BUSH SAYS HE SUPPORTED U.S. WEAPONS SALES TO IRAN

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December 22, 1987
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Bush gifYg r suppor U.S. weapons sales to Iran By Owen Ullmann /nom, a,htngtori Bureau WASHINGTON ? Vice Prefident Bush acknowledged yesterday that he solidly supported President Rea- gan's secret weapons sales to Iran from the outset, even though both of them had misgivings about it. In an interview, Bush said he con- tinues to "strongly support what. the President was doing," even though in hindsight it was clear that the administration had engaged in an arms-for-hostage deal. "Does that mean he ;Reagani had ever had any misgivings about it or concerns about it or reservations? Absolutely," said Bush. "Did I? Yes." But Bush added that "I see nothing incompatible" about. supporting the initiative. "And I still am solid," he added. "Then, as time went on, as time goes on and you have the bene- fit of looking ex post facto at things, you say, 'Gosh, if we had seen all this.' " Bush, the front-runner for the Re- publican presidential nomination, discussed the Iran-contra affair at length for the first time since the release last week of a newly discov- ered White House memorandum from Feb. 1. 1986, which described the vice president as being "solid" in support of the arms sales. The memo, written by former na- tional security adviser John M. Poin- dexter, was released by the Senate's Iran-contra investigative committee, which called the memo "the first evidence (albeit hearsay) the com- mittees have found concerning the vice president's position on the Iran initiative." Bush has said little about .his In- volvement in the scandal, contend- ing that his loyalty to Reagan pre- vents him from discussing his confidential advice to the President or from criticizing the operation. But in subtle ways, Bush has sought to distance himself from the politically unpopular operation, which his GOP opponents have tried to use against him. his strategy has been to support the initiative as a worthwhile diplo- matic overture to Iran and an oppor- tunity to free American hostages. But he has said he would have op- posed it had he been aware that it was an arms-for-hostage deal. The vice president yesterday sought to play down the significance of Poindexter's memo by saying it , merely confirms what was already known about his position._ "Poindexter, I think, has testified under oath about my misgivings. So, yes, I've stood with the President and will continue to stand with him and have no concerns about that at all," he said. Bush press secretary Steve Hart later said that although there is no record of public testimony by Poin- dexter to that effect, Bush was refer- ring to a Poindexter deposition that corraborated the vice president's claim of support with reservations. Hart said he did not know how Bush learned of the deposition, which has not been made public. 'Ile vice president declined to say what his reservations were, but in his autobiography, Looking Forwatd, which was published this fall, he writes that one misgiving he shared with Reagan "was that the United States was involved in a major for- eign-policy initiative with only lim- ited control over how it was carried out" because Israel was playing a major role. Bush also says.in the book that he was not aware that the operation was an arms?for-hostage swap because "I'd been deliberately excluded from key meetings involving details of the Iran operation" and was unaware of vigorous objections to the arms sales voiced by both Secretary of State George P. Shultz and ,then-Secretary of Defense Caspar W. Weinberger. "As it turned out ... this was arms for hostage," he said yesterday. "This was wrong. That should not have happened. Now, do you wish that you'd been clairvoyant enough to say that that was arms for hostages? Well, yes I do." The Washington Post STATINTL OR000100 Mr-erk Times he ashington Times edThe Wall Street Journal The Christian Science Monitor New York Daily News USA Today The Chicago Tribune f/MADEXPAA t hi SkE Date #2,z ..z)sa.?, /9,7 But at the outset of the operation, Bush said, he shared Reagan's con- cern about the American hostages in Lebanon and a keen desire to secure their release. Poindexter's February 1986 memo, which referred to "this risky opera- tion," said "President and VP are solid in taking the position that we have to try." "Look at the Poindexter memo," Bush said. "Did I care about those hostages? Did 1-think the President was right coming down taking the risk to &et the torturers to stop on JCIA Beirut station eEfel- Williaml laTe-y and to free 1E-ose other hos- ta es? Yeah, I did. that's the human side of the equation, that now in our infinite wisdom we can look back on because the hostages aren't released. But that weighed very heavily on my mind at the time ... but it was not presented as arms for hostages." U.S. officials learned in October 1985, about four months before Poin- dexter wrote his memo, that Buck- ley, one of the hostages, had died in captivity the preceding June. Page Approved For Release 2006/01/03 : CIA-RDP91-00901R000100010001-8 9. Vice Prgs projedRen-iirg00gOeinCt-lalk?901 of faine's campaign STAT by Elaine Gilbert Vice President Csearge_,Bush will make a good president because of his varied background, which includes an understanding of world politics, hino-n, George Bush Jr. said during an iiiTerview last week in Hastings. Bush Jr., 41, the eldest of vice president and Barbara Bush's five children, was in Hastings Thursday and Friday on a campaign swing to rally support for his father's Republican presidential nomination. Friday he spoke to the Hastings Women's Club. In the interview, Bush Jr. talked of his father's international experiences as am- bassador to the United Nations, ambassador to China and head of the Central Intelligence Agency. He said the vice president would not have to compromise his CIA training and experiences to be open with the American people if he is elected president. "As head of the CIA. the most important thing about that is that he understands the world the way it is," Bush Jr. said. "I think there are some secrets that we don't need to be sharing with the world and I think the American public understands that. But what we don't need is some covert ac- tivities taking place out of the National Securi- ty Council and George Bush has said this. "People say 'why didn't he do something about it (the Iran-Contra affair)?" and the answer to that was 'like the president, he (Bush) didn't know.' It's hard for people to believe but the hearings proved that out...that it was simply that some people withheld infor- mation from the president and the vice presi- dent and that's wrong and George Bush has said it's wrong." George Bush, if elected President, "will understand what's available for knowledge and what shouldn't be," his son said. "But, he won't use the National Security Council as an operating branch. It's an advisory branch. "When he. (the vice president) was head of the CIA, the Senate was trying to dismantle the CIA and he fought for the integrity of the CIA. "He also spent a lot of time testifying on 'the Hill' and brought some reforms to the agency that did prevent unrecognized ac- tivities ? in other words, not to allow the agency to run unfettered to do a bunch of covert activities that were not acceptable to the elected officials. So he has been a part of the reform (of the CIA) as well," Bush Jr. said. Turning to the race for the nomination, Bush said that his father and Pat Robertson have a close race in Michigan. Bush Jr. said he feels the level of en- thusiasm for his father's nomination is in- creasing as Jan. 14 draws near. That's the day when Michigan county delegates convene. "Bush supporters now realize that we've got a battle on our hands and realize the time is coming closer and therefore people are more enthusiastic than they have been in the past," he said. Nationally, "the polls show George Bush with a pretty good lead," his son said. Of the vice president's nearest challenger, Sen. Robert Dole, Bush Jr. said, "I think George Bush will beat him, but Bob Dole is running a good campaign. "Dole has been in the U.S. Senate and House of Representatives for most of his career and that's good. I just happen to believe that a varied background (like George Bush has) is more important. George Bush has served in the Congress like Bob Dole but he's held other jobs and learned from other jobs as well, such as running the CIA, serving as am- bassador to China and being vice president. "We live in a complicated world today and so as a result it makes sense to have someone who sees the world and has been involved in world politics," Bush Jr. said. "Bob Dole is a good man, don't get me wrong. I just happen to think George Bush is a better person." "George Bush knows most of the leaders of the free world and the Communist world for that matter, and therefore has a better chance to take the U.S. message and negotiate for the United States." Raised in Connecticut, Bush Jr. said his father fought in World War II immediately after high school graduation. "He (George Bush) was a fighter pilot, a highly decorated World War II hero. A lot of people don't know that. He was actually shot down in combat and rescued by a United States submarine: "He did write a book about it that's out right now, called 'Looking.Forward.' It talks about that incident and the questions about whether or not he'd be rescued by a U.S. sub as opposed to a Japanese vessel that was corn- ing.after him. He had some very prayerful moments during that experience in his life." After graduating from Yale University, where Bush was a Phi Betta Kappa and a good athlete, he moved to West Texas and started his own company in the oil and gas drilling and contracting business. As a businessman, Bush Jr. said his father dealt with roughnecks, drilling superintendents and a variety of other people. "He was a good man and people liked him and worked hard with him for a common pur- pose which was to build his little company up and provide more jobs. He then ran for U.S. Congress and won out of Houston, Tex." Bush Jr. also pointed out that his father ran the Republican Party "during Watergate, which was a very difficult time." If Bush receives the presidential nomina- tion, his son said his father will campaign on The Washington Post S-TATI NT L 01, Yoork Tmes R00010?C;rrOWabilligtoni Times The Wall Street Journal The Christian Science Monitor New York Daily News USA Today The Chicago Tribune 14 Bother (mt) Pec? 17 Date four major platforms. "The first one is the economy ? real jobs in the private sector, not raising taxes, en- couraging fiscal control at the House of Representatives level. "I think we'll be talking about peace, the INF (Intermediate Nuclear Freeze) Treaty. Bush is very much in favor of it. He wants to build on that ? a verifiable peace treaty so that we can get rid of chemical and biological weapons that can wipe out civilizations..." Bush Jr. said his father also wants to be known as "the education president" and will be concerned with environmental issues. "There are millions of issues, but you've got to concentrate on four or five of them," he said. Bush Jr., himself, may be a candidate for some public office in the future. He was nar- rowly defeated in a bid for a 19th Congres- sional seat in West Texas in 1978, but says "I'm not discouraged in the least by having gotten whipped. "At times," he said he has considered the possibly of seeking an office, but has no idea what one it might be or when. "Timing is so important in politics, you never know what's going to fall into your path." Page 3? . Approved For Release 2006/01/03 : CIA-RDP91-00901R000100010001-8 sTATc Forgisident'S?StinctalkS9?1 of father's campaign by Elaine Gilbert Vice PresidentSze,Auge?Bush will make a good president bs_oge. of his varied background, which includes an understanding of world politics, hiT-s-O-n. George Bush Jr. said during an inre-rview last week in Hastings. Bush Jr., 41, the eldest of vice president and Barbara Bush's five children, was in Hastings Thursday and Friday on a campaign swing to rally support for his father's Republican presidential nomination. Friday he spoke to the Hastings Women's Club. In the interview. Bush Jr. talked of his father's international experiences as am- bassador to the United Nations, ambassador to China and head of the Central Intelligence Agency. He said the vice president would not have to compromise his CIA training and experiences to be open with the American people if he is elected president. As head of the CIA, the most important thing about that is that he understands the world the way it is," Bush Jr. said. "I think there are some secrets that we don't need to be sharing with the world and I think the American public understands that. But what we don't need is some covert ac- tivities taking place out of the National Securi- ty Council and GeOrge Bush has said this. "People say 'why didn't he do something about it (the Iran-Contra affair)?" and the answer to that was 'like the president, he (Bush) didn't know.' It's hard for people to believe but the hearings proved that out.. .that it was simply that some people withheld infor- mation from the president and the vice presi- dent and that's wrong and George Bush has said it's wrong." George Bush. if elected President. will understand what's available for knowledge and what shouldn't be," his son said. "But. he won't use the National Security Council as an operating branch. It's an advisory branch. "When he (the vice president) was head of the CIA, the Senate was trying to dismantle the CIA and he fought for the integrity of the CIA. "He also spent a lot of time testifying on 'the Hill' and brought some reforms to the agency that did prevent unrecognized ac- tivities ? in other words, not to allow the agency to run unfettered to do a bunch of covert activities that were not acceptable to the elected officials. So he has been a part of the reform (of the CIA) as well," Bush Jr. said. Turning to the race for the nomination, Bush said that his father and Pat Robertson have a close race in Michigan. Bush Jr. said he feels the level of en- thusiasm for his father's nomination is in- creasing as Jan. 14 draws near. That's the day when Michigan county delegates convene. "Bush supporters now realize that we've got a battle on our hands and realize the time is coming closer and therefore people are more enthusiastic than they have been in the past," he said. Nationally, "the polls show George Bush with a pretty good lead.'' his son said. Of the vice president's nearest challenger, Sen. Robert Dole. Bush Jr. said, "I think George Bush will beat him, but Bob Dole is running a good campaign. "Dole has been in the U.S. Senate and House of Representatives for most of his career and that's good. I just happen to believe that a varied background (like George Bush has) is more important. George Bush has served in the Congress like Bob Dole but he's held other jobs and learned from other jobs as well, such as running the CIA, serving as am- bassador to China and being vice president. "We live in a complicated world today and so as a result it makes sense to have someone who sees the world and has been involved in world politics." Bush Jr. said. ?Bob Dole is a good man, don't get me wrong. I just happen to think George Bush is a better person." "George Bush knows most of the leaders of the free world and the Communist world for that matter, and therefore has a better chance to take the U.S. message and negotiate for the United States." Raised in Connecticut, Bush Jr. said his father fought in World War II immediately after high school graduation. "He (George Bush) was a fighter pilot, a highly decorated World War II hero. A lot of people don't know that. He was actually shot down in combat and rescued by a United States submarine .- 'He did write a book about it that's out right now, called 'Looking forward.' It talks about that incident =ind the questions about whether or not he'd be rescued by a U.S. sub as opposed to a Japanese vessel that was com- ing-after him. He had some very prayerful moments during that experience in his life." After graduating from Yale University. where Bush was a Phi Betta Kappa and a good athlete, he moved to West Texas and started his own company in the oil and gas drilling and contracting business. As a businessman. Bush Jr. said his father dealt with roughnecks. drilling superintendents and a variety of other people. "He was a good man and people liked him and worked hard with him for a common pur- pose which was to build his little company up and provide more jobs. He then ran for U.S. Congress and won out of Houston, Tex." Bush Jr. also pointed out that his father ran the Republican Party "during Watergate, which was a very difficult time." If Bush receives the presidential nomina- tion, his son said his father will campaign on The Washington Post The New York Times _ R00010001-00411h>on Times The Wall Street Journal The Christian Science Monitor New York Daily News USA Today The Chicago Tribune !is Barite r (m Date / _peC. /37 four major platforms. "The first one is the economy ? real jobs in the private sector, not raising taxes, en- couraging fiscal control at the House of Representatives level. ?I think we'll be talking about peace, the INF (Intermediate Nuclear Freeze) Treaty. Bush is very much in favor of it. He wants to build on that ? a verifiable peace treaty so that we can get rid of chemical and biological weapons that can wipe out civilizations..." Bush Jr. said his father also wants to be known as "the education president" and will be concerned with environmental issues. "There are millions of issues, but you've got to concentrate on four or five of them," he said. Bush Jr., himself, may be a candidate for some public office in the future. He was nar- rowly defeated in a bid for a 19th Congres- sional seat in West Texas in 1978, but says "I'm not discouraged in the least by having gotten whipped. "At times," he said he has considered the possibly of seeking an office, but has no idea what one it might be or when. "Timing is so important in politics. you never know what's going to fall into your path." STATINTL Page 3? . Approved For Release 2006/01/03 : CIA-RDP91-00901R000100010001-8 The Washington Post STATINTL The New York Times Approved For Release 2006/01/03 : C A-RDP91-00901R00010001main4 R .--,...sngtor Times The Wail Street Journal ? - Patience and Prudence for President="""s The Christian Science Monitor LOOKING FORWARD by George Bush with Victor Gold ( Doubleday: $18.95; 770 pp., illustrated) Reviewed by Leonard 13ushicoff The campaign biography/auto- biography is a uniquely Ameri- can creation, a throwaway adver- tisement for political shoppers, its ultimate destination the remainder table or the yard sale. But don't dismiss it as sheer blarney. The pitch being made, the mixture of fact and fancy, high-lighting and omission, all suggest how Candi- date X or Y hopes to be per- ceived?and admired. If so, then George Bush and Victor Gold (a well-known Wash- ington political writer) haven't helped their cause. This bland, episodic, straight-arrow book por- trays Bush as a regular guy, a "Mr. Smith Goes to Washington," by veneering his upper-class back- ground with a populist, Texas over- lay of oil fields and Tex-Mex food. It doesn't work. Bush is not just plain folks, and it is absurd to cast him so wildly against type. "Look- ing Forward" presents him as loy- al, rational, reasonable, every mother's most reliable son-in-law. Of imagination, there is none, of originality, no spark. And why should there be? Working hard within the system has already brought Bush a heartbeat away from the Oval Office. Once upon a time, this outlook might have satis- fied a nation contest with good administration rather than dynam- ic leadership. But now. . . ? Bush remains an Establishment offspring, of elite family and educa- tion, his self-confidence tempered by modesty, his ambition by good form. He comes from a large, wealthy, hard-working Connecti- cut, i.e., suburban New York, fami- ly. His father, Prescott Bush, had moved East from Ohio to build a very successful career, first as a Wall Street banker, and then as a moderate Republican senator dur- ing the Eieenhower presidency. Approved For Release 2 Bush, always in a hurry, did all the right things early on. He went straight from a New England prep school to a carrier deck in the Pacific. (His father had fought in World War I.) As the youngest pilot in the Navy, Bush flew bomb- ers against Japanese-held islands in 1943-'44; he flew 58- combat masons, was shot down twice and rescued twice. He seems to-have put it all behind him, offering no hint about its effect?if any?on his thinking or outlook. Bush met his wife at 17, married at 20, and raced through Yale?his father's school?as a war veteran. Of ideas, courses, teachers, he says nothing ( actually, he was a Phi Beta Kappa); of his college baseball career, far too much. A stray remark suggests a road not taken.. Bush was urged to apply far a Rhodes scholarship. He decided not to With a wife and child to support after three lost years at war, entering "the real world" of busi- ness was far more important. That meant West Texas, where insiders saw big bucks to be made. This Bush did, starting at the bottom in dusty oil towns, gaining experience in an established com- pany before joining other ambitious young men in snapping up hot properties and going an their own. This could be a classic American story of risk, grit, and drive, but Bush skims right over it, barely touching both the wheeling and dealing, and also the struggles of a Yalie making good in the outback.. Even the lingering death of his young daughter from leukemia in 1953 is handled briskly, almost impersonally. As Bush says about suffering briefly from a bleeding ulcer: "All my life rd worked at channeling my emotions, trying not to let anger or frustration influence my thinking." Bush's national career ?igen with his election to Congress from Houston in 1966. The upward moves continued ( the Bush family moved 28 times in 40 years), with short-lived stops to bolster his experience?and his resume: Bush's trump card is expertise, not policy. After four years in Con- gress, there were two as ambassa- dor to the United Nations, 11/2 as chairman of the Republican Na- decal Committee, and 13 months 0 Nichtglindigil*Orand director. 100701-sc?. R000 10 The Chicago Tribune -7:7>r/9s - /0 Date Noi Lqe 7_ Again, Bush tells us virtually. nothing of events, but it is clear that his upbringing enabled him to fit gracefully into institutions, to adjust totheir dynamics and to the peraocal relationships that grease the wheels. So he performed ably, treating each new job as "a chal- lenge, learning giddily from his subordinates, and faithfully carry- ing out his instructions from above. At the United Nations, he reached out even to the smelled Third World country; at the National Committee, he performed faithfully through the worst of Watergate; at the,CIA, he tried to improve rela- tions with Congress and the morale of a demoralised staff; and in China, he managed to get along with Henry Kissinger while also tightly raising the very low profile of the American presence. But are cotnpetence, experience, and prudence sufficient for a Presi- dent? Bush tells two stories that suggest air answer. While serving in China during 1975, Bush joined Knger in a fascinating conver- sation with Mao Zedang. then 81, and very ill. Mao invited Bush to return. Bush was interested, but chose to consult, his staff, who advised against it: Mao was just being diplomatic, they argued. Mao later died. Bush spoke of the invita- tion to a Chinese official who regretted Bush's caution: "The Chairman would never have made such an invitation tmless he meant it." In 1953. Bush and his business friends in Tens needed a name for their new oil company, a name that would stand out in the phone book. They chose Zapata. after "Viva Zapata." the Marion Brando film then playing, about the charismatic peasant Mexican leader of the 1911 Revolution. Bush may have seen the film, but he didn't grasp the point: Zapata loathed everything that prudent businessmen repre- sented. Page ? ac 00 1 000 1-8 The Washington Po% The New York Times TATtNTL shI _ Approved For Releas- . - - 901R0001000100.11t8 ngton Times The Wall Street Journal ARNOLD BUCHMAN VP( ,ryt ,-CoA-41 The Christian Science Monitor New York Daily News USA Today The Chicago Tribune Date 74, 0---csrez, Master of the ill-chosen word? Vice President George Bush has a propensity for saying foolish things whenever he goes live. We all know that. His latest gaffe, a denigration of De- troit auto workers and the quality of American automobiles, , concerned the superiority of Soviet tank me- chanics over American mechanics. Mr. Bush's staff has laughed it off as another Bush-ism. However, the words of a possible future president of the United States are not to be laughed off without first examining the record of other Bush off-the-cuff comments. And that record shows, to be charitable, an innocence about the Soviet Union which bodes ill for U.S. security un- der a Bush administration. The present Bush contretemps began in Brussels on Oct. 2 when the vice president was asked what he had learned on his just-completed 10-day trip to Western Europe and Poland. This was his answer: "Well, it wasn't so much a question of learning what is new except I learned from the ambassador of Italy, or maybe it was Norway, that the Soviets had had an operation re- cently where they had 350 tanks and never had a mechanical breakdown. "That's what I learned that was new. You might say what's the sig- nificance of that, as I told them in there, hey, when the mechanics that keep those tanks running run out of work in the Soviet Union, send them to Detroit, because we could use that kind of ability. That's quite an achievement in an operation." You might ask, as Mr. Bush did, what's the significance of that statement. First, the significance lies in Mr. Bush's will to believe that 350 Soviet tanks could run (I assume it must have been in a military exercise) and "never" have a mechanical breakdown, thereby implying that Detroit's tanks lack the ministra- tions of equally efficient mechanics. In the second place, how would the ambassador of Italy (or maybe it was Norway or some other ambassa- dor) know about those Soviet tanks and how long they had run without a breakdown. An hour? A week? Twenty-four hours straight? Ten sec- onds? In the third place, before uttering on the subject of the durability of Soviet tanks, I would have thought the vice president of the United States would check with the Penta- gon to see whether some ambassa- dor or other's statements could be confirmed by our military people. After all, there is such a thing as KGB disinformation. If the ill-chosen words in Brussels were the only example of Mr. Bush's foolish rhetoric about the Soviet Union, we could attribute it to jet lag. But there are some rather remark- able statements he has made which reflect a will to believe great and good things about the Soviet Union. For example, in a tape-recorded in- terview with the Christian Science Monitor, Dec. 20, 1982, Mr. Bush Who had served briefly as CIA direc- tor from 1976 to 1977, said about Yuri V. Andropov, the newly chosen So- viet leader and former head of the Soviet secret police: "My view of Andropov is that some people make this KGB thing sound horrendous. Maybe I speak defensively as a former head of the CIA. But leave out the operational side of KGB ? the naughty things they do.. Naughty things they do? Time magazine quoted Mr. Bush's greeting to Mr. Andropov after at- tending the Leonid Brezhnev fu- neral, "I feel I already know you, since we served in similar positions." Nothing could be further from the truth than that the KC-13 chairman and the CIA director hold similar positions. The omnicompetence, om- nipresence and utier ruthlessness of the KGB make the position of KGB chairmani_gualitatively and quanti- tatively, different from that of CIA director. All we need as doc- umentation for my argument is to ask: Could a Soviet journalist write the kind of book about the KGB that Bob Woodward has just published about the CIA? Why should a former CIA direc- tor, a former U.S. ambassador to the United Nations, a holder of other high government positions and now vice president of the United States with access to information about Mr. Andropov, the Butcher of Budapest in the 1956 uprising, want to whitewash the KGB? During the pe- riod the KGB was headed by Mr. Andropov, the perversion of psychi- atry and pharmacology reached a horrifying peak. But for Mr. Bush these were "naughty things." More and more, questions must be raised as to the political knowledge and convictions of George Bush on the most important question before the democratic world ? how to deal with the Soviet Union. Page Approved For Release 2006/01/03 : CIA-RDP91-00901R000100010001-8 wh ApNed For Fdetaq;006/01103 CIA-RDP91-00901R00010001,9r4 41-sin Post sec y ot rge Bush? The New York Times The Washington Times The Wall Street Journal The Christian Science Monitor New York Daily News USA Today The Chicago Tribune Date 13 SEP r7 .9., LOOIUNG FORWARD By George Bush with Victor Gold Doubleday. 270 pp. $18.95 By Chalmers M. Roberts GEORGE Herbert Walker Bush's basic problem, as every politic:id jimkie knows, is this he is attempt- ing to do what no other American has nnceeded in doing in over a century and a half, to mrne directly from the vice pres- idency to the presidency. The last to do so was ifattin Van Ibsen in 1836, and he did it essentially an the powerful poblical back of his president Andrew Jackson. Stal, a couple of recent cases demoestrate how close a sitting vice president can get in 1960 Richard Main, constrained as he then was by parts of the Eisenhower record, was barely nosed out by Jahn Kennedy; in 1968 Hubert ffmnsamy, wearing the weight of Lyndon Johnson's Vietnam War, almost dosed the gap ce /faze in those final days. Why not George Bush? It's not easy at the moment to weigh the power of a Reagan endorsenient--that is, assimag I3ush can win the Republican nem- inatice?bot in this, the fust of the '88 cam- paign biographies, Bush is truly the hear-no- evil, speak-no-evil, see-no-evil candidate as far as Reagan is concerned. On the very first page Bush tells us that this is no" 'inside sto- ry' of the Reagan Administration." And it isn't. But it is something of an inside story on Bush, despite all the cautious, play-it-safe- ness that laces the book, not to mention its bland title. (President Reagan's 1965 biog- raphy was Where's the Rest of Me?, Jimmy Carter's in 1975 was Why Not the Best??and don't ask whether either question has been answered.) Despite ail of Bush's recitation of his years in Texas and his efforts to become a resident there, he just can't escape the Yankee he was born to be. En book is dedicated to "my mother and Mier, whose values lit the way? The values? His parents 'embodied the Pu- ritan ethic," and the children "all grew up understanding that life isn't an open-ended checking account? Bush had to earn it, and he did but it was tough to begin with. Dad, an investment banker, was twice elected to the U.S. Senate as a Connecticut gentleman, but young George got no more help than a raw beginner's job in the Texas oil fields by way of a family connection. For a while the Bushes did live checkbook poor, George as a traveling salesman peddling drilling bits. But when he wised up enough to see where the real cs1 matey was to be made and he needed some Investment minim" he appar- ently didn't even try dad; rather, he managed a loan on his own from financier Eugene Meyer, then owner of The Washington Post. And soon success came. By the time his dad died, Bush was the U.S. ambassador to the United Nations, and this is the most he could manage to say: "It was a real blow for me, for all his children. We had lost a best friend? Out of his Puritan raising came the charge of "preppyism," which Bash tries to rearciae in a couple of fat footnotes. He hasn't worn button-down Oxford shirts In twenty years," his popular music taste nms "to couotry-md- western" and so on. He ev en asked "one me- dia specialist" why the two Roosevehs. two_ Tani and Kennedy, who had also gave to ivy League hadn't been diarged with aefitiarie; bat he couldn't get as aasurer that went *cod maamething to do with 'percep- time There are beamed Memories et vaca- tions at ?S * bonne in Maine. where 'Inc pure summertime piessone," brisgiog in a mackerel or polo& lianked tight np there with eating ice amen and atm* ap late? In recounting la early Texas days, Both even says?or says la wife Barlisra saps?that he awe got drunk with the fellows at a Clea- n= party. George Ito& was a genuine World War II naval aviation hem (before he went to Yale), and his story retold here is a duller. Yet somehow it lacks the dash and daring-do of Kennedy's PT-109 esplot, though equally lifethreateniog. In 1962, when the Jahn I3irdi Society threatened to wile axed of the GOP organisation in Hards County (Honstax). Binh defeated the ultralighters, but in doing so he 'found oat that jugular pol- itics ... wasn't my style? In has" est* 30s he had had a bkeifing ulcer; be learned to am- trol it, once cued, by Athannefieg my eser- gies"kss is, "All my bie I'd sleeked at chan- nefing Ili emotions? There is. by contrast. a moment of fire in the belly in Hades accont of a when he was numiog the CIA far President ant wjth Attonev General Edward Len. Levi demanded the an QAeaiiioe tried to aeliheT use3--ni:w?-att Bthre4J. to the sourceL while the two alkids iTaitmg to see Presi- dent' Ford, Levi remarked that withholding the docnnents _ *smacked of a Watergate covert*? At this "my patience snapped,* writes Bush. We'll be talking to the President in a few minutes," said Bush, "Why don't you tell him that?ix isirt those monit* Both men *cooks) down"; Levi "now re- alized he'd hit a raw nerve" (Bush had been GOP national chairman during Watergate), so Levi sug- t gested working it out without both- ering the president. They clid;_the criminal was convicted withoutuse of the "documents the CTA didn't want to release? Which George Bush will we see in the coming primary battles with Bob Dole, Jack Kemp and others? Incidentally, I could find no clue as to whether Bush, if he does win the nomination, would be daring enough to offer Elisabeth Dole the number Alyckspot. _ _ The book ccetains a lot about presidential-vice presidential com- patability, and most of it you've heard many times. There are hints of important issues discussed?but not Iran?at the Thursday Reagan- Bush-only hmcheces. Indeed, Bush writes that the Iran-Contra affair was not lust an aberration caused by a particular mix of personalities" but In some ways, it wits an excess waiting to happen." This means, as Bush explains it, that Presidents Kennedy and Johnson had so altered the original concept of the National Security Council that somehow in 1985-86 the staff "took the ultimate step of not only shaping but oper- ating an independent covert action in the foreign-policy area." There's more about Iran but no more light. Looking Forward was written "with Victor Gold? Vic Gold is a much respected political journalist and political adviser who, in mem- ory, goes back to us boys on the bus - during the Goldwater campaign. I kept looking for bits of pure Gold prose but without success. This book sounds hie Bush talking or, to give Gold his due, Gold has learned to write the way Bush talks. The Looking Fonoard part really isn't there; that will have to come later in the camel/P. The book con- cludes with questions and answers in which someone Me You wouldn't!) is tossing the softballs and Bush is slamming them true and hard. It ends this way: Approved For Release 2006/01103 : CIA-RDP91-00901R000106t9P0001 :116104 821. Approved For Release 2006/01/03 : CIA-RDP91-00901R000100010001-8 Q: Last question. Going back to 1948, the year you left college and went out to Texas. Out of all the things you've done since then?in business, Congress, the U.N., Chi- na, the CIA, the vice presidency? what single accomplishment are you proudest of? GB: The fact that our children still come home.si Approved For Release 2006/01/03 : CIA-RDP91-00901R000100010001-8 2 2 [TATINTL ARTICLE APP roved For Release 2006/01/03 : CIA-RDP91-00901R000100010001-8 ON PAGE NEW YORK TIMES ALS 26 I Bush and Dole Trade Barbs on Congress's Foreign Policy Role By BERNARD WEINRAUB Vicki le The New York Ilrowv SAN ANTONIO, Tex, Aug. 25? Vice President Bush attacked Congress to- day as having "tied the President's hands" and seeking to "micrornan- age" Administration efforts in the Persian Gulf and Central America. Bob Dole, the Senate minority leader, who is a key rival to Mr. Bush for the Republican Presidential nominatioo next year, promptly criticized the Vice President's blunt comments before the naticend convention of American Legion. 'When he's attacking Congress, he's attacking the Republican leadership in the Senate," Mr. Dole told reporters atter speaking to the legionnaires at the Municipal Auditorum here. "I hap- pen to be the leader of that group and we don't think that's an accurate mat ment." "If he wants to attack Congress, he ought to tell us in advance he's goingi after all of us," said an obviously !toyed Mr. Dole. "He shouldn't lump uui all together. If he's saying Congreuj without any distinction, he's attacklnj the President's best supporters in Con- gress." , Dole Increasingly Irked Asked by reporters about the Bush comments, Mr. Dole first said that per- haps what Mr. Bush said was "pardy true" but "it's not a fair accusation." Moments later, as questions persisted about the Bush speech, Mr. Dole spoke In stronger language about the vice President's comments. Lee Atwater, campaign manager for Mr. Bush, implied later in the day that the Vice President's attack on Con- gress was not meant to include conser- vatives like Mr. Dole. "The Vice President is obviously referring to big spenders and the big liberals and hopefully Senator Dols doesn't fall ben any one of those came stories," said Mr. Atwater. Both men received sustained ova- tions front the thousands of. !Vow- mires gathered in this sweltering town after the crowd heard speeches that, despite their focus on Central America and East-West relations, were plait* political 'Vents tied to the 1988 else- tions. Meanwhile, American Legion offir dais emphasized that the visits of Mr. Bush and Mr. Dole, who are each plan- ning announcements of their candida- cies in the fall, were unrelated to the campaign. The officials said that sev- eral Democrats, Including Senator Sam Nunn of Georgia, former Gover- nor Charles S. Robb of Virginia and Speaker of the House Jim Wright of Texas had also been invited to the con- vention. but declined to appear. Officials said that the Democratic and Republican Presidential nominees will be invited to speak at next year's Convention. Doubts on Central America Both Mr. Bush and Mr. Dole, in their speeches, expressed strong reserva- tions about peace plans for Central America that postpone military aid to the Nicaraguan rebels, or contras, while diplomatic moves are under way. "What we must resist at all costs 1st sham," Mr. Bush said, "an illusion of progress that takes the the pressure off the Sandinistas, cripples the contras and strengthens the Communists' grip in power.' ? , "We cannot ? and this Administra- tion will not ? simply cut and run" from the contras, he stated. "In foreign DOI the relationship between Coig?iis?a B the President diould be a partnershiph based on honest dealings and mutual reaped, not on rigid legislative restric- tions that reflect a frozen moment of politicalconsensus." Mr. Bth sald "But with let:Wive ranging -from ?the War Powers Resolution to the 'Wand Amendment. Congress has led the President's hands tighter and tighter Os the conduct ofTeri, policy over the last 15 years." The Boland Amendments restricted aid to the contras in a variety of ways from 1983 to 1985. The legislation is named for its sponsor, Representative Edward P. Boland, Democrat of Mas sachusetts. The War Powers Resolution requires the Administration to notify Congress that it has introduced forces into a re- gion where hostilities are imminent. Mr. Bush said that recently 100 legis- lators "went to court alleging that the deployment of U.S. forces in the Persian Gulf constitutes a violation el the War Powers Resolution." "What kind of wacky world is this where the President is taken to court every time he moves our troops around?" he said. Mr. Bush added that a total of "23 committees and 84 subcommittees claim some jurisdiction over interna- tionaal affairs." "The result has been a series of mis- guided attempts to micromanage our foreign policy," he said. The Bush organization, meanwhile, announced that the Vice President would participate in an Oct. 28 debate In Houston on the television program "Firing Line," with other Republican Presidential candidates. Mr. Dole's speech to the Legion out- lined conservative foreign policy views that seemed to mirror those of Presi- dent Reagan. The Senator made it plain that he viewed the;Soviet leader, Mikhail S. Gorbachev, as well as his policy of "glasnost," or openness, with deep suspicion. Mr. Dole went so far as to compare Mr. Gorbachev with the leaders of Libya and Iran. "The soviet threat is a lot different In nature than the Iran-Libya threat," he said. "But the basic goal is the same: to get Uncle Sam out of the way. Be- cause once you get rid of Uncle Sam, you've got a clear path to spread what- ever brand of aggression and oppres- sion you happen to espouse." Approved For Release 2006/01/03 : CIA-RDP91-00901R000100010001-8 Approved Fdaf2Ri1INtSer1206/P1i9q : CIA-RDP9' 5 July 1987 '119.cPPEARtfl I ?Li -00901R000100010001-8 Bush Gets Personal in Iowa Vice President's New Focus in Campaigning Is His Life Story many that are out there because I've served my country." As a businessman, Bush said, he learned about government regula- tion and "I'm head of the deregu- lation task force for the entire Unit- ed States for the president. And we've done a good job, and I feel viscerally about doing it and doing a better job at it." Bush was ap- pointed to lead a deregulation task force that largely finished its work in 1983. As U.S. envoy to China, Bush said he and his wife, Barbara, "lived in a communist country." While oth- er Republicans are talking about fighting communism, "we know a little bit more about it, because we lived there, we saw what it was like, to see a system just bereft of the freedoms that we used to take for granted every day of our lives." "I think I know more about for- eign affairs because I did_ that. be- cause I was at the U.N. because ran the CIA," he said. If Reagan gets an arms control agreement, he added, "I think I'd be best to build on it. Not just lecturing about it, but knowing what it is to negotiate with the Soviets, as I did at the U.N., or with the Chinese, when we wel- comed them into the U.N., or in China itself." Bush said some unidentified o- pie have told him to "stay sway" from his service as director _of_ the Central Intelligence Agency, but "I don't duck that one?I'm proud of it. very proud of it." He recalled that he ran the Republica!' National toir?nrnitfieriii a difficult ti, Wa- tergate days," and remembered his 1980 presidential campaign in terms arbeatinuff everybody else ihat was out there except for one, Reagan. Bush said little about his role as Reagan's vice president, except to reiterate his view that "loyalty is not a character flaw," repeat some economic statistics of recent years and recall that he has traveled to 74 nations. In the past, Bush has re- fused to talk about the details of his advice to the president or tne cisions he influenced. DP91-00901R000100010001-8 By David Hoffman Washington Post Staff Writer VAN HORNE, Iowa?Vice Pres- ident Bush unveiled a new stump speech here last week featuring his life story, from captain of the col- lege baseball team to war hero, businessman, politician, diplomat and loyal vice president to Ronald Reagan. Bush appears to have set aside for a while the task of articulating his "vision" for the nation and in- stead is making an unabashedly per- sonal sales pitch that his long and varied resume shows that he would make a good president. "I think the American people are going to be looking for experience," he said in opening a series of "Ask George Bush" town-meeting style forums in Iowa last week. "Everything I've done in my life has equated with leadership," he said, "whether it was starting way back in college as captain of our almost national-championship base- ball team right up to being, the only survivor left on the playing field when Ronald Reagan bowled us all over in 1980." Bush said he has "experience that not one single candidate, Republi- can or Democrat, has ever had run- ning for president over the last election, certainly this time, and I really mean it." The vice president's political strategists have frequently said one of his strong suits is a "stature ad- vantage" over other candidates, referring .to his many jobs in gov- ernment and politics. The Iran-contra affair may have clouded this approach somewhat. While Bush has stressed his foreign policy experience, he appears to have acquiesced in one of Reagan's biggest foreign policy blunders, the Iran arms sales, and questions have been raised about the role of two of his aides in helping the secret re- supply missions for the Nicaraguan rebels. As with Reagan, the scandal has left lingering public , doubts, about whether Bush is telling the truth about the Iran story, according to the latest Washington Post-ABC News poll. Of those questioned in the June 25-29 telephone survey, 52 percent said Bush is not telling the truth, compared with 38 per- cent who said he is. In January, 43 percent said he is not and 45 per- cent said he is. Bush described the Iran arms sales as a "big mistake that was wrong" when asked about it last week, and he insisted that he and Reagan did not know of the diver- sion of money to the contras. Earlier this year, as his presiden- tial campaigning began to intensify, Bush gingerly tried at a series of college commencement addresses to start defining his vision for the nation in the years after the Reagan presidency. Now, he says he will wait until after his formal announce- ment in the fall to offer a detailed program. Instead, he is advertising his resume. "It starts with a war record," Bush said. "You don't have to have been in combat, as I was, shot down two months after my 20th birthday, but it helps. You have to make de- cisions about war and peace, com- mitting somebody else's kids. . . to war perhaps, it helps if you've been there yourself, seen your friends die, and I have. I'll lay that out proudly as something that height- ens my convictions about strong Approved OfftlaggysilibiY#191)34! -R w more about it t an - 7 IA E r: E L_ L_ E_ ? E; AT-INTL Approved For Release 2006/01/03 : CIA-RDP91-00901R000100010 - JUN Ii) ,\IGION POST Buil' Says He Led A CIA Weakened by 'Untutored SquVA cEntievang tut we Vice President Bush attempted to flu conaervattre muscle, but his comments could backfire. Built, According to The New York Times, boasted to a CCP audience that he was director of the 4at a very dtMoult time. I there when it had been demoralized by the attacks of. a bunch of little untutored seWrts from Capitol Hill, going_ _out there, looking at these =Van- tlai documents lvithout one elm. pie lota of Concern for the legit- bite national security interests of this country. And I stood up for the CIA then, and I staild for It now. And defend it So !et the liberals wan their hands and consider it a liability; I cone eider it a strength.' Bush's remarks - seemed dearly directed at the acttvitlea of the Senate select committee that investigated the CM, known as the Church Commit- tee for its chairmsn, the late meta Ptak Church (D- Idaho). In 19/5 the penal issued a report highly critical . of the CIA. The report was endorsed by such consit1tt4 'members al Republicans Chiries ma Ma. thLis Jr., CM.). and Richard S. Schweiker (Ps.), President Rea- sta's first secretary of health and human services. White HOGS chief of staff Howard H. Beimthen a committee member, ;aid, Me abuses (un- covered by the ?ommitteel can- not be condoned. and should hal, been investigated long Asked whether that 'bunch of little *acted squirts' included Baker; While and Schweiker. a Bush aide reported that the aim provident 'was referring to committee staffers and not to member. of Oxigrems." 1117 Approved For Release 2006/01/03 : CIA-RDP91-00901R0001000100Q YL STAT STAT STAT ARTICLE AP pin Relea4 A:heg0144337: CIA-RDP91-00901R000100 Nation New Look at an Old Failure 010001-8 An ex-CIA historian fights to air his version of the Bay of Pigs As the nation picks through the wreckage of the Iran- contra affair for lessons, a dis- pute is brewing within the in- telligence community that could throw new light on the granddaddy of all covert-ac- tion fiascos: the Bay of Pigs. 0 the CIA's former chief histori- an, Jack Pfeiffer, Es suing to force the release of his de- Historian Pfeiffer tailed and still classified stud- . ies on the invasion, which challenge the conventional historical wisdom about why it failed. Previous historians have tended to place most of the blame on the CIA's depu- ty director for planning, Richard Bissell. His penchant for secrecy, they say. led him to keep the agency's intelligence divi- sion and other military analysts pretty much in the dark, thus resulting in a poor assessment of the risks involved. Indeed, a still secret case study prepared for the Tower commission, one of a series that sought to compare previous covert activi- ties with the Iran-contra affair, also attri- butes the Bay of Pigs failure to excessive secrecy of CIA planners and lack of ade- quate review by intelligence experts. In fact, Pfeiffer argues. a series of meetings and memos shows that senior officials of the CIA's intelligence division and Pentagon planners were briefed at all stages of the discussion. According to Pfeiffer, the conventional view casting Bissell as the villain of the tale is reflected [ n a damning report by the CIA's inspector eneral at the time.1_.y. man Kirkearjgji. Although Kirkpatrick, 70, who resigned from the CIA in 1965, ordered the destruc- tion of all the records on which his report was based. Pfeiffer managed to uncover the material. He says it led him to con- clude that Kirkpatrick had deliberately skewed the report to discredit Bissell, who was his rival for the position of CIA director. Kirkpatrick defends his original as- sessment. "Bissell was running it [with a group' that was cut off from everyone who should have assessed the plan." Denying that his con- clusions were based on per- sonal rivalry. Kirkpatrick ar- gues. "Bissell and I were friends." Bissell, 77, who was eased out of the agency in 1962 and until now has never publicly defended his role, comments dryly, "That's not the case." In his view, and that of Historian Pfeiffer, the reason that the Bay of Pigs failed was not because the machin- ery of Government was short-circuited. Rather, it was a case in which the entire system worked the way it was supposed to--and produced a fiasco. The newly elected President, John Kennedy, was adamant about not involv- ing American forces. Indeed, he insisted on hiding any evidence of American sup- port for the exile army. For that reason the White House decided to cancel crucial air strikes and change the site of the land- ing from the town of Trinidad, at the foot of the central mountains, to the quieter venue of the Bay of Pigs. It was these deci- sions. Pfeiffer argues, rather than a faulty process of consultations, that doomed the operation from the start. The Navy was ready in case Kennedy decided to lift his ban on direct U.S. in- volvement. Bissell revealed in his inter- view with TIME. As the Cuban exiles went ashore that moonless night in April 1961, a force of about 1,500 Marines waited on a ship near the coast. Admiral Arleigh Burke, Chief of Naval Operations at the time, confirms this previously unreported deployment. The Marines were "avail- able," says Burke. now 85. "These things are just a general military precaution." After 25 years, Pfeiffer thinks it is time for his own studies of the fiasco to be made public. "Kirkpatrick's order to destroy the documents was outrageous." he commented last week. "What's to say the CIA's records on the Iran contra matter won't disappear the sam way?" ?ByJayPeterzelI/WashIngtoi Approved For Release 2006/01/03 : CIA-RDP91-00901R000100010001-8 STATINTL STAT STAT ARTICLE APPF4.D NEW YORK POST ON W196'PjrRelean 2s(46/qmpi3 : CIA-RDP91-00901R00010 MEMO. LINKS BOSH STAFF. TO IRANSCAM By ELI TIMBER, Post Correspondent - ASHINGTON ? A politically explosive memo suggest- ing that Vice President George Bush% taff knew about ranscam" last summer was re ease by congressional robers yesterday. The stunning memo ? telling of profits from secret Iran arms les being diverted to the Nicaraguan, rebels known as contras emerged during scheme officially de- uestioning of for- -,;e44- scribed by the White mer CIA agent ...,....A.4. House as a renegade Felb_rag_tOdUM91,7i operation. guez met with. It also draws Bush nald Gre Bush's deeper into the Iran- o sec ty ad- scam morass ? which r, last August. cogid damage, his In his notes on the , ,.:;.4 presidential campaign. meeting, Gregg wrote: Bush's offise refused 'A swap of weapons to coznn2ent on the for $ was arranged to revelations but sug- get aid for contras. gested that testimony and Gen. 8e- "may yet be contra- cord tied in." (The. dieted or modified by memo just used a del- later testimony." lar sign.) GIORGI BUSH Rodrigues, who The meeting was top aide "knew." nerved as Iffi Salvador' held more than threeliaison for the private months before Atter- chronology of Bush's contra supply pipeline, ney General Edwin Iranscam role would said he wanted to tell Meese publicly dis- be "flatly contradict- , Gregg of his suspicions closed the contra- ed" by Rodriguez. that the operation wail Iran arms connection. Gregg's notes are overcharging the con- The poet reported the strongest hint yet Was and that key May 15 that a key part that one of Bush's top players were linked to of Greor's official aides was ?oware of a jailed- cm renegade Edwin Wilson. But he denied dis- cussing any links to an arms swap with Gregg and could not explain how it ended up in an account of their conversation. Meanwhile, Lewis Tombs, former 'U.& ambassador to Costa Rica, testified that he - aided- "privide pa- triotic Americans" ,in Approved For Release 2006/01/03 : CIA-RD Mg% icaraguan border. 10001-8 STATINTL Approved For Release 20 ARTICLE Q6/010.L3 ? CIA-RDP91-00901R0001nnn1onQ1-8 G UN 1ME APP' RED WASHIN ON PAGE 28 May 1987 Agent quotes "ANorth's boast of protection by president By Mary Belcher THE WASHINGTON TIMES STAT Lt. Col. Oliver North once bragged that President Reagan was protecting him from Congress, a former IA a ent involved in secret su .1 missions to the STAT n ras testi ester ? F,...'sgzagagignez, who was a contact -between private Contra suppliers and officials at Ilopango Air Base in El Salvador, also told the congressional Iran-Contra inves- tigative committee that he met with Vice President George Bush twice in 1986. But he denied having dis- cussed the secret missions with the vice president. Mr. Rodriguez, a Cuban expatriate who also went by the name Max Gomez, told the panel he expressed to Col. North in June 1986 his concerns about shoddy equip- ment and overpriced weapons being supplied to the Contras by retired Air Force Maj. Gen. Richard Secord. At that meeting in t ld Execu- tive Office Minding, MiRodriguez said he warned Col. Nor that "it's going to be worse than tergate" if the Secord operation was exposed. Col. North, who was unreceptive to the former agent's concerns, later pointed to a televised congressional debate on Contra aid and said, "Those people want me, but they cannot touch me because the old man loves my ass," Mr. Rodriguez testified. Col. North, who was fired from the National Security Council staff last November when the Iran-Contra affair was exposed, was the subject of congressional scrutiny in 1985 and 1986, when reports of his pro- Contra activities continued to sur- face during a two-year ban on U.S. aid. Mr. Rodriguez met wit,p at the White House in May 1986, after telling Col. North he wanted out of the Contra supply operation. During the meeting with the vice president, Mr. Rodriguez said, he de- cided not to abandon his position as the liaison to Salvadoran officials. But Mr. Rodriguez said he did not discuss with Mr. Bush the private supply missions. Instead, he said, he showed the vice president pictures of a helicopter operation he was per- forming to help El Salvador rout communist guerrillas. He met with Mr Bush in Miami later in May for a photo-taking ses- sion with his family, Mr. Rodriguez said. He also described several encoun- ters with longtime friend.p.maisL Gre , the vice president's national un y adviser. At an August 1986 meeting in Washington, Mr. Rodri- guez told Mr. Gregg the Secord op- eration was charging the Contras $9 for $3 hand grenades and that the equipment being used for supply missions was in disrepair. He also expressed concern that Col. North had fallen in with bad company ? namely Secord associ- ate Thomas Clines; who had been in- voldra?Olth convicted arms dealer Edwin Wilson. Mr. Rodriguez' ties to the vice president's office were troublesome to the Secord operation, according to yesterday morning's testimony by retired Air Force Col. Robert Dut- ton, who between May and Novem- ber 1986 oversaw Contra supply mis- sions out of El Salvador for Gen. Secord. When the Southern Air ltansport plane carrying Eugene Hasenfus was shot down in Nicaragua in early October 1986, Mr. Rodriguez pro- vided the vice president's office with the wrong names of the four fatali- ties in the crash, Col. Dutton told the Iran-Contra panel. Rodriguez, who had fought communist opponents around the world as a_CIA agent since 1960. be- came involved in a power struggle with Col Dutton for control of the Contra supply operation. It peaked in late August 1986, when Mr. Rodri- guez apparently pirated a Secord- owned plane from Miami to El Sal- vador, intending to start his own supply missions. "He didn't want to work for any- body;' Col. Dutton testified. Also, he said, Mr. Rodriguez did little to soothe the often "touchy" re- lations between Ilopango Air Base officials and the Secord operation. Air base officials frequently locked the gate to the runway so that supply crews could not even reach the air- craft. Col. Dutton said he refused Mr. Rodriguez' requests for a $10,000 emergency fund and control of a $50,000 airplane-fuel fund. In June 1986, Col. North called Mr. Rodriguez and Col. Dutton to his White House office, where he tried to rein in Mr. Rodriguez and explain to him his role as a "host liaison" for the supply mission. Col. North also chastised Mr. Rodriguez for using an unsecure phone line to discuss the operation. After meeting with Col. North, STATINTL Mr. Rodriguez was accompanied by Col. Dutton to see Samuel Watson in the vice president's office. Mr. iNat- son, an aide to Mr. Gregg, and Mr. Rodriguez privately discussed his counterinsurgency efforts in El Sal- vador, according to Mr. Rodriguez. Col. Dutton, who has been granted immunity from prosecution by inde- pendent counsel Lawrence Walsh and limited immunity by the Iran- Contra Committee, discussed the day-to-day operations of the Contra supply effort. He said he received $5,000 a month from Gen. Secord's firm, Stanford Technology Trading Group International in Virginia. In one unusual incident, he said, a Secord secretary, Shirley Napier, was sent to Miami to pick up a pack- age at Southern Air gransport. He said Miss Napier delivered the pack- age to Col. North's secretary, Fawn Hall, at the White House. Col. Dutton, who could not recall the date of Miss Napier's trip to Mi- ami, said he did not know until she returned to Washington that she had picked up and delivered $16,000 in cash. He said he learned what the package contained because she signed a receipt for its contents in Miami. He told the committee Gen. Secord assured him that the opera- tion was legal, as long as no Amer- ican troops were transported to Nicaragua by the private air mis- sidns. Col. Duttori, a veteran of covert operations during his 26 years in the Air Force, said he regarded Col. North and Gen. Secord as co- commanders in the Contra supply effort. Col. North had "very broad con- tact at the highest levels," Col. Dut- ton said. He said Col. North appar- ently had contacted Attorney General Edwin Meese III to post- pone federal investigations in Miami of Southern Air Transport, which was being used for both the Contra missions and to ship U.S. weapons to Iran. . He said_ Col. North referred to then-CIA Director WilliamSasev asygi And, according to Col. Dutton, Col. North told him: "Bob, you're never going to get a medal for this, but some day the president will shake your hand and thank you." After repeated trials and tribulations, airlift missions to the Contras' southern front finally be- came regular in September 1986, Col. Dutton testified. rIeiraeff Approved For Release 2006/01/03: CIA-RDP91-00901R000100010001-8 Approved For Release 2006/01/03 : CIA-RDP91-00901R000100010001-8 ,Congress had approved $100 mil- - I! i I. I 11,. ,ain flowing in October 1986. and the Secord operation was contem lating ,e I s - lifts,he recalled. He denied that he had proposed that the CIA buy the operation for about $4 million, although Gen. Secord testified four weeks ago that such an option had been suggested by the colonel. Col. Dutton also told the commit- tee he had prepared a photo album of the operation ? with snapshots of where supplies had been dropped and the four planes that were used ? and presented it to Col. North, who said he would "show it to the top boss." In a day of often-drab testimony, an FBI agent assigned to the inde- pendent counsel's office appeared behind Col. Dutton and handed him the photo album. Col. Dutton flipped through the laminated pages bear- ing colored photos, commenting that it had been dirtied with what ap- peared to be fingerprint powder. Briefly describing a trip to Beirut in November 1986, Col. Dutton shed new light on what American hos- tages knew about the shipment of arms to Iran. Before a five-hour debriefing of then-newly released hostage David Jacobsen, Col. Dutton said the White House expected two more hostages to be released as well. "In de- briefing, David told us from his in- formation, he didn't believe that we would get the other two {hostages] until another 'arms] shipment was made," Col. Dutton testified. Approved For Release 2006/01/03 : CIA-RDP91-00901R000100010001-8 y ARTICLE= Approved For Release 2019E91flpit9apP91-00901R00 ON PAGE 25 May 1987 The strategic planning of the Iran-contra operat 0100010001-8 OLLIE'S BLUEPRINT BY JEFFERSON MORLEY THE mosT interesting question of the Iran-contra al - fair is not how high the official misdeeds went but how low. The active involvement of President Reagan is now apparent. The Tower Commission documented how his closest aides received presidential direction on even small details of the Iranian arms deal. The guilty plea of Carl "Spitz" Channell, a right-wing fund-raiser, also im- plicates the president. Channell brought wealthy donors to meet with Reagan in the Oval Office. Reagan denies knowing what the money would be used for. But Oliver North wrote to John Poindexter in May 1986 that "the president obviously knows why he has been meeting with several select people to thank them for their 'support for Democracy' in Cent[ral] Am[erical." Much less obvious is how the Reagan administration managed to execute the clandestine foreign policies that Congress had specifically forbidden. How did the adminis- tration enlist so many people in the arms-for-hostages deal and the secret contra war, and how did it coordinate their far-flung activities? If only logistically, these operations were impressive. Thus far Congress and the media have tried three differ- ent theories of how the scandal happened. The first was that North and other National Security Council "cow- boys" were "out of control." This theory has been dis- carded as it has become clear that North kept his superiors well-informed of his adventures. The second is that the NSC staff was "inept." The problem with this theory is that for all their alleged ineptitude the White House ran a full-scale multimillion-dollar guerrilla war in defiance of an explicit congressional prohibition. A third possibility is now beginning to dawn on the Washington press corps. "Did the president and