LETTER TO DDCI FROM GEORGE V. LAUDER

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP90-00965R000503930001-4
• Release Decision: RIPPUB
• Original Classification: K
• Document Page Count: 22
• Document Creation Date: December 22, 2016
• Document Release Date: January 12, 2012
• Sequence Number: 1
• Publication Date: October 30, 1985
• Content Type: LETTER

STAT
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ARTICLE
ON PAGE
2 Ex-CIA Agents
Sought by FBI
As Possible Spies
By Patrick E. Tyler
Wa.rMOa. Fw fit 1 w,t~
The FBI said last night it has is-
sued an arrest warr k ora formes
CIA officer, apparently identified at
a Soviet spy by 1fitaly Yurchenko, a
high-ranking Soviet intelligence of-
ficer who defected two moothe no..
Informed sources said the FBI has
identified a second CIA officer, ap-
parently named by Yurchenko, but
has not yet taken action against
him.
Yurchenko is being debriefed un-
der tight security near Washington,
a congressional source said yester-
day.
The suspect being actively
sought by the FBI is Edward Lee
Howard, 33, who fled his home 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 naltignd
defense information to a foreign
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 congressional so mm also sug-
gested that a separate isterastiaaal
search may be under way for sev-
eral other formes CIA' operatives
possibly identified as Soviet agents
by Yurehenko, a former Soviet KGB
officer.
WASHINGTON POST
3 October 1985
The FBI was closely guarding in-
formatiots aboal, the investigation
yesterday The agsic even asked
the Senate Select Committee on In-
telligence not to issue a statement
about the investigatioat after intel-
ligence officials briefed senators,
another official said.
Committee Vice Chairmen Pat-
rick J. Leahy (D-Vt.) was described
by one source as very disbrbed
that information had leaked about
the CIA debriefing of Yurchenko
before law en>fercement officials had;
time to investigate Yurchenko's dis-
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-
ard[."
The profile emerging of Howard
yesterday was that of an Air Force
officer's soar. a private economic an-
alyst wonting for New Mexico's
state Legislature and a former
Peace Corps volunteer.
Howard, who had worked for the
Agency for International Develop-
ment in Lima. Peru. from 1976 to
1979, tu,d down a posting to
Moecow grid returned to his native
New Mexico 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 car during the altercation.
The FBI said he is also wanted for
unlawful flight while on probation.
Phil Baca, Howard's superior on
the New Mexico Legislature's Fi-
EDWARD LEN HOWARD
... sabjeet of FBI hivestigatloa
nance Committee, described him as
"a hard worker [who) 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 searsh 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.
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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 cross-check information
provided by the defectors before it
is deemed reliable.
Staff writers T.R. Reid, Mary
Thornton and Loretta Tofani
contributed to this report
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A;iTiCLE AP EARS
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 foreign government. 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
known as evidence emerged yester-
day that Mr. Howard flew to Texas
more than a week ago. leaving even
his wife in the dark abort 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:
^ 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 Mexico state govern-
ment said he traveled widely on
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-
ratory. where top-secret weapons re-
search is done.
O In a Minneapolis suburb. Evar
Cedarfeaf, 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.
0 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
job. 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 official. who declined to be
1identified. said Mr. Howard was
probably one of two ex-CIA men im-
plicated as Soviet agents by Vitaly
Yurc henko? a recent, top-level defec-
tor from the KGB. the Soviet secret
police and intelligence agency.
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AfmcLE
ON PAGE
BOSTON GLOBE
3 October 1985
FBI says ex-CIA man is sought,
Associated Press
WASHINGTON - The Federal-
Bureau of Investigation has
car a ormer Central n
A
gene
gency o cer w o won
n Moscow loot ng~T g to spy
for
a foreign government and
as
Beet
tied fromh6Tiome
more than a w&E ago, a spo
man said i~ Ed Gooder am an FBI spokes-
man. said Edward Lee Howard.
33. of Santa Fe. was charged In 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 oflcW has said How-
ard was one ex-
CIA offkftb Implicated as
The FEW
worked
for the CIA From an
until June According to
State er records. his last
post was the US Embassy in Mai
cow, where he operated under the
cover 4 being a budget the State Department. analyst for
He was also named last Friday
in a federal warrant for unlawful
flight to avoid prosecution for pro-
bation violation in New Mexim
the FBI said.
non no pass potentially
n orma
or
ITUM EM
Yurchenl[o.
