DEMOCRATS: GOP IS FULL OF CORRUPTION
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Collection:
Document Number (FOIA) /ESDN (CREST):
CIA-RDP91-00901R000400050001-1
Release Decision:
RIPPUB
Original Classification:
K
Document Page Count:
35
Document Creation Date:
December 19, 2016
Document Release Date:
October 12, 2005
Sequence Number:
1
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Publication Date:
March 30, 1984
Content Type:
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ARTICLE APPEA*Wroved For Rel 11/~8I ~~P91?117 1 OQ 0 001-1
ON PAGE 30 March 198 ~~
D Cc,; m, 0 % - c r a - 1. Q
IS
of corru- on
By Ira R. Allen
United Press International
WASHINGTON - The Democrats have
launched a broadside attack against the Rea-
gan administration, releasing a new televi-
sion commercial depicting "'more scandal-
tainted officials than we've seen since
Richard Nixon and Watergate."
While White House spokesman Larry
Speakes declined to repeat his challenge of
last week that reporters compare the mis-
deeds of the Reagan administration with
those of his predecessors,. the Democratic
Congressional Campaign Committee showed
an ad opening with a color picture of Presi-
dent Reagan, followed by black-and-white
"mug shots" of eight top officials.
A voice recites: "Sweetheart loans. Hidden
financial deals. Abuse of privilege. Secret
gifts. Insider stock trading. Mineral-rights
giveaways. Blacklists. Perjury. More scandal-
tainted officials than we've seen since Rich-
ard Nixon and Watergate. This is moral lead-
ership?"
Rep. Tony Coelho (D., Calif.), committee
chairman, said the collection of more than 50
cases of questionable conduct by Reagan
aides had "the potential of doing significant
damage to the President's re-election efforts
... because his is an administration that
worships greed."
"They believe that the profits of greed will
trickle: down," he said.
Coelho said the ads would start running
this week in the Washington area and would
be placed in various regions of the country
later.
Earlier, Speakes said he did not know
whether the charges of improper conduct
would hurt the Republicans. "It depends on
what the Democrats want to do with it," said
Speakes, who last week said the number of
cases was not "inordinate."
Coelho said that the current investigation
of White House counselor Edwin Meese 3d's
finances and his role in the theft of 1980
Democratic campaign information was a cata-
lyst for the ad campaign. But he also said that
he had been harping on what Democrats call
"the sleaze factor" for almost a year.
The officials pictured in the ad are Meese,
CIA Director William J. Casey, who was em-
broiled in the Carter brie ing-papers case
and was found to have acquired stock. in
companies doing business with the CIA; for-
mer Veterans Administrator Robert P.
Nimmo, who used public money to refurbish
his office; former national security adviser
Richard V. Allen, who resigned over conflict-
of-interest charges after he accepted two
wristwatches from Japanese friends; former
national security staff member Thomas C.
Reed; former Secretary of the Interior James
G. Watt; U.S. Information Agency Director
Charles Z. Wick, and former toxic-waste chief
Rita M. Lavelle, who was found guilty of lying
to Congress.
A list of others is printed on the screen
over Reagan's portrait: former Assistant Agri-
culture Secretary John B. Crowell Jr., former
Deputy Commerce Secretary Guy W. Fiske,
former EPA chief Anne McGill Burford, for-
mer Assistant Secretary of State James L.
Malone, former Assistant Housing and Urban
Development Secretary Emanuel S. Savas, for-
mer Food and Drug Commissioner Arthur
Hull Hayes, former Housing and Urban De-
velopment Undersecretary Donald I. Hovde
and former assistant EPA chief James W.
Sanderson.
Asked about a possible backlash from the
unsubtle, negative tone of the ad, Coelho
said, "I don't think the truth is negative
campaigning. We're talking about moral lead.
William J. Casey
i,i briefing-papers flap
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UNITED PRESS INTERNATIONAL
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BY LAURENCE McQUILLAN
FRE
Walter Mondale today said his constant attacks on Gary Hart are justified
questioning of his rival's stands on major issues, but Republican National
Chairman Frank. Fahrenkopf criticized the Democratic primary feuding,
In Washington, Fahrenkopf issued a statement condemning a Democratic
advertisement attacking President Reagan and his aides. He also criticized the
Democratic contenders for bickering among themselves on the campaign trail.
"Voters demand a higher standard than the Democrats recently have
Evidenced,'' he said, adding that he does not think the public will tolerate
" the recent attempt by the Democrats to sling mud on President Reagan and the
Republican Party.''
The House Democratic Campaign Committee is running an ad showing mugshots of
Reagan administration officials, including attorney general nominee Edwin Meese
and CIA Director William Casey, who have been accused of improprieties.
" It is interesting to note that for all the Democrats' self-proclaimed
interest in compassion for society as a whole, they feel absolutely no
hesitation from engaging in character assassination at the individual level, "
Fahrenkopf said.
"This lack of decorum is not only aimed at Republicans, " he said. ''The
Democratic campaign for president has been dominated by personal attacks by one
candidate against the other.''
EK.GE i PTF Y
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ARTICLE LFFrJ, '= CHRISTIAN SCIENCE MONITOR
OI FLG~._ __.__ : 30 March 1984
The M~ese case:
law and politics
PRESIDENTIAL counselor Edwin Meese III i
should seriously consider withdrawing his name
from consideration for US Attorney General.
This is said with compassion for Mr. Meese, a loyal
and dose aide to Mr. Reagan for many -years, and with-
out prejudging the outcome of a special counsel's'inquiry
into various allegations against Mr. Meese. The allega-
tions fall generally into four categories: that Mr. Meese
or his wife received loans or financial assistance which
were not properly reported, that job. appointments may
have been influenced by the loans, that Carter campaign
documents circulated through his hands, and that be re-
ceived a military reserve promotion he did not merit.
Much of this questioned activity occurred before the
Reagan administration's official startup.
Mr. Meese is caught between two processes, the legal
and the political. The legal, with the Justice Depart-
ment's asking a three-judge federal panel to name a spe-
cial prosecutor to conduct a broad investigation, will nec-
essarily move forward to conclusions on the charges.
Judgment on all or most of the questions should properly
come through this process. The American system's pre-
sumption of innocence should be kept in mind.
The political course of Mr. Meese's case follows a dif-
ferent set of forces. As a practical matter, administra-
tions closely watch the public reaction when a nominee or
a member of the team gets into trouble. This is no less
true even when a president vigorously continues to back
the individual, as Mr. Reagan has Ed Meese. A time
comes for what is rather callously called "damage con-
trol" - when an administration tries to preserve its po-
litical capital and cut its losses.
Perhaps if Mr. Meese's qualifications for the office
were more pronounced and if the set of circumstances he
finds himself caught in did not suggest a vulnerable if not
culpable approach to responsibilities, Mr. Reagan could
be expected to insist Meese tough it out in the political as
well as legal arena. Even if more time remained before
the presidential campaign heated up, the administration
could invest more time in the Meese nomination.
As it is, the nomination has become a lightning rod for
rehearsing the list of Reagan administration appointees
who have come under clouds, from National Security
Adviser Richard V. Allen and CIA chief William J.
Casey to Deputy Defense Secretary W. Paul Thayer. Of
the dozen or more accused of various improprieties, -only
Rita M. Lavelle, head of the Environmental Protection
Agency's hazardous waste cleanup fund, was found
guilty, and then of perjury. This line of attack now merci-
lessly focuses on Ed Meese.
The overriding responsibility of President Reagan in
this matter is to ensure that the Justice Department be
headed by an individual not only loyal to him, but able to
command confidence on his own that he is qualified to
run the highest law-enforcement office in the nation. The
current attorney general, William French Smith, wants
out. His staff is resigning. The department cannot drift
until after the election or to the end of this term.
Mr. Meese can still rightly seek vindication of his
reputation if he steps out of line for the appointment at
this time.
STA
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STAY
ARTICLE APftgMed For Rel 2OB /iri S CIA-RDP91-00901
ON PAGES 30 March 1984
'U.S. Aides Say
Iraqis Made Use,
Of a Nerve Gas'
Assert Lab Gear Came
From West Germans
By SEYMOUR M. HERSH
Special to The itew York Time
WASHINGTON, March 29 - United
States intelligence officials say they
have obtained what they believe to be
incontrovertible evidence that Iraq. has
used nerve ear in its war with Iran and
i5 nneaarincompletion of er tensivesites
for the mass production of the-lethal
chemical warfare agent.
Pentagon, State Department and in-
telligence officials said in interviews
this week that the evidence included
documentation. that Iraq has been buy-
ing laboratory equipment from a West
German company, purchases that are
believed to be linked to Iraq's nerve
1 gas production plans.
The intelligence also shows, the offi-
cials said. that Iraq has as many as five
dispersed sites for the storage produc-
don sembly of nerve gas- p-
ens. Without intervention, these offi-
cials said, Ira is estimated to be
weeks or months away from the ability
to mount major chemical attacks
against Iran's far more numerous
troops.
Deep Underground Bunkers -
Each of the sites, the officials said,
has been built in deep underground
bunkers, heavily fortified by concrete,
that are reported to be six stories below
the surface. Officials said the Iraqi
concern appeared to be protection from
an air attack.
Neither the White House nor the
State Department would formally com-
ment today on the inte ence infor na-
l
If full-scale chemical war develops,
one senior American official said, "the
genie is out of the bottle." He added:
"Arms control is down the drain. And
we've got our forces completely at
risk." The official warned that because
of the nature of chemical weapons,
huge doses of which can be transported
in small canisters, it would be virtually
impossible to effectively monitor the
spread of such weapons to other coun-
tries.