a few trusted advisers operate in a calculated manner outside the law and their own regula- tions . . . ?" the Washington Post asked on the eve of the congressional hearings. The president did, and he had the help not merely of "a few trusted advisers" but of dozens of administration offi- cials. As early as March 1983?a full year before most press accounts say the scandal began?administration officials were devising the strategies that would be used in both the Iranian arms deal and the contra war. Moreover, they did so publicly and in accordance with Reagan's ideology. One example of such strategic planning was a conference on "Special Operations in U.S. Strategy" held in Washington on March 4 and 5, 1983. The stated purpose of the conference was "to focus attention on a larger potential role for special operations in Approved For Release 2006/01/03 : CIA-RDP91-00901R0001000 00 1-8 STAT I NT L the 1980s." It was sponsored by a non-partisan think tank called the National Strategy Information Center, by Georgetown University, and by the National Defense Uni- versity. In attendance were about 125 military officers, intelligence agents, Reagan administration officials, Penta_ gon consultants, and conservative journalists. An obscure major from the staff of the National Security Council named Oliver North was in the audience. The national security bureaucrats who attended this gathering hammered out in fairly precise detail many of the different strategies Oliver North later used to execute Pres- ident Reagan's clandestine foreign policies between 1983 and 1986. The conference was no secret: an edited version of the proceedings was published by the government. Thus while reporters scramble for high-level sources and sena- tors grill witnesses, a blueprint for the scandal entitled Spe- cial Operations in US. Strategy (now in its second printing) is available for $4.25 from the Government Printing Office. Special operations were a staple in the Reagan military buildup. Such operations, in the words of one speaker at the conference, are "small-scale, clandestine, covert or overt operations of an unorthodox and frequently high-risk na- ture, undertaken to achieve significant political or military objectives in support of foreign policy." The administration has nearly doubled spending on U.S. Special Forces, the military unit specifically designed for special operations. While this buildup was applauded by the conference par- ticipants, it was seen as only a first step toward effectively integrating special operations into U.S. foreign policy. It is no surprise that North was interested. He reportedly conducted special operations in Vietnam and earned sever- al medals, before being relieved of his duties for emotional distress. He returned to active duty and in 1981 was ap- pointed to the NSC (the hospitalization having been purged from his file), where he would become deputy director of "political-military affairs." The prevailing tone of the conference was also no doubt congenial to North. In his portentous keynote address, Secretary of the Army John 0. Marsh Jr. declared, "The die for our society may well be cast within the next few years. . . The Visigoth and the Vandal are with us yet." Sound familiar? Sure: this is just how 011ie North talks. The timing of the conference was important too. In March 1983 the administration was in the throes of over- hauling its Central America military policy. That month the U.S. ambassador to the United Nations, Jeane Kirkpat- rick, returned from a trip to the region and declared that it was "in crisis." Two years of Rea/an 63olicy in Central Continuef Approved For Release 2006/01/03: CIA-RDP91-00901R000100010001-8 America had not made much progress. In Nicaragua, the contras were not going to topple the Sandinistas by the summer of 1983 CIA officials had predicted1,2nd in El Salvador, the armed forces were killing thousands of civil- ians but still losing ground to leftist insurgents. The administration's first step in solving the problem was the creation of the Kissinger Commission in June 1983, which President Reagan described as "a means of building a national consensus on a comprehensive United States policy for the region." Militarily, policy-makers wanted to increase aid to the contras and embark on what the Kissinger Commission called an "enlightened coun- terinsurgency campaign" in El Salvador. But the bigger problem was political. The administration needed to overcome substantial and persistent public reluctance to become militarily involved. The special operations conference was based on the premise that the military methods had to be tailored to the political realities of the 1980s. In the words of the confer- ence organizers, "an untutored American public" showed "little enthusiasm for unconventional acts in time of 'for- mal peace.' "As a result, they said, "The United States must develop diverse and even novel ways to defend its econom- ic and geopolitical interests when these are affected by un- conventional conflicts, especially in the Third World." The discussion of these strategies took two forms at the conference. The first was a replay of the long-standing "hearts and minds" debate among U.S. military strategists. The second debate concerned the difficulties of conducting special operations within the constraints of U.S. public opinion. Edward Luttwak, a civilian strategist and Pentagon con- sultant on Central America, thought the desire to win hearts and minds distracted from military goals. He ex- pressed admiration for the single-mindedness of the armed forces of Guatemala. "Even a bad army can win a guerrilla war," Luttwak observed, "if it uses the appropriate tactics and methods systematically." At the time, the Guatemalan army's tactics (according to the 'Organization of American States) included "the destruction, burning, and plundering of entire campesino villages." Douglas Blaufarb, clffisio,1_, disagreed with Luttwak's thesis. "To destroy homes and property, to kill and maim the civilian popula- tion is counterproductive," he suggested. Excessive brutal- ity, Blaufarb suggested, was why "the results of our securi- ty assistance continue to disappoint us" in El Salvador. (Luttwak said the problem in El Salvador was just the opposite: insufficient "determination to win.") The second, more extensive and more interesting discus- sion concerned how to deal with North American hearts and minds. It was launched by William V O'Brien, identi- fied as a professor of government at Georgetown Universi- ty, in his lecture on "Special Operations in the 1980s: Amer- ican Moral, Legal, Political, and Cultural Constraints." Over the course of the conference, O'Brien and others ap- plauded the administration's efforts to coax the public and the Pentagon out of their post-Vietnam reluctance to inter- vene militarily. But most of the participants were pessimis- Approved For Release 2006/01/03 tic that such efforts would succeed. Theodore Shackley, an- other former high-ranking CIA official, noted that "an innate dislike for special operations by the mainstream of American political life will, perforce, limit Washington to a defensive mode in considering irregular warfare options." AROUGH CONSENSUS was reached on the need to proceed quietly. A retired British officer suggested that if public opinion could not be won over, elite opinion might be. "The concept of special operations as required today must be marketed and sold?in a subtle way per- haps?to generals, admirals, Cabinet members, congress- men, and ambassadors," he said. Blaufarb recommended that any initiative to upgrade and consolidate special oper- ations "should be kept low-key, with a minimum of fan- fare." Blaufarb noted that "as program proposals emerge, the question of funding would certainly come to the fore" but suggested that "the relatively modest amounts in- volved" would not arouse public ire. With such an organi- zation in place, pre-emptive special operations could win public approval after the fact. "It is a hard, but true, fact of life," Professor O'Brien noted, "that success overcomes a lot of moral, legal, political, and cultural scruples." Marsh himself suggested one Reagartesque way to tran- scend what he delicately described as the "limitations of our current defense structure." He proposed transferring some of the tasks of special operations to the private sector. (As one right-wing analyst with a knack for self-parody describes it, "Privatizing the Reagan Doctrine.") Marsh cited "economic, political, and psychological warfare" in particular. "This is an enormous area in which private sector resources can be used," he said. By common consent, the top priority was to create what Roger M. Pezzelle, a former aide to the Joint Chiefs of Staff, called "a joint special operations organization at the national level." Shackley envisioned "a special element of government dedicated to the multiple tasks of counterin- surgency, guerrilla warfare, and anti-terrorist operations." He said it "might bring a fresh and dynamic approach to these pressing needs." Many participants, though, argued that rivalries be- tween the Pentagon, State Department, intelligence com- munity, and other agencies would probably kill any formal initiative. There had to be a new bureaucratic nerve center. John Norton Moore, identified as a law professor from the University of Virginia, argued for "improved control mechanisms. . . at levels above those of the armed forces." Blaufarb made Moore's implication explicit by saying that the only special operations command with the "necessary authority" to overcome bureaucratic rivalries and Penta- gon resistance "probably would have to be located in the White House staff, which means the National Security Council." He added that "unless the highest authority, namely the president, gives his strong support" the ven- ture would probably fail. In the final discussion of the conference, devoted to "or- ganizational strategy," participants developed the concept. Kenneth Bergquist, a deputy assistant secretary of the : CIA-R0P91-00901R000100010001-8 2. Approved For Release 2006/01/03 : CIA-RDP91-00901R000100010001-8 Army, said that special operations commanders "should work within the system?if necessary by expanding the size and resources of the NSC." Sam Sarkesian, a political scientist, stressed that whatever reforms were adopted, one task was essential: "To devise an organizational strategy that is linked to the existing system, but one that provides enough freedom of maneuver for developing flexible and imaginative responses." Sarkesian and Bergquist agreed that unconventional tac- tics had to be used not only against America's adversaries but on the American political system itself. Sarkesian said that if the existing structure of the NSC could not be changed, he would favor "the gadfly approach?the inser- tion of specialists within the existing system to goad and pressure those in command to make the right decisions." Bergquist agreed. By "using special operations techniques on the system, the system could probably be made to work," he said. During this discussion, someone identified as a member of the NSC staff, probably North himself, spoke up. The conference proceedings state: "Citing his own experience with the National Security Council and its small staff, he saw the latter as incapable?even with strong support from the president?of doing more than setting broad policy and issue decision documents." Specifically, this NSC staff member said, "Serious coordination of the myriad intelli- gence agencies and State and Defense department compo- nents is beyond their [the NSC staffers] capability." He added his view that any new unified special operations command had to include psychological operations and psychological warfare. It is not absolutely certain that the speaker was North (there was one other NSC staff member present), but it certainly sounds like him, especially given North's fondness for psychological operations. IT IS CERTAIN that by 1983 North was gaining influence on the administration's Central America policy. In the summer of 1983 North accompanied the Kissinger Com- mission on its tour of Central America. (In Nicaragua North quipped that he was the advance man for the U.S. invasion.) In October 1983 North gained prestige for his still-shadowy role in the invasion of Grenada. And in December 1983 North accompanied Vice President Bush on an important mission to El Salvador. By early 1984 North had reportedly sent national security adviser Robert McFarlane a memo proposing the creation of a private aid network for the con- tras. According to Associated Press reporters Robert Parry and Brian Barger, McFarlane then orally briefed Reagan on the plan and Reagan approved. By late 1984 something re- sembling "a joint special operations organization at the na- tional level" was functioning and under North's control. North's synthesis of the ideas presented at the confer- ence was at once obvious and ingenious (although the participants had not advocated that U.S. law be broken). North combined "private sector resources" (as Marsh suggested) with a "gadfly" network "to goad and pres- sure" the State Department, Pentagon, and intelligence community (as Sarkliqixtrrpraptifecb): Edema),Ilia0161011103 to effectively expand "the size and the resources" of the NSC staff (as Bergquist suggested) and still keep the whole operation "low-key" (as Blaufarb urged). When "the question of funding came to the fore," (as Blaufarb predicted), North avoided the controversy of using gov- ernment funds by diverting the profits of the Iran arms deal into the contra operation. In Shackley's prescription cum description, North's ?:.p- eration was "dedicated to the multiple tasks of counter- insurgency, guerrilla warfare, and anti-terrorist opera- tions." North was attempting to direct the "enlightened counterinsurgency effort" in El Salvador, to assist the contras in their guerrilla war, and to conduct anti-terrorist operations in the Middle East. INDEED, Shackley, Sarkesian, and Luttwak seem to have been part of the "special element" that was "linked to the existing system." Shackley is a legendary figure who ran the CIA's covert war in Laos in the mid- 1960s. While there he met Richard Secord, North's right- hand man in setting up the Iran arms deal and the secret contra network. Ousted from the CIA during the Carte! )Tars, Shackley has since been involved in shady dealings in the Middle East. No surprise, then, that the Tower Commission discovered that the first person to put the NSC in contact with Iranians interested in dealing arms for hostages in late 1984 was one Theodore Shackley. Luttwak and Sarkesian also worked closely with North and other gadflies who wanted to prod the bureaucracy to execute the clandestine policy. The two consultants were named to a seven-member panel (which included at least three other close friends of North's) on a top-secret mis- sion to El Salvador in August 1984. The panel produced a classified seven-page report that is reportedly highly criti- cal of the Pentagon's unimaginative tactics. Through Carl Channell, North tapped "private sector resources" to buy weapons for the contras. North also used his private aid to wage "political and psychological war- fare," as Marsh had recommended. He relied on Channell to produce television ads attacking the foes of aid to the contras. (The "untutored public" didn't learn its lesson: almost all of the contra opponents targeted by Channel were re-elected.) More effective was North's funding of moderate Nicaraguan opposition politicians and Washing- ton policy intellectuals who could articulate the case for administration policy among the capital elite. In this way, the idea of North's special operation command was, as the British gentleman urged, "marketed and sold?in a subtle way perhaps" to a Washington elite that had previously deferred to public opinion. And the ingredient that made it possible to wage a secret war and sell arms to the Iranians was "the White House leadership" that Blaufarb, Sarkesian, and others recog- nized was so important. This was the ultimate improve- ment in "control mechanisms . . . at levels above those of the armed forces." The professor of government had it right: "success" overcame a lot of moral, legal, cultural, and 411)1i?ADIRS1100901 R000100010001-8 3 Approved For Release 2006/01/03 : CIA-RDP91-00901R000100010001-8 UNITED PRESS INTERNATIONAL 21 May 1987 Bush: strong covert capabilities are "absolutely essential " By SEENA D. GRESSIN FIW YORK Vice President George Bush warned Thursday against weakening the nation's covert capabilities, calling effective intelligence operations 'absolutely essential" to the country's survival. While not specifically mentioning the Iran arms-Contra scandal, the vice president and former head of the CIA noted covert operations have increasingly come under fire. He said such activities must be within legal bounds but that the ability to carry out secret operations should strengthened rather than weakened. "A strong intelligence capability, second to none, is absolutely essential to the survival of the United States," he said. "We must not decimate the front line and that is the intelligence community." Speaking at a fundraiser for his bid for the 1988 Republican nomination, Bush noted no incumbent vice president has successfully run for president since Martin Van Buren in 1782, largely becase the vice president is "stripped to some degree of his own identity." However, he sought to assure 850 supporters at the $1,000-a-plate luncheon at the Waldorf-Astoria Hotel that "myths are made to be broken" and that while he will remain loyal to President Reagan, he also will set his own agenda once he formally becomes a candidate. ''The agenda is there and I will establish my Own priorities based on experience and based on conviction,' he said. Among top priorities will be support for education, which he called the "best poverty program," the battle against AIDS, creation of new jobs and efforts to eliminate all chemical weapons and reduce nuclear arsenals. On jobs, Bush said, "I don't think there are any radical new answers" but "I think it's essential to hold the line on taxes," as part of policies to encourage the economy. On AIDS, Bush said the United States must lead the battle against the deadly disease. "It's going to mean more federal money for research, it's going to mean more education," he said. "Not that the family values or the church values or the neighborhood values have to be eroded out but it means using the White House as a bully pulpit to help educate, not just in the United States but around the world." The event raised at least $875,000, bringing Bush's campaign warchest to more than $6 million, said Fred Bush, deputy finance chairman for the campaign and unrelated to the vice president. Approved For Release 2006/01/03 : CIA-RDP91-00901R000100010001-8 Approved For Release 2006/01/03 : CIA-RDP91-00901R000100010001-8 The event marked the debut of a giant model of the front of the White House, complete with foliage, covering the stage of the Waldorf-Astoria's grand ballroom. Fred Bush said the Bush campaign "wanted to make an especially good Impression here and we wanted to give New York a special look," and so decided to bring the model at a cost of $6,000. The campaign has already held some 30 major fundraisers this year and expects to hold about BO by year's end but the New York event was one of the largest planned, he said. Approved For Release 2006/01/03 : CIA-RDP91-00901R000100010001-8 BTAT STAT opuottlApp roved For RIII&E.eAM/96RA-RDP91-00901R0001000100 15 May 1987 CX PASLAI Push's Office Revises Rodriguez Chronology :Vice President's Staff Says Aide Met Last June With Contra Resupply Operative By David Hoffman vtudiington Pest Staff Writer The office of Vice President Bush ailed to report on a meeting last une between one of Bush'?_pational . jvjis and Felix 1. Rod- iguez, a=e_thcaraguall_n die secret esu contras. Bush has maintained he provided 'full disclosurend_hia_ancLhis_xtafes contacts with Rodriguez, a former rks3Ifici.Ta ,- in a chronologyjmued $jc. 1This is the second time the Bush staff has acknowl- edged that the chronology was in- complete. Bush has repeatedly said that his Office was not directing or coordinat- ing the resupply missions, which oc- curred at a time when Congress had it off military aid to the contras. Bush's counsel, C. Boyden Gray, disclosed that the December chro- nology omitted mention of a meet- ing between Rodriguez and Army Col. Samuel J. Watson, deputy na- tional security adviser to Bush. The meeting occurred June 25 in Wat- son's office in the Old Executive Office Building. Gray said the meeting was over- looked because it was recorded in Watson's personal files and was not on his official daily schedule. Gray said Rodriguez was accom- panied to the office by retired Air Force colonel Robert Dutton, who worked on the resupply missions with retired Air Force major gen- eral Richard V. Secord and National Security Council aide Lt. Col. Oliver L. North, who was fired in Novem- ber. Dutton did not participate in the 20-minute meeting with Rod- riguez and Watson, Gray said. Rod- riguez and Dutton came to the of- fice, however, after meeting with North elsewhere in the White House complex, another source said. Bush's ,pational security adviser, Donald P. Gregg, has maintained that he and his staff did not discuss ?with Rodriguez the secret resupply mission for the contras until last Aug. 8. Gregg has said that numer- ous contacts with Rodrigues con- cerned his activities helping the El Salvadoran Air Force conduct coun- terinsurgency raids _gainst leftist guerrillas. Rodriguez, a longtime friend of Gregg who served with him in Viet- nam, had been sent to El Salvador with the recommendation of Gregg and Bush to help fight the Salvador- an insurgency. However, according to a letter recently made public, Rodriguez was secretly recruited in September 1985 by North to help him set up the resupply missions at the same time, working from the Salvadoran Air Force base at Ilo- pango. When one of the resupply planes crashed over Nicaragua last Octo- ber, the first word came from Rod- riguez to Watson, according to the Bush chronology. Gray said yesterday that Watson maintains that the omitted June 25 meeting was about counterinsur- gency in El Salvador, not about the contras. However, Watson has no notes or documents to verify what was said. Rather, he turned over to investigators a pocket-size card showing his schedule for the day in which he noted in handwriting, "1:30?Felix." Ina written statement, Gray said Approved For Release 2006/01/03 : CIA-RDP91-00 a search of Bush's files shows that the vice president never talked about the contras with Rodriguez. Bush met Rodriguez three times in 1985 and 1986. The statement also said Gregg was "never involved" in "directing, coordinating or approv- ing military aid to the contras in Nicaragua." Gray also said that the vice pres- ident was unaware of the omitted June 25 meeting. Gregg has acknolwedged that his friend Rodriguez came to him last Aug. 8 to tell him of problems in the resupply operation and that, in re- sponse, Gregg convened a meeting of administration officials in his of- fice four days later. Gray said yesterday that Rodri- guez and Watson talked about the Salvadoran military's need for hel- icopter parts from the United States, a subject that, according to the chronology, they also discussed on April 30. Gray said Gregg was in Jordan at the time of the June visit and that the vice president did not see Rod- riguez then. Secord had made a ref- erence to a possible meeting with Bush in his testimony last week. After the chronolgy was issued Dec. 15, Bush aides admitted thatiV omitted two trips that Watson made to contra training camps in Hondik , ras. Gregg initially denied to reporti ers that he ever talked about the contras with Rodriguez, also know as Max Gomez. "The only thing thaf I talked to Max about was his Int volvement in the insurgency insja Salvador," Gregg said then. He l? er acknowledged talking with RcKir riguez about the contras. The vice president has defended Gregg and said he was "not in the least bit troubled" by his aide's no. tions. However, some other Bush adr. visers have pressed for Gregif,s resignation. Gregg has said Jae twice offered to resign but has sinc0 decided not to because it would' cause Bush more harm than good. Other officials have said that Bu4 rots s rIttf(Ilia call. fir comment3,t-b Approved For Release 2006C4OidfilittliF'91-00901R0001 14 May 1987 ARTICLEAPPZED R OH PAL__-" Bush readies his obligatory bio GEORGE Bush will have his autobiography on bookstore shelves by September, in plenty of time to woo voters for the '88 race. The book, from Doubleday, will no doubt also give his version of Iranscam, which Is threatening to damage his political standing. "There will be some new revelations," a publishing source told PAGE SIX. "But this isn't a David Stockman book. Because he's still in office, there are obviously some things he can't say." For instance, the source said, to get George's feelings about Ronald Reagan "you have to read between the lines." The book was originally contracted for 10 years ago, after Bush quit as director of the CIA. Since he was a friend of Nelson Doubleday, the house didn't pressure him to deliver anything and he finally got down to work ? with the help of journalist Victor Gold ? in 1985. Doubleday won't say what it paid to get his typewriter cranked up. But the Los An- geles Times reports that his contract was renegotiated, with the VP pledging his earnings from it to leukemia research (he lost a daughter to the disease) and the United Negro College Fund. "Looking For- ward," as it's being called, won't be a "campaign tract as such,' Gold pledged. Still, since Bush is a presidential prospect, the book certainly will be scrutinized for clues to his character ? and to his relationship with his wife. "It's not dwelled on, but the early part of the book reflects that she was a big influence on him," the publishing source said. One time he presumably had to listen to her was when, aged 24, he passed out, dead drunk, at a Texas Christmas party. Pals trucked him home, dumped him on the lawn and announced "well, there's George" when Barbara opened the door. STATINTL 00010001-8 Fight brews MAGGIE Thatcher vs the First Amendment? As PAGE SIX pre- dicted, Viking is rushing out "Spy- catcher," the explosive book about espionage that the PM suppressed by going to court in Britain and Australia. 'There's a lot of ma- terial in this book that's of interest to an American audience because the author [ex-M15 spook Peter Wright] interfaced with high levels of the FBI and CIA," said Viking president Alan Kellock. He intends to have the book in the stores by the end of June and thinks Maggie will have a hard time stopping him. "We've taken a lot of legal ad- vice and feel we're fully protected. This is very much a First Amend- ment issue," he said. By RICHARD JOHNSON Approved For Release 2006/01/03 : CIA-RDP91-00901R000100010001-8 Approved For Release 2006/01/03 : CIA-RDP91-00901R00 ON PAGE ARTICLE APP NEW YORK TIMES 11 May 1987 0100010001-8 STATINTL Aides to the President and Vice President Are Braced for Bombshells By GERALD M. BOYD Mr. Secord testified-thil John Dot - For example, after the meeting specie' to The New Yoe( Times ton, a retired military officer who with Mr. Rodriguez had become known they released a chronology WASHINGTON, May 9 ? The good worked with him on the airlift opera- that they said covered all the contacts tion, told him that he escorted Mr. Ro- news, aides to yjo, President Bush among the C.I.A. operative, Mr. Bush driguez to the Vice President's office say, is that no evidence exists to cor- and his staff. Similarly, they made no in early August 1986 for a meeting. roborate Claims by a retired Air mention that Mr. Bush had praised a Bush aides dispute that account Force general that Mr. Bush knew of One top aide said that a check of key player in the arms deals, Lieut. a covert program to supply weapons White House entry logs for August Oliver L North, in a telephone call to Nicaraguan insurgents. until that was also public. "We don't had found no record of a Visit by Mr. The bad news is that the man who typically announce the Vice Presi- Dutton. In addition, the staff exam- made the claims, Richard V. Secord, dent's phone calls to anyone and this ined Mr. Bush's schedule for August is only the first witness to testify at was simply a short phone call to wish and found that on Aug. 8, the day that the Congressional hearings on the a man well," Mr. Thomas said. Mr. Rodriguez met with two top Bush Iran-contra affair. With the hearings scheduled to assistants, the Vice President had left Part of a Pattern? Washington for his home in Kenne- stretch into the summer, aides to Mr. But some Republican strategists, bunkport, Me., the aide said. Bush are bracing for other witnesses Mr. Thomas, the Bush spokesman, including one close to Mr. Bush, and other claims. But they are also arguing that such assertions will also said of General Secord's testimony: argue that the approach is a part of a go uncorroborated. "He's misinformed, and his source or pattern suggesting reluctance by Mr. "Let's wait until it happens," a friend is mistaken. Left unchallenged Bush to take forceful actions that might put the affair behind him. spokesman, Larry Thomas, said of or unsubstantiated they could hurt, As another example, the strategist' the possibility that Mr. Bush and his but we are confident that the truth is Said Mr. Bush been advised to de- campaign for the 1988 Republican different and that it will come out as a mand the resignation of Donald P. Presidential nomination might be result of the entire hearings." Gregg, his national security adviser, damaged by disclosures from the But some advisers who asked not to televised hearings that are bringing who introduced Mr. Bush to Mr. Ro- be identified accept the possibility driguez and whose role in the arms Ro- the secret policy into the open. that Mr. Dutton might support the Se- affair has generated considerable at- tention. On Friday Mr. Bush's office took cord account if called to testify. the unusual step of releasing a letter Since the scandal came to public at- Mr, Gregg had made it clear that the Vice President received recently tention last fall, Mr. Bush has he would leave if Mr. Bush made the from a central figure in the affair, the dropped in public opinion polls, al he The Vice President did not. Saudi arms merchant Adnan M. Kha- though the latest New York Times/ shoggi, that they said supported their CBS News Poll showed that he has denials of an article published by The Washington Times in March. gained strength in the last two tide, based on an interview with Mr. The ar- months. The sampling, taken Tues- day and Wednesday of 234 registered Khashoggi, contended that Mr. Bush Republican voters, found Mr. Bush had been trying "to raise money right the choice of 41 percent, compared to and left" for the rebels. a preference of 33 percent in a simi- Mr. Khashoggi wrote that he lar poll in March. The next choice in "wanted to set the record straight" and that the "whole episode" had the more recent poll was Senator Bob been blown out of portion. He said he Dole of Kansas with 18 percent. had been "misunderstood" and "ex- Incumbency an Asset? ploited" by the newspaper. Even so, many political strategists The Presidential commission that believe that the Iran-contra scandal investigated the scandal portrayed could have a major impact on the Mr. Bush's role in the sale of arms to Vice President's election prospects, Iran as minor. But it left unanswered although aides have argued that it is many questions concerning the diver- less an issue outside Washington than sion of profits to the Nicaraguan in- it is inside the capital. surgents, including questions about a "It's clear on the Republican side private network that supplied weap- in 1988, George Bush's Vice Presi- ons to the rebels during a period in dency incumbency is turning out not which Congress had banned such to be a strategic asset," said Kevin P. assistance by the Government. Phillips, a Republican political Although Mr. Bush, a former Direc- strategist, "principally because it tor of Central Intelligence, has denied spotlights the Vice President's lack of involvement in the supply network, independence and subjects him from he has been a target of public and fallout from the Iran affair." Congressional suspicion based on dr- Mr. Bush's aides have responded cumstantial evidence. For example, with a strategy that displays willing- when a rebel supply plane was shot ness to provide information on his down in Nicaragua last October, role. But often it is forthcoming only aides on his staff were the first after public disclosures have been United States officials to be notified. made about his activities. In addition, the Vice President has acknowledged meeting in September 1986 with a C.I.A. operative, Felix Ro- driguez, who was coordinating a pri- vate airlift operation for the rebels, based in El Salvador-. Mr. Bush has said that he aiV_Mr. Rdstopez did bpi. Release 2006/01/03 : CIA-RDP91-00901R000100010001-8 not discuss the .0.PAf 9 STAT ARTICLE AP ON PAGE :2_ LOS An Approve or Releas, 49/4 Fired North Got Call From Bush, Secord Testifies By DOYLE McMANUS, Times Staff Writer 1111117ASHINGTON ent George Bosh?fillioned White House aide Oliver L North after North was fired last year to offer his support, retired Air Force Maj. Gen. Richard V. Secord told Congress Wednesday. "It was. . . [a] laudatory call? sad?a very short call," Secord said. Bush told North that he admired the work he had done, another source said, and told the fired aide: "Sorry to see it end this way." A spokeswoman for Bush, Gayle Fisher, confirmed the account. North was fired by President Reagan last Nov. 25 after investi- gators discovered that he had se- cretly diverted profits from the Reagan Administration's Iranian arms sales to aid Nicaragua's contra rebels. Reagan himself also telephoned North to offer his support and later called the Marine lieutenant colo- nel "a national hero." Secord, who was with North when both calls came, said he realized that the President was on the line when North answered the INDP91-00901R000100010001-8 Questions Inquiry Seeks to Answer From a Times Staff Writer WASHINGTON?Here are the key questions that Sen. Daniel K. Inouye (D-Hawaii) said the Iran-contra hearings are trying to answer: ?Were the statutory restrictions on U.S. aid to the contras violated? ?Was Congress misled? ?Were the executive branch's own internal checks and balances bypassed in policy decisions on Nicaragua and Iran? ?Was there a public foreign policy and, simultaneously, a very different covert foreign policy? ?Was American foreign policy turned over to people outside the government? ?Were national security decisions driven or influenced by private profit motives? telephone and stood at attention "like a good Marine." Secord told the House and Sen- ate committees investigating the Iran-contra scandal that Bush met last August with a former CIA officer who had helped set up a secret contra air base in El Salva- dor, suggesting that the vice presi- dent was aware of the secret contra airlift. But Bush contested that account, saying through Fisher that he did not meet with former CIA officer Felix Rodriguez. Instead, he said, Rodriguez met with two of his top aides, Donald Gregg and Sam Wat- son. "Gen. Secord is mistaken," she said. Rodriguez came to Washington to complain that Secord's airlift operation was badly managed and was wasting money, Secord and other sources said. Rodriguez was a friend and polit- ical supporter of Bush who first went to El Salvador with a recom- mendation from Bush's office to help in counterguerrilla operations there. Bush, who is an unannounced candidate for the Republican presi- dential nomination, has been strug- gling to free himself from charges that he was more deeply enmeshed in the Iran-contra secret operation than he has admitted. Approved For Release 2006/01/03 : CIA-RDP91-00901R000100010001-8 STATINTL vARTICLE 401 For Release 20P 9'8 1)1441/(1( VATFiDP91-00901R00010001J001 8 2 ON PAGE p ay SECORD RECOUNTS BEING TOLD REAGA KNEW OF HIS WOliK By DAVID E. ROSENBAUM Special to The New York Times WASHINGTON, May 6 ? Maj. Gen. Richard V. Secord, a main organizer of the Iran arms sales and the contra sup- ply operation, testified today that he had been told several times that Presi- dent Reagan knew of his efforts. General Secord, a retired Air Force officer, in his second day, as the opening witness before the Congressional com- mittees investigating the Iran-contra affair, said he had never talked with the President personally about either matter. But he added: "On a few occasions, I heard Oliver North, in an offhand and I think humor- ous vein, remark that in some conver- sations with the President, he men tioned that it was very ironic that som of the Ayatollah's money was being used to support the contras. "Whether he actually said this to the President, or whether he was joking with me, I'm not sure." [Excerpts, page A15.1 John M. Poindexter, while national se- curity adviser, had told him that Presi- :dent Reagan knew of and appreciated his work. General Secord said in his opening testimony Tuesday that every- :thing he had done on behalf of the Iran ;sales and the supply of arms to the con- tras had been approved by the Admin- istration, and his remarks today were 'meant to bolster that contention. 1 ; At the end of the day, committee /members said they were intrigued by General Secord's remarks about the President but did not view it as conclu- / sive evidence. Most of the day was .spent in a de- 'tailed recounting of the various arms 'transactions with Iran. Much of the material was explored thoroughly in, the Tower Commission report, which was made public in February. Still, General Secord broke some new ground, including these points: (lAs early as December 1985, Colonel North suggested that surplus money from the arms deals with Iran should be used for the benefit of the contras. 9The general provided more precise information about the help that his ac- tivities for the contras received from William J. Case Jien Director of Cen- igence, and other officials. 1 The general destroyed some of his idocuments after the Iran arms sales became publicly known but before legal investigation had been an- nounced. General Secord also disclosed that on the afternoon last November when the diversion of profits to the contras was made public and Colonel North was dis- missed from the White House staff, the colonel received telephone calls of sup- port from Mr. Reagan and Vice Presi- dent Bush. The President's call, in which he is said to have referred to the colonel as a "hero" and told him his work "would make a great movie one day," has been widely reported. But this was the first mention of a similar call from Mr. B Not Taken as a Joke Lieut. Col. Oliver L. North, a former National Security Council official, has been reported to exaggerate at times. But General Secord added, "I did not take it as a joke." Mr. Reagan has maintained thathe never held detailed private conversa- tions with Colonel North, who was in charge of, the secret operations, and that he knew nothing of the diversion of funds from the Iran arms sales to th Nicaraguan rebels, known as contras. The White House spokesman, IWArl Fitzwater, refused to comment di- rectly on General Secord's assertbins. But he noted that the President had said previously that he was unaware of the diversion of money. Reagan's Knowledge at Issue The question of Mr. Reagan's per- sonalAnowledge is the central issue of the investigation. The committee mem- bers did not have the opportunity to pursue the matter further today, but General Secord will return to the wit- ness stand Thursday. General Secord also said Vice Adm. Mostly Matter of Fact As he had Tuesday in his opening testimony, General Secord, a stocky man with a military bearing, defended his activities as selfless and patriotic. He spoke mostly in a matter-of-fact tone, rattling off dates and figures without emotion. But occasionally he raised his voice, especially when questions implied profiteering on his part. And at least once, he cracked a joke. The chief counsel of the House com- mittee, John W. Nields Jr., was trying to determine whether General Secord believed he could use proceeds from the arms sales in any way he wished. "So you could have gone off and bought an island in the Mediterra- nean?" Mr. Nields asked. "Yes, Mr. Nields," the general re- plied, "but I did not go to Bimini." STATINTL on the investigation, apparently did not get the allusion to former Senator Gary Hart's travails. When the spectators laughed, Mr. Nields turned to Repre- sentative Michael DeWine, a Ohio Re- publican who sat to his left, to have the joke ekplained to him. The hearings are expected to last at least through most of the summer, and General Secord was called as the first witness to provide an overview of the affair. His testimony is meant to set the stage for witnesses to follow. Most of the day's interest focused on his answer to a single question Mr. Nields asked in midafternoon about his "understanding of the President's knowledge of the issue." "I have no direct, first-hand knowl- edge about what the President knew or didn't know," the general replied. "As I think everyone knows, I never spoke with the President on this." But he went on to say what officials including Colonel North, Mr. Casey, Robert C. McFarlane and Admiral Poindexter told him during the rieriod. Mr. McFarlane, who resigned in December 1985, preceded Admiral Poindexter as security adviser. Mr. McFarlane is due to testify next week. "I was told on a number of occasions, and I even recorded it once in a Decem- ber 1984 n,iemo to myself, that the President was informed of my partici- pation in the contra and later in the Ira- nian operation," General Secord said. "I had talked with the Director of the C.I.A., who was a close confidant.of the President," he continued. "I assumed that he was passing information to him." Mr. Casey died this morning. President Reported Pleased "I talked with two different national security advisers during the two years in question here," General Secord said. "I've been at all the projects I was worki4ig on with Oliver North, and I was told by Admiral Poindexter in Janu of '86 that not only was he pleas d with the work that I had been doing, but the President was as well." The general then recounted how Colon 1 North had told him how he and the P esident had joked about using mone from Ayatollah Ruhollah Kho- meini the Iranian leader, to finance the contr s. Col nel North has often been accused by hi critics of exaggerating his im- porta ce and his relationship with the Presi ent. But Admiral Poindexter and Mr. asey are known to have spoken with he President directly and regu- larly, and they do not have Colonel Nort 's reputation f O exaggeration. Colbnel North and'Admiral Poindex- ter ill be called to testify before the ' panels next month. Mr. Nields, a stolid man who has been working day and night for weeks IApproved For Release 2006/01/03 : CIA-RDP91-00901R000 00010001-8 Continued Approved For Release 2006/01/03 : CIA-RDP91-00901R000100010001-8 General Secord said he had wanted to talk to the President to urge him not to abandon support for the Iran and contra operations. He was in a hotel room with Colonel tiorth when Mr. Reagan called to offer support the day the colonel was dis- missed from the White House staff. "I said, 'Let me have the phone,'" Gen- eral Secord said, indicating that he had almost tried to grab the phone. "But it was too late. He hung up. I wasn't fast enough." 'The People Would Understand' He wanted to tell the President, he testified, "that it was a good policy, and it was worth a try." "The American people would under- stand the rationale that underlie such a policy, and we've done nothing wrong," he continued. "My advice would have been: 'Let's stake out our position. Don't cut and run.'" Then General Secord's voice dropped. "I didn't get a chance to make that kind of speech," he said softly. "So I'll make it now." He said the idea that surplus money from arms transactions be diverted to the contras was first suggested by Colonel North in December of 1985. There have been conflicting stories in the past on how the diversion began. Some sources have said the idea came I from the Israelis, and others that it came from the Iranian middleman, Manucher Ghorbanifar. General Secord said the idea arose because a month earlier, an Israeli named Al Schwimmer, a founder of the Israeli aircraft industry, had deposited $1 million in a Swiss bank account that was being used for both the arms ? transactions to Iran and the contra supplies. The $1 million was meant to pay the transportation costs of a ship- ment of American anti-tank missiles from Israel to Iran. He 'Made a Contra-bution' The shipment's expenses, however, amounted to only about $200,000, Gen- eral Secord said, and he asked Colonel North what to do with the surplus. Colonel North said the money should be used for the contras, he said. "So Mr. Schwimmer made a contra-bu- tion," General Secord said, apparently intending the pun. "We'll let that one sink in for a minute," Mr. Nields said. After that episode, the general said, Colonel North was "consistent" in sug- gesting that money left over from arms transactions be spent on the con- tra operation. There was plenty of left-over money, ? nearly half of the total of $30 million the Iranians paid. But General Secord said only about $3.5 million was actually used to supply the contras. More than half the remainder, ac- cording to financial records, is still in an account of General Secord's busi- ness partner, Albert Hakim, and the rest was used for other purposes. Some of the money was intended as normal business profit for the Hakim-Secord company, Stanford Technology Trad- ing Group. But it was unclear what the rest of the money was intended for. Says He Took No Money General Secord said Tuesday that he had decided not to make any money from the deals because he feared that might hurt his chances for rejoining the military. He said today that his only income was the normal salary of $6,000 a inonth that he drew from the compa- ny. In fact, the general took offense at the notion that he might have made money from the deals. "There was no intention of profiteer- ing," he said, a sharp edge to his voice. "I know that some people were tossing this word around right now, and I re- sent it. There was no intention of prof i- teering. None." Approved For Release 2006/01/03 : CIA-RDP91-00901R000100010001-8 STAT opArtg:f212eproved For Release 2/9R9/pARL:FrphRD/PN9400/0/9p1R000100010001_ FILE 6 May Testimony,. conflicts with Bush's By Steve Stecklow and Matthew Putcly ',Nu! Per wa.clungion Bureuu 1987 WASHINGTON ? Retired Air Force Gen. Richard V. Secord testified yes- r?Irday that he believed.g Its.graL., ent Bush attended a meeting last Tigigr5flitfich the secret operation to supply arms to the contras was discussed. Secord's testimony contradicts statements by Bush's office that the vice president never attended such .a meeting. The office has stated that on last Aug. 8, two of Bush's ?top aides, Donald Gregg and Col. Samuel Watson, met with Felix Rodriguez, a former CIA employee who was a key participant in the contra supply op- eration. However, according to a Dec. 15 statement by Bush's office, the vice president was not informed of that meeting. Gayle Fisher, a Bush spokeswoni- an, said yesterday that Secord's testi- mony about the vice president. was "not true. The vice president did n6t sit in on a meeting of that kind in August," she said. Secord referred to the meeting during his first day of testimony fore the joint congressional cominit- tee investigating the Iran-contra af- fair. He was not questioned further about how he came to believe Bush attended the meeting. Secord described Rodriguez, Who woriced with the CIA in the 1961 flay of Pigs operation and later in Viet- nam, as a key player in the contra supply operation as far back as:Sep- tember 1985. He acted as a "liaison" with local authorities in El Salvador, where the operation was based, Se- cord said. But because of a misunderstand- ing, Secord said, Rodriguez came to believe that Secord and his asso- ciates were "profiteering" at the ex- pense of the contras, and were sell- ing them old weapons in poor condition ? charges Secord said were untrue. Rodriguez, according to Secord, first voiced his concerns at a meet- ing with White House national secu- rity aide Oliver L. North and Robert Dutton, a Secord associate. The meet- ing "didn't go well," Secord said, and Rodriguez then took his complaints to Bush and Gregg. ? According to a chronology 're- leased by Bush's office in December, Gregg, Bush's national security af- fairs assistant, helped place Rodri- guez in El Salvador in early 1985 to help fight communist guerrillas there. Although Rodriguez was .re- peatedly in communication with the vice president or his staff in 1985 and 1986, according to the chronology, it was not until last Aug. 8 that Rodri- guez told Gregg about the contra supply network. Bush has said he knew nothing about Rodriguez's involvement with the contras, even though he or his staff had had contact with Rodriguez 16 times since 1983. Approved For Release 2006/01/03 : CIA-RDP91-00901R000100010001-8 STATINTL STAT STAT Release 209LEWM: ctkgDP91-00901R000100010001-8 6 May 1987 SECORD SAYS HIGH OFFICIALS STATINTL HELPED HIM SUPPLY CONTRAS DESPITE BAN ON U.S. ARMS AID By DAVID E. ROSENBAUM Special to The New York Times WASHINGTON, May 5 ? The first witness at the Confessional hearings on the Iran-contra d, Maj. Gen. testfNadttoday that "troVernment officials including Wil- liam J. Casey, then Director of Central -11ffellillerM1elped in the operation to supply weapons to the Nicaraguan rebels after Congress had prohibited such aid. General Secord also testified that only about $3.5 million of the $12 mil- lion in profits from the sale of arms to Iran was actually spent on behalf of the contras. More than half of the money, he said, was kept by his business part- ner, Albert Hakim, and part of the rest was used for a secret project unrelated to Iran or Nicaragua that he did not identify. "We believed our conduct was in the furtherance of the President's poli- cies," General Secord asserted, speak- Ing of himself and his colleagues in the various transactions. "I also under- stood that this Administration knew of my conduct and approved it." First Account by Participant This was the first detailed, public ac- counting by an actual participant in the operation of how the proceeds from the arms sales were used. General Secord's testimony is to re- sume Wednesday. Today, he made these other points: He was first asked by Lieut. Col. Oliver L. North in 1084 to work with the National Security Council's covert pro- gram to obtain and supply weapons for the contras. ilHe believed he was working on be- half of and with the full backing of the Reagan Administration. gOfficials of the C.I.A and the State Department in Central America as- sisted his efforts to supply the contras with weapons. OHe was told, but did not know first- hand, that Vice President Bush was ap- prised of the contra-supply operation. eLast year, Government officials in El Salvador voiced objections about the use of their country in the supply operation. eHe worked extensively with Israeli shipment to Iran. General Second, who is retired from the Air Force and who was a Deputy Assistant Secretary of Defense early in the Reagan Administration, was testi- fying voluntarily. He began his testi- mony this afternoon after a morning session devoted to solemn speeches by the members of the investigative com- mittees. General Secord said he had origi- nally refused to testify because he felt "abandoned" by Attorney General Edwin Meese 3d and other top officials of the Administration, and because his "instincts were self-protective." "With the passage of time," he said, he reconsidered. Spectators Lined Up The Senate Caucus Room, the stage for the Senate Watergate hearings and many other memorable political events, was jammed for the opening session. Hundreds of spectators lined up for the 50 or so unassigned seats, hoping to witness an important chapter in American history. "These hearings," said the chairman of the Senate panel, Daniel K. Inouye, In his opening address, "will examine what happens when the trust which is the lubricant of our system is breached by high officials in the Government." ! "The story is not a pretty one," he continued. "As it unfolds, the American people will have every right to ask, 'How could this have happened here?' Indeed, it never should have happened at all." The committees, whose joint hear- ings are expected to last at least through the middle of August, called General Secord as the first witness in the hope that he could provide an over- view of the whole affair. Recalls Trip to Europe He seemed prepared to comply. Tes-i tifying with a steady, matter-of-fact I tone, he told of being recruited in 1984 by Lieut. Col. Oliver L. North, then a White House national security assist- ant, to obtain weapons for the strug- gling rebels in Nicaragua, He also de- scribed how he was sent to Europe in 1985 to try to resurrect an arms ship- ment to Iran that had gone awry. With the exception of Colonel North and perhaps Rear Adm. John M. Poin- dexter, President Reagan's former na- tional security adviser, no other wit- ness is likely to have evidence of so many different aspects of the affair. General Secord said he was not "ashamed" of anything he had done, and he said "unconventional methods" were necessary "because conventional wisdom had been exhausted." He saj4 that he inet onjjam. sions with Mr. Casey, the Director of Central Intelligence until he became ill last December. and that Mr. Casey had encouraged his activities. The general said he had received in- telligence information or other support for the effort to supply arms to the con- tras from senior C.I.A. officials in Costa Rica and Honduras and received "moral sporoort" from the United States Ambassadors in costa Rica and El Salvador. He also said senior United States military officers in El Salvadoi, were aware of the program. In addition, under questioning from the chief counsel of the House investi-I gative committee, General Secord tes-1 titled that he understood Vice Presi- dent Bush had been told about the con- tra supply operation during a meeting in Washington. General Secord said that F driguez. a former C.I.A. operative who served as a liaison between him and the Nicaraguan rebels, became dissat- isfied with the operation and came toi Washington to complain. Mr. Rodriguez, according to the Gen- eral, met with Vice President Bush's national security adviser, Gregg. General Secord said he was ,tmu0m did not have first-hand knowl- edge, that Mr. Rodriguez then met with Mr. Bush as welL But a spokesman for the Vice Presi- dent said Mr. Bush did not attend the meeting firVerfron. Mr. Bush has said repeatedly that he was unaware of the covert program to supply the contras. General I rd was not soecdic a... , _ ? - STAT Casey provided, but he said it was no arms merchanAspt? arrange-an 'provgcri-or Keiease 2006/01/03 : CIA-RDP91-00901R000100010001-8 STAT Continued Approved For Release 2006/01/03 : CIA-RDP91-00901R000100010001-8 as much as he wanted. "I was never able to get the profes- sional intelligence product I was accus- Wined to having," he testified. General Secord said he wok his or- ders from Colonel North, who was dis- charged from the White House staff last November after the arms sale and the diversion of proceeds to the contras became known. He said Colonel North had given him and those working with him sophisti- cated code machines that look like lap- top computers. Several messages be- tween General Secord and Colonel North that were written on the ma- chines were submitted into evidence to- day, an indication of the extensive documentary material the investiga- tors have accumulated. One of those messages involved the purchase of a ship to be used in a United States Government project not related to Iran or Nicaragua. General Secord did not identify the project, although some people said they believed it involved Libya. "The mission they had for the ship was ex- tremely dangerous," General Secord said. Slightly more than $1 million from the Iran arms sales was used to buy the ship, he said. General Secord testified without im- munity from prosecution. He said he had legal opinions that his contra sup- ply operation was within the law, but other authorities have suggested other- wise. A person close to the general said that after invoking his Fifth Amend- ment right against self-incrimination and refusing to testify in other investi- gative forums, he decided to come for- ward because he thought it would help his legal position if he cooperated. Under questioning from John W. NieIds Jr., chief counsel for the House committee, General Secord described what happened to the $30 million paid by Iran for American missiles and other weapons. About $12.3 million, he said, was given to the United States Treasury to pay for the arms. Another $8 million is still in a Swiss bank account or in a fi- duciary account for the "benefit" of Mr. Hakim, he said. Mr. Hakim, who 'arranged most of the financial transac- tions, is a partner with General Secord in a Virginia-based company called Stanford Technology Trading Group. About $3.5 million was diverted to as- sist the contras, $3 million went for ex- penses connected with the delivery of the arms to Iran, slightly more than $1 million was used to buy the ship for the unidentified project in a third country and for other unidentified projects, and about $2.5 million is still unaccounted for. Approved For Release 2006/01/03 : CIA-RDP91-00901R000100010001-8 STATINTL roved For Release 2006/HpiIR : CIA-RDP 91-00901R000100010001-8 5 May 1987 Hints of Conspiracy The /ran-contra hearings will renew pressure on the White House It is a uniquely American ritual. A concerned and cu- rious citizenry gathers in an electronic version of a Colo- nial town meeting to watch their elected representatives grill Govern- ment officials, high and low, about a sorry episode in contemporary history. The viewing can be painful yet mysteriously exhilarating, boring at times yet somehow fascinating. It is an odd self-flagellation, but out of it can emerge a catharsis. The Government's secrets are exposed, its ac- tions explained, condoned or condemned. The issue is faced. The nation moves on. The process begins again this week as klieg lights illuminate the solemn faces of 15 Congressmen and eleven Senators seated on a two-tiered dais draped in burgundy bunting, at the opening of a four-month public explora- tion of the Iran-contra affair. This is the same Senate Caucus Room where televi- sion cameras revealed Senator Joseph McCarthy as a snarling bully. It is where Richard Nixon's closest aides told lies in a vain effort to support the President's Watergate crimes. Are the stakes as high this time? Probably not, but the unpredictable lurks. Said a White House aide last week: "You can never tell in what direction a hearing like this may go." Panel Member Peter Rodino, the New Jersey Congressman whose steady hand in 1974 dignified the impeachment proceedings against Nixon, hears echoes. "We have a situation again where we have much of the Executive Branch misunderstanding the rule of law," he says. "We just can't let that go unchallenged and unaddressed." The alleged "misunderstanding" of the "rule of law" that Congress plans to probe goes far beyond the unhinged arms- for-hostages deals with Iran and the siphoning of profits to the Nicaraguan contras, which formed the focus of the Tower board's report in February. In- stead, a central issue this time will be the role Administration officials played in pursuing a secret and possibly illegal for- eign policy by using a shady cadre of pri- vate and semiprivate operatives to supply military aid to the contras when such aid was restricted by Congress. How explosive this investigation could be was revealed last week, when In- dependent Counsel Lawrence Walsh se- cured the scandal's first guilty plea, one that led uncomfortably close to the Oval Office. Conservative Fund Rais- _ er Carl ("Spitz") Channell admit- ted he had conspired to defraud the Government b Y using resupply. He was at NSC when exempt "charitable" foundation to send military sup pi3Kol.fgd For Release 2006/01/03 : CIA-RDP91-00901R0001t0001000148iendment bannectontinued contras. He named former Na- direct military aid to the rebels. tional Security Council Aide Lieut. Colonel Oliver North as his "co-conspirator." North had not only helped persuade donors to give to Channell but had also successfully urged Ronald Rea- gan to thank many who did so. ? White House Spokesman Marlin Fitzwater reiterated Rea- gan's earlier claim that he thought the money was used only to buy TV ads to persuade Congress to support the contras. But Fitzwater's re- sponse was carefully hedged. Said he: "In the legal view of the White House, the President is not a part of this conspiracy." Another aide fretted about what might be next in the chain of criminal charges: "These pleas tend to set up a domino ef- fect, with one target leading to others. We have no real idea where it's going." Even if Channell or others reveal that Reagan knew some of the private dona- tions were being used for military sup- plies, it would not necessarily mean Rea- gan was a conspirator in breaking the tax- exemption laws. But at the very least it would show his earlier denials to be false. And if the conspiracy to use private dona- tions for arming the contras turns out to have violated other laws, such as the Neu- trality Act and the Boland Amendment, questions of White House involvement could become far more serious. Before its hearings begin this Tues- day, the joint congressional committee staff will have interviewed 300 witnesses, reviewed more than 100,000 documents and issued 140 subpoenas. The investiga- tion is prying loose what promises to be a spate of intriguing revelations about the Iran-contra affair. By focusing on the covert policies the Administration pursued in Nicaragua, as well as Iran, the members plan to depict what many feel amounted to a dangerous privatization of foreign policy. The lesson of the hearings, predicts New Hampshire Republican Warren Rudman, will be that the Administration "cannot have a stated foreign policy aggressively pursued and a private foreign policy that is 180? opposite to it." The role North and the CIA played in setting up this rogue network is already well documented. A central question will be the degree to which the President gave his knowing approval to the secret contra- funding efforts. The Tower board por- trayed Reagan as incredibly uninformed about the specific activities of his Nation- al Security Council staff. But some Con- gressmen say the evidence indicates Rea- gan was well aware of the basic policies pursued. "The President was very knowl- insists Hawaii Democrat Daniel Inouye, chairman of the Senate panel. Oklaho- ma's David Boren posed the committee's key question in phrases that carry a Wa- tergate-era ring: "Did the President faith- fully carry out the spirit of the law, or was he ignoring it? Did he subvert the process himself by trying to raise funds to get money to the contras?" The panel selected as its first wit- ness one who is likely to engage the public's attention. After taking the Fifth Amendment in earlier hearings and even risking a contempt ci- tation for refusing to turn over financial records, retired Air Force Major General Richard Secord agreed to testify?with- out immunity from prosecution. Why? "He's convinced he did nothing wrong and wants to tell his story," explained Maine Senator George Mitchell. Consid- ering his involvement in both the gunrun- ning to the contras and the logistics of sending arms to Iran, Secord could credi- bly hold such a view only if he believed he had been given clear authority for what he did. Declared Inouye: "Few people can tell this story from beginning to end, and General Secord is one of those people." In addition to describing the network of private operatives North used in both the Iran arms deals and the contra-supply operations, Secord is expected to help un- tangle one of the scandal's chief remain- ing mysteries: Where did the money go? An arms dealer ever since he left the Pen- tagon in 1983, Secord joined a company run by Albert Hakim, an Iranian Ameri- can who recently gave committee investi- gators thick notebooks containing details of the firm's various bank accounts. Pro- ceeds from the Iranian arms sales as well as covert money for contra military sup- plies are believed to have moved through these accounts. The committee's plan is to conduct its hearings in three stages: 1) the contra funding and military-resupply operation, which may take about four weeks; 2) the Iran arms deals and who may have been responsible for the diversion of profits to the contras, running into August; 3) a wrap-up period exploring the lessons learned and what legislation, if any, might be needed to prevent a similar breakdown in the orderly and accountable conduct of foreign policy. The committee should be finished by Labor Day. The joint committee has compiled an interesting list of 26 witnesses for the first phase, which some staffers refer to as an exploration of "Contra, Inc." Secord will be followed by Rob- ert McFarlane, the former Na- tional Security Adviser, who has testified extensively about his unfortunate dealings with Iran but not about the secret contra ved or Rel 006/01/03 : CIA-RDP91-00901R The committee counsel: John Nields Jr. for the House and Arthur Liman for the Senate Filling out the picture will be some lesser-known field agents who helped cre- ate the private network that kept the contras fighting despite the official cutoff. Among them: Robert Owen, who as North's roving envoy in Central America allegedly arranged weapons shipments, and Contra Leader Adolfo Calero, who will be asked about what help the rebels actually received. Next will come the fund raisers who made the private military aid possible. They will include retired Army General John Singlaub, who solicited money open- ly for the contras on a worldwide basis; Barbara Studley, a rather mysterious friend of Singlaub's; Ellen Garwood, the Texas multimillionaire who donated lav- ishly to Channell's groups: and Jane McLaughlin, a former Channel! aide who has spoken freely about his White House ties. Hakim, expected to return from liv- ing abroad, will flesh out the details of se- cret money transfers through Switzerland and the Cayman Islands. The role of the NSC staff in setting up this contra-sup .l network will be ex- piorerthroug t e testimony o such Se- cord associates as Robert Dutton and .Richard Gadd, both of w to have worked closely with North. Then Felix Rodriguez, identified as a CIA agent who uses the moniker Max _Gomez, will be asked to explain his job as liaison be- tween El Salvador's air force and private pilots some of whom wound up air-drop- ping supplies to the contras from Salva- dor's Ilopango Air Base. Recommended for his role by Donald Gregg, a top aide to Vice President George Bush, Rodriguez will beguestioned about meetings jie has had with Bush. The offaal ties may be tightened as Lewis Tanibs, former U.S. Ambassador to Costa Rica is asked about working_ with North to get Costa Rica to keep a secret contra airstrip operating. The CIA station chief in Costa Ric-iTrecefilly identified as Joseph Fernandez, Will be quizzed about the contras MT whiChTif his CIA Su_periOrS was aware of his activities. Some of the toughest grilling may be inflicted on Elliott Abrams, Assistant Secretary of State for Inter-American Affairs, who had insisted publicly that "nobody in this building had any idea of any contributions coming from a foreign government" just days before it was dis- closed he had solicited $10 million for the contras from the Sultan of Brunei. Worse yet, the money deposited into a Swiss account provided by North has disappeared. Says an Administration of- ficial: "Aside from the question of whether he did anything indictable, he will at the very least be sacrificed. Elliott knew most of the essential details of what 011ie and his boys were up to." After starting Phase 1 with a po- tential bomb thrower, Secord, the committee expects to end it with the scandal's bombshell: North's secretary, Fawn Hall. Charges of a possi- ble obstruction of justice could hinge in part on how she describes the documents Was he unknowing or In charge? One witness may have an answer. 