering on
Bishop, Baldwin's doorstep. The
dapper, 34-year-old Wong was quickly
followed in his hasty exit by many of
the 30 or more attorneys, accountants
and others that Bishop, Baldwin had
brought on board as well-paid
professional "consultants."
On August 4, a Honolulu federal
court declared Bishop, Baldwin
involuntarily bankrupt and froze its
assets, along with those of the
company's still-hospitalized leader,
Ron Rewald.
Open-and-shut. The next day,
Tom Hayes stepped in as Bishop,
Baldwin's interim trustee and started
treating the company's collapse as an
open-and-shut case. Though Rewald
had ordered certain records removed
the day of his apparent attempted
suicide, Hayes immediately
announced that a quick check of the
company's files revealed that over
300 investors had entrusted about
S17 million to Bishop, Baldwin and
that the only sign of what had
happened to their money was that it
had been spent, not on the high-
yielding investments that had
attracted the depositors but on a
cornucopia of business and personal
expenses that, said Hayes, had
emptied the company's coffers.
Rewald, declared Hayes to a
stunned Honolulu business
community, had run an elaborate
scam. His words were echoed by the
bankruptcy judge, who labelled
INSIDE THIS ISSUE:
? Crisis at shipyards, page 5
? Aloha's friendlier skies, pag
? S & Ls' big losses, page 14
The long road
to profits
Some Hawaii S&Ls will be a
recovering from losses of the
At the end of last year, the sighs of
relief were almost audible among
Hawaii's savings and loan associations.
For 1983 brought a none-too-soon
upturn in their businesses that, it was
widely supposed, also spelled a return
to profitability.
But, unlike the state's major banks
whose publicly owned holding
companies report their profits each
year, providing a window on how those
institutions are doing, the S&L's are
traditionally tight-lipped about such
financial details. The best indication
they usually provide is the balance sheet
data that descril
assets-an ov
conditions, but
important profit
Last year, the
showed a shar
preceding two
market woes ate
and deposits any
their funds It w:
had had a discos
few people our
selves knew has
With 1983's in
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 Approved For Release 2010/07/26: CIA-RDP90-00494RO01100700025-2
HAWAII INVESTOR
Rewald
Continued from page
Bishop, Baldwin a "Poazi scheme"
wherein investor finds were
siphoned off for ulterior purposes and
paid back only as necessary to keep
up the pretence of legitimate
investments.
To no one's surprise, Rewald was
arrested on his release from the
hospital on theft charges from two
investors. One of them was John C.
"Jack" Kindschi, a former Bishop,
Baldwin consultant and close
associate of Rewald's. Kindschi had
been one of Rewald's first visitors in
the hospital. Before he joined Bishop,
Baldwin in 1981, he was the Honolulu
section chief for the Central
Intelligence Agency. Bishop.
Baldwin's records carried Kindschi as
a $185,000 investor in the company.
They also revealed that on the day of
Rewald's attempted suicide he
withdrew $140.000 from his account.
Subsequent disclosures show that
prior to his "retirement" from the CIA,
the 56-vear-old Kindschi had written
personal checks to Bishop, Baldwin
and three associated companies
totalling about $2.01X1. The checks, all
in relatively small amounts. were
recorded as payments for telephone
hills. Similar payments were made
after Kindschi joined Bishop. Baldwin
by his successor as the CIA's local
section chief. John Rardin.
Fanned rumors. Such revelations
fanned speculation that Bishop.
Baldwin had somehow been involved
with the CIA. The federal bankruptcy
court at first did little to squelch the
rumor when, acting in the federal
agency's request, it scaled many of the
Bishop. Baldwin files that Rewald had
first removed and after his arrest
surrendered to the court. The court
slapped a gag order on any discussion
of the matters contained in the sealed
documents, but interim trustee Hayes
revealed that a letter missed in the
dragnet indicated that the CIA may
have halted an earlier internal
Revenue Service investigation of
Bishop. Baldwin.
i'hc letter, dated January 18, 1983,
was from Ron Rewald to the CIA's
John Rardin. It asked Rardin to
expedite an earlier request that the
CIA intercede in an IRS audit of
Rewald's personal finances because
they contained some relationships that
he would rather not explain. What
Haves didn't see was a letter written
just 10 days later by Bishop, Baldwin
attorney Dana W. Smith to IRS
Honolulu investigator Joseph A.
Camplone. The letter confirmed that
Camplone had been instructed by
higher ups in the IRS to hold off on the
Rewald investigation.
Speaking with authority, however,
Hayes declared that, at the most,
Bishop, Baldwin and its global
network of 17 offices- most of which
he described as no more than "a desk
and telephone"-served as innocuous
mail-drops for the CIA.
Hayes hadn't changed his mind
about either Rewald or his company
when, in February, his office issued a
voluminous report detailing Bishop,
Baldwin's finances. It showed that
between 1979. the company's first year
of operations, and August 4. 1983, the
date it was declared bankrupt. it took
in a total of $20.4 million in
investments. Deducting money paid
back or spent on behalf of investors.
the company ended up owing more
over SI million spent on two ranches
near Honolulu. one in Waimanalo and
the other at Pupukea, and the Hawaii
Polo Club, which Rewald bought two
years ago.
The ranches and Polo Club were
among a long list of enterprises into
which the trustee's printout shows that
Rewald or his firm pumped close to S4
million. Also on the list is MotorCars
Hawaii. a classic auto emporium
where Rewald stabled his personal
fleet of sportscars. But the report
declared that none of these were valid
investments. Reiterating a claim made
by Hayes since August, the report
concluded that Bishop, Baldwin had
made no legitimate investments. It had
spent all of its investors' money on
indulging Ron Rewald's fancies, on
giving his cronies a ready source of
cash, and on providing Bishop.
Against a different backdrop, the jigsaw
pieces fit.
than 300 of its clients $12.6 million.
And it has no funds left to repay them,
unless the trustee can collect $2.3 in
overdrafts by 80 other investors or
take advantage of a clause in Hawaii's
bankruptcy law that makes those who
take money out of a firm 90 days
before its collapse put it back. The
trustee is trying to recapture funds on
both counts. But. so far. only ex-CIA
section chief Jack Kindschi has
responded. He has quietly given back
the $140,000 he took out on July 29.
Further collections are unlikely.
Most of those investors who drew
more out of their accounts than they
put in are former consultants and
others associated with Bishop.
Baldwin who have had to adjust to
more modest lifestyles since the firm's
demise. Even so, the most that
investors would get back from such
repayments is about 20 cents on the
dollar.
Plethora of purchases. The trustee's
report makes Ron Rewald the biggest
culprit in this debacle. In accounting
"to the penny" what happened to the
missing millions, the report says that
Rewald took $4.7 million from what it
calls his "bogus investment
counseling" concern and used it for
"personal spending." By the trustee's
reckoning, he spread money lavishly
over a plethora of purchases ranging
from a suit of armor to decorate his
waterfront home to veterinary bills for
his string of polo ponies. Included was
Shipyards continued Irom page 6
of a commercial shipyard's activity is
high-tech." asserts Lout. "One modern
Navy ship, with its sophisticated
weapons, navigation and other
systems, is the equivalent of a $100
million high-tech company," he
declares.
KEMS. Inc., a Honolulu company
that specialties in electrical and
electronic repairwork on ships, had
developed a crew of highly trained
technicians before the slump in Navy
contracts. Now, it has laycd off all but
six of what six months ago was a 21-
man crew.
Roy Yee, KEMS' president. says
that he saw the cutbacks coming and
has tried to diversify into a retail
marine electronics business and
repairwork for fishing and pleasure
boats. But the big drop in Navy work
has obviously hurt. His company's
former technicians have tried to find
work in the local construction
industry, one of the few places that
some of their skills might be utilized,
"but they're not hiring these days,
either," says Yee, "These are specialists
that, if they can't find work here, will
either have to give up their skills or
take them to the mainland." he
laments. Hi
Baldwin's consultants jet-set careers
hopping from one exotic company
office to another.
There was nothing particularly new
in the trustee's report: it simply
documented what Hayes and others
involved in picking up the Bishop,
Baldwin pieces had been saying for
months. The only dissent has come
from Rewald and some of his former
associates. Though muted by the
court's gag order and fear of other
repercussions. these survivors paint a
far different and more sinister picture
of Rewald and his mysterious
company.
Pieces fit. Placed against a different
backdrop than the one provided by the
court and trustee, the jigsaw pieces fit
as they never did for the public
officials. In the picture that emerges,
Bishop, Baldwin's globe-girdling
string of "offices" makes sense. its
multi-million dollar investor "slush
fund" has a more useful purpose, and
the company's otherwise whimsical
"investments" do produce a yield after
all. And, the key to it all, the man at the
center of the picture, Ron Rewald,
emerges as a loyal disciple of what has
been called the international cult of
intelligence.
On January 30. Rewald was released
from the Oahu Community
Correctional Center after his family
scraped together enough assets tome et
his $140,000 bail. In the preceding two
months, the bail had been twice
reduced from an original $10 million.
The initial amount, unprecedented in
Hawaii, was set ostensibly to keep
Rewald in jail where he could neither
make good on his supposed suicide
attempt nor skip town with the
illgotten gains that trustee Hayes and
others were claiming he had bilked
from investors. Rewald is now suing
Haves for such obstructionism and
other alleged offenses. But that isn't
the first lawsuit he has filed since
getting out of jail.
