THE ISRAELI ACCOUNT

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CIA-RDP91-00587R000100120001-9
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RIPPUB
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K
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6
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December 22, 2016
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February 24, 2011
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1
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Publication Date: 
December 14, 1986
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Sanitized Copy Approved for Release 201_1/02/24: CIA-RDP91-00587R000100120001-9 ()N yA`'t '~' _ 14 December-1986 THEIs~uAccouNr By JEFF CCONNELL n October of last year, Uri Simchoni, then Israel's chief military attache in AND Washington, sat in the White House situation room with US intelligence officials. Hours earlier, the Palestinian hijackers of the Ach ille La u ro cruise ship had taken off in an Egypt plane to apparent freedom. Sim- choni gave the Americans key information that enabled US warplanes to intercept and bring the lane d p own In Slcuy. The next month, Jonathan Jay Pollard, a Navy counterterrorism analyst, was arrested for passing US military secrets to Israel, in what became the most public intelligence scandal ever to come between the two countries. Pollard, 32, is scheduled to be sen- tenced next month. Although Israel continues to shrug it off as a "rogue operation," the Pollard case has sparked debate in both countries over the extent of past and present Israeli operations in the United States. Such examples of cooperation and conflict run throughout US-Israeli relations. They are especially evident in the ordinarily hidden realm of intelligence-gathering, and no- where more so than in what the Central Intelligence Agency calls its "Israeli account." For 35 years, the Israeli account has been the main channel through which the CIA and the Israeli intelligence service. known as Mossad, have exchanged imnr e-l ? ? -. -unvilage activines, Arab states, and other matters of mutual concern. But past and present CIA officers say the account has another side. "Everything in the relationship between intelligence services is like a double-edged sword." Stephen C. Mullett, who handled the Is- raeli account for almost two decades, said in a rare interview a few weeks before his death this past spring, "On the one hand, there is the friet,dly aspect. But on the other, there is the counterintelligence aspect - in which you try to get as much as you can and keep others from getting things from you." This is the story of the Israeli account. Pieced together from six months of interviews with dozens of current and former government officials, most of whom would not allow their names to be used, it is a story that has unfolded almost entirely outside the public view. It is a drama in which the CIA's counterintelligence efforts have, at times, overshadowed its friendly cooperation with Israel. Understanding this helps makes sense of the debate over Israeli espionage in the United States. Like any drama, this story is in some ways about the strong personalities involved. But more often, it re- flects larger matters: strengths and weaknesses in US-Israeli ties, objectivity in American perception of Israel, and a possible shift in the nature of the United States' intelligence relationship with Israel US SECURITY CONCERNS DATE BACK TO THE VERY BEGIN- rungs of the CLA's relationship with Israel. For almost 25 years, that relationship came under the aegis of James Jesus Angleton, the aeen- Iy's legendary chief of counterintelligence from the late 1940s until 1974. A veteran of the wartime office of Strategic Services. Angle- ton led the postwar remnants of the spy organization in Italy while he was only in his late 20s. Working with the Jewish underground. he helped Jewish refugees emigrate to Palestine. Those efforts would give him a special stature among Israelis for years to come. Three years after the war. Angleton returned to Washington from Italy and quickly took charge of counterintelligence in the CIA, the organization that evolved out of the OSS. His counterintelligence staff was responsible for protecting CIA operations from detection. Within the huge bureaucracy. Angleton was the quintessential in- dependent operator whose blend of charm and forcefulness won him great respect - and power. In late 1951. Angleton established a formal liaison with Israeli intelligence and set up the Israeli account within the counterintelligence staff. He was motivated in part, sources say, by the belief that the Moesad, the Israeli intelligence service, could provide a rich lode of information about Soviet oper- ations. Initially, Angleton handled the account personally in Washington. His first Israeli counterpart was Teddy Kollek, then a minister at the Israeli Embassy, now mayor of Jerusalem. Kopek was enormously The Israeli a000Ur1[ an origtnaj trunker." for