FROM THE DDCI

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP91-00901R000600040006-5
• Release Decision: RIPPUB
• Original Classification: K
• Document Page Count: 18
• Document Creation Date: December 19, 2016
• Document Release Date: November 15, 2005
• Sequence Number: 6
• Publication Date: January 1, 1977
• Content Type: OPEN

Approved For Release 2005/12/14: CIA-RDP91-0Q901R000600040006-5
FROM THE DDCI
On 5 July of this year I asked the President to accept my
resignation as Deputy Director of Central Intelligence effective
1 August.
It was a most difficult decision. We have successfully come
through some difficult times together in recent years. More change
looms on the horizon, and properly so. Dealing with these challenges
will be an exciting task. But in the end, having weighed all the
factors, I concluded that it would be in the best interests of the
Agency and the nation's intelligence effort if I stepped aside now
to facili-tate the Director's task as he prepares toinake decisions
about new organizational forms and the kind of new leadership that
he will need to carry out his future plans.
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 . Approved For Release 2005/12/14: CIA-RDP91-00
The Director of Central Intelligence confirms that the
Deputy Director of Central Intelligence, Mr. E. Henry Knoche,
submitted his resignation to the President on 5 July, to be
effective on 1 August 1977. The President has not yet
nominated a successor. There are no plans for forced retirements
or removals of any top CIA officials. There are no plans for
major changes in the CIA organization at this time.
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 2 A VC'r_P APPEARED U.S. NEWS & WORLD REPO r
' ` -- roved For Rel s4 d / 114: CIA-RDP91-00901 R00060004
Washington Whispersl
Behind the surprise resignation of the
Central Intelligence Agency's No. 2
man, E. Henry Knoche, is a bitter
controversy that pits the Agency's pro-
fessional intelligence ranks against the
new Director, Adm. Stansfield Turner.
The quarrel centers on a plan by
Turner to overhaul the CIA and place
his own people in charge of clandes-
tine operations.
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 Approved For Release 2005/12/14: CIA-RDP91-00901
NASHVILLE, TEHl.
TENNESSEP t
141,842
g-234,0'36
U1 81977, 1
,.. y
J
r%U
t h Can~ress'create a "czar" who
,:._.-
. come. into conflict with the new;'
.CIA'-direct '- "' Adm. Stansfield One of the plans wiiich'A.dmiral t
Tiirni ris reported to be considering is i
iagency:: who, has.-run , its day-to-aay '~Ilr-- : ~~ ua~4 1+aua+ rj~r _ . -
operations since 11976,, is -supposed to;`, to '
No.=`2 .man at'the Central Intelligence;--_i, Y ngs, . r.. ,, .
`;Agency, Mr: E.~-Henry Knoche, is, . spoiise.ifordered to do something he
:considered illegal or unconstitutional .
.ed.withsecre ,.. rumor: He said he would.have three choices
And during nis=conf-u~zriatioii hear-;
a ? THE RESIGNATION last week of. the
lif Knoche was` asked his re=c
1VIr: Knochewas. an' unusual top level intelligence reports -so that they pre---
-.
... - , ai:_a.L C,...rn. 01a E , -rccantPA nnlv:one. viewDoinL The czar's
-.tion,.Mr. Knoche Ieftno clue.....:. r __ wouldbeinaposition tohomogenizethe -
Admiral 3'urner's.prograrris and poll- : X Some have`questioned whether such,;.
ties, but would not be sperificabout the .: centralize l control : would only- make= =-
disagreements:'_If a letter-written- to,
C -these agencies.even-more susceptible
CIA employes explaining his' resigna- ' to abuse. For one example, the czar
.
said he had disagreed- sharply- with-' men l+ a~ _ y
L. But the: reasons for Mr. Knoche'S would exercise direct control over the
resignation are still hidden deep in the ; entire intelligence community - the
shadows. Sources; who speculated CIA,: the Liefense and- State. depart-.': .