In 1969 the United States reaffirmed.
its renunciation of. the first use of
chemical warfare, and it later reduced
its preparations to defend against a
chemical war. The United States has
accused Iraq of using chemical weap-
ons in the war with Iran, but Baghdad
has denied the charge.
A senior official said this week that
the Joint Chiefs of Staff had been asked
to provide what he termed a "prelimi-
nary look" at the feasibility of an
American air strike on the fortified
sites, but, concluded there were not
enough American aircraft in appropri-
ate locations.
This official went on to say that there
were many in the Government who, re-
calling the successful Israeli air attack
in 1981 on what was determined to be an
Iraqi nuclear plant, would like to see
the Israeli Air Force attack again.
Some sensitive high-level conversa-
tions on the issue between the United
States and Israel have already taken
place, the official added.
This information could not be con-
firmed, although many American offi-
cials, in interviews, volunteered their
personal judgment that such an attack
would be. one welcome solution to the
problem. ,
A senior State Department official
described his frustration over the
issue. "It's not lack of knowledge at
high levels," he said. "It's been in all
the high-rollers' briefing books. The
Iraqis appear to be ready to do any-
thing. The question is what do we do?
Should we cast a major air strike?
That's a big move." The official ac-
knowledged hearing "speculation"
that the Israelis might be "ready to
move," but added that such talk was in.
his view only talk.
The intelligence, which was provided
from sources depict as mom" tier
antnon-si e " as been repeatedly and
orb c efit y Presented to President Rea-
gan in the last week, the officials said,
wit douse notyet providing
policy guidance.
Offycials saiittiat on three occasions
within the week the Central Intelli-
gence Agency, to dramatize its concerti
over the intelligence, had emphasizeeed
or "red lined," the relevant informa.
tion on rap's chemical war abilities in
the Preident's daily intelli ence brief,
one of the most highl classified
docu-.
s
>~ient in __e_Gover~. yTnet.ii5. inf9l-
iaiaian rpar.~d 2yerRigliL by the
C.I.A. and presented earleach morn- ,
Trig to the president:
Praise for C.I.A. Director i
One official, reflecting the frustra.
tion o man~in t e Intel _igence iel3,
pp raised William J. Casey, the Director I
O PC liav`ing 't- e
is to stari~ an i t addin
"He's given the correct information to
thWhite House ans up to fFem.
The State Department said on March
5 that the United States had concluded
that the available evidence indicated
that lethal chemical weapons were
being used by Iraq against Iran, in
violation of the Geneva Protocol of
1925, which Iraq agreed to adhere to in
1931. At the time of the statement an
Administration official said the chemi-
cal weapon being used by -the Iraqis
seemed to be mustard gas, a blistering
agent. At that time Iran accused the
Iraqis of using nerve gas and nitrogen
mustard, but the Administration said
there, was no evidence Iraq had used
nerve gas.
One reason for hesitation over the
issue a White House official aclo-iowl-
edged, is the traditional concern of in-
telli ence o thcia s f or the protection of
"sources and methods." The specific
in' oation about the extent of Iraqi
nerve gas deve oment is said to bavg
been derived from unusually sensitive
sources.
A major diplomatic complication
confronts the Administration, officials
say. American intelligen_ cagencies.
have identified Karl Kolb, a cit~Dtifjt
and technical supply cornpi~
Dreieich~ West Germany,, as being re-
sponsible for the sale and slip~of
sophisticatedIaboratoN eguip>~iea~t
t~fiat, intelligenceoff>cials saS'. has .
bgen used - ap renlly.'~ithout thp
ppmpanv's owledge - to aid the
Ir_aai Goyergrz erJt tcclat_id=tile
ability to develop a nerve as. Sales o
equi me nt considered by American of-
ficials to essential to itie Iraqi ort
were said to have taken place over a
period of at least two years with the !
cnemil com
f~bg j
export pany licenses obtaimng from the ~ West
required
German Government before shipment
.
- Evidence Presented to Bonn
Sometime within the last month, offi-
ciais said. -intelligence officials
o
tained evidence directly link-in the
company's shipments to Iragi _eveTo
tneAt of,J?er_Yez,as.
The C.I.A. relayed some of its infor-
mation and its concern directly to th
e
nited States Embassy in Bonn. an o
ficia.l said, which in turn made a diplo-
matic regresentatio to the W_esLG r
Irian Government. The official Ameri-
Continued
STAT
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BY JOEY LEDFORD
WASHINGTON
1~RDP9=vU901 R0004000M
Sen. Sam Nunn predicted Thursday that whoever is elected president in
November will "spend the next two years asking the American people to
sacrifice'' to deal with massive budget deficits.
Nunn's comments came during a wide-ranging discussion of the issues wi.tir
Georgia reporters in his Capitol Hill office.
The Georgia Democrat said the current odds favor President Reagan in his bid
for re-election "given a constant economy. " But Reagan's $200 billion budget
deficits are spelling disaster for the future, he said.
"I think we're playing Russian roulette with the American economy,'' he
said. ' And Congress has given the appearance of giving enough bullets to fill
the other chambers.''
Reagan, charged Nunn, "doesn't have any plan, to deal with the deficits.
And both sides, including his Democratic colleagues, "are misleading the
American public on the deficits.' '
Nunn said the Democratic presidential candidates are fooling themselves if
they think they can deal with budget deficits by cutting only defense.
''It may be goad politics to ignore this issue in an election year, but it's
poor government, " Nunn said of Reagan.
''The next president is going to spend two years asking the American people
to sacrifice," he said. ''We're going to have some real disillusionment next
year.''
Nunn said he had no preference among the Democratic candidates, quipping that
he is "still thinking about giving a full endorsement to (Sen. John) Glenn.,,
The Georgian also said American budget deficits pose a serious threat to the
Third World, which has credit problems of its own.
''The U.S. deficits are sewing the seeds of revolution ... in some of the
very countries that our military budget is designed to protect, '' he said.
Communist takeovers could occur because of ''economic reasons.''
Continued
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Nunn conceded cuts will have to be made in defense, but said the American
public isn't aware that Congress ended up giving Reagan increases of only 3 to 4
percent in the military budget last year.
The senator said he is "leaning against' ' the nomination of Edwin Meese as
attorney general because of the ''habit of President Reagan to appoint people
who have been running his campaigns to the most sensitive positions in
government. "
Ke likenP~ th~_r~eP~P nomination to that of William Casey, another former
Reagan campaign manager, as head of the en.ra Intelligence Agency.
Nunn also said he would probably co-sponsor legislation to open military
spare parts contracts to small and medium-sized firms. He also supports the $60
million aid package for El Salvador.
Nunn reiterated that he has no interest in being a presidential running mate
and also said he would turn down the job of secretary of defense should a
Democratic president come calling.
'' I wouldn't give up the Senate for any cabinet position,'' he said.
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ARTICLE APPA
ON PAGE
cued For Rele 14A . 91-00901 Ro00040 50001-1
A 29 March 1981. f j[j UUGI~
Candidates spar on
foreign policy
From Inquirer Wire Services
NEW YORK - The Middle East and
Central America were the dominant
issues in the presidential campaign
yesterday as the three Democratic
candidates prepared for a nationally
televised debate least night.
The debate came just six days be-
fore the New York primary, which,
with its 252 convention delegates, is
the biggest prize so far in the, topsy-
turvy race.
Walter F. Mondale, Sen. Gary Hart
and the Rev. Jesse Jackson were
in this nation's history in 'terms of A voice recited: "Sweetheart loans.
presidential leadership demanding Hidden financial deals. Abuse of
those who serve in high public office privilege. Secret gifts. Insider stock
to meet the highest standards of eth- trading. Mineral rights giveaways.
ics and commitment to public stew- Blacklists. Perjury. More scandal-
p . tainted officials than we've seen
ardshi
"We have had for. 36 months a since Richard Nixon and Watergate.
systematic message come out of This is moral leadership?"
Washington from the highest levels. Rep. Tony Coelho (D., Calif.), cam-
of public office, and that message is paign committee chairman, said the'
personal greed: Take what you can, collection of more than 50 cases of
however you can, in whatever way questionable conduct by Reagan
you can," he said. "I think it is time aides has "the potential of doing sig-
we had people serving in the public nificant damage to the President's
CBS television and moderated by
Dan Rather.
In campaigning since last Tues-
interest " _ __._ ~u uuauauauu aauvu ~ 4I1 .......yu
greed."
Hart called on Reagan to withdraw- "They believe that the profits of
f White House coup-
i
ti
h
on o
na
e nom
t
greed will trickle down," he said.
day's Connecticut primary, Hart has selor Edwin Meese 3d to be attorney Coelho said that the current inves-
called his landslide victory there a . general. Meese's nomination has tigation of Meese's finances and role
signal that "voters reject a foreign raised questions in Congress about
policy of continued military . pres- his .financial and other dealings. in receiving documents from the
ence in Central America, with the That theme of ethical misconduct 1980 Democratic campaign was a cat-
possibility of the loss of American was hit even harder by the Demo- alyst for the ad campaign, but that. he
lives." He contends that Mondale has ` cratic Party, which yesterday re- has harped on what Democrats call
year.
