NO. 2 OFFICIAL RESIGNS AT CIA

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP91-00901R000700070018-8
• Release Decision: RIPPUB
• Original Classification: K
• Document Page Count: 11
• Document Creation Date: December 20, 2016
• Document Release Date: July 12, 2005
• Sequence Number: 18
• Publication Date: April 23, 1976
• Content Type: NSPR

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VM1? FA-RDP91-
Approved For Relea
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jay William Chapman taam" at the intelligence
Washington Post Stall S. riter agency.
Gen. Vernon A. Wal- Walters, 59, submitted his
%ters, the Central Intelli- resignation as a matter of
pence Agency official who protocol in January when
was used by the Nixon Bush took over. He is sched-
,White House in an attempt uled to retire from the
to block. the Watergate in- Army on June 30 when he
estigation, resigned yester- will have completed 35 years
-day as, the.. agency's deputy of service.
direcctort A skilled linguist, Walters
The:.".W hife'Ilouse ail ryed as Interpreter for
tnoiinced_the resignation and five Presidents during his
'said that:a veteran civilian army career and was a clcse
rCIA official,'Associate Dep- friend of former President
`uty "Director B. Henry Nixon, who appointed him
,'Knoche, will. be nominated to the CIA No. 2 spot in
'to replace him.
s 1972.
White House press secre- Shortly afterward Wal-
'?tary Ron 'Nessen said that '
ters became involved in the
.Knoche is the choice of CIA
Director George Bush, who efforts of White House aides
wants 'to build his own. H. R. Haldeman and John D.
Ehrlichman.. to limit the
FBI s investigation of the
Watergate burglary.'
Walters later testified
he was ordered by Halde-
man to instruct FBI Direc-
tor L. Patrick Gray to cease
investigating leads 1n the
burglary case that might ex-
pose CIA operations in liex-
2co..
Gray at first agreed, but
later said the investigation
would proceed unless he re-
ceived signed CIA docu-
ments instructing him to
hold off.
At a subsequent meeting,
Walters said, he and Gray
agreed that the FBI investi-
gation into Republican ? cam-
paign money used to finance
the burglary could not be
blocked by CIA intercession.
Walters also said that Nix-
on's counsel, John W. Dean
III, at one point suggested
to him that CIA covert
funds could be used to pay
the Gail and-salaries for the
five Watergate burglars.
Walters refused.
40
itesns
VERNON'A. WAITERS
., appointed in 1972
A CIA spokesman said
yesterday that Walters' res-
ignation has no connection
with recent investigations of
the agency's activities and
the revelations of domestic
spying.or with: the current
reorganization of the intelli%
gence community.
"He simply felt that he
has been here long enough -
and that it's time to retire,"
the spokesman said.
Walters' resignation will
take effect on the day that
his successor is confirmed
by the Senate, the White
House said. '" -
Nessen said that President
Ford "has a very high re-
gard" for Walters and for
the work he has done. He
said that Walters has of-
fered to serve in any other
capacity at the President's
request and Mr. Ford is con-
sidering the offer.
The confirmation of
Knoche would break one
long-standing tradition at
the intelligencc agency. For
the first time since the
agency Was founded in 1947,
neither the director nor his
principal deputy would be-
military men.
Knoche is a 23-year vet-
eran with the CIA who has
held a series of administra-
tive positions- As deputy di-
rector, he would be-: in
charge of the agency's day-
to-day operations. .
Knoche, 51, joined . the
CIA in 1953 as an intelli-
gence analyst specializing in
Far Eastern political and
military affairs. He had pre-
viously served two tours of
duty as a naval officer, dur.
ing World War 11 and the
Korean war.
:From 1962 to 1967, Knoche
Was a Special assistant to
the CIA director. In 3967, he
became executive director
of the National Photo-
graphic Interpretation Cen
ter.
Iii 196.9, fie become deputy.,
director', for plarii:i'na nti
budgeting and the following
year was named deputy di-
rector for current intelli-
gence. .
was chief of the intelligence
directorate's office of strate-
gic research and in 1975 was
appointed by Mr. Ford as as-
sociate deputy to the then
director, William Colby.
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 Approved For Relea L2 / CIA-RDP91-00901 RO
23 APRIL 1976
Washington-Lt. Gen. Ver-
non A. Walters, a Nixon ap-
pointee who resisted Watergate
coverup efforts, is resigning as
deputy director of the Central
Intelligence Agency and will be
replaced by E. Henry Knoche, a
civilian veteran of 23 years'
service with the agency, the
White House announced yester-
day.
The appointment of Mr.