00100010001-8 she shredded, altered or spirited off to North after Attorney General Edwin Meese carelessly interviewed him about the Iran-contra diversion but failed to call in the FBI or lock up North's files. Meese, who will not be called until Phase 2, can expect rough handling over his sloppy initial investigation as well as his dubious legal advice to the President that it was proper to withhold notification of the Iran deals from Congress. But as to whether there was a cover-up, Maine Re- publican Senator William Cohen notes, "You cannot prove that Meese's inepti- tude was calculated." By agreement with Independent Counsel Walsh, who has voiced deep con- cern about protecting possible indict- ments, the two key figures in the entire affair will not be heard until at least mid- June. Former National Security Adviser John Poindexter, who was kept informed by North about almost everything he did, poses the most direct peril to the Presi- dent. Cool and at least outwardly serene at the center of the scandal, the pipe-puff- ing admiral has told friends he intends to lay his story out candidly and will not be shaken by others. He has privately said he feels that he kept the President in- formed of the Iran and contra-funding operations, including telling him in gen- eral terms on at least two occasions that the Iranian operations were benefiting the contras. Some committee members were irked last week when Reagan seemed to be sending Poindexter a signal. Asked whether he was worried about the admiral's testimony, Reagan replied, "No. John Poindexter's an honorable man. . . I was not informed." As for North, no one can be sure of what the erratic officer will say. But the big question for North will be one that has the ring of Watergate: What did the Presi- dent know? This schedule of witnesses is daunting and certain to include hours of tedious tes- timony about secret bank accounts and weapons shipments. As one White House aide predicts, viewers (and the networks) are sure to switch back to the soap operas except when some of the major witnesses are on camera. "Our responsibility is not to entertain, but to inform," says Cohen, whose eloquence in the House Judiciary Committee impeachment debate helped propel him into the Senate. But even if the hearings produce few explosions or smoking guns that can top- ple high officials, they could have a pow- erful historic impact. With the emotional force that often emerges from the accu- mulation of dry details, the nation will be shown how some in the Administra- tion used a shady network to undermine America's policy of not trading for hos- tages and to circumventiaws prohibiting the Government from supplying military aid to the contras. The critical lesson. Cohen predicts, will be the discovery that "you can't formulate policy in some dark corner without heading toward anarchy." ?Ely Ed Magnuson. Reported by Michael Duffy and Hays Gorey/Washington Approved For Release 2006/01/03 : CIA-RDP91-00901R000100010001-8 410, Approved For Release 2006/01/03: CIA-RDP91-00901R000100010001-8 ARTICLE APPEARED ON 4 NEW YORK DAILY NEWS 4 May 1987 STATINTL Man that wasn't there But Bush may get hit in IranCon this week STAT By FRANK JACKMAN News Washington Bureau WASHINGTON?So far in he Iran-Contra affair, Vice _siglas been STAT w o wasn't there. But that is likely to change this week as congressional investigators focus on the private networks that ftm- neled arms to the Nicara- guan rebels. The Tower Commission report last February barely mentioned Bush. The vice president has said he knew of, but had "reservations" about, the sale of arms to Iran, but he has been reti- cent about his knowledge of the Contra part of the equa- tion. Iran-Contra special prose- cutor Lawrence Walsh, in a progress report last week, specifically mentioned the office of the vice president as one of those which are the subject of "ongoing in- vestigations." He said that the inquiry was "proving fruitful." Top Bush aide One focus may be Bush's top aide, ex-CIA amajuir?.., alcegg. ?It-is expected Gregg will be called to testitr about his relationship withJLxe- .driguez, former: agent .00414 IsAbititaiGootra supply network. Gregg has acknowledged that in December 1984, he recommended the Cuban- born Rodriguez, a former colleague from their days together in Vietnam, as on- the-scene adviser to the Sal- vadoran Air Force at Ilo- pango air base in El Salvador. Ilopango was the site of an extensive resup- ply network to the Contras during 1985 and 1986. 'Never involved' But in a chronology of events issued by Bush's of- fice last December, Gregg claimed that while he and his staff "maintained peri- odic communication with Felix Rodriguez... (we) were never involved in di- recting, coordinating or ap- proving military aid to the Contras." Twice, however, In August 1986 and again in October of that year, when the Contra support program ran into trouble, Rodriguez took his problems directly to the vice president's office. The first time, Rodriguez was concerned about the ade- quacy of the Contra resup- ply program, and Gregg re- sponded by setting up a meeting with CIA, State De- partment, Pentagon and White House officials to 0.-.1101V419WOWIWAllaimm SCHOOL DAYS: Vice President Bush takes weekend stroll at Phillips Academy in Andover, Mass., the prep school of which he is a graduate. The second time, accord- ing to the Bush chronology, came when a Contra-supply plane was shot down in Nic- aragua and a crewman, Eu- gene Hasenfus, was cap- tured by the Sandinistas. Rodriguez twice called Gregg's office with the news, and a Gregg aide, Samuel Watson, told the White House Situation Room and the National Se- curity Council., Questioned after the Hs- senfus plane was downed, Gregg insisted that he never had discussed Nicaragur with Rodriguez. Later, how- ever, Bush told CBS-TV's "60 Minutes" program that Gregg had to change his sto- ry because "he forgot.' Bush, himself a former CIA director, met three times with Rodriguez. But according to the vice presi- dent's account of' the meet- ings, tbey did not discuss. the Coutrataid Attswirs Approved For Release 2006/01/03: CIA-RDP91-00901R000100010001-8 ARTICLE APPEAKOp roved For ON PAGE-A-L-.... British Spy Agency Criticized Former Official Describes Abuses In Unpublished Book By Karen DeYoung Washington Post Foreign Service LONDON, May 2? A retired senior intelligence official has de- picted Britain's domestic counter- intelligence agency, MI5, as fre- quently incompetent and character- ized by systematic abuses of power and illegal acts, including efforts to spy on and overthrow former prime minister Harold Wilson. The allegations are contained in an unpublished book called "Spy- catcher" by Peter Wright, a 21-year veteran of MI5 who left the service in 1976. The British government is engaged in a continuing legal battle to ban publication of the book. But new demands arose this week in Parliament for an independent in- quiry into the charges after a Lon- don newspaper published an ac- count of some of the allegations. In the manuscript, a copy of which has been obtained by The Washington Post, Wright describes an organization that often operated outside the control or knowledge of the British government of the day. According to Wright, MI5 routinely used other British institutions, from the post office to the media, to fur- ther its aims, and covered up its more questionable activities. Wright's account is taken from his detailed diary of events between 1955 and 1976, when he held a se- ries of senior MI5 positions. Its pri- mary focus is on proving Wright's long-held and widely aired belief that former MI5 head Roger Hollis was the undiscovered Soviet agent long suspected to be at the top of British intelligence. WASHINGTON PO_SJ" Release 2006/91gq, :96NTRDP61-00901R0 i01000100018 According to Prime Minister Margaret Thatcher, a secret gov- ernment investigation in the late 1970s cleared Hollis of suspicion. But the manuscript also details two decades of day-to-dal viltelli- gence activities, fix in the bugging of embassies of both friends and foes by London and Washington to plots to assassinate heads of foreign governments. ,Thatcher's government has sought repeatedly to suppress pub- lication of the book on grounds of national security, and it is unlikely. ever to be published here because of Britain's severe secrecy laws. The government is involved in a court battle to prevent its publica- tion in Australia, where Wright, 71, now lives. Last week, The Independent .newspaper published a lengthy ac- count of some of its allegations, in- cluding a politically motivated plot by up to 30 senior MI5 officers in 1974 and 1975 to remove Labor Party prime minister Harold Wilson from office by smearing him as a Soviet spy. According to Wright, the plan centered on selective leaking of in- formation gathered during Wilson's ,earlier term in office between 1964 And 1970, when MI5 conducted a secret investigation of him, and in -additional bugging of his home and 'office following his reelection at the head of a minority government in :1974. --- The government has brought ? contempt of court charges against !,The Independent on grounds that it violated previous injunctions against newspaper publication of ,Wright's manuscript in this coun- try. Butt the Wilson revelations al- ready have led to charges in Par- liament of an MI5 cover-up of po- tentially treasonable behavior and demands for an independent inqui- ry. Opposition party leaders have renewed longstanding calls for oversight of the intelligence ser- vices, currently accountable only to the prime minister and selected Cabinet members. On Thursday, Thatcher firmly 'ruled out any inquiry into the Wright allegations about the Wilson plot, saying the matter had been investigated by the Labor govern- ment of Ja became prime minister in 1976, When Wilson resigned for still un- disclosed reasons. ' But officials from the Callaghan government have said the 1977 in- vestigation concerned only the bug- ging reports, which they said were disproven, and not the more com- prehensive plot that Wright has al- leged. While major Labor and other po- litical opposition ,figures have de- manded an independent inquiry, Wilson, 71, said last week that he xespected Thatcher's decision. "It sounds as though she does not intend to have one," he told BBC ,television. "I accept that. She is a little closer to it now than (am." In a related controversy, Thatch- ?et' last month confirmed to Parlia- bent that the late Maurice Oldfield, wilo during the 1970s headed MI6, Britain's overseas intelligence ser- vice, was a homosexual as had long ,been rumored. The fact that Old- field had repeatedly passed security checks during his MI6 tenure, com- bined with the Wright charges, has led to a reported desire on the part of many current senior intelligence officers for some sort of indepen- dent inquiry to clear the name of the service. The issue so far does not seem to have captured public imagination, which at the moment is more con- cerned with whether Thatcher will call national elections in mid-June. Wright's book contains numerous references to the often stormy Anglo-American intelligence rela- tionship. He describes both MIS and MI6 as poor and understaffed, and looking across the Atlantic for the resources they needed. Both agencies, according to Wright, feared American wrath over suspicions of Soviet infiltration of British intelligence. The suspi- cions began with the 1951 defec- tions to Moscow of British foreign service officers Guy Burgess and Donald Maclean, and continued to poison the trans-Atlantic relation- ship through the 1970s. Among Wright's disclosures: se As chief scientist for MI5 during the 1950s, Wright successfully re- produced a new form of resonance microphone developed by the So- viets and discovered hidden in the Continued Approved For Release 2006/01/03 : CIA-RDP91-00901R000100010001-8 STATINTL Approved For Release 2006/01/03 : CIA-RDP91-00901R000100010001-8 office of the U.S. ambassador in Moscow. The Americans subse- quently ordered 12 of the devices, and made another 20 themselves, for their own use in Soviet Bloc em- bassies. During the late 1950s and 1960s, until more sophisticated listening methods were developed, Britain used the device to bug the Soviet Embassy and Consulate in London, as well as the Hungarian, Polish, Egyptian, Cypriot and Indonesian missions here. Lancaster House, where numerous conferences were held leading to the independence of British colonies in Africa and Asia, was bugged, as were buildings around London where various in- ternational trade conferences were held. Efforts to install a listening de- vice in the West German Embassy failed, according to Wright. The French Embassy was bugged to listen to discussions about Britain's application to enter the European Economic Community, and to pass information along to the Americans about the French independent nu- clear force. Wright says the Amer- icans also installed their own bug in the French Embassy in Washington. ? British assassination plots were launched in the late 1950s against Egyptian leader Gamal Abdel Nas- ser and Cypriot guerrilla leader Col. George Grivas. Both plots failed, but the techniques developed, in- cluding the planned use of poison nerve gas against Nasser, interest- ed the CIA. According to Wright, the CIA asked in 1961 for British technical assistance in its plans to assassinate Cuban leader Fidel Castro. "We're developing a new capa- bility in the company to handle these kinds of problems, and we're in the market for the requisite ex- pertise," Wright quotes senior CIA officer Bill Harve telling him in Washing on. ? In 1965, president Lyndon John- son became so concerned about possible Soviet infiltration in Britain that he ordered the Foreign Intel- ligence Advisory Board to conduct a secret review of MIS and MI6 in London. The result of the study, which Wright describes as espio- nage against a friendly government, was a "devastating critique" that led CIA counterintelligence chief James J. AngIttaiLto propose a plan To= trim CIA agents inside MI5. Playing on Britain's need for U.S. intelligence resources, Wright says, "they wanted MI5 as a supplicant client, rather than as a well-dis- posed but independent ally." Learn- ing of the investigation, MIS pro- tested that it was a "blatant abuse" of the alliance, and the incident nearly led to the expulsion of a lead- ing CIA official here. ? The first allegations against Wil- son were made by Angleton, who in 1965 made a special trip here to tell MI5 that U.S. intelligence had in- formation that the British prime minister "was a Soviet agent." An- gleton, according to Wright, re- fused to divulge details unless MI5 could assure him the information would not fall into "political hands," presumably those of the Wilson government. The British could not make that guarantee, and the infor- mation was filed away here under the code name "Oatsheaf." In 1967, Wright flew to Washing- ton to query Angleton again. Angle- ton said that "an agent of his . . . had heard that Wilson had clandes- tine meetings very occasionally with the Russians," but that the source was "no longer available." A CIA connection to the Wilson story also has been recounted in the recently published book "The Sec- ond Oldest Profession," a history of modern spying by British author Phillip Knightley. Knightley writes that shortly before Wilson's resig- nation in 1976, when he believed both MI5 and MI6 were plotting against him, the prime minister se- cretly sent an emissary to Washing- ton to ask the CIA what it knew. In response, then-CIA director George Bush flew to London to as- sure Wilson there had been no U.S. involvement. The day before his meeting with Bush, however, Wil- son resigned. In his book, Wright does not ex- plain his decision to break the con- tract of silence that virtually every British intelligence officer has ad- hered to, and that the Thatcher government has accused him of breaching in the Australia case. But the manuscript, and what is known of MIS during the period he served there, provide some answers. Wright makes repeated refer- ence to MI5's failure to provide for its former employes, allegedly cheating them, including himself, out of deserved pensions and re- wards. Another recurring theme is the inability of top intelligence chiefs, described by Wright as a clubbish upper-class crowd more interested in the Times crossword puzzle than in systematic intelli- gence work, to listen to the advice of scientists and activists like him. Knightley, who said he read Wright's manuscript during a visit to Australia, described Wright in an interview as the classic "boffin." In British slang, "boffins" are "the backroom boys, the unrecognized scientists" who resent "the flashy ones at the top," Knightley said. They see themselves as the true workers and achievers, deprived of credit, and tend to hold grudges when they are not listened to. In Wright's case, he has long re- sented the failure of British govern- ments to believe his charges, and those of some of his MIS col- leagues, against Hollis, who headed the agency until 1966. But aside from Wright's circum- stantial and hypothetical case against Hollis, Knightley and other seasoned observers of British intel- ligence point out that much of his book is based on detailed accounts of events in' which Wright himself participated, first as MI5's chief scientist and later as its head of re- search and informal liaison officer to U.S. intelligence. Wright describes his early years with MIS as a "fun" period during which he and his colleagues "bugged and burgled our way across London at State's behest, whilst pompous bowler-hatted civil ser- vants in Whitehall pretended to look the other way." These endeavors were aided, he says, by the British post office, which shared part of its headquar- ters with a permanent MIS mail interception team. The post office also ran the telephone exchange system, and shared information and assisted in bugging. According to Wright, additional help frequently was obtained from newspapers and broadcasters who were in MI5's pocket. Wright is critical of the lack of a comprehensive clearance process for MIS agents. His own introduc- tion into the service, he says, con- sisted of a light-hearted interview in which he was asked if he'd ever been a communist or a "queer." During training, he says, he was told of the service's "Eleventh Com- mandment . . . Thou shalt not get caught." Continued Approved For Release 2006/01/03 : CIA-RDP91-00901R000100010001-8 Approved For Release 2006/01/03: CIA-RDP91-00901R000100010001-8 It was this lack of a clearance procedure, Wright says, that al- lowed so many British communists and fellow travelers from the 19308 to enter British intelligence. Wright spent much of the 1960s in a massive MI5 effort, instigated partly in response to American sus- picions, to reinvestigate the "Ox- bridge" crowd from where proven spies like Burgess, Maclean and MI6 double agent Kim Philby had emerged. As a result of his "vetting of an entire generation," Wright says, he discovered as many as 40 "proba- ble" Soviet spies, many of whom he names in the book. Few prosecu- tions or even interrogations re- sulted, however, because of what Wright maintains was the reluc- tance of senior officials to cause a politicai stir or increase American worries still further. It was also during this period that MI5, spurred in part by the Angle- ton report, began to investigate Wilson. Wright says his own suspi- cions had begun with the mysteri- ous death in 1963 of Labor Party leader Hugh Gaitskill: Gaitskill, on the party's right, was replaced as leader by the left-wing Wilson, who 18 months later was elected prime minster. According to Wright, MI5, with assistance from Angleton, investi- gated the possibility that Gaitskill had been poisoned by the Soviets, who were believed to prefer Wilson. Wilson had at one time worked as the representative of an East-West trading company, and MI5 began secretly to track his association with Eastern European acquain- tances of that period. But the inqui- ries eventually petered out, and in 1970, Labor lost the election to the Conservative Party led by Edward Heath. In 1974, when Heath and the Conservatives appeared likely to be replaced again by the Labor Party with Wilson still at its head, the Wil- son investigations were revived. According to Wright, a group of senior MI5 officers met with him to propose a plan to discredit Wilson. "The plan was simple," Wright says. "In the run-up to the election . . . MI5 would arrange for details of the intelligence about leading Labor Party figures, but especially Wilson, to be leaked to sympathetic press men . . . . word of the mate- rial contained in MI5 files, and the fact that Wilson was considered a security risk, would be passed around." Wright says he balked at partic- ipation in the plot, and refused to allow the conspirators, who he said eventually numbered about 30, or "half the senior staff," to gain access to the Gaitskill file. Despite the smear campaign, Wilson was able to form a minority government after the 1974 elec- tion. But the MI5 campaign against him continued, according to Wright, who says that in the summer of 1975 he reported it to then MI6 head Oldfield. Wright says that Oldfield warned that news of the plot could "blow up" on the intelligence services. At Oldfield's urging, Wright says he reported the conspiracy to then MI5 director general Michael Han- ley, who asked him for the names of those involved. "I need to protect them," Wright says Hanley told him. Approved For Release 2006/01/03 : CIA-RDP91-00901R000100010001-8 STAT STAT "Max said Bush was his man in ARTICLE APPEARED Rewiled lain Craw- PAG LOS ON bi WrOkati'on For Releasf.7 ZP9Pbrg4i )8.3-74DP91-00901R0Al several of the secret flights. "He said he had known Bush from when he [Bush] was director of the CIA." Bush Role in Recruiting Contra Aid Figure Doubted By DOYLE McMANUS, Times Staff Writer WASHINGTON?A key figure in the secret airlift that aided Nicaraguan rebels during 1985 and 1986 was apparently recruited by then-White House aide Lt. Col. Oliver L. North, not by .Vice Presi- dent Geor e Bush, sources familiar wit ?r conrra scandal investiga- tions said Sunday. Felix Rodriivez. a former CIA opZratiCrr who lhelped direct the contra airlift's operations at El Salvador's Ilopango air base, ini- tially went to Central America with "Felix and I were trained as intelligence officers," he said. "We believe in the need-to-know prin- ciple, and I didn't need to know.... When Felix finally came to me, he said: 'Don, I really hate to tell you this, because 011ie [North] asked me not to talk about it." Bay of Pigs Veteran Rodriguez, a veteran of the CIA's abortive Bay of Pigs invasion of Cuba in 1961, went to El Salvador in early 1985 to advise the Salva- the help of a Bush aide,doran air force on operations Gr.s.gg. the sources said. iitiot1172-1- against leftist guerrillas, according ruez has told congressional inves- to Gregg and other associates of tigators that it was North, not Rodriguez. Gregg, who asked him to help the Later that year, North and re- tired Air Force Maj. Gen. Richard V. Secord began organizing a new airlift operation for the contras. The Nicaraguan rebels' main air ',base was in Honduras, but North and Secord wanted to use El Salva- dor's main air base as well, partly because Honduran authorities were ' restricting contra operations there, U.S. officials said. " The letter obtained by investiga- tors, dated Sept. 20, 1985, asks Rodriguez to seek the approval of 'El Salvador's air force chief, Gen. ? Juan Rafael Bustillo, for the airlift's use of Ilopango, according to one ? contras, they said. Investigators have also obtained a letter, apparently written by North in 1985, asking Rodriguez to help with the contra airlift and warning him not to tell anyone of the plan. Gregg said Sunday that the new evidence confirms the contention of Bush and his aides that they were not directly involved in the contra airlift, which North directed despite a congressional ban on U.S. aid to the rebels during 1985 and 1986. The charges of involvement in the Iran-contra scandal have dogged Bush as he has prepared to run for President in the 1988 election. The charges first arose last fall when associates of Rodriguez told reporters that Rodriguez said he had met with Bush and had been conducting operations against the Nicaraguan government from El Salvador with the vice president's knowledge and approval. "The accusations have been that the vice president or I have been running contra operations," Gregg. :laid in a telephone interview. "This ;Shows that those accusations are . . . The fact is, the only time talked to Felix about this thing lvas when he cEune to me to blow the whistle on some people in- rived in the supply operation." Gregg said Rodriguez did not tell about the airlift until August, 4986, even though the two men ere longtime friends source who has seen a copy. "Dear Felix," the letter says, "After reading this letter please destroy it. . . . Within the next 15 days, the [contras') air arm will commence operations with two new types of aircraft . . . for airdrop/aerial resupply to units Inside Nicaragua. "Since this is a completely com- partmentalized operation being handled by the resistance, you are the only person in the area who can set up the servicing of these air- craft," the letter says. Rodriguez and Bustillo both agreed, and the contra airlift began using Ilopango as one of its main staging points. Rodriguez, using the name "Max Gomez," ran the Ilopango operation from a safe house in San Salvador, where his office displayed a promi- nent photograph of Vice President Bush, associates said Rodriguez Gave Warning Last Aug. 8, Gregg said, Rodri- guez came to Washington to warn him that all was not well with the airlift operation. "Some of it, he thought, smelled to high heaven," Gregg recalled. He was afraid these guys [running the operation] would either take the money and run, or?worse-- somehow make themselves attrac- tive enough to get hired by the CIA when Congress restored funding for the Nicaraguan resistance. "He wanted to warn the CIA not to touch them with a 10-foot pole," Gregg said. A few days later, Gregg set up a meeting between Rodriguez and officials from the CIA, the State Department and the NSC to relay the message, he said. Last Oct. 5, one of the airlift's planes was shot down by Nicara- guan forces. To inform the White House, Rodriguez telephoned Gregg's deputy, Army Col. Sam Watson. After the crash, The Times and other newspapers discovered Ro- driguez's link to Gregg. At thelime, Gregg said he had never discussed the contra airlift with Rodriguez, but on Sunday he said: "That was a bad answer, because on one occa- sion Felix came to me and talked about it"?a reference to the Au- gust meetings. Rodriguez also met with Bush three times during the period when the contra airlift was operating, but both Bush and Gregg said the contra issue did not come up. North's direct involvement in the contra airlift during the period when Congress banned U.S. aid to the rebels has been well document- ed. His reported letter recruiting Rodriguez was dated only eight days after his superior, then-Na- tional Security Adviser Robert C. McFarlane, wrote to a member of Congress that no NSC funds were being spent for "supporting direct- ly or indirectly paramilitary opera- tions in Nicaragua." Gregg said Sunday that he had gone to Bush twice to 'offer his resignations first in December, af- ter his link to Rodriguez was revealed, and again last month when the issue was raised again. "I felt the vice president was being unfairly attacked," he said. "But he was superb. His response wast 'Hang in there.' He was ? Approved For Release 2006/01/03 : CIA-RDP91-0090111rer 680111991511-Stat the true s weuict come out." 3 Approved For Release 2006/01/03 : CIA-RDP91-00901R000100010 RADIO IV REPORTS, INC 4701 WILLARD AVENUE, CHEVY CHASE, MARYLAND 20815 (301) 655-4068 STATINTL 001-8 FOR PUBLIC AFFAIRS STAFF PROGRAM NBC Nightly News gA11ON WRC-TV NBC Network DAM April 26, 1987 6:30 P.M. aN Washington, D.C. SUBJECT Oliver North Recruited Former CIA Operative CHRIS WALLACE: The Washington Post reports today that Oliver North recruited a former CIA operative to help supply the Nicaraguan Contras at a time when Congress banned direct U.S. military aid. The agent North recruited was Felix Rodriguez, who has also been linked to Vice President Bush. NBC's Tom Pettit has more. TOM PETTIT: Oliver North was not talking today about any possible connection to the Vice President's office on Contra aid. Nor was the Vice President. But through his spokesman, he did reaffirm his confidence in this man, Donald Grego, the V.P.'s national security adviser, ex-CIA. Gregg is a close friend of the Contra mystery man, Felix Rodriguez, formerly of the CIA. The Washington Post disclosed today that Oliver North recruited Rodriguez in 1985. In a letter dated September 20, 1985, North told Felix Rodriguez details of the resupply operations he would coordinate. Gregg said he did not even know North had recruited Rodriguez until last December. DONALD GREGG: A story with no new facts has just seemed to have achieved a life of its own and goes on and on. PETTIT: Mr. Bush has said he met Rodriguez three times, but did not discuss Contras. Mr. Gregg said he discussed Contras with Rodriguez, but did not tell Bush. STAT OFFICES IN: WASHIAPKRY.ed. C?1-NWMe 2 ? A l Q"iC13 CIA P110- -RD9 0901R000100010001-8 .Nt..7tLS ? uHIL;AL4C) ? DETROIT ? AND OTHER PRINCIPAL CITIES Material supplied by Radio IV Reports. Inc. may be used for file and reference purposes only. It may not be reproduced, sold or publicly demonstrated or exhibited. times? Approved For Release 2006/01/03 : CIA-RDP91-00901R000100010001-8 2 -REPORTER: And you have offered to resign a couple of GREGG: Yes, I have. PETTIT: Mr. Bush says he has complete confidence in Gregg. Mr. Bush also says he has completely lost interest in the Iran-Contra affair. Approved For Release 2006/01/03 : CIA-RDP91-00901R000100010001-8 STAT ARTICLE AMMO ON PAGE --44Mved For Release 2oiegium_pqR-Fip 23 April 1987 /1112%901R0 00100010001-8 Iran aide said to give spy dataTAT,,,T, to U.S. 3y Bernie Shellum nquirer Washington Bureau PORTLAND, Ore. ? An Iranian of- icial secretly passed sensitive intel- igence information, including maps )f Libyan ruler Moammar Gadhafi's leadquarters, to the United States wo months before American planes )ombed Libya last year, according to n Oregon businessman who says he erved as an intermediary. Richard Brenneke. a former CIA Hot, said in an interview that he ecame a courier for a wide array of intelligence information from Iran while trying to win U.S. approval of an arms-for-Iran deal in late 1984. . Ile said he and his associates re- ceived maps of the Gadhafi head- quarters and a number of terrorist training sites in February 1986 from an Iranian air force officer, the source of all the intelligence, and promptly delivered them to U.S. Army and Marine officers through diplomatic channels. Brenneke said contacts in the De- fense Department and the CIA told him that most of the intelligence information he relayed to those offi- cers was accurate and "very, very useful." On April 14, 1986, two months after Brenneke says he delivered the maps, American pilots launched an air strike against Gadhafi's head- quarters inside a military barracks in Tripoli. Gadhafi was not injured, but one of his children was killed and others were hurt. His home and headquarters tent were damaged. Bombs took more than 100 other lives. Brenneke said the Iranian infor- mation identified terrorist training sites in North Africa and the Middle East, and included information on Hezbollah, a Muslim extremist or- ganization in Lebanon that is widely reported to be under the influence of Iran's revolutionary government. He and two associates in France provided some of the information to French and Israeli intelligence serv- ices as well as the United States Brenneke .said. ? U.S. military officers whom Bren- neke identified as recipients of the intelligence information either de- clined to discuss the matter or could not be reached. But court records in New York show that Brenneke and his asso- ciates, Bernard Veillot and John De- Larocque, were negotiating a pro- posed arms deal with Iranian and U.S. officials. Transcripts of tele- phone conversations, tapped by the U.S. Customs Service, also indicate that the three men were aware of covert U.S. arms sales to Iran, through Israel, in 1985, and appear to have learned about White House dis- cussions about authorizing such sales. According to the court record, Brenneke wrote to the Department of Defense on Jan. 1, 1986, saying, "If you wish me to discontinue collect- ing and-or reporting intelligence in- formation to you I will do so. Please let me know." Brenneke said his letters were de- livered to specified military officers by his Portland attorney, Richard Muller, a retired Marine officer. Brenneke's account marks the first reported instance of intelligence in- formation passing from Iran to the United States at a time when the two cquntries were publicly at odds. Iran's ruler, Ayatollah Ruhollah Khomeini, was then denouncing the United States as "the great Satan." rfie Tower report The Tower commission reported Feb. 26 that U.S. officials had sup- plied intelligence information about Iraq to Iran, and about Iran to Iraq, during the time the National Secu- rity Council was arranging covert arms sales to Iran from mid-1985 through 1986. Asked how he knew that Iran's government supported the Iranian air force officer's intelligence offer- ings, Brenneke said he sometimes dealt directly, by telephone, with Ho- jatoleslam Hashemi Rafsanjani, the speaker of Iran's parliament, and with other Iranian officials he said were involved in the negotiations. The Iranians were in desperate need of U.S. warplanes and spare parts, Brenneke said, because their U.S.-equipped air force was in calami- tous condition. Brenneke said the source of the intelligence information, air force Col. Kiamars Salahshoor, acknowl- edged that only five of Iran's F-15s and 10 of its F-4s were operatiooal, and that their pilot-ejection seats had been bolted in place because the mechanisms no longer worked. He described the planes as "suicide machines." In addition, Brenneke said, some of the Iranians he talked with "did not like the Hezbollah movement" and used Ilezbollah to deflect blame for terrorism from Iran. 'Self-serving' The Iranian officials, he said, had (.!a very strong desire to indicate that they were not the source of much of the terrorism activity that had gone On. It was a little bit self-serving in .1ziat they wanted to keep telling ev- erybody, 'Look, it wasn't us. We didn't do it.' The fact that they may have had some control over the peo- ple who did do it, they didn't want to Admit." - Whether the intelligence informa- tion from Iran played any role in the strike against Gadhafi, or in an Oct. 1, 1985, Israeli air attack against the Palestine Liberation Organization's headquarters in Tunisia, could not be determined. `. But Brenneke said the information be and his associates relayed to U.S. intelligence officials included coor- dinates and descriptions of Gadhafi's headquarters and the PLO headquar- ters near Tunis, as well as terrorist sites in Libya, Chad, Algeria and Leb- anon. He said that Gadhafi's head- quarters was specified and that ",everything that related to what Gadhafi was doing in Libya was described." The New York Times reported Feb. 22 that NSC planners had developed a secret objective for the Libya mis- sion ? to kill Gadhafi ? and that Israeli agents had kept the United States posted on Gadhafi's where- abouts until two hours and 45 min- utes before the attack. U.S. officials have denied that the mission was intended to kill Gadhafi. uoistIntO Approved For Release 2006/01/03 : CIA-RDP91-00901R000100010001-8 2. Approved For Release 2006/01/03 : CIA-RDP91-00901R000100010001-8 Reliable data Asked if he had received any eval- uation of Iran's information from U.S. officials, Brenneke said he had questioned friends in the CIA and the Department of Defense on that point. "I was told that I was batting well over 90 percent and the majority of it was very, very useful," Brenneke said. Moreover, U.S. officials urged him to continue transmitting informa- tion from Iran even though they were doing nothing to advance the proposed arms transaction in which he and Veillot and DeLarocque were to serve as middlemen, Brenneke said. lie said that French and Israeli intelligence officers also vouched for some of The information. Brenneke said the Iranians pro-, vided the information as an induce- ment to the U.S. government to .permit the weapons sales by his group. In the initial negotiations, Bren- neke said, the Iranians sought a re- sumption of low-level diplomatic talks with the United States, the re- lease of military equipment pur- chased by the shah, and new warplanes and tanks for use in Iran's war against Iraq. . In pursuit of those goals, Brenneke said, Iran offered the United States a captured Soviet T-80 tank and help in obtaining the release of American hostages held by terrorists in Leba- non as well as the intelligence infor- mation on terrorists and their training sites. The Brenneke group's proposed weapons transaction fell through, however. Veillot and DeLarocque ,were indicted in New York a year ago after U.S. Customs agents carried out a sting operation against another group that was trying to arrange an allegedly illegal arms-for-Iran deal. At the same time, U.S. officials were carrying out a covert arms-for-hos- tages swap through another set of intermediaries directed by Lt. Col. Oliver North and other NSC officials. Brenneke said he passed the intel- ligence information on to Lt. Col. Larry Caylor, of the Army Intelli- gence and Security Command, and Lt. Col. George Alvarez, a Marine counterintelligence officer. An advi- sor to Brenneke acknowledged that, at his urging, Brenneke sent his Feb- ruary, 1986 intelligence package, which Brenneke says included the maps and related terrorist informa- tion, to the United States through diplomatic channels from the U.S. Embassy in Paris. Caylor and Alvarez, in turn, passed some information on to Air Force Lt. Col. E. Douglas Menarchik, a security affairs adviser to Vice President Bush, Brenneke said. Caylor said he was forbidden to comment on the matter, and Alvarez and Menarchik could not be reached. Brenneke said that the Iranians would not let him keep copies of any material, and that while it was in his possession he was constantly accom- ? panied by Veillot, a former French navy pilot who, Brenneke says, has flown missions for the CIA in Africa and for French intelligence. ? "They baby-sat me very carefully," Brenneke said. "Bernard stayed with me during the time I had the infor- mation. I read it. I talked to Bernard about it. The sites were marked on a map. And there was some tight text describing in general terms where terrorist training was taking place." He said Veillot was trusted by the Iranians because he had been flying insecticides and other farming equipment to Iran since 1980, and had known Salahshoor since before the Khomeini revolution overthrew the shah. Approved For Release 2006/01/03 : CIA-RDP91-00901R000100010001-8 SAN DIEGO UNION Approved For Release 2006/011073 A-00901R000100 )10001-8 STATINTL But is spying on CIA recruiters really spying? By Christopher Reynolds, Staff Writer The San Diego Hilton, 0900 hours. Observed approximately 120 young men and women, very serious, taking papers at the door of the Monte Carlo Room, sitting at rows of tables STAT inside. Three letters on the sign by the door: "CIA." Woman at door identified as Kathleen A Ball, Central Intelligence Agency recruiter, clay for Operations personnel, can se in Los Angeles. In town yesterday to follow up on advertisements in local newspa- pers. It is a career with new horizons. You will frequently live and work in foreign lands and interact with persons on'all levels, said the ad. You will find yourself in situations that will test your self-reliance to the utmat situations that demand quick thinking to solve problems "Some of the people who work for the CIA can't admit that they work for it ... They've got to be paid clan- destinely, covertly ... It's payroll, OK, but it's payroll with a twist." In all departments, new employees make $22,000 to $35,000, depending on qualifications. Training period, espe- take years. Career dedication is ex- pected. Outside intelligence: In 1986, infor- mal survey by The Washingtonian magazine found that CIA "emerged decisively as the best place to work in government." Various observations from George on CIA life: on the spot. ? Undercover work is "a people "Good morning, ladies and gentlemen," said business, ladies and gentlemen. It's Ball. "Welcome to your introduction to the wall-to-wall, belly-to-belly people." CIA." ? "People commit espionage, be- Ball yielded floor to George (last name tray their governments ? whatever unascertainable), former "operations officer" you want to call it ? for the same now in recruiting, who gave briefing. ,reasons you do everything else in "I'm here to talk about career opportunities !life." in the Central Intelligence Agency, not about ? "There is a Myth abroad that United States foreign policy," said George. not a sparrow falls but the CIA shot George perhaps expected criticism, given a it down. It's not true, but it is be- Wednesday court case in which Amy Carter lieved." and Abbie Hoffman (extensive personal files ? "Most people feel that if they're available on on request) were found not guilty in , doing something they're not posed to be doing, it should be dark outside." Brief story on CIA work and its strains on family life. On one assign- ment, George was Cub Scout den leader. On night of father-son dinner, "I had to go and have a meeting My son said, 'Why did you do that to me, Daddy?' Well, I couldn't say, 'I'm Northampton, Mass., in an anti-CIA protest After the jury decision, unsuccessful - pro- secutor said message meant "middle America doesn't want the CIA doing what they are doing." But no complaints here. Only respectful si- lence. Group estimated 65 percent male, 20 percent in dark suits. Mostly white. Several men in short, military-style haircuts, two women carrying babies. On tables before them, pitchers and glasses holding ice cubes, clear liquid. Probably water. Data from briefing: CIA is hiring in several departments, em- phasizing its Operations Directorate ? which usually means service abroad with clandestine contacts and all the rest. Requires bachelor's degree, foreign language aptitude, is open only to those under 35 years of age. Other departments include Intelligence, where incoming data is analyzed; Science and Technology, where ideas for spy satellites, tiny cameras and Glomar Explorer submarines originate; and Administration, which is like any company's administration, George said; "but with a twist." Payroll, for instance. a spy and I work for the United State government.' That doesn't sit very well with a 7-year-old." Two warnings concerning lifestyle: One ? "The CIA is a drug-free en- vironment ... We will investigate your drug history." Two ? "What we are looking for is areas of vulnerability ... Extreme hetero- or homosexual behavior is something we look at very carefully, and worry about." Same room, 1040 hours. Kathleen A. Ball took questions on application procedures, explained that brief per- sonal interviews would begin in a moment. George offered advice on what to tell friends about meeting: Approved For Release 2006/01/03: CIA-RDP91-00901R000100010001-8 "If you are a serious candidate, start laying the groundwork ... Start talking about overseas work, start talking about the government, start talking about the Washington area, but don't talk about the CIA." Applicants rose, formed lines with minimum chit-chat. Reactions: "I've done video production, and photography, and I've lived in for- eign cities before," said a woman, thirtyish, in a gray suit. "And I've always been curious about the activi- ties of the CIA. I'm interested." Further down hall, young man in military haircut leaned over applica- tion form. Spoke politely but firmly: "I don't want to talk to any reporters about anything. Sorry." Other reactions: "I saw the advertisement in The Wall Street Journal," said man, 31. Said he previously held aerospace in- dustry job ? "military hardware, so I thought this was right in line." Another man, 27, said he was born in Iran, became U.S. citizen two years ago. Would like assignment "either in the Middle East or Europe ... It's a matter of gathering the in- formation ? somebody has to do it." A woman, 21 years old, in crisp, blue blazer. Said she was a college senior, political science major, home for spring break, taking opportunity to apply for CIA. "I liked it," she said of presenta- tion. "I'm interested." Privately, in hallway, George esti- mated that "probably one or two" of those present would attain CIA em- ployment. Noting good turnout, he said interest has remained stable in the two-plus years he has been re- cruiting. Front table, 1105 hours. Between interviews, Kathleen A. Ball looked up to find reporter seeking business card. Warned strongly against using names of applicants, loudly warned applicants that mention by name in paper means end of career in espionage. Urged reporter to write "good story." If not, she said, voice turning mock-sinister, "We have ways ... " She appeared to be kidding. STA Approved For Release 2006/01/03: CIA-RDP91-00901R00010 CITY PAPER 10 April 1987 THE COMPANY'S CAMPUSES WHEN ANN LOWELL showed up for her interview with a campus recruiter from the Central Intelligence Agency last spring, she ex- pected to meet a lean, gruff interrogator, hardened by years of spying on the Krem- lin. Instead she was greeted by an overweight, balding man who said he sat behind a desk most of the day. During the next half-hour Lowell learned that the CIA is not just in the market for James Bond-types. Rather, CIA job openings include slots for secretaries and mathematicians, journalists and zoologists, machinists and psychiatrists. Lowell, who was graduat- ing from GU's School of Foreign Service (SFS), wanted a job with an interna- tional focus and had set her sights on investment banking or retailing. Then she noticed a CIA recruitment notice posted at GU's Career Plan- ning and Placement office encouraging students to sub- mit resumes for review. Lowell was curious. She handed in her resume, and several weeks later she was granted an interview. Although Lowell decided after the interview not to pursue a CIA career, dozens of students from Georgetown and other local universities have completed the pro- cess and been recruited by the Agency, which generally visits each campus twice a year. D.C. colleges, in fact, are leading suppliers of new CIA blood?last year, GU provided the CIA with more recruits than any other school in the country, followed by George Washington Uni- versity, the University of Maryland, and Ameri- can University. Harold Siumaughief of the CIA's Washing- ton-area recruitment center, won't disclose the number of students recruited from D.C. schools. He says that information would facilitate "the opposition's" ability to determine the size of the CIA's training corps. Simmons does divulge, however, that GU is absolutely "a gold mine" of applicants for entry-level positions. "It's easy to see why so many students [at GUI are interested in us. What better place is there for a career overseas?in international. relations, area stu- dies, area disciplines? Georgetown is recognized for those things, so it's only natural." Bruce Norton, director of American Universi- ty's political science program, contends that the CIA's popularity at AU says more about the students than the university. "Students of the '80s are far different than students of the '60s," says Norton. "They're not quite as ideologically committed to the left as they were at one time." Becky Weir, coordinator of on-campus re- cruiting programs at the University of Mary- land, credits the CIA's popularity at her school to the fact that its students, over 70 percent of whom are from the D.C. metropolitan area, have a natural orientation toward government careers. "A good number of their parents or relatives work for the government already," says Weir, "so that's what they're used to. And they wouldn't ever think to protest." Hugh LeBlanc, chairman of George Washing- ton University's political science detiartment, sees the CIA's appeal differently. "People are looking for jobs," he says, "and [the CIA isl hiring. They offer a lot of opportunity. It's as simple as that." Ann Lowell abandoned the CIA because she found the opportunities at the Agency limited. "After hearing the man speak, I felt like I was at their mercy," recalls Lowell. "I didn't geI the impression that I would have any control over my career. I also figured it would be hard to switch careers, given the degree of secrecy that would forever surround my background." CIA recruiter Simmons says it's a misconccp- Approved For Release 2006/01/03: CIA-RDP91-009 0010001-8 STATINTL tion that a CIA career is limiting. "You can really move around in a unit. And the CIA has four directorates: Administration, Intelligence, Opera- tions, and Science and Technology. So there's always a place or a position for you once you're in." Simmons points out that CIA employees are so satisfied with their work that the Agency's attrition rate is only 3 percent. "I don't want to gush sugar out of my lower lip, but the CIA is a very exciting place to work," says Simmons. "The Agency provides its profes- sionals with whatever technology they need to et the job done, and after three decades I can't agine working anywhere else." Harold Bean, a retired CIA official who serves STAT as U's agency officer in residence, is equally enthusiastic. "After 35 years in the outfit, I can safely say that the CIA is a good employer," he says. "And it doesn't exactly look too bad on a resume either." GU's Career Planning and Placement Direc- tor Eric Schlesinger is less exuberant about the CIA path. Although he applauds the efficiency and organization displayed by the CIA's campus recruiters ("I wish that every recruiting organi- zation were as responsive to us as they are"), he acknowledges that a career with the CIA "raises questions" about the kinds of lives students want to lead. Schlesinger recounts the story of a George- town graduate he met at a CIA-sponsored brief- ing several years ago. "The woman," he recalls, "worked in the directorate of Intelligence, and she said that her work is the closest thing to the academic world outside of the university setting, where all she does is read, write, and research. But unlike an academe who can be published and present papers at conferences, she will never have that opportunity." CIA recruitment has raised discontent on scores of campuses around the country?but not because it's a limited career. Protesters charge that the CIA's support of the contras violates several national and international laws. On March 19, the last time CIA recruiters set up shop at GU, two dozen picket-toting students gathered, chanting "break the tics to murder and lies?CIA off campus." The students, calling themselves Students Against the CIA on Cam- pus, hung effigies representing "victims of direct and indirect CIA operations," passed out litera- ture detailing what they consider the wrongdo- ings of the CIA, and demanded that the univer- sity end all affiliations with the Agency. So far, Georgetown and GW have been the only sites of organized student protest. Elsewhere, the scene is more lively. In a series of anti-CIA protests at the University of Massa- chusetts in Amherst, 71 people, including former President Jimmy Carter's daughter Amy and former Yippie leader Abbie Hoffman, were arrested last November. The CIA subsequently canceled and relocated its interview sessions. CIA recruiters moved off campus following protesting at the University of Vermont as well. (In addition to anti-CIA rallies, the UV protes- ters "mined" the entrance to the off-campus interview site with eggs buried in beds of wood 01A 1 17stiprattfro protesters at the University ' 1este3IA's mining of Nicara- a I of Connecticut claim their actions this fall force.ihrtti , the CIA to cancel UCo0IPPR448k4 itafeRfileas for the first time in 16 years. CIA spokesperson Sharon Foster says anti- CIA student protests are not new, "I think that we have always had some demonstrations against us at some schools," she says. However, Foster says, "there has been an increase in the last year or two." Foster notes that the Agency "comes on cam- pus the same way that any recruiter does, and that's by being asked by a placement director because [students] are interested in being hired by us." As for the recent rash of protests, Foster hastens to explain that the CIA is "not a policy- making agency; that's made by the White House. We are the implementors of policy." Former CIA official Harold Bean understands why students attack the agency. "If you're against the United States' foreign policy in Cen- tral America, it's hard to protest in general," he says. "It's much more convenient to protest the CIA." The CIA recruits on about 200 college cam- puses annually and Foster says that applications have risen dramatically, doubling from 1985 to 1986. She attributes this to stepped-up advertis- ing and recruiting efforts by the Agency, which has seen a budget increase during the Reagan years. Foster says that although some highly expe- rienced and skilled recruits garner as much as $32,000 their first year on the job, most recruits with B.A.s and no experience start at between $18,400 and 322,500. Describing the logistics of the CIA's campus recruiting effims, Georgetown's Schlesinger says that the Agency usually visits GU twice a year, in the fall and in the spring. Exactly how they screen applicants varies, he adds, but in the fall the only criterion was that applicants be U.S. citizens. Other than that, anyone on the bacca- laureate or graduate level was eligible to submit a resume for. review. Of those who applied, 28 were selected by the CIA to be interviewed. The CIA's extended interview process can take up to six months to complete. That deterred Lowell who was eager to land a job and discour- aged by "all the red tape." The CIA's Simmons says the recruitment process is necessary because "we have to see how the applicant measures up to the average professional employee on board with us." Applicants must complete an 18-page per- sonal history statement and a battery of tests, including the California Psychological Inven- e 2119610.1J03 teGitilieRIBRO lis008011fte0,0100010001-8 most of whom are interviewed. (The CIA's Fos- ter won't reveal the cost of these security checks.) A polygraph test is another requirement, and if I the Agency is pleased with the results, the appli- cant is then called in again, this time for "a more vertical interview," says Simmons. Simmons is quick to note that homosexuals need not apply for CIA jobs. "They're deriva- tions from the norm," he says. The same goes for felons, as well as habitual drug users and pushers, although casual drug use in the past doesn't dis- qualify a candidate automatically. Simmons says that the Agency is more intent on finding a person of a particular "type," rather than one with a designated background. Quoting a CIA pamphlet, Simmons says that applicants should have "first and foremost, the drive to achieve." What does the GU/CIA connection say about the university? "I think if you read the mission and goals statement of the university it talks about international focus, leadership in interna- tional arenas, service to the country. So it's a rather obvious fit," Georgetown's Schlesinger says. "Some people might think it's a more obvious fit than an investment bank might be.... "This university and this office host equally and in the same way a representative from the CIA, the Catholic Relief Service, the military armed forces establishment, or the Peace Corps." Claire Carey, assistant dean of GU's College of Arts and Sciences, also sees no reason to "read any philosophical implication" into the GU- CIA link. But Carey has troubk fathoming the notion in the first place. "If students really knew the extent of what the CIA does, I can't see how they'd be attracted to it," she says. Bean regards such comments as a reflection of limited knowledge about the Agency. "(Most peoplel imagine the CIA as very conservative, and they picture a lot of Rambo-types running around. But it's neither as dramatic or dangerous as it's portrayed in fiction, and I've never been able to identify a particular political type." CP xttio% Approved For Release 2006/01/03 : CIA-RDP91-00901R000100010001-8 Approved For Release 2006/01/03 : CIA-RDP91-00901R000100010001-8 Pet rod CM official Harold Bear . now GU's .AgencV #14' lgort Go Nome 4 GC. Protest Approved For Release 2006/01/03 : CIA-RDP91-00901R000100010001-8 STAT STAT UNITED PRESS INTERNATIONAL Approved For Release 2006/01/0?Prt1A1.F05P91-00901R000100010001M MAGAZINE SAYS BUSH HIRED COMBAT ADVISER FOR CONTRAS fh, WASHINGTON The office of Vice President George Bush sent a former CIA agent to Honduras in 1983 to work as a combat anti-ser for U.S.