"missed the lesson of Vietnam" that leased a new television commercial The "the offisleazeciaalls pictured s for almost ai in n ta ad are
the U.S. cannot resolve foreign poll- depicting the Reagan administration T the h
Meese CIA director William J Casey
cy matters through military involve- as containing "more scandal-tainted
went. officials than we've seen since Rich-
Hours before the debate, Hart had and Nixon and Watergate."
a private meeting with French. Presi . White House spokesman Larry
dent Francois Mitterrand in New Speakes declined to repeat his chal-
York. The session was requested by lenge of last week that reporters
Mitterrand, who is wrapping up his compare misdeeds in the Reagan ad-
week-long visit to the United States. ministration with those of Its prede-
In a speech to a Wall Street audi cessors.
ence, Hart denounced the Reagan. The Democratic Congressional
administration as "one of the worst Campaign Committee showed an ad
opening with a color picture of Presi-
dent Reagan followed by black-and-
white "mug shots" of eight top offi-
cials.
former Veterans Administrator Rob-
ert Nimmo, former national security
adviser Richard V. Allen, former na-
tional security staff member Thomas
Reed, former Interior Secretary
James G. Watt, U.S. Information
Agency Director Charles Wick and
former toxic waste chief Rita La-
velle. A list of others is printed on
the screen over Reagan's- portrait
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ARTICLE APPEAR.
ON F.AGEr.,
NEW YORK DAILY NEWS
29 March 1984
S
Washington (News Bureau)-Congressional Democrats yesterday
unveiled a TV campaign commercial that seeks to exploit what
former Vice President Walter Mondale called "the sleaze factor" of
the Reagan administration.
The 30-second ad, which will be
aired only in the Washington area at
first, charges the- administration is
"riddled with scandal" while President
Reagan offers only part-time leader-
ship,
It reviews allegations about Attor-
ney General-designate Edwin Meese's
"sweetheart loans" and the misdeeds of
six of President Reagan's other aides,
and concludes: "More scandal-tainted
officials than we've seen since Richard
Nixon and Watergate. This is moral
leadership?"
Rep. Tony Coelho (D-Calif.), head of
the Democratic-Congressional Commit-
tee, said the "sleaze" ad was designed
to make Reagan accountable for the
actions of his subordinates. Reagan's
"is - an administration that worships
greed, whether you're talking about
the Reagan tax policy, the Reagan
budget policy or the Reagan ethics
policy," Coelho said.
COELHO SAID more than 50 admin.
istration officials had been charged
with official. misconduct, abuse of pri-
vilege, financial improprieties or other
types of unethical behavior.
In the ad, past and present adminis-
tration officials are _ shown in snap.
shots with their names listed under-
.. neath as an announcer recites allega-
tions against each. Besides Meese,
others mentioned in the ad include:
? CIA chief William Casey, whose
stock-trading, activities in 1982 and re-
fusal until recently to put his multimil-
lion-dollar holdings in a blind trust
have raised eyebrows.
? Richard V. Allen, former national
security adviser, who resigned after it
was disclosed he had accepted gifts of
watches and $1,000 in cash from
Japanese reporters and failed to
disclose them.
? Thomas Reed, who resigned from
the National Security Council after he
acknowledged he parlayed. a $3,125
investment into a $427,000 profit, re-
portedly because of illegal insider
stock trading.
? Charles Z. Wick, long-time friend
of Reagan and head. of the U.S. In-
formation Agency whose staff de-
veloped "blacklists" of liberals who
should not be allowed to speak or
appear in USIA programs overseas.
? Rita Lavelle, former Environmen-
tal Protection Agency official recently
.convicted of lying to Congress.
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A.TICLE APPEAE:":
ON PAGE__ A'-- / Lj
WASHINGTON POST
29 March 1984
nLE?NLY - d
em - ocrat-s' Attack
Administration for
iwshiping Greed'
By Ira R. Allen
United Press International
The Democrats yesterday
launched a broadside attack on an
administration that "worships
greed," releasing a new television
commercial depicting "more scandal-
tainted officials than we've seen
since Richard Nixon and Water-
gate." . - .
While White House spokesman
Larry Speakes declined to repeat his
challenge of last week that reporters
compare Reagan administration mis-
deeds with those of predecessors, the
Democratic Congressional Campaign
Committee showed an ad opening
with a color picture of President
Reagan followed by black-and-white
"mug shots" of eight top officials.
A voice recites: "Sweetheart loans.
Also in .New York, former vice
president Walter F. Mondale
charged that Reagan, more than any
other modern president, "has turned
his back" on_ the problems of work- I
ing people and ? the vulnerable. "If
you finally become hungry, he calls
you 'hustlers.' If you're homeless, it's
because you like it that way," he
said.
Rep. Tony Coelho (D-Calif.),
chairman of the- Democratic cam-
paign committee,. said the new ads
will start running this week, in 'the
Washington area,and will be placed
in various regions of the country. lat
He, said the -collection of more
than 50 cases of questionable con.
duct by Reagan aides has "the po-
tential of doing 'significant damage
to the president's reelection efforts
.. because his is an administration
that worships greed."
"They believe that the profits of
greed will trickle down," he said.
Coelho said -tbe investigation of
White. House counselor Edwin
.Meese 111's finances and role in the
theft of '1980 Democratic campaign
information was a catalyst for the ad
campaign, but that be has harped on
what Democrats call "the sleaze fac
tor" for almost a year. .
The officials pictured in the ad'
are Meese, CIA Direc r William J.
Casey, former Veterans Administra-
tor Robert Nimmo, former national"
security affairs adviser Richard V.
Allen, former national security staff
member Thomas Reed, former in--'
tenor secretary James G. Watt, U.S.
Information Agency Director Charles
Z. Wick and former toxic waste
cleanup chief Rita M. Lavelle.
A list of others' is printed on the 1
screen over Reagan's portrait: former
assistant agriculture secretary John
Crowell, former deputy commerce
secretary Guy Fiske, former Envi-
ronmental Protection Agency chief
Anne. M. Burford, former assistant'
secretary of state James Malone, for-
mer assistant housing and urban de-
velopment secretary Emanuel Savas,
former food and drug commissioner
Arthur Hull Hayes, former housing
and urban development secretary
Donald Hovde and former assistant
EPA chief James Sanderson.
Earlier, Speakes said he did not
know whether charges of improper
conduct would hurt the Republicans.
"It depends on what the Democrats
want to do with it," said Speakes,
who last week said the number of
cases is not "inordinate."
House Speaker Thomas P. (Tip)
O'Neill Jr. (D-Mass.) said, however,
"I would say -it's going to be an issue.
We're not trying to make it an issue.
The American people make the is=
sues"
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Hidden financial deals. Abuse of
privilege. Secret gifts. Insider stock
trading. Mineral rights giveaways.
Blacklists. Perjury. More scandal-
tainted officials than we've seen
since Richard Nixon and Watergate,
This is moral leadership?"
The announcement of the new ads,
coincided with similar attacks on the
administration from two of the three
candidates seeking the .1984 Dem-
ocratic presidential nomination.
Sen. Gary Hart (D-Colo.) picked
up the theme while campaigning in
New York. "We have had for 36 months a
systematic message come out , of
Washington from the highest levels
of public office and that message is
personal greed: Take what you can,
however you can, in whatever way
you -can," he said. He.added that the .
administration has been "one of the
worst in this nation's history" in the.
area of ethical conduct.
CBS EVENING NEWS
Approved For Release 200?t1YgBChCP91
CAMPAIGN '814/ PLANTE: This is political hardball. DEMOCRATIC PARTY
DEMOCRATS COMMERCIAL (Voice of Announcer): He said he'd bring a new
morality to government, but look at the list of charges.
(Photo: Edwin Meese) Sweetheart loans, (Photo: William
Casey) hidden financial deals, (Photo: Robert Nimmo)
abuse of privilege. (Photos: Richard Allen, Thomas Reed)
PLANTE: A new commercial from the Democrats, inspired by
Ed Meese's problems, trying to make ethics a campaign
issue in 1984 by attacking the Reagan administration's
record of appointments. VOICE OF ANNOUNCER: This is
moral leadership? Vote Democratic.
PLANTE: Gary Hart and Walter Mondale, fighting for the
chance to oppose Ronald Reagan, have both taken up the
issue when they haven't been battering each other. GARY
HART (Democratic Presidential Candidate): Day by day,
with every new scandal, the president pursues his policy
of making the world safe for hypocrisy. WALTER MONDALE
(Democratic Presidential Candidate): Almost every couple
of weeks, another rotten apple falls out of the tree, and
it's just, it's kind of what I call the 'sleeze factor'
that's going on here.
PLANTE: It isn't just Ed Meese. There are more than 40
Reagan administration appointees whose ethics have been
the subject of controversy. Those who have resigned
include Richard Allen, national security adviser, who said
he forgot to turn in gifts of cash; Anne Burford,
Environmental Protection administrator, who allegedly
played industry favorites in toxic. waste cleanup; Michael
*Cardena, Small Business administrator, for alleged
improper grants. He was later cleared. J. Lynn Helms,
Federal Aviation administrator, while under investigation
for improper business practices before he came to
government; Matthew *Geld, deputy director of the CIA,
because of stock deals before he took office; Rita
Lavelle, assistant administrator of the EPA, convicted of
perjury; Robert D. Nimmo, head of the Veterans
Administration, because of government funds used to
decorate his office; Thomas Reed, deputy at the National
Security Council, accused of insider stock. trading before
taking office; Paul Thayer, deputy secretary of defense,
who is fighting charges of insider stock trading. Other
Reagan appointees have remained in office following
allegations of improper conduct. William Casey, CIA
director, traded millions of dollars in stock while in
office, now has placed his assets in a blind trust.
