PRESS CLIPPINGS ON ADMIRAL INMAN RESIGNATION

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CIA-RDP91-00901R000400110003-2
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CONGRESS PLANS tighter scrutiny of the CIA with Adm. Inman departing, The retirement of the agency's respected No.. 2 -man raises concern about its doings. Lawmakers generally distrust CIA Director Casey. They complain he doesn't tell them what the agency Is up to, particularly in the area of- covert action.- With Inman on the job, Congress- could "sleepat night,". one Aide says..Now legislators will-want to,know. more'about;any;" dirty.trieks't 1 -.' : Butrjhere?'s.?:a ~Catclk-22 warns a con- gressional -staffer., Lawmakers- expect.?.a harder time getting information now that In- man,.; their best. source,:- Is, leaving. They; doubt that'.his replaeementr~;John McMahon.: ~C6an~challenge:. Casey on, Issues -or..exercise .contrbl,'over,the. agency..Arpossible result:; !Casey tray: get. deeper Into daily.CIA- opera- tions'that Inman has handledC -. -z The US, may.takera stijfeerstnnd on, :.verification of arras-control?treaties. in--` man showed faith in monitoring by sal ellite, but other'ajficiais think. on-site in-: r. spectian is a must 17.113~11'ff'l Approved For Release 2006/05/17: CIA-RDP91-00901 R0004001 10003-9 ON PAGE ___ -___ THE WALL STREET JOURNAL 30 April 1982 MORUCIDIF Pag 1-2, 4, 7-15,17-18, 20, 22-23, 25-26, 29- 8, 40-58, and Approved For Release 2006/05/17: CIA-RDP91-00901 R000400110003-2 Approved For Release ;nprjI7:j4 -RDP91-00901 R01 4. r'? w 14 i i i s?. i- r = 'zi ti ~r r ri ? i { }_ ,?, r ? S'_ . . , j ' .. .. - .. ^ ci }'~ ?= ii '~ }ti r' r Ito 3 L r. r "~. >;~i> f~ i-i.r~..S.1 { i??', ~T '1 {iel ~t ~t..v::' :f'{ .tt.:ti Tie il E:P1..Fri r!'i~sii1 r?''' si~iEi;Tai IT; };I~t;i i r?; iii i..u OF THE C'il'v'i"+?N~w: L,i?i?iL, t? 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Inman was asked at the newspa- managing in the best interests of the country, publishers' convention why he is quitting as something is probably wrong either ' Cly deputy director of the Central Intelligence Agen- fessional or the policy maker. Resignations in-proo- -' cy.. There. has been much speculation that he is test at this level are very rare in Washington: leaving because he too often disagreed with and Admiral Inman said the U.S. intelligence cord- lost to--CIA.Director- William J. Casey?on impor- munity is only "marginally" able to deal with the tant? policy matters. Admiral Inman seemed to problems of the 1980s and 1990s. Personalities and confirm that speculation,, by telling the publishers, political philosophy aside, that is disturbing. He: "I have lost any zest that I had for the bureacratic also implied that there is no long-range effort un problems." der way to improve the system. Also disturbing. Admiral'. Inman is a: professional intelligence In these circumstances, an elaboration of Adnu- officer. Mr: Casey is not. He is a lawyer, political ral Inman's views on the state of the intelligence adviser. and friend.. of" President Reagan. This agencies, on their past and present sharpens the differences between the director and Gies, and on the likely. outcome of those guiding olicies his deputy. The admiral reminded the, publishers. would be helpful to the Congress and. to the gen- that in the American system a president has every era] public. He is likely to meet with the Senate In- right to select a CIA director who shares his politi- telligence Committee on other matters-soon. In a, cal views. Absolutely. But when that individual is couple of weeks the.committee will hold hearings unable to convince senior careerists-especially in, on the nomination of John McMahon as the new. an- agency-which often has to operate in. dark. deputy director. Either occasion would be a places and in dark ways-that he is-:leadin and PP ..,.... g priate for an inquiry into his decision to-resign .. -> Approved For Release 2006/05/17: CIA-RDP91-00901 R000400110003-2 STAT Approved For Release 2006/05/17: CIA-RDP91-00901 ROOcp ARTICT}T APPEARED THE WASHINGTON POST pH PACP,?d,,,,._._. 28 April 1982 FIRST GLASS ?. t My, what a. . very grand. soiree, aboard , the High: lander, the other, eve.,(Si{relyy you've bobbed down the Potomac in;sper capital{st'publisher Makol'm Forties' 126-foot yacht?) A bagpiper, sport-: ing. _the Forbes tartan, piped, aboard an adorably ritzy'throng. There was one' duke (of : Wellington); one CIA chieftain. (Bill Casey); one,,amhassa- dor (of?i orocco). There was a pot- pourri of, presidents-one.. of the Gas Association, twoE of railways and one of an, airline-The pipes skirled su- per-loud 'for White Housers. like Ed Meese :.:and.. Muffie Brandon., Dave -Stockman. scrambled aboard still a ' tad pale from the big budget meet ;.ing,:("Weall.took out half an hour to watch the [NBA] game on.:.TV ") ` Some 'paper` people and a couple of Demo senators were piled aboard fcir ballast: Bob Strauss perched on the poop `deck, `iteIling Hubert-and Lyndgn stores, (He gaily'signed the guest.book "Bob., Strauss, The White ,House, ~.1984 ") Everyone:. gobbled lobster and filet, whooped'sover the Forbes" `' glittery plumbing 4: and ,,brooded about the Budget. Several urged~chuggingoff.to-the Falkland, =with the'duke'"of Wetli inton "iitrthe' ;helm..But ncr After threehot{r pa{s "senges~ `trotCeci :off,' earl;'tut{{g a. Aarge'shopp-ng ,;hag,- a little,rgre0 ?. plastic,-Covered book 'call l } 'I"heY Sa'.in s 7}f Charm iri M iknr i - X g ~ `rind a green acid i;as': duwide ;range 'of experience.. in administrative; operational,. scientific -. technicalition's in the amen='> 'RBffl -00901 R000400110003-2 fey! 14 way, 1n .,.re. a - er.. a minis- tration, -he: ;.vas `appointed deputy '? director for operations, making him chief of CIA covert activities. Last April, Casey named a polit- ical crony, Max Hugel, as deputy director for operations and McMa- hon hon took over as the director of the agency's National Foreign Assess- went Center, an important position in which he was responsible for the production of finished intelligence. On July 14, Hugel was forced tc resign in the wake of reports that ht had engaged in questionable stock amarket dealings' Ever since, some members of the Sen ate 'Intelligence `Committee, led by Chairman Barry- .CzpId'water (R-Ariz.), have- been .openly questioning Casey's judgment! and abilities. McMahon has he reputation in the CIA as being an extremely com- petent technician. Nonetheless, he will have big-shoes to fill in his new assignment. Inman, also well qualified techni- cally, enjoyed 'an unusual measure of bipartisan confidence in Congress, and is given credit both in the CIA and outside of it for helping to re- store the image of an agency that'' was badly damaged by the diselo- surer of the-Vietnam and Watergate years. Beforejoining the CLA, Inmar yas director of the. National Security' Agency ': Inman's presence in the No., 2 spot throughout the Reagan adrrri istration helped to quiet persistent congressional concerns about Casey. :Unless McMahon can take bver this role, there is likely to be; renewed demand from senators krowie age- able in intelligence matters that.