SECRECY NEEDED BY CIA IF IT IS TO FULFILL ITS DUTY

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP91-00901R000400190004-3
• Release Decision: RIPPUB
• Original Classification: K
• Document Page Count: 23
• Document Creation Date: December 19, 2016
• Document Release Date: November 15, 2005
• Sequence Number: 4
• Publication Date: June 27, 1981
• Content Type: NSPR

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01,1AIIA
27 June 1981 ?
Siecrey Needed by CIA -
If It LS to Full " its uuty
William Casey, the new director e.
the Central Intelligence Agency, be-
lieves too much reliance is being placed
on satellites and other electronic means
of gathering information.
This data is useful; an intelligence
expert said to the Wall Street Journal,
but it "isn't going, to tell you what
peopleare thinking."
He and Casey ? who was a World
War II OSS 'operative ? reportedly
aEree that what is needed are more
human spies on the ground. So one of
Casey's goals will be to strengthen the.
CIA spy network.overseas.
? Casey also would like to. have the
CIA be more closed-mouthed about
what it is doing. There wifl be fewer
background briefings for reporters, for
example.
This appears to be logical. The CIA's
job is to keep our highest officials
aware of what is going on behind the
scenes around the world. And to do this,
spies ? let's call them that with all of
the connotations, both unsavory and
glamorous ? are needed'. For the spies
to function best, they must operate in
secrecy.
So it will be difficult, if?not impossi-
ble in the short range, for the public to
. judge whether Casey's agents are doing
their job well or not.
However, two recent incidents serve
as reminders that the CIA and its men
on the ground are very, much prime
topics for discussion in foreign capi-
tals.
. *
A report by Henry Bradsher of the
Washington Star tells of CIA assistance
to Indonesian commandos who stormed
a hijacked airliner in Bangkok and res-
cued 55 hotages.
Technical advice and some equip-
ment were reportedly furnished by CIA
?
agents assigned to the U.S. Embassy in
Bangkok. But the CIA did not partici-
pate in the actual assault, unnamed ad-
?
ministration officials said.
. * ? .
Meanwhile, in Zambia, the CIA's
image was less shiny. Two American
diplomats were expelled for alleged
CIA activity. The Zambian government
hinted that they were involved in exam-
ining "the possibility of an alternative
leadership in the country" to replace
President Kenneth Kaunda. The State
Department, of course, denied. every-
thing.
News, both good and bad, about the
CIA will continue to pop up. despite
Casey's desire to hold it down.
But what is really important is
whether he can succeed in bolstering
the underground network of spies so
that Washington receives a flow Of ac-
curate intelligence.
The success or failure of some of the
most, critical decisions to be made by
President Reagan and the men closest
around him will depend to a great
extent on the quality of Casey's reports.
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Approved For Release 2006/02/07: CIA-RDP91-00901
ARTICLE APPEARED
ON PAGE_L---A THE WALL STREET JOURNAL
26 June 1981
New C.1.4 Spyrna' ster
Is Likely to Become
Legend nHis Time
-
'Street Fighter --Max Hugel,
Arouses. Strong TFeelings
Amon k Regan Associates
By JAMES' .M....'PE'eRY
Staif RePorter of Trii WAtt. EV? JOtT1414,a.-
WASHINGTON-It' happened on a blus-
'terry day at the airport. A"-random gust of
wind lifted Reagan .campaign director Wil-
liam Casey's: hat and sent it.skimming down
the sidewalk. His' loyal deputy. Max Hugel,
scurried after it. A second random- gust then
lifted Mr. Hugel's thupee-and sent it skim-
ming after Mr: Casey'S
Veterans of Ronald Reaga.n's presidential
campaign, some of whom witneSsed the inci-
dent, cherish the memory: ? ' ?
Now, Mr. Casey, 6$ years oldels the di-
rectors Of the Central Intelligence Agency
and is dedicated to putting it back in the
cloak-and-dagger business:-And Mr. Hugel,
56, is his "spymaster" (officially, deputy di-
rector of operations4,:the man symbolically
wrapped in the cloak and -armed with the
dagger: '
"Little Street Fightee,o,
' Many of the tough professionals who ram
Mr. R.eagan's -campaign-they amourit to
something of an old -boys', network-say they
are shocked. The problem isn't Mr: Casey so
much: Although he? was- eased out of the
campaign and although he ,mumbleseand
sometimes eeeths fergetful, _they retain*
grudging admiration for hide The big con-
cern is Mr. HUgel, who was put ha charge of
the spies last.. montheeelgax-Hugel (pro-
nounced Hugh-GELL.);:;-------;1;the :tough littl
street fighter- frorn BrrioklYn,"'-as one
mirer calls him-is, the ?man who may be
asked to topple goVernments or..fight clan-
destine wars..
"Putting Max' that- job," 'says one of
the old pros (they won't..discuss?Mr. Hugel
on the record), ."1,s, like' making me; Secte:
tary of State." . :
Every ?presidential _campaign produces
its own cast of characters. Some of thein-
John Kennedy's Larry O'Brien or RI
Nixon's John Mitchell, for example-become
legends, in different: ways,: in their own
time. For the Reagan campaign, a living
legend is Max Hugel.
No one is neutral about Mr Huge!. ?
"That little fella is d semerb organizer,"
says his good friend William Loeb, the ultra-.
conservative pub-
usher, of the Man-
chester ' ?'-' (N.H.)
Union Leader._ Mr.
Loeb? In a sighed
frimtepage f article,
suggested Mr. Hugel
practically, won the
election single-hand-
edly.: ?He 7, was the
'.:rnan with'. the an-
swerse":- Mr: Loeb p
Wrote,L7:',., _ f
"He's ardynamiit
guy.".:, agrees his old
:boss, Robert How-
ard, the chairman of
Centronics:: . Data ' Ma:cr./Wel
'Computer Corp. Hudson, N.H; ?
On the other hand; -:. . '-'? '
"He's a little guy vrith a Napoleonic caine
plex," says one of his bosses in the cam-
: paigi-Another campaign veteran says he ie
,"a man with no people skills, no political
skill' and absolutely no
When Stuart Spencer, a tap Reagan am
pain- official, heard ,Mr. :Hugel had been
named the spymaSter, he eskederDoes the
White House know about this?" ? -
Just who is this Max Hugel? ??.
_air. Hugel himself isn't talking. Spymai-
ters don't normally give interviews. And the
written record isn't very complete. He grad-
uated, for.example, from the University of
Michigan. in 1953, but his hame appears nro-
where in the class yearbook: The university
says he majored in Oriental languages and
literature; his official CIA biography says
he studied Oriental economics. - ? .
Publisher Loeb knows as much about
him as anybody seems to. He has spent
hours talking to Mr. Hugel; and during the
,campaign he received .a long letter from
him almost every. day. Some of the letters
ran to :10 pages, canepaigneassociates
say; euee.
' .:".What I like. about Max7,says Mr; Loeb,
that he's a JeWish kid from. Brooklyn_
He's a tough little street fighter." ::??? ?=r7
? - That's , probably one. of the, reasons Mr.
Casey likes him. tooe foreMr..Casey is- a
tough (Irish) kid from-New-York. Mr. Hugel
first attended Brooklyn College; Mr. Casey
went to Fordham University. Both are self-
made men; both built personal fortunes.
Mr. Loeb- tells the story: of Mr. Hugel,
who is barely over five feet-tall, entering the
? Army in 1943.- "He was such- a little guy;"
says the publisher. "His helmet* fell down
over his ears; and he couldn't see out Of his
foxhole:"--Mr. lacteb says_ Mr. Hugel. figured
?
000400190004-3
.. .....-
heihad . to. find something more suitable; Si
/vl:...Hugel took Japanese lessons for two
weeks and let the Army know he was profi-
cient in, that highly prized skill. . - . ? - '.
',One 'day," says Mr. Loeb, ."this limou-
sine pulled up at Max's infantry camp, and
a big man leaned out the window and yelled,
. 'Come here,. Pvt. Hugel!' He took Max to a
hotel ...ire'r.Atlanta; : grilled him ? on what he
laikvi inalapariese, concluded he didn't know
mach; but still sent him to the University of
adchigamto learn more -. - -
' *From, Michigan,: Mr. -Hugel went to...pie
;Philippines and Japan, working for Army in;
teliigence and counterintelligence. After the
war; he-went back to Michigan to earn his
degree:, Then he returned to Japan to make
. h4.. fortune. His CIA biography says he
founded.a company-that was the first to ex-
pia. bloOd plasma to the U.S. He later. be-
came: asociated with Japan's Brother in-
dustries, a maker of sewing machines and,.