Char es is U.S. Information Agency head, secretly taped
his telephone conversations for a time, at first denied
it; he later apologized. And now Ed Meese. Not that this
Continued
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ARTICLE E-PPEARED 'i'!1 I~ 1
ON PAGE_A WASHINGTON POST E ~
27 March 1984
James J. Kilpatrick
Meese s,
Hard-Luck
Story
It has become a truism in our town
that perception isn't everything. To
paraphrase a famous football coach, it's
become the only thing. There are times
when ,reality hardly matters, and that's
where we are right now in the tribula-
tions of presidential counselor Ed Meese.
A perception has grown that Meese, the
president's nominee for attorney general,
is a wheeler-dealer.
That perception, in my judgment, is
wrong. The reality, unless I am sorely
mistaken, is that Meese is an able and
decent human being, devoted to his
president, who has suffered unduly
from 1) a piece of hard luck and 2) an
oversight in filling out a certain form.
If reality governed our public affairs,
Meese ought to be speedily confirmed.
Absent the most compelling reasons, a
president-any president.-is entitled
to confirmation of his Cabinet nomi-
nees. But because perception counts so
heavily, my unhappy thought is that
Meese ought to withdraw his name. He
has become the fourth embarrassment
to the Reagan White House, and four
is too many.
The piece of hard' luck involved
Meese's heavily mortgaged home in
California. He put the house on the
market after the 1980 election, when it.
was apparent that he would be moving'
to. Washington, and the house didn't
sell. Meese is not a wealthy man. The
move strained all his resources. He had
to acquire a second home near the
capital. He ran 15 months behind in
payments on one house and four
months behind on the other. This
would have drawn little attention but
for one thing: two officials of the mort-
gage company got government jobs,
Edwin Gray became chairman of the
Federal Home Loan Bank Board, and
Gordon Luce served as an alternate.
delegate to the United Nations.
The oversight involved Meese's fail-
ure to report an interest-free loan of
$15,000 to his wife in 1980. The loan
came from Edwin Thomas, who later
was named regional director of the
General Services Administration in
San Francisco.
There were two other matters.
Meese borrowed $60,000 from a Cali-
fornia trust headed by John McKean.
The loan was unsecured; he paid no in-
terest on it for nearly two years. In July
1981 McKean was named to the board
of governors of the Postal Service. Sale
of Meese's house in California involved
an old friend, Thomas Barrack, who
ostensibly lost money on the deal. Bar-
rack wound up, with a job in the In-
terior Department.
This cynical city perceives a pattern.
No one has stopped to inquire if these
several appointees were qualified for
their positions. No one has bothered to
recall that in every political situation,
friends of friends naturally are pre-
ferred for patronage. This is the way
the system works. There is nothing
crooked about it.
I am not at all disturbed by the
loans and jobs. As for the undisclosed
loan to Ursula Meese, I find it hard to
understand why Meese failed to report
it, but 18 years in.Washington have
taught me something of the almost.un-
bearable strains of life at the highest
levels of the White House. It was a
mistake, but it was not a mistake of
sufficient magnitude to justify rejec-
tion of his nomination.
played
Nevertheless, games must be
by the rules, and politics is a body-con
tact sport. Reagan's administration. al-
ready has suffered from a CIA director
with a fondness for playing the market,
Ja ln8 anal_Kcuri_ director wife a
fault' memo of ten $100 bills, and an
attorne general, with an a e- m
rom of frien s in ornia.
The realities ma well be that Bill
Casey is a shrewd investor, thAt c
Allen y o erg t You
money" from)tea anew fiends, and
that W' am French Smith had earned
the generous payment, It is the percep-
tion that counts.
Reagan has enough heavy baggage to
carry into the coming campaign. He
surely does not need the burden of a
long and distasteful battle for confir-
mation of Ed Meese as attorney gen-
eral. It may be unfair-it surely will be
painful-but no wise man ever said
that life is fair. Step aside, Ed, and let
the president name a clean-as-
a-hound's-tooth nominee, such as Wil-
liam Webster of the FBI, in your place.
016B4. Universal PreaSyndicate
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-- ----- WASHINGTON-P-05T EQLC uEL
27 !4arch 1984
Officials' Limousines Encoun
By Howard Kurtz and Pete Earley
Washington Post Staff Writers
Attorney General William French
Smith's repayment of $11,000 for his
wife's use of a government limousine
puts him at the top of a growing list
of senior Reagan administration of-
ficials. who have run into problems
with one of the government's favor-
ite perks.
Defense Secretary Caspar W.
Weinberger and Treasury. Secretary
Donald T. Regan are among those
who have allowed their spouses to
use government cars for such person-
al reasons as trips to restaurants,
museums, luncheons, art galleries
and social events.
Cabinet officers are among the
190 federal officials who received
door-to-door chauffeur service to
their homes in 1982 at a cost of $3.4
million, according to a survey by
Sen. William Proxmire (D-Wis.), a
frequent critic of the practice. Hun-
dreds of other officials can call. on
their agency's carpool for official.
trips, but not for commuting.
"It's a real status symbol when an
official comes into his neighborhood
with a chauffeur and gets out of his
car," Proxmire has said. "When we
try to take the limousine away, they
just buck like steers. I think they'd
rather lose a billion-dollar program
than a limousine."
In addition to Smith, whose re-
payment was disclosed yesterday,
these officials have been criticized
for questionable 'use of government
carte
? Regan's wife, Ann, has used a
government car on 75 occasions over
a 20-month period, mostly for per-
sonal reasons..
According to government records,
Ann Regan's regular driver, James
Tippett, has picked her up at her
Virginia home or the Treasury
Building and taken her to such
places as the F Street Club, Ken-
nedy Center, Smithsonian Institu-
-VO
' tholes
tion, Corcoran Gallery, Woodrow
Wilson House, Dumbarton House,
Sulgrave Club, National Airport and
the Washington Hilton, Shoreham
and Mayflower hotels. On one after-
noon, the records -show, the driver
was instructed to' wait while Ann
Regan finished lunch at Maison
Blanche-
A Treasury Department spokes.
man said yesterday he did not know
whether Regan had repaid the'gov-
ernment for his wife's use of the car.
? Weinberger last year repaid
$205 after the. Federal Times dis-
closed that his wife and ether family
members made 20 trips in Pentagon-
cars over a six-month period to visit
libraries, tourist attractions and, in
one case, a beauty :parlor. Eleven
other defense officials had to repay
$386, including one official who had
a government car dispatched to pick
up his babysitter.
Donald L Hovde, while under-
secretary of the Housing and Urban
Development Department, repaid
$3,100 for improperly using a gov-
ernment car and driver to commute
from his McLean home and for per-
sonal errands.
Hovde's car and driver were used
to take his wife downtown, his neigh-
bors to the Kennedy Center, his
daughter to school and his parents
on a sightseeing trip to the Capitol.
Hovde, now a member of the Fed_
eral Home Loan Bank Board, also
used the Buick LeSabre to attend a
wedding, pick up a suit, visit his car
dealer, pick up laundry and dine at
private homes and restaurants. .
a Nancy Harvey Steorts, chairman
of the Consumer Product Safety
Commission, used a government
driver to take her on at least five
trips, to the. hairdresser, deposit
money in her bank, pick up dresses
and draperies at downtown stores
and drive her daughter to the White
House to visit friends, according to
the driver, Michael A. Hager, who -no
longer works for Steorta. Hager said
that friends also chipped in to buy
him a suit after Steorts ordered him
to get a chauffeur's uniform and hat
or risk being fired. Steorts declined
to comment at the time.
Former Veterans Administration
head Robert P. Nimmo repaid
$6,441 for using his chauffeur to
drive him to.and from his Virginia
home. He also-agreed to terminate a
$708-a-month lease for a 1982 Buick
Electra that he had requested in
place of the compact cars provided
for most agency, heads. The contro-
versy helped lead . to Nimmo's res-
ignation in 1982.
The busiest car, according to
Proxmire's 1982 surve was used. b
CIA- Director William J. ' Casey,
whose driver got $26,000 in overtiEnS
' pay on top of his $20,000 salary.
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WALL STREET JOURNAL
~" 1"Lc
Jt"; Ufa iproved For Release 26O15MR8193VA-RDP91-00
QR MEM..__.'
Medal, Man, Mission: Cherne and the Refugees
By JOSEPH P. DUGGAN
In a White House ceremony today,
President Reagan will honor 14 people with
the nation's highest civilian award, the
Medal of Freedom, Among the recipients
will be Leo Cherne: economist, sculptor,
whiz kid of industrial mobilization during
World War II, executive director of the
Research Institute of America, honorary
chairman of Freedom House and, for.the
past 30 years, chairman of the Interna-
tional Rescue Committee.
Mr. Cherne is a lion of courage and
commitment to human freedom, which is
another way of saying that he is unexcep-
tional. He is simply characteristic of the
thousands of brave and brilliant women
and men who have served in the IRC dur-
ing its half-century of operation.
The IRC was formed as America's re-
sponse to Albert Einstein's foresight in or-
ganizing aid for the first refugees from
Hitler's Germany. From its inception, the
IRC has been non-ideological and nonsec-
tarian. Its aims have been to recognize
major threats to life and liberty in various
parts of the world and to help victims of
persecution escape.
From the beginning,.IRC officials, even
field officers in war zones or under condi-
tions of severest political repression-in
Vichy France, for instance-have had to
contend not only with the menace of the
oppressors at hand but also with the deter-
mination of many victims not to believe
what was happening to them and around
them.
