REAGAN'S EFFORT TO RESHAPE MAY REVIVE DEBATE OVER AGE

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP91-00901R000500270003-4
• Release Decision: RIPPUB
• Original Classification: K
• Document Page Count: 8
• Document Creation Date: December 9, 2016
• Document Release Date: December 29, 2000
• Sequence Number: 3
• Publication Date: November 21, 1981
• Content Type: NSPR

.1
7F.aciz,
For Release 2001/03/07 : CIA-RDP91-0090
NATIG?IAL
21. November 1981
DEFENSE REPORT
Reagan's Effort to Reshape
Mr-37 Revive Debate over Agt
The President is about to sign an executive order on the Cl/
delicate question of how to balance national security wit
BY DOM BONAFEDE
he Reagan Administration, intent on
revitalizing the U.S. intelligence ap-
paratus, is seeking to assure that the
changes conform to President Reagan's
goals?to combat international terrorism
and other perils to national security.
After several false starts, Reagan will
shortly disclose the revisions in a new
executive order?the third presidential
directive governing intelligence activities
in the past five years. In addition, Wil-
liam .J. Casey, director of the Central
Intelligence Agency, has taken adminis-
trative and organizational measures to
further centralize operations under his
aegis.
On another front, the Administration is
pushing legislation to exempt the CIA
from Freedom of Information Act stric-
tures and is supporting a bill that would
prohibit unauthorized disclosure of infor-
mation identifying U.S. intelligence oper-
atives.
Each of these steps is part of a con-
certed effort to strengthen the nation's
intelligence machinery in keeping with
Reagan's hardline defense posture and
his political ideology.
Reagan's new executive order, cover-
ing the CIA and a galaxy of sistcr
intelligence agencies, could nonetheless
provoke an intense national debate over
the delicate balance between individual
rights and national security. Two earlier
draft proposals, leaked to the press by
antagonists, were purportedly designed to
expand the CIA's jurisdiction to include
domestic counterintelligence, lawfully
the province of the Federal Bureau of
Investigation.
That raised the specter of surreptitious
entries, mail openings, electronic surveil-
lance and iNIAPEOMelitoFtGlil Belifra
and even legitimate business organiza-
tions. It has triggered fears that the "new
CIA" will be like the old CIA, which in a
torrent of headlines in the 1970s was
exposed for illegally spying on American
citizens, exhibiting a cavalier disregard
for civil liberties, participating or conspir-
ing in overseas assassination attempts and
masterminding a host of bizarre, costly
and embarrassing James Bond-like plots.
Adm. Bobby R. Inman, the deputy
CIA director, publicly declared in March
that while the reins on the agency may be
eased, the scope of the proposed changes
has been distorted and exaggerated. Yet,
should Reagan persist in "unleashing"
the CIA, the consequences almost cer-
tainly would be to revive the highly
charged dispute over the proper role of
the intelligence community in a free
society.
The President has already been put on
notice by the intelligence oversight com-
mittees in the House and Senate that the
overwhelming majority of their members
are opposed to any proposals that would
allow the CIA to conduct covert domestic
operations.
On Oct. 30, the Senate Select Commit-
tee on Intelligence, headed by Barry
Goldwater, R-Ariz., sent its recommen-
dations on the proposed executive order
to .Richard V. Alien, assistant to the
President for national security affairs.
Allen and an assistant, Donald Gregg,
director of the National Security Coun-
cil's intelligence cluster, are handling the
issue for the White House. Although the
committee's report is confidential, it is
known that the members, in a bipartisan
agreement, dissented from proposals that
would permit the CIA to engage in
domestic operations and offered several
modifications. An addendum attached to
nent
sent
that
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STATI NTL
mittee on Constitutional Rights. Rodin()
and Don Edwards, D-Calif., the subcom-
mittee chairman, contend that the execu-
tive order falls within their purview be-
cause it would diminish the authority of
the Attorney General and the FBI in
domestic intelligence matters. Both the
the report included the views, mainly in Justice Department and the FBI come
opposition to particular provisions of the under the committee's jurisdiction.
members. order goes," dwards said. "We're trying
On the same day, Edward P. Boland, to let the American people and the nedia
90e200446 10178 Petei5ROP9403 0 getRO (getn0e018)3,4fa r the
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COMPUTER;IORLD
16 NOV,IBER 1981
APPEARD
ON PAGE /
Electronics Underworld
Former CIA Agent Implicated in
By Christopher Simpson
Special to CW
The amazing case of Ed Wilson arid Frank Terpil
the two former Central Intelligence Agency agents ac-
cused of shipping explosives to Libya ? has led to
criminal investigations on three continents, a congres-1
siorial inquiry and a purge of senior U.S. intelligence !
officials in the last three years.
But that may be only the beginning.