>tea- gan find himself a new CIA director. Approved For Release 2006/05/17: CIA-RDP91-00901 R000400110003-2 Approved For Release 2006/05/17: CIA-RDP91-00901 R000400110003-BTATINTL UFOs 26 April 1982 C I 1R BY DFr "TF! F. PHILM I:L I . F_? ..??Y.- 1r?r t tt r 3F rtr~r' rr. t+t [f.- T! 3{3.. Ic jj 7 {~L~a3 Lam.. t"s fs '6't LS.. tJ } t{ 1? S~ {f ?. { {ri f-it{!.rE is _ tN - F'# - I?h# N?tE L:LLwi?~ ~~tt}~}{]Y~r+{ tai { ; t i ~?{ ?,_ z j }.. PDT 3 P. ..1 t- s,. 17 t. .. r?_ 'T r r nr.?t" r +!`T. F#~. / 2 =J r S J.~ r. r.srsir r.rrt::?i-~, a = rr, r; l~ if; SUL' C S +f3!! tiUnrr+{ft?r r {r r ki FD R k '1t -u '~ F.; t. .t ~etrrn t rrt- s rys t . r, [r ~'. i RrC-r- i`c-! Li t r=r' 7r .,.t.. ! i[r t. z n r r. r.![ r -si r t ~ t f't. {. H ! i? L ! F?E -- 1ru fiD14, L{ {'+T` ' - f? ! # ` F! i _ ~ rrr~~, . :)L ~ 1~ ?~ i5Fnt1 t DV I-.rF.rl. r. tr ?rtY 'r r. r't;t.}3 ? =?Y;~?~ r. tr.. i _ L t. ~ z ,~,{ 3` ~1F k U. ~.{,i !t- 3 h )rya{. t 1{ ~_3 # ?t.~t't r~-,?t CIVILIAN LIFE, L t T IPS~ r.t r l'' #$*2- FtI ' fs L3~ 4-. 's { .?t tr # YrP3 -IrT+1 Y..?r r jr r. r. r?r. r. r.::.s .-t ikt..~ r s. > r.. . _ # .###t _...:t{ f .1}tf;'tfr r,? {'{'#sL ~}jt{ yry. ! TT }}rr?? }}r... ?ri....3ti 1.T}.~i T _ ^ ? (,rT? L ri1-~Sl.?3. j ~~~~~r? }f~3 I l # ~? 'r #VL 7 Cl {F 1137} b [ }~ .#.#'ri'3# E tL_ fi~,t ~ ~y(t'C: ! s,,j ry ytq ay,?s ? 17,3} r yr tyr, }r }r .] .y LESS t,.y [., + 3 { FL'P' VR.t l{Y J fq?3 rw-i j`rt it[-.r tzr. r. r. r,7 r. r: r. ? I K-L , l O Loa .L? 1r ? { 1 _' ! Y:.1 :L i l# tr Z t? = FgG FFL~ S 10 jL; PFF1I } I ? F I I c,r. FI SF.; fy3 ( i 2}1+.?_ jLr` ic S .. t11 t.srI i }I.. R. R i jj? l+ L3 i-~' if it ~3r!;' f!': tt:4tub ~. r.t-st r-r All LE r? TI rr- FORCE :3 t t-? " re- t:rY isr::. t rss-?~r r: s? s, r. rs ~ ~~ et t r~ CIF r:r L~- ~- 5 "~ ~ {{ __ { { r 1ci rS:T T t Ti F. 1SII % H cic- -r l ,}s !=t 3c-... ?A ~. ttts: ?!r{} !r sr }r' err-- ?r tenr;r3p.-.>:t _i i j~ i 1 C'{.i `i:{ .i??f ~i' .? l{ }3' f: U.. a. a L. r ..3.. : ?.: ..ctSti~F -1? 71 N Y,ry. te T Li ?: r: DIY errC t { [71 r.?.. rt .t l l i U His !'+ ;r- r.tsr, ? r. r. r ri,i i H t ?r L t r# ~ #f.~t W I : Lri3# ~'fl t #. 3 r~!-"i ;{ .. ~f ? f 4 t ', r [ r t. r Ite-" ON! O rpYn r t1.:t i iiF. ?;kr!IRt.LiI Lute. Il {.: ON! Ys F{N21 j ?fy ri., r r irf.re }~fdtmil 1 i. f ~t . f' J - : } ? i t t 4 F i , t~ { i j j yt 3 . r? uf~[-.. .rrir: i ~ r ' E FOUNt) fL/tI ~ji hE;LEi n SAlt' ~SE = r)F. PATRICK i. 1~?r'- .. L FFtR l1.}tti .s ft #s =rr- ~r 4, + j Y y T S 1 f IS } I C CHAIRafRNL {}F rH SEL E CT C. V i j i1- ~ % ~ E N C E 4 c Ft ONY .i-NFt={~ lL#,it 7 i 7j `{il 3 ~r j' +H ~ 9 (,,fir Er r.{:3 ~~ {j r?;n r"RIVED ? is 7?i fi a3 f ~f #.t { 9 7I .r i , Ht-S vt M E=iEf ?' 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Al ...- ...... r. -1 i A:..S 3: :.?a-n. !IT S 1 :? : ? `S.4.1Ti1.ls:S L IC - r.4. t - 1.3 LC:LiLT-.224 r..3 t:L 1 L 1 1 C 'iw4.'rt::tVA::4?r8.1 ? r_ r:: ' c.:: Z1 .. r.. ...r ? r ....... .r : 1 L ?1 ?. . r ? .r ...,.. . .. . .. ...... r ... . ~ ..:.. .. ... . . . }'1.1.. 541 13 1 ~. ::J 1 1 117:1.5.'12 1.. Fsi1i ! 3433 S:'.. L.'.'. [5::. 1U 1 4. 3 4..i i 1,. 1414 r 1 Si i'L':lli'.i 3 .r } -r ..T.24MT.i-.?i CAD TUC C.1tC~4.7.1 t c.. t } 1 1. 4, . 1 L 4. 1 1 7 :1S 14 S i. t .. 1143 1. I t : L 312 4. ..: i :: S.4.L V 4.J S 7 :234. - - f:I ''UL.. 4.^ 314. Approved For Release 2006105/17: CIA-RDP91-00901 R000400110003-2 Approved For Release 2006/05/17: CIA-RDP91-00901 R0004001 STAT BALTIMORE NEWS-AMERICAN 26 April 1982 t.ant resignation of Adm. Bobby R. Inman tion to reach a level where it is driving out as. Deputy Director. of Central Intelligence ;..people of Inman's cen recommended by CIA Director William Casey, and screened t;_y the President's aides. 1~111 McMahon has to be confirmed by the Senate, after hear- ings by the Senate'Intelligence Committee. OFFICES IN: WASHINGTON D.C. ? NEW YORK ? LOS ANGRES * CHICAGO ? DETROIT ? AMl (1TW;;0 D-KtE fl ; Approved For Release 2006/05/17: CIA-RDP91-00901 R000400110003-2 Approved For Release 2006/05/17SNA-RDP91-00901 R000400110003-2 ARTICLE APP ',D ?N PAGE ___- THE WASHINGTON POST 25 April 1982 .Scope 01 Hostage issio I'n:.) 1s ? President Carters -intelligence" chief says ar:new-Inquiry; should be. made, into the failed. L-anian hostage.. rescue mission attemptth two years? agd today Retired NavyArbn:_ Stansfietd i'urner, directorof-:Cents al In- telligenceAgency dtiirng the :.Carter i presidency; called.. ti e-raid a rearing.a national experience"- that..his-:note: been completely ..plumbed. -for the,` At Y'r~'a lessons it holds for the the Joint. Chiefs : of : Staff: acrd' tlie principal-architect-'o, f the rescue mis lion, which ended in, flaming disaster . on the Iranian desert, said yesterday. that;-such an?~;mvestigation,would;. serve no useful purpose becser driers is little aoout:.the raid.that has..' not already been explored. This article .was reported and- Written by staff writers Scott Arai- strong, George. CC:.' Wilson and. Bob Wood!uard. :'This difference: of. opinion ;over whether a new:, review is in order- comes -at a `time?.when- other senior 1980, mid night attempt to ea t act 5a'.. hostages from.Tehran are confirming .arid=-bolder than t$e public h2s oeenr d t a e WILL LV A series of interviews conducted-- by The Washington Post disclosed a among top military: leaders,- some lower level planners and other Carr . administration officials who knew t er ivhat American ;troopers and war planes were prepared to, di). Cont-n plans = included : rusliing`-in a c g en y force of 90 more commandos ku b p ac if,the initial assault force of 100, men `under Col.` Charles AaChargin' Charlie) Beckwith got trapped in Tehran or the nearby airport des- tined tb be the takeoff;_point for their long-distance escape from- Iran. ' . Military leaders insisted.they were counting heavily on speed, :surprise and_: stealth and believed,`it 'might . even be. possible to pull. off the. res- cue without firing a shot at anybody. Carter and.his top aides were willing to: .accept limited casualties-` and some officials believed . there would inevitably, be deaths, perhaps hun- dreds if the firepower ; available to Beckwith was called in i nts Noting conflicting viewpo and arguing ' that the raid has too many policy implications, to ignore any longer, Turner said: ti "It is. now time to appoint .a small group to examine how the operation was planned and executed.. The pur- pose would not be to look backward and cast blame but to look forward and learn the lessons that surely lie buried in", the complicated mission. "Some of the questions that should be addressed would be: What does the experience tell -us about national decision making'? About our' .military capabilities,: o ganization and motivation? About the problems of totally secret military operations." Contended Jones . in 'a separate interview "We're not going to have another situation just like the Iranian situ- ation. They never repeat themselves. Let's look at the- fundamental prob= lens like 'organizutithi =rather -than.