That was the experience of Varian Fry,
the young New York literary editor chosen
by the IRC in 1940 to assemble and operate
an underground railway for refugees
through Marseilles. Fry's activities, remi-
niscent of Raoul Wallenberg 's courageous
operations to rescue Jews in Budapest, are
described in Aaron Levenstein's "Escape
to Freedom: The Story of the International
Rescue Committee," Greenwood Press,
1983.
"Not the least of Fry's difficulties," Mr.
Levenstein writes, "was the unwillingness
of many among the refugees to believe the
Nazis would really descend to the ultimate
depths of inhumanity. The German Social
Democratic leaders Rudolph Breitscheid
and Rudolph Hilferding argued that their
world-wide reputations as political leaders.
in pre-Nazi Germany would protect them.
Repeatedly, they deferred their departure
despite Fry's anguished pleas. When sym-
pathetic Vichy police got word to Fry that
the Gestapo was coming for the two men,
they agreed to go. But it was too late-they
died in Nazi hands."
And the story has been repeated, in
Berlin, Phnom Penh, Kabul, Budapest and
Saigon, among other places. The will to
disbelieve in totalitarian evil has claimed
many victims. Despite this, the !RC has
performed some near-miracles of-massive
rescue.
For example, the committee operates
the Joint Voluntary Agency in coordination
with the American Embassy in Thailand,
processing refugees from Vietnam, Cam-
bodia and Laos who pass through Thailand
on their way to the U.S. Had it not been for
the public pleadings of Leo Cherne and
IRC Vice Chairman Bayard Rustin,
through their Citizens Commission on Indo-
chinese Refugees, the already belated
American response in 1980 to the Cambo-
dian holocaust and mass exodus might
have been delayed further; hundreds of
thousands more deaths might have oc-
curred. The Citizens Commission also
spoke out effectively against the'.sugges-
tion that some "boat people" were mere
"economic" immigrants and thus ineligi-
ble for asylum. Messrs. Cherne and Rustin
reminded the world of the 1980s that "eco-
nomic migrants" was a euphemism Hitler
used in his campaign to have the world
disbelieve the gravity of the plight of flee-
ing German Jews.
. Diplomats may have declared peace at
certain times and places during the past
haft century, but the IRC never has had
respite from the commitment toiy
tims of war, civil conflict, displacement-
andersecution. The IRC, in the person of
Mr. C erne, was present in Budapest dur-. I
fns the 1956 uprising; and when the Soviet
ilnion ? in 1968 invaded anot1e
"ally" -Czechoslovakia- Mr L31emg and
William J. Cas then the IRC's resident
% at entere at country and assessed
lie situ ioz-. Finally, they were stopped
by Soviet tanks outside Bratislava and
were 'ermitted" to drive back to Vi
enna.
Today, IRC medical units are aiding the
three million Afghan refugees in Pakistan.
Mr. Levenstein, the IRC's historian, is not
reluctant to describe the world refugee
rate as "communism's fever chart," but
the committee also aids victims of rightist
or ideologically indeterminate dictator-
ships. As sub-Saharan Africa has suffered
the various post-colonial pangs of tribal
conflict, home-grown tyranny and Marxist
revolution abetted by Cuban expeditionary
forces, the IRC has been on hand to aid
refugees.
The IRC is an organization, like the
United Nations High Commissioner for
Refugees, that wishes it could lose its rai-
son d'etre. But unless the coming decades
are an exception to the terrible patterns of
human pain that have marked our century,
the IRC will labor on, with laborers of the
character of the "unexceptional" Mr.
Cherne.
Mr. Duggan writes speeches for U.N.
Ambassador Jeane J. Kirkpatrick. For-
merly, he was Ambassador Kirkpatrick's
adviser on refugee affairs.
STAT
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ARTICLE APPS NEW YORK TIMES
ON PAGE__,.i -*Proved For Releas 29111 j/2 IA-RDP91-0090
? cepted by President Reagan in June
Haig Says He Urged Reagan and Foreign Policy," which
Pressure on Cubans will be published in a month by Mac-
millan. Time Magazine will publish the
first of two installments of excerpts on
Over'Salvador in' '81, Sunday.
By BERNARD GWERTZMAN
SpaiW to rim N*W yWkTLM"
WASHINGTON, March 24-Former
'Secretary of State Alexander M. Haig
Jr. says in his forthcoming memoirs
that he advocated bringing maximum
political, economic and military pres..
sure to bear on. Cuba in IM "to force"
,.the Issue early" in El Salvador, even if
It brought a Soviet response.
In excerpts from?the memoirs Mr
ministration, despite his lack of sup-
port, Mr. 'Haig nevertheless began a
highly publicized campaign to focus at.
tention on Cuban and Soviet support,
through Nicaragua, for insurgents in
El Salvador. He-said in the memoirs,
that this had the effect of alarming
Fidel Castro's Cuban Governraeat and i- ?,1 raised with him the question of
of leading to a brief tapering off in sup. ] transshipment of Soviet arms through
plies to the Salvadoran guerrillas. Nicaragua to the insurgents in El Sal-
Mr. Haig's point, which be makes in vador," Mr. Haig said. Mr. Dobrynin
the memoirs, and which he made pri-~ responded, "All lies," be said.
vately at the time, was that a mores ""Photographsdon't lie,4Ireplied."
Tce
fo fur l
d~
i
i
'
ev
trcefutness found no in the tuall-- ? mented that this was not the way to
support
Lo_ y approved, would have led to an; start a new relationship.
highest nOUncils of the R
eagan Admen- early resolution of the problem. "How) start a ne a asked, should the U.S. and
istration. He ? named Vice President. The memoirs contain sharp criticism + tbe Soviet Union begin to develop a din.
Bush, Defense Sereta* ;and unflattering remarks about almost`
;-logue?" Mr. Haig went on.
_rector of William J,~se~,,^ chy arlyfthe ate House ad- 41 "I said, It is not acceptable to talk
nectar of the C ti;il in ence visers,.Mr. Meese, Mr. Baker and Mr.peace while acting differently,' "Mr.
---
en and the senior t
H
d
'
s
n
u
stra
Lion poucy
instead 1 He said thaj -Mr:._ Dobrynin corn.
Haig said, however, that his call for of the modest program that was
I
o
s
-
ouse Deaver. The style is straightforv6?ard Haig said.
visers- Rdwin Meese 3d' J
a
Bke_r,~Iviichael Deaver?and, ichard
V. Allen, then the national security ad.
W~'?~j leL
_flazA."
"I:was virtually alone'in the other
camp,' which- favored giving military
and economic aid to E1.Salvador while i
bringing the overwhelmjng economic I
strength and political influence of the
U.S., together with the reality of its
military power, to bear on Cuba in
order to treat the problem at its
source," he said.,
1.11n my view that the potential strate-
gic gain - from this combination 'of
measures far outweighed the risks, and
that the U.S. could contain any Soviet
, countermeasures, I was isolated," he,,'
said: ! . _
Mr. Haig said the other top officials
were so copeer that c r
,
nam" would sap public support for tats 1 to.the most audacious ideas. I had to
m
'
Reagan Ad
inistration
s domestic,
program that the o - ,ed his_Prc.1
posaland preferred modest aid to to EI ,
Salvador and covert action in 'there.
.e_o_n_Ne was_not emlirit.inhic mc+m.'
oars on what specifjg options he hg_JXL+
minnd_towai d~Cuba.'
Mr. Haig, whose resignation was ac.
and terse. A publishing source said that Mr. Dobrynin, the memoir contin-
the book. had been ghost-written by ues, said that "it would be very unfor-
Charles McGarry, the author of "Tears tunate if the Soviet leadership formed
of Aiitumri"wandother novels dealing -the impression that'the Reagan Admin-
with espionage themes. istration was hostile to the U.S.S.R. be?
fS117CP ff,-~t
cynical action could even be consid-
ered."
Mr. Haig said be had told the group it
was a pledge of American honor to re-
turn the money. The President, he *said,
made no statement, just listened. In
the end, Mr. Reagan agreed that It
should be honored. -
The former. Secretary said he had
been so deeply worried about Commu-
nist subversion in Central America
that his first meeting with Anatoly F.
Dobrynin, the Soviet Ambassdor, was
~_~T "" `. '"' Mr. Haig said fie responded that the
meeting at the White House United States was not hostile, but "of-
hear that at a many of Mr. Reagan's aides
dwanted to cancel the agreement. that fended by -Soviet excesses." He said
had just been negotiated on returning that he constantly raised "our concernfrozen Iranian funds for the release of with Cuba's role as a Soviet proxy."
the American hostages in Iran. The hostages had been freed on Inaugura.
tion Day. .
"This amazing.proposition'won the
support of'many in the room," he said.
"Insofar as Jim Baker's reaction could
be interpreted, he appeared to be in
sympathy. So did Deaver, The Presi-.
dent did not seem to be surprised by.the 4
suggestion; evidently he was prepared,
in his remarkable equanimity
to listen i
STAB
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STAT
ASSOCIATED PRESS
Approved For Release 2005I1l/z2 a R4-'1 -00901 k4
MON'DALE SAYS THERE"S A 'SLEAZE FACTOR' IN REAGAN ADMINISTRATION
LOS ANGELES
k(@!
Walter Mondale, on a money-raising swing through through Southern California,
says there is a "sleaze factor" in President Reagan's administration and vows to
"establish a standard America can be proud of again."
"For nearly three years, almost every couple of weeks, another rotten apple
is falling out of a tree," Mondale said at a $100 per person fund-raising event
Wednesday night.