'eventually, typewriters.... . . ' -. - ?,-. -;
-.
He ultimately sold his interest in brother
:fo-3-the Centronics stock owned by the Jape-
.neSe company, and he joined Centronics as
its executive. vice:, presidenta,?."lie made a
foittine," Mr. Loeb says. - . ?., . ?
;C:eiitTonics's chairman, Mr. Howard,- de-
niesrstories that Mr.-Hugel was fired. He did'
great:- things.- for Centronics.' Mr. Howard
says; arid I'd. love. to. have him back." But
Mr.':-Howard: believes Mr. Hugel became
.bored e - e - .... :-........e.e...,._ , .._,..-e_e- -- 1
-"I' got- a-call ' front --lehn :one-day," Mr.
.Loeb recalls. tl-le. said he wanted.to become
:active in - the Reagan" primary campaign
-(then .floundering: against George Bush in
;New Hampshire)..1: gave, his name to the
:Reagan state chairman,. and the next thing I
. knew Max was running the .Nashua cam-
paign .." 4-,-; e....-' a-1-.e
-.-._ ifi.r.- Loeb says it Was thanki to-Mr-.Hu;?
!gel's leadership that Mr. Reagan carried ev-
: ery- ward in Nashua. Others say. Mr. .Hugel
f wasn't that helpful and that he.vrai more in-
terested in writing policy papers:for the na-
tional campaign. What really .turned Nashua.
i around, they say,- was Mr. Bush's inept per-
forrnance in ?the celebrated--- 'debate , in
!-:Nashua. with Mr:- Reagan. ;-': r'".."-4-'- ? :.?,- - :
Mr. Loeb says he recommended Mr. Hu-.
gel to Mr. Reagan "and from there he went!
on to the President's national staff."- -- -- ; --
In every campaign there is a division
' called "citizens" or "voter blOcs", or what-
ever. "It's where the campaign puts all the
stiffs," says. one .of the Reagan pros. That's
where Mr. Hugel was put. He signed his let-
ters "National Director, Voter Groups," al-
1 though- the- official table ? .of organization
'listed him -as -','executive director."
_ ,,,The trouble ias that Elizabeth Dole, the
wife of GOP Sen. Robert Dole and apolitical
Approved Por Release 2006/02/07 : CIA-RDP91-00901R00 NM right, vias brought?hi over
Ir. '144!i',?:4..:4 Es:began to go ' Clowihill
II I
when, at a campaign meeting, Mr. Hugel la-
Yo4uce4,1141ak.his .secrett117.1.-Sh
2bA1
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ARTICLE APPEARED mt. WASHINGTON POST
A-1-1 .(Annapolis ? Edition)
DN PAGE 26 June 1981
?
? ? ? : ti ? ?
CIA Alores to Reflize Press,. Public Cortfrict.
The Central Intelligeie. .. In March, Cwey. ordered ra halt
-:-cy, in another action Teducing a.m.*: to ,the. pri
actca of prIigccca
tact with the press, and-public, will
existink,Office lariegngs-t--0
PubLcAffmardrcpacztwittU ttle MP:is
an oftce furthii; (169irt".::in txc up 4 lot of --oon't:7'
hureaUcraCy."1.1Y4';',ziot
direCtor: of the:*public:ar:S. r:' :
.f,faira'iOlce for the past fotir
'Captahr Herbert'. E. ??'? saY
Hetu, will also be.. leaving ; the -; tent ptibhc affair's OtTc "
e-
.!1,agen9r* as...1.al. of the reorganize' oE,ca of the leeSlative
with the decisionof GIA:Thredor DOW kiu .?
Casey'.. to downgrade '-:garazed. as branches of i!pe;;:'..af-
the position and role ofthe office. ::..fice of policy s41 plannicg
.4,
??Ajg.
?
?
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t/h/dg
Approved For Release 200
1R000400190004-3
from
Number 3
This week I have made two organizational changes which will bear
importantly on the improvement of national estimates, on the
administration of CIA and on our relationships with the media,
Congress and other elements of the government.
? THE NATIONAL INTELLIGENCE COUNCIL (MC)
For intelligence to play its crucial role as policy is formulated, our
work roust be relevant to the issues at hand and it must be timely.
There have been shortcomings for some time in this relating of
intelligence efforts and activities to the policy process. Moreover,
the process of preparing national intelligence estimates has become
slow, cumbersome and inconsistent with providing the
policymaker with a timely, crisp forecast that incorporates clearly
defined alternative views.
To correct this situation, I am restructuring the role of the National
Intelligence Officers (NI0s) and the procedures for having the Na-
tional Foreign Intelligence Board and it members make their in-
puts to national estimates. The NiOs, constituting jointly the Na-
tional Intelligence Council, henceforth will report directly to the
DCI and DDCL The Chairman of the NIC will function as chief of
staff in directing and coordinating the work of the N10s. The NIOs
will continue to be the DCI's principal representatives in policy
forums, and will continue to support the DCI in his role as member
of the the NSC and the DDC{ as Intelligence Community repre-
sentative to the Senior. Interdepartmental Groups (SIGs)?working
through the Director of NFAC for analytical support and -
assistance.
The National Foreign Assessment Center (NFAC) ?vill continue to
? be the. analytical arm of CIA and the DCI and carry primary
responsibility for the production Of finished foreign intelligence.
;.;
2bA1
25X1
OFFICE OF POLICY AND PLANNING
I have decided that organizational changes are needed to improve
Agency-wide administration and to shift direction in certain areas
now that the difficulties of the past decade are behind us. These
changes will reduce staff positions and return a number of intel-
ligence officers to the collection and production of intelligence.
I am establishing the Office of Policy and Planning to ensure that
plans and policies submitted for DCl/DDC1 consideration are
consistent with Agency-wide objectives and priorities and that they
are reviewed in the context of overall Agency needs. The Office
will further develop and coordinate CIA's long-range planning ef-
fort, review materials submitted to the DCl/DDC[ that concern
Agency administration, personnel, analytical operations and exter-
nal affairs policies, and coordinate preparation of briefing papers
for the DCI and DDCI for MSC and SIG meetings as well as meet-
ings with heads of other agencies. The Office of Policy and Plan-
ning also will centralize in the immediate office of the DCl/DDCI
responsibility for all external affairs, including interdepartmental
relations, liaison with the Congress and public affairs.
With respect to external affairs, the Office of Legislative Counsel
and the Office of Public Affairs were created at a time when the
Agency was still encountering considerable criticism in the media
and in the Congress and when it was important to expend consider-
able effort to explain the Agency's mission, to justify our activities
and to defend the quality of our work. The magnitude of effort
devoted to these purposes has significantly decreased, and I believe ,
the time has come for CIA to return to its more traditional low
public profile and a leaner?but no less effective?presence on
Capitol Hill. Our emphasis from now on should be to maintain and
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Approved For Release 2006/02/07 : CIA-RDP91-00901R000400190004-3
enhance CIA's reputation not by representational activities but by
the excellence of our work and the high quality of our contribu-
tion.
Because Agency contacts with the media and with Congress in
most instances involve important, Agency-wide equities, I have de-
cided to keep these two liaison functions in the Office of the Direc-
tor and to place them organizationally so that Admiral Inman and I
can work with them even more closely than in the past. ?Accord-
ingly, the Office of Policy and Planning will include an External
Affairs Staff consisting of two branches. The Legislative Liaison ?
Branch will serve as the focal point for liaison with the Congress. It
also will direct the handling of congressional correspondence and
inquiries and will arrange briefing teams to provide substantive
finished intelligence or other information to congressional request-
ers. The Legislative Division of OLC will be transferred to the
Office of General Counsel. The Public Affairs Branch will be
? responsible for Agency liaison with the media. It will respond to
inquiries from the public about the Agency and arrange for public
presentations, as appropriate, on the role and mission of the
Agency. It will provide staff support for the Publications Review
Board.
I have asked Robert M. Gates, a career Agency employee who is
. presently Director, DCl/DDCI Executive Staff, to become Direc-
tor of the Office of Policy and Planning. Mr. Gates brings to this
position a wide range of experience in intelligence and 'policy,
including assignments as National Intelligence Officer for the So-
viet Union, Executive Assistant to DCI-Turner, and member of the
National Security Staff during the Nixon, Ford, and Carter
Administrations.
The names of the Chairman of the National Intelligence Council
and the Chief of the External Affairs Staff of the Office of Policy
and Planning will be announced at a later date.