-' taking an isolated case. We don't. need to go back and look at things that happened two years ago. Let's get on with solving those fundamen - tal problems," with reorganizing the., 'Joint Chiefs of Staff, 'a priority high ..on Jones list. Llw,_ 1 oeUe ou ttuay to pwi OR a :rescue successfully He noted that a pane -of officer under retired Adm. James L. Holloway III has already delved into the Iranian'rescue mis- sion and issued a critical report. - Turner and 'some other former senior administration -officials and military planners are known to think that the Holloway investigation was too limited -and. amounted to the: military investigating itself. : That- Carter's. chief intelligence:: executive, who way in on the top se cret planning for '.he raid, is willing' to urge a new inquiry strongly sug-. gests there is still, on the'second an- .niversary of the raid, a lot more that could be told. lnteriiews will Carter adminis tration officials, military leaders and people `who went on the raid but tressed'that. viewpoint in bringing these fresh disclosures, some of them contradictory, abo the most dazing rescue'ever- attemjted by, the .Amer " ican military-. Getting into the embassy under tected depended in part on informa tion secured by the. CIA from . a handful. of. -infiltrated. infiltrated. agents and bribed guards. amnong the .student militants, including some who were scheduled to be on duty as guards the night of the raid. - Some-Carter-adrinistration ofir- cials said the plan called for all the guards to be kited, while -military., leader`s . insisted the "Delta" force under Beckwith was equipped with', special hand and :eg cuffs that could, be snapped on tl.e guards in'a'n in-`. stance-and would have been if the' bassy as anticipated. Military- leaders, managed to,co-opt the guards, but' Approved acknowledged they were-not'respon UL LFor Release 2006/05/17: CIA-RDP91-00901 R00(3''t'9`'tZ m,s5wn. STATI NTL Approved For Release 2006/05/17: CIA-RDP91-00901 R900400110003_2 J R.TICLE APPEARED ON PAGE / 1' -1 CTL?J YORK TIMES 25 APRIL 1982 Casey Holds Some High Cards,' but HeAlso I ? 1 ineasure,_Mr:_Casey said recently, his own per- formance should be considered good. WASHINGTON - According to the current in- cumbent, William J. Casey, to be successful _the Director of Central Intelligence must maintain good'relations-with four- groups:-his own staff, Congressional oversight committees, senior gov- ernment officials who receive intelligence data and friendly foreign intelligence services. By that agency's- clandestine operations division and. -'- - oversaw the preparation of national intelligence stand than than Casey will be alive." estimates: ; Mr. Casey's relations with the commi, tee were f : further-poisoned by its investigation last year into In severalmajor intelligence policy debates, in- his personal financial dealings and the th rnand o cluding the drafting of an executive order govern- Goldwater , vacludingchairman Itares in several senators, the actiiities- of intelligence agencies, Mr. r ,Inman advocated positions that were often The ,Re committee committee eventually y con conclauded ded l lte that t Mr* eveol.~ :shaiply_at variance with the views of Mr: Casey Casey was "'not unfit" to serve as the agency's di- Ii ff l running American agents behind German lines in agency's operations, maintaining that "there are y with answers they considered imprecise and eva-,11 electronic intelligence collection, has played { rive. In a press conference Friday, Senator Rich- a crucial role in the day-to-day management of and G.-Lugar, Republican of Indiana-an d a thsnavne-vrndIndaalinocwiththmaitGideworld- mem ...__________, ,_?__, olliClUl - CAUli.U4LUJU, dui U1tS lt-W ',l 4 UULU " ence In Central America. When the House or Sen- prompted by a series of clashes with the White 1' ate.intelligence committees demanded informs= House and mounting -frustration over the direction Lion, it was usually Admiral Inman who briefed of the Administration's policies. the members in a precise, satisfying s: yle. Mr. There is a general consensus in the intelligence Casey, by contrast, infuriated the Congressmen that Admiral Inman who watched 1 communit her of the Senate Intelligence Committee, "The wrong guy is leaving.,. ; ..r' Associates of Admiral Inman, challenging the His assessment will probably soon be put to the test in the wake of last week's surprise announce- inent by the White House that Adm. Bobby R. Inman, the Deputy Director of Central Intelli- gence, plans to ouit later this year to go into pri- vate business: A number of senior government of- ficials believe that. Admiral Inman's expertise and eloquence have diverted attention from trou- ble in the agency and kept his boss from looking bad. "I'll tell yowl one thing," said Senator Joseph R. Eiden Jr., Democrat of Delaware and a meni- icia e and other senor national secunty o s. ~fougbt,'for example, to maintain the, controls on ddomestic intelligence gathering that had been im- -pose d by Presidents Ford and Carter. Despite his reputation as a comparative dove, Admiral.lumen. was called. upon by the White. Admiral Bobby t.Inmaa~ fous`elast niontri-to present. the-Adminis t ration's. 1? rears of "ol 3c zb'bmn j Mr! Inman's departure will likely magnify some of Mr. Casey's problems.. For one thing, Mr. Casey cannot shake his image as something of a wheeler-dealer, and critics such as. Senator Bideni fear that he?will plunge the agency:into swash- buckling overseas operations that mar not be ,carefull lanned _CONTLVUEIa J Approved For Release 2006/05/17: CIA-RDP91-00901 R000400110003-2 L) TV REPORTS, IN 4701 WLLLARD AVENUE, CHEVY CHASE, MARYLAND 20015 656-4068 PUBLIC AFFAIRS STAFF CBS Evening News April 25, 1982 6:00 P.M. McMahon May Replace Admiral Inman WDVM-T V CBS Network Washin,1ton, D.C. MORTON DEAN: CBS News has learned that the White House plans to name John McMahon, a career CIA officer with a low public p r o f i l e , as the agency's new Deputy Director. McMahon I ; cur- rently the number three man at the CIA, and he would be replacing Admiral Bobby Inman, who announced his resignation from he number two spot last week. Inman, among other things, was reported unhappy about a possible reorganization of counterintelligence operations. Inman's resignations made many members of Congress unhappy. And coupled with their unhappiness with CIA Director William Casey, it Is uncertain whether McMahon will have confirmation problems, even though Mc.1ahon himself has no known opponents in Congress. OFFICES