' _ = " .
others would follow Mr. Knoche's lead, " ' ts' intelligence operations.
agency's analysis- division; msceaa:';oi 1r' =unpa _L-V J ava
its clandestinv.;,seiice. Manyob- beastupen
-servers : hays thought - that the CIA s
major troubles.: stemmed from the , r- It is not, mown whether Mr Knoche
d Admiral Turnerion this-mate
"
dirty oppose
agency'spropensitytoengagein
r tricks" operations These observers r ter. Asa careeranalyst,.he mighthave
mniighr su*d 'a n an-- would limit the -
ro
p
coin y
as'a sign that the: agency was-snit tang, r nil oversig
-however;.Slightly, ' to, a more proper ;The committee members should find
Knoche is `ttin
M
h
CIA administration was seen by many = nation repor e y a =
rise
t mittees b sur
h
? Influence them. , ,i.. 1. ;. .:..,
'Therefore, Mr. Knoche's rise in the hY M ? he is:Ieavin0. His resig-'
t dl -t ok the congressio-_J
foreign countries, ra er ry
N ~- .: a' ? _ :. And the trouble is that no one knows- ;
r
:cal,: economic and--military trends.in no p -
th thant g to - ~.
in
~<
. have argued that the CIA s proper
was to analyze:. and `understand politi- - scope of this country'sintelligence and-T~~
ovide necessary-diversiLty_ ?. "
t
r
Z~ .. _ ~. _ .:.a ..~ ,:r . < .
course OUt: w
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 STAT
Approved For Release 2005/12/14: CIA-RDP91-00901 RO
PITTSBURGH POST-GAZETTE
iB JULY 1977
1 _- _ _; i .. >. Ara T .1 -? S~+ +iO-~ t f- ~~ .? ~[ 1' .
,rf=~+~,~ L1 y` . L Staru rid Turner career of; cer y~tc assOCL3ted wi h St's
C' h: ea,::~e director of the Central : _, abuses. Ile has_ been opposed to both
+`ts lU nca R ncy, he faced the ,Doer-,'... Turner's, self a tandizement and his .
n clesc bed
fLCi X2s bee
t
"
i
,
G'_' t isk of oil i!:g CreS'tinili_y to those in- - Maria e?ii.'n
al;; es of the past." It w?s not enough to The Whate House had begun to evalu-. .
jive the nation with the ir_ipresson that.'._ate the Turner plan-andto cuestionn its
the CIA had once behaved as though it worst effect, the homogenizing of iarejl.i-
retained the Mafia as general counsel. "gence estimates now dispersed among =
The hard arrroach of a houseclean- . the Na ioual Security Agency, the. CIA
s
19
:
g at b sadquai Hers was expected from and D erse acid State depat:nent
? i ticent Carter's original nom iiiee for . Thus Mr. Carter's substitution of an
rrector, Theodore C. Sorensen. But the unknown , military-figure for a proponent
foil her Kennedy aide was beaten back of solid reform. has become a personal
by CIA friends in tae Se_,ate. embarrassment to himself. The coatro-
No one knew what to expect from versy Leo eoverbas become an addition-
Adm. Turner, the Sorensen substitute. As al obstacle to legislative safeguards
it turns out he has followed his own path, against abuse by intelligence gatbera s. --
atte Lpt_ing to manipulate tbe consider- To restore public faith in the- egen-
-'ble public pressure for re-form into cias and. in be Iuo~tion of intelligence,
broad -reorgamzzatio'i of the nation's Mr. Carter must:show a fresh co laanit-
f" iL?gence agencies under a single rent to the unfi-nishecl business-of true
directory p,'presuinably to be occupieif refoi-rx. He has he chance to do this in
-
. by 's self.
His course has left most guessing
hjle satisfy g none. But those who are,
royt 'sgruntied, members of the intelli-
gence establis:=ment, are having their
felings aired with; the resignation of
CIA. Deputy Director E. Henry Knoche, a
-.:. _ ' te' "
?
stiarc ins for ~ Sr. Kn-Lhe's S1-Mess0r. `i
It wilt be' a grave mistake and a
missed opportunity if Mr.- Carter
chooses, as he appears about to, a deputy
director from among the vested ranks of
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 Approved For Release '20p,*"12Ii)i~~dl~-R-b 91-00901 R
P Z3
WASHINGTON POST
rNwlaid Evans and Robert Novak.
nite,11,111"gence Sigfta'ls:
A Defeat for Turner
Rejection by President Carter of CIA claimed Foreign Intelligence'Advisory
Director Stansfield Turner's bid for Board, Turner has powerful allies in
control over the National Reconnais- Congress. The Senate Intelligence Com
sance Office (NRO), one of the nation's mittee is working on a reorganization.
most important spy agencies, signals at that favors Turner's centralization
least temporary decline in Turner's plans.
soaring bureaucratic power. Moreover; the President and the Sen-!