William J. Casey
Director .
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-Approved For Release 2006/02/07 : CIA-RDP91-00901R00040
PHILADELPHIA BULLETIN
213 June 1981
ING iT BRIEFLY
25X1
0190004-3
Maser spy' lacks exPerience
WASHINGTON ?When CIA.Di rector 1.Villiarn Casey
appointed his old frientieltrrettrftetas the agency's chief'
spy, it sent shock waves of disbelief through the
intelligence community.
"It was like bringing in a chief of naval operations who
has never been in the Navy," said a- former high-level
CIA official who has joined the exodus of top-flight talent
from the agency in the last several years. , ?;
Originally, Casey appointed the 56-year-old Hugel last
Feb. 13 as deputy director of administration ?a move.
that sent tremors through the CIA because of Hugel's
complete lack of experience in modem intelligence worke
Then, early last month, Casey stunned intelligence
officials by appointing Hugel director of operations, a
post perhaps second in importance to that of the CIA
directorship itself. Even the White House was caught by
surprise, having been bypassed in the usual ptilitical
clearance procedures, ? - ,??? ? ?? ?
What Casey had done waS to-place Hugel e-;.who made
millions after World War II by exporting sewing
machines? in charge of the United States,'. clandestine
operations: ? ??
?
Up to that point; intelligence sources say, ( asey had
made some shrewd decisions in an effort to r ,-cue the
agency from years of decline.
He had come into the job determined to carry out.
Ronald Reagan's private directive: Restore tee agency
to its former effectiveness. Casey has surrounded himself
with top intelligence officers. ile appointed A im. Bobby,,.
Ray Inman, the former chief of the National !,ecurity
Agency, tiebe CIA deputy director. ? ,
Inman is held in high regard as having a razoresharp
mind, but his experience has primarily been timited to .
technological and analytical matters and has had little to
do with the-dark side of coverr operations: ' e'
Indeed, ,Casey himself, though a highly, competent
manager, has had only modest experience in- .ntelligence
activities, and that was during World War If_ ' ?
Thus, among the three top people running tee agency,
none has had deep experience in clandestine vork ?
which is the paramount mission of the CIA. - ?N
- Said a recent CIA retiree: '.'The guy who h,-.ads,.'
operations should be the master spy for the U asted
States. In.Hugel, we have a man who ha's absolutely no
knowledge of the spy business_7: ,
? ' Donald Lambro
7
-
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Approved For ReleaseL2006/021M-C1ARD121.-100901R0004 0190004-3
21 June :19r1
rj "
dirty T1JQ
,
. ?.
, I , :-..`s',., rt,r ,, -,.? - --, ,-,..',,,,,,,,q...-1:.)
f
25X1
25X1
11opur
.a
; 7
?
B.)?i: itlellAiD BE,ES TON ? in iVas'hin6)*11.4..:
;IPHE - Central Intelligence .ommand of the American in ' on .,the Beagan election can-
?1 Ag 6 n'c Y. 'dittle't? -.. thetelligericc communitY. '. .. . paigri,' has no exp-n?ience
'
Leagan -..Administration ? .. is ' Be, replaces Admiral' 5tans- ' cloak and dagger operations. '
field Turner, Carter's CIA chief ':. But Mr ,Casey is said to svai t '
rapidly rec:overing from the
scandals and hatte.ring it. took n
whose imass firings of expert- only a trtisted friend as Iii s '
e cc it t, intelligence - officers deputy
, , and Mr Hugel is r '-
during the days of Mr Nixon, :broti,,h : he agency's niOrale to: ported to be learning the icu '
add from the purges of. the ,an all
Arne low '.; .... iiaq
Carter a,? -- ' _.
' United
d;,. OnePi:Oblin facing the h%o
-,dministr ation Mr . ? '?. *. C asey wear s th ' ;',:
. ,
, The 'ag'ency's 'new Direcltor(-;13. ?Kid :of all Men is that the. A rePT-vry
Mr William Casey, a vigorous 'intelligence services, director' --rtp,-Ao-t,' 1-A'ft,i,----in--,..-i- ,,,7 ? .--j',4, .
fifl?year-old,' is , on "Bonnie" ? of the CIA and a member of ? --"---; short of
lighters." the explosives an it
ferms With- his old .friend the the cabinet:-, Ile has now all, !` dirty tricks " experts who co
' overlord .' '
President, and this.relatioomlip buf' handed :over his the tough svork. Many Were di ..-
IlielPs account For; the rising ship of American Intelligence ? missed during the Carter day,.
,Inerale of the 04. ...,' . to his competent, hard-working' . .
, , - Mr Casey'S other 'main' chic'-
hen he het took over with the
' de I v
p it., Admiral tobert. Inman ' -'
(who starts his day at .4 a live has . been to restore the
m) to
_Ileagarr . Administration, . Mr Confidence of friendly intelli-
r...,,,__. concentrate On maintaining his confidence
--promised de) . es gence agencies ' abroard who
".tr_e_ close personal links with Presi.
morale and improve ti ., ,have been reluctant to trust-,
?agency's "desperately-, needed" ?
''" dent Reagan,'. arid, on :rebuild
cooperate- and share - secret's
intellige IA. niic ... capability. Ile is ing thp.clandestine side of . the
?, ,C ' ??, ' y t- . : ? ,,,.., ', With the CIA since it fell into
new inakng, good his nrornise
disgrace .in the mid-seventies.
"bringing in additional funds '' Mr Casey! . has - a ppepinted ,. ii ?
personal friend, Mr Max tinge]; .:*., ; siii're":' iit; to'ok 'office tic ti....,
and recru
high-grade its ' -
. ,,. , . . ,..,- ? ! ' ',' - aS his' ' director , of, ?,, ope.rations visited ',Britain, ? Franc.e. Wecit
__?,' Mr, CateY', who vhs-Preside'nt and ?' s y : ?, '...,
Germany,' the Middle East Ant
'',,Beagan's ? election' campaign The ::Ptninovaestcf;r't; "I:1' '''s.tr.ting- : Japan,, visiting CIA stations an I
Manager And served is a secret eriticiiirn from CIA Purgares'slollatis .-reassuring allied secret service.
intelligence 'ichief in London because Mr littgel,'? a .' former ' that' his agency ,. is back in
during the ' war, :has - Overall bitsines3man who :air,:'worked'?seriouS business. "7 ,
' ? Ile, has maintained the stroria'
? links he established . witt
British' intelligence during the
? war.DUring Mrs .Thatcher s
visit to the United 8tates this
year he . graciously . told A
banquet in her honour tht '
!America had learned all it kne-v
!about intelligence from Britaili.
I '--
! '..lie'whs too polite to mentito
, the other side of the coin?ho Y
'tnany of America's secrets had
been :given away..by ? Britisiv
!traitors. .- ;' ' ??
. ?'. ' '1
't3
qtis
' 4.)
?
Admiral Stansfield runner ; , Mr =Ham Casey
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Approved For Release 2006/02/07 : CIA-RDP91-00901R00040019
ARTICLE AA.. NEW Y01.3K TIMES
ON PAGE 19 JUNE 1931
Senators Open Israeli-Raid ilearing
To Determine Breach of U.S. taw
By A. 0. SULZBERGER Jr.
Special co The New Yclialmea
WASHINGTON, June-18 -- The Senate
Foreign Relations Committee began a
series of hearings today ,into Israel's
bombing of an Iraqi nuclear reactor on
June 7 to determine whether, among
other things; the, raid violated a 1952
agreement governing the use of Ameri-
can-supplied arms. - ' ? -
In questions..to State Department offi-
cials summoned to testify, the Senators
made clear that their ? own views were
divided as to the attack and what should
be done aboubit. ? ?
"Very frankly, they probably did the
world a favor," said Senator Rudy Bosch-
witz, Republican from Minnesota.
Senator John Glenn, Democrat of Ohio,
called the r attack "one' of the most de-
structive events in recent history" and la-
beled it"vigilante tactics.)' '
"Israel took the law into its own hands,
nobody denies that," he said in the
crowded Caucus Room.
Cranston Backs Israeli View
IThe itecmgest support for Israel's posi-
tion came from Senator Alan Cranston,
who produced three documents from the
International, Atomic Energy Agency,
which inspected Iraq's reactor.
The California Democrat asserted that
the documents showed Iraq could have
produced enough plutonium in the
French-built reactor for up to three nu-
clear bombs and that there-was a signifi-
cant possibility that this plutonium pro-
duction viould not have been detected by
the agency's inspectors.