-backed Nicaraguan rebels, a magazine reported Thursday. The Progressive quoted U.S. intelligence sources and rebel leaders as saying the ex- CIA agent, Gustavo Villoldo, went to Honduras with a letter of recommendation from Bush's national security adviser, Donald Gregg, named in earlier Contra-aid efforts. Larry Thomas, Bush's press secretary, denied the report. "The name Gustavo Villoldo means absolutely nothing to the vice president," Thomas said. "Donald Gregg insists that he does not know a Gustavo Villoldo." Matt Rothchild, managing editor of The Progressive, a monthly publication n Madison, Wis., said: "We stick by our story," by freelance reporter Allan Nairn. "Gregg knew the guy," Rothchild said in a telephone interview. "He wrote a letter of recommendation for him. Whether the vice president knew him or not, we're not sure." Villoldo, identified in the article as a Cuban-American who participated in the Bay of Pigs invasion, could not be reached for comment. Gregg's name has surfaced before concerning Contra aid shipments. Last August, he set up a meeting between former CIA officals and members of the CIA and Defense and State departments to discuss concerns by a former CIA official,.J.111122gElaaez, about aid to the Contras. Gregg said in December that he did not learn until afterwards that Rodriquez, a former protege, was deeply involved in private arms shipments to the rebels. Gregg, in an interview with The New York Times, also insisted that neither he nor Bush had any links with the network, beyond knowing Rodriquez. On Dec. 14, however, United Press International quoted a White House official as saying Lt. Col. Oliver North had complained last spring that Gregg was "pushing" for hiring Rodriquez to help manage the arms network. North was fired from his National Security Council post Nov. 25 for his role In the diversion of up to $30 million in profits from clandestine arms sales to Iran to the Contras. The arms sale and the diversion of funds to the Contras is now the focus of congressional and independent investigations. The Progressive quoted former intelligence agents as saying Villoldo was one of several individuals recruited by Gregg to work outside normal CIA channels and to provide military aid for the Contras. The magazine quoted U.S. officials who it said served in Honduras, as saying Villoldo was permitted to run his own semi-autonomous Contra support operation. "We restate that neither the vice president or anyone on his staff has directed or coordinated any operation in Central America," Thomas said. "We've stated the facts as we know them and we are cooperating fully with all the formal inquiries underway into the subject," Thomas said. Approved For Release 2006/01/03 : CIA-RDP91-00901R000100010001-8 ? Approved For Release 2006/01/03 : CIA-RDP91-0090' R000100010001-8 RADIO TV REPORTS, INC. 4701 WILLARD AVENUE, CHEVY CHASE, MARYLAND 20815 (301) 656-4068 STATINTL FOR PUBLIC AFFAIRS STAFF MOGRAM CBS News Nightwatch STATION WUSA-TV CBS Network DATE April 9, 1987 3:00 A.M. Washington, D.C. SUBJECT Melvin Beck Discusses U.S. and Soviet Intelligence CHARLIE ROSE: Sex spy scandals and Soviet bugging of U.S. Embassies in Moscow have caused deep concern for our national security. Now critics are questioning the U.S. Goverment's role in failing to protect secrets and foresee Soviet attempts to spy. With us to talk about Soviet, as well as U.S., spying is Melvin Beck, a former CIA counterintelligence officer. Welcome back, Melvin. MELVIN BECK: Thank you. ROSE: You once wrote a book called "Secret Contenders: The Myth of Cold War Counterintelligence." Is one of the myths of Cold War counterintelligence the idea that the United States doesn't do it as much as the Soviets do? BECK: No, that's not a myth. The United States does it, just as the Soviets do. ROSE.: Okay. The same thing. I said the myth is .that we don't do it. So the reality is that we do it every bit as much as they do, in terms of trying to spy. BECK: Right. ROSE: In what way do we go about our own efforts to spy on the Soviets, both in the United States, in terms of their embassy, and at Soviet Embassies around the world? You know, how do we go about it? OFFICES IN: WASHINCek/i463lAd FoHRWrefite 2006101103-sCIA-REOP94?0090fROCTil 000*0003P8R PRINCIPAL CITIES Material supplied by Radio N Reports, Inc. may be used for file and reference purposes only. It may not be reproduced, sold or publicly demonstrated or exhibited. Approved For Release 2006/01/03 : CIA-RDP91-00901R000100010001-8 2 BECK: Well, my experience, of course, has been in Soviet Embassies around the world, and specifically in Cuba -- that was during Fidel Castro's time -- and in Mexico, Mexico City. In Mexico City, I was under deep cover, so my activities were a little bit apart from the norm of a station officer. At any rate, it's very difficult. I'll take the Mexico City operation first. It's very difficult to bug the Soviet Embassy. Because if there's anybody that approaches close to absolute security, it's the Soviets. They've been in the business ever since 1917, from the time of the Revolution. And they are just that secure. So, the only way, really, that you can get an inside look at a Soviet Embassy is -- in my case, it had to do with double-agent operations against the KGB. ROSE: Find a KGB agent and turn him. BECK: Well, not an agent, neces -- yeah, that's right. Find a KGB agent and turn him. ROSE: My point, I guess, is asking: Is there anything that the Soviets do that we don't do, in terms of spying? Are we more gentlemanly about this? Are we more -- do we have different ethical boundaries? BECK: Oh, no. No, we don't. ROSE: If we had an opportunity, we would put bugging devices in their buildings, if we could. BECK: Oh, if we could, of course. ROSE: Su, they may be better -- because of the differ- ent system and more control, they may be better at preventing us from... BECK: Yes. That's my point. ROSE: That's your point. BECK: Yes. ROSE: Are you surprised that they are able to compromise these Marines in Moscow? BECK: Well, after the fact, no. No. Because it's nothing new for the Soviets to attempt to find the weaknesses of anybody. ROSE: Everybody tries to du that. Approved For Release 2006/01/03 : CIA-RDP91-00901R000100010001-8 Approved For Release 2006/01/03 : CIA-RDP91-00901R000100010001-8 3 BECK: Yeah. We do, too. Exactly. That's the point. You try to find the vulnerability. Well, the Soviets, who certainly knew of the vulnerability of the Marines in Moscow and what their needs were, in terms of amorous adventures and such, simply took advantage of it. That was a simple operation. ROSE: How many KGB agents did you turn while you were in counterintelligence? RECK: Turn? ROSE: Yeah. Get them to become a double agent. BECK: Oh. I ran about -- while I was in Mex -- this never happened in Cuba. But in Mexico City, I would say I was running or participating in at least a dozen. ROSE: A dozen KGB agents? BECK: Oh, yes. A dozen operations, double-agent operations. And easily, there was a different KGB agent-- I mean a KGB officer, not an agent, for the operations. And there's no problem in knowing who the KGB intelligence officers were in Mexico City. ROSE: Do you think we penetrate the Soviets as well as they penetrate us? BECK: I can't believe it. We don't. ROSE: They do a better job at spying than we do. BECK: I wouldn't put it in those terms. They do a better job penetrating. ROSE: What's the difference? BECK: The difference is that there can be all kinds of penetrations: buggings, compromises, and so forth. But the results of them, both for the Soviets and for the CIA, are rather disappointing. In other words, my belief is, and through my experience, and particularly from double-agent operations, that this is a sort of a game that goes on. They try their wiles. We try our wiles. Neither one of us gets a hell of a lot of intelligence out of it. But it's the game. It's the nature of the game. It goes on. Approved For Release 2006/01/03 : CIA-RDP91-00901R000100010001-8 Approved For Release 2006/01/03 : CIA-RDP91-00901R000100010001-8 4 ROSE: But soon as you say that -- and I've got to close on this point -- we're talking about KGB agents in Moscow going in the American Embassy and having access to we don't know what, as well as bugging our typewriters and knowing the codes. That's a lot. BECK: They found the agent who would allow them that access. That is something really extreme. ROSE: That was a real coup for them. BECK: That was a coup. No question about it. ROSE: Melvin Beck, it's always a pleasure to have you. Thank you. Approved For Release 2006/01/03 : CIA-RDP91-00901R000100010001-8 STAT STATINTL roved For Release 2068/1011/6S4F6R-14100901R00010001000 ARTICLE APPEARttiP 20 March 1987 ON Bush Aide Denies Report Of Saudi's Gift for Contras By a WALL STREET JOURNAL Staff Reporter WASHINGTON ? Vice President Bush's chief spokesman strongly denied a published report quoting a central fig- ure in the Iran-Contra scandal as saying that he sent Mr. Bush a $1,000 check for the Nicaraguan resistance move- ment. The allegation by Saudi businessman Adnan Khashoggi was published in yes- terday's Washington Times. The news- paper said that Mr. Khashoggi, who helped finance the sale of U.S. arms to Iran, asserted in an interview that he was invited to a lunch, hosted by Mr. Bush in 1985, aimed at raising funds for Contras. During most of 1985, Congress barred U.S. aid to the rebels. Mr. Bush's press secretary, Larry Thomas, described the story as "false and misleading." Mr. Thomas said the vice president had never solicited funds from Mr. Khashoggi for the Contras. hadn't hosted a lunch involving Mr. Khashoggi and had never accepted any money from him. Mr. Thomas said Mr. Bush made brief remarks to a conservative organi- zation at a White House briefing in March 1986 on lobbying efforts to sup- port the administration's Contra-aid package then pending before Congress. The vice president's office released an exchange of letters between Mr. Bush and Mr. Khashoggi. A March 1986 letter from Mr. Khashoggi showed the Saudi expressed support for the aid pro- gram, and said he had two representa- tives at the briefing. But the letter doesn't mention a contribution. In April, Mr. Bush sent Mr. Khashoggi a letter thanking him for his support. 1-8 Approved For Release 2006/01/03 : CIA-RDP91-00901R000100010001-8 STAT *MAHE elease 2006/01/03 : CIA-RDP91-00901R0001000 WASHINGTON TIMES 19 March 1987 10001-8 STATINTL ush channeled Contra cash Khasho By Michael Hedges THE WASHINGTON TIMES A central figure in the Iran- Contra affair said he gave Vice Pres- ident George Bush a $1,000 check for the Nicaraguan resistance in 1985, months after passage of a law forbidding U.S. aid to the Contras. "Vice President Bush was trying to raise m7iTeTright and left for the Nicaraguan resistance in 1985," Ad- nan Khash_gggi, 'an international .wc-krabian financier linked to the Iranian arms deals, said in a week- end interview with Arnaud de Borchgrave, 'editor-in-chief of The Washington Times. Mr. Khashoggi also said Iranian arms dealer Manucher Ghorbanifar received a request from Lt. Col. Oli- ver North asking the government of Saudi Arabia to raise $100 million for the Nicaraguan resistance. He said Mr. Ghorbanifar ap- proached him in London with the idea. "North asked me to ask you whether you could raise $100 million for Nicaragua because you will be able to get a lot of favors from the administration," Mr. Khashoggi re- called Mr. Ghorbanifar as saying. Mr. Khashoggi said he refused to take the offer to the Saudi king. "Look, Iformer President Rich- ard' Nixon was my best friend in his administration and he couldn't help me or my business one iota," Mr. Khashoggi said. "All these guys can do is offer you an embassy abrOad, and since I'm not going to be a U.S. ambassador, forget about it." Larry Thomas, the vice pres- ident's press secretary, denied the Khashoggi allegations. "The vice president has never so- licited funds for any N icar a guan re- sistance effort," Mr. Thomas said. "He doesn't know them 1Mr. Kha- shoggi or his aide.' There exists no record of correspondence between the vice president and either of the - gentlemen you mention." In October 1984, Congress passed the Boland Amendment that prohib- ited the U.S. government from giv- Approved For ing support, directly or indirectly, to groups fighting the Marxist Sandin- ista government in Nicaragua. The State Department was autho- rized in 1985 to solicit humanitarian aid from third countries for the Con- tras. Mr. Khashoggi said he was invited to a lunch, aimed at raising money for the Contras, hosted in 1985 by Mr. Bush. Mr. Khashoggi said he sent the vice president a check for $1,000 through an aide and received a "form" thank-you letter in return. Mr. Khashoggi showed Mr. de Borchgrave a copy of the letter dur- ing the interview. "They have been very careless," he said. "You don't know whether to laugh or cry when you see these things. It's amateur night at the op- era. This Bush thank-you letter is a classic example of how not to do things." Mr. Khashoggi also told The Washington Times that the CIA ei- ther through ineptitude or deliber- ate sabotage destroyed negotiations between the National Security Coun- cil and the Iranians, blowing what- ever chance existed to get American hostages out of Lebanon, He said retired CIA agent George Cave, a fluent Farsi speaker who traveled to Tehran with former Na- tional Security Adviser Robert McFarlane last year, "cooked his own deal to release some hostages quickly by giving the Iranians $500,000 worth of TOWs f missiles j quite separate from the other deals we know about." Mr. Khashoggi said this offer cre- ated conflicts among factions of the Iranian government that led to the negotiations falling apart. "It sab- otaged the entire initiative," he said. When asked to assess Mr. Cave's motives, Mr. Khashoggi said, "Was the CIA jealous of (Col] North's net- work? Definitely deliberate sab- otage." According to the Tower commis- sion report on the Iran-Contra affair, Mr. Cave acted as an analyst and in- terpreter for Col. North, then a White House national security aide, and Mr. McFarlane during their May 1986 triv lo Iran Release 2006/01/03 : CIA-RDP91-0090 Mr. Cave said in statements quoted by the Tower commission that he was highly suspicious of Manucher Ghorbanifar, the Iranian middleman involved in the deals, and that he believed Mr. McFarlane's involvement in the negotiation was a mistake. "It was quite clear that Ghor- banifar was lying to both sides to blow this deal up as big as he could," Mr. Cave wrote. "We should not have subjected a senior U.S. official [McFarlane] to the indignities he was forced to endure." Mr. Khashoggi was the leading fi- nancier in the Iranian arms sales. He has been reluctant in the past to talk about his role, but in recent ex- tensive public statements he has given complex and sometimes dif- fering accounts. The U.S. government has success- fully sought to freeze some of Mr. Khashoggi's bank accounts in Swit- zerland. Papers cited by the Tower board suggest he was simulta- neously charging Mr. Ghorbanifar and Lake Resources, the company used by Col. North in the deal. In the interview, Mr. Khashoggi vehemently denied that he had known Mr. Ghorbanifar for years as Mr Cave testified before the Tower commission. "A lie, totally and completely false," he said. In the interview, Mr. Khashoggi criticized U.S. foreign policy, princi- pals in the Iranian arms deals and President Reagan. Asked if Mr. Reagan had knowledge of diversion of funds from the deals to the Contras, he said, "The president was informed in a general way, while he was adjust- ing his tie for a photo opportunity, or getting ready to leave for Camp Da- vid, that everything was on track, that the Contras were being taken care of." He claimed that Israeli arms mer- chants Yaacov Nimrodi and Al Schwinuar.r skimmed $5 million in profits from early weapons deals they brokered, which angered Iran- ians who were expecting kickbacks 1ROVV1201Y011/0001-8 he Israelis had pocketed $5 mil- C.,rtmtiee Approved For Release 2006/01/03 : CIA-RDP91-00901R000100010001-8 lion. Nothing for our friends in Iran who had been led to believe they would be getting a chunk of it as seed money for the pro-Western faction," he said. Mr. Khashoggi's comments in- cluded a claim that he warned Is- raeli official Amiram Nir and Mr. Ghorbanifar that they were tempting the Iranian government to take more hostages by backing the arms-for-hostages deals. "I said, 'Gentlemen you are play- ing with fire. The moment these mullahs understand how easy this has become, they will understand what they have to do to get from the Americans whatever they want. 'lb- morrow they can kidnap an Amer- ican from the Athens Hilton bar, from here, there and everywhere.. You are simply whetting their appe- tite: " Approved For Release 2006/01/03 : CIA-RDP91-00901R000100010001-8 Approved For Release 2006/01/03 : CIA-RDP91-00901R000100010001-8 WASHINGTON POST A Al 18 March 1987 owland Evans and Robert Novak e Republicans Aren't Ready Yet NASHUA, N.H.?When G_e_A.sge Bush used his preferential sMi. Iry r-fhilrear's first full-fledged Republi- can presidential cattle show to deliver a yawner in praise of the CIA, it was the finishing touch on a weekend demonstration of how unready the party is for 1988. Since the vice president used his political power to demand and secure privileges denied six other hopefuls at the northeastern regional party con- ference, the prospect of his Saturday luncheon speech excited speculation. It did prove a surprise. Sometimes labeled the resume candidate, Bush devoted his full 20 minutes to one item on that resume: his year as Gerald Ford's CIA director. That demonstrated fraditv and brit- tleness in the front-runner's campaign, but his pursuers were not measurably more impressive. Sen. Robert J. Dole reflected organizational start-up prob- lems with an erratic, unimpressive showing. Rep. Jack Kemp was better than that but not good enough to seize imaginations. The also-rans showed why they are also-rans. Thus, what could have been a disas- ter for the vice president instead proved his challengers are not ready for prime time. In the very city where Bush's insensitivity during the famous 1980 debate clinched Ronald Reagan's nomination, his competitors failed to exploit Bush's ham-handed power politics. Gov. John Sununu, Bush's chairman in this first primary state, muscled State Chairman Elsie Vartanian into giving the vice president the choice luncheon spot while the others were herded into a Friday-night ghetto lim- ited to five minutes each. The Bush campaign peremptorily assumed the party's function, changing the menu and physical arrangements. Sununu was a palpably pro-Bush moderator as he introduced the Little Six for their speeches. But nobody took advantage, espe- cially Dole. While moving up quickly, the Senate minority leader still has not sorted out personal disputes be- tween his backers. That suggests a possibly endemic weakness, in his po- litical style, as did other aspects of his Nashua appearance. Ile came here after first threaten- ing to boycott the Bush coup, but unlike other members of the Little Six, he skipped the Saturday panel discussions. He discarded prepared remarks Friday night, reverted to form by zinging Bush and filled most of his five minutes with a tired anec- dote of Kansas politics drawn from his basic speech. He then left the room, skipping the keynote address by a non-candidate: Secretary of Educa- tion William J. Bennett. "Bob better decide whether he wants to tell jokes or be a candidate," a potential New Hampshire supporter told us. That opened the door for a virtuoso performance badly needed by Kemp. But while sounding more like a presi- dential candidate than his rivals, he emulated Dote in throwing away pre- pared remarks (which stressed social' issues, partly to woo New Hami24' shire's uncommitted Sen. Gordon" Humphrey). Kemp, though forceful-, affirmed accusations that he remains Jackie-one-note by calling for a flat tax and a sound dollar, Other cattle show entrants ranged from poor to adequate, generating a momentary presidential boomlet for Bennett, who had time enough for a real speech and revived the dozing audience. This raised expectations that Bush might make his solo appear- ance Saturday a tour de force, per- haps asking members of the Little Six still in Nashua to join him on the dais. Although nothing so astute was. contemplated, 'what he did do was hardly less unusual. His strategists were trying to establish Bush creden- tials, independent of the Reagan pres- idency and without any hint of disloy- alty, by delivering an encomium on the CIA. The. resulting speech was most odd for a political event, only twice evoking applause from an audi- ence packed with Bush backers. His performance shows not much has changed in Bush's front-runnei strategy. His handlers welcome the: addition of moderate supporters OL Howard Baker, now departed from, presidential candidate ranks, to his: hard-core party faithful and figure that is enough for the nomination, That explains the question asked us, by Bush's principal political aide, Lee. Atwater, about his chief's absence Fri-, day night: "What good would he have. done himself up there with everybody: else?" Atwater last month asked nearly: the same rhetorical question about Bush's absence from the Conservative. Political Action Conference. That mind-set might move Bush. toward the nomination by using, politi- cal muscle and a polished resume,. while he ignores fair treatment for his opponents and a political vision for. himself. But it may be. a formula for disaster if one of the Little Six breaks out of the pack. ?1987, North America Syndicate, Inc. Approved For Release 2006/01/03 : CIA-RDP91-00901R000100010001-8 STAT STATINTL Approved For Release 2006/01/03 : CIA-RDP91-00901R0001000100 WASHINGTON POST 17 March 1987 01-8 Bush Defends Routing Contra Backer to North United Press International ORLANDO, Fla., March 16? Vice President Bush defended his reTrol a contra supporter to then-National Security Council aide Oliver L. North, but acknowledged today that such inquiries should be sent to the agency chief. . Bush said the letter he sent March 3, 1985, to contra supporter Dr. Mario Castejon of Guatemala, advising him to contact the Marine lieutenant colonel, was a routine correspondence. "I answer my mail and I referred him to the NSC, which I should do," Bush said during a fund-raising swing in Florida. "Frankly, I didn't even read the letter. It was all in Spanish and I don't read Spanish." But Bush said future inquiries should be referred to the head of the National Security Council, rath- er than to an aide such as North, who was later fired in November for his role in the Iran arms-contra aid scandal. Bush's letter to Castejon sur- faced Sunday in a Miami Herald report suggesting that the corre- spondence showed Bush knew more about NSC efforts on behalf of the contras than was previously dis- closed. Bush told Castejon that North "would be most happy to see you" and discuss aid for the Ni- caraguan rebels. The furor was a "non-story," Bush said, unless the public is in- terested in day-to-day administra- tive matters. "It's just smoke." During his appearance in Florida, Bush announced plans to visit Ec- uador Sunday to survey an esti- mated $1 billion damage from an earthquake and to discuss possible U.S. relief. Bush, who planned to attend a series of Florida fund-raisers for his presidential bid, said: "I've never felt stronger politically in my life. It's hard to tell, but I just can't ac- cept the tarnished-image thing." Approved For Release 2006/01/03 : CIA-RDP91-00901R000100010001-8 Approved For Release 2006/01/03 : CIA-RDP91-00901R000100010001 ARTICLE Tar._ ON PAGE WASHINGTON TIMES 16 March 1987 Thornburgh, Bennett steal ovations at GOP's rally weekend in N.H. RE OM By Ralph Z. Hallow THE WASHINGTON TIMES NASHUA, N.H. ? "Rvo leading Republi- cans who are not presidential candidates drew the most applause here at a GOP gath- ering billed as a "weekend with the next pres- ident." The biggest suprise, according to a number of observers, was the performance by former Pennsylvania Gov. Richard Thornburgh, who substituted for Senate Minority Leader Rob- ert Dole on a Saturday panel originally re- served for GOP presidential hopefuls. "The Republican Party should quit apologizing for being the party of business," Mr. Thornburgh told a cheering audience of several hundred GOP officials from 14 Northeastern states. "In a time of economic difficulty when we're losing world markets, somebody has to be the party of business and galvanize the free enterprise system," he said. In another line that drew sustained ap- plause, he said, "In Pennsylvania, we reduced our state payroll by eliminating 15,000 unnec- essary positions from a swollen bureaucracy while the federal government during the last eight years was adding 8,000 new jobs." Though already committed to Vice Pres- ident George Bush, New York State Assemblyman Glen Harris said, "Thorn burgh was the best of the panel speakers." Observers praised the self-confidence and clarity with which Mr. Thornburgh spoke. Mr. Thornburgh, a two-term governor who was required by the Pennsylvania constitu- tion to step down this year, said he "did not come here as a presidential candidate." But he did not rule out a presidential bid. "In the unlikely event none of these [GOP] candidates catches fire, non-candidates will be taking a look and that might include me," he said later in an interview. At Friday night's opening banquet here, Education Secretary William Bennett, the keynote speaker, drew the only standing ova- tion after what many dinner guests described as lack-luster performances by six pres- idential hopefuls who had been asked to con- fine their remarks to five minutes each. Mr. Bennett stressed the importance of family values instead of government action. "The family is the original Department of Health, Education and Welfare," said Mr. Ben- nett, who frequently brings conservative au- diences to their feet. After his speech, someone in the audience handed Mr. Bennett a note suggesting he run for the GOP nomination. He looked around, smiled, then shook his head "no." Mr. Bush, accompanied by his retinue of Secret Service agents and provided with a Teleprompter-like device for his Saturday luncheon address, also generated some ex- citement, particularly when he accused some unnamed Republicans of being "conspic- uously silent" in their support for the CIA. The "lesser candidates," as t1"-e?y?ti to call- ing themselves, shared the limelight during panel appearances Saturday. And, most ob- servers agreed, their performances were bet- ter than Friday night's. In presenting a five-point program for re- storing "the credibility of U.S. foreign policy around the world," Pat Robertson said, "Like it or not, we're the successor in the Free World to the strong, peace-keepingempire that Brit- ain once was." Rep. Jack Kemp of New York, also ad- dressing foreign-policy issues, said the Soviet Union's "approach to arms control is the same as Andy Warhol's definition of art ? it's any- thing you can get away with." Mr. Kemp took on his party's establish- ment, which is divided over whether Pres- ident Reagan's Strategic Defense Initiative should be deployed quickly or used as a bar- gaining chip with the Soviets. "Tho often the Republican Party has be- lieved that if something is popular with the people, as SDI is, there must be something -8 STATINTL wrong with it," he said. Donald H. Rumsfeld, who has served in a variety of top positions in past Republican administrations, agreed with Mr. Kemp that quick deployment of available SDI technol- ogy would not be provocative toward the So- viets. "Our task is not to win nuclear war, but to deter it," Mr. Rumsfeld said, adding that the "two greatest threats to our world are nuclear war and appeasement." ? Choosing to address domestic policy is- sues, former Secretary of State Alexander Haig said the "two flaws in launching the Rea- gan administration were the failure to recog- nize the interdependence that binds all na- tions in trade and economic affairs and a propensity to economic theories that will achieve the millenium." Pierre du Pont used his appearance on the afternoon domestic-policy panel to unveil a plan to end welfare and to repeat his proposal to end all farm subsidies. Friday night, Mr. du Pont, a dark horse largely unknown outside the Northeast, won points from some observ- ers by challenging Mr. Dole, a Kansan pop- ular with farmers, to a debate in Iowa on ag- ricultural policy. "Du Pont was exceptional," said Bush aide Rich Bond. "Challenging Dole was his way of getting into the [presidential] race." Approved For Release 2006/01/03 : CIA-RDP91-00901R000100010001-8 STAT STAT Approved For tRignqq,9fpli9'o.sq1A-RDP91-00901R0001000' 15 March 1987 0001-8 STAT IN IL to?'' Sack Leakers, Bush Says; Robertson Would Seal Border By Paul Taylor fashingtoo Post Staff Writer NASHUA, N.H, March 14?Vice nPresident Bush proposed today that, to plug intelligence leaks, Con- gress restrict itself to a single joint intelligence committee and that the Reagan -administration "make some examliTeri ofle?a-k-ers in our own ran1-5y otiNicht firin.g_them." "I don't believe in the wholesale use of the polygraph, but when le- gitimate national security matters are at stake, I say use it," Bush told several hundred northeastern Re- publican activists at a conference billed as "a weekend with the next president." Needled in the local press for not joining six prospective 1988 oppo- nents at a Friday night kickoff din- ner ("Bushgate," said a Boston Her- ald headline; "GOP Hopefuls Meet Sans Bush" said the Manchester Union Leader), Bush ignored the mini-flap. The tactic drew plaudits from supporters. "To me, he was very vice- presidential," said Victoria Zachos, a former national committeewoman from Concord. "People have been saying he's too wimpy. How can you be a wimp and be the former head of the CIA? I mean, really! It's im- possible." Bush said his 1976-77 duty as Central Intelligence _AAency direc- tor came at the "tail end of a witch hunt that laid. bare the. agency's_in- nermost secrete and wound up costing the lives of some.agenis? He chided "certain Democrats who act as.if?the CIA is an embar- rassment or a threat or just another bureaucracy' and "some Republi- cans who are conspicuously silent in their support.' He did-rioFifa-me names, and his political aides either could not or would-not. If the speech was meant to pro- ject a tough image on matters of national security, Bush had plenty of company. Rep. Jack Kemp (R-N.Y.) this morning called on all Republican candidates?especially Bush?to "join me in pledging to deploy SDI [the Strategic Defense Initiative] as soon as possible so that America is no longer defenseless against in- coming Soviet missiles." Kemp said there is "a fierce de- bate going on in this administration between the president, who be- lieves in deployment, and the State Department, which wants to use it as a bargaining chip." He said early deployment would be his "highest priority' as president and that the first phase could be operational by 1992. "To those who say [SDI] is pro- vocative," Kemp said, "that is the moral equivalent of saying that a policeman with a bulletproof vest somehow provokes criminals." His exposition drew a rave re- view from Marion G. (Pat) Robert- son, a fellow foreign-policy panelist, who told Kemp he was "superb." The television evangelist echoed Kemp's enthusiasm for early SDI deployment, but he also made a pitch for expanding conventional forces to guard against a scenario in which the Soviets move tanks into post-Khomeini Iran and try to acheive a "takeover of the strategic oil reserves of the world." "We are going to have to think about projecting conventional forces"?Robertson mentioned "several divisions and the Seventh Fleet"?"into the Middle East to prevent such a scenario." On another matter, Robertson proposed that the Mexican border "be closed" so that Hispanics al- ready here?as well as blacks and whites?are better able to find jobs. He advocated beefing up the Border Patrol. Former defense secretary Don- ald Rumsfeld, making his first ap- pearance at a presidential "cattle show," also endorsed Kemp's call for early SDI deployment and said the two greatest threats to mankind are "nuclear war and appeasement." He called for a no-ransom antiter- rorist policy. He also endorsed "constructive engagement" in South Africa, saying that sanctions "are not in the interests of the blacks or of the United States." Today's panel discussions were held without Senate Minority Lead- er Robert J. Dole (Kan.), who chose to leave before Bush arrived for star billing as the luncheon speaker. "Hey, if a guy gets a good deal, I say take it," said Dole. "I'd just like to know who his booking agent is." Predictably, operatives for rival camps milled around the hotel lobby grumbling about Bush's Friday night absence. "He hurt himself; he's come off as aloof," said John Maxwell, a Kemp campaigner. But the flap seems likely to be forgotten as quickly as it arose. Bush spent this afternoon meeting privately with party leaders, then taking questions in a supporter's living room?presumably to show he could be the "see me, touch me, feel me" candidate that New Hamp- shire Gov. John H. Sununu (R) said his constituents demand. Approved For Release 2006/01/03 : CIA-RDP91-00901R000100010001-8 PRESS RELEASE 4 Approved For Release 2006/01/03: CIA-RDP91-00901R00010001 THE VICE PRESIDENT OFFICE OF THE PRESS SECRETARY STATINTL FOR RELEASE: CONTACT: (202) 456-6772 Saturday, March 14, 1987 EXCERPTS FROM REMARKS BY VICE PRESIDENT GEORGE BUSH NORTHEAST REGIONAL LEADERSHIP CONFERENCE NASHUA, NEW HAMPSHIRE SATURDAY, MARCH 14, 1987 I'm delighted to be here among the Republican leaders of the Northeast. Spying -- or more precisely, intelligence --is what I want to discuss this afternoon. Two weeks ago in Bedford, Massachusetts and then again in Bedford, New Hampshire, I talked about the need for SDI, the system that puts weapons at risk, not people. I talked about the need to support those fighting for freedom in Central America and about the opportunity we have to obtain a verifiable reduction in intermediate range nuclear missiles. Our intelligence system is central to all these issues. I came here today to say that as leaders we must be more vocal and public in supporting the intelligence community in our society. We must make clear that the C.I.A. has an honorable mission. We must recognize that even in a free and open society, some things must remain secret. And I believe we must strongly support legitimate covert actions that are in our national security interests. Certain Democrats act as if the C.I.A. is an embarrassment or a threat or just another government bureaucracy, not this country's first line of defense. Some Republicans are conspicuously silent in their support, believing it's politically unhelpful to be associated with the Agency. Ladies and gentlemen, I am genuinely concerned about how our intelligence system will maintain public approval, unless those of us in the political arena begin to speak out on its be It is essential that we have an intelliaence community second to none. Fortunately, the Agency has returned from the devastation it faced in the 1970's. Its reputation and honor were dismissed. Its budget was cut 33% in constant dollars, and it lost 25% of its personnel. - more - Approved For Release 2006/01/03 : CIA-RDP91-00901R000100010001-8 - 2 - Approved For Release 2006/01/03 : CIA-RDP91-00901R000100010001-8 But rather than seeking to correct the Agency's flaws, critics simply attacked. I went to the C.I.A. at the tale end of a witch hunt that laid bare the agency's inner most workings. I can remember young, untutored Congressional staffers coming to headquarters and accusing experienced professionals of not serving the interests of the country. These were people who had risked their lives for their country. It was a terrible time. The names of agents were exposed. One result etched in my mind is the brutal murder of our station chief in Athens, Richard Welch. Two weeks after his name was listed as C.I.A. in an ugly left wing publication, two gunmen, armed with automatic pistols, cut him down at his home in Athens. Other sources, fearing for their lives, disappeared. some were killed. It was a time when many lost sight of how important the Agency was to our national security. I learned a great deal when I had the honor of running the C.I.A., especially about leading people of purpose and integrity. And from the day I set foot inside its headquarters, I found it to be an organization whose motives were clear, and honorable, and in the national interest. It's first priority is to prevent a surprise attack on the United States. If the C.I.A. had existed in 1941, the surprise at Pearl Harbor would've been on the Japanese, and I'll tell you how I can say that. Because taken as a whole, the Army, the Navy, and the State Department had enough information to understand what the Japanese were doing. But there was no central place for this information to come together. That place today is the C.I.A. Our main adversaries in 1987 are the Soviets. We have an excellent understanding of their military capabilities. We know where their strategic bombers are located. We know how many strategic missiles the Soviets have. We keep track of their submarines, with reasonable accuracy. The scope of information we have today would have been astounding in 1941. Our intelligence technology is breathtaking -- the satellite photography, the electronic, the acoustical and the seismic techniques. The American people have no idea how good it really is. And what's more, the C.I.A. has some of the nation's ?brightest people to analyze this information. I wish you could meet them and get to know them like I have. The C.I.A. has more Phd.'s than any other agency of government -- enough scholars and scientists to staff a university. And let me assure you, the professionalism is too high, the devotion to country too great, to have intelligence estimates slanted and shaped by political judgements. - more - Approved For Release 2006/01/03 : CIA-RDP91-00901R000100010001-8 Approved For Release 2006/0T/0i : CIA-RDP91-00901R000100010001-8 They are people of principle, many of whom put themselves on the line to gain information about our enemies. I recall a loung woman of about 35 who was brought into my office one day. She'd been arrested at a dead letter drop by a hostile intelligence service. She hadn't been tortured, but she'd been through a tremendous psychological ordeal. If her cover hadn't been blown, she would've gone right back. She was risking her life almost every day. No head table, no applause--a dedicated patriot serving her country to preserve the freedoms that we often take for granted. This is true integrity of purpose, and the Agency is full of such people. A relatively new priority is collecting information necessary to thwart terrorist attacks and to interdict drug shipments With our allies help, from January of 1985 to February of this year, 55 probable and another 114 possible terrorist attacks were averted by deterrent action. I am talking about lives that were saved. In Turkey, security officers last April arrested Libyan-supported terrorists who were planning to attack the U.S. Officers Club in Ankara during a wedding celebration. In Paris, about the same time, officials thwarted a similar attack planned against citizens in a visa line at the U.S. consulate. In North Africa last year, a Libyan-backed assassination attempt on an American military attache was foiled. If we and our allies hadn't succeeded in cases like these, you can picture the grisly scenes that would've appeared on the evening news. People often want to know about C.I.A. infiltration of terrorist groups. Quite honestly, we were once able to pene- trate these groups much easier than we can today. They're more sophisticated in identifying our agents, and they take greater precautions than they once did. It's harder to get our people placed, because the terrorists often come from family groups. And once we do get in, it's harder to get information out. Take, for instance, five recruits in the Bekaa Valley who have been selected by the Hizballah to blow up an American installation. They are searched. They are isolated in a guarded camp. And they aren't told until absolutely necessary what their mission is. So even if we do have someone in there, it's very hard to maintain contact. - more - Approved For Release 2006/01/03 : CIA-RDP91-00901R000100010001-8 Approved For Release 2006/CL1R3 :_CIA-RDP91-00901R000100010001-8 The C.I.A. is constantly studying developments affecting broader U.S. security. In recent years, for example, there's been more attention focused on the Soviets lag in high technology and their efforts to steal ours. We know, for example, the precise gyros and bearings in their heavy missiles were designed in the U.S. We know the radar in their AWACS planes is ours. We know that many Soviet integrated circuits are exact copies of U.S. designs. They even copied the imperfections. The Soviets use dummy firms--some legal, some illegal--to purchase Western technology. The C.I.A. has identified some 300 firms in more than 30 countries engaged in technology transfer schemes. The Agency looks at everything from the effects of AIDS on the stability of African countries to the consequences in Jamaica of reduced demand for bauxite. It is constantly analyzing developments that might affect our long-range security and that of our friends. Now you may wonder where covert action fits into all this? Covert action gives us the ability to help our friends, or confuse our adversaries, in those situations where open assistance from the U.S. could be counterproductive. It provides us with a useful foreign policy option that's somewhere between diplomacy and sending in the Marines. The world is not a sunlit meadow. The world is not the way we want it to be, but the way it is. There are dangers out there that must be addressed, and covert action is sometimes the means to do it. We seem to think covert action is James Bond and ray guns. Often, it is quiet support that saves the lives of friends. Without doubt, there have been some serious failures in the past, such as the Bay of Pigs effort. But today, there are very strict controls. Every covert action must be approved by the President and made known to the Congressional Oversight Committees. And this is fine, because covert actions make sense only in support of a larger foreign policy. They make sense only when properly supervised and properly planned -- that was the problem with the NSC running the Iran initiative. The C.I.A. experts never had a chance to bring their full range of experience to bear. And the formal NSC policy apparatus was not properly used. The President has made the changes necessary to keep the NSC out of operations, but have all NSC participants totally immersed in policy. The quickest way to kill a covert action or any kind of secret activity is through a leak. And I am telling you point blank -- agents have disappeared, and I'll leave it to your own imagination what happened to them, soon after stories leaked to the news media. Approved For Release 2006/01,0gl-CIA--RDP91-00901R000100010001-8 - 5 -- Approved For Release 2006/01/03 : CIA-RDP91-00901R000100010001-8 Some have been jailed. Leaks have caused other individuals, who were on the verge of becoming foreign agents for us, to back off in fear for their lives. We have lost sources and we have lost what we call collection mechanisms. A few years ago one of the networks reported that we were intercepting communications between two unfriendly nations; communications about terrorist activities directed against Americans. Within a matter of days after the report, the channel was shut off. As a result of this reduced intelligence, american lives were put at greater risk. .Some of our allies have told us they're so concerned about our ability to keep secrets, they'll no longer provide the same information they once did, and the information they do provide will not be as timely. One intelligence service stated that terrorist information they were providing would appear in the U.S. press before they could act upon it. The leaks come from the Congressional committees and from the Executive Branch itself. I believe a Joint Committee on Intelligence should be established to reduce the number of people who have access to very secret information. And I also believe the Administration needs to make some examples of leakers in our own ranks by publicly firing them. And I don't care how high up they are. I don't believe in wholesale use of the polygraph, but when legitimate national security matters are at stake, I say, "use Ladies and gentlemen, in the foyer of C.I.A. headquarters in Langley, Virginia, there's a Book of Honor enclosed in a glass case. It lists those C.I.A. employees who have died in service of their country. Some are named, but most even after death cannot be identified. So instead of a name, there is a simple star. And in that same foyer is an inscription that explains why those individuals gave their lives. It's from the Bible and it says, "And Ye shall know the truth and the truth shall make you free." I can think of no more honorable purpose for a government agency than truth and freedom. And, as leaders, I think we should be outspoken and out front in our support for the C.I.A. Thank you for inviting, me and thank you for your hospitality. Approved For Release 2006/01/03 : CIA-RDP91-00901R000100010001-8 SAT Rettatoperwal For Release 2006/01/03 : CIA-RDP91-00901R0001000 0N {WA WASHINGTON TIMES 6 March 1987 nARNOLD BUCHMAN Political savvy was thissing here is one thing that the fol- lowing people have in com- mon, in addition to gender: Lt. Col. Oliver North, Rob- : ert.,McFarlane, Rear Adm. John Poindexter, Donald Regan, George ShAltz, Caspar Weinberger, and practically everybody else who STAT , kna,w a lot or a little about the Strate- gic Iranian Initiative or SII. Not one of them was a politician. Notone of them had ever run or ever ; beep elected to public office. Not one of them had ever had to answer for their actions to a popular con- stituency. Not one had ever come close to a voter except a relative. The only politicians in this entire me,ss were President Rkag,an and Vice President Geokie Boats& But they forgot the first principles of politics, let alone of covert action. It was; a politician who once said: "we should not do secretly anything that we would not be proud to defend pub- licly," ,The man who uttered that bit of wisdom was Republican Sen. Mal- colm Wallop of Wyoming. There was nothing morally repre- hensible in seeking an opening to Iran; What was stupid was allowing a bunch of people who understood little about politics (let alone Iranian or' Soviet politics) and knew even ? less about public opinion to play at ; secret diplomacy which, even if it all went well, would have had (minus- cule chance of success. In other ? words, the Poindexter-North combo ran an operation which when ex- posed to daylight made the actors look like a bunch of burglars and the president the burglar-in-chief. SII was the trivialization of for- eign policy. In fact, SII was foreign ativenturism, not foreign policy. Seeking freedom for hostages is laudable benevolence, not realpoli- tik.'As for Col. North, he was a sort of conservative Che Guevara. Mr. Guevara thrashed about in a Boliv- ian jungle until his death. Col. North played hide-and-seek in a Persian marketplace and managed to come out-of his adventure in one piece. What would a politi914909Wdllcor Release 2006/01/03 : CIA-RDP91-00901R000100010001-8 the above-mentioned didn't know? And why am I including in the list of non-politicians Messrs. Shultz and Weinberger, secretary of state and defense, respectively? Had the two Cabinet officers understood the American political process, they would together or singly have gone to Mr. Reagan and said that, unless tbia SII were taken out of the hands or the?din/Un-brigade or it was. called off, they would resign. In the. face of such a Cabinet re- volt, I don'tknow?what the president *old have done. But a seasoned politician would have realized that Washington is no place to keep a se- cret and that it would leak some- where, if not the nation's capital then somewhere else. Messrs. Wein- berger and Shultz did Mr. Reagan no service by staying on and pretend- ing that nothing was happening. Ihe first exception to my thesis about politicians is alsinpilati. Here's a Man who has run successfully for elective office, has been head of the CIA, ambassador to China U.S. am- ber's sador to the United Nations, chairman . of the Re ublican Na.-3 F. preSident and still a candidate. How cOurd he have flopped so badly?, The second exception to my thesis is.William Casey, the former CIA di-, recfarTfr'tVas a semipolitician, he No. had run for Congress a long time , ago, he had been Mr. Reagan's cam- paign manager in 198(1. How he screwed up is a mystery which prob- ably will never be solved. Perhaps, he was the loyal liege man willing to serve his sovereign. What does a politician know that the amateur does not know? The politician knows that it is not nec- essarily true that the shortest dis- tance is a straight line between two points. In fact, in politics it is fre- quently the longest way around. The seasoned politician also knows that anything that looks easy is going to turn out to be difficult, otherwise it would have been done long ago. He also knows that if there's a particularly sticky problem like voting on a controversial bill, find some way around the obstacle by defusing the bill in such a way that only the U.S. Supreme Cc:fort could interpret the meaning if the bill were enacted into law. And above all the politician k?iows that most socioeconomic problems cannot be cured overnight because legislative solutions usually create far greater complications than the original problem. When the temper- STATI NTL 10001-8 ance advocates pushed through Pro- , hibition did they ever imagine that ' they would help unleash the greatest wave of criminality and gangsterism in our history? How many people envisioned that World War II would end up with Central Europe a victim of Soviet thralldom? A successful politician may be a trimmer, a compromiser, the man who ducks problems and always thinks of protecting his vulnerable bottom. Better he than the failed politician-turned-statesman, the elected official who begins to think of himself as' a miracle-worker; e.g., Richard M. Nixon. It may have been House Speaker Thomas B. Read who succinctly defined a statesman as "a dead politician." Proof of my thesis? Who's being called upon to rescue the ship of state? Politician Howard Baker, poli- tician John lbwer, politician Ed- mund Muskie, politician Paul Laxalt, and, for my money, politician Mal- colm Wallop. No statesmen they. Last, admittedly politicians are not nature's noblemen. Yet with all their foofkeeying around with salary grabs and $10,000 breakfasts they're a lot safer to have around than the types who have helped get the coun- try into the kind of mess which will be a long time with us. Approved For Release 2006/01/03 ? ClArRDP91-00901R000 wALL sTREE I. JOURNAL ARTICLE APPEARED ON PAGE 5,4 13 February 1987 Bush Says He 'Expressed Reservations' To 'Key Players' on Iran-Arms Policy By ELLEN HUMS and JANE MAYER Staff Reporters of THE WALL STREET JOLRNAL LANSING, Mich. ? Vice President George Bush said for the first time that he had "expressed reservations" about the Reagan administration's Iran arms policy to the "key players" as it unfolded. Breaking with his longstanding practice of never disagreeing with President Rea- gan's decisions or describing his own ad- vice in the White House, Mr. Bush said he is "deeply troubled" by evidence that the U.S. may have traded arms for hostages in violation of its own policy. The vice presi- dent stressed that he believes President Reagan didn't mean "in his heart" to trade arms for hostages. Mr. Bush's comments, made yesterday to reporters during a Midwest swing to boost his 1988 presidential prospects, were a departure from his earlier remarks. In a Dec. 3 speech, for instance, he said he backed the president. While admitting that "mistakes were made," he said that "I was aware of our Iran initiative and I sup- port the president's decision." Asked at a news conference here yester- day if he had advised against the Iran deals as they went forward, Mr. Bush first brushed aside the question but added: "Key players around there know that I express certain reservations on certain as- pects." Craig Fuller, his chief of staff, later confirmed that he was referring to the Iran policy, but neither he nor Mr. Bush would elaborate. 'First to Say It's Wrong' Mr. Bush said that if investigators con- clude that the U.S. swapped arms for hos- tages, would be the first to say that is wrong." While minimizing his own deci- sion-making role, he said the controversy has eroded his support for the 1988 GOP presidential nomination. He said he couldn't "pinpoint the date" when he first learned about the policy and noted that a Senate Intelligence Committee .,report concluded he didn't attend the first meeting where it was discussed. "I don't know that I had a specific role in making any determinations" about the policy, he said. He defended the Reagan administra- tion's claim that it was dealing with Iran- ian moderates even though, according to a memo written by his own chief of staff, he was warned last July by an Israeli official that the deals were being made with Iran- ian radicals. He called it merely a differ- ence of "semantics." But Mr. Bush said, "In looking back at it, it does raise a flag for me, but it didn't at, the time, frankly." In Washington, the Tower Commission, appointed by President Reagan to look into the Iran-Contra scandal, began to pore through transcripts of computer tapes of recorded conversations between members of the National Security Council. 'The discovery of these tapes?many of which remained in a central computer memory bank inside the White House with- out their authors' knowledge?are the rea- son the commission needed a week's exten- sion for its probe, Reagan administration officials said. On Wednesday, the panel was given until Feb. 26 to conclude its re- view?a delay ascribed to the need to ex- amine unspecified "new material." Messages by North, Poindexter Reagan administration officials said the tapes included messages sent back and forth in recent months between Lt. Col. Ol- iver North, who was fired for his role in the Iran-Contra affair, and former Na- tional Security Adviser John Poindexter, who resigned as a result of the controversy surrounding the affair. Many of the recorded messages were believed by their authors to have been de- leted, but instead were automatically stored without their knowledge. Reagan 100010001-8 STATINTL administration officials suggested that the tapes further established links between the NSC and the private groups that funneled aid to the Nicaraguan rebels during the pe- riod when Congress had banned U.S. assis- tance. In a related development, ABC News reported last night that one such group, di- rected by Carl Channell, designated a spe- cial account identified as the "Toys Proj- ect" that is believed to have funded arms for the Contras. Mr. Channell, a conserva- tive activist, enjoyed high-level White House contacts, and on at least one occa- sion, according to ABC, brought in a group of big donors to meet with President Rea- gan, his chief of staff, Donald Regan, and Col. North. On another occasion last August, Mr. Channell was one of about 15 guests called into the White House to give political ad- vice to Mr. Regan in a strategy session on the 1986 midterm elections. a participant in the meeting recalled yesterday. The ABC report cited no specific evi- dence that the $2.2 million reportedly raised during 1986 for the Toys Project ac- tually bought weapons. But separately, in- telligence sources said that among the multitude of companies and bank accounts linked to the Iran-Contra affair is one iden- tified as Toyco S.A. Those familiar with the records of Southern Air Transport said Toyco's name appears on payments made to the Miami- based air carrier, which was used in the Contra supply network. Previous checks in Switzerland and Panama, which are the bases of several companies used in the supply network, found no record of such a company being registered. Last night, the White House had no comment on the ABC report other than to say 'the whole thing is under investiga- tion." Earlier in the day, White House spokesman Marlin Fitzwater refused to comment on any aspect of the Iran-Contra affair. "I'm not qualified or willing to dis- cuss the Iran situation." Mr. Fitzwater said. Approved For Release 2006/01/03 : CIA-RDP91-00901R000100010001-8 MITICLE APPMRED GEORGETOWN UNIVERSily HOYA 6 February 1987 ON PAGE?--Afropreved For Release 2006/01/03 : CIA-RDP9 - 0 01 0001 From SFS to GU Grads Flock to the Agency by Cary Brazeman FlOYA Features Editor Before last spring, Ann Lowell had never considered the Central Intelli- gence Agency (CIA) as a career alter- native. She knew she desired a job with an international focus, but bank- ing seemed the most likely prospect. Then Career Planning and Placement (CP&P) posted an announcement in- viting students to submit resumes to CIA recruiters. Curious, Lowell handed in her resume. Several weeks later she was granted an interview. Although Lowell, then a senior in the School of Foreign Service, decided after the initial interview that she was not interested in pursuing a CIA ca- reer, dozens of other Georgetown stu- dents have completed the entire pro- cess and been recruited by the Agency. In fact, the New York Times reported recently that GU provides the CIA with more recruits than any university in the country ("Campus Recruiting and the CIA," June 8, 1986). Harold Simmons, chief of the CIA's as ir4.1?rig="----1 area recruitment center, refuses to confirm or deny that statis- tic, but he willingly admits that George- town is "absolutely a gold mine" in terms of its number of applicants for entry-level positions.. Simmons won't disclose the number of students re- cruited from Georgetown, however, ex- plaining that to do so would facilitate an outsider's ability to determine the size of the CIA's training corps. Statistics aside, Simmons discusses the CIA's popularity at Georgetown without hesitancy. "It's easy to see why so many Georgetown students are in- terested in us," he says. "What better place is there for a career overseas? in international relations, area studies, area disciplines. Georgetown is recog- nized for those things, so it's only natural:' SFS Assistant Dean Andrew Steig- man agrees with Simmons, suggesting that student interest in the CIA stems largely from the fact that SFS students are trained to do precisely the kind of intelligence work that the CIA de- mands. "The CIA is the closest thing to the previous experience of the stu- dent, who is trained here in the area of research and analysis," says Steigman. He,-004,44a.44e4IA:lisi on of two goverprnent agencies-7 the other is the. National *KimAc?litinyki,Stmtipn? that offers a wide 'fange of jobs in interna- tional affairs and also conducts exten- sive recruitment drives annually. Steigman further maintains that most students preferring to work in the pub- lic sector are "looking for a chance to serve?to work for a slightly larger purpose. The CIA offers something broader than just a job that's there; it provides students with another option." Adjunct Professor Ray Cline, a for- mer deputy director of intelligence for the CIA, agrees that the SFS curricu- lum, with its academic approach to foreign policy, easily inspires students to consider CIA careers. "Georgetown is a place where intelligence has been an academic subject for some time, where intelligence is a subject of natu- ral interest to students," says Cline. Claire Carey, assistant dean of the College, believes that students view the CIA less as an intellectually attrac- tive job option than as a practical one. "Seniors get panicky and just apply," she says, "because the CIA is always hiring, whereas other departments of government aren't. Also, many of our students want to stay here in Washing- ton after graduation, and government is a big employer in this town; the CIA offers a lot of opportunities." To Lowell, however, the opportuni- ties offered by the CIA seemed lim- ited, and that's one of the reasons she abandoned her pursuit of a job with the Agency. "After hearing the man speak. I felt like I was at their mercy," recalls Lowell. "I didn't get the impres- sion that I would have any control over my career. 1 also figured it would be hard to switch careers, given the de- gree of secrecy that would forever sur- round my background:' Lowell's reservations are common among prospective recruits, says Sim- mons, and while some of them hold true, others are just misconceptions. Citing the CIA's high degree of flexi- bility and its attrition rate of only three percent, Simmons says that "you can really move around in a unit. And the CIA has four directorates: Adminis- tration, Intelligence, Operations and Science and Technology. So there's al- ways a place or a position for you once you're in. "I don't want to gush sugar out of my lower lip, but the CIA is a very exciting place to work. The Agency provides its professionals with what- ever technology they need to get the job done, and after three decades I can't imagine working anywhere else:' CP&P Director Eric Schlesinger is slightly less enthusiastic than Simmons. Although he applauds the efficiency 00010001-8 and organization demonstrated by the CIA's campus recruiters ("I wish that every recruiting organization were as responsive to us as they are), he rec- ognizes the fact that a career with the CIA "raises questions" about the kinds of lives students want to have. Schlesinger recounts the story of a Georgetown graduate he met at a CIA-sponsored briefing several years ago. "The woman," recalls Schlesinger, "worked in the directorate of intelli- gence, and she said that her work is the closest thing to the academic world outside of the university setting, where all she does is read, write and research. But unlike an academe who can be published and present papers at con- ferences, she will never have that opportunity." Describing the logistics of the CIA's campus recruiting efforts, Schlesinger says that the Agency usually visits GU twice a year, in the fall and in the spring. (The next round of CIA inter- views will be March 19, according to Simmons.) Exactly how they screen ap- plicants varies, he adds, but in the fall the only criteria was that applicants be U.S. citizens. Other than that, anyone on the baccalaureate or graduate level was eligible to submit a ,resume for review. Twenty-eight people were then selected by the CIA for interviews with Agency recruiters. In these respects, says Schlesinger, the CIA's recruitment process is sim- ilar to other organizations'. But there are differences, too. "Some things do change," he says. "Now with other or- ganizations we tend to hear back the number of people who are then called in for second interviews and the num- ber who are made offers to and the _number who accept those offers. Last year we heard that information from 50 percent of the organizations. We do not here that from the CIA:' It is this extended interview process. which can take up to six months to complete, that was another deterrent to Lowell. Eager to land a job as soon as possible, she was discouraged by "all the red-tape:' Indeed, as Simmons concedes, the recruitment process is long and involved. But it's also very necessary, he continues, because "we have to see how the applicant mea- sures up to the average professional employee on board with us:' Continued Approved For Release 2006/01/03 : CIA-RDP91-00901R000100010001-8 STATINTL Approved For Release 2006/01/03: CIA-RDP91-00901R000100010001-8 Specifically, applicants must com- plete an 18-page personal history state- ment and a rigorous battery of tests, including the California Psychological Inventory. About 10 references must also be supplied, most of whom are ap- proached personally to explain the ex- tent of their relationship with the ap- plicant. A polygraph test is another requirement, and if the Agency is pleased with the results, the applicant is then called in again, this time for "a more vertical interview,- says Simmons. He is quick to point out that homo- sexuals and lesbians need not apply for CIA jobs. "They're derivations from the norm," he says. As for necessary qualifications, the CIA officer explains that the Agency is more intent on finding a person of a particular "type," rather than one with a designated background. Quoting a CIA pamphlet, Simmons says that ap- plicants should have "first and fore- most, the drive to achieve. They are oriented toward action and results; force?of personality and a gift for deal- ing effectivelypOrth Peopletua, consis- tendy' filglillever of academic perfor- mance; exceptitAtil skilliiiPkooth written and oral communication; and impec- cable standards of personal and pro- fessional ethics:" To assist in the process of advising students who may fit the CIA profile and are interested in a career with the Agency, Harold Bean serves as George- town's agency officer in residence. A retired CIA official, Bean teaches a graduate level course, "Institutions and Management in Foreign Affairs," and a sophomore seminar on terrorism. "I'm not basically here as a recruiter," says Bean, "but I'm perfectly willing to discuss the subject with interested stu- dents .... I might have conversations with several people a week who in- quire about the CIA and other firms:" Does the fact that so many George- town students are apparently bound for careers with the CIA have any phil- osophical implications for the univer- sity? Schlesinger doesn't think so. "I think if you read the mission and goals statement of the university it talks about international focus, leadership in international arenas, service to the country. So it's a rather obvious fit," he says, "Some people might think it's co? a more obvious fit than an investment bank might be. "This university and this office host equally and in the same way a repre- sentative from the CIA, the Catholic Relief Service, the military armed forces establishment or the Peace Corps." Cline echoes Schlesinger on the is- sue. "[The fact that Georgetown pro- vides the CIA with the most recruits) is a fortunate coincidence," he says. "It's no great philosophical thing at all:' Carey, too, sees no reason to "read any philosophical implication into it." But she has trouble fathoming the no- tion in the first place. "If students re- ally knew the extent of what the CIA does, I can't see how they'd be at- tracted to it," she says. Approved For Release 2006/01/03 : CIA-RDP91-00901R000100010001-8 STAT STAT Approved For Release 2006/01/03 : CIARDP91-00901R000100010001-8 UNITED PRESS INTERNATIONAL 21 January 1987 Administration acknowledges Buckley's death By MATTHEW C. GUINN F.: ONLY WASHINGTON The State Department said Wednesday it has "sadly ... come to the conclusion" that William Buckley, an American Embassy official kidnapped in Lebanon in 1984, is dead. Vice President George Bush confirmed for the first time Tuesday night that Buckley had died while being held captive by the Islamic Jihad, the terrorist group that claimed responsibility for his kidnapping. He also said Buckey had been tortured. "The preponderance of evidence is that he died. We don't have any proof. We don't have the body," said department spokeswoman Phyllis Oakley. Asked for elaboration on Bush's comments, Oakley read a statement to reporters that said: "Although Mr. Buckley's body has not been recovered, the preponderance of information available to us indicates that Mr. Buckley died in captivity. "Evaluating all of the information we have received, including conclusions of hostages who were released and the long time which has passed with no information to indicate Mr. Buckley is alive, we have sadly had to come to that conclusion." Oakley declined comment on the prospects for release of other American hostages held in Lebanon. She noted Church of England envoy Terry Waite, who is in Beirut trying to arrange freedom for Western hostages, is in West Beirut while the U.S. Embassy is in East Beirut and communication is "increasingly difficult." Oakley said the department does not know where Buckley died or whether he had been tortured or executed. "It's simply that we don't know and we simply must be very careful," she said. . She also declined comment on when the administration reached its conclusion that Buckley was dead. Buckley was listed as political counselor in the U.S. Embassy in Beirut, but has been identified in published reports as the CIA station chief in Lebanon. The Islamic Jihad announced Oct. 4, 1985, that he had been executed. It had also been reported that he died in Iran after being tortured. Robert McFarlane, former White House national security adviser, said in an interview on ABC's "Nightline" program Tuesday night that when he went on his secret trip to Tehran last May with a plane full of U.S. weapons, he expected to win the release of all the American hostages plus the remains of Buckley, indicating recognition that Buckley was dead. Approved For Release 2006/01/03 : CIA-RDP91-00901R000100010001-8 II) Approved For Release 20060f0r3E:DCIftFRFs'911-FrM01100 010001-8 21 January 1987 WASHINGTON FILE ONLY STATINTL Vice President George Bush has confirmed that William Buckley, the CIA's station chief in Beirut, LUgribn, was tortured and murdered by his Islamic Jihad Kidnappers. The vice president, speaking to a conference on terrorism Tuesday night about the Iran arms-Contra aid scandal, said Buckley, seized off the streets of Lebanon's anarchic capital March 16, 1984, was murdered. Bush, the first administration official to confirm Buckley's murder, did not give any further details. Buckley's Islamic Jihad kidnappers announced in October 1985 that Buckley had been killed because he was a CIA agent. The CIA has never claimed Buckley as one of their own, but it reportedly was his situation -- and that of four other Americans held hostage by pro-Iran extremists -- that at first prompted the administration to pursue its arms-for-hostages deal with Iran. Bush touched on the frustration felt within the administration over the prolonged detention of the American hostages in Lebanon and the determination to "explore every channel, run down every lead." He said President Reagan opposes trading arms for hostages but, "At the same time you should know the concern that the president feels, that we all feel, when an American in terrorist hands is tortured, and in the case of William Buckley, killed." Islamic Jihad claimed Oct. 14, 1985, that Buckley, 56, was "executed" and produced a photograph of what it said was his corpse, but his body was never recovered. He reportedly was tortured. CIA Director William Casey and Reagan reportedly wanted to get Buckley freed for humanitarian reasons and also because they were fearful that Buckley would reveal critical intelligence information about the region to his torturers. Bush, on the basic issue of whether arms were indeed traded for hostages, said: "When all the facts are out, the American people can make up their own minds on that key question. But the American people should also know that the president is certain to this very day that he did not authorize arms for hostages." Continued Approved For Release 2006/01/03 : CIA-RDP91-00901R000100010001-8 STAT Approved For Release 2006/01/03 : CIA-RDP91-00901R000100010001-8 Today, Sen. David, Boren 0?Okla., the new chairman of the Senate Intelligence uu [-----] mmittee, told the terrorism conference, "I believe the president" when Reagan 5aid arms were sent to Iran only to open the dialogue with "moderates" in the radical Islamic government of Ayttollah Ruhollah khomeini. But Reagan was obviously influenced in the overture to Iran by the plight of the American hostages, Boren said. We became obsessed with getting the hostages out, so the hostages and the arms became intertwined, even if that were not the object," he said. The defect in the U.S. approach was to treat every hostage incident as a national or international crisis, as horrible as the incidents might be, he said. Bush, the first member of the administration to admit that "mistakes were made" in the Iran arms deal, acknowledged that "a widespread perception exists that this administration traded arms for hostages, thereby violating our own strong policy of making no concessions to terrorists." In defense of the administration, Bush insisted the terrorism policy was upheld by intercepting the hijackers of the Italian cruise ship Achille Laura in October 1985 and retaliating against Libya last April. "It is therefore with a prOfound sense of loss that I view this existing perception that we have abandoned our policy of not negotiating with terrorists," he said. Approved For Release 2006/01/03 : CIA-RDP91-00901R000100010001-8 Approved For Release 2006/01/03 : CIA-RDP91-00901R000100010001-8 BESt COP Available Approved For Release 2006/01/03 : CIA-RDP91-00901R000100010001-8 a\pEtr; ApprovadaddRelease 2006/01/03 : DATIIIMEI-00901R00010 21 January 1987 0 I /-i I IIN I L 1010001-8 Vush confirms death of Beirut hostage Buckley glipaul Weed Altpington Bureau of The Sun k4rASHINGTON ? In a speech re- tiing the administration's deter- on to combat terrorism, Vice dent George __Diaab_acknowl- last night that U.S. hostage . - Buckley, reportedly the CIA ? .n chief in Beirut, had been tar- and killed by Islamic terrorists I ., on. Bush's comment was the first ca confirmation by the govern- ment that Mr. Buckley. who was kidnapped in 1984. had been killed. L ih his address, the vice president that controversy over the Iran deal had given the administra- chance to repair the damaged Witty of its anti-terrorist policy. acknowledged the "existing on that we have abandoned cy of not negotiating with ter- '.Out, he insisted, the administra- Xtbe, no concessions to terror- policy "has been, and contin- *Si Addressing a conference on ter- rorism sponsored by Time Inc.. Mr. Bush said the Iran arms scandal gives the administration "the oppor- tunity to restore the credibility of our policy. give it new meaning and move forward with a renewed com- mitment in our battle against the terrorist threat." Mr. Bush. who headed a White House task force on terrorism last year, did not specify how the admin- istration might demonstrate a re- newed commitment. "Let there be no confusion, least of all among would-be terrorists," he told a dinner audience of several thousand at a Washington hotel. if a terrorist act is committed, we will come after you. And if we find you, we are going to bring you to justice." The vice president was among a handful of senior administration of- ficials who attended a White House meeting last January in which Mr. Reagan authorized the secret sale of arms to Iran. A key objective of the arms deal. according to White House docu- ments, was to help gain the release of Americans being held hostage. Mr. Bush reiterated that Presi- dent Reagan "is certain to this very day that he did not authorize arms for hostages" by selling weapons to Iran. And he said that "when all the facts are out, the American people can make up their own minds" about whether there was an arms- for-hostages deal. Mr. Buckley's death had been widely reported in news accounts. which began with an Oct. 4. 