to those who did not work on it a e CIA This may noott ha a aiwa been so. One former CIA officer tells a story, perhaps apocryphal. of the early days of the account. For a time, this man says, the work of the staff handling Israeli operations was out in the open, lust ike that involving any other country. Joe day. however, staff men ,- ben arrived at CIA headquar- ters to find that then film tbw desks. and everything else had vanished. and that they were to be tranderred to other sec- tions. Only Later did they learn. according to the story, that Angleton had taken over. The CIA's C laodesttm Ser- vices. winch emrYS out espo- Wage and other covert oper- ations, consists of separate staffs - of which the coumter- intelliBence staff is one - and a ` ?on of g aphid divi- srons. The g cal div - sons are turtber 6rmches, and the branches iinto nto dew Each country m wtocli the CLA has an interest is as- sped a separate desk. and each desk is and to handle its own country 'account Under Angleton. the New East division at the CIA's Clan- destine Services had a desk to Israel el couwas, ntry - ~e cept Israel- Angletoa's vocal domain in- side the agency and thus tic - ealy a pet of be cotmtermte& gence staff. There was no d- rest contact between CIA offi- cers handling Israel and others responwhle for other Mideast countries - a situation that lat- er fed sttapkodns that Angleton treated Israel favorably. Sanitized Copy Approved for Release 2011/02/24: CIA-RDP91-00587R000100120001-9 Sanitized Copy Approved for Release 2011/02/24: CIA-RDP91-00587R000100120001-9 Secrecy was the essence of the Israeli account By its na- ture, Angletan's camterthte1h- gence staff was one of the CIA's most seavt* cameo- netts. Adding to the secrecy Angleton held the Ism* ac- - In his hip pocket," ac- carding to a formes colleague. Angleton h?sdf kept a low profile, essentially invisible out- side the agency and little known even to CIA colleagues. To help with operations concerning Israel, Angleton brought in Stephen Milett, a former OSS colleague who was even more invisible than Angle- ton. Charies Rockwe4 Mdlett's brother-m-law and a Cambridge resident, recalls the day Mrbett met his family in 1960. "My fa- ther asked him what he did for a living. 'I can't tell you,' was Steve's reply." Throughout the 1950s and '60s, MHktt traveled widely, handling sensitive matters for Angletm Israel was only one of those matters. According to a former member of the counter- intelligence staff, Millett was in regular contact with Jay Love- stone the longtime head of the international wing of the AFL- CIO, who is called "a link man" to the CIA in John Ranelagh's recent book The Agency Ang- leton had a number of agents in Europe. working independently of the Western Europe division, and Mullett was responsible for many of them But Israel was a primary re- sponsibility, and some col- leagues say that for many years the Israeli account was basically a two-man operation, wfth only Angleton and Mullett (and per- haps Bertha Dasenburg, Angle- ton's secretary) knowing its fun story n the 1950s; the assumption grew at the CIA that Angie- ton's interests were Israel's interests, and that the CIA had adopted a hands-off attitude to- ward Angleton and Israel. Sev- eral of Angleton's colleagues, hoororevQ, dinpute this. "Angle- ton certainly wasn't going elf as a rogue elephant" says a for- mer high CIA affisak who over- saw Angletun's work. Sam Pa- pich, who harmed many cam related to Israel as the FBrs li- aison with the CIA from 1950 to 1970, says: "All I can say is, show me a case where Angleton was taken in or overly sympa- thetic to Israel." Several former CIA people say they assumed that Angleton was sympathetic toward Israel because he valued his contacts in the Israeli government and wanted them to continue, and because he wanted the state to remain noncommunist. Few, however, are able to cite specif- ic uses where Austen was actually taken in or overly sym- pathetic. One case that did emerge involves the US response to the attack on Egypt in 1956 by Is- rael, France, and Britain, known as the Suez crisis. Ac- cording to Robert Amory, then the CIA's deputy director of in- telligence, Washington first learned of the imminent inva- sion when a US military attache in Tel Aviv reported that his jeep driver, a severely disabled Israeli atizen, had been called active duty. Amory conclud- ed that ageneal mobilization was in effect and that an attach would occur soon, probably two days after the Jewish Sabbath. He recalls that he went to no- tify CIA director Alien Dulles and that Angleton walked in soon after Dulles and Amory began talking about the matter. Amory and Angleton strongly disagreed over Amorys predic- tion, with Angleton insisting that his Israeli contacts had just told him that would be no at- tack on Egypt. Exasperated, Amory recalls that be finally in- sisted to Dui 'F you trust my people and me, or you trust this co-opted Israeli agent.!' Amory says he believed that Dulles agreed with him. But