The documents themselves did not go
all the way to prove these charges, hut
tomorrow an American, Roger Richter,
1 who recently resigned from the agency, is
scheduled to testify before the Committee
to bolster Mr. Cranston's position.
Earlier this week, the director general
Of the International Atomic Energy Agen-
cy, Sigvard Eklund of Sweden,. said a di-
version of plutonium would have been de-
tected by the agency's inspectors.
Senator Cranston gave a taste of what
Mr. Richter is expected to say. He quoted
Mr_ Richter as planning to say to the
committee: "The available information
points to an aggressive, coordinated pro-
gram by Iraq to develop a nuclear capa-
bility during the next five years. ?
."The I A.E-A. safeguards are totally
incapable of detecting the production of
plutonium in large-size material test
reactors under the presently constituted
safeguards arrangement."
- The hearings began when Under Secre-
tary of State Walter J. Stoessel Jr. testi-
fied, reiterating the Administration posi-
tion's, which he expressed yesterday to
the House Foreign Affairs Committee,-
that the Israeli attack might have vio-
lated' the Mutual Defense Assistance
Agreement of 1952, under which Israel
can use American arms only for self-de-
fense.
. "We are not prepared today to render
any judgment," he said, pending a full re- ?
view of the situation. \
The Senate committee later went into
session to hear William J Casey
Director of Central Intel igence.
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Approved For Release 2006/02/07 : CIA-RDP91-00901R000400190004-3
ARTICLE APPEARED
THE BALTIMORE SUN
ON PAGE _ 19 June 1981
Senator Charles McC. Mathias, Jr. (R, Md.) points to WIIlizm
J. Casey, director of the Central Intelligence Agency, just be-
fore a closed session of the Senate Foreign Relations Commit-
tee concerning the Israeii ir raid. From lett are Senator
Richard G. Lugar (R, Ind.), Mr. Mathias. :S natur Charles IL
Percy (R, chairman .!7.the commit'.ee, iii Mr. Casey.
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ART1CLE Aj
ON ?AGE_
/or Release 2006/02/07 : CIA-RDP91-00901R000400190004-3
THE WASHINGTON POST
19 June 1981
By James K.W. Atherton ? The 'Nash riqton PCAst,
Senate Foreign Relations Committee Chairman Charles H. Percy (R-Bl.) greets CIA
Director William J. Casey a the beginning of a day-long hearing on Israel' 4 Iraq raid.
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Approved For Release 2006/02/07 : CIA-RDP91-00901
ARTICLE APPEARED
ON 'PAGE filt
THE WASHINGTON POST
19 June 1981
25X1
00400190004-3
U.S. Tried to Keep Lid on Two tistenill
By Murrey Marder
Vio-shington PastStMt Writer
For nearly a year, the Carter and
Reagan administrations did their utmost
to prevent public disclosure of the ex-
ietenee of two secret electronic monitor-
ing stations operating in China . with
American equipment . and manned by
Chinese personnel.
The Carter administration succeeded
in keeping the storf out of print, but
the Reagan administration did not, al-
though vigorous attempts by top-level
officials to forestall publication contin-
ued into the late afternoon Tuesday,
just before NBC .television 'e nightly.
news went on the air. ?
The NBC report was not the. first
public reference to the secret monitoring
stations, but it had the greatest national
and international impact.
Anchorman John Chancellor opened
by saying:
"Good evening. The United States
, and the People's Republic of China have
been watching missile tests in the Soviet
Union for the pant yearfrom two secret:
monitoring stations deep in-China "
NBC then switched to diplomatic re-
porter Marvin Kalb in Washington for
the actual report, with accompanying
film that included street scenes in Teh-
ran showing viildly cheering crowds hail-
ing Iran's revolution. Among other
things, the upheaval had wiped out elec-
tronic eavesdropping posts operated by .
the United States for years on the Iran-
ian-Soviet border,: The monitoring in-
stallstiors. now in- China are replace,-
ments for that major intelligence loss.
Existence of the monitoring posts had
been reported obliquely lest Sunday in -
The Washington Post and, as a conse-
quence, less obliquely in one pararaph of
William Sartre's column entitled "Essay"
in The New York Times Monday. ,
In piecemeal fashion, veils were being
removed from a behind-the-scenes de-
bate involving the government and press
about publishing a story that officials of
two administrations tried to keep out of
print ?
Ironically, the- beginnings of the story
had been lmown since at least April 20,
1979, when China's offer to replace the
Iranian monitoring stations was reported
on the front page of The Post, and per-
haps other newspapers subscribing to
T.he Post's news service. Under a Hong
Kong dateline, Jay Mathews of The
Post's Foreign Service reported:
"Chinese Vice Premier Deng Xiaopir_g
... said today that China is willing to
use American equipment on Chinese soil
to monitor Soviet compliance with a
prOpceed new arms limitation treaty,
according to U.S. senators visiting Pek-
ing!'
The report also said Deng, "in re-
sponse to a question from Sen. Jcseph
It Biden Jr. (D-Del.), made clear that
the monitoring stations would have to
be run by Chinese and that Peking
would share the collected data with
Washington."
The delegation's leader, Sen. Frank
Church (D-Idaho), then chairman of the
Senate Foreign Relations Committee,
told reporters who asked for his reaction
to Deng's offer: "We'd have to pursue
the matter further."
To an even half-alert Soviet intelli-
gence officer here, that report surely
resulted in the clang of alarm bells back
to the Kremlin.
. It should have been obvious that the
U.S. government, and the Central In-
telligence Agency in particular, were un-
likely to pass up such an 'opportunity,
especially when loss of Iranian monitor-
ing posts was a very troublesome issue
for the Carter administration in its at-
tempt to complete the second strategic
Approved For Releaseaaariffi2607zeittA1DIP91).003K111R000400i 90004-3
Carter and Soviet President Leonid
pact finally was signed by President
Similar alarm heAle should have rung
in U.S. newspaper offices about. any fol-
low-up on Deng's offer, but journalism
has its peculiarities. R. was net until No-
vember, as best as can be established,
that. The 'runes had the story, or as
much of it as was available then.
Newspapers tend to hold their secrets
very tightly, so th:s account is not nec-
essarily complete.
Existence of a monitoring "facility" in
China became known to Richard R.
Burt, then national security reporter for
The Times, who had a reputation for
"breaking" what government officials
regarded as some of the most sensitive
stories, and to his Times colleague, Phil
ip Taubman.
The rnonitorinn secret reportedly also
became known about that time to one
or two other journalists, but not to any .
reporters at The Post According to.
journalistic sources, The Times was
talked out of publishing the story last
November on "national :security
grounds" by Caster's national security
affairs adviser Zbigniew Brzeimald and
perhaps others. -
These sources said The Times again-
was talked out of publishing the report
as a prominent news story as recently as
last Tuesday by CIA Director William J.
Casey. At that point, the story had been
reported Sunday in the context of .an
overall review of China policy in The
Post by this reporter, and then by
Times columnist Safire Monday. .
? By that time Burt had become what
insiders traditionally label a "poacher
, turned gamekeeper." He left The Times
after being named director of the State
Department's Bureau of -
Politico-
Military Affairs, becoming one of the
administration's prime keepers of se-.
crets. e
TOPEA C:'PI;--JO;FItL (KS )
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G7q-encv yams status
The Cen i. llicierice Agency, battered
and bied after revela ions o illegalities, is
making a comeback:
. ,
Since the agency's incePtion, presidents
have dependA on the-CIA for accurate infor-
mation 'cull a nalyses' of world events. :To gath-
er the n d neededid.ata, sorna,CIA,officials
went overboird:.:,,Theresulting_.-?trauma now
renniins as only a murky reminder of what
the intelligence agencY'Sliotild not do. ?
The reason CIA-tranSkressionS have been
put in perspective is that; More and more the
Arnerican,publieand-USAeaders,realize the
nations fun]
in the. Re administration ; the CIA has
found. nurnereds friends a m:Casey now
head of the & IA i a.close;personal friend of,
Ronald Re io Thu4CaSeY :lias';a special
access-tOhe pr esiderit'::whi:c.h some: previous
agency he have' not
dent,G'eorFre, Bush commanded-the- CIA: dur---
ing part of 'Prcsiderit'Ford!'S tenure and Bush
is an ontSpOlten d vOcatenf the agency:,
Reagan began receiving daily briefings
from CIA officials shortly after his landslide
election victory. He is: becorning :used fol-
lowing the day-to-day events which the CIA
accurately portrays.