Allegations of corruption in the traditionally top-se-
cret procurement of computers and other sophisticat-
ed electronics by U.S. intelligence agencies have been
brought to light recently by new press and govern-
ment inquiries. Such contracts are worth tens of mil-
lions of dollars each year to U.S. manufacturers.
The federal indictment of Wilson, Terpil and one
other defendant has focused on their alleged role in
supplying C-4 plastique explosives and mili.;:ary fuel
thickener (the basic ingredient in napalm) to Libya's
Muammar Qaddafi. Missing from the government's
indictment, however, is the fact that Wilson was em-
ployed by the U.S. government long after he left the
CIA. ?
Interviews with former Wilson associates and a
check of government records reveal that between 1971
and 1976 Wilson was a top procurement officer for a
secret naval intelligence group known as Task Force
157. Former Task Force 157 agents now allege that
Wilson used his position on the task force both, to en-
rich himself and to lay the ground-
work for his later career as an export
"consultant" specializing in _military
technology.
Along the way, according to Kevin
Mulcahy, a former Wilson business
associate, Wilson made a small for-
tune in kickbacks from companies
for which he arranged government
, contracts both in the U.S. and
abroad. Mulcahy, a former CIA com-
puter and electronics specialist hired
by Wilson for his technical expertise,
also told a Washington, D.C., grand
jury that one of Wilson's best custom-
ers was Control Data Corp., the
mainframe manufacturer.
A spokesman for CDC denied that
.charge. Wilson himself is presently a
fugitive in Libya and could not be
? reached for comment.
Approved For Release 2001/03/07
'Foreign In
What exactly
According to e
from former na?,
cers, it was a "human source roreign
intelligence unit" staffed by "clan-
destine intelligence Case Officers." ?
Task Force 157's tasks ranged from
systematically infiltrating interna-
tional maritime unions to collecting ?
intelligence on Soviet nuclear bomb
shipments. It was involved in almost
every major intelligence operation in
the last 15 years, according to in-
formed sources, from the bloody
-overthrow of the. Allende govern-
ment in Chile to Henry Kissinger's --I
secret trip to Peking in 1971. One im-
portant function of the group was
providing secure communications
channels and data processing sup-
port for clandestine operations.
Most Task Force 157 agents worked
for front companies ? called "pro-
prietaries" ? of the Naval Intelli-
gence Command.. These companies
were often "nonexistent corporate
entities ... created by federal offi-
cials under the guidance of U.S.
Navy auditors," according to former
Task Force 157 Agent Gerald Walters.
Two such proprietaries of particular
interest to' the computer industry.
were Pierce Morgan Associates, a
now-defunct 'computer systems
consulting" firm whose offices in Al-
exandria, Va., provided cover for
Task Force 157 agents, and Consul-
tants International, Inc., a Washing-
ton, D.C.-based import/export con-
sulting firm. ?
Wilson's Navy Job
Wilson had a desk and his own staff
at Task Force 157 headquarters, ac-
cording to eyewitnesses. His Navy
assignment included the creetion of -i
a network of corporations, many of 1
which he personally controlled, to
provide cover for sensitive .Task
: -tAtRUP911009041000601027 003-4
continued
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TIME
ON PAGE 16 November 1981
Gaddaffs Western GunsTingers
A Colorado trial involves attempted murder, Libya and the CIA
lor he only thing clear about the attempt-
ed killing of Faisal Zagallai. a Libyan
graduate student at Colorado State Uni-
versity. is that. Eugene Tafoya. the beefy
ex-Green Beret who shot him last year.
was not simply acting on his own. Thus
Tafoya wear on trial last week not only for
attempted murder but also for conspiracy.
although the prosecution is not yet sure
who his co-conspirators were. Was he em-
ployed by Edwin Wilson, the former CIA
agent who is now a fugitive in Tripoli ar-
ranging mercenary support for the Libyan
armed forces? Was the murder attempt
ordered directly by the Libyan govern-
ment? Did Tafoya have any real con-
nection to the CIA, as he claims, or
only with renegade ex-CIA agent Wil7
son? As these questions are explored
at Fort Collins, Colo., during Ta-
foya's trial, which could last a month,
authorities hope, or perhaps fear, that
some light will be shed on the myste-
rious web spun by Wilson that entan-
gles former CIA officials and Western
soldiers of fortune who are giving
support to the radical government of
Colonel Muammar Gaddafi.
Zagallai. 35, the son of a former
mayor of Tripoli, originally came to
the U.S: on a scholarship provided
by the Gaddafi regime. But he soon
soured on the dictator's repressive
policies and became a leader of the
anti-Gaddafi dissidents in the U.S..
and had been warned by the FBI that
he was a prime assassination target.
Fortunately for him, the man who
called at his apartment pretending to
be a corporate recruiter bungled the
job. Tafoya, 47, a 23-year veteran of
the Army and the Marines, who
fought in Viet Nam, fired at Zagallai
at least twice at pointblank range but
succeeded only in blinding him in
one eye. Four months later, the .22-
cal. pistol used in the attack was
found near by and was easily traced
to Tafoya, who was arrested at his
home in Truth or Consequences, N.