Just days after his release. Rewald
sued the CIA for a whopping $671
million. The suit charges that the
federal agency was not only
extensively involved in Bishop.
Baldwin's activities but that the
Continued on page 8
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Rewald
Continued from page 7
company, along with two others, was
specil ically formed in the late 1970s on
instructions from the agency TheCIA
even nicked Bishop. Baldwin's name.
claims Rewald, because the firm was
mtenced to concentrate its "business"
in thr Far East. where the names
Bishop, Baldwin and Dillingham-all
promilent in Hawaii and other Pacific
business circles -would give it
credibility Rewald and his partner
Sunny Wong were the only principals
listed n the company's title who
weren't bogus.
Rewald claims that he acted as a
full-time covert agent for the ('IA
dating hack to 1977, when he moved to
Hawaii "rom his native Wisconsin. His
associat.on with the agency goes back
even further. In the mid 1960s, while a
student at the Milwaukee Institute of
technology. Rewald says that he was
recruited by the agency and employed
part-time to spy on student activist
groups at the University of
Wisconsin's Madison campus. Over a
nine-month period in 1967-68, Rewald
was paid $120 a week for his efforts
and reported the results to the CIA's
Chicago office.
Breaking in. After a hiatus of several
years. Rewald began taking more
ambitious assignments from the CIA
He worked for a sporting goods
company in Milwaukee and made
several buying trips to the Far East.
While there. he carried out relatively
minor intelligence-gathering chores
for the agency and made slime contacts
that would later prove useful. One of
the friends he cultivated was a
Japanese sporting goods manufactur-
er whose son worked for that country's
Ministry of Transport.
In 1976, Rewald formed a company
called CMI Investment Corp., a
counseling firm that furthered his
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-------------
excuse for travel. That year, the
sporting goods firm he had risen to
head went bankrupt and so did
Rewald. In the entanglement, Rewald
got into a scrape with Wisconsin
authorities for violating the state's
franchising laws. He was also
concerned about Post-Watergate
trustee's report, which purports
through the five Honolulu hank
accounts it analyzed to account for
98f7r of all funds flowing into Bishop,
Baldwin since its inception. The report
attributes only 52,700 or so in
telephone hill payments to the agency.
Any other CIA contributions, if they
The CIA wanted the HSST plans and sent
Rewald to steal them.
federal investigations then being made occurred. must have come in under the
of the CIA's domestic spying guise of investor deposits, says the
operations, an activity prohibited by report And James Wagner. an
the agency's charter. Rewald
expressed his worries to his contact at
the CIA's Chicago office and said he
was thinking about relocating to
Hawaii. The agent encouraged him to
do so and gave Rewald the name of the
agency's man in Honolulu, chief of
section Eugene J. Welsch.
After Rewald, his wife and five
children moved to Honolulu. Rewald
re-established CMI Investment. took
in local real estate broker Sunny Wong
as a partner and looked up Welsch It
was Welsch who gave Rewald his first
major assignment for the CIA.
Impressing the agency. Working
with the Japanese Ministry of
transport. Japan Air Lines had
developed what it called a high speed
surface transportation system, or
HSS t for short, Using a top secret
magnetic propulsion technique, the
system was intended for use on trains
that would carry passengers between
Japan's Narita International Airport
and Tokyo at speeds of close to 200
miles per hour. slicing travel time from
the usual 90 to about 15 minutes. The
system works, but the problem was
and still is enabling passengers to ride
safely at such break-neck speeds.
Nevertheless, the CIA wanted the
HSST plans to pass on to U.S. industry
and sent Rewald to steal them.
Through the son of his formersporting
goods contact he suceeded in doing so
and the agency was impressed with his
work.
Other Far Eastern assignments
followed. In 1978, just before U.S.
relations with the Peoples Republic of
C
hina were normalized, Rewald
visited mainland China under the
banner of his CMI Investment Corp.
He made the trip to assess trade
prospects and make contacts for the
CIA. Because Rewald succeeded
where many others had failed, he won
high praise from section chief Welsch.
who was about to be replaced in his
Honolulu post by another agency
veteran, Jack Kindschi.
Under Kindschi, Rewald's
involvement with the CIA moved into
high gear. Late in 1978, Bishop
Baldwin was formed to spearhead two
other cover operations already
established at the CIA's direction,
Hawaii-registered companies called H
& H Enterprises and Canadian Far
East Trade Corp. With Bishop,
Baldwin in place, Rewald's old firm,
CMI Investment, was all but
abandoned.
Rewald says that the CIA not only
gave Bishop. Baldwin its name but an
operating budget of "several million"
dollars to get it underway The claim
differs sharply with the bankruptcy
notion. To produce the amount of CIA
support claimed by Rewald "would
require that a large portion of the
investors had to he agents," he says.
Rewald, who despite the massive
odds against him has maintained a
steely composure throughout his
ordeal, is unruffled by the trustee's
claims. He maintains that Haves, who
is now Bishop BaIdwin's
administrator. Revnaldo (iraulty, an
attorney and state legislator who was
named permanent trustee, and the
lawyers and staff helping them are no
closer to the truth today than they were
in August.
(0-mingled funds. Rewald says that
the five Honolulu hank accounts on
which Haves and his associates base
their analysis reflect only part of what
were Bishop. Baldwin's real finances.
Millions more, he insists, were buried
in overseas accounts in which, as in the
Honolulu hanks, innocent investor
funds were freely co-mingled with
deposits from the CIA and other,
not-so-innocent "investors."
Hayes acknowledges the existence
of the overseas accounts, but says they
are all but empty. Rewald agrees, but
he claims that that wasn't the case at
the time of Bishop. Baldwin's collapse.
He says that there was then enough
money in the company's foreign
accounts to repay the $10 million that
the trustee now says is owed to
investors, and much more. But the
funds quickly disappeared when
Bishop, Baldwin's operations
disintegrated, leaving a trail that grew
cold while Rewald sat in jail.
But evidence of these accounts and
their intended use is murky, obscured
by the court's order against revealing
the contents of Bishop, Baldwin's
still-sealed files and, if the claims of
Rewald and a few others are to be
believed, an elaborate and well-oiled
mechanism with which the CIA and
others in the country's intelligence
network bury their mistakes.
Characteristically, the CIA has
steadfastly denied any role in and
refused further comment on the
Bishop, Baldwin case. Even the clear
involvement of three of its former
Honolulu section chiefs. Jack
Kindschi and, to a lesser extent.
Kindschi's predecessor Eugene Welsch
and his successor John Rardin, has
failed to shake the agency's policy of
silence the most that it has said came
in response to Rewald's recent damage
suit. when a spokesman contacted at
the CIA's Langley, Va. headquarters
referred a questioner to the ruling
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Cl, k
eni Coed,Id ACC- nt pSendo n r 'he coca nay
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Rewald
Continued from page 8
made last September by Bishop,
Baldwin's bankruptcy judge that
the company's sealed documents had
no beating in its financial affairs.
Yet the jurist concerned. veteran
federal judge Martin Pence, has
privately admitted that he didn't
personally inspect the reams of
documents before, acting on the advice
of the CIA, he sealed them in August.
Nor did the judge read a lengthy
affidavit submitted by Rewald to
explain his CIA involvement before he
sealed that, too.
And Rewald hasn't had much luck
in getting a rise out of his alleged
former employer. A response of sorts
that did come was the reassignment by
the CIA of the head of its litigation
division, John Payton, to the post of
assistant U.S. Attorney in Honolulu.
What might otherwise seem a
demotion for the agency's top lawyer
indicates the importance it places on
Rewald. But so far it has kept that
concern to itself.
Shortly after his imprisonment,
Rewald had his civil attorney, Robert
.A. Smith, write a letter to CIA
Director William Catty asking for $10
million in commissions that he said
were due Bishop, Baldwin on an arms
deal it had arranged for the agency in
Taiwan.
Pandora's box. There has been no
direct reply to the letter, but, if the
ere are many compelling reasons
for locating your business at
Campbell Industrial Park The follow-
ing explores those reasons and allows
a few of our tenants to explain their
motives for locating at the Park
CAM I U.
1.
PAIM LAND
COST IS 50% OF ITS
NEAREST COMPETITOR
AND 20% OF KAKAAKO.
By far the most attractive reason to
move to the Park is the low cost of
land This low cost enables your
company to have the room to operate
efficiently, hire extra staff and keep
your overhead under control
Average Percentage Cost
Per Acre
claim is accurate, it blows wide open a
Pandora's box of covert activities that
Smith's letter and a crazyquilt of other
evidence indicate that Rewald and
certain of his associates performed for
the CIA. Those activities ranged from
selling huge quantities of military
hardware to such strategically touchy
countries as Taiwan and India to
laundering money for political leaders
like Indira Gandhi and big money men
like Philippine banker Enrique Zobel
and the Sultan of Brunei.
It's in this shadowy context that
many of the loose ends left by the
trustee's explanation of Bishop,
Baldwin's affairs fall into place: like
the $600,000 spent on a seemingly
useless network of overseas offices;
nearly 5800,000 lavished on two Oahi
ranches that were never really used
$300,000 pumped into a Hawaii Pol.
Club that was about to lose its poi
feld; $260,000 for a stable of ponce
and show horses that were rare[
ridden; and nearly $2 million i
salaries and fees paid to a small arm
of investment consultants who nevt
made an investment.