two days later, as press reports of a possible Israeli attack on Egypt began to come in, Dulles conveyed Angleton's version to a special meeting called by President Dwight Eisenhower, according to documents recent- ly uncovered at the Eisenhower Lbrary in Abrieme, I mink Ac- cording to the miunutes of that meeting, Dulles suggested that the troop movements could be simply a "probing action" and not an actual attack. "Which proves to me that samet~e in [between] Angleton got back to him and resold it," says Amory, who only recently learned the contents of the minutes, and who believes that Angleton was duped and not dupiiatous, Ang- leton, who ism his late 60s and lives outside Washingtao, re- fuses to comment about nay matters related to Israel. Despite the lingering doubts abort Angleton's posture toward Israel, former CIA employees say his unit took anything but a hands- nff aeuroach to that country. One intelligence veteran who saw CIA reports the 1950s and 1960s says the Unit- ed States conducted both "hu- man and communications intelli- gence operations" against Isra- el. Human operations involve agents who rollers information against a country without that eowmtry's knowledge, commrmi- cations operations involve the 1nterception of cable traffic and other dectroaic sigoais. In the beginning, this let! voce vet- eran says, these operations those dcomparable in irected at of c tries. In the interview this post Milled tt acknowledged the existence some, US inteIIi- genc a operations agaamt Israel but said that they were fewer in number than those Israel mounted against the United States. There was less need for US operations against Israel than for Israeli efforts against this country, Mullett said, and, in any case, conducting espio- nage operations inside Israel was d0cult. "Israel is much smapQ than the United States, its people more tightly knit. Ev- erybody knows each other." This made human intdbgence operations inside Israel difficult. The United States appar- ently relied heavily on commu- nications intelligence. Accord- ing to a former government of- ficial who handled Israeli mat- ters, the United States broke Israel's codes - the rules that govern the way messages are encrypted - soon after the country was created. s1 Sanitized Copy Approved for Release 2011/02/24: CIA-RDP91-00587R000100120001-9 Sanitized Copy Approved for Release 2011/02/24: CIA-RDP91-00587R000100120001-9 In Angleton's time, commu- nications-intercept operations were coordinated among Angle- toe's Israeli desk, the National Security Agency, and the CIA's Division D, its liaison twit with the NSA. Two former employ. ees of the NSA recall its "He- brew desk," which they say was like the CIA's Israeli unit - se- from other =its separated handling the Middle East. W bile the United States was conducting its es- pionage operations, the Israelis were also mounting their own operatim the United States, outside their liaison with the CIA. As a re- sult, the United States stepped up its counterintelligence ef- forts and took measures to pro- tect the security of its commu- nications. Those efforts - which included suppressing some reports for fear they would fall into Israeli bands - contributed to the US intelli- gence failure in the months be- fore the Suez crisis in 1956. The concern was not un- founded. Telephone taps were discovered in the home of the US military attache in Tel Aviv in 1956, according to a 1979 CIA counterintelligence staff report on Israeli espionage found by Iranian militants in the US Embassy in Tehran. Stephen Koczak, a former foreign service after assigned to Tel Aviv, says the situation was worse than that. According to Koczak, Donald John Sane, the CIA's man in Israel from 1953 to 1956, informed his suc- cessor, Harold G. W'i rams, that the phones in the CIA station in the US Embassy in Israel were tapped. Koczak says that Saone, in the months before leaving, also told his successor that Koczak and Williams were under suave lance by the Israe- lis. But of even greater concern to the CIA and the State De- partment was the possibility of theft of diplomatic communica- tions. Because the US Embassy in Tel Aviv refused to send cer- 3 tam messages out of fear these quired to obtain prior clearance messages might find their way from his socia to the Israeli Embassy in Wash- with den foreigners, and to be did so. so. ington, events preceding the "These were personal as well Suez crisis were inadequately as official friends with whom I reported, Kock recalls. For- had dean," . Kock said later. "I sign service officers sought to sympathized with their pry avoid controversy, and the lems, and they knew my friend- CIA's men, Sanne and Williams, ly feelings " would not risk offending the Son- State Department with their nenfeldt, ed with him own differing reports. There was particular con- in the intelligence bureau. There, Koczak alleges. cern over leaks from State De- he watched Sonnenfeldt disclose to a group of partment intelligence, accord- Israelis