IN: WASHINGTON D.C. ? NEW YORK s LOS ANGELES ? CHICAGO DETROIT AND O HER PRINCIPAL CITIES Mwt~eyt' ppl 10V V? Approved For Release 2006/05/17: CIA-RDP91-00901 R00(p J R I CL3 APPEARED ON PAGE_,_ ITy W YORK TIMES 24 APRI-Li 19)82 INGT TA - Cruising With tote Elite f not the Sequola ;why not the High- Laxalt, William J. Casey and a host of; other political notables are expected to cruise the Potomac in 'a style that disappeared in . Jimmy. Carter's -no. fr.lls" era. Malcolm S.. F the adventurer and business magazine publisher, has invited 60 of. the capital's power elite to join him aboard his-12&foot yacht for cocktails and-a~sumptuous buffet.: "Tbe boat spends'the'winter in Flor ida," said Malcolm: Forbes Jr., the owner's son. "It's making its way up. to New York, where itwill start earn-; ing its living. " . ? ? ;Y On its way; the yacht, which is used, by Forbes Magazine to cruise corpo-' rate leaders around New York harbor,: will take on passengers in Washington;, for a trip pest Mount Vernon. Guests .I will nibble lobster in teak-paneled rooms and take the evening breeze on the roomy afterdeck:Anyone wapting a nap can choose from- several well appointed staterooms. As for the former Presidential yacht, Sequoia, which is now privately, owned, it remains docked in Washing-. ton, awaiting aplanned restoration.- Francis X~. Clines" Approved For Release 2006/05/17: CIA-RDP91-00901 R000400110003-2 Approved For Release 2006/05/17: CIA-RDP91-00901 R00040011QQQ32 RADIO TV REPORTS, ENE 4701 WILLARD AVENUE, CHEVY CHASE, MARYLAND 20015 656-4068 IROGR*A Jack Anderson STATION WEAM Rad n Mutual Broadcasting VATE April l 24, 1982 9:00 AM CITY Washington, DC JACK ANDERSON: CIA Deputy Director Bobby Inman has resigned from the agency. Congress Is saying privately that the wrong man is leaving. Here is the Inside Story? Admiral Bobby Inman, Deputy Director of the Centr.i l Intelligence Agency resigned this week. But let me tell you what the congressmen are saying in the cloakrooms. The prevailing view is that his boss, CIA Director William Casey should be he one to leave. Inman was the only CIA officials who senators truEted. He was often specifically requested to give closed door briEfings. You see, Casey has little credibility on Capitol Fill. Under his leadership the CIA has lost the respect of Congress. Inman was a personal exception. One intelligence committee source told me, I am quoting? Inman was the man everybody wanted to talk to. Now they don't have a guy in that position to trust... Inman and Casey had policy differences. They disaggreed, for example, over the CIA's role in domestic spying. Inman hought it was wrong for the CIA to spy on American citizens at home, OFFICES IN: WASHINGTON D.C. ? NEW YORK ? LOS ANGELES ? CHICAGO ? DETROIT ? AND OTHER PPINC`-PAI rmr-c Approved For Release 2006/05/17: CIA-RDP91-009018000400110003-2 Approved For Release 2006/05/17: CIA-RDP91-00901 R0004001100O TfINTL ASSOCIATED MESS 24 April 1982 U M C2'CZVTVYX A 3428 P -SENATE-CiRi BJT,560 4SENRTORS WANT ROLE IN CHOOSING NEW CII DEFUT~ !BY HICHREL J. SNIFFER F SSOCIRTED PRESS HRITER 4RiSHIN6 T ON P) - SENATORS, ONE OF THEM FEARING THAT :'THE FOXES ARE NOW GUARDING THE CHICKEN HOUSE AT THE CIAO' NA1147 PRESIDENT REAGAN TO CONSULT WITH THE?$ BEFORE MAHING A NEW DEPUTY DIRECTOR AT `ref; INTELLIGENCE AGENCY. 1'THIS IS A NATERSHED EVENTs NOT SIMPLY A RESIGNRTIONs A REPLACEMENT AND LIFE GOES Opts'`= SE N. RICHm LUGnns R-IUD, f SAID FRzD Y OF Ron. Bony R. 1114M R05 RESIGNATION EARLIER THIS REEK AS THE CIA's No. 2 OFFICIAL. LUGARs ONE OF REAGAN' S MOST LOYAL CONGRESSIONAL SUPPORTERS AND A MEMBER OF THE SENATE INTELLIGENCE CONMITTEEs SUMMONED REPORTERS TO HIS OFFICE FRIDHY FOR A RARE PUBLIC STATEMENT ON INTELLIGENCE POLICY. REFLECTING CONCERN THROUGHOUT THE COMMITTEE ABOUT THE LERfERSHIrr OF THE CIfi UNDER DIRECTOR WILLIAM J. CASEYs LUGAR SAID NENBE ~S OF THE SENATE PANEL "SHOULD BE HEAVILY INVOLVED IN THE SELEC7101 PROCESS" BEFORE THE NAMES OF POTENTIAL SUCCESSORS TO INMAN EMERGE IN PUBLIC. ` "I'M FRANKLY TRYING TO ENGENDER A DIALOGUE AND SEND SOME SIGNALS] a TO THE HHITE HOUSEI LUGAR SAID. {'THIS 15 A TRAUMATIC OCCffSIONs AND I . s Y SAY THAT ADVISEDLY . CASEY'S MANAGEMENT OF THE CIR AND HIS PAST BUSINESS PRACTICES HERE INVESTIGATED BY THE INTELLIGENCE COMMITTEE LAST YEARS WHE`f SEVERAL SENATORS CALLED FOR HIS R#SIGNFATION. THE COMMITTEE ULTIMATELY GAVE CASEY THE TEPID ENDORSEMENT THAT HE WAS SNOT UNFIT TO SERVE' s IN THE POST. "MANY MANY OF US VOTED FOR CASEY AND I NMAN AS A PACKAGE s 1 s LU GTfR SAID. t'CASEY WAS IMPORTANT TO THE PRESIDE'NT' HHO HAD ABSOLUTE CONFIDENCE IN HIGH. INMAN HAS BEEN OUR RAN IN A WRY. s 1 HE.SPEC IFICRLLY SAID THE CONSULTATION SHOULD TAKE PLACE BEFORE REAGAN FORMALLY SENDS THE SENATE A NOMINEE TO SUCCEED IIHM114. "LUGAR IS ABSOLUTELY DEAD RIGHT'" SAID SEN. JOSEPH BzDENs D-DEL.s ANOTHER MEMBER OF THE- COMMITTEE. "THEY BETTER GET HIS MESSAGE, BECAUSE WITH INMAN GONE' THE FOXES ARE NON GUARDING THE C f1CKEN HOUSE FIT THE CIR. i't Approved For Release 2006/05/1j: CLA.gDP91-00901 R00040011Q003-2 Approved For Release 20061Q5 J7 I , D~911 Q901 800040011 ARTICLE APPEARED OPT PAGE ~,j 2 APRIL 1982 Se f or Urges Reagan to 001 '- z on hnx 's Successor 13y ROBERT C. TOTH, Mmes Staff Writer WASHINGTON=Sen. Richard with President Reagan were essen- new CIA abuse:; after Inman leaves ?t , G. Lugar (R-Ind.) 'called on the . tiai to the effective use of CIA intel- Lugar.said. "They would he harder Reagan Administration Friday to. ligence reports, he said, but Inman's to stop if you weren't sure who to consult wiith Congress in;'choosing a_ experience and ..reputation reputation for, call to get to thc: bottom of it.'' successor to Adm. Bobby R. Inman -honesty were equally essential to:-Lugar urged a "very strong dia - as deputy director of the Central In-.' congressional confidence '.in.. the'- )ogue" between. the Senate commit telligence Agency. Lugar called In- 'c CIA. -: ? " . ??? :. ~ ~- tee and the Administration before man "our man" in the CI.A.: Inman's successor is announced... Inman's departure is a traumatic The conservative Republican,- occasion; ' a "watershed event," "Lugar.is ab~ olutely, dead right, :one of President.Reagan s strongest Lugar said,: that. illustrates the said Sen. Josepi It. Biden (D-Del.). supporters and a member of the ? checks and balances that have been one of the most liberal members of Senate Intelligence Committee, instituted ? to -.oversee the. iritel the intelligenc - 'committee..,"With broadly hinted at a press conference ligence community in much the Inman tone,', he foxes .pare now that unless the Administration con-, same waythey. ci twithin the fed guarding the chicken house at the cults in advance and chooses a re- ,' eralgovernment., CIA." he said. spected intelligence professional When- asked whether he? fears A`White Boise officiitl indicated as distinct from a politician-the !! Friday that several candidates are nomination would be opposed in the Senate. - In praising Inman; w_ ith'whom he once had served in naval inteJ- ligence, Lugar indicated that -CIA' chief William':). Casey has not had the same trust and confidence of the ! committee as Inman. Asked whether Casey were not sufficiently well informed so that he .felt'he could call on Casey for ad-. r vice, Lugar' replied: "That's right." : "~- ' Lugar said the. Senate had con- firmed Casey' and Inman-"a5 a pack age." Casey's loyalty to and rapport under, consideration. tc, replace In- J : man.? '.'They have someone in 'mind," he said, referring to pres idential couns-Toes,'.' and' an ' an nouncement is expected in between 10 days and a month." Among natm s mentioned sd far have been John N. McMahon, cur- rently No. 3 man at the CIA and the bureaucracy's choice: retiring Gen. Lew Allen, chief of staff of the Air Force, who had been director of the super-secret - National Security Agency before Inman: and 'Adm. .Daniel 3. Murp`iy, chief of staff of Vice President George Bush's staff who once?.serfed irr the- CIA as Bush's aide. Otrier candidates have -been interviewed by Casey, sources said.. Approved For Release 2006/05/17: CIA-RDP91-00901 R000400110003-2 Approved For Release 2006/05/17: CIA-RDP91-00901 R000400110003-STATINTL rt .i. L V . ~.1: , L U ON PACE , ' By George LardrneiJr. ; washangwn Pnst!iW: ette[ telligence 'Committee put the White'. panel does not have enough confi . Casey's exxiertise and wants, every', effort made to give him a qualified: Sen_ Richard. G. Lugar (It Ind-) said he and his fellow. committee members were, stunned by the- abrupt announcement this- w?eek,of: CIA. Deputy Director Bobby Ray Inman's resignation. Lugar called it, "a rather traumatic situation" for those in Congress whose job it is ,to;; oversee the intelligence ? community. and make sure it stays within proper,- bounds- He made his remarks at a news conference that he frankly described as?intended "to send some signals" to.',, the White House about the gravity' of the matter. Lugar made clear that "I the committee wants to be consulted. before a successor > to Inman :: is named. "If this be meddling, so , be-`i Lugar decl~~red empha=. Again and again,'Lugar - sized that it was, Inman, not Casey, since President Reagan took.'office for. expert advice and sound. judg- - ment on U. S. intelligence activities.- ' "It sounds as though you're saying. you don't trust Bill Casey,' -one re-. porter -told him.'," - The senator replied, "I wouldn't. say that at all? He called Casey, who had served as chairman of President. Reagan's election campaign; "a very briefing officer who served at . the Pentagon with 'Inman. years ago; added, however-,.that "there are sim= THE WASHINGTON POST 24 April 1982 ply'complexitiesinvolved`[in the in- telligence business) that would take more years than Bill_Casey has" left "So,asked .'another ". :reporter,.: "you're saying that - Mr .";Casey ' ` to call you doesn't know enough for. him on the telephone";and ask for his expert opinion? _,_.. _ . ".`That's right," Lugar replied. Senate Intelligence Committee ' Chairman Barry Goldwater (R-Ariz.) was. also upset onT`' learning of Inman's decision to resign. . Goldwater. said, however; that he regarded Casey as "a. fine.man, hon- est ya real spy when he was with the OSS [Office of Strategic Ser- vices), a real guy with a dagger."__ ,,At that,:., Goldwater raised his hand, as though wielding a dagger, then added: "But we do it differently now and he is not a pro." At his news conference, Lugar noted that Goldwater and 'others had hoped to see Inman appointed to the top job at CIA: He was named instead to the second spot, which he reluctantly agreed to take after serving as- director 'of the National Se- curity Agency. In any 'event, Lugar emphasized: "Many of .us voted for Casey and Inman-as a package," meaning that they.. supported Casey because Pres- ident Reagan wanted him and felt comfortable with him and Inmap, a intelligence professional of 30 years, "because -he -knows- more-than -any, one else. what's going on." Several times, Lugar'' suggested that the "system of checks and bal- ances" that has been built. up around the intelligence community since the congressional investigations of 1975- 76 was at stake. c ' ..., _ .He said he had noquarrel with the CIA director's being "a political appointee" who the president could trust,.but suggested that it was vital, in turn,, for the deputy'director to be an intelligence expfrrt who Congress could trust. Inman , 51;'submitted his resin a= 'on to the White House on. March 2T because, he:`has; since said,.he' wants to start "a second career" in private industry' and "get back .to running something" himself. ,"?I was absolutely not hounded' ..out,". Inman declared. "Anyone [in government) who claims that is just :building up his own e;o. It was ab- solutely: ',my 'initiative and my choice" Lugar is chairman ' of the; InteIli- gence subcommittee on analysis and production., STATINTL Approved For Release 2006/05/17: CIA-RDP91-00901 R000400110003-2 j.. Approved For Release 2006/05/17: CIA-RDP91-00901 R0004001100 ARTICLE .APP 2MEoD ON -'PAGE , __/U WILMINGTON 11 WS JOURNAL (DE) 23 APRIL 1982 ____ --r.._, CUmmission -x at. the age of 51, one is inclined to be skeptical of his I 'HEN A CAREER intelligence officer relinntiishes hoth ., avowed desire to "move onto fresh challenges." When that resig='- ff nation is accepted by .President Reagan with "deep regret" - .-the, prescribed nod to "leadership and wise'counsel," the doubt grows. When the name of the retiree turns out to be Aden. Bobby R. Inman, the suspicions are confirmed. Adm. Inman had dubious qualifications for the post of dep4y director of the CIA in the Reagan -administration - years of specialization in intelligence work.. He. was deputy to (.IA Director William J. Casey, whose superior qualification for that post was his' yeoman service as. manager of Ronald Reagan's campaign for the presidency. '.:. - When Senate investigations of Mr. Casey's checkered financial past threatened last year to disclose how inappropriate it was to place him in. such a sensitive position, several senators made clear that they thought Adm.. Inman was the ideal man for the helm of the CIA. The White House made it clear at that time that if. Mr. Casey had to go, the admiral not only would not get the directorship but also would be forced out. ..