The trustee attributes this wi
spending to Rewald's extravaganc
But it would seem that a mast
swindler capable of bilking hundre,
of investors out of S20 million wou
be more frugal with his ill-gotten gain
And he would surely have taken bett
care of himself than nearly dying, th,
spending six months in jail and comic
Lower Land Cost
for Campbell ]In(
2 Nff OVERIH-0
ISI/30F MY
COMPEITTORS
IN TOWN."
John Ricketts, manager of Ingram
Paper, tells what his low cost means
to him.
"We've been in the Park since 19'8.
When we moved here, people thought
we were crazy. We're in a service
business and they didn't feel we could
maintain our level of service from this
location. But they were wrong Our
services are equal or better than those
of our competitors in town and our
overhead is probably one-third of
rheas. This low rent allows us to hire
another person for customer service
and to carry a larger inventory."
0
E
Ingram Papers manager, John Ricketis:
Our rent savings allow us to carry a larger
inventory
3 "LOW LEASE
RENT REPS
? US COST
COMPEIITIVE."
For a company working on close profit
margins, low rent is very important
Paul Smith, president of Pacific Allied
Products, has just such a company. His
company is also one of the Park's
oldest tenants.
"Our business opened at Campbef
Industrial Park in 1965 In fact we
never been anywhere else. We mat
facture polystyrene coolers, surtbo
building materials and other prods
Our products are low-priced and t
up a lot of storage rtxim being bas
air, surrounded by plastic. Cost co
is very important to us because of
close margins. Our low lease rent
keeps our overhead under control
keeps us cost competitive"
Pacific Allied Products president. Pas
When we needed to expand it was .
easy move right within the Park-"
"EFFICIENT
4 OPERATING
SPACE SAVES
? MONEY."
Low land cost enables you to has
room to operate efficiently Mike
Durant of Jorgensen Steel explau
what this means to his company.
'We moved our manufacturing
operauon from the airport area t
Campbell Industrial Park in 19'-
have five acres, which means we
space to operate efficiently The
part of our overhead is labor cos
inefficiency meauit wasted man h
and wasted money For example
previous location, when we wert
running a large pipe order, we w
Approved For Release 2010/07/26: CIA-RDP90-00494RO01100700025-2
 Approved For Release 2010/07/26: CIA-RDP90-00494RO01100700025-2
MARCH 1984 HAWAII INVESTOR 13
out looking for work. For nowhere in
the trustee's exhaustive study of
Bishop, Baldwin's affairs is there the
slightest hint of hidden booty for Ron
Rewald. As Haves -ias said from the
start. "He spent all :he money."
If such behavior s out of character
for the super-stammer that Rewald
has been made out to be, it is much
more in keeping with the CIA's pattern
of using private U businesses and
institutions as fronts for a potpourri of
clandestine activities.
Nugan Hand. A case in point is the
Nugan Hand Bank. whose spectacular
demise four years ago is still
embarrassing the CIA The rise and
tall of the Sydney-based bank bear a
striking resemblance to the
rollercoaster history of Bishop,
Baldwin.
Continuing investigations by an
irate Australian government indicate
that Nugan Hand was set up with CIA
backing in 1973 to carry out an
assortment of covert tasks and dirty
tncks. One of them seems to have been
helping to topple the Labor
government of Prime Minister Gough
Whitlam, who had irked Washington
with his stand-offish attitude toward
the U.S. Whitlam was sacked late in
1975 after a well-aimed misinforma-
tion campaign had scandalized his
government. The CIA calls the
technique "disinformation." which is
the lacing of truth with deliberate lies.
Though they're not certain, the
Australians now see the CIA's imprint
on what happened to Whitlam and
they suspect that Nugan Hand helped
launder the money that financed his
fall.
Typically, the CIA's financial
support of Nugan Hand Bank went
little beyond providing seed money to
get it started and standby funds. none
of which was easily traceable For
appearance sake as well as for more
practical reasons, agency fronts, called
"proprietories,"are supposed to be not
only self-supporting but highly
profitable Nugan Hand earned
millions on illicit drug trafficking,
arms deals and running a laundromat
for money used for a variety of shady
purposes. Part of the bank's income
lean Higher Profits
strial Park Tenants
have to stop production periodically to
loud pipe and ship it out. There was no
nom for storage, Here we can
manufacture as much pipe as necessary
without unnecessary stoppage. Ample
space to work also means no double
handlling of materiaL"
Jorgensen steel's Mike [Arrant,
1. w'c don t have to double handle materials"
5 PARK
PLANNING
6 AVMWU
oum
Because of the low cast, you can
Prepare for expansion by taking more
land than you now need Campbell
Industrial Park has ten times the
acreage of the next largest park and
the only presently-available acreage
zoned for heavy industry.
Available Vacant
U,
Since its inception, the James Campbell
Estate has set high standards for the
Park's development. It separates light,
general and heavy industry sor that an
electronics firm need not have a steel
processor as its neighbor
The Park has established specific guide-
lines to preserve the physical beauty of
the area to create a pleasant working
environment. Tenant participation
is encouraged though an annual
Beautification Awards pn>-an
large setbacks and wide streets meat
readih available parking for your
customers and employees as well as easy
access for your company and the freeway.
7 THE WESTWARD
MOVEMENT
? (AREA GROWTH)
From 1977 to 1980. the populations of
Pearl City and Makakilo have more
than doubled Mililani Town's growth
has been ten times over. This illustrates
a definite trend in movement to the
ewa end of the island
Government plans indicate that by the
late 1980's, three out of every five new
homilies will settle west of Aiea,
generating a built-in labor force that
would much rather drive to Campbell
Industrial Park than battle the traffic
to town.
Several thousand acres are planned for
residential growth; resort development,
such as the west Beach Resort, and a
secondary urban center.
In addition, the deep-draft harbor will
have a major impact on Hawaii.
creating new fobs and enticing new
industry All the facts indicate this
is the area of growth for Oahu.
went to support the "legitimate- side of
its operations. paying big yields to
unsuspecting investors whose funds
were co-mingled with other income
and high salaries and expenses to both
innocent employees and covert agents
who used the institution's 22-branch
international network as a cover The
rest of the earnings were channeled to
other CIA fronts. contributing to a
cast funding network that is the
backbone of the agency's global
operations,
Officially, the size and budget of the
CIA are limited by law and scrutinized
by both the federal administration and
Congress. But for years the agency has
gotten around these restraints through
Continued on page 14
HOW FAR IS
"TOO FAR"?
From Aloha Tower. Campbell
Industrial Park is only twenty-two
miles and thirty minutes driving time
away during rush hour. The sun is at
your back and you're driving against
the flow of heaw traffic
Is it too tar to drive to save up to 80%
on your lease rent? Is it too far to drive
to have the space you need to work
efficiently and keep your overhead
under control? Is it too far to drive
to work in a well-planned, clean
environment?
Over 120 of our satisfied tenants dont
think so. They're ready to meet their
future at Campbell Industrial Park join
us, and you will be, too.
Call the Estate of James Campbell:
536-1961, or your broker, or write
Suite 500, 828 Fort Street Mall,
Honolulu, Hawaii 96813
0
CAMPBELL
INDUSTRIAL PARK
ki;_.t' dot
Approved For Release 2010/07/26: CIA-RDP90-00494RO01100700025-2
 Approved For Release 2010/07/26: CIA-RDP9O-00494RO01100700025-2
HAWAII INVESTOR
S & Ls
( onnnued l ?osn page I
rates and the resulting upturn in loans
and deposits, it was assumed that
savings in-titutrons' profits had
benefited. though. again. few people
knew how much. One of the accom-
panvmg chats i table Al illustrates the
reason for the optimism nearly solid
gains in say ngs. mortgage loans and
assets for all of Hawaii's eight savings
and loan ass,icianons
But another chart (Table B) paints a
less rosy 7icture. Its source is
confidential. but reliable. I t shows what
the S & L's don't commonly report,
their profits and losses. Though the
figures are now out-of-date, the most
recent being for the six months ended
last June, tnev nonetheless indicate
how serious were the losses of the 1981-
822 debacle and how tar tome
institutions have to go in their climb
hack to profi,abilitv
Most S & Ls contacted won't
comment or how that struggle is
going, other than to voice optimism
based on the r mproved deposit and
loan figures. T-hev say that. with greater
stability in interest rates and the
growing acceptance of adjustable
mortgage loans tAMLs) that provide
the lenders with better protection
against future lumps in their money
costs, the profit outlook has
brightened But they won't say how
much.
Association 12/31/83 12/31/82 %Change
Honolulu Federal $1,167,516,000 51,121,605,000 +4.1
American- 753,073,000 699,864,000 +7.6
First Federal 535,565,000 465,967,000 +14.9
State- 362,729,000 325,870,000 +11.3
International 304,620,000 292,874,000 +4.0
Pioneer Federal 251.887,000 232,592,000 +8.3
Territorial 225,516,000 185,709,000 +21.4
People's 13,047,000 7,550,000 +72.8
Honolulu Federal
American'
First Federal
State'
International
Pioneer Federal
Territorial
People's
Total
working hard to trim costs and keep
their deposits working by pumping
them out as quickly as possible in the
AMLs that all are pushing. That
improves operating margins, the
difference between money costs and
loan income and from those come
profits. Our margins are looking
better now than they have in a long
time." says one S&L executive, who
like others doesn't like to talk in
specifics when it comes to profits.