One aspect of the agency's fur, etions de-
serves more attention?the analyses, pre-
pared by specialists, which tie together
seemingly unrelated global occurrences. It is
through the carefully-drawn anal-y7ical docu-
ments:that Reagan and his advisers can de-
termine:, how U.S. foreigrr_policy i'nould be
formedThe 'Reagan administration also is cOnsid-
ering.ways of easing the-stringent reporting
codes the CIA was required to meet. Estab-
lished inthemid 1970s; thosecodes forced the
CIA to reveal 'its', every move:. to _several con--
gieSSiOnal -Coniinittees: The CIA; particularly
its covert operations division; seheduled few-
er
overseas 'excursions,. for fear hat ...those
. ..
-actions would be jeopardized.
'Recentii/Orld eventS, including the fall of.
- the shati4.of Iran, 7theSoViet'invasion of Afg-
7hanistan- arid the Israeli bombing.; of the nu-
.
clear reactor in Ifaq, caught Amer:can:lead-
ers. by surprise:: This surprise.--could have
? been avoided had. the CIA had adequate poW-
ers.-
It is unlikely the CIA ever will b,.! allowed
the same amount of _freedom it previously ,
'enjoyed:-But a strong case can be made for
strengthening the flagging agency and giving
it the status and power it deserves.-
?
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Approved For Release 2006/02/07 : CIA-RDP91-00901R000400190
BALTIMORE EVENING SUN 1
5 JUNE 1981
laitkeye for
The rise ,and fall- of Max Hugel, .Brooklyn or-
phan; Success:1u/ New Hampshire businessman
and short-led CIA spymaster, is one the sorri-
es.t chapter:ici En' Ste=month history of the Rea-
g,an administration. ?
That a man-with virtually no top-level experi-
ence could have been Putin charge of the:covert
operations Of the.Central Intelligence Agency, as
Hugel wasa:ast May, is. outlandish:enough4At the -
time, careei,;p1-Ofessionals in intelligence' were -
shocked at.--_the choice, pointing out thaLHugel
would have-access. to the. rri?. sensitive, iecrets
arid be ,ini-shafge of _alr_clandestine operations
a broad.1 ;Despite surpriSeeyed,z amon0White
House staffers, Hugel got the job Out of deference.
to Williarh4,XasentheWall-street impresario of?
Reagan campaign
That a man with near-megalomaniacal tehifehtW.
cles ? he once said his rapid. snecess in the elec;T:
tronics business made him.feel-like an emperor
- could be approved for such position is equal-
ly outlandislualiat. his chief political. was.;!*_
warn-therrt aficl*mb-them, seeLa-Communist-ev:-:.
erywhere7N6-041famshire publisher WiUiarn:
Loeb is anotlfir incredible part of. the story.
?Hut by fiiihe most preposterous aspect is the:
shoddy, ..ne-,gligent,-;-,embarrassingly-isuperficia '
work of thVhite House and theCIAin checking.
tint Huger.....Vithenrhe;was named" by Casey. The
WashingtthiPoSt. appears to have had little tro&
hle in- documenting not only a pattern of improp-
er, if not illegal stock transactions by Hugel, but
also a chilling; expletive:?not-deleted willingness
to use physical threats, lies and deceit to get what
. he wanted. A 'clever man perhaps, a responsible
_
one no. ?
CIA field interviews, on the- other hand, con-
' ducted apparently in only seven days, found "just
three parking tickets." Under_ a 1976- directive
? 'anyOneLto be granted top-secret information is
supposed; to be called for questioning about "any
significant adverse information and/or inconsist-
,-encies:." Hugel Was given-a lie detector test but no-
separate personal interview. 28 people-, including
Loeb, praised Hugel as a hard-driving millionaire =
whose long Workhabits was his only failing. .
Several --senators warned .yesterday, that the
White Hou*Whieh tried to weasel out of its role-
? in the affair by saying Hugel *as "not appointed"
from there; has not heard the last of this "disas-
ter," as one senator called it And that is as it
should be. Yesterday's coincidental revelation
that Casey himself knowingly took part in a land
'investment stock offer that hid important facts ..
from potential investors offers a timely case for
setting things straight. At a time when the admin.--
istration is adopting a forceful foreip policy,
when the oversight_ check on the CIA is being lift- _
ed, it is particularly urgent that we have no more
Max Hugels.
;
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25X1
jcz.:ITI-GrEE ATTEARE6pproved For Release 2006/02/07 : CIA-RDP91-00901R000400 90004-3
16 J
CIA" PAGE Ci NH YOK. DAILY NEWS
une 1981
ople
By PHIL ROURA and TOM POSTER
'Top spy was watching the wrong birdie?
They're giving CIA Director Bill Casey the bird these
days. It's because Casey chirped some "for your ears
only" news to the wrong guy during a telephone
conversation last week, says a source. ,
According to one of our super sleuths, the nation's top
spy had been asked by the White House to give some
special attention to Sen. Harry Byrd of Virginia, who,
although listed as an independent, tends to list toward the
right. So Casey called him up to fill him in on some inside
info from the Middle East.
At least, Bill thought it was Harry. According to our
source, Casey chatted for about 15 minutes before he
emphasized that the talk should be kept in strictest
-
confidence, especially from those sneak,/ Democrats.
Do you know who you're talking to, asked the party on
the other side of the phone? Sure, said Casey. Sen. Harry
Byrd.
Well, Casey had a Byrd, all right.But it wasn't Harry.
Instead, he'd been plugged into Sen. Robert Byrd of West
Virginia, who happens to lead the Denis.
Casey quickly apologized and hung up the. phone.
When we checked yesterday with CIA headouarters, an
aide said stiffly: "We don't comment on Oat sort of
thing." And Sen. Byrd's office?Robert, that is?insisted
that the chat lasted only a few moments. But we hear
different. How? A little byrdie told us.
Approved For Release 2006/02/07 : CIA-RDP91-00901R000400190004-3
READI
ovivRefeE)
RTIS1-00901R0001400190004-3
INC.
4701 WILLARD AVENUE, CHEW CHASE, MARYLAND 20015 656-4068
20A1
FOR
PUBLIC AFFAIRS STAFF
PROGRAM Paul Harvey
DATE
SUBJECT
June 16, 1981
mineornerroommt.inWINISIM?1114
STATION WMAL Radio
ABC Information
Network
12:15 PM Washington, DC
CIA Director Imparts Secrets to Wrong Senator
PAUL HARVEY: Oh, hey, don't broadcast this or the CIA
might be after both of us. But our nation's number one spy,
William Casey, the head of the CIA had some super-super-secret
information only for select administration ears this morning
concerning the Middle East. And he asked his secretary to get
Senator Byrd on the phone and when Senator Byrd came on, the
CIA Director whispered his secrets, to discover too late that
he was not talking to Virginia Senator Harry Byrd, he was
talking to Democratic Leader Robert Byrd.
He hung up real quick but not quickly enough.
OFFICES IN: WASHINGION D.C. it NEIALYORK IQS.ANG&I-4S- PRINCIPAL CITIES
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Material supplied by Radio 1V Reports, Inc. may be used far tile and reference purposes only. It may not be reproduced, sold or publicly demonstrated Of eXhiblted.
RAD1
rovf\l/ReftE(F)
25X1
It7F1-00901R000400190004-3
INC.
4701 WILLARD AVENUE, CHEW CHASE, MARYLAND 20015 656-4068
FOR
PUBLIC AFFAIRS STAFF
PROGRAM Paul Harvey
DATE
SUBJECT
June 16, 1981
IMMO'
v
STATION WMAL Radio
ABC Information
Network
12:15 PM CllY Washington, DC
CIA Director Imparts Secrets to Wrong Senator
PAUL HARVEY: Oh, hey, don't broadcast this or the CIA
might be after both of us. But our nation's number one spy,
William Casey, the head of the CIA had some super-super-secret
information only for select administration ears this morning
concerning the Middle East. And he asked his secretary to get
Senator Byrd on the phone and when Senator Byrd came on, the
CIA Director whispered his secrets, to discover too late that
he was not talking to Virginia Senator Harry Byrd, he was
talking to Democratic Leader Robert Byrd.
He hung up real quick but not quickly enough.
OFFICES IN: WASHINGTON D.C. di?NM/Y.3,RK a LOS.,a0ICZUFS a R PRINCIPAL CITIES
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LETICLE APPEAAPYroved For Release 2006/02/07 : CIA-RDP91-00901
WALL STRERT JOURNAL
ON PAGE 3 L. 16 June 1981
Letter5 to the Editor
Don't Undercut Consensus on CIA ?