Mex.. in April. Tafoya has variously
claimed that he acted in self-defense after
.Zagallai pulled his own gun. and that he
was on a secret mission for the CIA to
warn Zagallai to tone down his criticism
of Israel. As Tafoya tells it. he was at that
time a kind of double agent, working for
Wilson even while spying on him for the
CIA. The agency denies that Tafoya was.
in its employ.
his connection with Wilson is another
matter. After the shooting. Tafoya lived
for three weeks at a 17th century farm es
Late in southern England owned by Wil-
son. - His peisaMpers ifludeal Ftri-
vate teleOM
ing to one of Wilson's former business as-
sociates. In a tape recording seized at
Tafoya's house. a man believed to be Ta-
foya tells a phone caller that he was re-
sponsible for the bombing and is available
for other jobs: "Do you know somebody
that should quit breathing permanently?''
Authorities have identified the man he
spoke to as James Clinton Dean, another
former Green Beret.
Wilson is a former covert operative for
the CIA who helped organize the disas-
trous Bay of Pigs invasion by anti-Castro
Cubans in 1961. lie officially left the Gov-
ernment in 1976, when the naval intelli-
a
a
a
it
the
STATI NTL
Imes quo es some or tame in vol yen as
saying that Americans have been sustain-
ing Gaddafi's yearlong intervention into
neighboring Chad.
John Anthony Stubbs. a Bi itish pilot
who worked for Wilson ta til he was
asked to deliver arms to a ,:had air-
field under siege. told TIME last week
that as many as 45 Americans have
also been recruited to help train Pales-
tine Liberation Organization terror-
ists in Libya. According to Stubbs, the
training operation is based in Kufra,
about 800 miles south of Tripoli, and
run by former U.S. Marine Corps Pilot
Robert Hitchman. who once worked
for the CIA-financed company Air
America and now lives in an apart-
ment in Wilson's villa. Says _';tubbs:
met Hitchman in Saigon in 1972. I
never knew exactly which side he was
working for. When I was in Libya, we
used to play chess at Wilson's villa. He
runs the P.L.O. helicopter tr _lining for
the Libyan government, and he flies
them himself. The Americans he hires
are mainly Viet Nam veterans, and
they work for about $4.000 a month."
When testimony gets under
way in the heavily guarded
courtroom in Fort Collins, a cen-
tral question will be whether
Libya's World Revcgutionary
Committee .was telling the truth
when it initially claimed to have
ordered the murder of Isa isal Za-
gallai. If it did, it probably acted
through Wilson. This possibility
has spurred the Justio: Depart-
ment, CIA and FBI to pursue
more aggressively their investi-
gation of the former operative's
empire. An interagency task force has
been set up to coordinate the cas,, and the'
House Intelligence Committee will begin!
public hearings by the end of the year. Thel
result may be a fuller understanding of the,
old-boy dealings between present and for-
mer intelligence agents. There is a grow-
ing suspicion, as well, that close scrutiny ofl
Wilson's affairs will turn up embarrassing
imtio ? both in the,
; II I; Ai IMW9 ve partici-
pated in business deals with the entrepre-
neur in Tripoli. ?ByWalterlsaacson.
Eugene Taloya and John Stubbs, inset
A web of violence and fntrigue.
gence branch for which he was
working, known as Task Force
157. was being disbanded by
Navy Rear Admiral Bobby In-
man. Wilson tried to persuade
Inman to save Task Force 157 by offering
what Inman took to be a bribe; the admi-
ral, offended, immediately decided to
abolish the operation. In 1980 Wilson was
indicted on charges of illegally shipping
explosives to Libya. He has been a fugi-
tive, mainly in Tripoli. since then. In a se-
ries of articles over the past five months,
the New York Times has described how
vaclx RA,
Wilson in Tripoli, as well as notes from
what appear to be conversations with him.
64-WitiiiairJUktieflb
nology and trained personnel to the Liby-
an armed forces. Much of their business
? t - ? t a r
- ? ? ? - ? - ? -
0
Approved For Release 2001/03/07 : CIA-RDP91-00901R00
WILMINGTON SUNDAY NEWS JOURNAL (DF.,)
15 NOVENah_zt 1931
STATI NTL
enottat'triteler information like /his 4
' and that is what we did." --
, . to the prosecutors working the case
ibyans
.1. 4
4pT
ex ra io
?
selling transport aircraft and other
military hardware to Libya. (It is
'illegal to lobby fora foreign power
without registering with the
-Department of Justice.) ? ?
The investigation, by the Senate-
: and ,the'Justice Department, ended
last year: The ban on military
, exports to Libya was never lifted
- and Carter by that time had agreed
to registef as a foreign agent, main-
taining all along that the money
:from Libya was a loan. 0
, .