information from classified CIA and State ing to several sources. The CIA Department cables detailing sensitive discussions took an interest in such cases between US and Lebanese officials on arrange- because State Department ana- ments for the landing of US troops. lysts. as consumers of CIA and Koczak made this allegation in sworn testimo- NSA intelligence, were in a po- ny to Congress in 1973 and reaffirmed and elabo- sition to compromise the sue- rated on it in recent interviews. "It became clear rity of the entire intelligence to me then," Koczak told Congress, "that this community. was ... part of the whole problem as to why the One the late se5 of allegations from American embassy in Israel felt so totally inse- Helmut cure [and] why the information went back so fast Sonnenfeldt, a Soviet intelli- [to the Israeiisj." Kok later found out, he says, Part hen Who lorter Sb~ a that veldt did not have prior clearance for key National Security Cocmcil g the party and even failed to report his kids to H meeting with foreigners after the fact. aide it now en a Henry Kissinger and Reached in Washington last month, Sonnen- e i guest scholar at feldt denied Koczak's allegations, as he did when Brookings Institution they were first made public in 1973. He said that In early 1959, soon after re- they had been investigated thoroughly and that turning to CIA headquarters they had had no impact on his subsequent career. from his tour of duty in Tel Aviv, Harold Williams contacted Koczak, who had returned to the United States from Israel the year before. According to Koczak, Williams told him that besides the security breaches that had troubled the two in Tel Aviv, there were other leaks of information, that the Israeli government had the leaked in- formation, and that one of his problems was communicating information to Washington. Williams told Koczak that some breaches of security con- cerned the US intervention in Koczak says he told his story to William wh o s, was alarmed and took it back to CIA headquar- ters. According to two sources, one investigation of Sonnenfeldt, Justice conduct the by the FBI and the behest of the CIA. commenced but was suspended when the CIA and State Department balked at declassifying the allegedly compromised cables, as they would have needed to do for any public hearing. Other such episodes involving the CIA and the State Department were cited in interviews. The counterintelligence staff's secret 1979 study on Israeli intelligence listed "collection of infor- mation on secret US policy and decisions" as sec- ond among Israel's intelligence priorities. Lebanon in July 1958. Koczak By the 1960s the Israeli account had recalled incident he had Koczak changed in subtle ways. No longer a two- served around that time. Koc- man operation, it had taken over an office se zak e had been invited to a down the hall from Angleton's. But Angleton's at the home of an Israeli whom ship pocket" approach is said to have continued, he had known while in Tel Aviv even uii after Millets left and was replaced by Harold and who was then assigned to Washington. Most of the others had Despite the independence in Tel Aviv that invited were Israelis. Since impressed Koh Williams "was not totally 'in' on the [Israeli] thing when he was in Washing- Koc zak was then with the Ger- ton," a CIA friend of Williams says. man division of State Depart- good job in managing day-to-day affairs, but he ment intelligence, he was re- realized that he was,heiid at arms' length by Ang- leton. Whether he cared, I don't know." Sanitized Copy Approved for Release 2011/02/24: CIA-RDP91-00587R000100120001-9 Sanitized Copy Approved for Release 2011/02/24: CIA-RDP91-00587R000100120001-9 The counterintelligence aspect persisted as well, and despite the expanded offices, the ac- count was kept small and compartmented. Even inside the counterintelligence staff, there was strict secrecy. One source recalls that the Israeli files, located in the Israel office, were one of sev- eral "special collections" in counterintelligence with restricted access. The central registry was flied with a number of "blind cards"; each con- tained no more than a name and an instruction that directed researchers to one of these collec- tions. Access to information in the Israeli files was thus carefully monitored. By this time, a security measure allowing only non-Jews to work on Israeli matters had been ap- plied to the CIA's analysis and covert operations components. Jesse Leaf, a Jewish analyst who headed the Iran desk during the late 1960s and early 1970s, says that even though his university training had been in Israeli politics, the CIA would never have put him on the Israeli desk. The concern went beyond security. "They didn't want judgments totally prejudiced in favor of Israel," says Leaf. Asked if this would have been a concern in his case, he says, "Probably, yes. But there is no objectivity in the agency any- how." There were disputes between the CIA and other government branches when the CIA blocked