1985, announcement by the Islamic Jihad terrorist organization that he had been executed. The vice president's press secre- tary, Marlin Fitzwater, said Mr. Buckley's death had not previously been acknowledged because his body has not been recovered. He said Mr. Bush. who used Mr. Buckley's death to illustrate the ad- ministration's continuing concern for the safety of U.S. hostages in the Middle East. felt that it had become "generally acknowledged" that Mr. Buckley was dead. The Reagan administration "will exploFeevery channel, run down ev- ery lead. We will go the extra mile to free those American hostages." Mr. Bush said. He said "there is a very thin line between talking with terrorists and negotiating with terrorists." But Mr. Bush emphasized that the administration's anti-terrorist policy remains unchanged. "We do not make concessions to terrorists," he said. "We do not pay ransoms. We do not release prison- ers. We do not encourage other countries to give in to terrorists. And we do not agree to other acts that might encourage future terrorism." Mr. Bush said the United States had made "great progress" In thwart- ing planned terrorist attacks. He cited the arrest in Turkey last April of Libyan-supported terrorists allegedly planning to attack the U.S. officers' club in Ankara and the pre- vention of a planned attack last spring against citizens In a viS4 line at the U.S. Consulate in Paris. Approved For Release 2006/01/03 : CIA-RDP91-00901R000100010001-8 ?21 Approved For Release 2006/01/03 : CIA-RDP91-00901R00 STAT ICAtielt ON P Bush Says a Hostage Was Killed NEW YORK TIMES 21 January 1987 100010001-8 Special to The New York Time, Bush was apparently trying to explain. sortie of the motivation behind the ship- A ment of arms to Iran by the Reagan' Administration. He said the President did not intend : to send the arms as a trade for Amer- , ican hostages held in Lebanon. But he added, "At the same time you should know the concern that the President feels, that we all feel, when an Amer- , ican in terrorist hands is tortured, and in the case of William Buckley, killed." ., Mr. Buckley was kidnapped on a Bei- rut street on March le, 11B4. At the! time and for many months afterward, he was described as a political officec! WASHINGTON, Jan. 20 ? Vice President B said tonight that an American-RI-di-lapped by terrorists in Lebanon had been killed. It has been widely assumed that the American, William Buckley, who was thought to be the Central Intelligence Agency station chief in Lebanon, was dead. But Mr. Bush's remarks were the first explicit public acknowledgement by a senior Administration official that he had been killed by his captors. The Vice President did not identify Mr. Buckley as an agent of the C.I.A. In remarks prepared for delivery to- night at a 'conference on terrorism, Mr. Approved For Release 2006/01/03 : CIA-RDP91-00901R000100010001-8 STATINTL 3 4proved For Release 2006/01/03 : CIA-RDP91-00901R0 -fl1 WASHINGTON POST 21 January 1987 Reagan Sure He Didn't Allow Swap for Captives. Bush Says I- By David Huainan .1 ,r ,It 14rircr Vice President Bush said last night that President I (FNan "is cer- tain to this very day that he did not authorize 'arms for hostages' " in his decision to supply U.S. weapons to Iran while seeking to win free- :16m for Americans captive in Leb- '4iion. :7:13u1 Bush did not reiterate his 'am claim, made last month, that 'Ole president did not trade arms for hostages. - :In an address here to an interna- tional conference on terrorism, -Bash attempted .to restate the ad- ministration's antiterrorism policy, which has been badly damaged by the decision to sell' weapons to Ira*, a nation listed by the United States as sponsoring terrorism. The arms sales have also become a political liability for the vice pres- ident, who chaired a terrorism task force last year and is launching his 1988 presidential campaign. Bush, who participated in some key meetings on the arms deals but was left out of others, acknowl- edged again last night that "a wide- spread perception certainly exists that this administration traded arms for hostages, thereby violating our own strong policy of making no con- cession to terrorists. "When all the facts are out, the American people cat make up their own mind on that key question,* he said. Bush did not r his own view on this q :. said, "we . _ must reaffirm our peiksiiwith a bet- ter understanding that there is a very thin and delicate line between talking with terrorists and negoti- ating with terrorists." Referring to the efforts of Angli- can church envoy Terry Waite, Bush said that "searching for ways to communicate with hostage-tak- ers can be a ghostly business." The question of whether an arms-for-hostages trade was. under- taken has been central to the un- folding disclosures about the Iran arms deals. Reagan said in his early speeches on the controversy that the United States did not make such a trade. Aides have said he continues to hold this view because the weapons did not go directly to the hostages' captors In a memorandum dated Jan. 17, 1986, Vice Adm. John M. Poindex- ter, then the president's national security adviser, concluded that the approach to Iran "may well be our only way to achieve the release of the Americans held in Beirut." Rea- gan was briefed orally on the con- tents of this memorandum, with Bush and White House chief of staff Donald T. Regan present, accord- ing to a notation Poindexter made on the memo. The document also described an Israeli proposal to at- tempt to bring to power "a more moderate government" in Iran. In his remarks last night, Bush recalled the interception of the - Achille Lauro hijackers in October 1985 and the U.S. bombing raid on Libya last April and said: "It is . . . with a profound sense of loss that I view this existing perception that we have abandoned our policy of not negotiating with terrorists." He added that the administration "must reaffirm our policy" and said, "Out of adversity comes opportunity. "And we now have the opportu- nity to restore the credibility of our policy, give it new meaning, and move forward with a renewed com- mitment in our battle against the terrorist threat," Bush added. "We do not make concessions to terrorists. We do not pay ransoms. We do not release prisoners. We do not encourage other countries to give in to terrorists. And we do not agree to other acts that might en- courage future terrorism," he said. Bush, reviewing the recommen- dations of the terrorism task force, which issued a report last February, Approved For Release 2006/01/03 : CIA-RDP91-00901 10100010001-8 said "we have made great progress in thwarting potential terrorist at- tacks." He said "it is critical that would- be terrorists know that their ac- tions will result in retribution" but added that "military solutions can never be our first choice." Prior to the April 15 Libya attack, the ad- ministration had been embroiled in a long-running internal debate over the wisdom of using military force against terrorists, a debate that remains unsettled. "We have to stand up to terror- ism, and we have to keep standing up until we stop it," Bush said. "That's why our policy has been, and continues to be, no concessions to terrorists." In a December interview, Bush said he was "convinced" that the United States was not trading arms for hostages in the Iran dealings. However, since then evidence has emerged that such a trade was part of the Iran policy. Bush did not re- peat the contention last night. An aide to the vice president said Bush delivered the speech out of a conviction that Americans want the administration to "move forward" against terrorism despite the Iran scandal. In other remarks, Bush said that William Buckley, identified in pub- lished reports as CIA station chief in Beirut, was tortured and killed by his captors. It was the first public confirmation of Buckley's death, although Bush did not say where he got his information or give details. Bush's spokesman, Marlin Fitz- water, said the comment on Buck- ley's death "reflects an acceptance of the situation as we know it." He noted that Buckley's body has never been recovered. "The vice presi- dent feels there is enough informa- tion now to acknowledge" Buckley's death, he said. The Washington Post reported in November that Buckley, a terror- ism expert who was kidnaped March 16, 1984, died in Beirut, apparently in June 1985. His kid- napers first declared him dead later that year. Bush is to travel today to Canada for a meeting with Prime Minister i31001044100401011111-8cid rain and trade issues. 2-- STAT r ? As...11064GL For Release 2006/01/03 : CIA-RbP91-00901R000100010001-8 WASHINGIUN TNES 21 January 1987 -Vice President confirms Buckley was tortured and killed 3y Bill Gertz HE WASHINGTON TIMES Vice President George Bush last night confirmed for the first time that a U.S. Embassy official taken hostage in Beirut in 1984 had been tortured and killed. He also reaffirmed the Reagan administration's anti-terrorism policy and said the United States was prepared to "go the extra mile" to free other Americans held hostage in Lebanon. In doing so, Mr. Bush told a meet- ing of some 700 counter-terrorism and security experts, "you should know the concern the president feels, that we all feel, when an Amer- ican in terrorist hands is tortured and, in the case of William Buckley, killed." Mr. Buckley, reportedly the CIA's top Middle East counterterrorist ex- pert, was kidnapped by pro-Iranian Shi'ite terrorists. According to pub- lished accounts, he was tortured by his captors and may have revealed the identities of some CIA personnel involved in counterterrorist activi- ties. Intelligence sources said the agency erred in sending Mr Buck- ley to Lebanon since his cover had been blown and his identity had been revealed to pro-terrorist forces in the Middle East. Islamic Jihad, the group claiming responsibility for kidnapping Mr. Buckley announced on Oct. 4, 1985, that he had been executed. The organization released a photo it said showed Me Buckley's body but the corpse was not found and his death was not confirmed by U.S. of- ficials. Mr. Bush also sought to clarify the administration's initiative to what he called certain factions in Iran, and to respond to criticism that President Reagan had compromised princi- ples by secretly selling arms to Teh- ran in a deal to secure freedom for American hostages. Three Americans were released from Lebanon following U.S. air shipments of TOW anti-tank mis- siles and spare parts for Iran's U.S.- made anti-aircraft batteries. ". . A widespread perception ex- ists that this adminiatraticaraded arms for hristages, thereby 4olathag our own strong policy of nuking no concessions to terrorists:' Mr Bush told a conference on "Ibrrorism in a Thchnological World." "But the American people should also know that the president is cer- tain to this day that he did not autho- rize 'arms for hostages:" Mr. Bush, who headed a pres- idential task foi ce on terrorism i . n 1985-86, said U.S. policy remains firm: "We do not make concessions to terrorists. We do not pay ransoms. "I believe we must reaffirm our policy with a better understanding that there is a very thin and delicate line between talking with terrorists and negotiating with terrorists," he said. "Out of adversity comes opportu- nity and we now have the opportu- nity to restore the credibility of our policy, give it new meaning and move forward with renewed commitment in our battle against the terrorist threat." Approved For Release 2006/01/03 : CIA-RDP91-00901R000100010001-8 3TAT STAT IAIHNIL Approved For Release 2006/01/03 : CIA-RDP91-0C ASSOCIATED PRESS 20 January 1987 Bush Confirms Death Of Hostage William Buckley By BRYAN BRUMLEY, Associated Press Writer WASHINGTON 901R000100010001-8 fiti ONLY Vice President George Bush, confirming for the first time the death of hostage William Buckley, said Tuesday night the U.S. embassy official kidnapped in Beirut in 1984 had been tortured and killed. And, the vice president said the administration will "go the extra mile" to see that the remaining hostages are freed. Buckley, identified in published reports as the head of the CIA station in Beirut when he was kidnapped on March 16, 1984, has been believed dead since the Islamic Jihad terrorist organization announced on Oct. 4, 1985, that it had executed him. Islamic Jihad released a photo it says showed Buckley's body, but the corpse has never been found and U.S. officials had not confirmed his death. Buckley apparently died in June 1985. Bush, in a speech delivered at a terrorism conference in Washington Tuesday night, did not specify which government agency Buckley worked for, did not say how he was sure that Buckley was dead, and did not give any details of his death. The vice president did not deviate from the prepared text released earlier and did not speak with reporters following the address. The vice president, referring to the sale of U.S. anti-tank and anti-aircraft missile arms to Iran in 1985 and 1986, said that "the American people should know that the president is certain to this very day that he did not authorize 'arms for hostages."'"At the same time you should know the concern that the president feels when an American in terrorist hands is tortured, and in the case of William Buckley, killed," Bush said. Marlin Fitzwater, the vice president's press secretary, said the statement on Buckley's death "reflects an acceptance of the situation as we know it. The problem is Mr. Buckley's body has not been recovered. It has been difficult to acknowledge his death in the past," he added. "The vice president feels there is enough evidence now to acknowledge it," Fitzwater said. He would not discuss what _ if any _ new evidence had been uncovered. In its fight against terrorism, Bush said, the administration would press for the extradition of Mohammed All Hamadi, a Lebanese arrested in West Germany last week in connection with the killing of U.S. Navy diver Robert D. Stethem by hijackers in June 1985. "None of us are going to rest until Hamadi is brought to justice," Bush said. Earlier, State Department spokesman Charles Redman said the government had officially requested Hamedi's extradition. Approved For Release 2006/01/03 : CIA-RDP91-00901R000100010001-8 Approved For Release 2006/01/03 : CIA-RDP91-00901R000100010001-8 Hamadi, 22, is wanted on U.S. charges of air piracy, murder and more than a dozen other crimes in connection with the hijacking of a TWA jet, commandeered between Athens and Rome and forced to land in Beirut. In Beirut, new hopes were raised for the release of five Americans still held hostage. Anglican Church envoy Terry Waite canceled his flight home to England on Tuesday to stay in Beirut for face-to-face negotiations with representatives of the Islamic Jihad. Waite played in intermediary role in the release of three other American hostages. To free the Americans, Bush said, the administration "will explore every channel, run down every lead. We will go the extra mile to free those hostages."Bush, who headed a presidential task force on terrorism in 1985-86, drew the distinction between contacting terrorists and bargaining with them, a point that has been made by other administration officials. "I believe we must reaffirm our policy with a better understanding that there is a very thin and delicate line between talking with terrorists and negotiating with terrorists," Bush said. "We do not make concessions to terrorists," Bush said, reaffirming a long declared U.S. policy. "We do not pay ransoms. We do not release prisoners. We do not encourage other countries to give in to terrorists. And we do not agree to other acts that might encourage future terrorism."The other Americans still held in Lebanon are: Terry Anderson, 39, a native of Lorain, Ohio, chief Middle East correspondent for The Associated Press, abducted March 16, 1985. Thomas Sutherland, 55, of Fort Collins, Colo., acting dean of agriculture at American University, kidnapped June 10, 1985. Frank Herbert Reed, 53, of Malden, Mass., director of the Lebanese International School in Beirut, kidnapped Sept. 9, 1986. Joseph Cicippio, 56, of Valley Forge, Pa., acting comptroller of American University, abducted Sept. 12, 1986. Edward Austin Tracy, 56, of Rutland, Vt., a self-described writer of children's books. The date of his kidnapping is unclear. It was announced Oct. 21, 1986 by a group calling itself Revolutionary Justice Organization. Islamic Jihad claims to hold Anderson and Sutherland. Revolutionary Justice Organization, another Shiite faction, claims to hold Cicipppio and Tracy. Reed is believed held by a pro-Libya faction, the Arab Revolutionary Cells-Omar Moukhtar Forces. Approved For Release 2006/01/03 : CIA-RDP91-00901R000100010001-8 STAT STAT A p p rovitiftg Relesese-2006/01/03 : C WV5c4eflPen-i6 "-?"?10-? ? essalleseowserawoSoiti fatilicao 1 -8 ' Arms affair: puzzles wrapped in enigmas By Warren Richey and George D. Moffett III Statrwriters of The Christian Science Monitor Washington It has been five weeks since a pro-Syrian Lebanese weekly, Ash Shiraa, broke the news that the United States was secretly shipping arms to Iran. Since then, the controversy has broadened to include reports that profits from the arms sales were funneled to a secret Swiss bank account to aid rebel groups fighting against Nicaragua's Sandinista government. In the coming weeks the Justice Department, several congressional committees, and the nation's news media will be seeking answers to a growing list of unanswered questions. Among them: How much did President Reagan and his senior advisers know about the Iran-contra operation? Questions persist about when President Reagan knew about and authorized the arms sales. (Related story, Page 10.) Reagan has denied knowing about the diversion of profits from the arms sale to aid the Nicaraguan contras until being told by Attorney Gen- eral Edwin Meese on Nov. 24. So far no one has directly contradicted the President. But some in Congress say it is unlikely that Mr. Reagan would have been unaware of the funds transfers. Attorney General Meese says information about the operation was confined to three National Security Council officials: former NSC chiefs Robert C. McFarlane and Vice-Adm. John M. Poindexter and a former staff member, U. Col. Oliver L. North. But questions have been raised about the possible knowledge of other top White House officials. Both White House chief of staff Don- ald Regan and iii&Erii1gilla9Xte NAL have denied knowledge of the contra connection. But skeptics question whether Mr Regan, who holds tight control over the oper- ation of the White House staff, could have been ignorant of the activities of subordinates like Admiral Poindexter, Colonel North, and Mr. McFarlane. AMeanwhile, Mr Bush,.a former di- th Crligm_qt_e eir Intelligence Agency. has been linked i in news re- port&to a secret contra resupply operation through contacts with a former CIA official who now serves as Bush's principal national-security Secretary of State George Shultz, who opposed the Iran arms ship- ments, says he was only "sporadi- cally" informed of the shipments and knew nothing of the Swiss bank accounts until the story became pub- lic two weeks ago. How much did US intelligence agenciea know about the Iran- contra connection? De CIA arranged air transporta- tiOn for at least one Israeli_ arms shipment to Iranin November 1a85 After the President signed a "find- ing" in January 1986 authorizing di- rect US arms shipments to Iran, the agency acted as middleman, arrang- ing the transfer of US arms from American stockpiles to Israel for transshipment to Iran. The CIA has admitted handling certain flnancjai arecta of the, Iranian arms sales, mcludmg collect- ing funds to reimburse the Pentagon for the initial $12 million cost of weapons sold to Iran. But questions remain about whether the CIA helped funnel some $10 million to $30 million in profits from the sales to a Swiss bank account maintained to fund the Nicaraguan contras. A reference by Attorney General Meese in a Nov. 25 White House press briefing to "a number of inter- cepts" concerning the Iran arms deal has stirred speculation that other US intelligence agencies - particularly the National Security Agency, which intercepts and decodes electronic transmissions and signals world- STAT wide - may have known of the Iran- contra arrangement before it be- came public. cuniregulom kausgayya he learned of the contra connection only after it became public, but he has admitted to hearing "gossip" about secret sources of funding for the contras. News reports say Mr Casey may have learned of the contra connection from intelligence sources a month before it was pub- licly disclosed by Meese but appar- ently failed to inform any senior ad- ministration officials. Approved For Release 2006/01/03 : CIA-RDP91-00901R0001 co 1 01 -8 continued Approved For Release 2006/01/03 : CIA-RDP91-00901R000100010001-8 ? Casey is said to have learned of the con connection asnnection result of, on intercepted messages of unknown o messages are said to quote Iranians involved in the US arms deals as saying they had been significantly overcharged for the weapons. It is unclear whether these intercepts were the same ones re- ferred to by Meese on Nov. 25. What quantity of arms actually reached Iran? In a televised address to the na- tion two weeks ago, Reagan said that "everything that we sold [Iran] could be put in one cargo plane and there would be plenty of room left over" At least four direct shipments from the US and, according to iran expert Gary Sick of the Ford Foun- dation, as many as 12 indirect ship- ments from Israel (sent on behalf of the US as part of the arms-for-hos- tages deal) have gone to Iran since last fall. US shipments reportedly included over 2,000 TOW antitank missiles and 235 Hawk surface-to- air missiles, plus radar equipment. Attorney General Meese has esti- mated the value of the direct ship- ments at $12 million. But Mr. Sick estimates that the total value of all arms sent to Iran could range from $500 million to $1 billion. Pentagon officials have not specified the quan- tity of US arms transferred directly to Iran or indirectly through Israel. Have US laws been violated in the Iran-contra affair? The Justice Department has ap- plied to a federal court for the ap- pointment of an independent coun- sel, or special prosecutor, to direct an investigation into whether fed- eral laws have been broken. Legal experts point to two laws that may have been violated by sending arms to Iran: the Export Administration Act, which prohibits the export or sale of goods to coun- tries, including Iran, that participate in state-sponsored terrorism; and the Arms Export Control Act, which regulates the commercial export of arms. At issue here is whether the President's January 1986 "finding" took precedence over these laws. Some members of Congress say the President violated the National Security Act of 1947 by not provid- ing "timely" notification of the arms sale to congressional leaders. Meanwhile, legal experts say using profits from the Iran arms sales to fund the Nicaraguan contras could violate the Boland amend- ment, which barred US intelligence agencies, including the NSC, from helping the contras wage their war against Nicaragua's Sandinista government. The Boland amendment was in effect from May 1984 to September 1986, when Congress lifted the ban. Who controlled the Swiss bank accounts? One CIA bank account, which may have received .contributions from Saudi Arabia, was apparently set up to assist Afghan rebels fighting Soviet occupation rorces. The CIA has said it was involved in the transfer offunds from the Iran arms shipments but denies involvement in funneling profits from the arms deals to the contras. In addition, State Department officials have acknowl- edged that they persuaded the Sultan of the Southeast Asian nation of Brunei to contribute several million dollars to a Swiss bank account to help the contras. It is unclear whether other countries may have contributed to the fund and who managed the account. Questions have also been raised about an account mentioned by Colonel North in instructions to financier H. Ross Perot Mr. Perot agreed to provide $2 million in secret payments in an attempt to help secure the release of American hostages in Lebanon. The plan, allegedly organized by North, never bore fruit Reports have also discussed a series of financial transactions and bank accounts controlled by businesses and associates of retired Air Force Maj. Gen. Richard V. Secord. General Secord has been identified as a close associate of NSC staff member North and has been linked to a secret effort to supply the contras through air drops of weapons and ammunition. The Justice Department has reportedly asked Swiss authorities to assist in an investigation of two bank accounts and three individuals: North, Secord, and Secord's business partner, Albert Hakim. Who set up and ran the secret contra resupply operation? 3entinuad Approved For Release 2006/01/03 : CIA-RDP91-00901R000100010001-8 Approved For Release 2006/01/03 : CIA-RDP91-00901R000100010001-8 The downing of a transport plane over Nicaragua on Oct. 5 has exposed an elaborate secret air resupply operation staffed by former US intelligence officials and operatives. Investigators are looking into the possibility that the profits from the Iranian arms deals may have been used to fund the supply network. They are also trying to discover whether US officials were directly involved in the supply operation during the time the Boland amendment was in effect. Both North and Secord have been directly linked to the Iran arms deal and to continued efforts to assist the Nicaraguan contras. Secord has been tied to the supply effort by former crew members involved in secret resupply flights and by records of frequent telephone calls from a "safe house" in El Salvador to Secord's business and home. North has been identified by Meese as the prime operative in the Iran-contra affair. He is said to have planned and run the shipping of arms to Iran and the funneling of profits from those sales to Central America. Approved For Release 2006/01/03 : CIA-RDP91-00901R000100010001-8 STAT NEW YORK POST ARTICLE APPEAREOved For Release 2006/01/W6MA-if IDIP99600901R000100010001-8 ON PACE INSIDE WASHINGTON For Vice President Bush, VICE President Bush was ousted National Security briefed "several times" by the big question: how By NILES LATHEM aide Lt. Col. Oliver North ings with Iran, The Post has learned. on the status of the ad- -much did he know minis tration's arms deal- But it fa unclear whether Bush knew that the profits from the Iranian arms? have been pushing sale were being averted to fisunboyant Navy Seer- the anti-Communist Nice- tary John Lehman and fiery former UN Ambea- raguan rebels. Bush's staff claims the sador Jeane Kirkpatrick. vice president was But White House offi- cials say the leading can- "stunned" by last week's disclosure of that fact. did& te now appears to be Sources said Bush was outgoin g NATO ambas- briefed on Iran arms deal- sador David Abshire, who ings over the past year by is Shultz's candidate. North, who was fired last 4.:----,',. White House chief-of- Tuesday for his role in or- w staff Donald Regan's can- chestrating the laundering didate, Foreign Police of Iran arms profits to buy Review editor William weapons for the contras. Hyland, is said to be still According to National in the running, but a long- Security Council insiders. shot. Bush ? who was heavily The fact that the embat- involved in administration tied Regan, who enjoyed anti-terrorism policy as unchallenged authority well as with private efforts GEORGE SH GEORGE BUSH ULTZ over presidential appoint to supply anti-Communist rho winnohl Quostion mark. ments, appears to have rebels in Nicaragua ? was been unable to get his "Intimately aware" of criticism from Reagan's Whose candidate Rea- own NSC candidae the job many of North's activities long-time California ad- gan will appoint, prob- is seen as a clear sign that are now under hives. visers for failing to stand ably this week, is seen as that Regan's power has tigation by the Justice up for the President in his crucial to those particip been weakened by efforts Dept. hour of crisis and is ex- ating in the backstage of Reagan's California Bush's national security pected to speak out in sup- lobbying drama because cronies to oust him. adviser. Donald Ciregg. a port of Reagan shortly. It will be a sure indicati FOOTNOTE: Another former ru operative. on of where the foreignsign, that Regan's star is c dm *** keilL_Iituab_anactdat n policy advisers them- waning was seen last e?n selves stand after Reagan week in a private Oval Of- closely activities with North QyAr George Shultz appears to thumitazir. have come out a winner the Iran fiasco. President gave Shultz Shultz, despite the fact broad new powers as the Bush spent Thanksgiv- ? in a behind-the-scenes ing weekend at his home battle among Reagan's that he has run afoul of Adminis tration's foreign in Kennebunkport. Maine, senior foreign policy ad. First Lady Nancy Rea- policy czar. closeted away from the visers over the rep lace gan and her California Shultz asked the Presi- press ? and the scandal ? ment of NSC adviser Pals for distancing him- dent to call Regan into on the advice of his 1988 John Poindexter. self from the President the room so the imperi- presidential campaign ad- Only hours after Rea. over the Iran deal, al- Otla chief-of-staff would visers. gan announced Poindex. ready has defeated a hear the President's in- Up until now, the vice ter's resignation last series of conservative structions. president has yet to come Tuesday over the Iran candidates, according to The President, who out in public to support arms scandal, every insiders, rarely gets himself in- His cabinet rivals ? volved in staff power President Reagan, saying member of Reagan's for- only that he had "no role eign policy team pushed CIA director William plays, agreed to Shultz's in it." his own candidate for the Casey and Defense Secre- request ? sending a clear But Bush has drawn NSC post. tarv Caspar Weinber zer message to Regan. Approved For Release 2006/01/03 : CIA-RDP91-00901R000100010001-8 kftp.j.tivokFekseelease 2006/01/03 : CIA- ON PAGE -4=4--- BALTIMORE SUN 25 November 1986 LDP91-00901R000100010001-8 British paper says Bush was asked about alleged plots by spy services By Gilbert A. Lewthwaite London Bureau of The Sun LONDON ? Vice President George Bush, who was director of fife CentiaIntelligence A enc at the tirrie,_.apere_ y J2..? n years o to assure Britain's Labor Pifiui?minister,llarold_WllSan?that the CIA had no knowledge of _au", intelligence prat _ newspaper reported this weels, Mr. Wilson had become con- cerned that Britain's MI-5 secret ser- vice, dominated by Conservatives, might be trying to undermine him politically, according to The Sunday Times. Mr. Wilson summoned the heads of M1-5, the domestic intelligence service, and MI-6, the overseas espi- onage service, to challenge them with his suspicions. They acknowl- edged that there were anti-Labor factions inside their services but as- sured him that there was no plot. Unsatisfied, Mr. Wilson then asked Sen. Hubert lidlumplirey?a_ liberal Democrat cDe ec on whether the CIA had il?e of an intelligence plot now against As a result, Mr. Bush flew to Lon- 'don to say there was no U.S. knowl- edge of such a plot. Mr. Wilson, still suspicious, unsuccessfully tried to establish a royal commission to check into possible intelligence ser- vice actions again him. Now, according to the Sunday Times, a former MI-5 agent has de- tailed a series of intelligence opera- tions, including burglaries, mounted by the service in an effort to deter- mine whether Mr. Wilson and his top aides had arty Communist con- nections. A court has banned publication of the former agent's book in Britain on the grounds that its author, Peter Wright, was under an oath of confi- dentiality as a former agent, and that his revelations could damage British national security interests. The British government is trying to have the book banned in Austral- ia, where Mr. Wright is now propos- ing to publish it. The Sunday Times, quoting sources in the British government and in in Australia, says the damage done to the secret service by the rev- elation of its domestic political activi- ties is the real reason the govern- ment does not want the book pub- lished. It has been argued in the Austral- ian court case, which continues this week, that allowing a former agent to publish his memoirs would set a significant precedent. A central alle- gation in the book is that the late Sir Roger Hollis, a former director-gen- eral of MI-5, was a Soviet agent. But the revelation this week, if true, will bring a new political di- mension to a case that has already become a major embarrassment to the British governm8nt. It has triggered a debate in Brit- ain on the public's right to know against the government's right to se- crecy. It has provoked a demand that the now unfettered secret services be placed under parliamentary over sight. It has spurred the British attor- ney general to suddenly order a po- lice investigation into earlier alleged leaks by MI-5 officers to an author who also happens to be a Conserva- tive parliamentary candidate. It has produced the spectacle of the country's top civil servant admit- ting, under hostile questioning in a Sydney court, that he had been "eco- nomical with the truth." And it has put Prime Minister Margaret Thatcher in the unusual position of being overruled by the speaker of the House of Commons for declining to answer questions about the issue on the grounds that It was before a court. At the heart of the matter is an autobiography titled "Spy Catcher," by Mr. Wright,-71, a former agent in MI-5 who now lives in Tasmania. The allegation about Sir Roger Hollis has beth made in two books by journalists, but Mr. Wright brings the authority of the insider to his account. The government already has se- cured a court order banning the book in Britain on the grounds that its revelations would damage nation- al security and undermine confi- dence of overseas intelligence agen- cies in the British operation. The government also successfully con- tended that the author, as an MI-5 agent, was under a lifelong vow of confidentiality. In the Australian court, the gov- ernment has suddenly dropped the argument that national security i0 I I-% I IIM its contention that all employees of the secret services are bound to si- lence. It fears that allowing Mr. Wright to publish his memoirs ? the first by a former British agent ? would open the floodgates for others. The government has had some- thing of a rough ride in the Austral- ian court. Justice Philip Ernest Pow- ell has complained of the govern- ment's "serpentine weavings" in shifting the grounds of its argument, and of its legal "mumbo jumbo." Reports of the case published in Britain suggest that the justice has been less than impressed by Sir Robert Armstrong, Mrs. Thatcher's Cabinet secretary and Britain's most powerful civil servant, who was dis- patched to Sydney last week to per- suade the justice to ban the bock. Sir Robert, who has been called "the most Olympian of mandarins" by one commentator, no sooner was in court than Justice Powell said he had been "put up" by the govern- ment to face questions although "it appears there are matters upon which he is quite incapable of assist- ing the court." Sir Robert has been grilled vigor- ously and vehemently by Malcolm Turnbull, lawyer for the author, Mr. Wright, and his publisher, Heine- mann. "Have you been sent here be cause of what you don't know?" asked Mr. Turnbull. He also zeroed in on a letter Sir Robert wrote requesting a pre-publi- cation copy of a 1981 book on MI-5 even though he already had one ? a fact he deliberately concealed. Challenged on whether he had told an untruth in the letter, Sir Rob- ert said he was "being economical with the truth." The Independent newspaper said in an editorial: "This from the man who is chosen by the prime minister to represent her majesty's government in a foreign court. Sir Robert is already well beyond regu- lar civil service retirement age. If Sir Robert retained any self-respect, he would resign from these disagreea- ble duties." Sir Robert admitted under ques- tioning that the British government had done nothing to prosecute MI-5 agents who leaked information to authors of previous books on the service. would be breached and is relying on F R lease 2006/01/03 : CIA-RDP91-00901R000100010001-Sortinued Approved or e Approved For Release 2006/01/03 : CIA-RDP91-00601R000100010001-8 2 It was particularly embarrassing for the government that one of those authors, Rupert Allason, who writes under the pen name Nigel West, will be a Conservative candidate in the next general election. Just 24 hours after Sir Robert's testimony, Sir Michael Havers, the British attorney general, ordered an immediate police investigation into the alleged leaks, which took place at leas'. four years ago. Mr. West's book, 'A Matter of Trust," was pub- lishe un 1982. At another point, Sir Robert re- fused even to acknowledge the exist- ence of M1-6, the sister agency to MI-5. M1-5 handles internal security in Britain, and MI-6 deals with espio- nage overseas. The total lack of disclosure the British government maintains has spurred David Owen and David Steel, Joint leaders of the Liberal-So- cial Democratic alliance, to demand creation of a parliamentary commit- tee to supervise the security ser- vices. "There have been too many spy scandals. Unanswered questions proliferate around Britain's unac- countable intelligence services. This vital reform would let a little fresh air blow into the suffocating closed world of British intelligence," said Mr. Steel, the Liberal leader. Mrs. Thatcher has adopted the traditional posture of saying as little as possible on security matters. Even when the speaker, Bernard Weatherill, ruled that she could not avoid questions, she gave incomplete answers. Approved For Release 2006/01/03 : CIA-RDP91-00901R000100010001-8 A ARTICLEAPpfraproved For Release 2006/01/03 : CIA-RDP91-00901R000100010001-8 ON PAGE NEWSWEEK 24 November 1936 Reagan's Iran Fiasco Amateurish diplomacy damages his credibility at home and abroad This was a Ronald Reagan never before seen on national TV. His jauntiness had turned to strained sarcasm, his easy charm to defen- siveness. Yes, he said, it was true: for 18 months, while publicly insisting on an arms embargo for Iran and no conces- sions to terrorists, his administration had been secretly shipping military hardware to Teheran and pressing officials there to get American hostages out of Lebanon. But the press got it all wrong, he insisted; it was "utterly false" to imply that these dealings amounted to "ransom." Instead, he por- trayed the courtship of Iranian moderates as a secret diplomatic initiative meant to bring Iran back into the Western fold, to end its six-year war with Iraq and only incidentally to win freedom for all hostages in Lebanon, U.S. and foreign alike. But this time the magic didn't work. After a week of growing criticism over the disclosure of the Iranian dealings, the Rea- gan speech drew his first poll showing out- right disbelief and a blitz of criticism from a notably bipartisan bunch of politicians. Reagan loyalists mostly went to ground, and the allies he has been haranguing to hang tough against terrorism and stop sell- ing arms to Iran were caught somewhere between dismay and schoolboy glee at his embarrassment. If the arms shipments weren't ransom, they amounted to another kind of bribery; if Reagan wasn't deal- ing with terrorists?and he insisted he wasn't?he was wooing their sponsors in the open hope of bringing hostages home. In terms of the president's credibility, it was by far the worst fiasco of the Reagan years. As one of his own people mourned, "Even with the whole story out, it doesn't look good." The only clear winner in the affair seemed to be Iran itself. Dubious advice: In part, the unaccustomed tide of disbelief reflected Reagan's many fumbles in foreign policy in recent months. As some officials despairingly see it, there is no coherent foreign policy; instead, the Reagan team has resorted increasingly to one-shot, short-term expedients. "Every- thing is handled day to day, and there is an almost total unwillingness to take the long view," said one experienced hand. In hind- sight, Reagan's exchanging of an accused Soviet spy for journalist Nicholas Daniloff seemed a sign that he was all too eager for a summit meeting. When a hasty agreement with Mikhail Gorbachev to scrap all nude- ar weapons foundered on Reagan's insist- ence on pursuing his Star Wars defense, he and his men sought to portray the breakup as the promising beginning of a deal?but they couldn't get straight what they had agreed to and what it would mean. They A were caught trying to spread disinforma- tion about their plans for Libya, and caught again with the downing of a plane carrying supplies for the Nicaraguan contras, along with mercenaries whose links to Washing- ton were all too plain. The Iranian dealings once again showed the president carrying on his own seat-of-the-pants diplomacy, this time with most of his experienced ad- visers sidelined in dissent and only the gung-ho staffers of the National Security Council on board to give dubious advice. Reagan's televised explanation proved little help. The first opinion poll, by ABC News, found that no matter what the presi- dent said, 56 percent of the sampling be- lieved it was an arms-for-hostages deal and 79 percent disapproved of it. Even if it had been, as Reagan said, an effort to court Iranian moderates, nearly three out of four would turn thumbs down. And in Washing- ton. politicians of all stripes were plainly concluding that Ronald Reagan's Teflon coating was finally wearing thin, though they realized that the president had con- founded such expectations in the past. Tell- ingly, congressional hearings on the case were to start this week?and congressional tempers only worsened when it was dis- closed that the CIA was involved in the A dealings after all, and that CIA chief Wil- M ham Casey had special dispensation from Reagan to skip telling his oversight com- mittees what was going on. With this em- barrassment added to his failure to keep the Senate Republican majority in this month's elections, Reagan's cherished im- age as an effective leader was suddenly looking shaky. 'Major blunder': Predictably, Democratic politicians were on the attack. The incom- ing Senate majority leader, Robert Byrd, called the Iran episode a "major foreign- relations blunder"; denying that there had been negotiations with terrorists, he said, was "like saying it's all right to deal with the Mafia boss but not the hit man." What was surprising was the number of Republi- cans who agreed?and the lack of Republi- cans who would defend their president. Somewhat lamely, outgoing Majority Leader Robert Dole said the operation had been "well motivated" but -a little inept." As most U.S. diplomats saw it, the worst damage was to America's credibility with friends and foes alike. But this concern COIni Approved For Release 2006/01/03 : CIA-RDP91-00901R000100010001-8 rluec seemed sharper in Washington than in tor- eign capitals, where doing one thing and saying another seems more a matter of diplomatic routine. In Paris. Le Monde even congratulated Washington on its "mastery." Arab governments were duly outraged at the arms shipments to a com- mon enemy, and Secretary of State George Shultz. national-security adviser John Poindexter and Vice President George Bush were busy soothing their ambassa- dors. European reaction was divided. Brit- ain's opposition Labor Party spokesman called Reagan's speech "stupefyingly in- credible," but Prime Minister Margaret Thatcher. meeting Reagan last Saturday at Camp David, downplayed any reserva- tions over Iran to stress instead her grati- tude for his backing of her play against Syrian terrorism by announcing largely symbolic new curbs on U.S. trade with Syr- ia. The French, enmeshed in their own deli- cate dealing that resulted in the freeing of two hostages from Lebanon last week ( page 52), were generally smug that the U.S. em- barrassment forestalled any harrumphing from Washington about cash-and-carry di- plomacy. And in capitals from Brasilia to Seoul, arms traders were calculating that the heat from Washington would now be turned down and long-stalled deals with Iran could be activated again. Worst of all, the episode showed once again that amateurs were in charge of U.S. foreign policy, -They've been lucky for a long time," said David Aaron, an NSC member under Richard Nixon and Jimmy Carter. "But now they've waded into the big leagues and gotten taken twice?by the Russians and by the Iranians. That's very- upsetting for our allies, because they know that in the end their security is totally dependent on our competence." Secret tasks: In part, insiders say, the Ira- nian dealings can be traced to Reagan's personal concern for the plight of the hos- tages and their families?and for all his efforts last week to portray that as second- ary, his aides made it clear that it was a top priority. But when he chose to move, Rea- gan followed another instinct: he bypassed the Defense and State bureaucracies to op- erate largely on his own, through the NSC. Every president since John Kennedy has turned to the NSC for clandestine oper- ations. and this has usually created fric- tions with the State Department. In fact, Reagan was initially so determined not to follow the pattern of the Carter adminis- tration that he banished his first national- security adviser, Richard V. Allen, to the White House basement. But the tempta- tion to use the NSC on secret tasks, and even for making policy, is almost irresisti- ble. "It's the only piece of government a president's got that's totally responsive to Approved For Release 2006/01/03 : CIA-RDP91-00901R000100010001-8 him," says a former NSC staffer. In addi- tion, Reagan himself likes to go it alone: he believes, says a friend, that "America will save the world, just as John Wayne does. Ronald Reagan's completely comfortable with that." The result is not policymaking but one-shot diplomatic coups, like the im- petuous bargaining at Reykjavik or the raid on Libya. And so it was, critics charge., with Iran: the president and chief of staff Donald Regan, laments another White House aide, "care about results more than they care about policy." Reagan's speech artfully avoided such questions as what part Israel had played in the maneuvering. It dismissed most of the widely reported details as "rumors" and sought to cast the whole affair as an exercise in high statecraft. It was clear that Shultz and Defense Secretary Caspar Weinberger had objected to the negotiations as too risky, a betrayal of principle and a threat to both Reagan's authority and the nation's credi- bility. Reagan chose to go along with Regan and Poindexter in a scheme so secret that Shultz himself, according to a State De- partment spokesman, was only "sporadi- cally informed on some details." Staffers at the State Department are furious over Shultz's treatment and the NSC's policy ascendancy; former Under Secretary Law- rence Eagleburger calls the two-faced poli- cy "monumentally unprofessional" and warns, "Neither our allies nor our enemies will be able to rely on what we say." Defensive weapons: Reagan didn't say which faction in Iran he was dealing with. By most accounts, he was trying to bolster the prospects of the Parliament speaker, Hojatolislam Akbar Rafsanjani, who is said to favor improved relations with Iran's neighbors even if it slows the exporting Of the Islamic revolution. But when the story of the negotiations was leaked to a pro- Syrian magazine in Lebanon by supporters of Ayatollah Ruhollah Khomeini's nomi- nated successor. Ayatollah Hussein ' Ali Montazeri, it was Rafsanjani himself?per- haps as a defensive ploy?who denounced Reagan and derided his special ambassa- dor, Robert McFarlane. McFarlane last week disputed the colorful details of Raf- sanjani's account: he didn't carry an auto- graphed Bible or a key-shaped cake to Te- heran, he said, and he wasn't put under arrest; the whole diplomatic visit was con- ventional, prearranged and productive. In Reagan's telling, the arms actually sent to Iran were a mere handful of defen- sive weapons?not more than a planeload in all, certainly not enough to influence the outcome of the war. But reports persisted that there had been other shipments, rout- ed through Israel with Washington's cov- ert blessing, perhaps as early as 1982. After two such shipments in September 1985, hostage Benjamin Weir was released. Rea- gan formally approved shipments from the United States last spring. The Rev. Law- rence Jenco, a Roman Catholic missionary, and David Jacobsen, a hospital administra- tor, were freed after several more arms loads were received. But in each case, ad- ministration sources said, the negotiators : hoped for more hostages than they actually got. The Iranians maintained they could only influence the terrorists in Lebanon, not give them orders, and couldn't prevent the price from escalating. Were the Iranians dealing in good faith? McFarlane, a cool and seasoned diplomat whose involvement in the dealings was one of the few encouraging signs many of his colleagues saw in the whole affair, : maintained that "we are not dealing with an extortion situation here." But the sec- ? ondhand nature of the bargaining fore- closed a clean deal (all the hostages in ex- change for one shipment) and was an open invitation to string out the releases. What's more, there was no net gain for Wash- ington: though three hostages had been freed, three more were taken. Administra- tion officials maintained that the primary terrorist groups, Islamic Jihad and Hizbul- lah, were influenced by the Iranian moder- ates and were restraining themselves. But in a briefing last week, a senior administra- tion official acknowledged that the Revolu- tionary Justice group, which is thought to have kidnapped the last three American hostages, is influenced by Mehdi Hashemi, a relative of Montazeri, and that "our view is that Hashemi was probably involved in the taking of the last three hostages." 