By JOE 'I'RENTO- .
-- ? Staff reporter ? ? -.5. t
Copyright 1931, The Neors?Journa1 cot
?.:.?
WASHINGTON Federal prose-
cutors ignored information.thai
Billy Carter may have received
$420,000, not $220,000, froth the"
Libyan government and failed- to
investigate reports that he had.dis,
cussed a machine-guir?deal -with
renegade CIA agent Frank Terpiii.7-,
Carter Visited Libya _twice
1978 and 1979? and publicly advo-
cated Libyan and Arab causes while
his older brother, Jinarny,-was pre's-
ident. While looking intcrwhether
Billy. Carter's involvement-1;6qt
Libya constituted- acting- as-an
? agent for A foreign government
federal 'investigators,-determined
that the Libyans had "loaned Billy
:Carter ;200,000 and Tilifeitictlixi
$20,000 more to coveraexpenseS
related to a visit made by a'Libyan'
delegation to the United States. The
so-called loans. later_became:a
media field-day briinght.
? embarrassment to the Carter White
House. ? .- ;14?':?.7;."???77:?71:."-,',3 .
- But- there are fresh`rePorts that
Billy Carter got much more from
the Libyans. The :Sunday News
Journal was told last week that the:
? National Security Agency knew. in
May 1930 that Carter had received ,
-arr addi tional? $200,000 from the
Libyan government,. but that proof
. of that payment was withheld from
, investigators on the grounds. of
...national security,
-Carter was AunderinVestication
or. failure to- register as. a Libyan
4-,agentanaid allegations that he4t4d
'attempted tri'influerinea,theacarter
admini3traticm to lif.a.baaa'against::
Tile information that-Carter was
also involved with Terpil came last
week from Justice Department
documents_ The department did
nothing to determine the extent of
Carter's dealings with Terpil, and
prosecutors in in the Terpil case say
that his link with Carter was never
adequately explored. ?
? Carter met Terpil at a dinner ?
and was photographed with him
watching a parade ? on his second
visit to Libya in 1979. A few months
later, in January 1980, Carter told a
Justice Department official and an
FBI agent that Terpil had recently
contacted him about getting lots of
machine guns for Libya.
The Justice Department official,
Joel Lisker, was interviewing
Carter as part of the investigation
of Carter's failure to register as a
Libyan agent.
Lisker, now chief counsel for the
Senate subcommittee on internal
security and terrorism, said he was
"very much aware" of the investi-
gation into Terpil and another CIA
renegade agent, Edwin P. Wilson,
and believed that the Carter's state-
- ment was important enough to call
him back to for more details.
'But Lisker said that when he did
call back, Carter denied making his
earlier statmentspbout Terpil. -
Lisker sent the reports to Assis-
tant U.S. Attorney E. Lawrence
Barcella Jr' .the key prosecutor
looking into the activities of Wilson
and Terpil, activities that include
gun-running-and training and
recruiting terrorists for Libya.
Barcella says he didn't follow up
on the memos because he thought
that it was Lisker's responsibility.
Lisker said It is standard proce-
.
Details of Lisker's meeting with
Carter and Carter's statements t
. about ?Terpil are part of a report
filed by FBI Agent Richard Fugate
and Lisker obtained by the Sunday
News JournaL ?-
Carter; reached late last week in
? California, confirmed that he had
met Terpil in Libya, but vehe- ?
- rnent/y denied ever telling Lisker,--i
.anything about machine guns: :,!
Using expletives, Carter called
Lisker,_now a lawyer for. a Senate".
committee, `.`probably ;:a. one of 1
the biggest liars I have ever met in:;
-my life. That memo was written 14
or 15 days after he questioned me,
New findings reveal--.4---::
that probers over-
looked new loan and
-Carter's talks with -
CIA renegade Terpil
taking no notes. That document that
Lisker, wrote is probably the big-:
gest bunch of s--- ever printed by a
? - government official." ? - a ?
? a Carter said his laywer had::
instructed him not to say anything :
about the gifts or loans he got from
Libya. ? . _
- Through reliable sources at the
highest level of the U.S. intelligence
community, the Sunday News Jour-
nal has learned that the National
Security Agency, While monitoring
? communications involving Terpil--
and Wilson, found out about the sec-
ond $200,000 checgaCarter had
? received from the Libyans, a check,.
written on a London bank. -
? . Lisker said that he, too, had heard
a6out the second check but. that this .
and other details of the Carter case
: were kept from investigators
because the CIA and the National
Security Agency claimed it could
compromise intelligence sources. ::?7
The Sunday News Journal has
learned that Bobby Ray Inman,'
then head of the National Security
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0003-4
Approved For Release 2001/03/07 : CIA-RDP91-00
ARTICLE APPEARED
ON PAGE ./Y,
Lase)/ Ligh
7. By ROBERT C. TOTH,
Times Staff Writer
? WASHINGTON?Despite an ar-
rogant manner and a tendency to
mumble, CIA Director William J.