YFe-M Is believed to have
ve few US a ents in the Soviet
Union. and former CIA direcWs
have said the agency
Ali-
t icult recruitin Soviet citizens
as agents. us. an one Invo
"NU
in American spy opera tions In
as spy
Meanwhile, it was ]earned 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 infonna-
tion to a foreign government.
The search, which occurred be-
tween last Friday 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 these 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 fled 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 in a
Santa Fe suburb.
The warrant said federal au-
thorities were searching for coded
pads. greeting cards with micro.
dots. microfiche, recording and
transmittal equipment. docu-
ments.that identify foreign espio-
nage agents, payments made to
agents. telephone contacts with
agents and travel records.
Upon leaving the federal ? gov-
ernment. Howard became an eco-
nomic analyst in July 1993 for the
Legisktive Finance Committee of
the New Mexico legislature. He
was engaged in revenue prtise-
tions 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.
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ARTICLE
ON PAM
WASHINGTON POST
4 October 1985
ExCIA Agent Suspected of Spying
Seemed Unexceptional Associates
to -Young New Mexico Economist Lived Quietly, Conventionally
By T.R. Reid
w. " rr. nrr MOW
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-
tpected $32,000-a-year economic
analyst with the state government
w,ho commuted in a bright red Jeep
to his brown adobe house in a mid-
-dle-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,
then slipped quietly away and van-
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.
Yurchenko, a former ranking
member of the KGB who defected
two months ago, is being debriefed
by the Central Intelligence Agency
at an undisclosed location near
Washington.
Holliday said he could not identify
what Howard may have taken when
he left the agency. But a warrant
used here to search Howard's home
and car indicated that federal offi-
cials were seeking coding materials,
transmitting and recording equip-
ment, and business cards carrying
microdots.
A second former CIA employe is
reportedly under surveillance as a .j
possible Soviet agent, apparently
also based on infbrmation from Yur-
chenko, a federal official said today
in Washington.
Two days after -Howard slipped
away, a passenger listed as "Ed-
ward Howard" took an American
Airlines flight from Albuquerque to
Dallas. The next morning, Sept. 23,
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."
Baca said he immediately called
Howard's home and reached Mary
Howard. He said she expressed as-
tonishment that her husband had
quit his job and seemed to have no
idea of his whereabouts.
Federal officials here declined to
discuss how long they had been
watching Howard and why he was
able to leave Santa Fe before an
arrest warrant was issued.
Coworkers and neighbors said
FBI agents were in Santa Fe asking
questions about Howard in the days
before he fled. They said he must
have known this by the day he left
work early and disappeared.
Federal law enforcement officials
say Howard fled Sept., 21. He was
able to escape, a federal official in
Washington said, because the FBI
maintained a limited surveillance
until an arrest warrant was issued.
Federal agents have staked out
Howard's home and begun -trailing
his wife on her daily commute from
home to the orthodontist's office
where she works.
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.
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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 be 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.
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AP'
ON PAGE
WASHINGTON TIMES
4 October 1985
Fired CIA pair took revenge
by spying for KGB, FBI told
By Bill Gertz
THE NNSHMgTON TAMES
Two 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 FBI is continuing 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
conspiracy 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 sources 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.
L/
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ART L HP',EAR
ON PAGE
BALTIMORE SUN
4 October 1985
Missing spy suspect fled
while under FBI's watch
WASHINGTON (Reuter) - A for-
mer CIA employee accused of spying
for the Soviet Union was under sur-
velllance by the FBI when he disap-
peared. Reagan administration offl-
"The FBI screwed up by letting
this guy slip." one administration of-
ficial said.
The FBI reftaed to comment on
whether another a-CIA omcer had
been ldentMed by Its ooimterintdit-
gemoe atbw being rimed as a
r spy by Yrsdhenko. a high.
r Sae m offldsl who detected
to the 1~1et
al assess haw said they cimet oth-
er alleged double agents to be re-
vealed soon in what could produce a
major shake-up in the U.S. Intelli-
Te former CIA employee who
ha
fled was Edward Lee Howard. 33.
who worked for the agency from
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 On Sept. 20, Mr. Howard unex-
pectedly quit his job and fled just
before FBI agents were about to
question him concerning his allepd
espionage activRim officials said.