Knoche, now an associate depu-
ty director, appeared to under-
score the shift in emphasis at
the CIA toward collection and
analysis of foreign intelligence
and away from the sort of co-
'vert operations that figured
largely in last year's congres-
sional investigations of intellig-
ence agencies.
That shift began in the short
term of James R. Schlesinger,
who headed the CIA for six
months in 1973, succeeding Ri-
chard Helms.
A CIA spokesman said Gen-
eral Walters's resignation was
connected with his intended re-
tirement from the Army June
30, after 35 years of uniformed
service, much of it in the intel-
ligence field. The general, 59, a
.colorful figure known for turn-
ing up at trouble spots, speaks
.eight languages with fluency
but has no college degrees at
all.
At the White House, Ronald
II. Nessen, the presidential
?:. press secretary, gave no special
reason for acceptance of Gen-
eral Walters's resignation at
this time except that, after a
transition period: "George Bush
wanted to build his own team."
Mr. Busb, former United
States representative in Peking,
was installed as director of cen-
tral intelligence in February,
with broadened authority over
other federal intelligence activ-
ities as well as those of CIA. He
succeeded William E. Colby in
the government shake-up Presi-
dent Ford announced last Nov-
ember.
Under the law, one top CIA
official-director or deputy-
but not both may be drawn
.from the military service. Mr.
Bush has named Vice Adm.
Daniel J. Murphy, a former 6th
Fleet commander in the Medi-
terranean, to another deputy's
post, charged with overseeing
the "intelligence community"-
CIA and other agencies-and
managing intelligence-*t*
ing resources.
Mr. Bush evidently wanted a
nnraar% man as his denutv
51, joined the CIA in 1953, and
combines the requisite talents
of analyst and administrator.
Ile has headed several of the
CIA's major divisions. For five,
and deputy director, and then
became executive director of
the agency's National Photo-
graphic Interpretation Center.
. That was followed by a year,
and budgeting and in 1970 Mr.
Knoche became deputy director
for current intelligence, super-
vising preparation of daily in-
telligence reports for top gov-
ernment officials. `- -
CIA's office of strategic re-
search and in 1975 was named
associate deputy to Mr. Colby.
Mr. Knoche is a native of
Charleston, W. Va. - .
General Walters, - a New
Yorker, was appointed deputy
director by then-President Ri-
chard M. Nixon in 1972.
Within a week of the Water-
gate burglary in June of that
year, there were White House
efforts to have the CIA pay the
burglars' bail and involve the
agency in covering up the af-
tions on alleged grounds of na-
tional security. .
General Walters relayed
some of the White House re-
quests to L. Patrick Gray 3d,
then FBI director. But the gen-
era! was to write at length in a
that he was "quite prepared to
resign" if ordered to send Mr.
Gray a letter contending that
investigation of the Watergate
rity and CIA covert operations.
. General Walters joined the
Army as an enlisted man in
1941. He had lived abroad with
his parents and was schooled at
Paris and Stonyhurst College in
England, but took no degrees. -
A year after entering the Ar-
my, by then a second lieuten-
ant, he participated in the land-
During most of the remain-
der of his career he engaged In
intelligence and attache work,
and served as interpreter on
overseas trips for Presidents
Ja- -n CI
h post in A
By CHARLES W. CORDDRY
R'nshinolon Burea-t rf The Sun
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senhower, John F. Kennedy,
Lyndon B. Johnson and Nixon.
 PHILADELPHIA INQUIRER
Approved For Release 2qOj[ Ig9I t -RDP91-00901
Associated gross
WASHINGTON ?-- Lt. Gen. Vernon
Walters is quitting as CIA deputy di-
rector, the White House announced
Thursday.
E. Henry Knoche, CIA associate
deputy director, will be nominated to
replace Walters, the White House
said.
Walters' resignation was a sur-.
prise, and the details came to.light
gradually.
The first word came in a single
sentence at the bottom of a White
House announcement that President
Ford planned to nominate Knoche to
the CIA's. number two position.
.The.White House did not elaborate'.
,'Immediately. Efforts. to reach Wal-
ters proved futile. A CIA spokesman
said the deputy director was out of
town and not available for comment.
An hour and a half later Press Sec-
retary Ron Nessen said Walters was
quitting because he believed that he
was "overdue to get out of the
Army." The deputy director also rec-
ognized that CIA Director George
Bush would want to pick his own top
assistant, Nessen said.
Walters, S9, was appointed deputy
director by President Richard M.
Nixon in 1972.
. A CIA spokesman refused to com-
ment on whether Walters' resignation
stemmed from investigations of the
agency during the past year or from
Ford's reorganization of the nation's
intelligence agencies. .