'Mere lies': In the end, by one means and another, Iran seems to be winning most of its major objectives. It has had arms ship- ments from Washington, and further arms deals with other suppliers will now be much harder for Reagan to discourage. The French have expelled Iranian dissidents from Paris and agreed to pay $330 million in Iranian claims, while the United States is negotiating the return of $485 million in frozen Iranian funds. And Iran continues to make demands. President Hojatolislam Ali Khamenei, who is said to be one of the moderates, last week coolly dismissed Rea- gan's account of the 18-month negotiations as "mere lies," and said there would be no compromise until Washington changed its Mideast policy. That could well happen, but not through any consistent foreign policy. In truth, there is none. The lesson of the secret talks with Iran, says Simon Serfaty, a well-wired academic at Johns Hopkins School of Ad- vanced International Studies, "is not just that we do not have coherent policies. The problem is that right now we do not even have a coherent process for ? formulating those policies." And given the number of potential disasters waiting to happen? from the Philippines to Egypt, from South Africa to Mexico?that is a fact to give any friend of America cause for dismay. LARRY MARTZ with MARGARET GARRARD WARNER, JOHN BARRY. ROBERT B CULLEN and DAVID NEWELL/it Washington and bureau reports Corrtinued Approved For Release 2006/01/03 : CIA-RDP91-00901R000100010001-8 Approved For Release 2006/01/03 : CIA-RDP91-00901R000100010001-8 "A":LIED NEW YORK TIMES 20 November 1986 'British Name Iran-U.S. Go-Between ? By JOSEPH LELYVELD Special to The New York Times LONDON, Nov. 19 ? A British televi- sion documentary, scheduled to be broadcast here Thursday, will name an Iranian businessman as a likely go-be- tween in the secret diplomacy between the Reagan Administration and the Te- heran authorities lariy this year. The businessman, Cyrus Hashemi, died suddenly in a privateQondon hos- pital in July of what was diagnosed as rare form of cancer. At the time of his death, his brother here suggested that Mr. Hashemi might have been killed because of his role as a Justice Department inform- ant in a case of Illegal arms smuggling to Iran. The smuggling case resulted in the indictment in New York of an Is- raeli general and nine others accused of being co-conspirators. The Thames Television documen- tary, which was shown in a preview here today, bases its contention that Mr. tilashemi was functioning as an Ad- ministration intermediary on sources it does not identify and on an interview with Elliott L. Richardson. the former Attorney General who is described as having acted as Mr. Hashemi's lawyer. C.I.A. Contact Reported ? Speaking to viewers at the preview, the reporter renponsible for the pro- gram, Julian Manyon, quoted Mr. Rich- ardson as having said that he had re- ferred Mr. Hashemi to a contact in thel Central Intelligence Agency early this year. According to the reporter, it was not Mr. Richardson but the unidentified sources who confirmed that Mr. Hashemi went to work for the agency. Earlier this month, while attenchng conference :n Peking, Mr. Richardson said he 'rad arranged contact between Mr. Hasnemi r&itimerican officals 'r an effort to win f-eedom for the hos- tages in Lanor. But he denied any connection c the secret American arms deliveries to Iran. The thesis of the television doucmen- tary is that Mr. Hashemi was involved both in an arms deal the Administra- tion did not authorize ? the one that produced the indictments ? and in set- ting up the negotiations that led to the arms shipments that were secretly au- lioriied for Iran. The program asserts that he played a similar intermediary's role in the secret negotiations that preceded the release in 1981 of the hos- tages,held at the American Embassy in Teheran. ??????????1011?? Quoting a Justice Department tape of a bugged conversation between Mr. Hashemi and an American lawyer named Samuel Evans, who was also in- dicted on the illegal arms traffic charges, the program reports chat the arms dealers learned late last year that the Administration was changing its line on arms sales to Iran. In the conversation as it is represented on the program, the lawyer says he has heard that Vice President Bush approved the change but that Secretary of State George P. Shultz opposed it. The con- versation is said to have been recorded last December. The source Mr. Evans cites for this information was a reputed arms dealer in the south of France named Jean de la Rocque, also known as Rousseau, who was later named as a co-conspira- tor with him. Mr. Manyon said he had talked to Mr. de la Rocque, who had confirmed the lawyer's account. Mr. Evans, the Thames TV program will point out, is a lawyer for Adnan Khashoggi, a Saudi businessman and arms dealer. Mr. Khashoggi was re- ported by The Observer last Sunday in a vaguely attributed article to have met with high 'Israeli officials to ar- range the arms shipments to Iran. Meanwhile, Britain's Ministry of De- fense confirmed reports that an official Iranian delegation visited Landon for talks with International Military Sales, a state-owned company that handles British arms exports. The Iranians were said to oe seeking spare parts under contracts that were signed in the 1970's before the fall of the Shah. Since December 1984, Britain nas en- forced what the Foreign Office de- scribes as a restrictive policy on sales of military equipment to Iran. it nas never banned all such sales, but it nas turned down applications for equip- ment that could be described as -le- thal" or that could be said to have a bearing on the balance of power be- tween Iran and Iraq, enemies in the nearly six-year-old Persian Gulf war. Timothy Renton, a junior minister in the Foreign Office, answered opposi- tion emerges that the Government of Prime Minister Margaret Thatcher was as compromised on arms deals with Iran as the Administration was by saying the licenses turned down would have been worth hundreds of millions of pounds to British companies. Tank Spare Parts Shipped Nevertheless, about five months after the restrictive policy went into ef- fect, several planeloads af spare parts for Chieftain tanks and Scurown ar- mored vehicles were flown trf:n Heathrow Airport to Teheran. A Far- e! gn Office official explained that these parts were unrelated to the weapons systems of the tanks or armored cars; requ'ests for spare weapons parts were turned down, the official said. Approved For Release 2006/01/03 : CIA-RDP91-00901R000100010001-8 STAT -App_rovect r Release 2006/01/03 : CIA-RDP91-00901R000100010001-8 WASHINGTON TIMES 17 November 1986 t4.7 Reagan to make second 'damage-control' TV appearance STAT By Jeremiah O'Leary THE WASHING ON TIMES President Reagan, his Teflon shield nicked by revelations of se- cret U.S. arms shipments to Iran, will face a national television audi- ence again this week in an effort to bolster his credibility and that of his senior advisers. The Iran affair, which Mr. Reagan first addressed publicly in a tele- vised speech last Thursday, has pre- occupied the ad- ministration for weeks. ANALYSIS Administra- tion officials say it is too early to tell whether the president's Iran strategy will pay off or prove to be an embarrassing blun-. der. But there is certainty that Mr. Reagan and his senior advisers will be put under intense scrutiny, begin- ning in a Wednesday evening press conference, over the decision to sell arms to Iran -- a nation the United States still accuses of fostering ter- rorism. The solidly Democratic Congress is unlikely to lend a sympathetic ear when the White House sends a re- presentative to the House and Sen- ate intelligence committees to de- fend the Iranian venture. Mr. Reagan is expected to claim executive privilege and protect Na- tional Security Adviser John Poin- dexter and other National Security Council aides from testifying under oath. CakireclOr Wil1ignI_CsIEMA14_ must answer to Congress, is likely to take the greatesffeat. dinoldjagjurther down the road there is speculation that the Iranian negotiations could result in the re - ' ignation of some Reag_a_n adminisa tration orricrars?Claio opposed the president's _poligy decision and played no part in carrying out what became an NSC,-CIA operatiog, On the political front, the Iranian niffair has done damage to the pres- dential aspirations of Vice Pres- dent George Bush and other Repub- can candidates in the 1988 election. Mr. Bush in particular has the choice of disassociating himself from Mr. Reagan's policy decision or of ng forced to defend ittAPProved Fbeior Release 2006/01/03 : CIA-RDP91-00901R000100010001-8 NEWS STAT Unless unfolding events prove that Mr. Reagan's overtures to Iranian moderates were successful in ending the 6-year-old Iran-Iraq war and state-sponsored terrorism in Tehran, the Democrats are likely to try to keep the issue alive to blud- geon the Republicans for the next two years. The international implications of Mr. Reagan's gamble are enormous. Secretary of State George P Shultz, who stops just short of saying that he opposed the policy decision and acknowledges that he had only frag- mentary knowledge of it, is in an almost untenable position. Although Mr. Reagan has ac- knowledged the Iranian contacts, Mr. Shultz must continue to declare to other nations that the United States does not negotiate with ter- rorists and maintains an arms em- bargo on both sides in the Iran-Iraq war. It is impossible to know the extent of damage to American relations with its Arab friends who fear the Iranians more, if possible, than they fear Israel. On the domestic front, White House Chief of Staff Donald Regan told reporters last week that con- gressional leaders were not in- formed of the Iranian contacts be- cause Attorney General Edwin Meese III assured the White House there was no need to notify them. Mr. Poindexter said the adminis- tration knew there was a risk that the operation would be exposed. "If you are unwilling to take risks, you seldom make any progress on some of these very difficult issues. We knew there would be questions raised as to whether this was a good idea or not but on balance the pres- ident decided to go ahead with it." He said the four-day mission to Iran by former National Security Adviser Robert C. McFarlane was racing the clock on the entire set of issues including the fate of the hos- tages, the Iran-iraq war and the pos- sibility that the 86-year-old Ayatol- lah Ruhollah Khomeini would pass from the scene. The president and his men have said the United States did nothing to benefit Hezbollah or Islamic Jihad, the captors of the American hos- tages. They say the shipment of the equivalent of one planeload of mili- tary spare parts and anti-aircraft weaponry was a "judgment call," de- signed to assure "our interlocutors" in Iran they were really dealing with the president himself. The chief argument of those who oppose Mr. Reagan's initiative is that it created the impression that all ter- rorists have to do to obtain arms from the United States is seize more American hostages. Unanswered questions abound. None of the pronouncements of Mr. Reagan or his aides, now engaged in a massive "damage control" opera- tion with the media, have stated who convinced the president to approve the deal. No official will discuss whether the United States condoned Israeli arms shipments to Iran. No official has publicly named the Iranian mod- erates with whom Mr. McFarlane met. The only explanation of why the Joint Chiefs of Staff were left out of the decision is that it involved an intelligence operation, not a military one. Mr. Reagan has been a popular chief executive and few would deny that he also has been a very lucky one. He may still pull the Iranian affair out of the fire. But in 1980, it was Iran that sank President Carter's po- litical future. It is Iran that now has Mr. Reagan in a near-desperate de- fense of his gamble. Africa ON PAGE ved For Release 2006/01/03 : CIA-RDP91-00901R000100010001-8 LOS ANGELES TIMES 15 November 1986 President Reportedly Had CIA Avoid Usual Channels By MICHAEL WINES and JAMES GERSTENZANG, Times Staff Writers WASHINGTON?President Reagan, relying on a controversial provision in the intelligence laws, signed a directive almost a year ago ordering the Central Intelligence Agency to join in the secret weap- ons-for-hostages negotiations with Iran and to conceal its activities from Congress, a government offi- cial familiar with the operation said Friday. The directive cloaked an exten- sive CIA role in the operation, including supplying the National Security Council with intelligence data and logistical support for the venture, and probably planning and cover for secret weapons ship- ments as well, the official said. In addition, White House spokesman Larry Speakes said Friday that the CIA was represented at each of the secret negotiating sessions be- tween U.S. envoys and Iranian leaders held in Europe and Tehran. ' Reagan's unusual order, and the CIA's subsequent activities, reflect the fact that the Iran operation was carefully constructed in two re- spects. It was at the limits of legal restrictions on such activities, in the Administration's view, and it by-passed completely the channels normally used for planning and carrying out even clandestine for- eign policy and intelligence activi- ties. Yet this approach?reinforced by the operating style of national security adviser John M. Poindex- ter and by the evolving role of the National Security Council in such activities?shaped the operation in ways that have ultimately eroded the _ credibility of Reagan's public campaign against terrorists and created severe problems for the Administration with Congress, U.S. allies and others. The White House thinking, said one congressional official, was that "This is extraordinarily sensitive. Nobody can know about it. We can't trust the State Department." But that official and others said the Iran project's extreme secrecy shielded it from the expert scrutiny routinely given other major policy initiatives?a process of analysis that might have led to changes or even scrubbing of the venture. And when the secret was re- vealed to the President's shocked political backers this week, the White House was bereft of the support it normally can summon from those taken into its confi- dence. ''There is a tremendous amount of unhappiness among the Presi- dent's personal constituents," one Administration official said. "And his constituents on Capitol Hill are almost unanimous in registering their dismay." So tightly wrapped was the affair that no more than five or six White House officials?the President, Poindexter, his aide Marine Lt. Col. Oliver L. North and three persons in North's office?had direct knowledge of its operational de- tails, officials say. In the case of the CIA, Reagan's unusual order?and the CIA's later activities?have yet to be fully , explained to congressional leaders, who were told about the Iran operation for the first time in a White House briefing on Wednes- day. In that briefing, Administra- tion officials suggested CIA in- volvement had been marginal at most. "If those things are true," said Senate Intelligence Commitee spokesman David Holliday in reac - tion to Speakes' comment Yriciay about CIA involvement, "that's contrary to what we were told (earlier)." With even most of the National Security Council staff excluded, the only people reliable enough to plan and support the project, White House planners apparently con- cluded, were at the CIA. It was a decision which now appears likely to produce the most telling political damage in the wake of this week's revelations, for the CIA is subject to special scrutiny by Congress. And the President?act- ing on the advice of Atty. Gen. Edwin Meese III, Meese himself said Thursday?decided early in the operation that Congress would not be told of the venture for fear that it would be leaked. A welter of federal laws, many stemming from the CIA abuses of the Watergate era, require agency officials to inform Congress in advance of any intelligence-agen- cy operations in a foreign nation beyond normal information-gath- ering duties. The key legal issue is likely to be a complex question of whether or not the White House met the law's demand for "timely" notification of at least some congressional leaders. The White House contended pri- vately on Thursday that its actions were perfectly legal. And Senate ?ave Durenberger, who has ex- telligence Committee chairman STAT I ressed concern at not being told of the operation, said Thursday that he believes the White House's secrecy bends the spirit of the law, but probably not its letter. The National Security Council "structured their mission" in such a way as to avoid having to notify Congress, Durenberger said. He added that he had warned the Administration in a 1985 speech that its penchant for secrecy would "blow up in your face. Approved For Release 2006/01/03 : CIA-RDP91-00901R00010001.001911A Approved For Release 2006/01/03 : CIA-RDP91-0090 '"l'imely fashion" has never been defined. Prof. Johnson contends that it traditionally has been judged to be 24 hours; the White House official contended it extends to the summer of 1985, when the opera- tion began. "The President's judgment as to what's timely," he said. "The rea- sons (for not notifying Congress) were because of the sensitivity of the operation and the safety of the hostages." Said a Senate Intelligence Com- mittee aide on Friday: "The mem- bers of the committee probably do not believe 18 months is timely fashion." Under Poindexter, and his imme- diate predecessor, Robert C. McFarlane, the National Security Council director has become the center of a small network of ac- tion-oriented aides with direct ties to like-minded officials in the De- fense Department, State Depart- ment and the intelligence commu- nity, Administration sources say. And that tendency has been reinforced by the reporting restric- tions Congress placed on the CIA when it is involved in covert operations. "This is like a little cell within the NSC, a little nucleus within the NSC staff, very close to Poindexter, with lines out to some people in this building ( the Pentagon) and to the State Department, who delight in this sort of covert activity," said one Pentagon official. The official, speaking on the condition of anonymity, was clear- ly upset over this trend. He put Col. North in this group, and added: "I'd take 011ie North and dump him right over the cliff." "Starting with [Henry] Kissin- ger, the national security advisers have moved from being an anony- mous, behind-the-scenes coordi- nator to a small department which frames policy, which directs how operations should be run." Kissinger, who served as nation- al security adviser and then secre- tary of state under President Rich- ard M. Nixon, and President Jimmy Carter's national security adviser, Zbigniew Brzezinski "both fash- ioned themselves as global geo-po- litical thinkers," this official said. "I don't think Poindexter views him- self as a cosmic, global thinker. He's more operations-minded." "What disturbs me is that the "But they live in fear of revela- tions," he said. On Friday, a specialist on the CIA and former aide to both the House and Senate intelligence committees called Reagan's deci- sion to withhold notification an "unambiguous" violation of a 1980 law, commonly called the Intelli- gence Oversight Act, strengthen- ing Congress's power to review CIA and other intelligence-agency operations. The law in question amends the 1947 National Security Act, the granddaddy of intelligence laws and the charter of the National Security Council. Among other points, it mandates that the intelli- gence panels be "fully and current- ly" told of CIA actions, including "significant anticipated activities." Such activities are specifically de- fined in another law to include covert foreign-nation actions cer- tified by the President as in the national interest. A clause in the amendment al- lows the White House to constrict that notification?under "extraor- dinary circumstances affecting the vital interests of the United States" ?from the intelligence committees to a group dubbed the "Gang of Eight." The members are the four GOP and Democratic con- gressional leaders and the chair- men and vice-chairmen of the two intelligence panels. That reporting requirement is ironclad, contended University of Georgia professor Loch Johnson, who worked until 1979 as aide to the late Senate Intelligence panel chairman Frank Church ( D-Idaho) and then to former House commit- tee member Les Aspin ( D-Wisc.). "I defy anyone who knows basic English to take the law out and read it, and tell me otherwise," he said. "It requires prior notification. Even in so-called times of emer- gency, the prior notification has to come to the Gang of Eight." But a senior White House official speaking to reporters on back- ground Thursday evening, cited yet another clause in the law. That clause, dubbed the "timely notice" paragraph, requires that the intel- ligence panels be told of covert actions in "timely fashion" if not notified in advance as the law seems to require. 1R000100010001-8 President can be influenced by a small group of people who don't see themselves as responsible to the Secretary of State and the Secre- tary of Defense" and who don't give much weight to their views, he said. Said one senior official of Poin- dexter, "John is a person whose career has been devoted to gettings things done and solving problems. He approaches the job that way, not being ideologically wedded to a policy. There are a lot of things that are politically sensitive?like Iran?that John would be fearless on. And it will cost him. He's not going to be as politically sensitive, or sensitive to public opinion. This means he'll get things done that will go down poorly with the public and Congress." In the days after the broad - outlines of the venture became public, Poindexter led a fierce be- hind-the-scenes battle to keep its most intimate details from being revealed?a fight in which he ini- tially prevailed over angry protests from White House spokesman Speakes and chief of staff Regan, sources say. The unusual stealth was part Of the very conception of the opera- tion in midsummer of last year, when McFarlane was national se- curity adviser and Poindexter his deputy. In public explanations this week, White House officials stressed that the first deliberations over the Iran venture included not just the Presi- dent, McFarlane and Poindexter, T- ut Shultz, Weinberger, Vice Pres- dent George Bush, Atty. Gen. 1 eese and other top-level presi- dential aides. But as one of those aides told a clutch of reporters in a Thursday autopsy of the operation, "within their bureaucracies, it's (knowl- edge of the operation) been ex- tremely limited." Just how limited has not become apparent until late this week, when the White House decision to go public about the operation convinced more reluc- tant officials to talk as well. Within the State Department, Undersecretary Michael L. Arma- cost, the department's political af- fairs czar, may have known. But only the barest hints of the project ever reached the department's as- sistant secretary for near east af- fairs, Richard W. Murphy, a Mur- phy aide said, and Murphy apparently brushed those hints aside. orrtinued Approved For Release 2006/01/03 : CIA-RDP91-00901R000100010001-8 STAT Approved For Release 2006/01/03: CIA-RDP91-00901R000100010001-8 Murphy was actively traveling the Mideast, pressing the Reagan Administration's stated policies on terrorism, the Iran-Iraq War and other crucial issues, at the same time the clandestine- policy was being drafted and executed. During the same period, top officials in Murphy's division?un- aware of the on-going NSC opera- tion?drafted and sent to higher levels their own proposal for quiet diplomatic openings to Iran, only to have the proposal thrown repeat- edly back in their faces, without explanation. "We could never get it past Shultz," one said, ruefully, last week. Nowhere was the befuddlement greater than in the White House itself, however, where execution of the plan was carefully limited to Reagan, Regan, Poindexter and the National Security Council's office of political-military affairs, one of Li NSC subdivisions. North is one of two deputy directors of that office. But the senior director, Howard J. Teisch- er, also played an active role in Iranian overtures and, according to one outside observer, may even have accompanied McFarlane and North on the ill-fated trip to Teh- ran last May. 'reischer, a Middle Eastern ex- pert, gained repute among report- ers this year as a prime source of a spectacular ?and apparently delib- erately inaccurate?story alleging that the United States was moving toward military action against Lib- ya, a story that later became identified with a Poindexter-ap- proved "disinformation" campaign against Libyan leader Moammar Kadafi. The four or five NSC offices that normally would have been tapped for advice and information on poll- cy changes were omitted from participation in the Iranian project. That left the CIA?with all the potential for legal and political problems its use entailed. Approved For Release 2006/01/03 : CIA-RDP91-00901R000100010001-8 A V ARTICLE AppEAREDApproved For Release 200 L.-" \ ON 13 November 1986 Reagan Said to Have Signed Order STAT Seeking Rapprochement With Iran Sources Say CIA and Others . Are Carrying Out Policy Issued Earlier This Year By JOHN WALccrrr if ta Reporter of THE WALL STREET JOURNAL STAT WASHINGTON?President Reagan ear- ier this year signed a secret presidential directive ordering the U.S. government to seek a rapprochement with Iran, according to current and former U.S. officials who helped plan and execute the policy. The covert U.S. efforts to carry out the directive are being conducted by officials from the Central Intelligence Agency and other U.S. intelligence services, as well as by a small group of White House aides, these officials assert. Under the policy the president also ap- proved Israeli shipments of American- made arms to Iran, in part to win the re- lease of hostages held by Iranian sympa- thizers in Lebanon, the officials said. The covert efforts are continuing despite the fact that some of them have been disclosed in the Mideast and the U.S. press, severely embarrassing the U.S. and taking its allies by surprise. As the secret diplomacy has been dis- closed in bits and pieces, it has sometimes appeared to be an ad hoc operation con- ducted by only a few people. But officials involved claim that the program emerged from a formal, though secret, shift in U.S. foreign policy emanating from the pre dent's desk and carried out by the full i telligence apparatus at his command. Secret Policy Raises Questions The secret policy already has damaged the administration, and it raises questions about whether the White House violated U.S. laws by allowing arms to flow to Iran and by failing to inform Congress at the outset of its covert activities. The U.S. has been caught negotiating with and helping to arm a fervently anti-American regime that has been condemned for supporting terrorism and that Washington has been pressing other countries to isolate. Since the policy was adopted, three American hostages have been released by terrorists loyal to Iran in Lebanon. But new hostages have been seized and STAT Iranians have reneged on understandin to free other hostages, while taking American-made military gear. Last Ma former national security adviser Robe McFarlane and a current White Ho aide, Lt. Col. Oliver North, personally a tompanied a plane load of military equip- ment to Tehran but got nothing in re- turn. Mr. Reagan's secret diplomacy is the Most stunning shift in U.S. policy toward a hostile nation since the Nixon administra- tion secretly began pursuing a rapproche- ment with China in 1969. According to the Officials who planned and executed it, the covert policy is intended to free Anierican and other hostages in Lebanon, to begin a "strategic dialogue" between the U.S. and Iran, and to head off growing Soviet at- tempts to gain influence in Iran. "The U.S. purpose from the beginning was to engender a process that might lead to an improvement in relations with Iran in ways that are compatible with our obli- gations to others in the region," Mr. McFarlane said yesterday. ''Such a pro- cess could not proceed without the prior re- lease of the U.S. hostages." But the covert diplomacy violates both the administration's passionately stated policy of refusing to negotiate with terror- ists and Washington's efforts to stanch the flow of arms to Iran. It has damaged U.S. relations with some moderate Arab states and with America's European allies and raised embarrassing questions about the policies and practices of Ronald Rea- gan's National Security Council. Hearings Planned One issue is whether the administration violated a 1980 law designed to ensure con- gressional oversight of covert intelligence operations. Several congressional commit- es plan hearings on the secret program. ep. Dave McCurdy (D., Okla.), a mem- er of the House Intelligence Committee, aid yesterday that he didn't recall any ad- ministration briefing for the intelligence panel on U.S. activities concerning Iran. "The first time I heard of any of the Iran dealings was when I read it in the press," he said. Yesterday, nearly a week after an Iran- ian official disclosed Mr. McFarlane's se- cret visit to Tehran in May, congressional leaders were hastily called to the White House for a two-hour briefing on what an administration official called "recent de- velopments in U.S.-Iran relations." Sen. Robert Dole (R., Kan.), Sen. Robert Byrd (D., W.Va.), Rep. Jim Wright (D., Texas) and Rep. Richard Cheney (R., Wyo.) at- nded the meeting, which included Mr. eagan, Vice President George Bush, Sec- etary of State George Shultz, Secretary of fense Caspar Weinberger, Attorney Gen- ral Edwin Meese, CIA director William asey, National Security Advisor John oindexter, and White House Chief of Staff Donald Regan. But the congressional lead- ers wouldn't discuss the meeting. "He's (Mr. Dole) been real tight-lipped about it," said Dole spokeswoman Dale Tate. After the session, Mr. Byrd, who has been critical of the idea of trading arms for hostages and of the administration for circumventing Congress in the operation, said: "My mind has not been changed." One participant in the secret program concedes that the administration made "an error in judgment" by trying to negotiate the opening of a U.S.-Iranian political dia- logue "concurrently with the release of the hostages." Mr. McFarlane hoped to advance both causes on his May trip to Tehran. But the Iranians took the military hardware on Mr. McFarlane's plane, refused to let him see top Iranian leaders, and said they couldn't arrange the release of American hostages, according to sources who were present during the incident. The Iranians then tried to bid up the price of the hos- tages by hinting that the Americans might be set free if the U.S. persuaded Kuwait to release 17 convicted terrorists and if Israel withdrew completely from southern Leba- non, the sources said. The Iranian ambassador to the United Nations, Saeed Rajai-Khorasani, said in New York yesterday that Mr. McFarlane's May visit was "an overture to reestablish talks with Iran" and that it had "nothing to do with the hostages." The envoy con- firmed that Iran was receiving U.S.-made weapons but said that "we didn't have any arms deal or any other kind of deal with regard to the release of the hostages with the United States or anyone else." The ambassador said American weapons were reaching Iran either as part of transactions made directly with arms traders or possibly as fulfillment of pre- viously signed contracts between the U.S. and the late-Shah of Iran. But he refused to clarify whether these deliveries reflect re- cent agreements between the two coun- tries. He suggested however, that if the U.S. were to release vast quantities of spare parts and arms paid for by the pre- vious regime, a "favorable atmosphere" may develop that may facilitate the hos- tages' release. The secret U.S. contacts with Iran that led to Mr. McFarlane's May mission began last year, when officials in the National Se- curity Council staff became increasingly frustrated by Syria's inability to win the Continued Approved For Release 2006/01/03 : CIA-RDP91-00901R000100010001-8 Approved For Release 2006/01/03 : CIA-RDP91-00901R000100010001-8 release of the hostages in Lebanon and alarmed by Iran's growing dependence on Soviet-bloc arms, policy participants said. Although U.S. intelligence on Iran was generally skimpy, White House officials believed the Soviets were undertaking a major military buildup on the Iranian bor- der, partially camouflaged by movements of Soviet troops in and out of neighboring Afghanistan. And, U.S. officials claim, that the KGB, the Soviet intelligence agency, was intensifying its activities within Iran. The plight of the hostages and growing White House fears about Soviet moves in the region provided the motives for se- cretly reversing U.S. policy toward Iran. Israel provided an opportunity. David Kimche, then the Director-Gen- eral of the Israeli Foreign Ministry, met with Mr. McFarlane in Washington late in the summer of 1985 and stressed the need for improved U.S. relations with Iran. Other participants in the discussions say Mr. Kimche suggested that Mr. McFarlane contact an Iranian named Manucher Ghor- banifar, who he said had "channels" to the Ayatollah Khorneini's designated succes- sor, Ayatollah Hussein All Montazeri, and to Iranian Prime Minister Mir Hussein Mu- say. But Mr. Kimche warned Mr. McFarlane that the Iranians would need some evi- dence of American good faith and sug- gested that the U.S. might provide spare ? parts that Iran needs in its war against Iraq. When Mr. McFarlane said the U.S. couldn't do that, Mr. Kimche, the sources say, asked if the U.S. would continue to sell arms to Israel if the Israelis shipped some weapons to Iran. Mr. McFarlane, ac- cording to this account, said the U.S. wouldn't provide Israel with arms to re- place shipments to Iran but added that the U.S. would continue its military support to Israel. After a meeting with his top national se- curity advisers, including Secretaries Shultz and Weinberger, Mr. Reagan as- signed Mr. McFarlane and Lt. Col. North to secretly pursue the effort to open a polit- ical dialogue with Iran. Messrs. Shultz and Weinberger approved a political opening to Iran but opposed any arms transfers, ac- cording to one official at that White House meeting. What Was Discussed The administration's contacts with the Iranians eventually led to a one-hour meet- ing in London last December between Messrs. McFarlane, Kimche and Ghorban- ifar. According to participants, Mr. McFarlane began the meeting by saying he was present on behalf of his govern- ment to open a political dialogue with Iran- ian leaders. Mr. Ghorbanifar replied that Iranian of- ficials needed signals of U.S. sincerity be- fore they could accept the American initia- tive, the participants said. But they added that the Iranian never specified what those signals might be, never solicited American arms or spare parts, and never suggested a deal for the hostages in Lebanon. The participants said Mr. McFarlane "firmly, unequivocally" rejected any deals with the Iranians for the hostages and the meeting broke up with the Iranian agree- ing to convey the U.S. interest in opening a "strategic dialogue" to top leaders in Teh- ran. Upon his return, Mr. McFarlane recom- mended that the administration try to do business only with Iranian officials, rather than with intermediaries such as Mr. Ghorbanifar. But Iran sent word that the U.S. should press on through Mr. Ghorban- ifar and meetings between U.S. and Iran- ian officials continued. Meeting in Tehran One hostage had been released in Sep- tember 1985, shortly after the U.S. began trying to improve relations with Iran. Then after a period of no progress, the ice ap- peared to begin breaking last April. Mr. Poindexter, who succeeded Mr. McFarlane as the president's national security ad- viser, told Mr. McFarlane that the admin- istration had reached an agreement with Iran to open a political dialogue that in time could lead to freedom for all the re- maining hostages in Lebanon. The national security adviser asked his predecessor if he would fly to Iran to initiate the dia- logue. The Iranians recommended that Mr. McFarlane come aboard a plane scheduled to deliver a load of spare parts for the Iranian military from a third country. "It was their suggestion that we pose as arms dealers," one source insists. Meeting in a Tehran hotel, Mr. McFar- lane, according to sources who were pres- ent, warned his hosts Iran was vulnerable to Soviet pressure, and suggested that Washington could serve as a mediator to help end the Iran-Iraq war. He also, ac- cording to the sources, stressed that the Soviets were stepping up their attacks on the Iranians' brother Moslems in Afghani- stan. The Iranians replied that the U.S. owed a debt to Iran, according to sources who were present. The Iranians cited U.S. arms purchased by the late Shah but never de- livered following his overthrow and $500 million in Iranian assets frozen in the U.S., the sources said. Mr. McFarlane said that there could be no movement on such issues unless Iran freed the hostages in Leba- non. The mission collapsed when the Iran- ians kept the military equipment aboard the Boeing 707 jet and declared that get- ting their allies in Lebanon to free the hos- tages was "very difficult." Nevertheless, the administration has pressed on. Even after Iran disclosed the May trip last week, U.S. and Iranian offi- cials were continuing negotiations in Eu- rope about improved relations. Approved For Release 2006/01/03 : CIA-RDP91-00901R000100010001-8 Approved For Release 2006/01/03 : CIA-RDP91-00901R000100010001-8 Tit ft! APPUtall Meant to Aid Iran Factions, Reagan Says - By David Hoffman and Walter Pincus Washington Past Staff Writers President Reagan told congres- sional leaders yesterday that the se- cret operation to ship military equipment and spare parts to Iran began as part of a larger effort to4 support some dissident factions70-' ing for power in Tehran, admilfis- tration officials said. In a White House meeting, the president and top administration of- ficials detailed the origins and sub- sequent operation of the controver- sial covert program run by presi- dential aides that led to the release of some U.S. hostages in Lebanon held by pro-Iranian terrorists. The operation has provoked an- gry exchanges within the White House in recent days between chief of staff Donald T. Regan and nation- al security adviser John M. Poindex- ter over how to explain the pres- ident's previously secret actions to Congress and the public, officials said. On Nov. 6, Regan and Poindexter got into a "shouting match" in front of the president in the Oval Office, with Regan demanding that some details be made public and Poindex- ter insisting that all be kept secret, officials said. The president initially sided with Poindexter, they added. Attempting to calm the rising congressional demands for informa- tion about the operation, Reagan met for two hours yesterday with Senate Majority Leader Robert J. Dole (R-Kan.), Minority Leader Robert C. Byrd (D-W.Va.), House Majority Leader James C. Wright Jr. (D-Tex.) and Rep. Dick Cheney (R-Wyo.), fourth-ranking member of the House GOP leadership. Officials said Poindexter told the congressional leaders that arms shipments to Iran, which contra- dicted a longstanding U.S. policy to isolate Iran and remain neutral in the Iran-Iraq wa WASHINGTON POST 13 November 1986 part to help dissident factions that could assume power after the death of Ayatollah Ruhollah Khomeini. Officials said the congressional leaders were told that the negoti- ations for release of the hostages came about as a "byproduct" of the earlier efforts. However, the ad- ministration officials reported that the shipment of weapons to Iran be- came linked to efforts to free the U.S. hostages. [Poindexter told reporters last night that the United States will pursue its controversial dealings with Iran, United Press Internation- al reported. "We are going to con- tinue our policies. We have thought all along that our policy was cor- rect,' he said.' Administration officials acknowl- edged yesterday they are attempt- ing to shift attention from the arms- for-hostages 'aspect of the Iran ne- gotiations to the purported larger goal of establishing links to poten- tial Iranian leaders. This was the thrust of the briefing to congres- sional leaders yesterday. However, Byrd, who has criti- cized the administration as under- mining U.S. credibility with the Iran operation, said after meeting Rea- gan yesterday that "my mind has not been changed." A congressional source who received the Poindexter briefing earlier said the administra- tion is "rewriting history" about the Iran operation. While the Iran operation began as part of a long-running U.S. concern about the future of that strategic nation, officials have said the flow of American military equipment and spare parts to Iran was initiated at the suggestion of Israeli interme- diaries in mid-1985 as a way to win freedom for the U.S. hostages. The first shipments were sent just be- fore the release of the Rev. Benja- min Weir in September 1985. Fur- ther shipments were made in this year, before two more hostages, the Rev. Lawrence M. Jenco and David P. Jacobsen, were released by the Islamic Jihad. In each instance, White House of- ficials had expected more hostages to be released, and on several oc- casions they were disappointed Administration officials said the congressional leaders have been given several justifications for the president's deciding to contravene secretly his publicly stated policy of not- paying ransom for hostages. The United States has labeled Iran an "outlaw" nation that supports terrorism and, led by Secretary of State George P. Shultz, has sought to halt worldwide' flows of arms to Iran. Yesterday, officials said Poindex- ter and others made a distinction between sending weapons to the captors of the American hostages, the Islamic Jihad group that owes its allegience to Khomeini, and aid- ing dissident factions within his gov- ernment. "We're not dealing with the cap- tors," said one official familiar with yesterday's meeting. "We have sin- gled out individuals we think can bring about change. They are not the ones who took the hostages"?a reference to the students who held American diplomats in the U.S. Em- bassy in Tehran in 1979-80. Reagan was ioined yesterday by ice President Bush, Secretary of gfense Caspar W. Weinberger, At- rney General Edwin Meese III, irector jam . ase ? hultz, Regan and Poindexter. Officials said the briefing yester- day was a belated attempt to pro- vide information to congressional leaders after more than a week of criticism that the White House at- tempted to bypass them. Other officials had said last week that the Iran operation was con- ducted by the National Security Council and not the Central Intel- ligence Agency in order to avoid disclosure to congressiong-intelli- gence committees required for CIA operations. Rep. Lee H. Hamilton (D-Ind.), chairman of the House Permanent Select Committee on Intelligence, .annDuncel.yeaterda_thatli1=ei will hold its first hearing on the Iran (lactation Nov. 21. Poindexter promised last week to brief the Sen- ate Select -COiimittee on Rini- gence soon. That panel's vine chair- ki31,17)-`11rni%iewhen_ no wa freed 4N6/01/03s: GIA-RMV00901R000100010001-8 Approved For Release 2006/01/03 : CIA-RDP91-00901R000100010001-8 man, Sen. Patrick J. Leahy, (D-Vt.), yesterday demanded full diseldsure. of the operation and accused the ad- ministration of "scrambling to find a reason for what they did." - Administration officials said the Iran operation has created a large credibility problem for the White House, in part because Reagan de- cided, after it was publicly dis- closed, not to give the nation any explanation for the decision to con- travene his antiterrorism policy. Chief of staff Regan and national security adviser Poindexter sharply differed on whether the president. should give some details of the Iran- ian operation to Congress, officials said. The president at first en- dorsed Poindexter's approach, but was then persuaded to hold yester- day's briefing. Former national se- curity adviser Robert C. McFarJ lane, who started the program and, after leaving the White House, made a secret trip to Tehran in late May, this week reportedly urged the administration to make public the details of the operation. The credibility problem was el.- acerbated by signals from Shultz and Weinberger that they had strongly opposed the arms ship- ments to Iran, officials said. "We have nobody we can send out to ex- plain this," said one official. Another problem is that the ad- ministration is in the midst of con- sidering sanctions against Syria for its role in the attempted bombingof an El Al airliner on a flight from London this year. British Prime Minister Margaret- Thatcher, who broke relations with Syria as a re- stilt, is scheduled to visit Reagan at Camp David on Saturday. The administration also is con- cerned that it faces a severe cred- ibility problem with other allies and a host of moderate Arab nations, which were pressed repeatedly to isolate Iran while the United States was secretly shipping arms to Teh- ran through Israel, sources said. White House spokesman Larry Speakes said yesterday that the ad- ministration is "hopeful" that the hostages remaining in the hands of the Islamic Jihad group will be re- leased soon. Approved For Release 2006/01/03 : CIA-RDP91-00901R000100010001-8 AftrtrawcituRelease 2RION/Orlin :TGI4-RDP91-00901R000100010001-8 ON PAGE 11 November 1986 REAGAN REAFFIRMS SECRECY ON EFFORT TO FREE HOSTAGES By GERALD M. BOYD Special to The New York Times WASHINGTON, Nov. 10 ? President Reagan today affirmed his policy of se- crecy about the Administration's ef- forts to free American hostages in Lebanon, and he rejected Congres- sional demands that he disclose details of dealings with Iran. Trying to counter suggestions of a, sharp split in the Administration, the White House said the actions toward Iran had the support of Secretary of State George P. Shultz and Defense Secretary Caspar W. Weinberger. The White House statement empha- sized that "no U.S. law has been or will be violated" and that "our policy of not making concessions to terrorists re- mains intact." In another development, Mr. Reagan notified Congress that he would extend a 1979 executive order freezing Iranian assets in the United States. The order, which has been extended annually, ex- pired Friday. McFarlane Defends Shift In what appeared to be a further at- tempt to justify contacts with. Iran, Robert C. McFarlane, Mr. Reagan's former national security adviser, said it was of "enormous importance" for the United States "to engender a stab relationship with the Iranian Gove ment." In a four-page statement that did n touch on whether the United States w facilitating arms shipments to Teh ran, Mr. McFarlane said secret dipl macy was crucial in preparing for new relationship with Iran if the lea ership there was ready for it. It was u clear if the statement, which was i serted into a speech by Mr. McFarla today in Atlanta, had been coordinat with the White House. "The United States has vital securi interests in the Middle East that a entirely compatible with the securi interests in Iran," Mr. McFarlane sa d today, 10 days after a Beirut publica- tion reported that he had made a secret trip to Iran. Executive Privilege May Be Cited The developments came 'as White House officials said Mr. Reagan might invoke executive privilege if Congress tried to examine secret contacts with Iran to free the hostages in Lebanon. The officials said the action was one of several that might be taken in the event of a Congressional investigation. It has been reported in the last week that the United States tried to facilitate the shipment of military spare parts to Iran in ,return for assistance in gaining the release of the American captives. White House officials also said today that they were losing hope that an ar- rangement that led to the recent free- ing of one hostage, David P. Jacobsen, might result in the release of others. The White House spokesman, Larry Speakes, said that "our exnectatinne were not met ? our hopes were dashed once again." Without blaming the press directly, Mr. Speakes said there was "no doubt" that press coverage the last week had been a factor in the inability to free other Americans. "It obviously has had its impact, yes," he said, adding that it would be impossible to determine the full effect of the press reports until the hostages were released. Mr. Reagan met today with senior foreign policy and national security ad- visers in what appeared to be an at- tempt to quell suggestions that Mr. Shultz and Mr. Weinberger opposed a policy of trading spare parts for the hostages. "What they decided is that they need a little more time to try to gain the hos- tages' release, and to wait that time until they talk about it," said a senior Administration official. Besides Mr. Shultz and Mr. Weinber- er, those present included Vice Presi- ent Bush; Attorney General Edwin eese 3d; William J. Casey. the Direc- or of Central Intelligence; Donald T. egan, the White House chief of staff; ice Adm. John M. Poindexter, the President's national security adviser, nd Mr. Poindexter's deputy, Alton G. Keel Jr. Aides to Mr. Shultz suggested on Sat- rday that there were deep strains be- ween the Secretary of State and the White House because Mr. Shultz had pposed a covert American mission to Iran and had not been included in dis- cussions abbut it. The aides suggested that he was considering resigning, but department spokesmen called such re- ports speculative. A statement issued by Mr. Speakes on behalf of Mr. Reagan said the meet- ing had been prompted by the concern over the remaining hostages and fear that the "spate" of press reports since Mr. Jacobsen's release had put them at risk. The statement said the officials had also discussed "broad policy concerns In the Middle East and Persian Gulf." "While the specific decisions dis- cussed at, the meeting can not be di- vulged, the President did ask that it be re-emphasized that no U.S. law has been or will be violated and that our policy of not making concessions to ter- rorists remains intact," it said. . "The President made it clear to all that he appreciated their support and efforts to gain the release of all the hos- tages," it went on. "Stressing the fact that the hostages' lives are at stake, the President asked his advisers to in- sure that their departments refrain from making comments or speculating on these matters." The statement, suggesting that Mr. Reagan's top aides were all in agree- inent, said pointedly that "as has been the case in similar meetings with the President and his senior advisers on this matter, there was unanimous sup- port for the President." Possibility of Investigation Som le islators have indicated tha restrictions on covert operations. In sharply worded criticism today, Robert C. Byrd of West Virginia, the Senate Democratic leader, insisted that the White House consult Congress on its dealings with Iran. "It appears to be very amateurish on the part of the Administration and was a v.ery serious mistake," he said of the reported contact with Iran. "The Ad- ministration has seriously damaged its credibility at home and overseas." Approved For Release 2006/01/03 : CIA-RDP91-00901R000100010001-8 vi Approved For Release 2006/01/03 : CIA-RDP91-00901R000100010001-8 1' Approved WASHINGTON POST 24 October 1986 Aide to Bush Opened Doors For Guerrilla War Expert STAT Vice President Got Data on Salvador Rebels By David Hoffman W.1,hington Pt St.,i1 Writer It was a typical meeting of the ype that Vice President Bush often olds in private: a small group, in- olving participants with firsthand nowledge of intelligence and global rouble spots. Bush, the former di- ector of central intelligence, often sks for "raw" intelligence material n a subject, the kind of information e could get from Felix Rodriguez. The meeting was held Jan. 24, 1985, in Bush's office. it included is national security affairs adviser, onald P. Gregg.? Also attending ere t. Col. liver North of the ational Security Council and Rod- riguez. Rodriguez, also known as Max Gomez, is a veteran of the Bay of Pigs invasion and an expert in guer- rilla warfare known for his long and bitter opposition to Cuban leader Fidel Castro. He was in Washington meeting with American military and intelligence officials. Officials famil- iar with his visit said he was dis- cussing ways to help El Salvador repulse a leftist guerrilla insurgen- cy. The meeting grew out of a long _friendship with Gregg that has re- cently figured in a reneed contro- versy over President Reagan's drive to assist the rebels fighting the Sandinista government of Nic- aragua after Congress voted to cut off aid to the rebels, known as con- tras. The crash of a C123K cargo plane in Nicaragua Oct. 5 carrying weapons for the contras has re- opened questions about how deeply and directly the administration was involved in helping the rebels dur- ing that period. - The sole survivor of the crash, Eugene Hasenfus, has said that Rodriguez was directing the supply mission for the Central Intelligence Agency. The administration has denied any involvement in the sup- ply mission. Three others died in the crash. The flight originated at Ilopango air base in El Salvador. Reagan and Bush encouraged such private efforts to aid the con- tras, but the full extent of the ad- ministration's contacts with these operations remains unclear. Bush has said he did not direct or coordinate the effort to aid the con- tras in violation of the law. Other officials have expressed doubt whether Gregg, a low-key but lo- quacious CIA veteran, could have played a central role in helping the rebels. Gregg has been unavailable for comment since the Oct. 5 crash. He is traveling in India and Pakistan as part of a University of California program. Gregg has told associates that he had frequent contact with Rodri- guez, including recent telephone calls. But he has claimed his con- tacts were on the subject of El Sal- vador. Gregg was instrumental in bring- ing Rodriguez to the attention of U.S. officials, the sources said. He set up appointments. in Washington for Rodriguez, including a session with North, who has been the con- tact at the National Security Coun- cil on Central American issues and the contras. Gregg also wrote a let- ter or message of introduction on behalf of Rodriguez to Salvadoran military officials, who wanted the endorsement before using Rodri- guez in planning and carrying out airborne attacks on guerrillas there. Rodriguez "went down there with the blessings of the people he had met with here," said one high-rank- ing administration official. Rodri- guez specialized in "lightning" air- borne assaults on guerrillas, a tech- nique he had used in Vietnam, of- ficials said. The Salvadoran chief of staff, however, has contradicted, state- ments from Bush and his aides, say- ing he knew nothing of Rodriguez's role and had not approved any such participation by an American. The high-ranking administration official speculated that Rodriguez switched his activities from Sal- vador to the contras at some point in the last two yeam "It's the na- ture of these people," the official said. "It would be like sending a campaign operative to Louisiana, and he turns up in Texas." Rodriguez had two other contacts with Bush. He met with the vice president again in Washington last May 6, and on May 20 appeared at a reception in Miami for Bush, who had delivered a speech there og Cuban independence day. Bush has said they did not talk about the con- tras. Those later meetings were held after Rodriguez reportedly began working with the contra supply op- eration, but Bush has told associ- ates that he recalls no discussions with Rodriguez about anything oth- er than El Salvador. Bush recently called Rodriguez a "patriot," and officials said the vice president is not concerned about the questions raised by his contacts with Rodriguez. The officials added that Bush has known Gregg since they served together at the CIA, and the vice president believes it is not necessary to offer any further details about Gregg's activities be- yond the statements he has already made. Bush, considered the front-run- ner for the 1988 Republican pres- idential nomination, has said pri- vately that he expects to reap do- mestic political benefits from the controversy over Rodriguez. Bush said it may help him win over skep- tical conservatives who have long regarded him as a symbol of the establishment and who may play a pivotal role in deciding the nomina- tion. Approved For Release 2006/01/03 : CIA-RDP91-00901R000100010001-8 Approved For Release 2006/01/03 : CIA-RDP91-00901R000100010001-8 However, the contra issue also has a political downside. Pollsters have warned Bush that Americans remain deeply skeptical of the need for further involvement in the Ni- caraguan conflict and that they are motivated by fear of another Viet- nam-like engagement. In the past, Reagan strategists have found that every speech by the president on the issue tends to bring out more vocal opposition than support. Bush got a taste of this recently when protesters showed up at some of his campaign stops, one of them carrying a placard, "Bush World Airways?Gunrunners to the World." The vice president served as di- rector of central intelligence in the final year of the Ford administra- tion, a period during which the agency was going .through a series of congressional investigations. It was there that Bush got to know Gregg, his future national security affairs adviser. Gregg, 58, was graduated from Williams College in 1951, where he was a philosophy major. He then went into the CIA, where he spent much of the next 25 years overseas in Asia. Gregg served in Rangoon, Tokyo and Vietnam in 1970-72, which is where he may have first met Rodriguez. He served as the agency's station chief in South Ko- rea from 1973 to 1976. On his return to the United States, Gregg served as liaison to the House Select Intelligence Com- mittee, chaired by Rep. Otis Pike (D-N.Y.), which was conducting an investigation of the agency. Gregg has said the job was one of the most difficult of his life. Like many CIA officials, Gregg felt that morale at the agency reached a nadir in 1975 with the House and Senate inves- tigations and the assassination of CIA station chief Richard Welch in Athens. When President Carter took of- fice in 1977, Gregg became part of a small "central staff" of the direc- torate of operations, the covert side of the agency, in charge of inform- ing Director Stansfield Turner about activities there. Gregg was detailed to the National Security Council staff in 1979, cordinating intelligence and later as a specialist on Asia. David Aaron, who was deputy national security affairs adviser in the Carter administration, said Gregg was "very insightful and helpful" as liaison between the NSC staff and the CIA. "He had a broad view of policy questions," Aaron recalled. "The problem at the White House isn't that you don't get enough intelligence, it's that you don't get what you want. He was very good" at getting what was needed, Aaron said. Gregg became Bush's national security affairs adviser in 1982, when another former; intelligence official, Daniel Murphy, was the vice president's chief of staff. Gregg, who has a soft-spoken but loquacious manner, is described by, acquaintances as a career intelli- gence official who believes in mod- eration. A former colleague called him "level-headed, nonideologic,al." Gregg has referred to the "lunatic right" in a workshop he teaches at Georgetown University on "Force and Diplomacy." He is known to believe that covert intelligence op- erations are necessary, but only if they are truly covert, unlike the highly publicized U.S. effort to aid the contras. Gregg has been criticized by some colleagues on Bush's staff for what they describe as an insensi- tivity to domestic political consid- erations. For example, they said, Gregg originated the proposal for Bush to visit Syria on a trip to the Mideast last summer, a trip intend- ed to showcase Bush's commitment to Israel. Bush did not go to Syria. Gregg has sometimes criticized U.S. policy towara Israel as too generous, others said, and has lug- gested that moderate Arab nations should receiVe more attention. Several administration policy makers expressed doubt that Gregg would be involved in such a delicate U.S. operation as helping the con- tras. Bush has often taken a person- al role in national security debates in the administration, aides said. This has put Gregg in a secondary The vice president "is always in- terested in direct intelligence infor- mation from around the world," said Craig L. Fuller, his current chief of staff, who added that Bush prefers small meetings and one-on-one ses- sions with visiting diplomats and others. This is how the first session with Rodriguez came about, other offi- cials said. Gregg set up meetings at the State Department, the Defense Department and elsewhere for Rod- riguez and made the vice presi- dent's office the last stop. Staff writer Charles R. Babcock contributed to this report. Approved For Release 2006/01/03 : CIA-RDP91-00901R000100010001-8 STAT STA ARTICLE APEARED Vi1 ase 2006/' /AI ? ?1-00901 cto er ? ush Aides Assess the Contra Speculation STATI NTL R000100010001-8 By GERALD M. BOYD said all there is to say," Mr. Fitzwa- "The implication that the Vice ter said. Mr. Gregg did not return President is directing and coordinat- telephone calls on the subject. ing any kind operation is just not true Mr. Fitzwater said Mr. Bush de- and it's clear to everyone who has cided to meet the allegations head-on looked into it," he said. when they arose after a rebel supply Mr. Fitzwater also said that the plane was downed in Nicaragua two only time Mr. Bush had met with weeks ago and an American survivor, leaders of the contras was when they Eugene Hasenfus, was captured, visited the White House in March as Mr. Hasenfus, who went on trial in part of the Administration's success- Managua this week, asserted that he ful push to secure $100 million in mili- was associated with a man he identi- fied as Max Gomez, who he said was rebels. tary and nonlethal assistance for the an C.I.A. operative who ran supply What has been particularly disturb- shipments to the contras from an air ing, aides to Mr. Bush say, are more base in El Salvador. Mr. Gomez, whose actual name has recent reports that sug- been reported as Felix Rodri uez, is a gest that Jeb Bush Cuban-Americali wno particlpaTe in might have been in- the Bay. of Pigs invasion and worked volved in efforts to sup- for the C.I.A. previously in Latin ply arms to the contras. America and in Vietnam. Govern- That assertion came ment officials have said that he is not last weekend in a CBS currently employed by the agency. News report, which the Bush Terms Him a 'Patriot' younger Bush disputed, Jeb Bush, 33, ac- knowledged In a tele- phone interview that he had participated in a number of programs conducted by Spanish- language radio stations in Miami to raise funds for the rebels. But he said the money gener- ated was for nonlethal assistance. "What I have done is a far cry from being part of a arms supply link to the contras," he said. Although Administra- tion officials outside the Vice President's office have generally left it up to Mr. Bush's staff to fend off the charges, I some have suggested that they are being cir- culated as part of an at- tempt to undermine President Reagan's Central Amer- ican policy. It has also been speculated in the White House that Mr. Bush's own staff leaked suggestions about the Vice President's ties to the contras in hopes of bolstering his standing with the conservative right, which backs the guerrillas. Mr. Fitzwater and other staffers deny such duplicity. A Button: 'Who Is Max Gomez?' Special to The New York Times WASHINGTON, Oct. 21 ? Marlin Fitzwater, Vice Presidentshs' press secretary, still chucklerabout the reporter who recently telephoned the Vice President's office, men- tioned a man's name, then asked if the man worked for George Bush in Central America. Mr. Bush, a former Director of Cen- tral Intelligence, has denied any in- volvement in directing a secret sup- ply network for Nicaragua insur- gents, known as contras. But specula- tion persists and, in Mr. Fitzwater's view, "It's reached a ridiculous level." "Every freelance soldier in the Western Hemisphere says he works for George Bush," he added. In recent days, the speculation has spread to include questions about whether Donald P. Grm,..54r. Bush's national security ad iser, serves as an Administration link to a rebel sup- ply network. There have also been suggestions that Mr. Bush's son Jeb, the chairman of the Republican Party in Dade County, Florida, has He denies running. a supply operation but: wants the rebels supported Mr. Bush entered the picture first when The San Francisco Examiner linked him to Mr. Gomez. The Vice President subsequently acknowl- edged at a news conference in Charleston, S.C., that he knew Mr. Gomez, having met with him several times. He termed him a "patriot." Beyond that, Mr. Fitzwater con- firmed that Mr. Gomez had been recommended for a job as a counter- insurgency specialist in the Salvado- ran. Air Force by Mr. Gregg, who worked at the C.I.A. as an operations officer from 1951 to 1979. Mr. Bush denied "unequivocally" at the Charleston news conference that his office was running an opera- tion to supply the contras and said that the only discussions he had had with Mr. Gomez were on other mat- ters. been active in supplying military Giving Freedom a Chance equipment to the rebels. Aides say the Vice President has "The only discussions I have ever not been damaged by the speculation had with Felix relate to El Salvador," since it underscores the perception Mr. Bush said. "Now, if you want to that Mr. Bush, like others in the Rea- ask am I glad that people are sup- gan Administration, is strongly coin- porting the contras, yes. That's our mitted to the rebels seeking to topple policy, and we feel strongly that free- the Marxist Government in Nicara- dom should have a chance and gua. democracy should have a chance." Mr. Bush added: "For somebody to "It seems to me that a lot of people write as a nameless source that I was on the right are applauding the fact running an Operation in Nicaragua is that he is strongly for the contra just flat untrue. And I'd like to en- movement," said a key Bush associ- courage people to get those nameless ate who asked not to be identified. ? sources out so we could have a But still, some aides seem con- "It's a paradox, we've got people cerned about the impression that Mr. , chance to take a test as to who's tell- saying we put the story out and pee- Bush might somehow be linked to a ing the truth on this matter." ple saying that we are trying to stop secret operation that, if conducted, But Mr. Bush acknowledged that he the story," said another aide to Mr. would be in violation of American ? was in a "Catch-22" situation, be- Bush. law. cause "I want to see support for the Mr. Fitzwater, a former Treasury Since denying that assertion at contras." and White House press spokeman length at a news conference when it , In Mr. Fitzwater's opinion, the alle- who went to work for Mr. Bush last first surfaced, Mr. Bush has declined gations are not damaging to the Vice April, believes that the allegation in- to disucss his role further. "We have President, because he met them by volving the Vice President will in responding "quickly, honestly and on time "play itself out." the record" and because they are And he has opted to ride out any groundless. public storm that arises. In his office Approved For Release 2006/01/03 : CIA-RDP91-00901RO?acyclgooffice Building is a "Who is Max Gomez?" ;TAT STAT I I ApftCrPrTISCIA'PrPtClucise 2006/4045AintE3S0901R00010010001-0 Salavdoran General Contradicts Bush, STATINTL Denies U.S. Civilians Aid War on Rebels By DAN WILLIAMS, Times Staff Writer SAN SALVADOR ?Contradict- ing a statement made by Vice President_g_eors.11_,,E1 Salva- dor's mflief of staff said Monday that no American citizens nor other foreigners except autho- rized American military advisers have been working with the Salva- doran, armed forces in the fight against leftist guerrillas. "No one could hire a civilian as an adviser," said Gen. Adolfo Blan- don, the nation's top military staff officer. "It would have to be autho- rized not only by us (the armed forces) but by the government" of President Jose Napoleon Duarte. Bush said Sunday that a Cuban- American he identified as Felix Gomez was helping "the govern- ment of El Salvador put down. . . a Marxist-led revolution." Gomez's real name is reported to be Rodriguez, and he has also?Wen identified by the name Max Gomez. Air Crew Survivor Last week, Eugene Hasenfus, sole survivor among the crew of a C-123 transport plane shot down by Sandinista troops in neighboring Nicaragua, said that Max Gomez was a CIA employee who directed an undercover operation through El Salvador's Ilopango Military Air Base to supply arms to the contras, the U.S. guerrillas fighting the Sandinistas. Bush's remarks and those of officials here and of Hasenfus raised questions about just what Rodriguez/Gomez?who in the past has worked for the CIA?was doing in El Salvador and for whom. A spokesman for Bush said that Donald Gregg, one of the vice president's aides, recommended Rodriguez to the Salvadoran air force to serve as a military adviser. Publicly, Salvadoran officials de- nied that Rodriguez held any kind of position with the Salvadoran armed forces, but they would say little else. Privately, some Salva- doran military officers said that Rodriguez was part of program that began last spring to help the contras. Contras Tie Told "He (Rodriguez) didn't have anything to do with us (El Salva- dor's armed forces) ," one military officer said. "He was mixed up with the contras." None of the Salvadorans inter- viewed on the subject linked the contras supply operation with the U.S. government, but they pointed out that U.S. military advisers and American Embassy officials have access to Ilopango air base and could hardly have been unaware of the activity. One Salvadoran officer said that Rodriguez was one of "several" Cuban-Americans who worked at Ilopango, arranging flights of arms to the contras. They have operated up to three flights a week from Ilopango since last spring, he add- ed. Another military source said that an unspecified number of Nicara- guan exiles also were involved in the contras supply operations at Ilopango. These Nicaraguans, he said, were once members of the Nicaraguan air force under dictator- Anastasio Somoza, who was over- thrown by the Sandinistas in 1979. The Nicaraguans were wel- comed at Ilopango because they had formed friendships with Salva- doran air force officers before So- moza's fall, the source said. Previously, the source added, the Salvadoran air force had let Nica- raguan rebels commanded by for- mer Sandinista guerrilla leader Eden Pastore use Ilopango as a supply base. That program ended, he said, after CIA aid to Pastora's rebels was cut off in 1984. The Times has reported that Gen. Juan Rafael Bustillo, head of the Salvadoran air force, let the contras supply operation use the Ilopango base. One Salvadoran of- ficer said that an assortment of military irregulars operate routine- ly out of Ilopango. "The people are among a group of free-lancers, some contras, some soldiers of fortune, some arms vendors, whom Bustillo lets work out there," he said. Col. Mauricio Hernandez, spokesman for the Salvadoran armed forces, said, 'I don't know anything about this. But You know how the air force is here. They keep the doors closed tight.' Bustillo could not be reached for comment. Political sensitivities apparently keep the Salvadorans from openly acknowledging their role in any contras supply effort. Officially, the government upholds a policy of not interfering in the affairs of Nicara- gua, separated from El Salvador by the 25-mile-wide Gulf of Fonseca. Unofficially, however, military officials express hostility to the Sandinistas because of their sup- port, including reportedly supply- ing arms, to the Marxist-led guer- rillas fighting the Salvadoran government. "The solution to our problems," said one official, "Is to get rid of the Sandinistas." Approved For Release 2006/01/03 : CIA-RDP91-00901R000100010001-8 Approved For Release 20061111103p:RCIA-Fifilffitalaknefi00100010 3 April 1986 INTELLIGENCE BRIEFING CASEY/BUSH BY NORMAN D. SANDLER WASHINGTON STATINTL Vice President George Bush met with CIA Director William Casey Thursday in final preparation for a high-profile trip to the Persian Gulf given added impetus by concern over terrorism and the politics of oil. TfE_ILtfillgence briefing from Casey and a last-minute review of lo istics by his staff preceded an evening departure for Shannon, Ireland, the first, refuelin sto on a 10-da tri to Saudi Arabia Bahrain Oman and North Yemen. Fron Shannon, Bush was headed for Rhein-Main Air Force Base near Frankfurt, West Germany, for an overnight rest stop before his arrival Saturday in the Saudi capital of Riyadh. The 10-day trip was characterized by administration officials as a mission of good will and reassurance to U.S. friends in the Arab world. However, Bush created somewhat of stir in advance of his departure by indicating Tuesday he would appeal to the Saudis to halt the slide in oil prices that has inflicted economic pain on U.S. producers and his adopted home state of Texas. The White House, in what presidential aides described as a clarification of those remarks, said Wednesday the administration would not interfere in the oil market and contended "the net effect" of the price plunge on the American economy "will be positive." Beyond the controversy stirred by his comments on oil prices, Bush found a more ominous element to his trip highlighted Wednesday by the bomb explosion that killed four Americans aboard a TWA jetliner bound from Rome to Athens. The fresh fears spawned by that bombing and precautions against threats hurled by Libyan leader Moammar khadafy after the military confrontation in the Gulf of Sidra guaranteed security would be tighter than ever as Bush visited a region all-too-familiar with terrorism. "Everyone is aware of the dangers of traveling in that part of the world," said Marlin Fitzwater, chief spokesman for the vice president. "We assume we will see tighter security. Just what steps the host countries will take, we don't know. The measures we do know of we won't divulge." When asked Tuesday whether he had any heightened concern about his own safety because of the Libyan threat to retaliate against Americans in the Middle East, Bush replied, "None whatsoever." During a trip to the southern flank of NATO last week, Secretary of State George Shultz received fighter escorts on flights from Ankara to Athens and Athens to Rome. It was not known whether similar precautions would be in effect for Bush. 3ontiaimd Approved For Release 2006/01/03 : CIA-RDP91-00901R000100010001-8 Appr9ye4 Fo.r.palexbse 2006/01/03 : CIA-RDP91-00901R000100010001 ON PA3E, USA TODAY 6 March 1986 -8 STATINTL Terror panel stresses spies, intelligence By Johanna Neuman USA TODAY Spies ? not satellites ? can help the USA thwart terrorism, the president's anti-terrorism commission reports today. The commission, headed by Vice President George Bush, also wants the USA to consider making it illegal for companies operating in hostile countries to give "protection money" to groups friendly with terrorists. The 36-page report, to be presented at the White House, also suggests: 'Reducing the number of U.S. employees in "high- threat" countries. II Stopping abuse of the Freedom of Information Act ? which allows terrorists ac- cess to government records. ? Exchanging more intelli- gence with allies. "Using "human resources" rather than high-tech methods of Ratherinst intelligence. The reKrt is sure to swirls, controversy in the intelligenee commm urgingW; "'Agents from various agen- cies gather under one roof. IN The National Security Council hire a full-time adviser Terror targets Where the 812 terrorist attacks were in 1985: Latin America Asia 5.7% Africa 5.1% North America and Eastern Europe 0.7% Source: U.S. State Department USA TODAY and staff to monitor terrorism. ? The Senate Intelligence Committee, which gets secret brieffrigs, merge with Its House counterpart, which does not. The report finds that the ex- isting "capacity for combating terrorism is satisfactory," but implementing the recommen- dations "can make it better." Approved For Release 2006/01/03 : CIA-RDP91-00901R000100010001-8 STAT STAT ASSOCIATED PRESS Approved For Release 200g3140914M-140091-0 WASHINGTON TURNS UP HEAT ON MARCOS By R. GREGORY NOKES WASHINGTON The drum-beat of revelations in the United States aimed at discreditin gSTATINTL President Marcos in advance of the Feb. 7 election in the Philippines underscores how anxious Washington is to see him replaced. In the past two weeks, there have been major stories alleging Marcos is in extremely poor health, that his claims to heroism during World War II are largely fraudulent and that he and his wife have salted away many millions of dollars in the United States. 