Mortgage loan volume, all industry
officials say, is the key to, their
industry's future. given reasonably
wide and secure margins It was a
combination of squeezed margins and
plummeting loans that caused the
problems of 1981-82.
Most executives are guardedly
hopeful about the rest of this year, even
with interest rates on the climb again.
The reason: Borrowers are now
accustomed to higher rates and getting
used to the adjustable loans. That, of
course, assumes that the rates don't go
through the roof. And most local
lenders don't think they will, at least
this year.
That's another reason for the all-out
push nowadays to place mortgage
loans. There is little certainty about
what's going to happen to interest rates
after this fall's elections. Nobody,
however, is predicting that they will
come down. And that could spell more
trouble for industry profits, especially
among those associations that are still
recovering from the last slump. HI
TABLE A
Hawaii S&Ls Assets and Liabilities
$3,613,952,000 $3,332,030,000 +8.5
Mortgage Loans
$1,267.859,000 $1,368,953,000 -7.4
780,158,000 773,853,000 +0.8
484,347,000 491,116,000 -1.4
388,951.000 413,250,000 -5.9
313,874,000 298,195,000 ,5.3
303,277,000 290,989,000 +4.2
224,075.000 237,860,000 -5.8
7,895,000 4,350,000 +81.5
$3,770,436,000 $3,878,584,000 -2.8
Honolulu Federal
American'
First Federal
States
International
Pioneer Federal
Territorial
People's
51,602,497,000 $1,651,987,000 -3.0
932,099,000 929,675,000 +0.3
624,943,000 610,448,000 +2.4
485,097,000 478,245,000 +1.4
397,068,000 387,677,000 +2,4
362,224,000 356,126,000 +L7
299,680,000 285,753,000 +4.9
14,103,000 9,344,000 +50.9
$4,717,711,000 $4,709,255,000 +0.2
TABLE B
Hawaii S&Ls Net Income (Loss)
Association 6/30/83
Honolulu Federal $1,168,000
American- (2,372,000)
First Federal 1,379,000
State' (1,994,000)
International (390,000)
Pioneer Federal (1.805,000)
Territorial 908,000
People's 101.000
Total (3,005,000)
-Includes both Hawaii and Utah operations.
Rewald
Continued Irom page 13
the use of front operations and
contract agents whose existence never
shows up on the official records. The
dodge, paid for through and by
hundreds of agency proprietories,
swells the CIA's size far beyond its
legal limits and makes it almost
invulnerable to budgetary squalls in
Washington.
Contract agents. The contract
agents are a key ingredient in this huge
subterranean network. They are a
part-time army of amateurs who join
up for the pay, the excitement, or --an
argument frequently used on U.S.
recruits -- the patriotism. Their
assignments may be innocuous or
dangerous, depending on their skills
and the need, and they may wait for
years between jobs or he employed
steadily. The contracts are recruited by
control officers or other agency
professionals who are likely to be,
knowingly, the only regular agents
they ever meet. The less its contract
agents know the better, the CIA
figures.
That and the usually limited amount
of training they are given make the
contracts a calculated risk for the
agency. Though when they are given a
job the agents sign a secrecy pledge,
that doesn't assure their silence. As a
result, part-time agents are frequently
recruited from retired military
careerists, especially high-ranking
officers who are accustomed to
handling classified information.
Nugan Hand had several former
military brass working for it. One was
its president, Earl P. "Buddy" Yates, a
retired Navy admiral and former chief
of staff for strategic planning with U.S.
forces in Asia and the Pacific. Another
was retired Army general Edwin F.
Black, who once commanded U.S.
troops in Thailand and served as
Nugan Hand's representative in
Hawaii. Such former professionals not
only brought experience and discipline
to their job, but an old-boy network of
contacts that could be useful to the
CIA.
Not too many contract agents,
however, can be star-studded veterans.
The bulk are less seasoned and are
picked for their potential. They have to
prove their mettle before being given
more sensitive assignments.
Frank Nugan was such a person and
so was his partner, Michael Hand.
Nugan was a fast-talking, goodlooking
Australian who moved easily in
Sydney's financial circles when he met
Hand there in 1970. Hand, an
6/30/82 6/30/81
($7,254,000) $42.000
(9,356.000) (6,386,000)
(2,650,000) (1.224,000)
(4,823,000) (1,500,000)
(1,913,000) (937,000)
(1.802,000) (935,000)
(917,000) (960,000)
(9,000) (7,000)
(28,724,000) (11,907,000)
American, was Nugan's antithesis, a
burly, tough-talking ex-Green Beret
who had already done contract work
for the CIA in Southeast Asia. The
pair started an investment counseling
business in Sydney, specializing in
advising former U S. servicemen.
Three years later, though both were
just out of their 20s, they formed
Nugan Hand Bank. which was quickly
to become a major conduit for
transporting CIA funds worldwide.
Things went smoothly for Nugan
Hand for several years. Attracted by
interest rates that were higher than any
others around, deposits flowed into
the hank by the millions. Fueled by its
successful part in torpedoing the
Whitlam government, the hank's
covert activities also blossomed,
involving it in projects all over the
world.
But in the late 70s Frank Nugan ran
afoul of the Australian authorities. He
was accused of cheating shareholders
in his family-owned food business in
Sydney There was talk of pav-offs
linked to drug trafficking. the trouble
didn't seem to bother the easy-going
Nugan, however, except that he
increased to almost daily visits to his
church. And he kept on spending
money at a dizzying rate, including
$500.000 to remodel his Sydney
waterfront home. And on the day that
he died, Nugan was completing
negotiations to buy a 52 2 million
country estate.
Ignored evidence. Nugan's body was
found early one morning in January,
1980. He was slumped on the front seat
of his Mercedes, parked on a country
road near Sydney. Nugan was shot
through the head. Beside him was a
rifle that was later discovered to he
wiped clean of fingerprints- A
coroner's jury ruled the death a
suicide, dismissing police arguments
that because of its angle it would have
been nearly impossible for Nugan to
have fired the fatal wound.
Three months later, the Nugan
Hand Bank collapsed amid a barrage
of official investigations that continue
to this day. Depositors and investors in
the bank stand to lose millions as
authorities hit one blank wall after
another in their search for assets the
CIA has denied any involvement in the
Sydney bank and it and other U.S.
agencies have been cool to the
Australians' requests for help in sifting
the bank's tangled affairs the one
person who might help them the most,
Nugan's partner Michael Hand,
disappeared shortly after Nugan's
Continued on page /5
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 Approved For Release 2010/07/26: CIA-RDP9O-00494RO01100700025-2
HAWAII INVESTOR
Rewald
Continued from page 14
death and hasn't been heard from
since.
Though they've been mentioned, the
similarities between Nugar Hand and
Bishop, Baldwin have largely gone
unnoticed since the Honolulu
company's demise. The swift dismissal
of a CIA connection by those in
authority, the court gag order and the
silence of the company's survivors.
contacts were to be used for placing
orders for such sophisticated hardware
as AWACs and L-1011 transport
planes, part of a huge covert arms deal
that Bishop, Baldwin's contract agents
were negotiating with the government
of India.
The transaction was being handled
for Bishop, Baldwin by S S. Pasrich, a
well-connected Indian national who.
acting as a company consultant, had
established a New Delhi office for
BBRD&W in the former Soviet
The similarities between Nugan Hand and
Bishop, Baldwin have largely gone unnoticed
including most investors, have
discouraged pursuit of the parallel. So,
too, has the departure or submergence
of those most directly nvolved in
Bishop. Baldwin's covert Activities.
Jack Rardin. the CIA's section chief
in Honolulu during Bishop, Baldwin's
final two Bears, quietly eft his post
soon after the company's .ollapsc. An
item planted recently in a Honolulu
4dvernser gossip column revealed his
reemergence in Florida.
Multiple "retirements". Jack
Kindschi. Rardin's predecessor who
supposedly left the agent) to become a
Bishop, Baldwin cons iltant, has
"retired" and gone to ground. This
isn't Kmdschi's tiro retirement from a
CIA cover that was hlown In the early
19'0s he was an executive with Robert
R Mullen & Co., A New York
public-relations firm that was deeply
involved in the Watergate scandal.
When the firm folded. Kindschi
submerged and later resurfaced as the
('IA's Honolulu section hief.
Sunny Wong, Bishop, Baldwin's
former president, has similarly slipped
out of sight. So has Russell Kim.
another HBRD&W consultant who
played a key part in the firm's Far
Fastern money laundering activities.
Kim is listed by the trustee as owing the
company nearly 5100,000 in
overwtthdrawals from his investment
account.
Bishop. Baldwin's contingent of
former military brass was less
developed than Nugan Hand's, but it
was getting there. Retired four-star
general Hunter Harris, once deputy-
commander of the Strategic Air
Command, was a sometimes
BBRD&W consultant. Concern over
Harris' heavy drinking and
talkativeness caused Rewald to sound
An alarm that cancelled a CIA-hacked
expedition to Laos in search of U S
'MIAs led by ex-Green Beret officer
lames "Bo" Gritz.
I t Gen. Arnold Braswell. who
retired in September as inc Air Force's
Pacific commander. was an investor in
BBRD&W and has admitted that he
was "considering" joining the firm at
the time of the collapse. Those close to
the company say, hoever. that the
Association was more of a certainty
than the general lets on and that he
had, in fact, done some work for
Bishop. Baldwin before his retirement.