the appointments of American Jewish military attaches to the US Embassy in Tel Aviv. "The ambassador would accuse us of anti-Sem- itism," a former CIA officer recalls, "but we would say, 'Appointing this man would be unfair to you, Mr. Ambassador, to him, and to his coun- try.' " If the appointment went through, the for- mer officer says, the CIA believed the attache's credibility, his loyalty, and his own peace of mind would be jeopardized. Former CIA director William Colby says that these security measures were taken to facilitate liaison with Mossad and Arab intelligence ser- vices. "The idea was that ... you had to assure each side that its information wasn't going to the other side - in other words, the Arabs weren't getting the benefit of information about the Is- raelis and vice versa," Colby says. A former US diplomat in Tel Aviv says the CIA man there gave a different account. "He said [the Israeli operation] was kept small to prevent penetration or pressure from American Zion- ists." One Angleton associate also disputes Colby's version. "What Arab intelligence services." he asks. "I've never heard of any. Colby was being discreet." Acknowledging that such a.statement might be construed as anti-Semitic. he says, "The Israel desk was compartmented to keep Is- raelis [Mossad liaison officers] from wandering through the halls of CIA." A former CIA officer argues that these ar- rangements were to the benefit of the Israelis as well as the other parties concerned. He illus- trates his point with the example of one US am- bassador to Israel who became so supportive of Zionist causes and so identified with support tor Israel in the minds of his superiors in Washington that his advice on matters pertaining to Israel came to be disregarded, losing Israel an effective advocate. "But you could never convince the Is- raelis of this," he adds. t was under Williams' tenure as head of the I Israeli desk that the CIA launched its most sensitive investigation of Israel ever. an inqui- ry to determine if the Jewish state had acquired nuclear weapons. By early 1967, according to William Dale, then the second-ranking US diplo- mat in Tel Aviv, the embassy had conchxded that Israel "had or would in the very near future have" them. The CIA's investigation was kept secret, however, from the embassy and most of the rest of the government. Some of the CIA's information came from Jewish Americans who, after visiting Israel, came to believe that Israel was developing weapons that required a supply of highly enriched urani- um, according to sources who studied the matter in the late 1970s. Dale recalls that two Jewish Americans, one a scientist, once came to the em- bassy in Tel Aviv to report their dismay at what they had seen in Israel and their dismay over Is- raeli requests that they not tell US officials. These two Americans, Dale recalls, said Israelis had told them that "their first loyalty, as Jews, [should be] to Israel." According to several sources, sensitive in- struments were secretly sent to Israel to test air, soil, and water samples around Israel's nuclear reactor at Dimona. not far from the southern end of the Dead Sea, where the CIA believed that the weapons program was based. Physical evidence of the material was reportedly obtained. In early 1968, the CIA concluded that Israel had gone nuclear. The mystery was where Israel had obtained the highly enriched uranium. since Israel was not known to be able to produce it. Attention focused on the Nuclear Equipment and Materials Corporation, or NUMEC, of Apollo. Pennsylvania, a manufacturer of highly enriched uranium that had a curious history of poor record keeping, lax security, missing uranium, and close ties to Israel. "The clear consensus in CIA was (that] NU. MEC material had been ... used by the Israelis in fabricating weapons," Carl Duckett, then the agency's deputy director for science and technol- ogy, told ABC News five years ago. "I believe that all my senior analysts agreed with me." The CIA asked the Justice Department to in- vestigate NUMEC for a variety of reasons, ac- cording to sources. One involved the intelligence question of whether uranium had in fact been di- verted to Israel. Another was the counterintelli- gence question: If uranium had been diverted to Israel, who in NUMEC or the US government had committed a security violation. There was a third concern. Angleton's staff was worried "that this was something they didn't know about, and that this lack of knowledge could be dangerous," says a source who later inter- 4 Sanitized Copy Approved for Release 2011/02/24: CIA-RDP91-00587R000100120001-9 Sanitized Copy Approved for Release 2011/02/24: CIA-RDP91-00587R000100120001-9 viewed Angleton in connection with an investiga- tion into CIA handling of the NUMEC affair. "They believed that information could be com- promised to the Soviets if they did not control it." There was even suspicion within the CIA, based in part on FBI electronic intercepts, that a high official of the Atomic Energy