25X'
R000400190004-3
No one could hope more than I that Di-,
rector of Central Intelligence William
Casey succeeds ,in strengthening the CIA
and other intelligence- agencies. At the
same time, no one could hope more than I
'that Director-Casey does not follow all the
? advice set forth in your 'editorial, "Casey's
? Challenge" (June, 4).. , I% ?
? Those elements. of 'Executive. Order
12036 that you condemn are designed to en-
? sure that the clandestine capabilities of thern
' CIA and other intelligence agencies are nut
turned against law-abiding Americans. Re-
moving these proVisions will. undercut the-
consensus by which the CIA operates."Par-
ticipation in such controversiar activities
will call inb question the entire mission of
the MA, including the 'valuable and irre-"-
placeable work done by it in gathering in-,!
telligence overseas. Contrary to the impli-4
:cation in your piece, E.Ci: 12036, contains
. virtually no restrictions on intelligence ac-
tivities abroad. ??.; ;.?
In your editorial, you &state that the ?
CIA's actiVities are 2e'xtra-legal." Of
course, an aspect of this country's unique
ness lies in the facOhat no agency of the ??
United States, including the CIA, can be
outside the law/The constitutional and le-
gal rights enjOed by Americans cannot he
ignored, even by an agency whose work is
,1 as vital ? the national security as is the
CiA's./
FiJdIe the agency must work in secret,
the ararneters of its activities are set
fo h publicly in the National Security Act.
1917, the CIA Act of 1949, the Intelli-
ence Authorization Act ,of 1980 and E.O. '
12036. Thus, Americans can, be assured
that the intelligence agencies are engaged
in vital work without infringing on free-
doms. Contrary to the statement in your
article, "classified sections of the order"
cannot have become "a straitjacket on the
CIA" simply. because there. are no secret
sections of the order.. ?- ? ?
What you call "President Carter's Ex-
ecutive Order 12036,7 is, in fact,. A revision
of President Ford's E.O. 11995, E.O. 12036
is consistent in tone and form with its
predecessor and was formulated with the I
. advice of the operational, components of
the intelligence agencies. The order repre-
sents a consensus reached between the
Carter administration and representatiies
of both parties-in Congress. After four!
years of experience with the curientorder,
of course, spme changes, ..--hich 'improve
operational. effectiveness".vri,thin the lp.;0,
may be warranted. Yet this does nOt.neces-
'sitate scrapping the current order.......
? . I would hate to-discard the years of eX:
?perience under . this format which has
:evolved into procedures that permit collec-'
tionof necessary Intelligence without com-
promising Americans' constitutional liber-
ties and rights of privacy. If each new ad-
ministration issues an entirelydnew Execu-
tive Order on intelligence activities, the
professional and apolitical nature of the in-
telligence agencies Will certainly be dimin-
ished. The basic mission of the intelligence
agencies should be to gather foreign
intelli-
gence overseas; and. to protect our, own na-
tional security through a vigorous counter-
intelligence program at: home. Assuring
these aims without infringing upon'consti-
tutional rights is the aim of E.O. 12036 and
should remain the aim of any revisions by'
the Current administration. ,
Those Of us who support doing all possi-
ble to enhance What is already the world's
best intelligence apparatus, so vital in the ;
troubled times ahead, must not be seen to
support repeal of those provisions of the
Executive Order that provide Assurance to
law-abiding Americans- that they will not
become' the -targets of .intelligence- agen-
cies. Instead,. we should concentrate on as:
swing the intelligence community- that it
has the support of the people in fulfilling
, its ,1--
- ? WA.LTER D. HUDDLESTON' (D. -Ky)
. , .
, '? ? - U.S.' Senate-
Washington ?
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25X'
Approved ForItErtad2WPS. 61/P-igaR0N000400190004-3
une
investing in
CIA; "chi
ormer toj off icia
eat vent
By THOM HILL
Business Editor
The investment group? behind-;
$250 million peat methanol plant t
be built in northeastern North Car-
olina includes a Cast otcharacters%
almost as unusual as the product-,
they hope to sat
Among the investors: CIA three-. ,.
tor William J. Casey, four other
former key officials in the Gerald"
R. Ford-administration and a for--,'-
mer top executive of R.J. Reynolds
Industries Inc.
_ _ _
The figure linking them all is
Malcolm P...,,M..cLean; the former-
. North Carolina trucking magnate.
' who remainS4 dominant presence
in the Tar Heel business world:)c.:::
The ;plant,. annauneed 'Wednes-'? -
clay by Gov. James B. Hunt Jr. and
officials of Peat Methanol Associ-
ates, would be the world's first
commercial facility designed . to
convert peat into methanol,- a liq-
uid fuel that can repiace or stretch-
domestic gasoline supplies:
Eastern North Carolina has
_ _ , ,
tensive peat 'deposits and,_ unlike
peat fields in Alaska, a long.sum::-
mer for solar. drying-.0,1he wet,
spongy material; ? Hunt- said- the
state's peat ?"could literally be an
ace in the hole for North Carolina's:
energy future."...
PMA, of. Santa Fe, .N.M4., iS a ?
partnership of N.C:Synfuels Corp.:
(a subsidiary ;of Koppers Co of s
Pittsburgh), . :Energy '7, Transition
Corp. and Jack'B Sunderland,.; a
New York City investor:
The frinis to he built near CresWellin WaShingtori
. .
Connty. on the giant . land. holdings of. First Colony
Fairns-A-,17; ',"?2.N1 =
That's where the McLean connection,comesin. First:
"Colony; whieh,sits.atpp milesf peat bogs, is Owned by.
McLean. .'?
McLean, now of New' Yerk .City,. is the former owner..
of McLean Trucking- co. of Winston-Salem and
- Sea-
Land.Shipping now'- 5:SOlisidiariof Tel:Reynold:S:,
At One time, he wasa.inajor,?tockholder'aiid-direetorbf:
Reynolds.:,...
Sunderland said in an inteiitieW last *.eelt.that he and
McLean had . formed a- friendship through. their
Olds connections: Like McLean, Sunderland:oncehead=
ed a company thatwas-acquired by RJR:'',.;::::;,77-7:T..1;';
Sunderland's Anierican-IndependenV..000:-Fai.
-bought by RJR in MO.,. and Sunderland became
ecutiVe iriee president in chirgifir the ren-atried.Subsid:
Aminoil Inc
'Sunderland resigned from RJR in 1.97:7and.doW. is an.
independent investor:
"I've been Working for Matebliel McLean:off and-oh
for five years, studying potential Uses fo . the peat acid
advising him on some other energy matters," Sunder,
land said. ?h,-3?2?? ;
About 18-months ago. Sunderland said,: he intrOducW
McLean to his friend Robert Fri and soine'other Off i-
cials of Energy Transition Corp: -.=.= or ETCO--: a Santa:
Fe company that develops alternative energy projects.:
ETCO was formed two years ago by five Ford admin-,-
istration,officials after they lost their jobs- to the Carter.
Democrats in Washington. They
.? Charles W. Robinson, former deputy ,setretarY:of
.state under Henry Kissinger ?(197*77);.novi ETCO
chairman:
?'F.ri; former' acting administrator nf the' EnViron-.:
tmeOtal. Protection Agency (1971-73) .'end ..the EnergY
-Researav'. and Development Agency i;(197547),::. now.
:ETCO president
it Frank G. Zarb, formeradministr'ator of the
Energy-Admirustration: -;
? William 0,?Tgrrier.;- former. U.S ambassador tO the',
:Organization for. Economic Cooperation andDevelpp7:,
nientinPanis? "::?4:4?;-,';;;.,;:74.:4,:.,(!-,
; * CaSey;:noittlA director,: forineefpreSident the
:Export-Import ,Bank.of the United State419706).:11e:
He-
also served under former President. Nixonehairtnari;
;of the. Securities and. Exchange Corniniiiion (197.1-74',
f,and undersecretary of state 11972-70
4.:.`
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25X1
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ART I CLE APPEARED
ON rAGE_A-1____
THE WASHINGTON POST
15 June 1981
-Recouping Under Reagan-
? By Michael Getler
. washiness Net Staff Writer
The Central Intelligence Agency,
Whose public Linage and -private- mo-
rale have .been battered during much
of the past decade, appears to be re-
gaining some of its lost money, man-
power and maneuvering room- under
the Reagan administration.' -
? In Director William J. Casey, a
long-tithe friend and political adviser .