General Braswell provided the
company with the names, private
phone numbers and introductions to
three former Air Force generals who
hold key positions at major U S.
aerospace manufacturers. The
embassy building. His chief contact in
the talks was Rajiv Gandhi, the only
sur rviving son and a top aide of India's
pit me minister, Indira Gandhi. But the
big arms sale, which would have
The party started about three years
Ago for the personal computer.
And there was dancing.
But there wasn't much talking.
Because as more and more computer
companies arrived,
generated millions in commissions for
Bishop, Baldwin, was still in the works
when the company folded.
Money-laundering. As part of the
arms deal, Bishop, Baldwin was to
shelter funds for the Gandhi family,
including kickbacks to be paid out of
its commissions, and invest them in the
U.S. This arrangement was one of the
paramount reasons for handling the
transaction under-the-table and
characterizes not only some of the
CIA's money-laundering activities but
its efforts to stockpile markers from
key foreign leaders. The hefty
commissions paid to intermediaries
like Bishop, Baldwin-amounts
usually built into the arms' purchase
price -also provide a convenient way
for suppliers to pay the bribes that are
Continued on page 16
When you're late for the dance,
you'd better have a very good reason.
dramatic graphics and from a sub-
stantially more comfortable keyboard
than IBM's.
And, with the flick of a special "turbo"
switch, the Sperry PC could even run
__ o o% faster than IBM.
there were some very
real compatibility
problems. RATING
I ~,Y ~iF:M
Until one latecomer I s ve.,~on .
arrived. Sperry.
With a remarkably
simple solution. The
Sperry W.
It was able to run
all IBM compatible
software.
It was able to run all
this software with
stunningly more
MIS aWIYRIi>? f.Ytil)H
1t:n --Y
mar 'rM
eiuMw .n.nk
,~MMlnNl1t'ATI~INN I~IA(!N11.1T11'V
r4 Yen'. R rvN -1,,n Iv,4rY
Enough for one night.
Not for the people from
Srr FI the Sperry PC had
the additional ability to
plug into the real brains
of an organization - the
main computer. Whether
that system was IBM or
Sperry.
Or both.
The Sperry PC. An
admittedly attractive
arrival.
Rut when you get there Lite. soud
totter have something important w
hnng to the party
To see now the Sperry PC ran work
for you and for your free ropy of the
Micro Software Catalogue. write ip'rry
Corporation. Computer Systems, Uept.
1(M). P.O. Box 5(M). Blue Bell, PA 19424.
Or call 81MLa7 1C362-
CsYF:RRY I111,1ru11- I"1
+SPERV
Sperry Computer Systems, Suite 140. Sperry Building. 3049 Valera Street, Honolulu. Hawaii 96819 80818:16-2810
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 Approved For Release 2010/07/26: CIA-RDP90-00494RO01100700025-2
Rewald
Continued from page 15
common in some parts of the world.
hut taboo for U.S companies since the
l ockheed scandal of a decade ago.
One arms sale that was completed
before Bishop. Baldwin's collapse was
the one to Taiwan on which Ron
Rewald's attorney tried to collect the
$10 million commission. That sale,
which involved such deadly gadgets as
intra-red sights for M-16 rifles,
illustrates vet an ther purpose of the
CIA's underground arms business: the
asnidance of polo. ical repercussions, in
this case in the L S 's fragile relations
with mainland C'iina.
But all of Bishop. Baldwin's covert
activities weren't to he as lucrative, at
least at first. I'sirg its impressive name
and a growing list of happy investors
as mires. the company made friends
with a number of wealthy CIA-
targeted foreigners whose benefit to
the agencv was to he long-range.
On the suttacc_ BBRD&\k offered
them the same halt it used to lure
Icgwmate itsesiors, tvpicalc a ''-0';
jninlnnim aenual return on
investments ttat. the company
.I.unted to some, were guaranteed by
the Federal I)epus~t Insurance Corp
for up to SI`0.1()1) per account
\ohods challentca the claim. which
had limited u', until just before
Bishop, Halilssii closed down the
u,nurance Invent vv. which was clearly
hg's o id the F 1)11. , s,:opc, ,is de\ sed
It certain loreictt investors and there
were, in fact, funds set aside for such a
purpose. The FDIC had nothing to do
with Bishop. Baldwin, but the federal
agency had been primed to say that it
did if asked.
When the insurance claim spread
beyond its intended use, the FDIC
cautioned the company in a le, i-r
addressed to its Napa, Calif. office.
Napa manager Robert Jinks assured
the agency that the claim was
employee error that wouldn't happen
again and the matter was dropped,
This was last June and the error
that front.
Topdthelist. At thetopoftheagency's
target list of rich foreigners was Enrique
Zobel. the Philippine financier who is
reputed to be among the 10 wealthiest ban-
kers in the world. Zobel is a long-rime con-
fidante and key backer of President
Ferdinand Marcos and has powerful
political and business ties around the
globe He was thus not only a good
man to know for his clout in the
strategically sensitive Philippines, but.
properly coaxed. Zobel and his super-
affluent friends could have become
As part of the arms deal, Bishop, Baldwin was to
shelter funds for the Gandhi family.
svmptomiied a serious problem that
Bishop, Baldwin was then having in
controlling the growth of its
investment account, Normal money
market interest rates had fallen well
below the high returns promised on the
company's accounts and the firm's
innocent hut hard-charging consultant
were straining the proprietors's coser
by bringing in more investment clients
than it could comtortahl% r,. idle- I he
company was. in fact, then thing to
phase out all investment accounts
escept those that were needed for its
atones-laundering activities. And the
CIA was pushing for more action on
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major contributors to the CIA's
underground money machine.
One of those friends is the Sultan of
Brunei. the supreme ruler of a tiny. oil-
rich country on the northern coast of
Borneo which recently gained its
ndependence from Britain Since one
of the ways that the CIA pleases its
high-placed allies among the l'S
business and political communities is
by providing them with useful
intelligence. The sultan was reckoned a
good contact to have in keeping tabs
on the oil production plans of OPFC,
of which his country is a member.
The sultan also offered the agencv
and its business allies more tangible
attractions. Brunei has a $45 billion
investment portfolio that before its
independence was managed by the
British. With independence. the purse-
strings passed to the sultan In one of
the biggest banking coups in years,
New York's Morgan Guaranty Bank
and Citibank have replaced London's
hankers as managers of the Brunei
portfolio, a job which at the very least
will produce about $30 million a year
in fee income.
To Bishop. Baldwin and. in
particular. its silk-smooth chairman
Ron Rewald goes at least part of the
credit for this triumph. It came about
through the sultan's close friendship
with Enrique Zobel. the ties that
Rewald forged with the Filipino
hanker, and the rabid interest all three
showed in the gentlemanly sport of
polo
The polo connection. Polo was, in
fact. in many ways the most successful
of the fronts that Rewald ran for the
Cl A in Hawaii He used the sport to
give him and his associates ready
access to the world's elite in an
unguarded atmosphere that they
might never have enjoyed as mere
-
investment counselors
Early_ in 1972. Rewald paid $30.000
for the Hawaii Polo Club. a shoestring
operation that was about to lose the
use of its only tangible facility. a polo
held on Oahu's north shore. But the
530.000 was only the down-payment
on a succession of related investments
that were to exceed $1.3 million. Over
the next year or so, Rewald and his
company poured nearly $300,000 into
the operations of the Polo Club itself.
elevating its Sunday afternoon
matches from sandlot status to lavish
major-league events.
Closely related, about $800,000 was
spent by the company on its ranches at
Approved For Release 2010/07/26: CIA-RDP90-00494RO01100700025-2
Pupukea and Waimanalo. The
company had agreed to buy the
Pupukea property for $3.5 million on
highly leveraged terms. It had an
option to buy the Waimanalo ranch
for $500,000. The arrangements
enabled the company to spend most of
its money on sprucing up the
properties. To add to the
windowdressing. and Rewald's image
as an international sportsman, an
additional $260.000 in company funds
was lavished on a string of 17 polo
ponies and show horses.
But there was a method to this
seeming madness, even though
Bishop, Baldwin's trustee chalks it all
up to Rewald's frivolity The gala polo
matches and the showcase ranches, as
well as Rewald's fleet of fancy
sportscars and high-rolling lifestyle,
were really parts of an elaborate
scheme to enhance Bishop, Baldwin's
image of legitimacy, an image that was
further fed by the fact that not more
than a docen of its 115 worldwide
employees were involved in anything
other than bona-hde Investment and
estate management work
In his dual roles as sportsman-
tinancier. Rewald visited Buenos Aires
during the 1992 Falkland crisis.
Outwardly, he was there to discuss
investments and socialiie with
Argentine polo enthusiasts But the
real purpose of his trip was to assess
for the CIA the safety of the billions
that I S, banks have loaned to
\rgennna Secondarily, he helped
other CIA agents trace the
sophisticated weaponry that the
\rgentines were using against the
British in the Falkland war One of the
trails led to some of Bishop. Baldwin's
contacts in Taiwan.
But the biggest single target of
Rewald's polo ploy was Philippine
hanker Zohel and his global
connections- Zobel provided a window
on the inner workings of the Marcos
regime that was unparalleled and the
CIA had grown concerned about the
dictator's plans- Through intermedi-
aries. Marcos had purchased two
estates in Honolulu's fashionable
Makiki Heights and the agency
wondered if he was planning an early
retirement.