901R000100010001-8 They have came against a background of repeated official warnings from the administration that the election must be fair, which is another way of saying the administration thinks Marcos will steal the election if he could. "If the White House had asked Bill Casey a year ago to devise a plan to get Marcos, he couldn't have done better than this," said a Pentagon analyst, referring to the director of the Central Intelligence Agency. Officially, the administration is neutral in the campaign between Marcos and Corazon Aquino, the opposition candidate. But interviews with officials who spoke on condition they not be identified disclose a virtually unanimous view that the Marcos government is rife with corruption and incapable of undertaking the political, military and economic reforms necessary to defeat a growing communist-led insurgency. At stake for the administration, in addition to keeping the Philippines in the pro-West camp, are the largest U.S. military bases overseas _ Subic Bay and Clark Field. Some of the information aimed at discrediting Marcos comes from the many enemies Marcos has made in his 20 years of rule, especially in the large exile community in the United States, some of whom have fled for their lives. But some of it also has originated from official sources. Rep. Stephen J. Solarz, D-N.Y., has been holding hearings before his House subcommittee on Asian and Pacific Affairs on alleged U.S. investments of the Marcos family. Whatever the origins of the information, the administration has made no effort to contradict or discourage the reports. The State Department declined public comment on reports of Marcos' ill health, while privately confirming them, and officials said they wouldn't "second-guess" Army documents suggesting Marcos has falsified his war record. With respect to evidence before the Solar z committee that Imelda Marcos, the president's wife, might own Manhattan real estate worth an estimated $350 million., Paul Wolfowitz, the assistant secretary of state, said the government doesn't keep track of such investments by foreigners because they would not be illegal. But the State Department later revealed it had routinely and not-so-routinely investigated whether the Marcos government might have misappropriated U.S. foreign aid funds. Approved For Release 2006/01/03 : CIA-RDP91-00901R000100010001-8 Cant STAT Approved For Release 2006/01/03 : CIA-RDP91-00901R000100010001-8 Spokesman Bernard Kalb said that while no evidence of wrongdoing had turned up.so far, the investigation was not yet complete. Reporters were reminded, too, that the Justice Department has been probing possible contract kickbacks involving the Philippine military for the past year. [-----}Relations hadn't always been this bad between Marcos and the Reagan dministration. Vice President George Bush praised Philippine democracy during a isit to Manila several years ago, and Marcos was warmly received at the White House. Reagan had even planned to visit the Philippines in 1983, but the trip was quickly cancelled after Philippine opposition leader Benigno Aquino was murdered on his return from American exile in 1983. Most officials see the murder of Aquino, husband of Corazon Aquino, as the watershed event that has turned the administration against Marcos. Marcos still could win, and the administration is prepared to deal with him if he does. It is sending an official team of observers to view the election. Washington knows, as Marcos does, that the United States could not afford to abandon the Philippines to the communists just because Marcos were to win a flawed election. It is with the communist threat in mind, as well as the wish to support democracy, that the administration is pressing for a fair election. U.S. pressures have worked to some degree, according to a State Department analyst who said Friday. "It is looking more and more like it will be a moderately fair election." He said "the kicker" is whether an independent vote-monitoring group known as Namfrel will be able to conduct its own count of the vote on election day, to provide a back-up to the government count. Marcos still hasn't approved, but Secretary of State George P. Shultz is understood to have pressed Assistant Foreign Minister Pacifico Castro in a meeting here last week. The message, of course, is that the administration does not trust the Marcos government to produce a fair count. Another example of the U.S. pressure was the statement last week by Wolfowitz to the Senate Foreign Relations Committee that a flawed election would be worse than no election, and would open the way to new communist inroads as people turned to "radical solutions" to achieve the changes they could not achieve at the polls. Left unsaid by Wolfowitz and other officials is the widely held private view of many of them that the fairer the election, the better the chance Mrs. Aquino would win. EDITOR'S NOTE: R. Gregory Nokes writes on diplomatic affairs for The Associated Press and has been focusing lately on the Philippines election. Approved For Release 2006/01/03 : CIA-RDP91-00901R000100010001-8 STAT STAT ARTICLE Ai' " ED ONANA. elease 20061ANIATgliKAM1-00901R000100010001-8 USA flexes muscle at Libya By Don Kirk USA TODAY USA warplanes have mount- ed a new challenge to Libyan leader Muammar, !Chad* ? and the Soviet missiles now poised on Libya's coast. Navy planes took off at 7 , p.m. EST Thursday from two carriers north of Libya to launch the USA's week-long ? ? show of force in defiance of So- viet and Libyan three& The White House, Pentagon and State Department called the operation "just routine," but it marked another escala- don in the USA's campaign to curb Soviet-backed Libya and stop terrorism. "We're showing the ILS. re- solve to continue to operate in International water or air space no matter who may be iste,e:Tildinglavy spokesman Lt. and shouting about Crndr. Robert Pnicha That remark was aimed at Ithadafy's claim to control all the Gulf of Sidra beyond the 12- mile limit recognized by the USA. Navy F-14 Tomcats shot down two Libyan planes over the gulf In 1981. "Nothing provocative about this," White House spokesman Ed Dierejlan said. "NVe have no Intention of thumbing our noses at Kbadaty.? IlEILly:trrisunat, wiLeY 7r7 aaainst Klutdatv. - -..rding to publOod re..rts ? "We got 1, number," Vice President George Bush said about Khadafy in a New York speech Thursday. "We know he's a liar ... with the blood of an 11-year-old girl on his hands, a pretty little American girl" killed in a recent terror at- tack at the Rome airport The Pentagon has notified Mediterranean countries that Navy planes plan to criscroas the area until Jan. 31. FAA spokesman John Ley- den said the operation did not endanger civilian planea Approved For Release 2006/01/03 : CIA-RDP91-00901R000100010001-8 ARTICLE._AEP IOWeu lease Artrt/iiiill:K3 T ttiASRDP91-00901R000100010001-8 13 December 1985 IN TIHE NATION Tom Wicker An American Dilemma George Shultz told a London audience the other day that Western nations should use whatever means necessary, including covert military aid, to support anti- Communist forces in such places as Angola, Afghanistan, Cambodia and Nicaragua. But conspicuously miss- ing from the Secretary of State's list was the Philippines. Owing to important military bases there, vital U.S. interests are more certainly at stake in the Philippines than any of the other places Mr. Shultz mentioned. It was only four years ago, moreover, that Vice Presi- dent George Bush journeyed to the Philippines to offer in an effusive inaugural toast the Reagan Adminis- tration's commitment to President Ferdinand Marcos. "We love your adherence to demo- cratic principles and to the demo- cratic process," Mr. Bush gushed. But no one doubts that Mr. Mar- cos's "pro-American" Government is now under severe challenge from ? a Communist insurgency ? so much so that President Reagan recently dis- patched his close friend, Senator Paul Laxalt, to Manila to warn Mr. Marcos that he was losing the battle, mili- tarily and politically. So why wasn't the Philippines on Mr. Shultz's list? Because, it's reasonable to specu- late, the Communist insurgency is not the only or even necessarily the most immediate of Mr. Marcos's prob- lems; and because it can't be clear, even to the Reagan Administration, that backing him to the hilt is neces- sarily the best bet to stop a Commu- nist takeover. Accumulating charges of repres- sion and corruption, and the assassi- nation of a major political rival, Benign() Aquino, have shaken Mr. Marcos's hold on power and his stand- ing among non-Communist Filipinos; now Gen. Fabian Ver and other mili- tary men whose responsibility for the killing had been strongly suggested by an investigating commission have been cleared by one of Mr. Marcos's courts, prompting complaint even from Washington. Mr. Marcos has been forced to call a special election for Feb. 7 ? al- though it's by no means sure that he aims to go through with it or to abide by the results, if unfavorable to him. He'll be opposed by Corazon Aquino, Benigno's widow, a powerful emo- tional symbol to anti-Marcos Fili- pinos, and her running mate, Salva- dor Laurel, the leader of a well-organ- ized opposition party ? a strong ticket in a clean election, democrati- the U.S. bases in the Philippines highly important; and although it's not clear to what extent, if any, the self-labeled Communist insurgents are linked to Moscow, preservation of the bases un- doubtedly requires preservation of a pro-U.S. government. If Mrs. Aquino could win, that might bring new life to a democratic tradition most Americans would like to think their earlier stewardship ef- fectively planted in the Philippines; and even conservatives might agree that that would offer more hope of ef- fective resistance to the Comniunist insurgency than a continuation of Mr. Marcos's repressive, corrupt regime. U.S. military and other aid almost surely would be more generously proffered by a Congress long suspi- cious of the Marcos Government's Why isn't the Philippines on Shultz's list of forces fighting Reds? will and ability to clean itself up and put down the rebellion. On the other hand, the corrupt, strong-arm Marcos regime, long the recipient of undeviating U.S. support, might survive the February election by fair means or foul, only to crumble under the Communists' growing strength. Even if it didn't, Mr. Mar- cos hardly offers Filipinos the kind of democratic future Mr. Shultz extolled for Angolans, Afghans, Nicaraguans, etc. On the other hand, any suggestion of U.S. support for Mrs. Aquino cer- tainly would be denounced by the agile and vitriolic Mr. Marcos as unacceptable Yankee intervention in Philippine affairs; and might even give him an excuse to call off the elec- tion and return the nation to martial law. W,hat effect any of that might have on the military bases is hard to estimate. Mr. Shultz's case for intervention- ism is by no means proved;, whether, for instance, "covert" aid for the An- golan rebels improves or worsens the American position in southern Africa remains to be seen. And the complex case of the Philippines suggests again cally oriented and pro-U.S. that mere anti-Communism is not al- Here is a. gen Americargai ? y.s+lik-f .a Lic:mut-bsedon APPIle~ifiE *booirtutauia-Amv)tftiq 1 0 0 0 1-8 Approved For Release 2006/01/03 : CIA-RDP91 WASHINGTON POST 1 December 1985 Joseph Kraft Bush: Out Front and at Ease -00901R000100010001-8 "I know what I have to do to get from here to there," Vice President George Bush told a visitor the other day. That comment on his campaign to win the Republican nomination in 1988 reflects a man easy in his skin. So easy, indeed, as to raise doubt about the gnawing passion usually re- quired to win the presidency. Inner calm radiates from Bush. He has lost the anguished look. His voice holds steady, without the flights into the tenor range that once telegraphed stress. He doesn't quickly take of- fense. He volunteers that on a day God made for playing tennis, he tries to lighten the workload. He seems, if you'll pardon the expression, happy. Hewing loyally to the Reagan line is, of course, the Main thing Bush has to do these days. He does it with good grace and no sense of being burdened with a thankless task. He declines in- vitations to take sides in the inner wars of the administration on arms control. Of the controversial Strate- gic Defense Initiative, or Star Wars program, he says only: "I'm confident it won't disrupt Big Two relations." On abortion, Bush says he changed from free choice on learning there had been 15 million abortions since the Su- preme Court gave the operation legal sanction. Asked whether he thought 15 million Americans committed crimes, Bush said the number was less when abortion was illegal. On budget matters he admits a ma- jority in Congress probably favors a tax rise. But he prefers not to go that way "until the last nickel can be squeezed out on the spending side." When asked about a revenue rise dedi- cated to debt retirement and thus not eligible for application to spending pro- grams, he says: "It's something I want to think about." On one_y_t_. _ced_piece of business, where experinRe does go out front. He served as direc- tor of ai?itra worries akuljeaks. He thinks the breach of secrec on the CIA idan for harassing Muammar MUT Libyan blowhard, had a "devastating' impact. He says there has been too rant? ? , much loose talk in Congress,at the itself,CIA and in the White House. As a partial remedy Bush favors folding the separate Senate and House oversight committees into a Joint Committee on Intelligence. That way the staff would be drastically reduced. Instead of rotating on and off the com- mittees as at present, members of the joint committee would serve long enough to acquire genuine expertise. In another sensitive area, Bush may break new ground. He chairs ..a task force looking into international terror- ism. Among other things Bush envis- ages a session with newspaper and television executives. He intends to sound them out on the possibilities for a self-imposed code of restraint on coverage of terrorist acts. But his staff makes certain there is no hint of advo- cating censorship?a little touch of front-runneritis. Bush knows he leads the pack in the Republican race. When asked whether lie wasn't especially strong in the West, he responded: "And in the East, and the South, and the North." The midterm elections, moreover, provide an occasion to lengthen the lead. The vice president plans an active cam- paign for fellow Republicans in the Senate, House and gubernatorial races. He is not about to undo his ad- vantage by taking controversial stands or alienating other Republicans. As rivals for the nomination he lists Jack Kemp, the New York congress- man; Bob Dole, the Senate majority leader; Howard Baker, the former ma- jority leader; and Pete DuPont, the former governor of Delaware. He sees as outsiders, trying to get started, for- mer secretary of state Alexander Haig, and former secretary of defense Donald Rumsfeld. Toward all, he follows what Presi- dent Reagan has called the 11th Com- mandment: Thou shalt not speak evil of any other Republican. Those who foresee an eventual Bush-Kemp ticket can take comfort from the vice presi- dent's stance. Of Kemp's campaign, he says: "I can't think of anything he's said that's personally derogatory." Even right-wing support, which he STATINTL used to seek with a frenzy some found demeaning, no longer troubles Bush. He feels he stands well with many of what are known in the Republican Party as "the wingers." A striking case is the support the vice president enjoys from the evangelist Jerry Falwell. Of the others the vice president says: "There are some I can't do anything about." That almost fatalistic attitude raises the matter of the gnawing passions. People don't become president by chance. They. have to want the job in- tensely. They think about nothing else, night and day, in season and out, for years. Bush is not that way, at least not now. "If I decide to go all out for the job ." he began, at one point. Eyebrows were raised and a question put about whether the conditional approach didn't reflect a want of appetite. Bush had an answer. Many people, he said, felt that when it came to running for 1988, it was "still too early." But if you really and truly want to be presi- dent, isit ever too early? .c,1985, Los Angeles Times Syndicate Approved For Release 2006/01/03 : CIA-RDP91-00901R000100010001-8 ARTA ON"P INTERNATIONAL r Release 2006/01/03 : CIA-RDP91-009 NEWSWEEK 4 November 1985 STATINTL 01 R000100010001 -8 The Philippines: Another IranP Fearing disaster, Washington attempts to move An old and ailing dictator, a regime stained and weakened by corrup- tion, a nation boiling toward revolt ?the scenario conjures up Ameri- can nightmares of Vietnam, Nicaragua and Iran. But this time it's playing out in the Philippines. As President Ferdinand Mar- cos prepares to celebrate his 20th year in power, the all-but-unanimous view of old admirers and neigh- bors is that he is now hellbent for disaster. locked on a course that will endanger the vital strategic and political interests of his allies throughout all of Asia. While the b8-year-old autocrat retreats to Malacariang Palace, the econo- my falters, demonstrators crowd the streets and communist insur- gents of the once inconsequen- tial New People's Army ply the countryside: If Marcos fails to provide reforms and a capable successor, most strategists now agree, the Philippines could tum- ble into a military dictatorship or a communist takeover within the next five years. As fornier U.S. Ambassador William Sullivan puts it, the fate of America's old ward, partner and Asian alter ego has suddenly become "the most dangerous, unsettling and desta- bilizing problem anywhere on the Pacific rim." Immediately at stake is the fu- ture of the two largest American military installations outside the continental United States. Sit- ting at the southwest edge of the Pacific Ocean, Clark Air Base and the Subic Bay Naval Station are ideally situated for projecting American. strength into the South China Sea and the vital sea lanes that channel oil from the Persian Gulf to Japan. They also provide an effective counterweight to the rapid Soviet naval buildup at Cam Ranh Bay in Vietnam. The loss of the bases could alter the balance of power in the Pacific, jeopardize billions of dollars of American trade, shake the conti- even loosen their ties to the West. If the United States were forced out of the Philip- pines, says Rear Adm. Lewis Chatham, commander of the U.S. Seventh Fleet battle force, it would be tantamount to "abdicating the South China Sea to the Soviets." As the urgency has mounted, a steady stream of administration officials and con- Marcos toward reform. up to replacing him. Invariably, he has re- jected the criticism, insisting that the prob- lems have been exaggerated. It's not that Marcos isn't listening, says a Western ana- lyst in Manila. "It's just that the problems don't appear serious enough for him to re- juggle his priorities." Those priorities seem to include protect- ing an interlocking matrix of family and cronies who have prospered over the past 20 years. at times achieving great wealth at the nation's expense. Beyond that matrix, life in the Philippines is becoming ever more grim. Manila's shantytown ghettos are rife with strikes and demonstra- tions. According to the latest U.S. intelligence estimates, some 15,000 armed guerrillas are oper- ating in up to 62 of the nation's 73 provinces?and their ranks are growing at a rate of 20 percent a year. Last week Lt. Gen. Fidel Ramos, the acting armed forces chief of staff. estimated that the rebellion had cost 4.500 lives this year. Meanwhile elements with- in the military continue to abuse the civ ilian population, and death squads are increasingly terrorizing the villages and towns. Vast pockets of the countryside have fallen into grinding poverty. On the island of Negros, where many unem- ployed migrant workers subsist 1, on a diet that consists largely 2 or sugar cane, Roman Catholic Bishop Antonio Fort ich sees "a social volcano about to explode." American strategists insist that the Philippines is not yet lost?but Marcos must act immediately to prevent his country from falling apart. There seems lit- tle likelihood that the NPA is poised to march on Manila or even to take control of the major outlying islands. The more proxi- mate fear is that the N PA's political arm. the 1 million-strong National Democratic Front, may foment so much civil unrest that dence of China an124:r;aardTadF6olqUieawc1216641/Orriy03:petAl_mises9rstiblooti Rod tpi gotplootiiiagi will no longer be atlicL, ARIPPE The First Couple: .-In intricate web of loyalties and intrigues gressmen have converged on Malacafiang Palace, cajoling, wheedling and pressuring for democratic change. The result, says one veteran, has been "like spitting into the wind." Marcos has listened as his American visitors have warned of the gathering strength of the NPA guerrillas, the growing disaffection of the Army officer corps, the crumbling of the islands* economy and the Approved For Release 2006/01/03 : CIA-RDP91-00901R000100010001-8 to maintain control. Some officials warn '. that a "flash point" might come as early as next year, Thus the challenge is to prod Marcos into action: the immediate problem is to persuade him to allow free and fair balloting in the election of 15,000 municipal and provincial officials scheduled for next spring. In that way, U.S. strategists hope, political passions can be channeled into tra- ditional campaigning. If the moderate oppo- sition has a genuine chance in the 1987 presidential election, the insurgency could lose a good deal of steam. But can Marcos really be prodded? He has always been a brilliant political tacti- cian; now he has become a master of eva- sion; his main response to criticism has been to threaten, filibuster and delay. Washington recognizes that it has no one else with whom to deal. "While President Marcos at this stage is part of the problem, he is also necessarily part of the solution," says a draft of a National Security Study Document setting forth the basic U.S. poli- cy on the Philippines. The directive sug- gests that Washington adopt "a well-or- chestrated policy of incentives and disin- centives"?offering aid only if Marcos meets certain well-calibrated measures of reform. The difficulty with that approach, says one political analyst, is that "Marcos just keeps eating the carrots and no one dares hit him with the stick." Ultimately, officials fear, Marcos may conclude that Washington needs him and his bases more than Marcos needs the United States. Previous U.S. policy may well have con- tributed to that perception. Four successive U.S. administrations sat quietly by after 1972, when Marcos declared martial law and began restructuring the Philippine Constitution to accommodate his personal rule. His regime muzzled the press, packed the courts with loyalists and, according to human-rights activists, detained 60,000 moderate opponents. Simultaneously, his cronies filled government posts and gained monopolies in key commodities such as sug- ar and coconuts. When Marcos lifted mar- tial law in 1981, the government had been transformed. The president retained wide- ranging powers of decree that allowed him o overrule?or even dissolve?the Parlia- Fent. Yet, in visiting the Philippines that ame year, U.S. Vice President George Bush lavished praise on the autocrat who ad undone decades of democratic tutelage under the United States. "We stand with you, Sir," the vice president said. "We love your adherence to democratic principles and to the democratic process." If that view sorted badly with new reali- ties, Bush wasn't alone in his mistake. By the summer of 1983, only a few political and intelligence officers in the U.S. Embas- sy in Manila perceived the dangers that are now swirling around Malacafiang. Ronald Reagan, an emissary of Richard Nixon in 1969, deeply admired Marcos's anticom- munism. U.S. Ambassador Michael Arma- cost, a Reagan appointee, initially was so friendly with the Marcoses that some Filipi- nos called him "Armaclose." Then, on Aug. 21, 1983, opposition leader Benigno Aqui- no, the only Filipino charismatic enough to compete with Marcos mano a mono, was gunned down at the Manila airport as he returned from exile in the United States. Aquino had been intent on talking Marcos, who appears to be suffering from a degener- ative disease, into a dying man's commit- ment to restore democracy to the Philip- pines. Although no one proved Marcos was behind the assassination, just about every- one suspected him or his followers. In early 1984, Adm. William Crowe, then com- mander in chief of the U.S. forces in the Pacific and now chairman of the Joint Chiefs of Staff, returned from Manila with a warning for the president and secretary of state; Marcos's political position was crum- bling, he reported, and the insurgency was rapidly gaining ground. Reagan's response has been to send Mar- cos a string of messengers?including for- mer U.N. Ambassador Jeane Kirkpatrick; her successor Vernon Walters, a retired general and intelligence operative; William Casey, director of the CIA, and Sen. Paul Laxalt, Reagan's close friend and campaign chairman. White House aides report, how- ever, that the president remained "soft" on Marcos. It took a strong pitch from key foreign-policy advisers, in particular Arma- cost?now under secretary of state?to per- suade Reagan to step up the pressure. The pressure was strongly reinforced in early October when Singapore Prime Minister Lee Kuan Yew told Reagan that if the Unit- ed States lost its former colony and old ally, countries throughout Southeast Asia would draw their own conclusions. Lee's views were powerfully held: he later told a private gathering that Marcos was "using on bor- rowed kidneys" and stopped just short of saying that the United States should take covert action to remove him. It was Lee's warning that finally prompt- ed the president to send Laxalt. his strongest emissary to date. When he arrived in Manila two weeks ago. Laxalt bore a three-page, handwritten letter from Reagan. According to Laxalt, Marcos seemed "profoundly im- pressed." Nonetheless, the only specific that the two men could agree upon in four hours of conversation was that Marcos should hire a new public-relations firm to beef up his image in the United States. Marcos gave Laxalt the impression that he wassupremely confident of military victory over the insur- gents. While acknowledging that he had his share of political problems. Marcos cited a recent poll that showed he was still far more popular than any potential candidate from the Philippines' fractured opposition. And when Laxalt raised the issue of human- rights violations. Marcos responded that all of his problems were caused by external forces and communists. There is little question that Marcos in- tends to hang on. The president insists that there are no worthy successors in sight: he says the opposition is full of "weak- lings" and "lightweights," while possible contenders from his own party are not yet ready for ;he job. "Are we just going to leave our people to the mercies of the fellow travel- ersand thecommunists?" Marcos asks. "Be- cause if I resign, that's a rout." The statement was worthy of Louis XIV, but American officials concede that Marcos has a point. The succession threatens to open a Pandora's box of contending parties. fac- tions and cabals, especially if Marcos dies or becomes incapacitated before the end of his present term. It took considerable American pressure in [983 to compel Marcos to revise the vice presidency in the post-martial-law Constitution?under the current schedule, a vice 'president will not be elected until the mid-1987 elections. As things stand now. Marcos would be succeeded by Nicatior Yffiguez, the aging speaker of the National Assembly, who would serve as a caretaker until elections could be held within 70 days. But if the National Assembly isn't in session at the time. there isn't even a speaker to serve as interim successor. Washington's problem now is to sort out the players in a succession battle that has already begun. The democratic opposition is scrambling to get its act together while the Communist Party continues to organize the countryside. U.S. officials maintain, howev- er, that the immediate successor is more likely to come from Marcos's inner circle? and that no candidate will be able to come to power without support from the Philippine military, American officials believe there could hardly be a worse choice than the front runner, First Lady Imelda Marcos. Marcos has always been strongly dependent on his former-beauty-queen wife. Just before de- claring martial law he suggested that she campaign to become his constitutionally elected successor. In 1975 he named her governor of Metro Manila, the capital re- gion whose S million residents are crucial to the political control of the country. Three years later she led the government's Manila ticket against Benigno Aquino, who ran his campaign from jail. Although opposition leaders contended that Aquino was ahead when the polls closed, the government-con- trolled counting produced a landslide vie to- Approved For Release 2006/01/03 : CIA-RDP91-00901R000100010001-8 ry for Imelda. liAppfraued)Fapp&Pict? wife to become minister of human settle- ments, with control over a hefty budget. She has also served as a presidential envoy to Libya. to China, repeatedly to Moscow and last week to the United Nations. U.S. officials complain that Mrs. Mar- cos seems genuinely unaware of how deep- ly disliked she is by millions of what she has called her "little brown children." Critics despise her political intrigues, her economic giddiness and her opulent shop- ping trips abroad. Still, Mrs. Marcos will be able to count on the intricate web of loyalties that she and her husband have built up over the years. And she is cultivat- ing military officers, such as Army com- mander Maj. Gen. Josephus Ramas and armed forces Chief of Staff Fabian Ver, who is on leave of absence following his - indictment in connection with the Aquino assassination. American officials worry that her association with Ver could lead to further instability in the Philippines. Washington is also wary of Eduardo Co- juangco, chairman of San Miguel, the Phil- ippines' largest corporation. While other business allies of Marcos have suffered from the country's two-year-old economic crisis, Cojuangco's empire continues to grow. Just a few weeks ago the United States talked Marcos out of permitting Cojuangco a mo- nopoly on the nation's wheat imports. Up to now Cojuangco has preferred to shun pub- licity. But, claims opposition leader Salva- dor Laurel, "If he had to become president to protect his interests, then he might try." There is no question the United States would prefer theemergenceofacentnst figure. One is Defense Minister Juan Ponce Enrile, who has already declared him- self a presidential candidate if Marcos is not around to run. While Enrile helped plan the 1972 martial-law takeover, he has distanced himself from Mrs. Marcos and Ver. Instead he has associated himself with a growing re- formist faction that aims to move the mili- tary from the right wing to the political cen- ter. Enrile and Acting Chief of Staff Ramos appear committed to defending the Consti- tution if Marcos resigns ordies in office. That might mean a showdown if factions of the ruling clique attempt to forestall an election. But if a constitutional crisisdoes emerge, En- rile and other centrists could probably count on the backing of the United States. An electoral victory by the moderate Fili- pino opposition might please Washington even more. For now, the opposition seems hopelessly divided. But American officials are still hopeful that anti-Marcos sentiment seam/gaga iiiplAnkipg.x,Rimg0000rasi Ogiatiaened it by appointing boy- didate, and they have made discreet over- tures to several potential leaders. Chief among them is former Senator Lau- rel, president of an eight-party coalition called the United Democratic Organiza- tion. Last June UNIDO issued a platform calling fora referendum on the U.S. military bases and demanding that no nuclear weap- ons be stored there. But Laurel supports the bases, and predicts that Filipinos would agree to keep them if a vote were held today. Meanwhile, an emotional favorite is Cora- zon Aquino, the widow of the charismatic opposition leader. But Mrs. Aquino has lit- tle political experience and is reluctant to become a contender. Last week she agreed that she might run for president, but only if Marcos called a snap election?and then only if 1 million people signed a petition drafting her to run. The United Statescould try toencouragea deal between Marcos and his opponents? and protect U.S. strategic interests as well. Under one scenario, envisioned by Richard Holbrooke, former assistant secretary of state for East Asian affairs under Jimmy Carter, Marcos would be permitted to serve out his term, preserve his wealth and be im- mune from future prosecution, probably in exile in the United States. In exchange, he would have to agree to electoral reforms and announce that neither he nor his wife would run for the presidency. In return for Wash- ington's role in easing Marcos out, the oppo- sition would have to agree to retain the U.S. bases. The deal would be immensely difficult to engineer: Holbrooke gives the plan a 1-in- 4 chance ofsuccess, and that may beoptimis- tic. But officials stress that the best chance for American interests in thePhilippinesis to have Marcos gracefully step down. Without such an arrangement, Washing- ton can only press more vigorously for re- form. Among its chief concerns is the state of the Philippine military. To signal its displeasure, Congress recently cut its 1986 military aid to Manila from $100 million to $70 million. Marcos may provoke an even stronger reaction if he follows through on his promise to reinstate General Ver when, as expected, he is acquitted of complicity in Aquino's murder. "It would be the end of things," says retired Maj. Gen. Edward G. Lansdale, once a key CIA operative in Ma- nila, who believes that such a decision would badly tarnish the honor of the Philip- pine government. "The political demon- strations they have been going through would multiply a hundred times, and there would be demands that Marcos should step down immediately." Equally pressing is the need for econom- ic and political reforms. Rather than loos- ening his hold on the electoral process. alists to the notoriously partisan Commis- sion on Elections, which disaccredited a citizen's group whose watchdog activities during the 1984 legislative elections dis- couraged widespread cheating. Mean- while, Washington is pressing for the elimination of Marcos's peculiar brand of "crony capitalism" that fosters monopo- lies and breeds corruption in nearly every phase of Philippine economic life. To date, Marcos has paid the U.S. warn- ings remarkably little heed. But the Philip- pines is onecountry where the United States still has enormous influence, and Ronald Reagan has one very powerful card to play: himself. To an extent, Marcos's legitimacy has always rested on American support. It would be hard for him to reject public pres- sure from Reagan to step aside. So far the president has only sent messengers. It might make a difference if he decided to do the job himself. But American officials must also face the possibility that Marcos might de- cide to call any bluff. For now, the waning dictator seems curi- ously passive about the future of the Philip- pines. According to one intimate acquaint- ance, "Marcos has suggested that the day of the two-party system and personality poli- tics may be past. When he goes, only the military will be strong enough to handle the left." And at times, Marcos is even gloomi- er, speaking of a "Cambodia-style geno- cide" should the NPA ever come to power. But when that happens, Marcos expects to be dead. Marcos is far tougher t han the shah and Somoza before him; and like them, he hopes to stick it out to the end. If he leaves it for others to worry about the deluge that promises to ensue, his dereliction will en- danger not only the U.S. bases that secure Western interests in the region, but the American legacy of democracy to a long- time ally and friend. HARRY \ NDERSON with MELINDA LIU mid RICHARD VOKEY in Manila. LOHA SMARD/.. KIM WITLENSON. JOHN WALCO MORTON M KONDRACKE in Wa,liingion and bureau rcp.na. MARCOS'S 20 YEARS Once Asia's democratic showcase, could Manila become another Saigon? 1995 Ferdinand Marcos wins the presidency. Lyndon Johnson soon calls him "my strong right arm in Asia." 1912 Barred from a third term, Mar- cos declares martial law. 1981 With new laws making him paramount, Marcos ends emergency rule and wins reelection. 198$ Opposition leader Benigno Aquino is murdered. Suspicion fails on Marcos's close friend Gen. Fabian Ver. 198445 Ronald Reagan repeat- edly sends emissaries with an urgent warning: reform. Time is running out. Approved For Release 2006/01/03 : CIA-RDP91-00901R00U1 00010001-IS When Jonathan Bush was 7 years old in 1938, he thrilled with pride to see his baseball player brother, George, 14 ? known to all as "Poppy" ? marching around the dining room table with his chums from Phillips Academy in Andover, Mass., singing the school song. In World War II in the Pacific theater, George Was an 18-year-old flying officer in the Navy, the youngest fighter pilot in the fleet. He was lanky, blue- eyed and dashing. He took chances, bombed and strafed Japanese targets, got shot down at sea and luckily was saved by a U.S. subma- rine. He also reveled in something almost all Bush family members prize: a good time. At home in the rambling wooden house in Greenwich, Conn., Jonathan, then 11, was overjoyed by George's occa- sional letter from the war. "I still see him ? if I can get real corny but truthful ? as a hero," said Jonathan, now a 54-year-old investment broker, of George Herbert Walker Bush, 61, now the vice president of the United States. When Lt. j.g. Bush returned from the Pacific at Christmas 1944, he married an 18-year-old knockout from Rye, N.Y., named Barbara Pierce. Her father was the publisher of McCall's magazine. Jonathan Bush recalls her as "peculiarly beautiful, with great big eyes and gorgeous hair." Moreover, Jonathan realized, "She was wild about him. And for George, if anyone wants to be wild about him, it's fine with him." Tbday, four decades later, George Bush, the second son of Prescott Bush of Greenwich, Conn., and Dorothy Walker of St. Louis, intends to find out how many Americans may be even mildly wild about him. If Mr. Bush becomes president of the United States, either by succes- sion or by popular election, the American people will have a chief STAT I NT L ARTICLE/. Approved For Release 2006/01/03 : CIA-RDP91-00901 ON PAGE._ WASHINGTON TIZTS 28 October 1985 'Poppy,' hero of the family, takes aim at '88 First offour parts By Barnard L. Collier THE WASHINGTON TIMES GEORGE BUSH AN INSIDE LOOK R000100010001-8 executive officer who sought the job with a barely concealed passion, and who believes he can do it better than anybody on the national scene. Mr. Bush is aware that in a na- tional election in 1988, provided he wraps up the Republican nomina- tion, he must beat big historical odds: No vice president has become president by election, unless he has earlier succeeded to the Oval Office because of the president's death, in the last 37 presidential election cam- paigns, the last one being Martin Van Buren. He must also limit the number of his doubters and detractors, who in- terpret Mr. Bush's ambition ? which he tends to emphasize by his zeal in underplaying it ? as unseemly and perhaps dangerous in an American political leader. Some of the accusations against Mr. Bush by sharpshooters on the Republican right puzzle him and his admirers. In addition to the venial sins of ambition and naivet?he is commonly charged with the mortal sins of being a "wimp," an elitist, too easily influenced by moderate opin- ions, too trusting of the communists and their ilk, a preppie, a "good No. 2 man," a blue blood and a man who is "on the Right, but not of the Right." From his political left, the barbs are more snide. The snidest have come from cartoonist Garry lbu- deau in his "Doonesbury" strip. One episode suggested that by faithfully representing and promoting the policies and philosophies of Pres- ident lieagan he had, willingly, "put his manhood in trust." But George Bush, it is often said by his loved ones, kinfolk and friends, "knows who and what he is." Moreover, he resists and refuses to be repackaged in ways political mar- keters predict will be more palatable to a larger public. One thing Mr. Bush surely is: He is a man who carefully is planning to be the next president. Before a large luncheon audience recently in Los Angeles, he re- sponded to a point-blank question from the floor about his presidential future by saying: "I'll try to give you a serious non-answer." What he answered, with a confi- dential grin, was: "I know what is beating in my breast. And if you ask Mrs. Bush, she does, too." The listeners laughed, and his po- etic message sank in. For now, Mr. Bush's personal re- spect for Ronald Reagan will keep him working as diligently and unob- trusively as possible in the back- ground. He will neither contradict nor question the president nor his policies in front of anyone but Mr. Reagan himself ? they meet for half an hour at 9 each morning. He rarely will take credit for missions he has accomplished or international deals he has cut. But then, after the 1986 congres- sional elections, he intends to come right out and shout what early-bird campaign buttons are already say- ing: "Bush for President!" The question of what makes George Bush run is a significant one. President Lyndon Johnson useirto say, "If you want to know what moves a man, find out what his father failed at." In a recent interview, Mr. Bush recalled his father. "Yes, he did fail once. In 1950, he failed to be elected to the United States Senate from Connecticut. We [his family] never looked at it that way. But he set his sights to win. You fail in a match if you lose it. If it's important enough you do feel fail- ure. If it's 'one more experience in life,' you don't." Mr. Bush is widely known in and out of political circles as a tenacious competitor. He recalls that in the past he was "goal oriented," which translated into unbridled energy and raw ,determination to get where he was going and to grasp what he wanted. After the Navy, he zipped through Yale, making Phi Beta Kappa, in just 21/2 years. He tore into the world of business with a similar ferocity. "But now, as I get older," he said, "I have become mellower. Just ask any of my brothers. They'll agree to that." He has reluctantly begun to re- veal more of himself and his per- sonal life to some reporters. He hopes this will serve to satisfy public curiousity, although it violates a per- sonal tenet, taught by his mother, "not to speak too much of one's self." There are signs, too, that he is watching Ronald Reagan's consum- mate communication methods with studious attention, and learning something about speech making that will be politically profitable to him. 'lb some lengths, however, he will not go. Take his watchband, for example. He wears a Timex watch with a blue and red striped cloth watch- band on his right wrist. Approved For Release 2006/01/03 : CIA-RDP91-00901R000100010001-8 Would Approved For Release 2006/01/03 : CIA-RDP91-00901R000100010001-8 He has been urged by diverse po- litical consultants, pals, well- meaning journalists and unsolicited letters to change his watchband ? which seems to be a universally accepted "preppie" fashion mark. A different watch might project a dif- ferent and better image, the thinking goes. "I won't do it," he says, with a cer- tain stubbornness. Alixe Reed Glen, the producer of Cable News Network's "Crossfire" and until last July a valued member of the Bush press staff, said what Mr. Bush will not say in such blunt terms: "What the hell does his watch- band have to do with national secu- rity?" When the bits and pieces of his life and work so far are accumulated, Mr. Bush comes into focus as a he- reditary American achiever. He is descended from an ancestry of hard-working, hard-playing, well- off business and financial pioneers of New England and the Middle West. The traditions of his family run strong in him. There was much stress laid on the values of loyalty to family, friends, one's country and oneself. And on honor: one's word is one's bond. Good gamesmanship: winning. Good sportmanship: how to be a graceful second. Diligence. self-reliance. Respect. Courage. The precepts were passed along in open-ended family dinner table conversations and instilled in pri- vate talks with parents, grandparents and relatives. There also were historic family examples, such as: ? Samuel Prescott Bush, Mr. Bush's father's father, who graduated as an engineer from Ste- vens Institute in New Jersey, worked for the Pennsylvania Railroad, ven- tured out to Columbus, Ohio, to be- come chairman and chief executive officer of the Buckeye Casting Co., introduced football to Ohio and was the first football coach at Ohio State University. ? George Herbert Walker, his mother's father; founded G.H. Walker & Co., by 1900 the largest brokerage firm in St. Louis. Active in building a railroad between the United Sates and Mexico, a "crackerjack" polo player, bridge player, golfer, president of the U.S. Golfers Association in 1921, respon- sible for The Walker Cup matches, which are still played. He was a top- notch shotgunner, remembered by his grandchildren as stern, and "a wonderful story teller." ? Prescott Bush, his father, sang at Yale with the Wiffenpoofs and the Yale Glee Club, later formed the Sil- ver Dollar Barbershop Quartet which occasionally sang with Fred Waring's orchestra. In 1921, he went to work for the securities firm of WH. Harriman, where he eventually became a managing partner. He was greatly interested in golf ? winning several matches against the best of the day ? and was president of the USGA in 1935. He left the U.S. Sen- ate in 1962, forced .to retire with in- ner ear troubles. ? Dorothy Walker Bush, his mother, who at 84 remains a force to reckon with in the lives of her chil- dren. A young national tennis fina- list, always a fierce competitor, she is now slowing physically. Not long ago she observed that at her age, "I'm beginning to learn what pa- tience is all about." She has remained alertly active well into her children's most produc- tive years. "Mum," as Mr. Bush calls her, had her own instructional style. "My mother's was a little like an Army drill sergeant's," Mr. Bush wrote for Mother's Day 1985. "Dad was the commanding general, make no mistake about that, but mother was the one who was out there day in and day out, shaping up the troops." He also recalled: "Nine months into her first preg- nancy she played baseball. The last time up she hit a home run, and with- out missing a base ? I'm told ? con- tinued right off the field to the hos- pital to deliver [her first child] Pres... "She loved games and thought that competition taught courage, fair play and ? I think most.impor- tantly ? teamwork. She taught games to us endlessly... "She also tamed our arrogance. I'll never forget, years ago, saying rather innocently, I thought, 'I was off my game: Mother jumped all over me. 'You are just learning? you don't have a game!' The result: arro- gance f4ctor down; determination to get 'a game; up.. Mr. Bush's father was a tall (6-foot-4) man who is variously re- called as "imposing:' "austere," "re- served," "stern" and "no-nonsense." Pres Bush, his son, recalls him as a man with "a fabulous sense of hu- mor. And he was a terrible tease. George became one, too." It is not easy to get a sample of George Bush teasing for the record. But Jonathan Bush recalled how George, as a teen-ager, would walk out of his bedroom in the morning and tell his little brother, Bucky, "You've done such-and-such, and I'm not going to talk to you for 24 hours." Only the power of maternal inter- vention could get George to ex- change even a civil "Good morning." On the tennis court, Mr. Bush is known, said his daughter, Dorothy, 26, as "very catty" and "sort of ob- noxious." He is notorious as well for the sharpest needle in the federal government. He plays only doubles now, and although he claims considerable prowess in all of the tennis skills ? even the right-handed serve ? he is even better known for finding pre- cisely the right thing to say to un- nerve his opponents. "He wins a lot of games be should never have won by doing what he does;' said Jonathan, his brother. Mr. Bush's children still play ten- nis with him. They enjoy the sport of it and are humorously loyal in not divulging too much about his game. All agree, however, that a book called "How to Serve," which recently ap- peared on his desk in the West Wing of the White House, might be worth his while. The Bushes have five children. They lost one, Robin, to leukemia, when she was 3. The children all know and admire their parents and their heritage, and the comfort and responsibilities it brings them. The children are: ? George Walker Bush, 39, of Mid- land, Texas. Yale class of '68; Air Force-trained pilot in Texas Air Na- tional Guard; master's degree in business administration from Har- vard; runs Spectrum 7 Energy Corp. which explores for oil and gas in the Permian Basin of West Texas. Ran for Congress against Kent Hance in 1978 and lost. "A survivor," he says. "The trick for raising money is to learn confidence in yourself as a person. You have to have that con- fidence, one, to ask for the money. And once you raise it, you must have confidence you will treat the person Cebutd Approved For Release 2006/01/03 : CIA-RDP91-00901R000100010001-8 02- Approved For Release 2006/01/03 : CIA-RDP91-00901R000100010001-8 honestly and wisely. It's a very big responsibility?' He and his wife, Laura, have twin girls, Barbara Pierce and Jenna Welch, soon to be 4. ? John Ellis "Jeb" Bush, 32, born in Midland, lives in Miami i Now in- volved with real estate development. Majored in Latin American studies at the University of lbxas; went to Leon, Mexico, on a transfer program helping build a schoolhouse and met his wife, Columba, who still retains her Mexican citizenship. "I fell in love right off the bat," he said. Mar- ried at age 21, now have three chil- dren: George, 9; Noelle, 8; Jeb, will be 2 in December. Worked as assis- tant to the chairman of Texas Com- merce Bank, then went to Venezuela when the oil economy was booming. "The bank is probably trying to col- lect on all the loans I made;' he said. He left Venezuela in 1979 to help in his dad's presidential campaign. ? Neil Mallon Bush, 30, partner with an experienced geologist in- volved in oil exploration and wildcat drilling. Some wells are in Wy- oming's Powder River Basin. 