- ~- That subtle persuasion worked. The Senate investigators yielded with the less than ringing endorsement that Mr. Casey was not unfit to serve. Mr. Casey stayed and so did Adm. Inman, but-not for long. He had some peculiar ideas that did not endear him to his bosses at headquarters in McLean, Va.., and at 1600 Pennsylvania Ave. He believed, for instance, that the strict rules that controlled domestic surveillance of American citizens by the CIA were a - reasonable guarantee of civil liberties. His bosses decided, as, they have done elsewhere, that civil liberties are an unnecessary, inconvenience that can be compromised as long as it is'done in,' the name of national security Inman's loyalty -prompted him to defend in Congress policies with which he was clearly uncomfortable. Despite Mr.. Casey's description of their association. as a good working rela- tionship, the opposite was obvious to members of Congress as well as employees at the CIA. As an intelligence officer, Adm. Inman was no stranger to the intrigue of espionage.. He had, however, in his own words, a "steadily diminishing tolerance,+or petty bureaucratic intrigue." - ' . Happily for. the petty bureaucrats but unhappily for the American people, the reasons for the loss of -Adm. Inman 'S experience and ability are unlikely to be known. Thanks to the wisdom of the bureaucrats and the wholehearted endorsement of the Supreme Court, Adm. Inman is free to write anything he 4 wishes about his experiences in government service. He will, of course, have to submit it to Mr. Casey for screening before publication. We wouldn't want him compromising national sec:i- tity,,now, would we? Approved For Release 2006/05/17: CIA-RDP91-00901 R000400110003-2 V Approved For Release 2006/05/17: CIA-RDP91-00901 R000400' 10003-2 SEATTLE TIMES 23 April 1982 roman- resignation calls for an inquiry THE surprise resignation of Adm.- Bobby R. Inman as ^'deputy CIA director was accompanied by standard comments.- expressions, of "deep regret" from President-' Reagan; and Inman's assurance to newsmen that he wants - - -- --- --- - ------- Members of those con mitteessaid they were stunned and nation's finest professional intelligence officer." -. nonprofessional for,many.Mears and an old Reagan friend, has been controversial from the start. Inman was widely regarded necessary balance amidst a welter of amateurism::. - intei-ugence msiaers say4tnere was tnction between Inman and Casey and that Inman: was concerned about the extent of A member of the Senate, Intelligence Committee was quoted as saying: "You can't imagine the number of times he (Inman)name up here and had to defend policies it was One of the political liabilities of the Carter administration was the failures of U.S. intelligence, which notably was caught off base by the Iranianrevolution. There was hope that Reagan would put the intelligence house in order. But most of the signs thus far point to continued troubles in both policy and administration. Inman's resignation calls for thorough congressional probes t ,.c4.'d) Approved For Release 2006/05/17: CIA-RDP91-00901 R000400110003-2 STATI NTL Approved For Release 2006/05/17: CIA-RDP91-00901 R00040P 110003-2 ARTICLE` ,APPEARED ON PAGE. Z ' LOS ANGELES TIMES 23 APRIL 1982 Inman, CIA chief William J. Case Iiam I-I. Webster wanted, the sar on central control of counterinteli Efforts to reach i)e Graffenrei successful. Intense bureaucratic in-fighting uvcr "con on during March, according to one report. Inman's letter.. of resignation was dated March 22, and the timing sug gested to some that the issue had prompted lnasoq to'. $y ROBERT C. TOTH, Times Staff Writer .;WASHINGTON-Adm. "Bobby .I2. Inman Thursday. dismissed as "absolutely not true" reports that policy disputes with the Reagan Administration had caused 'him to quit as deputy director of the.Central Intelligence. Agency. He declared that he is resigning to seek "fresh challenges-". j,.I'm not leaving angry," he told.The Times 'Those stories about a big policy clash causing irie to leave are just not true. 'Ibere've been a lot of little bureaucratic - squabbles over the years. peripheral to any job, and what little tolerance I've had for those things has disap- `I'm not a good deputy he added. "I like running my own shop. And money plays a role here. (With one son in college and another tin private school), we ve been selling' bonds to pay- tuition and my net worth is less now than when Itook thelob.'. >;? "Policy fights would not have necessarily caused me to quit anyway," he said in a telephone interview.. "It would have been overa matter of principle, such as un- Inman denied that that was true, but he r.fused to:-. discuss the issue for publication because., he sail, "coun- terintelligence matters are highly classified." Inman did soy. however, that overall, the intelligence rebuilding effort of the Reagan Administration was "oft in a good direction. It I was not comfortable about chat, I. would not have walked ai4ay." lie indicated afro that it would not be-easy for the present ,direction to be changed: = "We believe hr.'s telling the, truth about -:vhy he's leaving," a House source said.. "We take at fr:cc value Rep. Edward P. loland (D-Mass.), chalrrt ii of the Ilouse. Permanent Intelligence Commlttce, and its members share 1111s view, the source said. Poland,-in a highly laudatory statement issued after the White House announced Inman s resignation Wed- nes'loy, called Inman "the nation's fpiest professional Intelligence, officer." Virtually all congressrnan -who: have commented have. been similarly complimentary, The silence of Sen. Barry Goldwater (t-Arty,), .fettered electromcsurvemanceofAmericans. i eh;!!rtwork; DATE Apr i 1 22, 1982 5:00 PH CRY flash i ri!lton, DC SUBJECT Schorr t s Commentary on Inman SANFORD UNGAR: Admiral Bobby Inman, the former Director of the National Security Agency announced yesterday that he is retiring as Deputy Director of the Central Intelligence Agency. Inman, who is 51-years old says he wants to work in the private sector, so he will also retire from the Navy. Inman was regarded by many people in the Regaai Administ- ration to be too moderate but commentator Daniel Schorr ays there may be other reasons for the Adtiralts decision. DAN I Et_ SCHORR: His objections to CIA spying a-- home into hastily conceived covert operations abroad may have made Admiral Inman seem too liberal for a right-wing Administration. But more to the point was his defense of professionalism against he harness- ing of Intelligence to ideological purposes. Inman opposed a Reagan executive order easing restraints on domestic surveillance and breakins less from scruples about civil liberties than a conviction that an intelligence agency functions better under professional discipline. More recently he was fighting a National 'Security Council plan to elevate counterintelligence into a separate, centralized agency. Inman was appalled to find that an avowedly secirity conscious Administration had no compunction about leaking sensitive intelligence information for political- and ideological reasons. ------~ R l 2006105117: CIA-RDP91-00901 R000400110003-2 Approved For Release 2006/05/17: CIA-RDP91-00901 R000400110003-2 STATINTL ARTICLE APPEARED 011 PAGE- @ ? By Fleiiry Trewhitt- and Charles Corddry Washington Bureau of The Sun