Buoyed by his Illinois Democratic presidential primary victory Tuesday over
rivals Sen. Gary Hart of Colorado and the Rev. Jesse Jackson, Mondale cited a
string of controversies surrounding Reagan's administration.
He listed last year's turmoil in the Environmental Protection Agency, the
.current furor over the nomination of presidential counselor Edwin Meese for
attorney general, the sale of federal lands at "fire-sale prices," and CIA
director William S. Casey's much-criticized ties to Wall Street.
"It's what I call the sleaze factor," he said. "The one thing that's
consistent is nothing but silence from the White House."
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Approved For Release 2Q05~17/2RGIrRDP91-009518000
MEESE
BY JUDI HASSON
WASHINGTON
The Justice Department began an investigation Monday into a $15,000
interest-free loan Edwin Meese failed to report, and a key Democratic senator
urged President Reagan to withdraw the ''tainted'' nomination of Meese as
attorney general.
"I believe the president would be better off if he solicited someone who was
not shrouded in controversy, " said Sen. Dennis DeConcini of Arizona, a moderate
Democratic rhember of the Republican-controlled Senate Judiciary Committee.
Deconcini spoke with reporters after meeting with Reagan at the White House
on another topic. When asked how badly Meese has been tainted, he replied, " I
wouldn't say tainted beyond repair, but tainted, yes.''
The senator also said Reagan has made ' 'some outstanding appointments," but
also has " made some lousy ones. "
'The ones who are lousy are usually shrouded in controversy, " DeConcini
said, citing CIA Director William Casey and Charles Wick, head of the U.S.
Information Agency
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Approved For Release 2 5 aMpl 1I 4 W OA
MEESE
BY JUDI HASSON
WASHINGTON
The Justice Department began an investigation Monday into a $15,000
interest-free loan Edwin Meese failed to report, and a key Democratic senator
urged President Reagan to withdraw the '' tainted " nomination of Meese as
attorney general.
''I believe the president would be better off if he solicited someone who was
not shrouded in controversy, " said Sen. Dennis DeConcini of Arizona, a moderate
Democratic ihember of the Republican-controlled Senate Judiciary Committee.
DeConcini spoke with reporters after meeting with Reagan at the White House
on another tbpic. When asked how badly Meese has been tainted, he replied, " I
wouldn't say tainted beyond repair, but tainted, yes."
The senator also said Reagan has made "some outstanding appointments, '' but
also has " made some lousy ones.
''The ones who are lousy are usually shrouded in controversy,'' DeConcini
said, citing CIA Director William Casey and Charles Wick, head of the U.S.
Information Agency.
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1 Mar hh~ ~~qq 44
of PAGE . OAptaroved For Release i00511~/28 : CIA-RDP91-00901
sde Look at those
E1te eiigious Groups
Their ranks are small, but a
handful of key societies count
as members some of the
most influential Americans.
While the Rev. Jerry Falwell's Moral
Majority draws most of the public atten-
tion, other religious groups are quietly
trying to influence the nation's elite.
Their names are unfamiliar to most
Americans-the Knights of Malta,
Opus Dei, Moral Re-Armament, the
Christian Reconstructionists. Yet their
principles, which include strict adher-
ence to Christian values, are the guid-
ing force in the lives of some of the
most powerful people in the U.S.
Despite coming from different
faiths, members share a common belief
that a small number of dedicated peo-
ple can indeed change the world.
Still, these groups aren't without
their detractors. Outsiders often ques-
tion the recruiting methods and veil of
secrecy surrounding some of these or-
ganizations. Critics contend, too, that
these societies are as much bastions of
conservative politics as they are
religious in nature.
Knights of Malta. a Roman
Catholic organization that dates
back to the time of the Cru-
sades when members fought
Moslems in the Holy Lan.
With headquarters in Rome,
the group is recognized by
some 40 countries as the
world's only landless sovereign
nation: In that role, the Knights
mint coins, print stamps and issue pass-
ports to their diplomats.
American network. The U.S. mem-
bership of about 1000-70 percent
men-accounts for one tenth of the
worldwide total. Nearly all are promi-
nent in business, government or profes-
sional life and include such well-known
figures as Chrysler Chairman Lee Ia-
cocca and Central Intelligence Agency
Director William Casey. At least two
U.S. senators also are members: Repub-
licans Jeremiah Denton of Alabama
and Pete Domenici of New Mexico.
Other members active in conserva-
tive politics include former Secretary
of State Alexander Haig, former Trea-
sury Secretary William Simon and col-
umnist William F. Buckley.
can branch is J. Peter Grace, chairman
of the W. R. Grace Company, which
provides a national focus for the orga-
nization by, including seven other
Knights on its board.
The main purpose of the Knights is to
honor distinguished Catholics and raise
money for charity, especially hospitals.
But the close personal ties among
members contribute to what some ob-
servers call a potent old-boy network of
influential decision makers dedicated
to thwarting Communism. The annual
induction ceremony for new members
at St. Patrick's Cathedral in New York
City is the only function of the U.S.
chapter open to nonmembers.
Because man Kni his and recipi-
ents Mtge order's honors have worked
in or around the CIA critics sometimes
suggest a link between the two. But
members eny any connection. nQ
a.t the attern of conservative m m-
ers with overseas ties em izr, natu-
rally from the order's role as an_inter-
national defender of the church.
Pope John Paul II also has praised the
work of the Knights in a special procla-
mation, just as he has another some-
times controversial group called Opus
Dei-Latin for "the work of God."
Founded in 1928 by a Spanish priest,
Josemaria Eseriva de Balaguer y Albas,
the group's central tenet is that all hu-
man work should be done "with the
greatest perfection possible" to "help
shape the world in a Christian manner."
By JAMES MANN with KATHLEEN PHILLIPS
EXCERPTED
STAT
The presideAj*r&vddifgbrsRetemte 2005/11/28 : CIA-RDP91-0090.1 R000400050001-1
STA
Approved For Release 2005/11/28 : CIA-RDP91-00901R00040005
ARTICLE AP
ON PAGE WASHINGTON POST FRE ONLY -jc,
16 March 1984
FitzGerald's Shamrock Shebang
;ByDonnie'Radcliffe Mondale scramble "good,-news for the Democrats"
Reprinted Aramyesterdey'slate editions ;because it promotes interest in the party and the is-
George McGovern came within an Irish country sues.
mile of endorsing Gary-Hart Wednesday -night-sort Asked whether he thought Gary Hart resembles
of. John F. Kennedy" or any of the Kennedys, the senator
"I know Gary," McGovern said of his old campaign snapped: "Well, I'm not going to talk about something
manager. "I think he'd make a good president." like that,"
Sen. Edward: M. Kennedy was more circumspect Besides the "Super Tuesday" talk, there was bier-
when it came.to such tWk:'I think we need new o ney about. Ireland-and the Irish. "This glittery occa
sion started out as a. very modest idea;" said Irish Am-
pie in this party people who are supporting Jesse bassador Tadhg,O'Sullivan. "We thought there'd be
Jackson
, Gary Hart, Fritz Mondale, George 'McGov
em,: any of the others" 30 to, 40 of the. taoiseach's rime minister close
McGovern was one of Wednesday night's. brightest friends, but we underestimated his friends." Those
stars at a gathering of Irish Americans for a sumptu friends included all of the .towns best-known Irish
ous dinner given by Irish Prime Minister Garret Fitz-. Clark, namw like ..Moynihan, Cochran, Casey, Donovan,
Gerald for'Vice'President Bush, who admits to being Clark, Kirkland; Shultz and Kissinger.
Texan but not Irish. One of the town s top. Irishmen, House Speaker
The former senator 'from *South Dakota, who Thomas- P. (Tip). O'Neill,, didn't make it. But here's
bowed out of the-race for. president early Wednesday what some who did had to say.
Kissinger: "My wife's north Irish and last
after coming in third in Tuesday's Massachusetts prr y Henry year I told FitzGerald's predecessor she was Irish, but
-mary, drew almost everyone s attention. Bush was one from the. wrong part. He said, `There is no wrong
of thefrrstto commend`McGovern on the race he ran; per;
"You look Eke it didn't hurt you any," Bush told hun. Barbara Bush::".Everybody's Irish at heart.e
'My God, you look in fightpig trim." Labor Secretary Ray Donovan, a third-generation
The way McGovern explained it later. "He said 1. Irishman: `"When we visit there, everybody seems to
handled myself with grace and dignity." look like us."
And as for how McGovern felt the night after the CIA Director William Case teasin 1 said Secre
night before: "I feel great I really do. You know, Ivey of fate George was "nisi lucky" to be
won a lot-of campaigns, but I never felt any better .marine ?to rn Irishwoman.
about the ones I won than I have this one. Shultz told of a trip to Ireland during the Nixon
"I said exactly what I . had on my mind--some administration and a stop at Dromoland Castle. A
bought it and some didn't. But it gives you a. good man taking them around asked Helena Shultz what
feeling to say what you think," said McGovern. her maiden name was. When she said OBrien, he said
"You can't come in second, third. or, fourth too, this was her ancestral home. "There must have been a
many times. without realizing you're not going to go hundred portraits of O'Brien hanging on the castle
the course. I made my statement, I got a fair hearing; walls," Shultz said. So after greeting FitzGerald here,
the press was kind to me, and I have no complaints." he told him on the way into town that his wife was
On his erstwhile campaign foe, Gary Hart, McGov- Irish. The prime minister, Shultz said, replied, "Gee,
em said, "I must say, he doesn't seem to have made .. that makes me feel badly. I'm only 6 any mistakes so far. He understands modern cam percent."