That rejection, not yet announced, ate coininittee reached informal agree-1
was decided on late last week when De- meat several months ago to ? work to-;
fense Secretary Harold Brown and the gether in reorganizing the CIA and the
military high command convinced top entire intelligence community. The
White House aides that the Pentagon Senate committee is now leaning
must retain control over NRO's esplo- toward complete transfer of NRO
nage activities. These include such es- budget and operational authority from !
sential spying operations as picture-tak- the Pentagon to the Director of Intel.li
ing from high altitudes by satellites and gene.
U-2-type aircraft, sampling air particles Nevertheless, Turner's rapid escala-,
and intercepting communications. tiara in a brief four months to become a
A compromise has been pieced -to- Carter confidant has been slowed, a po-:_
gether, at Brown's suggestion, that will litical fact transcending the battle over
give Turner partial control over NRO's control of NRO. A part of that decelera-
budget. But as one of the President's tion was bad staff work inside Turner's.
chief advisers told us, "Not even Stan office, which trapped him in an embar-;
Turner could pry NRO away from the rassing mistake last week that the Pen-:
military. It's the life-blood of their war tagon has been at pains to point out.
planning." The General Accounting Office, the
The battle swirling around President congressional watchdog agency, asked
Carter involves NRO and other parts of Turner about the Pentagon-approved
the pending intelligence reorganize- sale of $1.2 billion in highly specialized
tion, embodied in options called Presi- radar aircraft (AWACS) to Iran. In re-
dential Review Memorandum ' No: 11. sponse,. Turner sent a highly publicized
There has been no fiercer struggle in written reply that certain .top-secret
the young Carter administration. Mem equipment on the aircraft could jeop-
orandum No. 11 went to Carter on July ardize U.S. security. Infuriated by this
13, with strong indications that he was flanking .. attack, Defense Secretary
leaning toward giving Turner what he Brown telephoned Brzezinski to say
wanted: overall control of NRO, with that none of the seven AWACS planes
power to dictate use of its "assets: contained the top-secret equipment (a
coding machine). - : = - -
Brown's counterattack gained the That's not all. Turner inherited a va.. tt
)batting of Budget Director Bert Lance bureaucratic empire torn to shreds by
and National. Security Director Zbig--
repeated congressional investigations,
niew Brzezinski: Their potency post- by alleged confessionals from ex-
agents, the decision and then persuaded agents, by.exploitation of politicians
the President that, except for budget- and by suspicions of allied intelligence
ary oversight, NRO should stay with agencies that it is no longer secure. Mo-
rale problems he inherited four months
The defeat for Turner mayo prove ago have lingered and even multiplied.
temporary. Jiaving played a major role
in killing the President's widely ac-
Crx
control over N-RO because clandestine
operations in the old style are now
passe, no longer produefl.v& and totally
unacceptable to frightened: politicians.
Turner flatly denied that allegation to
us. Although his own study of all.
present CIA undercover operations has
produced some deficiencies, he added?,
it has revealed no major mistakes.
But the form taken by Turner's study
of clandestine operations, has produced
new anger inside the CIA. Turner gave
his proxy to a private management con-
sultant named Robert I). (Rusty) WWil-
liams, with a $417,5O(( government salary
and carte blanche powers to hunt:
through the darkened closets of secret
.operations. -
Fairly or not, Williams is now bit-
ingly referred to as "super-sleuth" by
old CIA bands, some of whom are con-
vinced Turner means to name him to a,
permanent CIA job near the top.
Added to these morale problems was
last week's leak that Turner had ousted
longtime CIA professional Henry
Knoche as deputy director. Turner told
us he had nothing to do, with the leak
and deeply resented it. He wanted
Knoche's departure-and that of per-
haps many other senior, officials--to.
await the President's final reorganiza-
tion plan. .
While not responsibly Turner was
damaged by the leak--damage that
reached into the Oval Office itself",.
where Jimmy Carter bad often been
heard to praise Knoche. Coincidentally,
his first defeat on the bureaucratic re-
organization followed soon after.