:to President' Reagan, the agency has
perhaps more clout; in. the. White-
House than ever
In its deputy director, Adm. Bobby
Ray Inman, the? former chief of the
!.super-secret National Security Agency,
t:.the CIA has one of the nation's most.
respected professional intelligence of- -
ficers to brush. ttii the analytical prod-
`uct and keep tabs on technological
prowess. Some senior CIA officials
behave that Casey, 68, may not stay
in his post for Reagan's entire four-
year term and that Inman is heir ap-
parent.
In Vice President Bush, the .agency
has another godfather at the :highest
.levels of government. Bush;' a CIA
director under President Ford' who is,
according to agency officials, very
proud ? of his days at the agency,
played a keY role -during the transition
period in helping turn Reagan toward
s on
Bush? insiders say,. Convinced a reluctant _presie-
!:dent-elect Reagan to let the CIA brief him every
:.clay on the global intelligence picture --- even when
;:he was in California that the president would
.:.kuickly develop a feel- for the evolution of events
rather than be exposed only to special or occasional
situations. - ?
CIA's secret, multibillion-dollar budget is going up
substantially. Though sources say 'this actually
:began in the final year of the Carter administration
.after events in Iran and Afghanistan, it is clear that
t will keep going up under Reagan.
-Officials say the agency, for the first time in
,Years, has money to hire analytical specialists for
areas of the world previously neglected, for more
:lingu.ists, and to pay for more trips abroad by an:
The agency is
'destine; covert
:according to rig
,ever, is suppose
experienced peo
-Sources say ti
also began in tl
idenr overcame
cions that offici
President Mond
committee head
that investigate(
mid-1970s.
Casey,- many
the agency's ell
merit last montl ,
businessman whi
campaign, as Cl
caused much gli.un.ning utruugnum
community.
Hugel has no experience in spy operations, but
his post is the most sensitive in the CIA and in- ?
valves overseeing the agency's entire overseas spying
operations. -Many intelligence officers, active and
retired, were aghast at putting an amateur in such a
job, while a few others thought it mostly an attempt
to joltthe crusty world of spying with some business
world experience.
But things have quieted down and one veteran
intelligence officer offers a different way to view the
appointment. In this view, Casey, a high-ranking
officer overseeing intelligence operations in Europe
in World .Warwants to run the clandestine op- -
erations himself and wants only a trusted friend
betWeen him and the operations.
Whether this means that CIA eventuallY.will re-
turn to its heyday, of covert intervention abroad,
including assassination attempts, as well as 'its oc-
casional dabbling in domestic activities on the fringe
of its charter, is not known.
While the improvement in the overall situation at
CIA is seen by many officials as necessary to bolster
U.S.. intelligence, the largest problem for the agency,
and for the government and citizenry' as well, may
come in keeping the CIA from once again going too
far afield within an atmosphere far more congenial
than that of the mid-1970s. - .
The key document that is supposed to define
what the CIA can and cannot do is .Executilre Order? '
12036, put into effect by President Carter three
. years ago as an outgrowth of the Senate committee
investigation. ?
A --
we intelligence
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CO.N11NUED
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T TdIJZ APPEARED
:ON PAGE_3,213L__
THE WASHINGTON POST
15 June 1981
3A4X. ANDIR5014
Who'll Fight- the Drug .Push
era? One of the most bitter bureau
cratic fights in Washington lately has
been over the overlapping jurisdiction
of agencies, involved in the war against
drug smugglers The Reagan admin-
istration so far has resisted suggestions
that the:. troubled Drug EnfOrc'enient
Administration. be stripp0f
ties.
the tranSitioep`eiicd,-
Reagan intimates were.. being'; briefed
on the failures of the anti-Ong?;pro-
gram William J. Case now. CIA dr-'
rector, was given a parti y g oomy
appraisiI. ot? DE-A in, an eyes-only
transition document. - ? ?
'The Drug EnTairementzAdininis-
.tration ,is generally.: recognized! as 'a
failure," the: paper stated.'. "Its 'basic
approach'? to stop drugs af',,the
source has not worked and cannot
- - ,
The analysts recommended?instead
.a six-point program that-would, they
claimed,..:saye- the goverrunent
million 'a. Year; and be more effeCtiVe
against the narcotics traffickers. The.
suggestions included eying back to
the Customs Service responsibility for
anti-smuggling efforts employing the
Internal' Revenue Service ,to --atlack
'illicit drug profits through.; the ta-'t
laws and using diplomatic pri*ure on
nations - that produce drugs ;or are
transit points in the international traf-
fic.. .
Dolens Of narcotics exieits .,.. have
reportedlj been urging the adininis
' tratiOn to abolish, the DEA 'and return
its functions., to. the FBI, CIA. IRS
and: Customs. But high-level 'Justice
;:Depart.ment.?officials inform me that,
2:there are no finn plans even to shake
!Pp. the- beleaguered drug. age.ncY?:-/..f.'
?
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ARTICLE APPEARED CHIC:LGO TRITZTO E
PAGE_AL-41:?.2: 14 Juno 1981
Michael Kilian
au
in e
, Critics have complained that CM Director.
William Casey sneers at intelligence data
'that: conflict. with Reagan administration
dogma. Recently, ja CIA report on Soviet
terrorism reportedly had to be rewritten
three -times until -.it said 'what .the White
House wanted it to say?News item,
PAUL REVERE and 'Joshua Casey,- Gen-
eral Washington's intelligenee advisor; stood
.looking. at.- at.. the steeple ? of the old North .:
Church across the river.*
"There's the signal! said: said: Revere. "Two. -
lanterns! That.- ,means -they're coming by
-
- "That's impo'ssible,'`i.said Casey. "Gener-
al Washington -has already decided they're
marching by Ian& 'He's movingthe Conti--
nental Army to'-meet.': them . at Mar-
blehead." ? , ;
"But that lookont-mUst. know what he
saw," said Revere He put up two Ian.
. tern.s?!:'
"Never inind,Csasey said. -"I have to go
help with- the.battle, of Marblehead, Yon go ?
to Concord :and LexingtOn and do what's
??
expected of you. i ,
? ?-?
. - '.;.7.P., ,..,, -, ? . . ..
'? . . . ? .r. - -
"-'111eriwether'-tere:says that since we did your. campaign? We have nothing to rear;?
so well with- tittle Louisiana Purchase, ? we ,',.from the South. ll our problems ;are being:
ought to.think-?aboUt purchasing,-.the-..Texaseaused by the Cubans
- ?
Purchase and maybe the 'California Pur-;;."'.PRANKLIN ROOSEVELT'v,,- ?ai in .his.:,
chase-," :Jefferson. said. "He Says Pacific.- ' t d 11. IC ' '
. p p - ., nczes,
,Palisades out there_Viould make i.a.,reallv ' '
-. -: with. his secretary,:.?Lucy Mercer. Just then,';
neat presidential'. retreat.".,.... ..3
- Gen-.George C..-MarshalL..burst in. \-. -,:. ,
, Revere leapt onto.his horse and rode Off,
shouting: ",The British- aren't corning! The
BritishThren't- -?
PRESIDENT JEFFERSON called his in-
telligence advisor, Marblehead Casey, into
the Oval Office, where he had been chatting
with Meriwett-mr Lewis,
,"That's' faulty intelligence," -Casey said.
"There are sea serpents out there, and uni- . ?':'.We!ve cracked the Japanese code!" said
corns.: And it. would mean hew states.-.You Marshall, flourishing a, copy of a newspaper.
know our- party's position on new things -7, .that bore the headline, -U.S: Cracks JaPan-..
it's against them." . , - ' ,- , -_. ':...',- .- . .. ,' 'ese axle.' ' r' ","-- ''''-'.-j,-Y-...'"3 -''';':zi.".; -.c..
-
But :Meriwether? says that,---ir iTx,-;e'don't. ' ''''''' "Arid?". said Rooseveltf ' -,--' ' .-?': ,-- ..f. i
buy-the; land, we'll'eventuallY have to fight - '.? -"They'r6, going:to bomb Pearl Harbor!"
the Meidcans for it: Wejnight.even have to,2 Afarihall. sthq?.-,..7, - - ' ? - - -
fight for the Gadsden Purchase." ....,Lt..?,- -. . ,..;.-"Don't believe him,"'Said 3. Edgar Caseyi?"
-. -?,"Nonsense,", said Casey. "Thos Mexicans ' crawling Out from behincr'n wastebasket:
are more interested in siestas than -war.. 'The Japanese are our friends If war corn,?:'
Besides,' if peOple-go- that. far west they'll: ? es,-- it will be ' with;?the Russians and the
fall off-the edge of the Earttr.".---:'.. ; :,-?-?, ?,:., Cubans.7,,,, `-ti.---,-,Vi-.,,,,,,j.,'-.: ....:::.',?-,-- ';1";-..;, ,-,?