That wasn't the limit of Zobel's
usefulness. With the CIA's help,
Rewald was scheduled to accompany
President Ronald Reagan on a visit to
the Philippines last tall Libel had
arranged for Rewald to meet privately
with Marcos while he Na, in Manila
But Reagan's trip was cancelled and
Rewald couldn't have gone by then,
amwav. He was in jail.
looming profits. When its root fell
in. Bishop. Baldwin was about to sell
its interest in the Waimanaio ranch to
Zobel for $1.5 million, which would
have given it a respectable 22(5)''; profit
on that investment. The compan 's
Pupukea ranch was being groomed to
sell to Zobel's buddy, the Sultan of
Brunet. Bishop, Baldwin figured to
clear about $1 million on that deal.
Even the Hawaii Polo Club was
slated to turn a profit. Northwestern
Mutual Life Insurance Co. had
acquired the land under and around
the Mokuleia field as part of plans to
develop the area into pricey homesites.
A big reason for turning the Polo Club
into a showcase operation was to
 Approved For Release 2010/07/26: CIA-RDP9O-00494RO01100700025-2
Rewald
Continued from page 16
Ron Rewald
rommce Northwestern that it should
use the club as a centerpiece for its
Mokuleia development Rewald had
worked out a deal with the giant
insurance company to re ocate the
Polo Club to posh permanent facilities
near its present makeshift site The
new site would have been deeded over
to the club h% Northwestern at to cost.
giving it an asset worth c ose to $3
million, Rewald figured
While these negotiations were going
on. Rewald was also using the Polo
Club to cement his ties wrh fellow-
sportsman Enrique Zobel, I ast June,
the pair formed Avala Hawaii Corp.
for the purpose of engaging in
unspecified land developments. But
lcala Hawaii, whose ownership was
split 50-50 between Zobel anti Rewald,
Actually had some very ambitious
objectives
It's namesake, Manila-based Avala
C'orp.. i s Zohel's vehicle fora wide range of
international business ventures. One
of these was to he a big resort
development at Soto Grande, on
';pain's Costa del Sol. Zobel's friend
the Sultan of Brunei was supposed to
have put up $7 million to get the
project rolling and millions more were
to follow. Both the money invested in
Soto Grande and the profits from its
sales to wealthy Europeans-an
expected $20 million or more- were to
be channeled through Ayala Hawaii
Corp., where the proceeds would be
split between Zobel and Bishop,
Baldwin, And if that venture worked
.uccessfully, other profitable
partnerships were to follow.
At about this time, Rewald also
ormed two other joint ventures that
tad ulterior motives. These were called
lawaiian-Arabian Investment Co.
nd 11 S. and United Arab Emirates
nvestment Co., both registered in
iawati. rhese were ventures with
ndri Gautama, a wealthy Indonesian,
nd Saud Mohammed, a crown prince
It the United Arab Emirates. The
,impanies were to he invoked in
ivestments ranging from tea
antations to resorts, hut never got far
it the ground.
Hong Kong project. But potentially
e biggest project of all those that
ere nipped in the hud by Bishop,
tldwin's collapse focused on Hong
Kong, where the company had picked
up the pieces left by the earlier
explosion of the Nugan Hand Bank.
Hong Kong was one place where the
covert activities of Nugan Hand and
Bishop, Baldwin didn't just run
parallel, but converged. It was
primarily to penetrate this market with
its untold billions in the hands of
nervous investors that Bishop,
Baldwin was devised.
In the weeks just before it closed,
Bishop, Baldwin published a
handsomely bound volume entitled
"Capital Flight from Hong Kong and
How Hawaii Can Benefit." The 300-
page study had been nearly a vearin
the making and purportedly had
involved extensive on-the-scene
research by Bishop, Baldwin
consultants. Included were dozens of
interviews with those who control the
Cron Colony's fortunes, all
conducted under Bishop, Baldwin's
familiar-sounding banner and in the
name of legitimate research.
The basic premise of the study, as its
title implies, was that the smart money
is leaving Hong Kong by the planeload
in anticipation of its takeover by
China-an event that's technically still
13 years away, when Britain's lease on
most of the colony's real estate is due
to expire. The Bishop, Baldwin report
matter-of-factly accepted that this will
spell the end of Hong Kong as a center
of international investment and went
on to describe how Hawaii can cash in
on the resulting capital exodus. The
real purpose of the report, however,
was not to describe an event that was
happening, but to help cause It,
To its chagrin, the CIA has largely
been unable to penetrate China's
power structure and influence its
strategic decisions. In its drive for
industrialization, China badly needs
foreign exchange and a Hong Kong
under its direct control could give it a
major, established source of such
currency-providing, that is.. that the
huge trading center maintains its
prominence in world commerce. If
Hong Kong were to lose that position.
it could force China to make
concessions to the West it might not
otherwise make. Hong Kong is thus
seen by the CIA as a weak link in
China's otherwise impenetrable
armor. If the agency could trigger,
even at this earls, date, a panic among
the colony's already uneasy investors it
might deny the Asian superpower a
valuable pawn in the Third Kingdom
role it's trying to play between the U-S.
and the Soviet Union.
Tvpically, most of those consultants
involved in preparing the Bishop,
Baldwin study saw it as a legitimate
undertaking, accepting without
question the data and key contacts
provided them in Hong Kong by years
of CIA spadework. One of the
consultants, who like most insists in
anonymity, says that he thought that
the Hong Kong report was aimed
primarily at the Hawaii Legislature
('nntinued on page IN
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Approved For Release 2010/07/26: CIA-RDP9O-00494RO01100700025-2
 Approved For Release 2010/07/26: CIA-RDP90-00494RO01100700025-2
HAWAII INVESTOR
Liliuokalani Gardens:
Nothing but pleasant surprises
The new Waikiki condo pampers its buyers and their pocketbooks.
Liliuokalani Gardens, one of
Watkiki's newest highnse condo-
miniums, is designed to please its
owners. The twin-tower, 382-unit
project, the first major condo built
under the severe restraints of the
Waikiki Specta Design District codes.
does this with a host of amenities that
range from tree maid service for initial
occupants to an assortment of cost-
saving features geared to benelfit
owners for years to come.
The project its on a 2 '5-acre site
fronting on Ala Hai Blvd that is '0r'(
devoted to open space Befitting its
name. the grounds are lushly
landscaped A tiled drive sweeps in
from one side :hrough wrought-iron
gates A similarly ornate fence
encircles the entire property, enriching
its elegance and oasis-like atmosphere.
l rinrttuva from /tare I'
because of the c'anges in state laws it
recommended to make Hawaii more
a tractise to overseas investors.
Indeed. most of he report was devoted
to describing !laws in the state's
business climate and the improve-
ments that it 'aid are needed. But
underlying the irtticism was the
implication that it Hawaii didn't get its
act together it would miss its share of
Hong Kong's hernorhaging investment
dollars
Spark in a tinderbox. Although
Bishop. Baldwi,i's contribution can't
he proved, Hmg Kong definitely
experienced a major economic crisis in
L182-83 that toppled stock and real
estate prices and caused a flight of
investment capoal. While the outflow
But much of Liliuokalani Garden's
ambiance is less obvious. It has a very
practical side as well. Like washer-
dryer rooms tucked away on the
ground floors of its 24-story King and
Queen towers where tenants can perform
such menial chores while relaxing in
adjoining loungers A remote control
system tells them when their washing is
finished. Or. a closed-circuit TV
system connected to each unit that
allows occupants to check out the
availability of the projects' two tennis
courts without leaving their
apartments. ihev can also get a peak
at what's happening at the swimming
pool, which is designed in a nearly
forgotten rectangular configuration to
make it easier for health-minded
swimmers to negotiate their laps.
The project's mixture of studio, one-
seems to have slowed, in part because
of hasty assurances from Peking, the
colony's economy remains shaken and
jittery, a tinderbox that another spark
like the Bishop, Baldwin study could
ignite once again.
Even though the report appeared to
be tailored for Hawaii consumption,
its distribution reveals its true intent.
and two-bedroom apartments are two-
thirds sold. The studios went first as
have the larger units with the better
views of the Ala Wai and the
mountains beyond. But there are still
choice units left.
The studio units range in price from
$61,000 to $99,000, depending
primarily on location. Their size varies
slightly from 321 to 333 square feet.
There are a total of 138 studios in the
project.
One-bedroom, one-bath units run
from $125,000 to $260,00, depending
on both size and location. Their area
ranges from 538 to 1.081 square feet.
signaling a variety of configurations.
The two-bedroom, two-bath apart-
ments are priced from $260,000 to
$484.000, again depending on size and
location. Their liveable floorspace
wings Among the many ironies in the
case. Rewald has done his work in the
downtown Honolulu offices of his civil
attorney, Robert Smith. Next door to
Smith is the office of BBRD&W
administrator Tom Haves. When
runs from 907 to as much as 1.255
square feet for a few 2ft-bath
penthouse models. Washer-dryers are
included among the many built-ins in
these models, but not in the others.
The units are leasehold under a 55-
vear lease from the site owner. the
Liliuokalani Trust. Lease rent is fixed
for the first 10 years and each
succeeding 10 years up to 30, after
which rent is renegotiated. Intial lease
rent varies from $50 a month for studio
apartments to $140 monthly for two-
bedroom models. Monthly
maintenance fees run from an average
$85 for studios to $245 for the two-
bedroom units.