--+ 014Tf,FialdE.ciisrpTlxs,Icu. -
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 .41tTnCLE'E
{~I PAGE
Tl-D NEW YORK TIMES
roved For Release 39Aj/1if z : CIA-RDP91-00
ing official, E. Henry Knoche, resigned countability to the. President-a pro-
.last week after 24 years, apparently posal that Mr. Carter has yet to
reflecting widespread dissatisfaction endorse and which would require Con-
among professional intelligence ana- gressional approval. The professionals
lysts with the leadership of the new disagree, however, because they feel
agency -director,, Adm. Stansfield that the C.I.A. would lose its singular
Turner. value and hence its importance.
And the agency admitted that it had Mr. Turner's formal military manner
THE WEEK IN REVIEW
conducted further clandestine drug-ex
priments in previous decades.
The Admiral was given a mandate,
by President Carter to help reorganize..
the intelligence community to prevent,-
a recurrence of the abuses of recent
years and to improve the community's
ability to provide accurate information
to policy planners. But many of the
agency professionals, like Mr. Knoche,
have been disturbed both by the kind
of changes the new director has in
Troisble Topside
AttheC.L. .
The unhappy Central Intelligence
Agency, much criticized from without,
suffered two more blows, this time
from within.
The,agency's respected second-rank-
mind and by the manner in which he
has been trying to implement them.
Admiral Turner has proposed merg-
evidently ` has not helped matters.
Some career agency officials reported
ly considered him remote.
President. Carter- is reportedly con-
sidering as Mr.: ? Knache's successor
Lyman B. Kirkpatriclc;;.a former high
7 official of- the agency. -As inspector
general in. the 1950's, one of Mr. Kirk-
patrick's tasks was investigating LSD
experiments that a Senate committee
later declared to be unauthorized and.
abusive.
The experiments reported last week
by the agency were similar. They in-
volved persons who had not given in-.
ing the C.I.A. and the other intelii.,., formed consent-including alcoholics,
Bence-gathering arms of the Govern addicts and terminal cancer patients-
rnent(nto a single unit to insure ac- befor5,being given knockout drugs.
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 Approved For Release 2005M 2/14' CC a 000
WASHING L 8
?
the except the "K" drug rocs of the lntel11,1,ence
By Robert G. Kaiser . - All of se
A' ussed in the Church commit- which are uncovered-"
sC
Wasbin?ton Post Staff Writer were i
The White House reveled yester tee's final report in April 1976. The "^. Jody Powell, Cat-ters press setre-
day that the Central Intelligence committee found that INIK-ULTRA tary, said the material was released
Agency has uncovered new details of gave LSD to unwitting subjects (one quickly to head off any charge that-
its own experiments with exotic drugs- of whom, Dr. Frank Olson, died as' a the administration Was trying to hide
from 1953 to 1964. result), used private Institutions clan- new information.
In what appeared to be a pre-emp- destinely to conduct research, and Powell said the resignation this
tive announcement to the press, the used prisoners and patients as sun- week of E_ Henry :Knoche, deputy di-
rector of central intelligence,, had
'White 'House released a letter from jests,
CIA Director Stansfield Turner: to The committee found that the CIA nothing to d3 with the newly discoa-
Sen.. Daniel K. Inouye (D-Hawaii), went to great lengths to conceal the ered DIK ULTRA financial records;.
'XIK-ULTRA project because of its pn another CIA matter. Powell dia-
.?ha_rman of the Senate intelligence
committee, briefly describing the new
evidence found in CIA files.
The: White House did not release
any detailed information on the. new
discoveries, however, and -what it did
relzssa'added very little to the docu-
inertec history of CIA drug experi-
inentation-including the admihistra-
t.aa of drugs like LSD to?unwitting,
human ?guinea pigs-revealed by Sena
Frank Church's (D-Idaho) investiga-
tion of the agency-
The Senate Intelligence Committee
plans to hold public hearings on the
new information next week, probably
sensitivity. vied that. Carter has offered the depu
In his letter Turner said that the -
,newly found financial records don't ty's job to Prof 14 m an. B. Iiirltpatrick
i><
a former exec
it
i
e
"
"
y,
rs
v
but
-.,of Brown Un
present ."a complete picture
"provide more detail than was previ- tive director of the CIA.. The New,
ously available." York Times reported Thursday that:
Turner said lie wanted to testify . be had been offered the job. Asked if.
about thin material.to the intelligence Kirkpatrick. would be offered it latex;,
committee "in keeping with the Presi- Powell replied; "Not that I know 'TAT
dent's commitment to disclose any er- no."
on Wednesday or Friday, and the:
skimpy outline of facts released yes-,
terday could blossom into substantial
new revelations.