"On timing, I don't think we ,could
want to comment on that or get into
a discussion on that," the spokesman
said. . %
Nessen said Walters submitted his
resignation in January after Ford
named Bush to head the agency.
Bush did not accept Walters' resigna-
tion
immediately, Nessen said, add-
ing that Walters had been scheduled
to retire from the Army. The date
has been set for June 30.
Knoche was chosen because Bush
"wants to build his own team," Nes-
sen said.
Knoche, 51, a civilian, went to work
for the CIA in 1953 as an intelligence
analyst specializing in political and
military affairs. He has been 'execu-
tive director of the agency's national
photographic interpretation center,
deputy director of planning and
budget activities and deputy director
of the office of current intelligence.
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 WALL STREET JOURNAL
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Deputy CIA Director Vernon Walters is
resigning. The 59-year-old Army lieutenant
general is leaving the agency because Direc?
tor George Bush "wanted to build his own
team," a White House spokesman said. Ford
will nominate Associate Deputy CIA Direc-
tor Henry Knoche as a successor. Walters
was a key Watergate witness who testified
that he tried to stop the FBI Watergate in-
vestigation on Nixon's orders.
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 SIAT
CHRISTIAN SCIENCE MONITOR
Approved For Release Q3/2 . rrIA-RDP91-00901
CIA resignation
Lt.Gen. Vernon A. Walters is quit-
ting as Deputy Director of the em-
battled Central Intelligence Agency,
the White House said, to be suc-
ceeded, it is believed, by associate
deputy director E. Henry Knoche.
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 LOS ANGELES TIMES
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Waiters .Resigns
No. 2 POst at CIA
From Times Wire Services
WASHINGTON-U.. Gen. Vernon
A: Walters, the Central Intelligence
Agency official who was used by the
Nixon White House in an attempt to
block the Watergate investigation,
resigned Thursday as the agency's
deputy director.
.The White House announced the
resignation and said that a veteran
civilian CIA . official, Associate. Dep.
-Director E. Henry Knoche, would be
nominated to replace him.
Walters'. resignation came as'a'sur-'
prise, and . details surrounding his
quitting unfolded piecemeal. The first
word came in a single sentence at the
bottom of a White House announce-
nominate Knoche to one of the CIA's "The way to handle this is for us now to have Walters
ositions. ' call Pat Gray and just say, 'Stay to hell out of this .. .
IVo. 2 positions.'.'.'
The White House did not imrnedi- This is the CIA.' ately elaborate. Efforts to reach Wal- The tapes show that Nixon approved that suggestion.
ters proved futile. A CIA spokesman Testifying at the Watergate coverup trial in November,
said the deputy director was out of 1974, Walters confirmed that he told Gray the FBI inves-
town and unavailable for comment. tigation "could expose . . . CIA cover operations in Mexi-
An hour and a half later Press See- co:'
retary Ron Nessen said that Walters IL Gray at first agreed, but later said the investigation
was quitting because he believed himself "overdue to get
out of the Army."
Nessen also said that Knoche was the choice of CIA Di-
rector George Bush, who wanted "to build his own team"
at the intelligence agency.
Walters, 59, submitted his resignation as a matter of
protocol last January when Bush took over. He is sched-
uled to retire from the Army on June 30, when he will
have completed 35 years of service.
A skilled linguist, Walters served as interpreter for five
Presidents during his Army career and was a close friend
of former President: Richard M. Nixon, who appointed
him to the CIA's No. 2 spot in 1972.
Shortly afterward, Walters became involved in the cf-
forts of White House aides H. R. Haldeman and John D.
Ehrlichman to limit the FBI's investigation of the Water-
gate burglary.
Walters later testified that he was ordered by Halde-
man to instruct acting FBI Director L. Patrick Gray III to
cease investigating leads in the burglary case on national
security grounds. Nixon's precise role in that effort,
however, remained unclear until the later disclosure of
the White House tape recording that forced his resignation.
It showed that, on June 23,1972, Haldeman told Nixon
that the FBI investigation was touching politically danger
eived signed CIA documents
instructing him to hold off.
Gray; testified, however,
that Walters refused to put
the order in writing and
abandoned the White House
plan, telling Gray, "I'm not
going to let those kids at
the White House kick one
around."
Walters also said that
Nixon's.: counsel, John W.
Dean III, at one point sug-
gested. to . hiin_ that CIA
covert funds could be used
to pay the bail and salaries
for the five Watergate bur-
2 glans. Walters refused.
---A CIA.- spokesman said
with recent investigations
of the agency's activities and disclosures of domestic
spying, with the current reorganization of the intelligence
system, or Watergate.