There is a good deal about
Liliuokalani Gardens, a project of
veteran Island developers Hasegawa
Komuten (USA), Inc.. that is tailored
to make life easier for owners and their
association. Future operating and
maintenance costs are projected
carefully, even though no association
has yet been formed. The developer
feels that costs will stay within its
projected budget. If they don't. the
developer picks up the overage.
Although zoning restrictions
prohibit transient rentals at the
project, the management as part of its
service will provide an office to handle
unit rentals of a year or more. Hl
complaint has been quietly dropped.
No trials' And there is speculation
that none of the charges against
Rewald will ever go to trial. On the
theft counts, the prospect of Rewald
facing in an open courtroom his
Of the 800 copies printed. less than half There is speculation that none of the charges
remained in Hawaii, including about
100 that are now in the hands of the
trustee. Most were distributed
overseas to the financial press,
investment houses and other opinion-
shapers.
Since his release from prison. Ron
Rewald has been busily preparing his
defense against the two token theft
charges on which he was jailed and
other complaints that may he in the
against Rewald will ever to to trial.
Haves and Rewald meet in in the hall.
they don't speak.
Platoons of FBI and other agents
have been using Haves' office on and
off since August to work on what may
be federal charges against Rewald,
even though an earlier securities fraud
We give you the business (and more)
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former close associate Jack Kindschi.
the major complainant, might produce
more embarrassment than the CIA
could tolerate.
In fact, everybody seems
embarrased by the Bishop. Baldwin
debacle except the even-tempered
Rewald. Hawaii's news media, after
spotlighting the Hong Kong report
when it first came out quickly
condemned it when the company fell
from grace. Big-league publications
like Time and Monet magazines
jumped on the bandwagon and
labelled Rewald a swindler, echoing
the line that the local media had picked
up from interim trustee Hayes and the
courts.
But now the anti-Rewaid chorus ha,
grown silent and it may be the
erstwhile financier's turn at hat.
Rewald is filing lawsuits against Time
and Nonev and against his nemesis
Tom Haves. He has even turned down
an oblique payoff overture from the
CIA that would have given him the
$10 million he asked for last August
That's not enough, Rewald figures. to
repay Bishop, Baldwin's investors and
make up for the other losses suffered.
He has retained famous trial lawyer
Melvin Belli to help him get clot more
in what could be a turnabout that will
make his old company's cash flow look
modest by comparison.
What emerges as the most intriguing
... NEWSRADIO 99
When You Need to Know
y
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 Approved For Release 2010/07/26: CIA-RDP90-00494RO01100700025-2
Rewald
Continued from page .8
aspect of Bishop. Baldwin's whole
tangled tale, however, is the
suddenness and completeness of the
company's collapse. It left both
investors and employees bewildered.
"What happened to Ron?" One
brand new consultant who reported
for work on August I, the first
workday following Ron Rewald's
attempted suicide, recalls the
Contusion oithat des "Evervbodvwas
guessing what had happened to Ron,"
he says "We had a meeting and
nobody even suggested that the
company was in danger. The next day,
there was almost nobody in the office
and one of the older consultants
suggested I go home and stay there.-
A lot focuses on what happened to
Ron Rewald .4 la Nugan Hand.
Bishop, Baldwin's covert activities
were, as much as possible, shunted to
other CIA proprietorles. the handful
of agents involved either followed
them or. like old pro Jack Kindschi,
simply retired
The other company activities have
either quietly folded up fir, as in the
case of the two Oahu ranches. reverted
to former owners. Enrique Lobel is
still interested in having the
Waimanalo ranch, but now he wants
to get It for $I million instead of $15
million The Hawaii Poly Club isn't
having much of a season his scar
BBR D& W's trustee has given up the
le:ue on the company's once-spacious
offices in Honolulu's Grosvenor
Center and sold off its furniture and
equipment A floor-io-ceiling
waterfall that once decorated Rewald's
private office has been donated to
charity Rewald's former waterfront
residence, which he bought for
5950,000 in 1980 and figured was
worth $2.4 million. is being put up for
sale at an undetermined price. So is his
fleet of sporiscars and his stable of
polo and show horses, though the
former have weathered their inactivity
since July far better than the latter
Worse-off, however, is Bishop,
'
Baldwin
s human debris The
rompam's 3(R)-plus investors have
been left empty-handed Their only
hope for recovering more than a
fraction of their lost millions is in
getting the CIA to own up to some
responsibility for their predicament.
The courts won't allow the investors to
loin in Rewald's suit against the
agency red Frigard, a retired
chiropractor who lost $3fbl,(9)0, is
leading a hand of them in a separate
.fiction, through Melsin Beln. So is
Robert links, who is the only former
BBRD&W consultant who openly
claims that he worked for Inc CIA
links, a California attorney,"irtually
moderated the first segment of a
triesision series being done by the
British Broadcasting Corp about
Bishop, Baldwin.
Out of work. Most of the company's
ex-employees are having a tough time
finding work. Those who have
relocated feel that they're lucky. they
don't talk about their previous
employer, partly because their new
employers don't want them to.
Ron Rewald is one of those still
looking for a job. He thought he had
one lined up through Honolulu
Teamsters boss Art Rutledge, but that
fell through. The other offers he's had
called for use of his selling skills, but he
says he's no salesman. He's not sure
anybody would buy from him,
anyway. Meantime, Rewald is living
with friends, driving a borrowed car
and mooching quarters to feed the
parking meter. A year ago, he was
making $20,000 a month and
expenses.
Rewald's fortune might change once
again, of course, if he forces the CIA to
relent. Rewald has steadfastly refused
to discuss his role with the CIA, as well
as the covert chores performed by his
company. But his recent lawsuit
against the agency and a welter of
records and comments of others that
have gradually surfaced say a great
deal for him. They paint Rewald as a
all guy in the Nugan Hand tradition.
The big question is, who meant him
to fall?
'hose fail guy? Was it the CIA' Did
.t fear that a routine state investigation
would blow Bishop, Baldwin's
elaborate cover and thus abandoned
the company and its leader in the
prescribed manner? Did the agency
feel that it couldn't stop or divert state
investigators where it could so easily
manipulate federal probes? Are
proprietary companies and their
agents and victims so expendable that
they are dumped no matter what the
cost at the first hint of trouble? Is the
CIA's skin that thick? Is it above the
law?
Mortgage Rates
Or was somebody else behind
Rewald's downfall and the CIA forced
to react to a situation suddenly sent
out of control by the flood of publicity
attending Rewald's apparent suicide
attempt and his company's spectacular
collapse? Rewald's meteoric rise and
aristocratic lifestyle invited plenty of
critics who were only too happy to
condemn him when the roof fell in.
He may also have had some
Continued in page"
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 Approved For Release 2010/07/26: CIA-RDP90-00494RO01100700025-2
Rewald
tomtinued From page 21
downright enemies. Rewald kept a
squad of bodyguards on his payroll
and one was never far from him or his
lamely When he was in jail, there was a
ratan who tried repeatedly to see
Rewald. posing first as a minister and
then as a prison guard He was
rcputedls an associate of Bo Grttr who
had gone in the aborted I aos mission
\cting on a tip that the man was more
than he pretended. state authorities
intercepted him before he could reach
Rewald and deported him to the
mainland
I here is a theory about Rewald's
d,,wntall that ciuld have been lifted
Prom a Robert I udlum thriller It goes
like this It was the Chinese who
fingered Rewa'd Thes wanted to
di,credit the Hang Kong studs and
t'gurcd that exposing the man behind
i is t crook wi old do the trick 'And
Rewald s,,i, in et,% mark lie had a lot
of critics who would believe the worst
of him. A push in the right place would
bring down his house of cards. The
CIA would do nothing to protect him
once his cover was threatened because
that's its policy with contract agents.
In fact, it would help discredit him by
jerking what was left of his cover.
Vanished records. On a wall in
Rewald's former office at Bishop,
Baldwin hung two diplomas from
Marquette t'niversits Both were takes
but up until last folk Rewald 'was
carried on the Milwaukee institution's
alumni roster After July. the school
told inquiring reporters that it had
never heard of a Ron Rewald.
Then there was Rewald's
professional football career. Though
that was part of an earlier cover and
seldom mentioned in Hawaii, Rewald
claimed that he had once placed for the
Cleveland Browns. the Kansas City
Chiefs and the Baltimore Colts. Media
inquiries last summer produced no
confirmation, though Rewald has
Employers:
copies of contracts signed with all
three clubs during the mid-1960s.
Other probes into Rewald's past
yielded similarly damaging
revelations. A purported high school
chum and football coach, interviewed
records of Bishop, Baldwin's
involvement in over 50 companies and
partnerships have either been lost or
discounted completely, lust as have the
records of its two dozen or more
foreign bank accounts.
If the suicide attempt was a perilous fake, was it
the CIA's idea or Rewald's?
by a TV reporter in Milwaukee.
portrayed Rewald as a mediocre
achiever who fantasized a good deal.
Rewald denies knowing either the
coach or the "friend."
The most damaging of all the
revelations, of course. were the
trustee's statements that Bishop.