The newly discovered documents re-'
ported by -Turner are financial rec-
ords of MK-ULTRA, a supersecret
CIA research and development pro-
gram? involving exotic drugs and, their'
possible uses for intelligence on -mili-
tary purposes.
The CIA files describing MK-UL-3'
TR:L were destroyed in 1973 at the
suggestion. of then-Director Richard
Helms, according to testimony before
the Church committee.
But a continuing search through
CIA files-.has discovered records on',
disbursements made for MK-ULTRA,.'
according to Turner's letter to Inouye.
Turner's . letter enumerated these.,
activities for which money was appar-
ently disbursed: ?
? Testing of drugs on American citi-
zens without their knowledge, in cases
beyond those already revealed.
? Research on the surreptitious.ad-
ministration of drugs.
? Research on a 'knockout or. ``K"
drug, 'including tests ? on. "advanced
cancer patients." .
? Eiperiments using drug -.addicts
or alcoholics..
? A posse } WCPFqeF&la9e 2005/12/14: CIA-RDP91-00901 R000600040006-5
"private instit on.. _ , ...; .
ays na TN ew.-I
 Approved For Release 2005/12/14: CIA-RDP91-00901R0 0600040006-5
NEV YORK DAILY NEWS
16 JULY 1977
By FRANK VAN RrPER__ -- man of the Senate -Intelligence` Commitee. In thel
111'ashington (News Bureau) - The. White
House said yesterday that the Central Intelli-
gence. Agency has uncovered new evidence of
drug experiments,om-humans conducted-by the
spy agency- about 10 years.-ago, including tests
and cancer patients - -- 0 "Research undertaken on surreptitious methods
The experiments : part of the: notorious. CIA of administering drugs." -
proECT "ZIK-Ultra that led to the sucide of -army- .0-Drug experimentation on drug. addicts and- alco-
bioehemistFrank Olson were uncovered during a holier.
search of the agency's financial records. Research into a knockout or "IC' drug ostensibly
The new disclosure`left unclear just how extensive performed in conjunction with treatment of advanced
the CIA drug experimentation cancer patients, with the same p~etients tared as guinea.
experimentation program'~vas or how.
piss, for-the CIAhdrugs.
many persons were-tested and how,many drugs, be- ? A possibility of a "improper-payment" to an
irides haiticinogenic compunds like LSD, were used - unnamed "private institution" in. connection with the.
The White House released a deter from CIA Direc- experiments.. =
tar; Adm,. Stanfield -Turner to Daniel Inouye,- chair Turner's letter-, said that `'the' thug-related activi-
-ties described in the newly located material began
almost 25 years ago,-1 assure'. you they were discontin-
ued over 10 years ago and, do not takeplace. t9day!' White House Press Secretary Jody Powell said that
he did not know whether the documents-contained,:
evidence of any previously unreported injuries and
deaths may. .
Whew` Project ULTRA. first : surfaced ? in the-.1975.
probe of CLV abuses, it was disclosed- that Olson, wlio
committed suicide..by-leaping from a New-York City,-
hotel . room in 1953,-had .been-surreptitiously. adminis-
tered LSD by a- CIA operative:"Olson's family had not
been told of the LSD experiment until details' were'
leter Turner conceded that. the agency had earlier
concluded "that most of the. documents on this mater
(the ULTRA project) .had been destroyed." =
However, Turner- said` in his leter that a new
searcb of CIA records disclosed the following:
`6 "Possible additional cases -of- drugs being tested
experiment program; . Powell insisted that there, wart:.
would: reopen' the:: investigation-.into . the- LIA's- drug.
deputy director of Intelligenee.for the_, C IA.
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 _Lp
a .PAGEI, Approved For Releas 0 f~' T IAP_ObTD91-00~
' 5 JULY 1~977
(NEWSPAPER AS RECEIVED)
arding';~o a CI source ~a,'iiispute
hover ch?inges planned?by.`th>gexrcy's
,'ssocIated Press
Lyman B. Kirkpatrick, a' political
science .l?rofesso at $rQSyn;Univecsity,.
is being seriou Iy c,Qnsiderec the-
BYO ,? postat:the.Central Intel hgence
gQney, sources:'close.;;to- the-.White;
ouse- aid yesterday
The CIA's deputy"director; B: Henry
Lv-inair'' alf'-Kiirkpa trick
Seen. as'No:. 2 at CIA
rip txeck