1Casey has come a long way, even
.his critics concede, in restoring mo-
rale at the once badly shattered
Central Intelligence Agency. ?
1; And spending for U.S. intel-.
ligence activities has been in-
r.eased 10%. even though Ameri-
pn agents overseas have not exact,-
ly been "unleashed" as President
Reagan promised during the -MO
cc lion campaign.
. U.S. agents conducted about 10
undercover operations in the final
year of Jimmy Carter's Adrhinistra -
Lion. the same number as are now in
progress.
"There is certainly more enthusi-
'3srn for (intelligence). operations
now." one official said. "But they
arc limited by budget constraints.
congressional oversight and the faCt
that this Administration does not
yet have a coherent ,foreign policy
which covert operations would be
used to supPort, ?
"When they get their policy act
tegether.'' this official predicted.
"there will probably be more opera-
tions. The Carter ? Administration
needed a moral rationale for such
things. Until Afghanistan. they had
none and there . were virtually no
clandestine activities for the .first
!lime Carter years.
Excuses Not Needed .
"They saw the Soviet invaSton as
immoral, so gun-running (of So- I
viet-made arms from Egypt) to the !
Afghan rebels was justified. These
(Reagan). people don't need such I
excuses." the official said. "
But even as Casey and Reagan.;
have moved to reinvigorate the na-
tion's intelligence agencies, new
problems have cropped up and some
lingering, old problems have taken
on new twists. For instance:
?The sordid "gun for hire" ex- I
ploits. of such former:Central Intel-
heence. agents as Edwin P. Wilson..
who is accused of exporting terror-
ist equipment to LilAya,etiave raj.geA
questions about th~ltirg90
men once they leave- the agency.
especially, those who use expertise
LOS An-lZ,LSE; TIIIi
15 Noveesh,,_.,r 191
ing a FilT.,UpOr
but: toblems l'Or.
revived speculation about Russian
"moles" inside U.S. intelligence
agencies.
?The leaking of U.S. secrets to '
the press, although greatly reduced,
has yet to be stopped.
The most recent case of leaked
secrets found White House "hard-
liners" pitted against CIA "liber-
als," reversing mast patterns, amid
altriost comic confusion.'
The case involved a CIA plan, ap,-
. proved by the White House, to pro:
vide several hundred thousand dol-
lars to political activists in Maurita-,
an Arab country in northwest-
ern Africa, to Counter money fun-
neled to Mauritania by Libya. It was
laid before the House and Senate .
Intelligence committees in June. .
House Democrats objected to the :.
operation and wrote a rare letter of
protest to Reagan. whereupon the
proposal was killed. ? ?
;
Existence of the letter was leaked.
a month later by White House offi
cials, sources said, in an attempt to
embArrass CIA leaders, including ?
Casey and Deputy CIA Director
Bobby R. Inman; ,who opposed ef-
forts Co give the cIA. ? domestic
spying authority.
/ The White House Officials, led by
Richard V.. Allen; national security
adviser to the PresIderit; have
puShed for a "stronger", executive.
Order to the intelligence agencies to
satisfy the "unleashing" promises
made in the campaign and to im-
prove U.S. counterintelligence Ca- (1
pabilities.
The comic aspects then began. A
,Democrat on the House Intelligence
Committee, based on second-hand
knowledge, told a reporter the CIA
plan- was aimed at overthrowing,
perhaps even assassinating, Libya's
Moammar Kadafi. A White House
official told a reporter, wrongly, ?
that: the target country was Mauri-
tius, which is a black southeast
African country. The correct coun-
try then was identified to calm the
infuriated citizens of Mauritius.
"We shot ourselves in the foot
with three countries over a plan
'that was never_approyed," one in-
r. Redeaseolifialde*.LOWea.Ctik-R
KGB must still be.laughing."
Radic
,order o
,cies, WI
sought,
made. N
officials
,thority I
ated do
on the y
better di
getting I
spying
fears alai
prospective gain. ,
Moreover, the FBI's counterin-
telligence division "does not need,
any unleashing," a senior FBI offi-
cial said. "We have all the scope and
range of authority we need to per-
form our mission." He also implied
that he thought the FBI did not
need any help from the CIA in its
work. ' I
Among congressmen on record
against such moves are all ? the
members of the Senate Intelligence
Committee, both Republicans and
Democrats.. As Sen. Malcolm
Wat-
lop (R-Wyo.), put it, Reagan will
be "pilloried': if he exposes "law.
abiding Americans' to CIA scrub-
fly."