FitzGerald, who was accompanied c byhis wife,
paigning, knows what its all .about, and works well Joan,. later explained that his family name was Nor-
with the media"' man, that some of his family were Ulster Scots, some
Kennedy, one of several Kennedys in the crowd of were Germans and only a great-grandmother on his
about 250 at the Shoreham Hotel, Called the Hart- mother's side was Irish.
Approved For Release 2005/11/28 : CIA-RDP91-00901 R000400050001-1
S"TAl
Approved For Release 2005/11/28 : CIA-RDP91-00901R00040
ARTICLE APPEARED
ON PAGE
WASHINGTON POST
15 March 1984 '
-Casey Pushes CIA Aide
For Seat on U.S. Court
By Al Kamen
washtagron Post Stan wdkr
CIA Director 'Wiliam J. Casey has
asked President Reagan to nominate
CIA general counsel Stanley Sporkin
to a seat on the US. District Court
here, administration sources said
yesterday.:. _ - ,
In addition, Casey has either writ-
ten or called senior White House
and Justice.. Department officials
urging Sporkin's nomination to the
seat vacated earlier this year by
Judge June L Green, according to
one source. "Casey's - pushing him
hard,". that source said, adding that
Casey's efforts began more than a
month aga
A spokesman at the CIA said' nei-
;ther Casey..nor Sporkin, who has
.made no secret of his desire to be a
-
_federal judge, would comment.
Sporkin rose to prominence here
;as the' highly visible and often con
troversial head of enforcement at the
`.Securities and Exchange Commis-
.lion in the late .1970s before going to
the CIA to work for Casey, a long-
.: time friend.
The possibility of the 52-year-old
Sporkin's nomination to the federal.
:bench already has sparked a lobby-
-ing- campaign against him among
some detractors who criticize him for
being overzealous" in enforcing fed-
`- 'eral securities lawn.
One GOP attorney said yesterday
that he, was organizing opposition
- 'among GOP 'leaders in the business
and legal community who he hoped
would oppose the possible nomina-
`-tion because of Sporkin's ,enforce.
-.ment decisions. A Reagan transition
team report, reflecting some of the
opposition 'to Sporkin, had' recom-
mended that Sporkin be replaced.
Sporkin saved Casey from Water-
gate disaster in the early .1970s by
advising Casey, then SEC chairman,
to ignore. pressure from the Nixon
White House to head off the agen-
cy's investigation of Robert Vesco.
Sporkin was picked by Casey in
April 1981 to be the CIA's top legal
officer.
Sporkin, whose name .was synon-
ymous with tough securities law en-
forcement, waged. a . famous cam-
paign against questionable foreign
payments in the '.70s when some 600
companies made voluntary disclo-
sures rather than face criminal ac-
tion at a later time.
'His ''influence with' Casey :hag
made' him a key policymaker at the
agency, although at tunes he has
been criticized 'for -spending consid-
erable time defending Casey's per-
sonal business practices. -
The administration's. -screening
committee for potential candidates
for the federal bench is expected to
make a recommendation in a few
weeks for the opening.
- Other candidates for the judge=
ship include former assistant US. at-
torney Alexia. Morrison, 'who is now
in the enforcement division at the
SEC; Washington attorney Stephen
Trimble, and- D.C. Superior Court
Judge George E. Revercomb.
Although the White House has
been under considerable pressure as
the election approaches to appoint a
woman to replace Green, one in-
formed source said he doubted that
pressure would preclude nomination'
of a qualified male. - '
Sources would not say yesterday
whether Sporkin `was the leading
candidate for the job. One source
called Sporkin "a viable candidate."
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ARTICLE A3`PEAR.ED THE LISTENER (UK)
ON PAGE droved For Release MO?1M? 81` M-RDP91-00901R000400
Gavin Esler CIA mischief in Hawaii
.Investors ,lose a
forLune. in firm,
operated br the CIA
Gavin Esler tells the story of a CIA operation in Hawaii which could
serve as a storyline for an episode in Hawaii Five? 0, except that there is
no scope for its squarejawed hero., Police Chief Steve McGarrett, to
clandestinely to Taiwan. The story links
together three CIA station chiefs, an Ameri-
can four- and a three-star general and one of
the ten richest bankers in the world, a Fili-
pino called Enrique Zobel. On the sidelines
are 400 investors who provided the cover for
CIA ' operations and have now lost their
money.
Ron Rewald came to Hawaii in 1977, from
Milwaukee, Wisconsin, with. a bankruptcy
behind him and a conviction on a minor
charge. He had one qualification: in the 1960s
be. had played a minor role in illegal CIA
spying on American students involved in pro-
tests against the Vietnam War. By 1983 he
was being entertained by generals and CIA
station chiefs, running a fleet of limousines
and playing polo with sultans and princes.
The transformation began in 1978, when
Rewald and Wong set up Bishop Baldwin in
luxurious offices in the heart of Honolulu's
business district-Rewald even had an indoor
waterfall behind his desk. In a sworn affidavit
Rewald says that to complete the cover the
CIA wrote a phoney history for the company,
saying that it had operated in Hawaii since
ike any other upmarket financial
consultancy, the Hawaiian firm of Bishop,
Baldwin, Rewald, Dillingham and Wong had
a company photograph taken. In the front
row sit the chairman, Ron Rewald, and the
president Sunny Wong. Mr Bishop, Mr Bald-
win and Mr Dillingham are not in the picture
because they do not exist. These are what
Hawaiians call 'kamaaina' names-old-
established family names in the islands used
as part of the company name to give it spu-
rious credibility.
Bishop Baldwin, which collapsed into bank-
ruptcy last August, with 522 million of inves-
tors' money allegedly gone missing, could
have been a simple swindle: the chairman,
.Rewald, cheating naive investors. Instead, it
was a major CIA intelligence front-what
,CIA Central Cover Staff at headquarters in
Langley, Virginia, would call a 'proprietary'.
It was a functioning company of some 40 or
50 people engaged in legitimate business acti-
vities to provide a cover for around ten CIA
agents. How the operation fell apart and
come to be mistaken for a confidence trick is
a tale of lies and deceit which reveals how the
new CIA under its direc-
tor, William Casey,
operates, and how covert
operations are organised
not, as is widely
assumed, mainly through
American embassies, but
through private busi-
nesses.
Newsnight has un-
covered hundreds of
pages of documents and
tape-recordings relating
to Bishop Baldwin which
show how it was used to
spy on the President of
the Phil> oMedtE0Ir
high-technology plans
from Japan and sell arms
Jack Kindschi with Ron Rewald
'territory days'-before
Hawaii became the 50th
state in 1959. The CIA
also printed a false
degree certificate for
Rewald to hang on his
office wall, and ensured
he was listed as an 'old
boy' in university
records. Such was the
CIA fiction
but
inevit-
,
,
ably, the truth was even
stranger.
Bishop Baldwin's staff
sound like extras from a
motional literature as an Continued
Agar2pjvc FA~e 2005/11 /28 : CIA-RDP91-00901 RO
ON PAGEr, ,_..._
WASHINGTON TIMES
15 March 1984
Under Bill Casey,. the" 1A is
back in business
William J. Casey, a tall,
erudite man in his early
70s, has been director
of Central Intelligence
since the Reagan administration
took office. During the last three
years, it'has been a rare day that his
reputation and character have not
been attacked, sometimes from the
right, most often from the left.
The attacks have focused largely
on financial matters which oc-
curred long. before he took .his
present post and most recently. the
so-called "Briefingate" affair in-
volving Carter strategy documents
allegedly obtained by Reagan elec-
tion officials during the 1980 cam-
paign. While no crime has ever been
spelled out, ethical violations have
been charged. So Mr. Casey, who
enjoys Cabinet status, has been a
storm center since 1981, accused of
all manner of deviltry having to do
with everything except what kind
of director of Central Intelligence
he has been and how has intelli-
?gence, fared under his direction.
This short report, based on an
informal study, will argue that Mr.
Casey has done the best job of any
CIA director in the past decade. In
one sense, he took on the job at a
time when the prestige of the CIA
was so low there was no way to.go
but up. Mr. Casey's Predecessor,
Admiral Stansfield Turner, rightly
or wrongly, had a low opinion of the
agency he was assigned to adminis-
ter by President Carter. The United
States and its allies paid the price
of poor intelligence and, *most im-
portant, insufficient and even unre-
liable national estimates so essen-
tial for_ decision-making policy
executives. In addition, before Mr.
Turner's appointment, there had
been a revolving door sequence of
CIA directors - William Colby,
James Schlesinger and finally
George Bush, now vice president,
all in one year, an event hardly cal-
culated to restore confidence
within the organization.
Under Mr. Casey, a numberof im-
ARNOLD BEIC MIAN
poi;tant steps to rebuild U.S. intelli-
gence have been undertaken under
the continuing scrutiny. of two con-
gressional select committees on in-
telligence to which Mr. Casey must
report regularly, particularly about
any proposed covert actions ap- :
proved by the president. In other
words, CIA secrets must be shared
with sdme 30 congressmen in both
houses and their congressional
staffs, a risky but now legalized
procedure. Thus far, congressional
oversight has worked fairly well,
according to all reports. Whether
the accountability system will con-
tinue to work in future congresses
as the composition of the Select
Committees, changes, is another
matter.