The FBI had interviewed his
neighbors and associates in Santa
Fe, N.M.. where he worked as an
economic analyst for the state leos-
lature, in an attempt to build a
strong MK O case. they said.
Alth they said Mr. Howard
may have bees alerted by news re-
ports, his arrest warrant was issued
Sept. 23. two days before the f rst
disclosure that Mr. Yurche nko was
naming double agents believed to
have penetrated the U.S. Intelligence
community.
V/
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? ARTICLE AP? R
ON PAGE
BALTIMORE SUN
4 October 1985
Defector revives fear
of `mole' at CIA
WASHINGTON (Reuter) - Dis-
closures by a key Soviet defector
have reopened a question that has
periodically tied U.S. In in
knots: is there a high- Soviet
moe in the central Intel igence
U.S. ntelligence sources may that
the defector. Vitaly Yurchenko. a
high official in the KGB. came over
to the West in Rome last summer.
bringing highly sensitive informs
tion that Included names of U.S.
double sir
The disclosure of thane names Is
likely to produce a shake-up in the
American Intelligence community.
the sources said, but declined to 9"
details
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 former CIA
employees - Inch udlrrg former sent
' Edward Ham" who M!t the agency
18 months age and is now the sub-
Jed of a pollee msnlnaut.
Some conWessionai sources who
have been involved in overseeing
U.S. Inteliigence, including Sen. Mal-
fey say that Mr. Angleton s
mole hunt periodically caused parts
of the CIA virtually to Wind to a halt.
pr;pWpting criticism among some
CIA veterans of what they regarded
as an overly zealous campaign.
Former CIA official 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 orp nizatlon would seize up."
Mr. Wallop said that the fear of
resurrecting the Angleton era has so
eroded U.S. spy-catching abilities
that the United States has virtually
zero counterintelligence capabwty'
and is thus highly vulnerable to KGB
penebatkwL
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 inteW-
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.
color Wallop. R-Wyo.. believe that Ex-CIA Director Stansfield Turn-
KGB moles are active in the CIA to- er said in a book released this year
day. that Mr. Angleton's approach bor-
r. Wallop said he hoped that the dered on paranoia.
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 some thing with
us." Mr. Wallop. who left the Senate
Intelligence Committee 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
Golitsyn told U.S. officials that there
was at least one high-level mole in
ft CiA.
CtA counterintelligence chief
James Angleton searched for the
traitor or tractors for more than 12
yea until he was fired in 1974 for
excessive zeal. former intelligence
ofidals say.
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-
cient 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 Ile-detector tests that are given to
CIA job applicants.
If such agents posing as loyal
Americans had managed to pene-
trate the Ile-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 course.... if they
had a real mole, he would stay for
his whole career then retire and
grow grapes in California."
ASSOQAT? PW-Mts>'S
JAMES ANGLLETON
Ex CIA counterintelligence chid
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ARTICLE APPEAR NEW YORK TIMES
4 October 1985
ON PAGE
Suspect Is Believed to Have Told Soviet of U.S.
Spying in Moscow
By STEPHEN ENGELIERG
3psaal to The N!. Y.Rt flmml
WASHINGTON, Oct. 3 - Edward L.
Howard, a former Central Intelligence
Agency officer, is believed to have
given the Soviet Union significant w
cret information about the methods the
United States uses to gather intelli-
' genes in Moscow, Congressional
sources said tonight.
The sources said Mr. Howard, who is
being sought, had been trained in the
secret techniques as he was prepared
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
1981 to June 1983, One official said to
day that he left the agency after failing
to pass a routine polygraph. or lie-de.
tector, test and had not served in Mos-
cow.
The official would not characterize
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 as.
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 on Intelligence, as say-
lug that the security breach caused by
Mr. Howard could be as "serious as
anything this country has seen in the
past." Mr. Durenberger said that the
suspect might have provided details of
how he United States got sensitive in-
formadiun from the Soviet Union.
The intelligence committee has been
briefed on the potential damage said to
have been caused by Mr. Howard. Offi-
cials say he is one of two American in-
telligence officers identified as
recruits by a Soviet defector,
Yurchenko, a senior member of the
K.G.B., the Soviet intelligence ag racy.