Commission had aided the Israelis. The suspicions were never proved. But the matter was taken seriously. If such a story were true and would have come out, says one Angleton colleague, it would have put pressure on the Arabs and greatly contributed to instability throughout the Middle East. Moreover, he adds, "the Soviets would be able to prove the US gave Isra- el the bomb." Aiding Williams with these issues and later succeeding him was John Hadden, whose work on NU- MEC has been commended by Richard Helms, then director of the CIA, and others who worked with Hadden. One source recalls a memo prepared by Hadden, "a 5-foot memo on NUMEC that just kept getting added to." Says another col- league. "Hadden was disturbed because of what he thought was the free hand the Israelis had in the US." Contacted at his home in Maine, Hadden refused to discuss matters related to the CIA. But others interviewed say Hadden and his colleagues came to suspect that the Mossad had a number of "cells" around the country for collecting scientific and technological intelligence. These "cells" were thought to be run from Israel and insulated from one another in case any one was discovered. According to congressional investigators familiar with the case, one theory at the CIA, never proved, was that Zalman Shapiro, NUMEC's founder and former president, was a key player in such a cell. Although there are no documented cases of Shapiro passing any classified information to Israel, he toured the United States soliciting and receiving information from sci- entists friendly to Israel, ac- cording to FBI documents and other sources. The FBI report- edly monitored a meeting of sci- entists at Shapiro's home in Pittsburgh at which a suspected Israeli agent asked the scien- tists to get certain information. Recently released FBI docu- ments on the NUMEC investiga- tion reveal that in September 1968, Shapiro met with a dele- gation of Israeli officials, includ- ing Rafael Eitan, a high Mossad officer. Eitan was reported last year to have headed LEKEM, the scientific intelligence unit in the Israeli government that handled Pollard, the Navy ana- lyst convicted of spying for Is- rael earlier this year. Readied at his home outside Pittsitong ShapQV ctnlleaged the CIA theory. "Where did I tour?' be asked. "What infor- mation did I send and receive?, He said he had had a meeting "with a scientific rntmsek r" but would not identity the sub- ject discussed because he did not "want to help terrorists." He said he did not recall meet- ing Eitan but stressed that he would not have known Eitan's background and that the FBI documents make clear that if he did meet such a person, "it was not done surreptitiouety." `Do you think if there was any truth to any of this stuff that I'd be walking the streets?' he asked. Israeli scientific attaches also came under suspicion of be- ing Mossad agents using their posts as a cover. One such atta- che, Avraham Hermon, was re- ported to have been in contact with NUMEC ofcialss and to have accompanied Eitan on his 1968 visit to NUMEC. Despite circumstantial evi- dence, no violations of the law were proved. FBI investigations into the activities of NUMEC, Shapiro, and the alleged "cells" are said to have ended by 1'971. Government investigators who later talked to Hadden and. his Colleagues point a P it of disappointment within the CIA over the FBrs investigation. The CIA felt that the FBI took a law-forcemeat approach to the investigation instead of a more preventive, co e . gwCe approach, "The FBI is a national Pace force," one CIA fm tici is said to have coca. pittioed. "We have no domestic MM' Re= P And despte then high re- gard for Sam Papich, the FBI haison man, there was a strong feeling among CIA officers and others wonting with them that FBI director J. Edgar Hoover had caved in to political pres- sures in waiting until 1968 to investigate NUMEC and later in concluding the investigation without indictments. Says one former CIA officer. "There were political limitations on how far the FBI could go." I n 1972 Hadden left the CIA. Former colleagues say that Hadden was more involved in the inner workings of the Is- raeli account than Harold Wil- liams had been. Still, some things were apparently kept even from him. Two former as- sociates say he had "crises of confidence" with Angleton from time to time, although other sources, including investi- gators who interviewed Angle- ton and Hadden about NUMEC, say that the two had high re- gard for each other. The next year CIA veteran William Colby took over as di- rector of the agency. Angle- ton's tendency to conceal his Is- raeli contacts from everyone else, even those who worked with him, contributed to an ear- ly decision by Colby to seek changes in the Israeli account. In his autobiography, Honorable Men, Colby wrote: "The segre- gation of the CIA's contacts with Israel, which inevitably ac- companied Angleton's secretive management style, from its offi- cers working in the Middle East as a whole and to a