Concerns.of Congress ,
, At least one more draft of a Rea-
gan executive order for the CIA.
which is intended to replace the
1978 order issued by Carter, is being
written "to reflect the concerns of
Congress."- according to senior in-
telligence officials. Its release is ex-
pected within a few'weeks ;
Casey must take some blame for ,
the controversy. ? Although he'
-backed the intelligence communi-
ty's view against the White House ,
in the end, he long failed to heed
warnings that Congress was not
prepared to loosen the reins very ?
much on intelligence activities. ?
This was .part of Casey's larger
failure to take Congress seriously
during his first six months on the
job, congressional and other sources
said. He usually sent Inman, a con-
gressional favorite and highly re-
DPIalspected_pboie.sai
lawmakers, 11:14M7403-4
. "It was a mistake to rely too ,
?
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ARTICLE APPEARED THE WASHINGTON POST
10 November 1981
ON -PAGE )4-1
Morocco Seeks
Defenses Beyond
Wall of Sand'
By Howard Simons-
and Edward Cody.'
WastLigtort Yost Foreign servfee
RABAT, Morocco J---'-iFrom the
air, the sand walls built by Morocco
to keep out Polisario guerrilla raids
seem to stretch across. the- western-
Sahara desert without endr, puncttne
ated every three of:Jour :miles by
forts that look like those children
make on beaches. . ?
Most of Morocco's Army in the
contested territory 'of the, former
Spanish Sahara 600 Miles south of
here sits dug into the-miniforts, be-
hind 400 miles of land mines and
surrounded by barbed 'wire and ra-
dar.
Its mission is to protect the,
103.000-square-mile s,. territory,
claimed by the Libyan- and Alger-
ian-backed Polisario as the Saharan
Arab Democratic Republic but ab-
sorbed by Morocco as its rightful:;
heritage from precolonial times. :I
"The security belt is not a i'vlagi-?
not Line, but rather an obstacle to
infiltration," said Col. Naji Mekki,
French-educated professional who
fought against Israel on the Golan
Heights in 1973 arid now commands.
troops guarding a large chunk of the
nine-foot-high wall.
As an obstacle, in the assessment
of Moroccan and foreign military
specialists .in this North . African:
country, the wall has indeed halted,
most infiltration into the main pop-
ulation centers that King Hassan II
has defined as the "useful Sahara."
La the last few weeks, however,
the six-year-old war for control of
this Arab waeteland has shown signs'
of expanding beyond infiltration and
Polisario's traditional hit-and-nn
raids.' As a result, Hassan is seeking
increased military and diplomatic
help from the United States. And
the Reagan administration, in re-
ponse, is considering providing U.S.
training that would add search-and-
destroy commando tactics to the
Moroccan military's niostly static
defenses.
; Francis J. (Bing) West Jr., assist-
ant secretary of defense for interna-
tional security affairs, said during a
. visit in Morocco with a 23-member
U.S. military team that the admin-
istration will, try to provide U.S..
, radar detection and jamming equip-
. rnent, which is used to defend
egainst ground-to-air missiles, for
Hassan's American-made F5 and
French-made Mirage I warplanes.
In doing so, West appeared to ac-
kept Morocco's charge that Polisario
has deployed Soviet-made SAS mis-
siles since a major battle Oct. 13 at
the desert outpost of Guelta Zem-
mour, gaining the capability of
downing even high-flying Moroccan
ground support or reconnaissance
plane-s for the first time Since the
conflict began.
Western military experts. who
have been following the war raised
the possibility that the five Moroc-
can planes shot down around Guelta
Zemmour might have been hit by
SA9s ? beat-seeking missiles that
do not use the radar guidance de-
vices that the U.S. equipment is de-
signed to. thwart. ? ,
Polisario guerrillas previously had
used only ? shoulder-fired SA7 mis-
siles, which are unable to hit high-
flying Moroccan reconnaissance air-
craft. The SA9, according to U.S.
experts, is an upgraded version of
the SA7, with greater speed:and al-
titude. Its introduction, along with
.T54 .tanks reportedly used at the
STATI NTL
Guelta Zemmour battle, represents!
What Moroccan and foreign military'
experts here view as a significant
increase in the quality of Libyan-
supplied weaponry for the guerrillas.
In a conversation .with the head of ,
Morocco's Air Force, Col. Maj. Mo-
hammed Kabbaj, West strongly eug-1
gested that part of the respense
should also be a shift to more aggres-
sive and mobile tactics by Morocco's
150,000-man armed forces and that
.the United States is prepared to
offer training to meet this end.
"We can train General Dlirni's
forces," West was overheard saving
to Kabbaj in the bar of Fez's best
hotel. He referred to Gen. Alened
Dlimi, chief of Hassan's armed
forces.
As an example of. what should be!
done, West cited an Egyptian be-
hind-the-lines raid in which r om-
mandos destroyed a Libyan air base ?
during the brief Egyptian-Libyan!
border war of 1977.
? Thenecalled to a telechone in the'
Fez hotel bar, West was overheareL
talking with an aide in Rabat and:
refer:ink, to CIA Deputy Director!