Government officials said tog* that
the second the course of suspect theee
defec-
tor's statements.
The C.I.A. refused to say whether it
had ever employed the individual in
question.
Officials have said Mr. Howard fled
the country sometime an the weNund
of Sept. 21, shortly after his Mends and
co-workers had been questioned by the
Federal Bureau of Investigation.
Mr. Yurchenko is being questioned at
an undisclosed location in the United
States.
only Amerkm Under Serotlay
One official said Mr. Howard and the
second former intelligence employee
were the only Americans under investi-
gation as a result of information pro-
vided by Mr. Yurchenko, who defected
to the West in July while he was in
Italy.
Officials said Mr. Howard worbd in
the clandestine service of the C.I.A. Be
was charged on Sept. 23 with cos spar-
ing to ptwide national defame infor-
rruation to a foreign power.
Officials have said Mr. Howard
eluded the Federal authorities and tied
his home in Santa Fe, N.M. He had
been employed by the New Mexico
Legislature since 1983 as an economic
analyst.
An Intelligence source said Mr. How-
ard, "a disgruntled employee," ap-
proached the Russians with an offer to
provide secret information. Various of-
ficial, offered conflicting accounts on
whether Mr. Howard began working
with Soviet intelligence agents before
or after be left the C.I.A.
Denial by State Department
A Reagan Administration official
said Mr. Howard left the agency after
be was to a post in Moscow.
The State epartment, denying pub-
lished reports, said today that Mr.
Howard had never served in the Amer-
ican Embassy in Moscow. The Agency
for International Development, which,
administers foreign aid abroad, hired
him as an intern in Washington in Sep-
tember 1978. He was later assigned to
Peru as an assistant project develop.
went officer and resigned from the
agency in March 1979.
In mid-August, the Italian press pub-
lished brief articles reporting that Mr.
Yurcbenko had disappeared and that)
Inquiries were
the;
SSoviet wmade as not by until
Aug. 30 that the Milan newspaper Cor
riere Della Sara reported that he was a
deflector.
One former C.I.A. officer said it
would be unusual to asetga an inexpert-I
enced officer like Mr. Howard to Mos-
cow, one of the agency's most demand-
ing posts. But he added that that. Mr.
Howard's supposed role as a member
of the State Department might have
been more convincing to the Russians
because he had not served in jobs usu.
ally associated with the Central Intelli-
gence Agency. A Congressional source
said Mr. Howard he held an "opera-
tional" job in the intelligence agency.
The former C.I.A. officer said this
would mean that Mr. Howard had been
responsible for coordinating informa-
tion-gathering clandestinely. He would,
thus have access, the former officer
went on, to a limited number of names
of agents as well as the location of other
sources of information such as elec-
tronic operational would not~
an know
about the networks of agents run by
others in similar posts.
National Security Role Hinted
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 most secret
codes and communications.
One intelligence source said the set-
and suspect had access to details about
secret United States electronic and
satellite surveillance of communica-
tions. "Let's just say in was part of the
intelligence community," that source
said.
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WASHINGTON TIMES
7 October 1985
KGB paid former CIA agent,
FBI says
THE 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 U.S. intelligence officer sus-
pected of spying for the Soviets.
In Albuquerque, N.M., the FBI
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 U.S. 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. S 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 informa-
tion. The 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 friends
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.
Two other U.S. officials said the
second suspect had been fired from
a U.S. 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.
/ /
t/
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J
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
Edward L. Howard was fired in
1983 by the CIA, and anger over his
discharge may have prompted him
to provide information to the Sovi-
ets, U.S. officials said Thursday.
Those officials refused to give
any reasons for the firing of How-
ard, who is now the object of an
intense FBI manhunt, and one
source said the records indicated
that he was "allowed to resign."
'Motive of Reveago'
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 Mexico Leg-
islative Finance Committee, where
he went to work after leaving the
CIA, said Howard had told him that
he left the department after being
assigned as a Foreign Service offi-
cer to the embassy in Moscow.
But department spokesman
Charles E. Redman said that How-
ard had never worked for the
department or in the U.S. Embassy
in Moscow in any capacity. He said
Howard had been employed by the
Agency for International Develop-
ment from September, 1976, 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 intelligence source said that
the SovitB defector 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.