..Under Mr. Casey, the intelligence
budget "has gone way the hell up;'
as one knowledgeable source puts
it. In fact, the overall total for intel-
ligence is at the highest level it has
ever been, having risen steadily
each of the past three years. Since
the budgetary totals are classified,
no statistical comparisons can be
made. However, to have been able to
obtain increased appropriations
means that Lhe-congressional go-m-_
mittees are sufficiently satisfied
with CIA activities.
Second, the CIA is back in the
covert-action business, an area
from which it had virtually with-
drawn during the Turner.
directorship. Covert. action is a
form of. intelligence activity in-
tended to effectuate by secret
means the aims of U.S. foreign
policy. Overt action encompasses
diplomatic activity' and negoti-
ations and, when these break down,
war itself. An example of covert ac-
tion would occur if Britain, tar-
geted by Libyan terrorists, were to
seek out and support Libyan exile
dissidents in order to help over-
throw the directing genius of con-
Third, there has been a large
increase in the number of national
estimates sent to intelligence con-
sumers, from the president on
down. The whole point of
intelligence-gathering clandes-
tine collection and covert action -
is to put together the information
collected in some logical order so
that recommendations for actions
can be made and meaningful policy
decisions undertaken. Analysis and
estimates are the third - and per-
haps most crucial - ingredient of
an intelligence system.
Fourth, there has been a massive
attempt to rebuild human intelli-
gence - HUMINT - resources. In
the pre-Casey period, great reli-
ance was placed on ELINT - elec-
tronic intelligence-gathering by
"spy-in-the-sky" technology. While
much of the instrumentation is in-
genious and even startling in its
capabilities, the instruments them-
selves lack one essential attribute:
They cannot look inside a man's
head - say, a member of the Soviet
Politburo - to determine what. So-
viet policymakers plan to do.
HUMINT was once part of the an-
swer and it is now being restored to
its essential place in -the. intelli-
gence panoply.
Fifth, an attempt has been made
to rebuild the last and perhaps the
most important ingredient in the in-
telligenre schema - counterintel-
ligence.' This ingredient is the
guard set up by any intelligence
agency to prevent the enemy
"mole or even the double agent,
from penetrating the inner sanc-
tum.
Kim Philby, the British-born So-
viet agent, ran British counter-
intelligence until he became
suspect and resigned. Therefore,
during the time he was in charge of
British CI, British intelligence ex-
isted only in name. The various con-
gressional investigations of CIA
.and their repercussions within CIA
during the mid-1970s led to a
wholesale dismantling of Cl a dec-
temporary terrorism, Libya's dicta ade ago. Whether or not CI hasbeen
tor, Col. Muammar Qadaffi. successfully rebuilt, no one can
Approved For Release 2005/11/28 : CIA-RDP91-00901R000400050001-1 ConbnuEo
ARTICLE APPEARED rr
Q1Y PAGE For Relef ~: `CR rR )91-00901 R000
Gavin Esler CIA mischief in Hawaii
Investors lose a
fortune in firm
operated by the CIA
Gavin Esler tells the story of a CIA operation in Hawaii which could
serve as a storyline for an episode in Hawaii Five-O, except that there is '
no scope for its square-jawed hero, Police Chief Steve McGarrett, to
make everything all right.
ike any other upmarket financial
consultancy, the Hawaiian firm of Bishop,
Baldwin, Rewald, Dillingham and Wong had
a company photograph taken. In the front
row sit the chairman. Ron Rewald, and the
president Sunny Wong. Mr Bishop, Mr Bald-
win and Mr Dillingham are not in the picture
because they do not exist. These are what
Hawaiians call 'kamaairna' names-old-
established family names in the islands used
as part of the company name to give it spu-
rious credibility.
Bishop Baldwin, which collapsed into bank-
ruptcy last August, with $22 million of inves-
tors' money allegedly gone missing, could
have been a simple swindle: the chairman,
Rewald, cheating naive investors. Instead, it
was a major CIA intelligence front-what
CIA Central Cover Staff at headquarters in
Langley, Virginia, would call a 'proprietary'.
It was a functioning company of some 40 or
50 people engaged in legitimate business acti-
vities to provide a cover for around ten CIA
agents. How the operation fell apart and
come to be mistaken for a confidence trick is
a tale of lies and deceit which reveals how the
new CIA under its direc-
tor, William Casey,
operates, and how covert
operations are organised
not, as is widely
assumed, mainly through
American embassies, but
through private busi-
nesses.
Newsnight has
covered hundreds of
pages of documents and
tape-recordings relating
to Bishop Baldwin which
show how it was used to
spy on the President of
the Philippines. steal
high-technology plans
from Japan and sell arms
Approved
'territory days'-before
Hawaii became the 50th
state in 1959. The' CIA
also printed a false
degree certificate for
Rewald to hang on his
office wall, and ensured
he was listed as an 'old
boy' in university
records. Such was the
CIA fiction, but, inevit-
ably. the truth was even
stranger.
Bishop Baldwin's staff
sound like extras-from a
James Bond film. Jack
Kindschi. listed in pro-
motional literature as an
Jack Kindschl with Ron Rewald 'outstanding consultant'.,
For Release 2005/11/28 : CIA-RDP91-00901R000400050001-
clandestinely to Taiwan. The story links
together three CIA station chiefs, an Ameri-
can four- and a three-star general and one of
the ten richest bankers in the world, a Fili-
pino called Enrique Zobel. On the sidelines
are 400 investors who provided the cover for
CIA operations and have now lost their
money.
Ron Rewald came to Hawaii in 1977, from
Milwaukee, Wisconsin, with, a bankruptcy
behind him and a conviction on a minor
charge. He had one qualification: in the 1960s
he had played a minor role in illegal CIA
spying on American students involved in pro-
tests against the Vietnam War. By 1983 he
was being entertained by generals and CIA
station chiefs, running a fleet of limousines
and playing polo with sultans and princes.
The transformation began in 1978, when
Rewald and Wong set up Bishop Baldwin in
luxurious offices in the heart of Honolulu's
business district-Rewald even had an indoor
waterfall behind his desk. In a sworn affidavit
Rewald says that to complete the cover the
CIA wrote a phoney history for the company,
saying that it had operated in Hawaii since
tinned
STM
Y
Approved For ReleaseA3g0j8TtS)bA-I.M'#.0901 R0004
13 March 198+
NICARAGUA/ JENNINGS: Some other'news now. President Reagan may get
U.S. his way on aid to those forces fighting the government of
Nicaragua. The Senate Intelligence Committee today got a
closed-door briefing from CIA Director William Casey and
then voted to approve $21 million in emergency aid for the
contras.
Approved For Release 2005/11/28 : CIA-RDP91-00901 R000400050001-1
Ap. Fe 2005/11 /28 : CIA-RDP91-00901 R
AFpareiit Bunllng Bo
By Joanne 0mang .
w.mll Latln iuci neque
Washington Post Staff Writer
The Reagan administration appeared to,
bungle its Central American policy so badly
on Capitol Hill last week that : both critics
a clever plot.
With the track record of victory this
White House has on the budget, on unpop-
ular program cuts, on so many things, they
say, it just could not be that inept? tunding through a -legislative:loophole, said a
Admittedly, this was only a tactical skir- moderate Republican member of Congress
mish, but. the way it was handled bodes ill who is an administration critic on this issue
.
for inioortoat battles scheduled this week The loophole would allow up to $250 mil - .
over the administration's request for $1.2 lion in military aid to be provided upon a
billion in economic and military aid to the presidential declaration of crisis, with no re.
region, according to key Republican& payment required for 120 d
"That's no emergency..They're,
just afraid they won't get another
nickel after the elections," said a key
liberal Senate aide.
If right-wing former major Rober-
to D'Aubuisson is elected president,
the aide said, members of Congress
ays _ -who believe D'Aubuisson is linked to
It was a total rout: the Senate Approort- Those citing political motives noted that death squads are likely- to move to.
ations Committee, controlled by Republi. last week President Reagan said it-would not- -'cut off all aid immediately: But, the
cans,, refused President Reagan's personal be "responsible" to .vote against his -aid re- t:.-source added, if D'Aubuisson's chief
request to tack $21 million for rebels in Nic- quests, and Defense` Undersecretary.Fred C. rival, . former President Napoleon`
aragua onto one bill and postponed 'until Ikle warned that an aid cutoff would unleash-Duarte, is elected,"stiff 'right-wing Tuesday his request to add $93 million for a bloodbath... by El Salvador's right-wing
EI Salvador to another. death squads:.' ;.-opposition to him -could' lead to $:
Nobody in the administration thought to 'State Department officials, asked what in an aid coup..Lhat could also result
id cutoff.
notify the chairmen of three vitally con they -would do if?Congress refused to coop- "
-
... F if}har way tha alw, inn manna'-.
cerned committees, two of them friendly Re-
publicans, until the day before the vote.-No
body lined up the usual allies, and the whole ?
thing looked like a sneak end-run play. The
reaction, especially from Republicans, was;
amazingly blunt.
ground (in Central America) in 31/2 years ' `. But only $11 million of the pco-:
and so they come up here with a wacko idea posed $9$ million emergency aid is'
the
k
ill b
y
now w
omb, and Reagan can then . for ammunition and $16 million for
go into the elections saying the policy failure. spare parts, according to aState De- -
is all the fault of Congress," a liberal Senate partment fact sheet for Senate mem
committee staff opponent theorized. -
i bers.'he rest is for new helicopters,:
Nnw they can
press
ddi
d
.
a
tional.-braining an
troop ma-
and it
and it didn'twork, so they can go ahead with -