"For crying out loud!" the spokesman said. "Any sug-
Eested connection between Gen. Walters' friendship with
former President Nixon or Watergate and his leaving the
CIA'does not do him justice.
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 Approved For Release 2007/03/29 : CIA-RDP91-00901 R000700070018-8
"He simply felt that he has been here long enough and'
that it's time to retire,' the spokesman said. -
An intelligence community source said, however, that
the main reason for Walters' departure was Bush's desire
to have a career professional running day-ta?day opera-
tions and helping restore morale damaged by Watergate
and the intelligence investigations.
That source also said that Bush wanted a deputy free of
association with the Watergate period and Nixon's brief
effort-disclosed in the so-called "smoking gun" tape rec-
ording-to have the agency stifle the FBI's early investi-
gation.
Walters' resignation will take effect on the day that his
successor is confirmed by the Senate, the White House said.
Nessen said that Ford "has a very high regard" for Wal-
ters and for the work he has done. Walters has offered to
serve in any other capacity at the President's request and
Ford is considering the offer, Nessen said.
The appointment of Knoche, if confirmed by the Sen-
ate, will break . one tradition at the intelligence agency.
For the first time since the agency was founded in 1947,
neither the director nor his principal deputy will be mili-
tary men.
Knoche is a 23-year veteran with the CIA who has held
a series of administrative positions. As deputy director, he
will be in charge of the ,agency's day-to-day operations.
Knoche, 51, joined the CIA in 1953 as an intelligence an-
alyst, specializing in Far Eastern political and military af-
fairs. He previously had served two tours of duty as a Na-
val officer, during World War II and the Korean war
.
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 CHICAGO TRIBUNE
Approved For Rel&~4$P/(?1 : CIA-RDP91-00901RQ,
alters,
rn a;
0
n
UI
I
From Trlture Wire Services
WASHINGTON-U. Gen. Vernon A.
Walters, who gave damaging test mo-
ny in the Watergate case despite his
close friendship with Richard :1T. Nix-
on, resigned Thursday as deputy di-
rector of the CIA.
The White House, which made the
announcement in a brief statement to
reporters, did not give a reason for
Walters' resignation as No. 2 Central
Intelligence Agency official.
But an intelligence . community
source said the main reason was the
administration's desire to have a ca-
reer CIA official hold the deputy di-
rectorship under the new director,
George Bush. Walters, had been in
the CIA for just four years. He was
appointed deputy director last year
by President Ford.
Ford said he was nominating 8.
Henry Knoche, who has served in the
CIA for the last 26 years, to replace
Walters.
TILE INTELLIGENCI: community
source said Walters was leaving for
several reasons, but the major one
was that his CIA experience was not
ektensive enough to qualify him for
the No. 2 job in the agency. Bush has
said his top assistant should be run-
ning the day-to-day operations .of the
agency. ?
The source said other reasons in-
eluded Walters' personal desire to.
leave the agency and the administra-
,tion's desire to bolster the Watergate-
damaged morale of the agency.
But a CIA spokesman said Walters,
who will be 60 in January, asked to
be 'retired from the Army a month
ago.
"For crying out loud," the spokes-
man said. "Any suggested connection
between Gen. Walters' friendship
with former President Nixon or
Watergate and his leaving the CIA
does not do him justice. He has been
a distinguished Army officer for the
last 35 years and served three Presi-
dents directly as an interpreter.
"GEE. WALTERS Is a military of-
ficer on active duty. A month ago, he
asked the Army chief of staff to be
placed on the retired list:He will be
60 next January,. with 35 years of
distinguished service behind him.".
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'
 NEW YORK TIMES
Approved For Releas8l0fR2:71A-RDP91-00901R00070
en's Walters Quits C.I.A.
Bush 'Wants Own' Team'f
'WASHINGTON, -April 221 "He has been a distinguished
intell igenbe investigations-:
day-to-day operations and help-
ing Mr. Bush- to restore morale
to build his own team."
The, announcement said that
Lary, Ron Nessen, said that Ge-
neral Walters;- 59 years ? old,
(UPI)-The White 'house an-
nounced today the resignation
of Lieut. Gen. Vernon A. Wal-
ters. as Deputy Director of Ceh.
tral.Intelligence. General Wal-
ters was a key Watergate wit-
ndss who, testified that. he had
tried to stop the F.B.I, Water-
gate investigation on President
Nixon's orders:' ' .
_The Presidential press sece
stifle the F.B.I.'s early investi-
gation.
brief _ effort--disclosed -in. the
co tailed "smoking pistol", tape
.recording to have the agency
a '35-year 'military career. }e
erraphatically denied any con-
Watergate and his leaving the
Wnlters's -friendship with, for-
mer ._ President -.. Nixp on . or
spokesman said: "Any- suggest-
ed connection between General
years and served three' Pres
iddents, directly, as an interpre-
He said that General Waiters
asked the. Army last month for
permission to retire.