considerable extent the analysts, was impos- sible at a time when the Middle East had become one of the crucial foreign-policy problems of the United States. "So I resolved to move the Israeli account from the Coun- terintelligence Staff. . I hoped Angleton might take the hint and retire. "But he dug in his heels, and marshaled every argument he could think of to urge that such an important contact not be handled in the normal bu- reaucratic machinery." Initially, Colby yielded be- Sanitized Copy Approved for Release 2011/02/24: CIA-RDP91-00587R000100120001-9 Sanitized Copy Approved for Release 2011/02/24: CIA-RDP91-00587R000100120001-9 came, he says, he "feared that Aogietm's professional ntegri- ty and personal intensity might have led him to take dire men- sores 1 1 forced the issue." But Colby became more adamam he wrote, when he was "shocked" to lean after the Yam Kippur War in October 1973 that the CIA station in Is- rael was not allowed to commu- nicate with station in neighbor- ing Arab countries. "I had come to the coocluaim that I was not doing my job ... unless I insist- ed that I, rather than Angleton, make the de =ons about Israeli relations and counterintelli- gence. Colby offered Angleton a "separate status," which in- cluded berg a consultant on, but no longer in charge of, the liaison with Israel. Angleton turned him down and retired. Colby succeeded in taking the Israeli account out at Angle- ton's hands, thereby getting rid of Angleton's secretive style, his ?hip-pocket" approach to Is- raeli matters. However, with Angleton also went the elabo- rate security measures sur. rounding the account. The Israeli desk was moved into the CIA's Near East Divi- sion, and officers responsible for Israel both at headquarters and abroad now freely commu- nicate with their colleagues working on other countries. Sometimes the Mossad even conducts joint operations with CIA field officers in Mideast countries other than Israel - contacts that were tmheard of under Angleton. Instead of compartmmting the Israeli ac- count, the CIA has made it hit every other omit in the division - separately respaoainl m for its own security and camte iote&- gence. CIA ties with Arab states are protected not by compsrtmenting the account but by ad hoc rules that oont=d the flow of iofocmation to Not sad haia.n officers. Jewish em- pio7ees of the US government now may work at the US em- busy in Tel Aviv. For the most pat, the tran- sition was made smoothly. "There was a less severe inter- ruption than many who were in- volved at the time wornea there would be," said an affiloer who has worked on Israeli mat- ters since Angleton's depar- ture. Yet the transition was not made without at least one pos?- ble disruption, reflected by dif- ferences of opinion over the re- cent Pollard case. Under Angle- ton, the essence of counterin- telligence, according to one source, was institutional mem- orr "overview and continuity." The split over Pollard suggests that in the case of Israel, some of that continuity may have been lost. Veterans such as Stephen Millett, with long experience on Israeli matters, emphasize that Pollard was "part of a pattern." They point out parallels to the past: that Rafael Eitan, Pol- lard's handler, visited NLTMEC, that in both cases allegations were made about Israeli science attaches, and that Pollard stole classified US documents as oth- ers before him have been ac- cused of doing. By contrast, current CIA of- ficers and recent retirees tend to call the Pollard case an aber. ration and to play down any links to the past. The changes Colby instituted seem to have led to a decrease in the CIA's concern with security measures against Israel as well as with the history of intelligence con- flicts with that nation. They re- flected a "reevaluation of the total relationship between the US and Israel ... including the intelligence aspect," as a for- mer CIA officer who handled Is- raeli matters during the Carter administration puts it. He and others suggest that the growing strategic links between the two countries since the early 1970s, including intelligence cooper- ation, have led many CIA offi- cials to devalue - some would say overlook - the significance of mtelhg conflicts with Is- rael- Indeed, President Rea- gan's "secret diplomatic initia- tive" with Iran, in which the CIA helped arrange arms ship. ments via Israel to Iran in ex- change for efforts to help free American hostages in Lebanon, is but one example of how heav- ily the United States now relies on cooperation with e Israeli in- gence services to urther its goals in the hfiddk EaSL It is in this Gong, without continuity and overv., that the Pollard case can be viewed as a blunder, an aberration, or, as one former official recently involved with Israeli matters puts it, a "flash in the ? pan. ? EFF MKONNt?LL. WHO LIVES IN SOMERVTLLE. WRITES k8OL7 NAT1n' _EC: R :"'~ SSIIES. RICHARD HIGGD S IS A MEMO OF THE GLOBE STAFF Sanitized Copy Approved for Release 2011/02/24: CIA-RDP91-00587R000100120001-9