Bobby Inman. Deputy Secretary or;
,Defense Frank Carlucci and 'the!
station chief," the designation given'
the to CIA officer in embaisies
roa It was not clear wheen-er!
,these references meant the CIX-!,
would play a role in any U.S. Milltary aid.
- I
- - -
Alth-diFig the extent arid nature of
U.S. help are still under negotiation,
Hassan has urged increased U.S. i
help for the- war, particularly eince
last May's defeat of president Valery
Giscard d'Estaing in France robbed
him of a personal friend and reliable I
military ally. In additiert, the admin. I
istration in Washington has signaled
its readiness to back- U.S. friends in
the region.
"The leadership of the Reagan
administration has stated that your i
country's concerns are, my country's 1
-
nere.
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5 November 198.1
,
Sometime soon, CIA Director
liarq Casey will hand President Rea4;;;;
gan !a] draft executive 'order setting
new ,operational guidelines for 'U.S.
in-
telligence agendas. Ostensibly, it will
Suppression at the CIA
fulfiKCandidate ..Reagan's, campaign
promise. last year tci
erect =restrictions" that .shackled U,S.,
intelligence in the Carter:Church 'era;
In truth. thanks-tO .:SOtrie:-adroit
structionism from. Within the CIA it,
self, it will undo very little. The under-.
mining of an - earlier' draft which bor- '
rectly stressed the-.vital -mission arid
objectives of the.intelligience agencies
represents a cautionary tale.
Scheduled for - overhauling is
Jimmy Carter's Executive Order No..;
12036,..' which grew' out of Senator
Church's witchhunts of the early
is,rife withrconfUSing legal re-.,
strietions. For. instance, an American ?
cititen entering a Soviet embassy can-
not ;be .investigated without a priori
knoWledge that ' he is 'engaged in a
crime against the U.S. This limitation
no :doubt facilitated the passage of .
U.S. satellite secrets to the Soviets at
their Mexico City embassy. by an:
American citizen not long ago... Re-
stribtions on counterintelligence oper-.
atinns-by the FBI, CIA and military
intelligence have made it easier for
the?Soviets and their surrogates, such
as the Cuban DGI, to operate within -
the:U.S. itself.'U.S. ability to conduct-
coVert action abroad was almckst elim-
inate&
One of Mr.. Reagan's campaign
prtimises was to get U.S. intelligence
bade into business. It was felt that a
turn of the knob on the door to the CIA
director's crffice would do the trick. It
wasn't that easy. - ?
Mr. Casey said at the Start that he
wanted to move slowly and asked for
no immediate changes in the legal re-
strictions. He kept many of the top-
ranking officials appointed during the
Carter era, who were at ease with the
STATI NTL
legal restrictions and saw little need
to improve the agency's performance.
In May, a new executive order was
drafted and ready for the President's
consideration. Gone were the "shall 1
emphasized in positive terms the role .
and. responsibilities of the intelligence
cominunity.. It pledged that the agen-
cies would uphold the laws of the U.S.
T. and act in the least obtrusive manner
in gathering intelligence. It also prom-
ised to guard against the infringement
, nots" of the Carter era; instead, it
? of American national security and
'constitutional rights by Soviet and
other hostile agents. In a short five
pages that draft order would have
closed the hook on the 1970s witch-
hunts and given much needed direc-
.
tion to our intelligence services.
The May draft, however, was never
- shown to President Reagan -to our
knowledge. Many holdovers from the
Carter administration opposed the
changes. According to one close
source, CIA. Deputy Director Adm.
Bobby Inman?originally a Carter ap-
pointee?threatened to quit if Presi-
dent Reagan was even shown the May
draft order.. Faced with such opposi-
tion, Mr. Casey told the policymakers
. to go back to the drawing board. .
The latest draft, our sources tell us,
merely sticks some positive improve-
ments into the "can't-do" format of
the Carter order. This plays into the
hands of the anti-CIA forces in Wash-
ington. who v.111 make a shooting gal-
? lery of any loosening of the Carter-
Church fetters, dragging out their
standard claim that "abuses" will oc-
cur.
The President will stand far-less
chance of being picked apart if he is-
sues an order telling the- intelligence
agencies to get busy gathering intelli-
gence to counter the world-wide secu-
rity threat that is posed by the Soviet
KGB and its terrorist offshoots. We
urge him to send Mr. Casey back to
retrieve the May draft. If anyone in
the CIA wants to resign, so be it.
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ARTICLE APPEARED
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WALL STEET JOUT.:.\1,
2 Novembr 1981
STATI NTL
Reagan's Plan to Loosen Reins on CIA
Raises Fears of Corporate Infiltration
By GERALD F. SEIB
st(,frnep.rterof THK WA1.1. STREKT JOURNAL
WASHINGTON?The, Reagan adminis-
tration has kicked up a fuss by proposing
to give the C,entral Intelligence Agency
new freedom to infiltrate and influence do-
mestic organizations..To worried civil, lib-
ertarians, the proposal conjures up images
of CIA agents joining and subverting dissi-
dent political groups.s ? ? ?