Baldwin had never made a legitimate
investment and that Rewald had
squandered millions of its funds
without a thing to show for them. The
As it claims, the trustee's accounting
is probably accurate as tar as it goes It
will likely never he known what
Bishop, Baldwin's records would have
looked like prior to August 4 Possibly
little different, since large quantities of
cash moved in and out of its global
operating accounts in mysterious
ways. And there was no separate
ledger kept for what was legitimate
and what wasn't. the CI \ doesn't
observe normal accounting practices
in keeping track of its investments and
their returns
Key weekend.: mvsterc that's even
more intriguing because it seems more
solvable is what happened to Ron
Rewald on the end-ot-July weekend
that his hall of mirrors shattered Was
his supposed suicide attempt part of
whatever it was that brought him
down. or the cover-up that resulted"
Rewald won't say In :act. he says
even less now about the event, of that
Fndas and Saturday than he did. it the
time.
\ hotel employee on a routine room
check lound Rewald Nine on the
bathroom floor of Room I632 of the
Sheraton Waikiki Hotel at 4 p_m on
Saturday. July 10 There was blood
spattered on the floor and fixtures of
the bathroom. The shocked employee,
believing Rewald might he dead.
mmediately left the room and
,ummuned hotel security. when
security officers arrived they found
Rewald not only alive but conscious,
his arms held above his head. thev
covered him with a blanket and called
for an ambulance and the police- From
a driver's license and two credit cards
found in the room. a securitn officer
identified Rewald. While waiting for
the police and ambulance, the security
men talked to him. Rewald told them
that he wished he was dead. he said
that a television report the night before
about the state nvestigation of his
company had ruined him
'X hen the police arrived. they too
questioned Rewald. rAtter some
prodding, he said that he'd tried to kill
himself. The investigating officer
noted in his report that aside from the
blood in the bathroom and a large
stain and two blood-soaked towels on
the bed. the hotel room appeared to he
in order There was no sign of a
struggle. Rewald's business clothes
were draped neatly over two chairs. his
shoes placed side-bv-side under one of
them. Next to the license and credit
cards stacked carefully on an adjoining
table were live S20 hills, Rewald's
wristwatch, wedding band and an
envelope addressed to his wife.
The envelope contained two notes
written on hotel stationery in a barely
legible scrawl. The notes asked for
forgiveness. One said that "I started
out working for our country" and
Continued on page 23
If you don't have a certified first-aid practitioner
on the job ...
YOU'RE
BREA]UNG
THE LAW1.
Even if you have less than 15 employees in any department
or location, one of them must have a current
(less than three years old) first-aid certificate. If there are
more than 15 employees, two of them must be certified.
This is the State law, spelled out in paragraph 203.2 of,
Hawaii's Occupational Safety and Health law.
If you do not currently comply with the law,
mail the form below immediately!
American Red Cross
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io request Additional inrixmaunn rrg.rdmg wnencan Red Cross Health and Safety Courses. I
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forgiveness. One said that "I started
out working for our country" and
concluded "it never dawned on me that
1 would be left alone and unprotected."
The only other item found in the
hotel room that didn't belong there
was a cartridge of Gillette Platinum
Plus razor blades lying next to the
bathroom sink. One of the blades was
partially protruding from the cartridge
and was stained with blood.
Doctor's theory. At Queen's
Hospital in Honolulu, Rewald also
told staff doctors that he had tried to
kill himself. He was put in intensive
care and given eight units of packed
red blood cells to replace the estimated
four pints of blood he had lost. There
were lacerations on each of Rewald's
wrists and a long gash on the inside of
his left forearm. A doctor estimated
that the wounds on the left wrist had
occurred several hours before the
others. He theorized that Rewald had
inflicted the first wounds, wrapped his
arm in towels, lay down on the bed and
lost consciousness. He then later
awakened and made the other slashes.
The doctor said that before cutting
himself the first time Rewald had
taken about a dozen Tylenol and
codeine tablets, commonly prescribed
for pain relief but not in such quantity.
Although Rewald was kept under
close surveillance in the hospital-
common practice in suicide
attempts-the staff psychiatrists who
attended him reported that from the
beginning Rewald denied any further
suicidal intent. In fact, the patient's
spirits as well as health appeared to
improve rapidly. Though he knew it
would mean his immediate arrest,
Rewald chose to be released from the
hospital rather than being admitted to
its psychiatric ward, an alternative that
was offered him.
On August 4, the same day that a
federal court declared Bishop,
Baldwin bankrupt, the Honolulu
police closed their file on the event at
the Sheraton Hotel and declared
Rewald an attempted suicide.
The only evidence besides that
found in the hotel room that was
described in their report was the
registration card for the room. The
name shown on the card was Ron Imp,
of a Milwaukee address. The room had
been paid for in advance for one night
at the time of check-in on July 29. And
the payment had been in ash, which
required no identification. A police
handwriting expert was asked to
compare the writing on the
registration card with that on the two
notes found in Rewald's room, but he
said that the writing on the card was
insufficient for a comparison. It was
assumed that the "Ron Imp" who
registered was really Ron Rewald
using his wife's maiden name and the
some address of her parents.
Big questions. What happened in
he Waikiki hotel room in the as much
o 24 hours that Rewald occupied it
colds the riddle of his "attempted
m6hiiiiii..-
suicide"and perhaps much more.
Did Rewald act alone? The evidence
indicates that he did. If he had been the
intended victim of a professional
killer, even one wishing to make his
work appear like a suicide, the assassin
or assassins would surely have been
more thorough. And there was no sign
of a struggle in the room.
Did Rewald intend to kill himself?
For weeks after his discovery he claim-
ed that he did. He said that he was
"crushed" by the seeming personal
attack of the television report
revealing the state investigation of his
company. But such a drastic reaction
to what Rewald also described as a
routine probe seems out of character
for a man who has since then
demonstrated superb self-control.
Unless he was reacting to much more.
Between September 1982, when
Rewald claims he went into semi-
retirement at Bishop, Baldwin, and
last July, there were occasions when
Rewald expressed doubts about his
support from the CIA. He worried
about the agency's slowness to block
the IRS's investigation of his personal
taxes. And he complained that too
many covert assignments were being
given to his company, increasing the
risk of exposure. One of Rewald's
"suicide" notes spoke of being "left
alone and unprotected."
Late in 1982. Rewald began to
secretly record conversations between
himself and those whom he felt would
help prove his CIA invovlvement. He
also started collecting a private file of
similarly significant correspondence.
This material now forms a key part of
his defense. Some say that the
material, though authentic enough,
resulted from circumstances that were
staged by Rewald to prove his point
and is therefore misleading.
Their implication is that Rewald
played a far less significant part in the
CIA's use of Bishop, Baldwin than he
now maintains. In short, they argue
that Rewald used the CIA more than it
used him and his company. A
mainstay of the lawsgits by Rewald
and his investors against the CIA is
that the agency at least knew of
Bishop, Baldwin's purloined
investment accounts and is therefore
responsible for them. Some of these
investors are saying that they knew
about hte agency, so it must have
known about them and what was
happening to their money. On proof of
that may hang the investors' case.
Master manipulator. One of Bishop,
Baldwin's unsuspecting consultants,
who now says that he doesn't know
what to make of Rewald, describes his
ex-boss as the most disarming person
he ever met. "Ron was a master of
manipulation," he says. "He had an
uncanny sense of people's feeling, of
saying the right thing at the right
time."
Was Bishop, Baldwin a CIA front
that got out of control? Was it the
agency, and not some more sinister
force, that brought it down? And what
of Rewald's "attempted suicuide'R
Was that the agency's idea, or his? Was
it real, or was it a perilously convincing
ruse? Was Rewald's life-saving
discovery accidental or planned?
Since that late July afternoon,
Rewald has complained bitterly about
the plight of his family, most of whom
now live in Milwaukee. He says that
their abandonment by the CIA is a
major reason for his lawsuit against
the agency. He says that he counted on
the agency to take care of his family
should anything happen to him. He
had $3 million in life insurance, but
that has lapsed and it's doubtful that it
would have gone to his family anyway
had he died on July 30 because of
Bishop, Baldwin's ensuing
bankruptcy.
Rewald also professes deep concern
about the welfare of Bishop, Baldwin's
former- investors and employees.
blames the CIA for letting them down
too. Who did the letting down is, of
course, what the whole sordid tale or
Bishop, Baldwin is about.
did avoid being bruised in Bishop,
Baldwin's fall was a man from Seattle
who had just been hired because of
some very special qualifications. 0
"intelligence officer" who amon
many former jobs had once been th
had been awarded him by the Directo
of the Central Intelligence in May 198
Real Estate Briefs
Continued from page 19
Kukaiau Ranch
sold
Two Montana ranching families
have purchased the 12.800-acre
Kukaiau Ranch on the Big Island from
Theo H. Davies & Co. for an
undisclosed price. The buyers are Mr.
and Mrs. Wilbur J. Hensler of Helena
and Mr. and Mrs. Calvin T. Christian.
of Poison. Montana.
TheoDavies had owned the
Hamakua Coast ranch for 70 years.
during which time it once covered
35,000 acres and was one of the world's
largest ranches specializing in raising
Hereford cattle. with up to 11,000
head.
The new owners said they intend to
continue the operation of Kukaiau as a
working cattle ranch. Included in their
purchase was the ranch's current herd
of 4.000 Herefords, to which the
owners have already added 35
Charolais bulls and 20 cows to being
expansion of the herd. HI
Maui Business Park
? 43 Leasehold Lots 10,000 sq. ft. - 64,000 sq. ft.
? Retail, Office, Commercial, & Light Industrial
? Central Kahului location on busy Wakes Avenue
? Now available
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