'COUNTERSPY' COUNTERATTACKS

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP90-00845R000201230007-3
• Release Decision: RIPPUB
• Original Classification: K
• Document Page Count: 1
• Document Creation Date: December 22, 2016
• Document Release Date: July 28, 2010
• Sequence Number: 7
• Publication Date: October 17, 1981
• Content Type: OPEN SOURCE

Sanitized Copy Approved for Release 2010/07/28: CIA-RDP90-00845R000201230007-3
rRED
0:`I _ AGE
HU_ T r ENT'S
17 OCTOBER 1981
Red Faces at the `Journal'?
'CounterSpy'
Counterattacks
In a startling admission, the anti-CIA publica-
tion, Counterspy, has said that it was behind at
least 15 stories on intelligence matters and interna-
tional econommtc issues that appeared in the influen-
tial Wall Street Journal over the last year.
The admission came in the wake of the expose by
HUMAN EVENTS of'CIA defector Philip Agee's
role in a Journal story by Jonathan Kwitny attack-
. ing the State Department's White Paper on El
Salvador, and the revelation by the Journal's ex-
ecutive editor, Frederick Taylor, that I rritny and a
deceased colleague, Jerry Landauer, had used
John Kelly of CounterSpy as a confidential source,
too.
Despite the admission that Kelly had been a
"longstanding source" of Landauer's on
"intelligence matters," we could only identify one
story in the Journal which apparently derived from
this relationship. HUMAN EvENTS reporter Cliff
Kincaid noted (Sept: 5, 1981) that a Dec. 3, 1980,
Landauer story on a secret N\orJd Bank memo on
the Philippines had been published on the same
day that CounterSpy and a Filipino dissident group
released the memo at a news conference 'in
.Washington. When asked about this at the time,
Landauer threatened to sue if he was linked to
CounterSpy. John Kelly, in an interview with
HUMAN EVENTS, refused to say if he gave Lan-.
dauer the memo.
CounterSpy, however,.has now confirmed that
it was the source not. only of the story about the
Philippines,-but of stories. about South Korea, In
donesia and the CIA. -The confirmation came at
an October 2 Washington news conference, which
had been called to release more "secret" docu-
ments on Communist China and the Philippines.
The news conference featured Counter-
Spy's Jobn Kelly And Walden Bello, a mem-
ber of a dissident Filipino group called the
Congress Task Force.
Bello, who said he was not a "member" of
CounterSpy but was "very sympathetic to the sort .
of exposes that it has been carrying out," said, "I
would like to begin this press conference with a
protest. The Wall Street Journal [published] on
this Tuesday [September 291 a lead, long editorial
attacking CounterSpy, making it responsible, it
says, for th
Kirkland wa!
the conferen,
ty ]" -
_, "Now thei
protect thi
"Unfortunat
tacked one of its major sources of information.
The Wall Street Journal has been dependent on
CounterSpy : and. the Congress Task Force for
about 15 to 16 stories over the last year, which
detail World Bank-IMF [International Monetary
Fund] apprehension over a lot of Third World
economies. CounterSpy_ and the Congress Task
Force have released to the press the documents on
the Philippines, South Korea and Indonesia. And {
CounterSpy has made a number of independent
releases on the Central Intelligence Agency."
"Why does the Wall Street Journal come out-:
with this attack ~n one of its sources of informa-
tion?" Bello asked. "The reason for this," he said,
"is that it has been under heavy attack from the
right, from HUMAN EVENTS, and this was one way
by which the Journal was trying to distance itself
from one of its sources. Unfortunately, it's too
transparent."
Bello added: "We believe the. World Bank
represents interests very deterimental to the
development of Third World countries. This is not,
of course, as HUMAN EVENTS might put it, a far
left view." He said this is "in fact a view that is
now shared by many people within the World Bank .
itself-dissident technocrats," who, he said, have
been providing the secret documents. -
Asked what countries followed his prescription
for-economic development, Bello cited Chile under
the Marxist Salvador Allende. Referring to the
overthrow of Allende by a popular coup,. Bello
said, "What happened in Chile was an effort on
the part of the World Bank, the big banks, and the
United States to sabotage this process that was go-.
ing on." ~::...
Asked to name other countries that followed his
recommendations, Bello said, "Maybe we ought to .
have other questions. I think you would like me to
name the Soviet Union or Cuba. But I certainly
think there are other countries aside - from the
Soviet Union or Cuba or other countries that are
tagged 'Red' that are trying to follow independent
economic paths." He then - named two pro-
Marxist, one-party states:in Africa, Mozambique
and Guinea-Bissau. -
Sanitized Copy Approved for Release 2010/07/28: CIA-RDP90-00845R000201230007-3