- But some lawmakers. and analysts warn
' that the Reagan plan would open the door
to CIA infiltration of some other. important
organizations: U.S. corporations.
In itS quest for information about for-
eign countries, these analysts say, the CIA
could be tempted to plant agents in U.S.
companies with overseas operations. Or
the CIA might decide to place an agent to
sabotage business deals abroad that the.
government decided weren't in the nation',s.
best interest. .
Such moves would be possible under the
controversial proposal made by the Rea-
garsdministration, critics say. "The focus
of much of the corrunentarY liaa been on
s the threat it poses to' political groups."
- safs Kenneth Bass, who oversaw intelli-'
gence policy, for the Justice Department
during the Carter administration. "My ex-
perience makes me- think the most likely
targets for that activity would be multina--
tionals."
Members of the Senate Intelligence-
Committee share his concern. The commits
tee has recommended that the Reagan ad-
ministration change its plan, and Senate
staff members say that worries about busi-
ness privacy weighed heavily in the Sena-
tors' decision to protest. "Their concern is,
wide and deep,." says- .one Senate aide..,
"This is a big issue, this business infiltrae,
lion." ? ?? .??-?
Economic Intelligence
The proposed changes are part a a
draft executive order on intelligence agen-
cies the Reagan administration has sub-
mitted to Congress-for comment. The pro-
posed order would allow the CIA to join do-
mestic organizations and, with the Attar- ,
ney General's approvals try to influence .
their activities.
? ? '1
The current executive order on intern- i
gence, signed by President Carter, specifi-
cally bans attempts by intelligence agen- )
des to influence domestic organizations. It
allows infiltration of domestic groups, but :
only under carefully defined procedures,
that are eliminated under the Reagan; p
posal?
CIA officials assert that they generally
aren't interested in domestic spying. And
Mr. Bass acknowledges that the Reagan
administration mightn't have infiltration of
businesses in mind, "It's probably much
more innocuous ? than is its intention."
he says.
But he notes that U.S. foreign-policy
makers are increasingly concerned about
international economic matters. ? Eventu-
ally, he worries, the CIA "would find that
it-was being asked increasingly to provide
- economic intelligence to policy makers,
, and would find that the easiest way to re-
spond would be to come inside. into Amen-
can corporations."
For example, intelligence analysts say,.
the CIA might decide it would like informa-
tion about the Soviet Union's probable food
needs in future years. One way- to get in-
formation would be to have an agent in a
grain-marketing company that does busi-
ness with the Soviet Union.
'Or, congressional aides say, the CIA
. might decide that it would like to stop sales
of U.S. products to unfriendly countries. It
might be tempted to hire operatives inside ,
a company to try to sabotage such transac-
tions. ?- .
'Not Far-Fetched'
"It's not far-fetched," says Jay Peter-
zell, research associate at the Center for
National Security Studies, a research
group that has warned in the past of the
risk of business surveillance. "Corpora-
tions go against what .the government
'thinks is the national interest all tile time.'!
Over the years. though, some compa-
nies have cooperated with the CIA volun-
tarily?and very quietly. They have shared
information or allowed CIA analysts to talk
to employes who have, been abroad. ?
But cut. infiltration of companies would
be dramatically different, analysts say, be-
cause the businesses wouldn't be aware of
the CIA's activities. "No matter how pa-
triotic the business concern, there has got
to come a point where it feels there is in-
formation it can't share with the CIA,"....Mrs
-Bass says.
The Reagan administration's proposals
still could be altered before they take ef-
fect. The draft executive order won't be of-
ficial unless President Reagan signs it.
And there are signs the administration
may heed the objections Congress is ex-
pressing over the domestic,-infiltration pro-
posal and other plans to loosen restrictions
on domestic CIA actlyities.s .-
Late last week, Rep. Edward Boland
D., Mass.), 'chairman of a House Ir telli-
gence subcommittee, sent a letter to sdru.
Bobby R. Inman, the CIA's deputy direc-
tor, urging that the agency's domestic cov-
ert action be restricted in scope, appsoved
by the President and reported to Congress.
Rep. Boland also objected to allowing the
CIA to infiltrate domestic organizations.
Among other things. he prefers maintain-
ing a distinction, between the CIA, which
conducts intelligence-gathering operations
overseas, and the Federal Bureau of Inves-
tigation's domestic activities.
. Rep. Don Edwards .(D., Calif.), chair-
man of a House subcommittee on constitu-
tional rights, said last week that he has
"reason to believe" the administration
soon will propose a new draft reflecting
some of the changes recommended by the
Senate Intelligence Committee. But, notes
one Intelligence Committee staff member,
"there are no guarantees" that Congress'
suggestions will be followed.
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