'Mane graduate with master's degree in business administration. Lives in Denver. "Our business is full of risk. For example, we caused 18 wells to be drilled in the first two years of our business, and two produced. But we make ends meet." Married to Sharon, daughter Lauren, 16 months. ? Marvin Pierce Bush, 28, a vice president of Shearson Lehman Bros. brokerage. Graduate of University of Virginia, where he met his wife, Margaret Moister. No children. "We do work in a partnership within Shearson with tax exempt funds and corporate retirement plans." Lives in Alexandria, Va. ? Dorothy Bush LeBlond, travel agent and caterer. Recently moved to Maine with her husband, Billy, who is in the construction business. One infant, Sam. Attended Mrs. Por- ter's School, Boston College and Bos- ton University Mr. Bush often says that his most prideful boast is that he has five chil- dren who lived through the 1960s and still love their mother and father. Barbara Bush rarely reveals in public how many of the child- rearing chores were carried on her' shoulders and what a grueling job it sometimes was. As Jonathan Bush, her brother-in- law, saw it: "Barbara took almost all the heat from the kids. They would sort of worship him and do battle with their mother. They never had to mix it up with him ? they used to take it out on Bar" "Bar" as Mrs. Bush is called by family and close friends, is at 59 still a splendid figure, with a crown of silver-gray hair, a rich Ethel Barry- more voice, perspicacious blue- green eyes, and enough strength and determination to pull a loaded hay wagon if it were required of her. She, too, is a clever and practiced tease. She carries her needlepoint al- most everywhere she goes, because she is accustomed to the politician's life of what she describes in military terms as "hurry up and wait." She has spent so much time in holding rooms and on airplanes that she has needlepointed living room- sized rugs, with animals and flowers, while waiting to hurry up. Mrs. Bush feels duty-bound to keep her body in athletic shape and she will spend long, tedious minutes each day in the sweaty grip of ex- ercise. "At home;' she explained, "I play tennis at 7 a.m. and get up every morning and put on a video and do stretching, toning and aerobics. If I'm very good I do it for an hour and a half, but if I'm not, for about 45 minutes." All this exertion, which to her seems eternally slow and boring, is done to compensate for a combined blessing and curse. "The truth is:' she admitted, "I like official meals. I eat better than any human being I've ever known. I was built for the job. I have no prob- lem coping, but do I have a weight problem? Yes. I was born over- weight." Mrs. Bush, her daughter "Doro" pointed out, is a world-class organ- izer and archivist. "Mom is the most organized per- son you'd ever meet:' she said. "You wouldn't believe the amount of projects she has going. She has huge scrapbooks, four feet tall, at least. About 30 of them. She's beenkeeping them their whole lives. She'll get a menu from a dinner at the White House. It's glued in within minutes after she gets back home. "My mother is very practical. I feel I can ask her about practical things more. As for temper, my mother has more. My father has al- most none. When he gets mad, you know it's serious. Mother is more emotional." Mr. Bush's brothers and sister are, in Pres Bush's words, "proud that George has the honor ? and the bur- dens ? of being vice president." "This is a close and diverse fam- ily" he added. "George being pres- ident won't affect our way of life. We have been under scrutiny as a family when father was in the Senate. Everybody is used to it. And mostly it's no problem at all. It's something you take in stride:' The Bush siblings include Pres- cott Bush, 63, Yale graduate, now runs Prescott Bush Co. Inc., in Man- hattan. Another brother, Jonathan Bush, 54, Yale graduate, inherited a strong dose of the family's thespian streak, gave countless perfor- mances as the good cowboy in Rich- ard Rogers and Oscar Hammer- stein's musical "Oklahoma!" He runs Jonathan Bush & Co., an invest- ment management business. Then there are William Henry Bush, 47, president of Boatman's Bank of St. Louis, Mo.; and Nancy Bush Ellis. Last April, at Camp David, Mr. Bush presided over a weekend meet- ing of almost everyone in his family. The object was to have a good time and to meet the new Bush staff, newly led by chief of staff Craig Fuller, who had replaced Adm. Dan- iel Murphy, now an executive with the public relations firm of Gray & Co. "That get-together" said George Bush, the son, "is a typical George Bush move. Here we are, scattered all over. And things are changing. So in order to make sure the sons, daughter, wives, brothers and sister know what's going on with the for- mation of his PAC, and that no one feels shut out." For his part, Mr. Fuller was pleased and surprised at his intro- duction to the Bush family. He said: "When I came up here I had no idea there was such a reservoir of talent as this family has. I didn't know you knew so much about the [political] game." Ibmorrow: Bush the businessman Approved For Release 2006/01/03 : CIA-RDP91-00901R000100010001-8 3 ARTICLE An'EA%0 Approved For Release 2006/01/03 : CIA-RDP91-00901R000100010001-8 ON PAGE 7_2...tn WASHINGTON TIMES 28 October 1985 Bush committee set for White House bid By Bill. Kling THE WASHINGTON TIIIAES With a list resembling a Repub- lican Who's Who, Vice President George Bush tomorrow is scheduled to announce his official political action committee, Fund for America's Future,Pwhich will drive his presidential candidacy in 1988. The committee, with 450 mem- bers representing all 50 states, lists four former Republican na- tional Chairmen, many present and former members of the Republi- can National Committee, and a number of GOP elected officials past and current. . Membership on the committee, which will support and help fi- nance Republican candidates and party organizations in next year's federal, state and local elections, does not necessarily imply en- dorsement of Mr. Bush for the 1988 GOP presidential nomination, Ron- ald Kaufman, the PAC executive director, said. The committee's seven national co-chairmen are Anne Armstrong of Texas, the Ford administration's U.S. ambassador to Great Britain; Constance "Connie" Armitage An- tonson of South Carolina, former chairman of the National Feder- ation of Republican Women; An- gela "Bay" Buchanan Jackson of California, former U.S. treasurer and sister of Patrick Buchanan, a top White House staffer in the Nixon and Reagan administra- tions; Barber Conable, retired New York GOP congressman now senior fellow at the American En- terprise Institute; Ed Rollins, President's Reagan's 1984 re- election campaign director until recently White House political di- rector, and Republican Govs. Arch Moore of West Virginia and James Thompson of Illinois. Approved For Release 2006/01/03 : CIA-RDP91-00901R000100010001-8 Approved For Release 2006/01/03 : CIA-RDP91-00901R000100010001-8 'ON PA'GE 'NO WASHINGTON TIMES 29 October 1985 The Texas Years The economic foundations of a political life 3y Barnard L. Collier Second of four parts IE WASHINGTON TIMES What kind of businessman was George Bush in .exas? Unlike Harry S Truman, he did not go bankrupt. Nonetheless, the spectre of going broke did at , imes creep into Mr. Bush's mind. Those were the tld days, in the early 1960s, when seeking don- ttitutional legal protection from creditors was, in zertaiti clreles, considered dishonorable. And the :hought of not Meeting his regular payroll of 500 ecame a recurring nightmare. Mr. Bush eventually suffered severely bleeding ulcers, the worried businessman's disease. His business career began in (948 when he was 25 years old. After a quick baby, a quick trip through Yale, a Phi Beta Kappa key and the cap- tainship of the Yale baseball team, Mr. Bush was ready to learn the rough and risky game of oil wildcatting. His move west was to the town of Odessa, Texas, which Barbara Bush's mother thought was some- where in old Russia. She sent her daughter CARE packages of Ivory Soap. Mr. Bush learned how to abstract land leases tnd sell oil royalties. In training with Dresser Industries, a diversified oil field conglomerate, he earned how to find out what kind of legal title here was to property a company might want to 3uy, and if the guy who was trying to sell it ac- .ually owned it. Then, he and his small family moved to Califor- nia. They lived, Mrs. Bush recalled in a recent interview, "in Whittier; Compton, where Robin itheir first daughter] was born; Bakersfield; Ven- tura; and someplace else." She saich "I do not iernember it as a happiest time." After a year, the family went back to Texas and settled in Midland; located east of Odessa, half way between Forth Worth and El Paso. Mrs. Bush loved lbxas, which she recalled as "a place where nobody cared who either of our fathers were:' Jeb Bush, who was born in Midland, has vague memories of the place as "weird, like horny toads and tumble weeds." "We lived," he added, "in a nice, comfortable house, with a backyard, a big park. It would rain once or twice. ... . "There were real nice people, real friendly. There were about 20,000 people. and the rugged environment in which they lived." Midland was a town George Bush, and people who called the Bushes friends, all helped to build. Mr. Bush taught &friday school and was an elder in the First Presbyterian Church. He was on the board of directors of the Midland Community The,ater and a director of' the Coinmercial Bank GE ORGE BUSH AN INSIDE LOOK a backwater into a city, and they en? - joyed it thoroughly. C. Fred Chambers, born in Dallas,' graduate of Woodberry Forest! School in Virginia and the Univer- sity of Texas, Navy pilot, and now a well-to-do oilman who retired in. 1979, got to Midland in a different way than did Mr. Bush, with whom he later became friendly. After the war, Mr. Chambers bor-i rowed $2,500 on his G.I. Bill loan, rights and began the Home Bever- age Delivery Co. in Dallas. He and a partner worked 18 hours a day and drove trucks themselves, yet barely were able to pay the other drivers. His wife's 44-year-old father, who, had retired from the oil business' after a heart attack, told him: "If you work half as hard in the oil business as you do in the delivery business, you'll make 10 times the money!' Mr. Chambers forthwith moved to Midland. He found the place filled with smart, qualified, well-educated, am- bitious, hard-working folks ? like the Liedtke brothers, Hugh and Bill; John Ashman and Tbby Hilliard, both Princeton graduates; Bill Ken- nedy; George Bush; and an adven- turous bunch of other hope-filled risk takers. Mrs. Bush has affectionate memo- ries of Midland: "We just loved it! When we left 11 years later ? that's' where our little. girldied ? I would wake up in the morning and sense something awful ?and it was not being in Midland. "We all grew up together there. The friends we made we made in Midland, Texas ? the friends we made were the closest we'll ever have." Mr. Chambers also remembers: "At first, George was working for Dresser buying oil leases. Then he and Hugh Liedtke, whose father was - general counsel in Thlsa for Gulf Oil, ' got together. , "We were a young group. We all played touch football together. We did what you do when you weren't out in the oil fields. Everybody got pretty close. We were all trying to do the same thing. We were not compet- ing in a cut-throat sort of way. , "George and I had some deals to- gether. George had real good con- nections. We went to New York. We wentto Washington. In this period of time; oil was pro-rated for 10 days at $2.75 a barrel and gas was 19 cents." Baine Perkins Kerr, a former president and now a director of Pennzoil, also recalled Mn Bush. In a recent interview he said: "I met him ? I just happened to look it up in my diary from back when I was practicing law and had to account for all my time ? on Jan. 4, 1955. "I was doing law in Houston with the firm Baker Botts." A case came up involving a company called Zapata Offshore, which was wholly owned-by Zapata Petroleum, which was George Bush; Hugh Liedtke; and a man named John Overby, a former employee of Standard of Texas ? all from Midland. "They were just getting started in business;' Mr. Kerr said. "I went to Midland to find out the background of the Offshore part, looking from the viewpoint of an underwriter. I knew none of them before. But out of that ultimately grew a relation- ship. "I was 36 years old, a new partner in a law firm, a couple of years older than Hugh, and three or four years older than George. "His appearance was tall, slender, very youthful then. He's remained in pretty good shape. "He always had a quick mind, and he's very thoughtfult "George was not%the Harvard Business School sort of business- man. He was pretty informal, as he is. He was a hands-on man. He nego- tiated deals. He had a style a little _ - and Trust Co. The Bushes and thAignientiadiFnierl Release 2006/01/03 : CIA-RDP91-00901R000100010001-8 t.'"1112611 ? different from many I e seen. M tb AEP people called him by _P ciNa . ? He knew everybody like he knew his family, up and down. ' "In the end he did fine, but he could have sold out for a lot more a year or two later. He didn't get all that much, but people always made money with him. "They lived very modestly. Their house was in what we called Easter Egg Row. These were wooden houses painted up in bright colors. They were not afflicted with great wealth. "They were part of a group, some more financed than others, from 'bus, Oklahoma and the East, like George. Mainly, we were all inter- ' eated in finding oil and gas:' Zapata Petroleum was capitalized with $1 million, half from the Liedt- kes, whose roots were in Tulsa, Okla., and the rest from Bush connections in the East. The company was suc- cessful doing some creative financ- ing for the time. It also found oil on ? a rather superficially explored tract called Jameson Field, in Coke County near the settlement of Silver. The discoverlt produced 130 to 140 wells that are still pumping today. The 7 cent-a-share Zapata stock increased more than 300 times. iri value to $23 by the time the 125th well came in: Mr. Bush has described the Jame- son Field this way: . "It was a major thing for us, not for big oil people, but for us it was a major development. Coke County was 'make or break' for us. It was considered by some to be marginal production in those days, but for us it was very, very, very important be- cause it was really the beginning of the growth of Zapata. "It enabled us to go into the off- shore business. It enabled us to do many other things, and subse- quently rit enabled the Liedtkes to have a vehicle that is now Pennzoil, if you want to look at it that way." And moreover, he said, "I suppose, if you wanted to make it really ro-' mantic, you could say that without the Jameson Field, I wouldn't be vice-president of the United States:' But on a truly personal level, he said: "That was the genesis, really. That was the first major success the oil company had, and you might say it enabled me to go on to do what I did in business, and subsequently that permitted me to educate my chil- dren and feel that I could forego fur- ther economic enhancement and go into politics?' In the early 1950s, a man named Laterno invented the Laterno 3- Legged Jackup, an offshore drilling rig that Mr. Bush has described as "big as the Empire State Building Approved 2 r Relea&VM1/tiVIACKDP91-00901R000tenciflintlathange in personal It was floated out to an offshore site, sunk beneath the water and then ratcheted up above the sea on its three legs to become a drilling platform. When its usefulness in that spot was over, it could be ratcheted back down, refloated and moved somewhere else. Mr, Bush saw big money in the Late= idea and wanted to take Zapata Petroleum into it. His partner, Hugh Liedtke, who had a law degree from University of Texas and a master's degree from Harvard Business School, had no de- sire to get his feet wet offshore when the land drilling business looked pretty good to him. That is ' why Zapata Offshore was formed in 1954,', with Mr. Bush in command. In 1959,: Zapata Offshore's offices, and the, Bushes, moved to Houston. Mr. Bush's uncle, Herbert Walker, was very proud and hopeful for his nephew. He helped raise public and Private money for Mr. Bush's ven- tures, and he helped with most of the financing for Zapata Offshore. "Uncle Herbert" recalled Jona- than Bush, the vice-president's next younger brother, "always expected to make a pot of gold in George's company. He did not make a fortune in George's company." The new Zapata rigs were oddly named "Scorpion," an insect that stings you, and "Vinegaroon," also an stinging insect A hurricane came to test Mr. Bush's mettle. One of his rigs was swallowed by the Gulf of Mexico. Mr. Bush had prudently removed its crew the night before the blow. When he took a small plane to look for the rig after the storm had passed, he recalls nearly rupturing his eyeballs in a vain effort to find even a floating trace. Business pressures made life so worrisome to Mr. Bush that Fred Chambers heard how one evening in London, "George had an ulcer at- tack" and coughed up blood. Mr. Chambers said: "George is a good businessman. He likes to be successful. He was doing a job he liked to do. But the thrill of politics he likes better. He likes it better, so he works harder and better at it." Mr. Chambers drew a personal comparison. "I am an oil man. I'm in a risky business. I tell people who invest with me that probably the first thing will happen to you is you'll lose your money. But eventually, you stick with it, you get somewhere.... "George," he remarked gently" took it all very much to heart...?' Mr. Bush later told people: "I cant worry about things I have no control over. Once I accepted that, my ulcers went awa" For Release 2006/01/03 : y CIA-RDP91-00901R000100010001-8 philosophy, it also required some surgical intervention to cure the ul- cers. And there was psychological advice from his physician which provoked a rage from Barbara Bush. She recalled: "He came home with this booklet from the doctor, and it said: "'If your wife's family bothers you, tell them to knock it off: "'If your wife nags you, tell her to knock it off: "I was furious! The whole blame wailm me. "George answered every call. There was no call for help George Bush did not answer. He went to AA meetings with people. ... I felt ? selfishly, probably ? that he spent too much time on other people ... that there I was, with five children. "I had to learn to live with George Bush. He has not changed, but there was a certain period when he took on everybody's worries. He care a so much:' In a recent interview, Mr. Bush himself said: "It was a tense time the company was going through. It was a survival industry I thought at the time it [the Laterno 3-Legged Jackup] would have enormous potential. It did. "My only problem was I sold out just before the boom really started. I sold everything I had in it in 1966:' He sold to a group of investors led by Doyle Mize and including a wealthy close personal friend named Will Farish. Six months and two days later, the stock price of Zapata Offshore dou- bled. ibmorrow: Bush's political future ik,7,7-,1A1-proupd For Release 2006/01/03 : CIA-RDP91-00901R000100010001-8 FkLIc WASHINGTON TIMES 30 October 1985 Pushing Bush for president Third ?flour parts By Barnard L. Collier THE WASHINGTON TIMES APh.D. candidate in political Science, Lee Atwater, 34, is in charge of the politics: of making George Bush; the next president of the United, States. Mr. Atwater is a sinewy, 150- pound South Carolinian, a "yuppie: baby boomer" he calls himself. I He has been in Republican poli- tics since he was a teen-ager in Co- lumbia, S.C., and he remembers. when the Republican National Com- mittee was prepared to disband the similar committees on college GE ORGE BUSH AN INSIDE LOOK campuses, and Mr. Bush, as party chairman, personally saved them from assimilation and extinction. Mr. Atwater is now a partner in the political consulting firm of Black, Manafort, Stone and Atwater, of Alexandria, Va. The firm claims as friends Mr. Bush, Sen. Robert Dole, Kansas Republican, and Rep. Jack Kemp, New York Republican, among others: Mr. Atwater denies vehemently the firm is hedging its political bets. He insists each partner maintains strict confidentiality for his candi- date. Mr. Atwater also believes Mr. Bush, who is his personal client, will become the next occupant of the Oval Office. In fact, Mr. Atwater is not alone among Republicans in that convic- tion. A recent poll by Paul Weyrich, a man of awesome reputation for realism on the New Rth: t, indicated Mr. Bush in 1988 could expect the vote of eight out of every 10 people who voted in the 1984 election for Ronald Reagan. "That's a good poll," commented Mr. Atwater, "because it cuts against the grain:' The grain in this case is the predi- lection on the right wing of the Re- publican Party to prefer somebody other than Mr. Bush ? someone with more respect for New Right posi- tions, less doubt about its political power. There is no doubt where Mr. Bush stands on the question of New Right power. Last year at the Republican National Convention in Dallas, he re- ferred to the New Right with an old Texas description: "All hat and no cattle." This endeared him not to New Righters. Mr. Atwater, who also worked for Sen. Strom Thurmond, South Caro- lina Repulican, regards himself as conservative as any baby boomer can get. He sees nothing at all in Mr. Bush's political career that is tainted with a smear of liberality in the eco- nomic realm. Technically, Mr. Atwater is volun- teering his professional services to the Fund for America's Future, a po- litical action committee which is the vice president's political arm. This PAC may, under certain inter- pretations of the election laws, be transformed quickly into a legal Bush-for-President committee, when the time comes. It has raised more than $2 million in just five months, and is touted by Mr. Atwater as one of the "eight or nine fastest growing and best endowed PACs in the country" This suggests Mr. Bush is at- tracting early money. Nonetheless, doubts linger about the certainty of? Mr. Bush's nomination for the presidency. Several quiet questions float around his campaign: ? Will Mr. Reagan complete his term or will he step down for reasons of health, probably at Nancy Rea- gan'Kurging, and turn the job over to "the JV?" ? the junior varsity, as Mr. Bush describes himself. ? When will he step down, if he does? This question raises many constitutional questions. Among them: If Mr. Bush should get the job before the November 1986 elections, will he be eligible to serve only one more term, or two? ? It Mr. Reagan finishes, will he be turning over a robust economy or a failing one? In the first case, Mr. Bush will have an easier time of it. In the latter, perhaps a successful and audacious businessman, like Chrysler Corp.'s Lee Iacocca, could whip him ? if Mr. Iacocca chooses to run as 'a Democrat. ? Will Barbara Bush be an asset or a liability? She is so candid with her likes and dislikes, so assertive in saying so if she feels like it, that she might too often be too clearly under- stood. Her what-rhymes-with- "rich?" incident involving Geraldine Ferraro is not entirely forgotten. Mr. Atwater and Mr. Bush met twice shortly after the 1984 election victory to discuss, at great length and depth, Mr. Bush's political op- tions. As Mr. Atwater described these in a recent interview, there were two obvious ones, and an unmentioned one: ? Not to run. Rejected. ? lb run, beginning immediately, in what Mr. Atwater proudly calls, "The Permanent Campaign," which will also be the title of his Ph.D. dis- sertation. ? lb agree to run for vice pres- ident again. Not discussed. Mr. Atwater plans to turn his dis- sertation into alms* which will say, in essence, Americitn politics has de- veloped a presidential election cam- paign that begins before the polls close on Election Day and runs on until the next Election Day. For him, and for Mr. Bush, "Elec- tion Year 1988" is nearly a year un- der way, and work is going on at a furious pace to be sure that Mr. Bush exhibits well at variotts political "cattle shows:' and that the vice president dominates the Michigan party caucuses coming up next Au- gust. "Here's what always used to hap- pen. Campaigning ended in Novem- ber. Everybody's sick of politics, and it's over until after Christmas," Mr. Atwater said. "You have the with- drawal, and then everybody has a kind of 'flashback' in January and February. It goes hot and heavy for a while, and then it tapers back off for a year or so. "When the January and February period was on this year, we all said, 'This'll die back down again; and it just never did. "So we didn't realize until last summer that it just didn't end. "Michigan now starts selecting delegates for the national convention next August. That means you actu- ally got the delegate selection begin- ning in less than a year after the election..." After the Michigan cancuses, Mr. Atwater predicted, will cdme politi- cal activity that he calls, "The Invisi- ble Primary." He regards this several months of straw polls and more cattle shows as Wmtid Approved For Release 2006/01/03 : CIA-RDP91-00901R000100010001-8 very significant in the OffsOved For Release 2006/01/03 A,sc)g-Fiti':e91-009 "It starts;' he said, "June of next year. It's been in the past a winnow- Mg out period. John Glenn got wiped out in that period and never even made it. Once the primaries started he never became a credible ctuidi: date, because he'd already been wiped out in" ? a pause ,for silent fanfare ? " 'The Invisible Primary' We now have a 'pre-invisible primary ... We have the cattle shows and jockeying around inside the 'echo chambers.' You got two big echo chambers in American politics. One's the political community, and one's the media community ... And my prediction is that that's going to wipe a few, people out." This dissertation he will one day defend before a panel of academics at thd University of South Carolina. But htwill try it out first, in reality in the wit for President campaign. - MMAtwater's firm is one of those, moderti "legalitical" firms in which aris beesw ence gets Ii phone, atic trappings of brass and ed dark mahogany confer- les mix with high-tech gad- a neon yellow plastic ear- die _that blasts dirty blues into te4 Atwatert brain. Mr. At- water himself is a practiced guitar player and played with Percy, ("Who* M Man Loves a Woman") Sledge. The firm's business is expanding' so fast that it has outgrown a good- sized briek building on tree-shaded Fairfax Street in Alexandria, and will move soon to larger and more expensive quarters overlooking the Potomac River waterfront. Being away from downtown Washington is considered a distinct plus. Mr. Atwater quite clearly has Mr. Bush's ear and trust in political mat- ters. They meet frequently face-to- face, and speak often by telephone. While Mr. Bush does not openly discuss within media earshot his po- litical strategies, Mr. Atwater re- vealed them as follows: "A. He will lose the nomination to the presidency and everything else if it means doing something that he doesn't think is honorable with re- gards to President Reagan. He's not going to separate or distance him- self. "B. He's not going to be anything but vice president to the president. "But aside from that, he has an interest in having a political future after ,Ronald Reagan Thirrequires "a political base," Mr. Atwater said, and he described Mr. Bush's base as "one of the larg- est natural political organizations of any candidate in American politics." He described the Bush base thus: "The unique thing about George Bush is that he's got at least three inside the Republican Party as a party activist, grass roots county party chairman, party state chairman "The other base is his own base. He got some 40 percent of the vote and was able to win some primaries like Michigan, and he did very well in Texas. He had a base in 1980 against Ronald Reagan. Certainly not a majority, but he had his own base from going around the track, and he's built oft this base as vice president. "Third, he's got the Reagan base. In the last two polls I've seen, 80 percent of the people who supported Ronald Reagan, rank-and-file vot- ers, are going to support George Bush. And I'd say that's 80 percent of the activists?' The Fund for America's future is already handing out funds to se- lected state Senate and House Re- publican candidates, and it will gear up to Help virtually every incumbent Republican U.S. senator in an effort to keep GOP control of the upper , chamber. This will give Mr. Bush a consid- erable pile of "chips," "IOUs," "fa- vors," or what-you-will to cash in the 1988 campaign. The debts will prob- ably be paid off gratefully For the obligatory campaign slo- gans, speeches and posters, the can- didate's assets, which will be advertised or suggested, will in- clude, according to Mr. Atwater: ? "Experience. Experience at a time when experience is at a greater premium than ever before. This country is going through two mas- sive changes. A technology, rev- olution and a values revolution, brought forth basically by the infu- sion of baby boomers. So there's a lot of insecurity and instability out there in the political system. In ev- ery poll I've seen this year, exper- ience is more important than ever before as a quality in 'candidates?' ?,"He's got the organizational ad- vantage?' ? ??"He's a good candidate. He's a good politician. He knows how to re- - late to people. He does well speaking." ? "He's got endurance. Strom Thurmond and he are alike in that:' As Mr. Bush's "strategist:' Mr. At- water refused to discuss Mr. Bush's liabilities, while admitting, "Everybody's got some?' But he quoted Mr. Bush as saying that if the economy goes totally sour, and the Reagan administration gets a black eye, then he will suffer. "He is indelibly linked," Mr. At- water said, "to the presidency of Ronald Reagan. He's very proud of that and will do nothing to run away 2, 01R000100010001-8 "But if everything sours ana goes to hell in a handbasket, then he's go- ing to have some problems. "However, if that happens, what I maintain is that any Republican is going to have problems, because a great man says, 'You can run, but you can't hide: "If we get in a situation where the econainy is in shambles:. and so forth, people will want to distance from something like that and will hot accept anyone else from the same party A Wave will sweep across and a Democrat can win:' Mr. Bush's enemies, of the politi- cal kind, will not be so reticent about exposing his weaknesses, including some rather slangy ones, like "wimp," which are neverdelivered to his face. Mr. Atwater confronted these charges: ? Wishy-washy ideologically. ? "I am a conservative, an unabashed conservative. I got my start fromr Strom Thurmond. Worked for him for 10 years. The two politicians I've been associated with are Ronald Reagan and Strom Thurmond. . . . So I wouldn't support somebody who wasn't a conservative. ? Elitist. "The elitist thing, the only way to solve it is when the cam- paign starts. Get out and connect with the people. He can't help the fact that he was born somewhere, and he went to a certain college. We are not an anti-intellectual country I think the elitist charge is a problem, but it is not a crucial ... or lethal problem. I think George Bush will' go out there and connect very well with the populist and the conserva- tive voters, and it remains to be seen if anyone else is going to go out and get the populists:' ? Wimp. ? "The wimp image is another he is going to have to solve. There's no question he got hit with that charge. Now it never was out there in the '80 campaign. It got out in the '84 campaign as a result of him really getting out there and being loyal to Ronald Reagan. He got him- self into a damned-if-you-do, damned-if-you-don't situation. By and large he did the exact right thing. Because if he did anything that would have created separation between him and the president, or indicated any kind of disloyalty in a dispute over policy, not only would he have got murdered by the press, it would have created the kind of chaos on the ticket and chaos in our campaign, and Katie-bar-the-door, you don't know what would have hap- pened." vie Against who does current At- waterian thinking conclude a Re- publican will have to run in 1988? "In the modern presidency you've got two nominations going on in each from that.party Approved For Release 200.6./01/03 : CIA-RDP91-00901R000100010001-8 !,1401 "In 1980, the _Aooroved_For Release 2006/01/03 : CIA-RDP91-00901R000100010001-8 xeptimican Party had a conservative nomination going on, and a moderate conservative nomination. So you had Baker vs. Bush, and then you had the whole field against Reagan. "The Democratic Party has two nominations going on. The new gen- eration nomination and the old guard nomination. On the old guard track, in my opinion, is [New York Gov. Mario] Cuomo and [Massachu- setts Sen. Edward] Kennedy. Both traditional prevailing wing of the Democratic Party "Then you've got the new genera- tion nomination. I think Gary Hart holds a position as commanding on that track as Reagan did in the con- servative track for us in 1980. Be- cause he's been around that track, and so on... "So I think you'll have Cuomo or Kennedy, maybe with Hart:' Are there any political novices or black sheep in the wings? "I think ,Lee Iacocca will wipe himself out in the invisible primary, if he gets in. Which would he be, a Republican or a Democrat? "On the Republican side, maybe [former governor] Pete du Pont of Delaware. And there's talk about Pat Robertson of the 700 Club." With those forecasts, Mr. Atwater hurried away to the vice president's house on Naval Observatory Hill in Washington to discuss matters of ut- termost privacy having to do with the ongoing permanent floating presidential campaign. lbmorrow: An interview with Bush. Approved For Release 2006/01/03 : CIA-RDP91-00901R000100010001-8 t..31L4 :. ? ver, For Release 2006/01/03 : CIA-RDP91-00901R000100010001-8 WASHINGTON TIMES 31 October 1985 A conversation with George Bush Last of a series - Friendship and foreign policy were the focus of an interview with Vice President George Bush in his West Wing office. The events of the day included a visit to the WhiteiHouse by the re-, cently released. hostage, Benjamin Weir. Mr. Bush was dressed in a dark blue suit, white shirt, a dark blue necktie with tiny dots, highly pol- ished black shoes, and dark execu- tive length stockings that accor- dioned down his long shins like a dancer's leg warmers. He wore rim- less aviator glasses and his mood was cordial and almost jovial. He replied to questions from Washing- ton Times writer Barnard L. Collier and White House correspondent Mary Belcher Marlin Fitzwater his chief press aide, sat in on the ses- sion. The vice president's voice was fa- miliar, with its higher-than-expected pitch and an acquired Texas twang. He left off the last sound or so of different words when he was speaking in a relaxed way. He also spoke with a few ruralisms like "gonna" for going to, and "ya" for you, and" 'em" for them ? but only when he was semi-exuberant and not paying strict attention to his enunciation. For most of this interview he sat in his desk chair, sometimes leaning back comfortably, and he appeared at ease. GE ORGE BUSH itIN INSIDE LOOK Q: This is a question I was asked to ask. Your pscception and your phi- losophy about whet is, quote, called detente? A: My own feeling is that I think,, we are on the right track trying to reduce tensions in an intelligent way. You have to define what one means by ? detente. It has taken an, it has Approved a connotation of acquiescence, ap- peasement and all of that. That isn't what this policy is about, nor my own views about what we ought to be do- ing about it. In other words, I think that we're trying to get an agreement with the Soviets that is verifiable, sound. That's good policy. That's what we're gonna do ? if we can get their agreement on that. But to just enter into an agreement for the sake of an agreement. I'm not for that. Cer- tainly the president's not for that. Q: Let me ask you in terms of background: Eventually with all the people who get to be president, other people say, "Who are their friends?" ... Who do you listen to? A: I couldn't give you ... I couldn't help you with that. I mean it's too political. "Who's gonna be shaping a Bush administration?" I just can't go into that. I can tell you who some friends are. Q: That's fine. A: But it depends on how you de- fine "friends." You know ? how's this going to be analyzed? Is somebody gonna say, "What's this person's views?" Or are you talking about friendship. Where you have friends that, I mean, ah ... Just explain how you want to use it. I'm getting kinda gun-shy politically. Q: I really do understand it's a difficult question. If you want to just leave it be there, I can understand. A: Yeah. But I got a lot! One of the things we've been blessed with is many, many friendships. But I mean if you're doing a political piece and then some "analyst" there at the pa- per is gonna say, "Well, ya didn't even mention anybody in politics." I don't know. It's a perfectly good question, but I really need to know what con- text. Should I give you a political an- swer? Q: Give me a political answer. A: In other words, be sure we got it all balanced out by states, and stuff like that. Or do you want to know who. our really close friends are? Like C. Fred Chambers, for whom we named our dog. I mean, ah, he's a very, very close friend. And, you know, Nick Brady and this could go on and on. For Release 2006/01/03 : CIA-RDP91-00901R Bobby Holt [oil and banking] out there in Midland. I mean in Midland, Texas. I . . I fear that omission. Sonny Montgomery [Rep. G.V Mont- gomery, a Mississippi Democrat] in the Congress is a close friend. So's [Rep.] John Paul Hammerschmidt fan Arkansas Republican] Both members of Congress. Gosh! The Liedtkes with whom I used to do business. That's Bill and Hugh Liedt- ke. And Baine Kerr. These are friendships that go way back. I men- tioned Fred Chambers. Will Farish is one of my close, closest friends. Q: Let me ask you a philosophical question... How would you describe yourself? As a human being and an Individual. A: Well, hopefully'... Well, it's a little arrogant again, talking about one's self. So I'd almost rather get out of it. But I'd hope with some in- tegrity. And I hope with concern, compassion. Is that the kind of thing you're talking about? Q: When you look in the mirror, what do you see? A: A guy that's had a long schedule the day before, and who wants a little time off. Q: There is a public perception of you and Mrs. Bush. A: It's better to get others to help with that. I spent my whole life learning not to talk about myself from my mother. When we started doing that, why she'd get upset with us. Now, I'm suddenly asked to stretch out on a couch. I can't do that. But you can get that from a lot of people. I'm not that subjective. When I look in the mirror, I don't say, "Now. Ah ... [Stretching his neck high, as if shaving it with a straight razor] What is this fellow really like?" And I'd say, "Who's the real me?" I'm comfortable with what I am. Q: You seem like a really private person. A: In some cases, yeah. And that's why I really feel on some of these questions ? I mean I have no prob- lem with people, giving you names of people to ask, and you're going to go get them from people you want anyway. That's fine. But I'm just not good at all this who my close friends are. What I think about my religion. What! want to do about this and that. Q: Why does a man like yQu ? who, your son Jeb says, could'enjoy being rich, who likes his privacy ? put yourself in the painful situation of being a public servant, and sub- jecting yourself to idiotic questions? A: We talked a little bit about that earlier. Early on, an inculcation of a sense of service. Putting something back. Giving something to a country 000100010001-8 _ 0?folltd you believe in. Workaglpreteickfupr believe. All that. I mean that's what motivates, cer- tainly now. I'm not as much, perhaps, as goal-oriented as I used to be. Get- ting a little more relaxed about that. kinda stuff. But, hopefully, a desire to, you know, at this juncture do my part in taking the country in a cer- tain direction, and serving in the process. Because there's a whole other world out there. It's much more private, much more relaxed, which certainly has appeal. I don't get into that mode that much, but once in a while, up in vacation. I told you about my boat, I think. That's the private side of ' it. Maybe we compartment off our pri- vate and public lives too much. Be, cause I do treasure that. We had all our grand kids, including Jebby's kids, up there this summer. It's very, very special. Very special. Q: You've been doing a little ter- rorism business. You've been doing drug things. You've been doing a lot of fairly complex and difficult things nobody in the public knows about. Is this secret area a reward- ing area? A: Oh, yeah. It doesn't need to be refurbished with public stuff. Mar- lin knows this. When you go back over the four and a half years we've been here, everybody that's met with the president, I've met with. And you talk about friendships, you develop a lot of 'em. You don't discuss them in terms of warmth of personal friendships because I think that confuses your public life. But we never put out press releases. We've never tried to, ever, well, once in a great while, maybe one ... But it goes on all the time. And it's a fasci- nating part of what I do... But the way I see it is make the contribution to the administration. And not have to be out there feathering your own nest with every time you shake hands with the guy who just won the Heisman rfrophy. I'm not above do- ing that, and maybe we'll have to do more of it. We do some of it. But I've tried to be in there supporting the. president. One way you manage things bet- ter is if you're part of what he's do- ing. Part of his administration. So all this other stuff that I do, some of it's very substantive. I always mention one of the things was coordinating some additional funds for Atlanta at the time Atlanta was traumatized by the death of those black kids. Well the president asked me to do that. We did it. We got some public attention to it then, but not a tremendous amount. But I took great satisfaction from that. . And there's regulatory relief. Fi- nancial deregulation. Anti-narcotic Re I e a Set4106081 AP3thUilnxigi3P991(100 ments are good. rhaven't sougnt out a lot of them. And they're an impor- tant part of the job. But they're not as important a part of the job as the interaction with the president, and being clued in on what he's clued in on. And advising and listening and getting advice. That part is the thing that sets this vice presidency apart ... So I would say that these special assignments are very important. I love the ones dealing with foreign affairs ? we haven't touched on that. But going down, you know, dealing with the commandantes and government leaders in El Salvador, and telling 'em, "Look, this' thing has to be shaped up now. You must have re- spect for people's lives and the law if we're- gonna continue supporting you:' I think [former ambassador to El Salvador, now to Israel] Tbm Picker- ing would tell you that was a major turning point. But it's not something I came back and cranked out tons of press releases about. And yet you. have the satisfaction inside of say- ing, "Well, it certainly is useful:' Same as this trip to Europe, going around talking about INF [Interme- diate Nuclear Forces] and tryin' to stave off the Monsignor Kents of this world, who are leading a big public relations charge against our deploy- ment. So you can do some specific things, and I enjoy doin' it. Q: What about your trip where the Israelis got refugees from the Sudan flown to Israel in a top secret airlift? A: There was speculation about that which I am not in a position to confirm or deny, or discuss. But yeah. There are specific things where you can make good. Q: This goes back in history again. What happened in Nashua, New Hampshire? I asked almost everybody and they could not put their finger on it. They say ask you. A: You mean the ...? Q: What happened that you went In one night and looked like a winner and you came out the next morning and looked bad? A: Well ... Ronald Reagan stole the show! He did a very, very dra- matic thing there. And, ah, did it very well indeed. And you look at what happened in Nashua a few days later in the campaign. He got the same vote he got four years before. He kept his vote against the incum- bent president against a rather large field. And the other 50 percent was divided between several of the rest of us, with me second. At the debate thing, he just did a superb job of, you know, "I paid for the mike" thing. It wasn't personal against me, I think. He has the satis- faction of knowing he won big and did it well. I have the satisfaction of Approved For Release 2006/01/03 : CIA-RDP91-00901R000100010001-8 01 R00i600411Vil4-iiy word, which is also a good thing to do. And they wouldn't be contradictory between him and me. I believe in my word. I believe it means something in the final analysis. But it wasn't too help- ful in terms of versatility. Now if you asked me, "On hind- sight, would I have done that differ- ent?" Absolutely! Q: What would you have done differently? A: I'd say, "Sure! Whatever it was the question was." Letting these guys debate, or whatever. Q: So you learned something out of it. A: Yeah! I learned a lot out of it. Absolutely. I learned a lot from a lot of things that goon. You know, I think if you're too old to learn, and too old to make decisions based on what you've learned, then what's the point of being out there? You've got to learn from your experiences. Q: It's obvious from the kinds of missions the president sent you on, and the kinds of things he has you doing, he considers the two of you Interchangeable. The question that has arisen today is, "Why are you meeting with the hostage families Instead of Mt Reagan meeting with them tomorrow?" And if you would like to anewer that or venture an opinion. A: It's natural. Last people that met with them was Bud McFarlane. Now me. I don't know what his [the president's] schedule is. But I think they [the families] asked to. I think the request came from them. Either the president or vice president. If they phrase it that way, they are go- ing to get me, the JV. That's the way it works... Q: How's that book? A: This one? ("How to Serve") I was a little insulted the guy thought I needed it. Q: Who sent it to you? A: The guy that wrote it. This guy's from down in Albuquerque. I just got it ... You know, I don't want to short shrift you on your request on the friendship thing. I have hesitancy in discussing this person or that. But it's very difficult for me to click it off. It's also very difficult for The Wash- ington Times or The New York Times. Because I know how the ana- lysts work. And I know how people say, "I read in one piece recently that so-and-so's a friend, and that friend worked for so-and-so." I have never believed in that in politics. A kind of guilt by associ- ation. Or that somAkkgrcieffig Fdir Release 2006/01/03 : CIA-RDP91-00901R000100010001-8 Adlai Sternson and not Ike, so that would preclude my having a friendship with him. There's also the privacy side. But, you know if I go on bragging about how lucky I am to have friends, maybe I should be more cooperative in that department. But I got tons of friends. Just rich in friendships. Particularly friends we made in Con- gress. Friends that I've had in the political world. Close friends from , "social." Q: Any friends left from Yale? A: Yeah, See, Yale was different.. Very close friends from Yale. Lud Ashley [T.WL. Ashley, a retired Ohio Democrat], a very strong friendship. He and I could have stayed home when we were in Con- gress. We just cancelled each other out on every vote. That's why I ask about how you define it. Because if you say, "friends and political allies," he's plugged in on the bottom of the list. But if you say, "close personal friends, who can lift you up when you're hurting," or something like that ? he's there. Right up in the front of the line. And to kind of go through it, friends from the service. Milt Moore, who I flew with. Hell, we thought he was dead. The minute I saw him down there [in Norfolk, Va., at the 40th anniversary of his being shot down and rescued in the Pa- cific] you know ? friendship. It's there. So all, each stage of our life, I have very close friends. And they are from all different ends of the political spectrum. Approved For Release 2006/01/03 : CIA-RDP91-00901R000100010001-8 3. Approved For ReleasiNICTROW alkieWNWO1R00010 010001-8 9 September 1985 LXCCELP2 BUSH: SUMMIT COULD PRODUCE AGENDA OF DIFFERENCES BY JOHN C. BRADEN MANHATTAN, KS Vice President George Bush Monday said he hopes an upcoming summit between President Reagan and Soviet leader Mikhail Gorbachev will "squarely and honestly" set out differences between the two superpowers. On the 98th birthday of GOP patriarch Alfred M. Landon, Bush said the world's leaders would do well to look to the unsuccessful 1936 GOP presidential candidate as an example of grace and wisdom in the face of adversity. Bush delivered a Landon Lecture to about 7,000 students, faculty and members of the public at Kansas State University's Ahearn Fieldhouse. Later, he flew in Air Force Two to nearby Topeka to celebrate Landon's birthday with the former Kansas governor who was defeated in Franklin Roosevelt's 1936 re-election bid. Landon's career is a living example of the state's motto, which translated, means "To the stars through difficulties," Bush said. "We must remember the lesson that Alf Landon has taught America - and through us perhaps we'll teach the world -- that you can get to the stars, if with wit, wisdom and perseverance you meet your difficulties squarely and honestly," Bush said. He said the summit between Reagan and Gorbachev should set an agenda of problems for eventual discussion. He said that agenda could lead to greater stability and harmony between the nations. "If we are to reach the star of stable and peaceful Soviet-American relations we must face these difficulties squarely, honestly," he said. "Acknowledging differences is not a way of inflaming Soviet-American relations. It is a necessary step toward improving them." Items on that agenda should include Soviet use of chemical weapons, intermediate nuclear missiles and anti-satellite weapons. "When, as director of the CIA, I headed the intelligence community IQ years awl I learned way back then that the Soviets were engaged in extensive research and had successfull tested an anti-satellite weapon " Bush said. "They launched a satel i e and then they effectively intercepted it in orbit. Now they have_g_e_s_iglyj_g_s_tldland deployed netthey oblect to our doing any testing at all." The vice president said this is a key time for the summit because the newly named Gorbachev is one of the most articulate Soviet leaders in recent times. He added that the Soviets are completing their latest five-year plan, and are in a period of extensive policy re-evaluation. He said the recent U.S. media blitz by Soviet leaders, leading up to the summit, is merely a continuation of long-time policy in which the Soviets try to manipulate the populace of free nations through their media. Approved For Release 2006/01/03 : CIA-RDP91-00901R000100010001-8 STATINTL Approved For Release 2006/01/03 : CIA-RDP91-00901R00 ART ICLI PURER ON PAGE WASHINGTON POST 4 July 1985 100010001-8 STATINTL Bush Seeks to Reassure Allies on Space Weapons By Karen DeYoung Washington Poet Foreign Service LONDON, July 3?Vice President Bush sought to reassure NATO allies today that the administration's Strategic Defense Initiative is aimed at strengthening rather than doing away with the concept of nuclear deterrence that has been the cornerstone of postwar alliance defense strategy. "Our objective is. to strengthen deterrence, enhance the stability of both the Western Alli- ance and East-West relations and help ensure the peace of the world," Bush saki. Bush also repeated the administration's belief that a new round of talks on international trade should be held?a proposal that was rejected by France during the economic summit in Bonn in May. Bush's remarks in a speech to the Internation- al Institute of Strategic Studies here, came on the last day of an 11-day European tour that took him to seven NATO capitals. The trip originally was billed in Washington and Western Europe as a sales tour to promote SDI. But events, including the hijacking of a U.S. airliner and the holding of 39 American hostages for 17 days in Beirut and the recent series of terrorist bombings, turned its focus to gaining support for U.S. counterterrorism measures and trying to coordinate a western response. During a day a nd a half of discussions with Minister Margaret and her gov- ernment, as well as with other governments an opposition leaders, Bush said, he had found "unanimous . . . enthusiasm" for cooperation in a "wide range of areas," including preemptive mea- sures and intelligencesharing. "The governments Orthe United Kingdom and the United States of America declare their de- termination to work together with all like-mind- ed states in combating this evil," Thatcher, standing with Bush, told reporters outside her residence. ? Britain, however, declined to join the United States in ordering legal and diplomatic measures to isolate Beirut International Airport and crack down on Lebanon immediately. Thatcher, ac- cording to a top aide, told Bush she wanted to consult with other Western European govern- ments before taking steps such as the withdraw- al of landing rights for the four weekly Middle East Airlines flights from Beirut. Approved For Release 2006/01/03 : CIA-RDP91-00901R000100010001-8 Approved For Release 2006/01/03 : CIA-RDP91-00901R00010001 11971..E APP ARED Ci'?'' NEW YORK POST 25 June 1985 BUSH: WE'LL NEVER YIELD TO THREATS ROME (Reuters) ? Vice President George Bush yesterday de- nounced the Air-India sky bombing and vowed the U.S. won't knuckle under to terrorist de- mands. Bush, in Rome for meetings with Italian- leaders and the Pope, said at a news confer- ence that he did not know what caused Sun- day's crash that killed 329 people aboard the In- dian airliner. - "I do know that there have been threats and suggestions by elements hostile to [India's Prime Minister Rajiv Gandhi] that some action would be taken," he said. "Whether that had anything to do with this Indian flight we really don't know. I must say it went through my mind as it went through everybody else's mind. "I would hate to think that anyone was so de- prayed that they would take 300 and some inno- cent lives to attempt to settle some grievance . . But that incident has shaken the conscience of the world . . It has made a tremendous personal impact on me." Two extremist Sikh groups have claimed re- sponsibility for planting a bomb on the plane. Bush, whose talks with Prime Minister I3ettino Craxi and Foreign Minis- ter Giulio Andreotti in- cluded terrorism, said the Italians had assured him of "utmost cooperation" In a new anti-terrorism assignment. President Reagan an- nounced last week that Bush would lead a gov- ernment task force to study U.S. action against terrorism and to coordinate cooperation with U.S. allies. "What's called for is a redoubling of interna- tional effort to safe- guard innocent people against this kind of ter- ror.' Busn said In call- ing for increased shar- ing of intelligence and improved airport se- malty measures. The vice president also said Israel l3 release of 31 Lebanese pris- oners, mostly Shiite Moslems, had nothingto do with demands by Shiite mosiem guerril- las holding American hostages in Lebanon. "We are not in the pos- ture now, have been nor will be in the posture of knuckling under to de- mands. . . That has not changed." he said. "This linkage says to a hijacker: `All you have to do is grab an Ameri- can citizen somewhere and you'll fulfill an un- reasonable demand.' "That linkage will never be sanctified by the U.S. government," he said. STATINTL 0001-8 Approved For Release 2006/01/03 : CIA-RDP91-00901R000100010001-8 ARAllgrAlmARPRitEllelease 20RF.91/9gItTE91-00901R0001000.1 ON PAGE A1125 June 1985 0001-8 Hostages in Lebanon: Bush's Thought Bush Says Air-India Crash Shakes World's Conscience ROME, June 24 ZReuters) ? Vice President Bush said today that the crash of an Air-India jetliner had "shaken the conscience of the world." Speaking at a news conference after meeting with Italian leaders and the Pope, he strongly reaffirmed the refusal of the United States to ask Israel to release prisoners in ex- change for the freedom of 40 Amer- ican hijacking hostages being held in Lebanon. Mr. Bush said he did not know the cause of the crash that killed 329 peo- ple aboard the Indian airliner off Ire- land on Sunday, but he noted that there had been threats against Prime Minister Rajiv Gandhi of India re- cently. "I do know that there have been threats and suggestions by elements hostile to the Prime Minister that some action would be taken," Mr. Bush said. "Whether that had any- thing to do With this Indian flight we really don't know. I must say it went through my mind, as it went through everybody else's mind. "I would hate to think that anyone was so depraved that they would take 300 and some innocent lives to at- tempt to settle some grievance. But that incident has shaken the con- science of the world. It has made a tremendous personal impact on me." Two extremist Sikh groups have said they were responsible for plant- ing a bomb on the plane. Italy Promises Cooperation Mr. Bush, who discussed fighting terrorism with Prime Minister Bettino Craxi and Foreign Minister Giulio Andreotti, said the Italians had assured him of ?utmost cooperation" In the effort. President Reagan announced last week that Mr. Bush would lead a Gov- ernment task force to study what steps the United States could take against terrorism and to coordinate cooperation with American allies. Mr. Bush said the group would draw on outside experts and added that the United States had great re- spect for the way Italy had handled its terrorism problem. "What's called for is a redoubling of international efforts to safeguard innocent people against this 'kind of terror," Mr. Bush said. He called for 111.,IPEDIM aSejJ1-1/21211199 apd improved airport security proce- dures. ?ffellso said that Israel's release of 31 Lebanese prisoners, mostly Shiite Moslems, had nothing to do with de- mands by the hijackers of the T.W.A. plane and that the United States would not ask Israel to free other pris- oners. "We are not in the posture now, have been nor will be in the posture of knuckling under to demands," he said. "That has not changed." "This linkage says to a hijacker: 'All you have to do is grab an Amer- ican citizen somewhere and you'll nil- fill an unreasonable demand,'" he ? said. "That linkage will never be sanctified by the United States Gov- ernment." 1 Approved For Release 2006/01/03 : CIA-RDP91-00901R000100010001-8 STATINTL ftritlykilirit7v-e-cPf or Release 2006/00A:9i/ WeRDpAi1-?10901R000100010001-8 29 May 1985 Lofton with love I like George Bush. I really do. Ask him. I think he would say, "Yes, I think John likes me." And I would even go so far as to guess that he would add, "And I like John." But the vice president's views on the Soviets really worry me because they are dangerously naive. And the one qualification any president-to- be must have is a realistic view about the Soviets. In an interview the other night on the CBS "Nightwatch" program, Mr. 1 Bush said this of the Kremlin's new- : est top thug, Mikhail Gorbachev: "We know we got a good commu- nicator on their side, but what we _ . 1 don't know is what he's going to com- municate." The Veep said: "The jury is still out on the Soviet Union." Commenting on the Soviet's bru- tal murder of Maj. Arthur D. Nich- olson Jr.? or as Mr. Bush put it "the 1 ,Maj. Nicholson thing" ? he said that, at first, it looked like the Soviets would be conciliatory about it, that it would be "manageable." But, he said, ' we then saw a "hardening of the line" i just before the Central Committee and the Politburo met. "What Mr. Bush was alluding to ? - about the Nicholson murder was the ? embarrassing fiasco where one day' a State Department spokesman said the Soviets? had agreed not to permit ? "use of force or weapons" against American military liaison personnel ? in East Germany But, a few days later, the Soviet Embassy here issued a statement saying they had made no such agreement. And the commander of Soviet forces in East Germany told our reporter, Peter Almond, that the guard who mur- dered Maj. Nicholson was merely "fulfilling his duty." A hardening of ?: the line, indeed. Well, now What is one to make of Mr. Bush's incredible assertion that we don't know what Mr. G is going to communicate, and that the jury is still out on the Russians? Is he seri- ous? Alas, I fear he is. But why? Why does Mr. Bush say he doesn't know what Mr. G is going, to communicate when Mr. G has made it crystal clear what he believes? On Apri122, 1983, the 113th anniversary of Lenin's birth, Mr. G attacked "American militarists" and FTON m To Vice President Bush fro UNLEASHED By John Lofton "the imperial ambitions of the United States," declaring that "the Leninist principles of socialist for- eign policy determine all interna-' tional activities of the Soviet Communist Party and the Soviet ? j ? state." - And on May 13 .of this year, at a celebration of the 40th anniversary of the end of World War II, Mr. G said: "The Cold War Was started by the belligerent circles of the West. ... American imperialism is at the cutting edge of the war menace to . humankind. The policy of the U.S.A. is growing more bellicose in charac- ter and has become a constant neg- ative factor. The aggressive intent of the ruling elite of that coun- try I us I is seen in the attempts to " undermine the military-strategic balance. ...? Barbarous doctrines and concepts for using nuclear weapons are being developed. ... A policy of state terrorism is being fol- lowed against Nicaragua..... This is a jury that is still out, Mr. Vice President? This is not the first time Mr. Bush has said things about the Soviets that raise serious questions about . the consistency of his skull concerning this issue. Following his attendance at the funeral of Leonid Brezhnev, Mr. Bush said of his replacement, Yuri. Andropoy, the former head of the. KGB, that -some people" had made his old job as head of the Soviet . secret police sound "horrendous." But. said Mr. Bush of Mr. Andropov: -Maybe I sneak defen- sively as a former head of the CIA. But leave out the operational side of the KGB ? the naughty things they . allegedly (?!) do. Here's a man who has had access to a tremendous amount of intelligence over the years. In mv iudgment. he wouraTte much less apt to misread the inten- tions of the United States." Commenting on-the tact that Mr. . Andropov was "very much in charge," Mr. Bush said that on this basis there was (are you seated?) "every reason to be hopeful," that "you've got to be hopeful." STATINTL . Hopeful? Among the "naughty things" Mr. Andropov was involved in during his infamous career Were the following: Ile played a key role in the crushing of freedom fighters in Hungary and Czechoslovakia (he reportedly had '1 lungarian patriots Imre Nagy- and Pal Maleter mur- dered after leading them to believe he would negotiate with them); he directed the Soviet genocide against. the people of Afghanistan; he smashed the dissident movement in the Soviet Union; and there is com- pelling evidence that his KGB was behind the plot to murder the pope: In an interview subsequent to his attending the funeral of Mr. Brezhnev, Mr. Bush, when asked if Mr. Andropov could be trusted to keep an agreement, said (for this one you should be lying down): "It's hard to say. I have no reason to believe that, as a person, hel would break his word. I don't have any reason to believe the other way." Yuri Andropov, a man of his word? A most bizarre assertion. In his part-Of the book "The God That Failed," ex-communist Arthur Koestler wrote: "There is always a supply of new labels on the Conlin- forin's black market in ideals. They deal in slogans as bootleggers deal . in faked spirits; and the more inno- cent the customer, the more easily he becomes a victim of the ideologi- cal hooch sold under the trademark of Peace, Democracy, Progress, or what you will." And this is what bothers me greatly about George Bush: When it comes to the Soviet's ideological hooch, he is a very innocent cus- tomer. lie seems to swallow it whole wit 114 nit so in itch as twitting an eye. And this scares the hell out of me. .ioho 1.011on is o oho/mist lor. Woshifixtoo Approved For Release 2006/01/03 : CIA-RDP91-00901R000100010001-8 4 Approved For ReleaseMINVOM34: VAURDP91-00901R000100. ARTI',:121 "raltC) ON PA-03 29 March 1985 Rowland Evans and Robert Novak Dick Waiters' Resignati When. Gen. Vernon A. Walters handed Sec- retary_ of State George Shultz a letter Monday "resigning" as President .Reagan's choice for U.N. ambassador because of limitations the secretary had imposed on him, a startled Shultz waved it off with the remark: "I'm not empow- ? ered to act on that." - If Shultz had accepted the letter, he would have nur afoul of the president, who very much.. wanted Walters to succeed Jeane Kirkpatrick at ; the United Nations. If he had refused it, he would ' have run the risk of Walters' getting the right to attend National Security Council meetings. As it turns out, Walters will succeed Kirk? - patrick with the status of the job (including at; , tendance at NSC meetings) undiminished, as he had been promised when first offered it. But in most areas, Shultz and his allies in the For- eign Service bureaucracy have been winning' their struggle. forrn a traditional foreign policy controlled by the career service. ? ` That battle has added new tension to the relationship 'between secretary of state and i? U.N. ambassador, strained since Dwight EiSen- howei elevated the status .of Henry 'Cabot: Lodge in 1953. The difficulty of treating a sub- ordinate as a Cabinet and NSC colleague was enlarged when Kirkpatrick evolved as the con- servative movement's militantly anti-commu- nist answer to State Department caution. Relief at State over Kirkpatrick's departure has been mitigated by the identity of her succes- sor. Dick Walters, who began hii--diploiiiatiCca- reer as Richard Nixon's interpreter'. and has flourished as Ronald Reagan's troubleshooter, has all the potential of becoming a darling of the tight, equally as troublesome to the elite corps of foreign policy officers as 'Kirkpatrick. Conse- quently, word was leaked months ago that Kirk: patrick's successor would sit on neither the Cabi-1..- net nor the National Security Council. Efforts to reduce 'Walters from Cabinet ' status failed quickly, but ambiguities arose about his participation in NSC deliberations., . (where the president makes Major 'national se;:, curity decisions).- On March -22, Walters went.' to the' White House to see NSC Director Rob- ert D.' McFarlane in hopes of clearing away . those amibiguities. ? 10001-8 While waiting in the 'lobby, Walters was in- formed that "the president is ready to talk to you" on the telephone. Amazed, he picked up the ! phone and for the first time was officially asked by the president himself to take the U.N.-job.. Minutes later, McFarlane received Walters and informed him of the decision, privately reached by Shultz and the White House exclud- ? ing Walters from. regular NSC attendance. Having just told Reagan himself that he ac- cepted the job, Walters wondered how he could now refuse. He forced the issue three days . later by handing his. "resignation" to Shultz. Walters really did want out when he handpd _Snuaz that letter. Indeed, had it not been for pri- vate counsel from no less than Richard Nixon, tieorge -Bust and William Casey, he might have ? yielded to despondency and really walked away. Instead, he followed Nixon's. advice to "hang tough." From Vice President Bush and Casey, : rormer and present directors of the CIA (where Walters served Nixon as deputy 'direc-1 tor), came quiet encouragement. When Shultz ? lobbied the . president to keep Walters out of the Cabinet as the first step toward blocking him from the .NSC, Bush "wouldn't buy it," one high-level presidential adviser told us.' At mid-morning Tuesday, the day after Wal- ters 'handed his, letter to Shultz; he was tele- ,' phoned by McFarlane. Walters would have ex- actly the same status as Kirkpatick, McFarlane I. told him. That was not full membership (there are only four statutory NSC members) but would mean fairly regular attendance at meetings. . Since that is all Walters ever asked, the battle over status and turf that almost unhinged one of. Reagan's better appointments has ended its first ...phase. The cause of that struggle lies not only in the peculiarity of a single, unique ambassador with policy-making powers but also in the secre- lary!s determination to conduct an orderly for-' eign policy with the help of the career service. . Walters' sitting regularly at the NSC table continues to threaten Shultz's objective. That ex- plains why the tense backstage events of the last week are likely to be repeated in the future.. @U5, New Amertca Fiyndtcare Approved For Release 2006/01/03 : CIA-R0P91-00901R000100010001-8 STATINTL Approved For Release 2006p:11/93-? clA7RpP91-00901R0001000 0001-8 AF.TI:IE 01:SEED .JD Marcn 1965 " FAGrA121---- U.S. 23iii lift one week, but the decision to go ahead was made when no one could guarantee that any more Falashas could be located in Sudan. Then, Thursday night, they were quietly moved from Tawawa under Quiet for the cover of darkness and carried in Q ? , "souk lorries," trucks locally hired uick, Q for the job, to the airstrip, about six - ? - ? miles away. The Falashas were sep- )1 Search Turned Up arated into groups and spent the night camped by the rough runway. Six propeller-driven Air Force Fewer Refugees Of Falashas By Charles T. Powers Los Angeles Times KHARTOUM, Sudan?The U.S, operation that airlifted about 500 Ethiopian Jews from Sudan Friday is now believed to have removed ? virtually all members of the refugee ?group from Sudan, according to re-- liable sources. In the days before the airlift took place in a precise, three-hour op- eration on a dusty airstrip near the town of Gedaref, a quiet but diligent _search was made of all the refugee camps in eastern Sudan, where the Ethiopian Jews, known as Falashas, were likely to be found. - Five Falashas were located at a camp called Urn Rakoba, about 40 miles inside the Sudanese border, a . refugee camp where almost 1,200 Falashas died last summer after _they had trekked out of their home- lands in Gondar Province in Ethi- opia, fleeing famine. - The five Falashas were moved quickly to Tawawa refugee camp - outside- Gedaref, where refugee _ experts had assumed that about - 900 Falashas were living. - In November, December and Jan- ? uary, about 7,800 Falashas were moved from Tawawa and sent to Israel in secret flights from Khar- toum. That airlift, called "Operation Moses," ended two days after news of the airlift leaked in Israel. ' When "Operation Moses" was halted?at the insistence of the Su- danese?it was believed that about ? 900 Falashas Were left behind, but when they were counted in prep- aration for the operation last Fri- 'day, only about 500 were found. - Consideration reportedly was given to delaying the operation for C130 Hercules transport planes, painted in desert camouflage colors, flew from Frankfurt, West Ger- many, to carry the Falashas out. It was reported last week that the refugees were flown to Israel. The planes, it was learned, land- ed on the strip one at a time begin- ning at 5:55 a.m. and, with their engines still running, loaded the - Falashas in groups of about 80, and were airborne again within 20 minutes. The operation proceeded without a hitch, although high winds in the hours before dawn threatened to cancel the airlift. But by then, the sources said, the planes were al- ready, under way, and, as first light broke over the flat, sunscorched landscape, the winds abated, and the first plane touched down. The last of the six planes had loaded and' taken off by about 9 a.m. The Central Intelligence Agency planned and ran the operation after discussions March 7 between Su- danese President Jaafar Nimeri and Vice President Bush, sources said. In the aftermath of "Operation Moses," Nimeri had said he had no objection to refugees leaving Sudan, provided they did not go to Israel. Sudan, a member of the Arab League, has no relations with the Jewish state. Unlike "Operation Moses," an extended effort involv- ing 36 flights spread over seven .weeks, the guideline for the final evacuation was "quick and quiet." While most of the world. might applaud Sudanese generosity in housing ?refugees, the Sudanese government is concerned over re- action to the airlift from more rad- ical Arab states. Sudan, a close ally of the United States and. Egypt, finds the situation extremely del- icate. Approved For Release 2006/01/03 : CIA-RDP91-00901R000100010001-8 STATINTL