Mr. Nixon,. who cansidered
the general a loyal "friend,;
transferred him: from -Army
duty to the C.I.A. in 1972. Mr.
Ford appointed him deputy di-
rector -last year. - +
General Walters gained . na-
tional prominence as a witness
at. the televised Senate Water-
gate hearings:.in 1973, where;
he . disclosed . that . the White
House had -instructed him to'.
quash the . June- 1972 F.B.1
Watergate inquiry an national
security: grounds. Mr. Nixon's
precise role : in . that - effort,
however, remained unclear un-
til the. later disclosure of the
to put that in-writing and aban-1
doned =tthe--White House. plan,i
telling Mr. Gray,.' 'I'm not.going!
to let those kids at the White!
House kick me around."
White House.' tape recording
that forced his -resignation.
It showed that, on June 23,
1972, the.. White House - chief'
of staff, H. It Haldeman, told
Mr.'Nixon that the F.B.I. inqui-
ry was touching politically dan-
gerous areas -and said:
"The way'to handle this isi
far us now to' have Walters!
call F5-BI. Director] Pat Gray
and just: -say, 'Stay to hell outj
of this; This is .the C.I.A.'
The tapes show that Mr. Nix-
on approved that suggestion. i
Testifying , at the Watergate
cover-up trial ` in November
1974, ' General .'Walters con-
firmed '.that he' had 'told Mr.
Gray that the F.B.I. investiga-
TiON "could expose C.I.A.
cover ' operations in Mexico?'
"Mr. 'Gray, testified," however,
that General Walters refused,
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 C i 'AbAWNbOI1 1700
Approved For Release 23 " 1976
APRIL
Post Is Upgraded
CIA z, Ne'w No.l Ma
Fits Ento' * F0`rd%'T1an
United Press International 1972-1975, the CIA Office of
The appointment of E. Strategic Research.
Henry Knoche, now.associ- His appointment follows
ate deputy director. of the by several weeks the nam-
CIA, to replace Lt: Gen. ing of Adm. Daniel Murphy
Vernon Walters as deputy to. be deputy director for the
director was directly relat- intelligence community -
ed to Ford's Feb. 18 execu basically a liaison post be-
tive order reorganizing the. tween the CIA, State Dc-
intelligence community and ..partment, "Defense IntelIi-
upgrading the post of depu-.. Bence Agency and other'
ty director, sources say. . intelligence units..:
The resignation of Wal- ?. WALTERS, -a linguist
ters, who has said he was who interpreted for Richard
used by the Nixon White M. Nixon during his 1969
House to head off FBI European tour, leaves the
} investigations. into the CIA after five years as
break-in of the Democratic deputy director.- -
National Committee head- Bush - reportedly told
quarters in the Watergate aides yesterday that? lie
office building, was an~ very much regrets" Wal-
nounced yesterday. ters' leaving and will miss
Sources said President. his counsel. But CIA
Ford's appointment of sources said the general's.:
Knoche is 'in line with his departure:- on honorable
Executive..' Order 11905,? terms" removes- the last
which enlarged CIA Direc- Watergate taint from the
tor George Bush's responsi- agency. .: ? 1 `
bilitie for coordinating H.R. Haldeman) former.
overall intelligence activi- Nixon chief of. staff, tri~edz
ties and simultaneously up- June 26, 1972, to iise Walters
graded the No.2 post. to restrict-the FBI Water-
KNOCHE, 51,: has been - gate investigations.
described by CIA insiders According to testimony
as a ."bright, fair-haired developed in the Watergate
boy." He recently handled ' hearings.and trials, Halde
the congressional investiga- man had recommended to
tions of abuses by the CIA, Nixon: "the way to handle
FBI and other agencies. this is for us to.have Wal-
Knoche's experience has ters call (FBI Director L.)
been in intelligence anal- Pat Gray and just say 'stay
ysis rather than in clandes- the hell out of this...
tine operations or ",dirty This is the CIA1"
tricks." He has directed the Walters testified he and
National Photographic Richard Helms, then CIA
Interpretation Center, the director, were asked to.
Foreign Broadcast Infor- meet with Haldeman and
John Elirlichman and were
~mation Servile, and, from
told the Watergate incident
was making "a lot of noise"
and "might get worse."
Gray later recalled that
Walters said, "I'm not
going to let those kids at the
White House kick me
around."
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 z 3 413- 4 7(,
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