? ;,?,,,.--", 1 :: ? , :. .1: , , ? \ 1 :'-'.._ ,.. p
? - ? , ? , ; .
BRAI-IANT LINCOLN was out at hi Cali LEONID BREIINEV wheezing? '
,..
fornia?ranch;-splitting rails, when Pinkerton, motioned the KGB chief into his office The
man had -a copy of a intelligencesum:-?
the detective, came galloping up. ?
".1+,1r m
President!" Pinkerton shouted. "We : ary- that/ one of his agents, posing as the-
have.
reliable reports that the South is going mistress of a Moral Majority minister, had
? swiped from the office of CIA Director Wil-
ham fire on Fort Sumter!" . ham C-riey
?,4Vhat do you make of that Eiihu9." sad
? -,-. - - ??-?...--
'Plan is :working, Comraoe' Iv , the
coin, to his chief- intelliaence aide Elitm? ,
Casey:.- .. ,. ,,,_?..,-, :- , .., r.,.,..:.., - ,_ . : '. _KGB- Man 'said.-..-"Only--,,.. ..., ?... , iy lute
- `!What does Pinkerton know ;thout spying.
"J :'Hous4 is believing is ", ' : rurrying
and undercover work?" Casey asked. "Did about Soviet 1.". -ma:. a $ ,... .... . : - . .,.:... -
he ever _ work at- the Securities and Ex- :- ?"Excellent,!! Said 13rezhnev. "Time now
change Commission? Did hp ever Manage -: for Step Two. 1.Inleash- the Romanian.s.'",
iD7 KazivED
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ARTICLE APPEARED THE WASHINTITON STAR
ON PAGE 14. -June 1981
TEE EAR
mtasommineaski
? BUNDLING OFF TOBRITAIN
. . . Wonderful news: ? ?
Protocolette Lee Annenberg and
Walter will whiz off to The
? Prince Charles-Lady Di':
Wedding, after all. An .invite
? trickled in to their home
address in Philly. Also. flitting
, over for the fun: Ann6i--
, Armstrong:, (Anne. like: Walter. -
? Annenberg, was once,.!r;
Ambassador_over there,; AS .
though thars- not enotigh;-:she's
'just been_quietly crciwne& ?
honcha of-anewly revived
Intelligence AdvisorY,Board,
geared, up,-,by Bill Casey:to help
the CIA thrash arourutwithout
looking silly.) Also in on the
- Wedding Action:Betsy and :
Alfred Bloomingdale.. (Thff're
asked-by-Countess Spencer, "
Lady Di's step-ma, because she
always-stays-with with the Bloomies: ?
when she's in California.), And,
most vital of all 7
Monsieur Marc, Nancy's .New
York styliste. will flit?to London
too: to tend the First Coif
throughout the hoopla.. E4r
thrilled to the ccir?, ,
25X1
00400190004-3
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A Ealfffiroved For Release 2006/02/07 : CIA-RDP91-00901 000400190004-3
"'RIX PE'
HUMAN EVENTS
PE gaU. 1 2. 13 June 1981
--2?)
n.
:64
14j:
n r n a II
By SEN. 'JOHN P. EAST (R.-N.a)
Approximately one week after
Ronald Reagan was inaugurated as
President of the United States,
Secretary of State Alexander Haig, in
his first press conference on January
28, affirmed that the Soviet Union is
"involved in conscious policies which
foster, support and expand interna-:
tional terrorism." National: Security
adviser Richard V. Allen has also stated
that there is "ample evidence" ? of
Soviet support for terrorism. " ?
These statements by high-level
government officials represent perhaps
the first time that the United States
government has officially accused the
Soviet Union of supporting interna-.
tional terrorism. The evidence for this
involvement ¬ new, however,
As long ago. a.. 1975., Brian Crozier;
director of the Institute for the Study of
Conflict in London, testified before the?
Senate Internal Security subcommittee.
that the Soviets were deeply involved in
the support for and training of terrorist
cadres throughout the world., ?
Robert Moss; -'Jbluv:.Barron,- _and.
Miles:Copeland,to:narnebut a few, are
among-I; the -thanye and
respected Journalists ?vi!LohaVe;-
developed cOmpellini eVidenCe " in the"
last 10 years of Soviet involvement over,
a lengthy period of time. More recently',
Samuel T. Francis has summarized and
analyzed this evidence in a monograply
entitled The-Soviet.Strategy.of Terror,'
published early this?year.- by?-?theT
Heritage Foundation, Herbert Romer-
stein, in in a monograph just published,':
Soviet Support for International Ter?
rorism, also .presents evidence for the
allegation, based on
both Soviet and terror-
ist primary sources. .
Finally, Claire Ster- .
ling, an internationally ?
respected "journalist.
i1 U
X1 14.1.- 1 .... 4, NI
I
i , j ,`,4 fjfiS
1 ', '.,3 I. i , .
Yet, for some reason, the thesis -..-
in previous administrations -had a
that the Soviets support terrorism
remains controversial.: Although --vested political interest in the-policy of
much of the evidence was available detente;' the U.S. government itself
to the mass media throughout the I refused to deal with what was becoming
1970s, there was virtually
a serious threat to national security.
no
discussion of the Soviet role in ma-
jor newspapers in this period. One
reason for this black-out was pure- entered into a decade of withdrawal.
ly - - ? ? and restrictions on ourOwn intelligence-
_
. Instead of recognizing' and respon-
ding- to the growing Soviet 'threat 'we-
? . - services .; andforeigne. policymaking
Both liberals as well as some govern- capacities. ??*:: -
?
ment officials wished to -promote The Church and Pike committeesin-
. .
detente with the. Soviet Union. A basic--? . tet 0t intelligence services and
assumption of detente was. that the- : created a: "black legend" of the CIA-as
USSR is no longer. a - serious ? oa rogue elephant out of control," in
"revolutionary force,".. that it has the words of former Sen. "Frank
matured into a "great power" which ? Church. The Levi guidelines on'
domestic security investigations-for the
has responsible international corn- FBI, restrictive executive orders for the
rnitments and goals and is no longer.
pursuing the goal 'of Marxist CIA and other parts of the intelligence
. community, the expanded Freedom of
destabilization and revolution. Information Act and the Privacy Act,
Of course, conservatives were all the 'Foreign Intelligence Surveillance'
along skeptical of detente and of these Act of 1978, internal dissension and
claims for the 'Soviet Union, Long demoralization in the intelligence cam-
before the Soviet, invasion of munity itself, and thecollapse of thein-1
Afghanistan, we were pointing out the temal security apparatus in the. ex-
discrepancies between the' carefully ecutive and legislative branches and at
cultivated image of the Soviet Union as many local law enforcement levels as
a "responsible power" in the West and well?all these undermined otir ability
the brutal realities of Soviet behavior, even to know about and analyze, let
- ? alone respond effectively to, the
narnese aggression in Indochina,. the
. Soviet assistance to North Viet-
dangers of Soviet military escalation;
covert action, espionage, terrorism and
escalation of Soviet espionage efforts
against the United- States, Soviet and propaganda.
Cuban military .involvement in
Of course, the proponents of detente
.
southern Africa and the Horn of cannot admit that the Soviets support
-
Africa, the Soviet military and naval 'terrorism. To admit this well-
buildup,. reported Soviet _violdions
documented fact would imply that the
Soviets are actively engaged in pro-
, SALT I, and even the repetition of ag--
gressive themes' and slogans by Soviet moting violent revolutionary attacks on
Western society?in other words, that
. leaders?all these were ? ignored or
the Soviet Union is not a "mature" or
'covered up- or explained away by the
"
proponents of detente, but were con-
responsible" power eager to become
. tinually- exposed :and emphasized by an established member of the inter-
conservative foreign policy spokesmen national community..
'?:"-Because liberals and the far left ex-: ? y t
I true,
has recently published --.hibit-a strong tendency toward "peace
. thaethe Soviets do want to be sc..'
oved For Rl4 min Ina rqiliknaliyues9aws ic000ittroo
The Terror Netwo*-p--p eea
hmAte other responsible -
which shows in massive . . . . a sta es of the West,._The. Kremlin:
detail the role of the KGB and other 'often refused to look at the evidence or desires respectability as well as the -1
ri.A0c.catAlite.gerviee% in the to consider its implications. because di
n.ninicktir n a ornnr.restr.