Washington-Adm. -- Hobby ? R. Inman resigned as deputy director of central intelligence yesterday, ex- changing cordial letters with Presi- dent Reagan that an informed official said cloaked differences with the cur- rent system. In a telephone interview, however, Admiral Inman said reports that poli- cy disagreements prompted his departure were "really not valid. Somebody's trying to make a good story that's not there.... I've had my ;hare of bureaucratic battles.... I'vei won more than my share-I'm not: stomping off angry." In his letter of resignation, re- leased by the White House, Admiral Inman, 51, praised Mr. Reagan's ac- tions to strengthen the intelligence system. In turn, Mr. Reagan accepted the resignation with "deep regret". and* thanked the admiral for his achivements in a 30-year Navy ca- reer-most of it in intelligence work. - Admiral Inman said he also will resign his Navy commission unless he receives another active-duty assign- ment, which "I do not anticipate." He would remain until a successor is con- firmed by the Senate, he said-he hoped by the end of next month. He took the job as deputy director "reluctantly" last year, the admiral recalled, and he believed that "the- initial challenge has now been met." One report said he will enter private business, where his expertise in high technology presumably would be in great demand. The admiral indicated that he had hoped to leave government service and start a second career when he left his job as head of the National Securi- ty Agency and was persuaded, in- stead, to take the CIA job in the Rea- gan administration. "When I was leaving the NSA job, I'd had a super time (like) running a large corporation. It was fun and I thought that was the right time to transfer to a new life-style," said the admiral, who ran that supersecret code and surveillance agency for four years. "My arm was twisted, that's no se- cret, to help the new administration to get itself organized. rt c8) I BAT X'Le'O ?L--, S i, 3 22 _'-1pr_ -L 19 32 commitment that they would set out to do a long-range rebuilding pro-, grain. That's been done. The plan has been endorsed . ..,the money and peo- ple are beginning to flow-" As in Admiral Inman's personal explanation, there was no hint of ill feeling in the formal exchange with the president. But an official who watches the intelligence community closely said Admiral Inman "did not see eye to eye" with William J. Casey, who - as director of central intelli- gence and head of the Central Intelli- gence Agency is his boss. This source and others with the same view were unable to give exam pies, however. One said merely that Mr. Casey allowed Admiral Inman to take responsibility for mistakes and retained credit for himself. "Have I had various bureaucratic disagreements?" Admiral Inman asked, echoing an interviewer's ques- tion. "The answer is absolutely yes.". But, he went on, "in most cases" they' were resolved in good working rela- tionships. Asked about his boss at the CIA, Mr.. Casey, Admiral Inman roplied, "Ours is a cordial relation= ship." The admiral said his plans are open, adding that he had been plan- ning his departure since last month. "I sent the letter off in March to get them off the dime to address the fact that this summer I really want to do fresh things.... It was time to get on with my second career." The admiral is a great favorite with Congress, having received Sen-( ate confirmation last yea; by a 94-0 f vote. His self-effacing, tact-loaded briefings have been praise[ by liber- als and conservatives alike: Early last year, his testimony be- fore the Senate Intelligence Commit tee defused concern over reported ad- ministration plans to authorize CIA spying on American citizens and con- duct covert operations in the United States. The admiral made it clear, Senator Daniel Patrick ;Moynihan. (D, N.Y.) reported, that ".the job of the CIA is abroad." l After that, the guidelines for intel- ligence activity went through several drafts, finally emerging in Ian execu- tive order by Mr- Reagan in Decem-' .ber 4. The long document fact au- thorized intelligence agencies to col- lect information at home a, d the IA ADM. BOBBY R. INbtAN . plans second career at 51 -It broadened the activiti permit ted in guidelines fixed former'! President Carter. But it dirt tut go as. -far as some Reagan adm istration officials had proposed in ea ? drafts; The order says that the iomestic activities must not be "inte ed to in- fluence United States political processes, public opinion, alicies or media, and do not include olomatici activities." They must be xorted to the intelligence committe s of both houses of Congress. There was some concer that Ad- miral Inman's absence ma result in''i the guidelines being tighten' d again: Senator Joseph R. Eiden, Jr D, Del.), was quoted last night as, sa ling that "without him, the intellige'ne agen- cies may be given license f , try all kinds of questionable thing here and abroad." At 51, Admiral Inman Darks even younger. His career was meteoric, es- pecially since he graduated sot from the Naval Academy but from the Uni- versity of Texas, in 1950, as reserve officer. Most of his career has ben in in-.. telligence, more recently v, ith em- phasis on high technology. It was the prime consideration in his work as di- rector of the National Security Agen-. cy-which makes and breaks codes and conducts electronic sujnveiilance -from 1977 until he. was a'ssig^ed to the CIA. . 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Approved For Release 2006/05/17: CIA-RDP91-00901 R000400110003-2 Approved For Release 2006/05/17: CIA-RDP91-00901 R00040011 ARTICLE [} STATINTL ON PAGE 22 April 1982 CIA's Deputy Director Inman is Quitting In Apparent Flap Over Domestic.Soyi ~ By Gsa,u.n F. SsIB WASHINGTON-Bobby Inman is- resign- ing as deputy director of the Central Intelli- gence Agency? a. move that. government sources believe- was prompted by,a dispute over plans for domestic. intelligence activi- ties. The CIA yesterday sent .congressionai- committees :a message . saying President Reagan "regretted". that Adm. Inman is re- signing frown the agency, and retiring from the Navy. -The message said Adm. Inman was quitting to "enter the private sector." White House officials insisted that- Adm. Inman, who .is highly regarded in Congress and the U.S. hitelligence community, had in- tended to quit after the Reagan administra- lion had been in office about 18 months. But congressional aides and other officials say his departure seemed to be prompted by a disagreement with other administration offi- cials over how to conduct counterintelli- gence operations in the U.S. The sources said.Adm. Inman objected to a new directive the White House approved on counterintelligence operations. He report- edly felt the new procedures allowed intelli- gence agencies to get too heavily involved in spying activities hi -the