Howse Hearing oa Spies
The defector, Vitaly 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 plans 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.
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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 him when agents interviewed him directly on 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 the Soviet Union
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. Conlimu"
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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 Department, spokesman Charles Redman said 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 on 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 on 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.
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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. 20.
Howard, 33, met in Austria a year ago with Soviet KG8 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.
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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.
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ARTICLE AP`?EA D
ONPAOE-
Soviet
defector
led KGB
in U.S.
By Bill Gertz
THE' .5HINGTON rims
Senior Soviet KGB defector
Vitaly Yurchenko has been identi-
fied as Moscow's top North
American spy operations expert,
according to the U.S. State Depart-
ment.
After weeks of official silence, the
State Department saidthat Mr. ' tir-
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
I Inited 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 statement provided no dates
for Mr. rc a 's duties before or
after his 1980 posting in /ashiingtpn-
But he is a ieved to have directed
_^_LD COILS! nnr ~IIO~fl w nM`~a~3
after leaving Soviet embassy in
Waste and prior to Fit romo-
tie or North eri
ca&
d m, a post e e until Aua._
1.
The State Department identified
Mr. Yurchenko'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.
Yurr en to s de brie ing said the
KUB officer has been providing S.
authorities with a windfall of intelli-
[cence data about KGB operations
an operational methods since
August. His debriefing by Justice
Department and CIA officials began
en at n un sclos~e location in the
United States and is exDect
tinue or several ears these
sources
So f y-
ere two Americans - both former
suspected or spying for the Soviet
Union after leavin the agency. One
of the former CIA ratives,
Mward Lee Howard, Teuded I
s ce agents late last month
in ew Mexico. He is in sou t
on espionage c taraes and is eved
tQ nave ned the country,
I/
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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.
Earlier, government sources had 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.
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 STAT
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RADIO TV REPORTS, INC.
4701 WILLARD AVENUE, CHEVY CHASE, MARYLAND 20815 [phone]
NBC Nightly News STA11ON WRC TV
NBC Network
DATE October 28, 1985 7:00 PM CITY Washington, DC
Fate of Soviet Spy
TOM BROKAW: While that was going on in a Baltimore
courtroom today, there was a fascinating development in the case
of Nicholas Shadrin, a Soviet naval officer who defected to this
country in the late '50's. He disappeared while on a mission for
the CIA ten years ago, and tonight NBC's Lloyd Dobyns is able to
report the defection of a Russian spy turned up some brutal news
about what happened to Shadrin.
LLOYD DOBYNS: Nicholas Shadrin, a Soviet defector who
worked for the FBI and the CIA, disappeared from in front of the
Votive Church in Vienna, Austria on December 20th, 1975. It has
taken ten years to find out what happened to him.
Shadrin and his wife defected in 1959. In the Soviet
Union, Shadrin was tried in absentia as a traitor and sentenced
to death.
Despite that, American intelligence agencies eventually
sent Shadrin to Vienna, a city filled with everybody's spies.
Shadrin thought his job was to pretend to be a double agent. In
fact, the FBI and CIA used him as bait in a scheme to attract a
highly placed Soviet intelligence agent. Shadrin disappeared.
Mrs. Shadrin blamed Washington.
EWA SHADRIN: I'm convinced that he was sacrificed by the
United States. For whatever reason they had in mind, either
political or international, they just simply sacrificed Nick.
GENERAL WILSON: I think he indirectly was betrayed. As
I was briefed, there was no countersurveillance of his meeting.
He was alone. He was unprotected. And the Soviets simply
fulfilled one of their basic laws, which, in shorthand, reads
"death to traitors."
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DOBYNS: General Wilson was right. Intelligence sourcet.s
now say that Vasily Urchenko, the most recent Soviet defector,
has said that the KGB kidnaped Shadrin and, on that same day,
killed him. That Soviet agent the FBI thought it was protecting
was part of an elaborate KGB scheme to get Shadrin and carry out
the Soviet death sentence.
The CIA, the Department of State and the Department of
Justice all say no comment. Mrs. Shadrin declined to comment.
But NBC News has learned that after ten years of waiting, Ewa
Shadrin has been told that her husband, the spy who was sent out
into the cold, is dead.
Lloyd Dobyns, NBC News.
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