U.S. Also, sources said, he was ` miffed- because the White use didn't' allow him a greater voice in shaping the intelligence procedures. Last year, Adm. Inman battled with White House officials over the wording of a broader executive order governing all intel- ligence activities?gomplaining that It would allow-the CIA tc conduct-operations against U.S. citizens. The order was held up for months and eventually was modified to overcome most of his objections. The departure of Adm..: Inman is sure to create problems- for the administration in Congress. Many- influential lawmakers hold him, ire higher esteem than they do CIA Di- rector William Casey, and they hoped Adm. Inman eventually would move to the CIA's top position. Some of the congressional clamoring for Mr. Casey's resignation. during a Senate in- vestigation , -of,_,his. finances last year stemmed from a desire for Adm. Inman to move up. Lawmakers have contended that they get a clearer picture of CIA activities from Adm. Inman than from Mr. Casey. . - 'Administration aides said they hadn't yet begun to consider a replacement for Adm. Inman. He plans to remain in his post until a successor is named,- - probably early this summer, administration officials said. i' Despite the congressional suspicions of a high-level.-,- disagreement,- administration aides contended that there weren't any bu- reaucratic battles that led to Adm. Inman's resignation. They noted -that he had - been tempted to take a job-in business last year and'had to be persuaded to take. the CIA post in the first place. e:: ; ?.:.; .; At `that time, Adm. Inman ? complained that he- could make far more money- by ac- cepting lucrative private-sector jobs than lie could by remaining in government service. To persuade him to take the CIA job, Presi- dent Reagan agreed to promote him to full admiral from rear admiral, making him the first naval intelligence specialist to reach that rank. Before taking the CIA job.. Adm. Inman had been director of the National Security Agency, a secretive Pentagon organization that monitors radio and satellite communi- cations; earlier, he was director of naval intelligence. After taking the CIA post, Adm. Inman confided to associates that he found It diffi- cult to serve as No. 2 man after directing the NSA. Some intelligence officials specu- lated earlier that Adm. Inman might look for another job if it seemed that Mr. Casey wasn't stepping aside soon. - - - . - Adm. -Inman has been handling much of the day-to-day operations of the CIA, intelli- gence officials said. Mr. Casey has focused more on-coordinating the- activities of the CIA-and;=other U.S. -intelligence organiza-- lions and hasdevoted_a gee it deal of time ti? his duties as-a member of the Cabinet. Past CIA directors.'haven't begin :Cabinet mem- bers. Adra. Inman has been stressing that the focus more on internationaleconorriic issues rather than merely I4>litical and military is- sues. For instance, a -envy analysts recently began compiling fo erasts of global eco nomic problems in tt:e next decade or so. The administration is likely to look for a il m itary officer to tare Adm. Inmap.'s place.: The No. 2 post at t'ie CIA customarily is filled by 'a military cffiriat if a civilian has the top post. STATINTU --`4 Approved For Release 2006/05/17: CIA-RDP91-00901 R000400110003-2 Approved For Release 2006/05/17: CIA-RDP91-00901 R0004001 10003-2 ea-v 3iz; THE WASHINGTON POST 22 April 1982 for, Private 1131dustry Mm. Imiian 00 By George C. Wilson and George Lardrer Jr. . Inman told The Washington Post that y ive the administration ?i a to h e g e w Adm. Bobby.Ray Inman is quitting as dep- uty director of the Central Intelligence Agency,, rite White House announced yesterdiay:., Inman, 51,' formerly director. of.the National Security Agency and highly, regarded in intel- ligence;plans 'to go into,-private industry. where,'as-one who knows 'hiniwell put it, "he can get back to running something." Inman last year made 'no secret of his reluc tance to.give up the number one job at the NSA, the agency that, collects most, of -its in- telligence through electronic intercepts, to be- it- OTA under William J: Casey. In his year as depot} ;~ In a response dated yesterday, Reagan director of the CIA, Inman has received high accepted the resignation "with deep re- atives but has waged bitter, behind-the-scenes' battles with officials in the White House.Na tio nal Security Council. One big issue,- administration sources said,- was the extent of CIA spying within the Unit- ed States. Inman resisted going: as far as some-1 NSC officials desired,. but. ended. 6p endorsingI President Reagan's decision. to authorize covert' CIA activities in this country. Historically do-, mestic intelligence., has been the province of? the Federal Bureau of Investigation with.thee CIA limiting 'its intelligence collection to overseas.,::, White House sources=said last night that: Inman was unhappy with -the deci-' sion by-William P.-Clark, Reagan's na- tional. security adviser., to review the CIA and defense budgets. Inman art;ued'thatl the White House was getting'too deeply. into the agency business, but did not-re-- sign for that reason, they said. There- also - have' been repor"ts that Inman chafed under Casey's brand of. leadership, once calling the director "the; wanderer" because ` of his _ penchant:.' fore flying off to hotspots::all 'around the. world. Other sources_.said yesterday that- Inman also felt Casey had too much en- thusiasm` ~'for`risky ":CIA undertakings' overseas,-:.ii x.:~.:*.__ ?plenty.. of notice so it could rind a succes- sor and have a smooth transition at. the agency He said he had hoped to leave in. June.but.might stay on until Labor Day.', He denied that he and Casey had been' at odds, terming the relationship "cor- dial." biginfiuence on his decision, Inman said, was to increa?:e his income to edu cate'his to sons; aged 16and .19. He told President Reagan of his de- cision to resign in a March 22 letter stat- ing that he felt it was "time that I move "Your dedication and contributions to the -United States, over more than 30 years of naval service have been of ines-. -timable value," the president told Inman. "You leave the intelligence community in a strengthened and enhanced posture..". The resignation was greeted with dis . may on -Capitol Hill where Inman was much more popular, among both Repub- licans and Democrats,, than Casey. In fact, Sen. Barry Goldwater (R-Ariz.) and, others made it plain immediately' after- 'the 1980 elections that.Inman was their, 'first choice for the directorship But .Casey wanted the job and had the inside track with the president-elect- `,Voicing regret . at . Indian's leaving; House Intelligence Ccimmittee. Chairman Edward P. Boland (D-Mass.) called him s"the `' nation's finest professional intell17 Boland said the committee had been impressed by Inman's "clear command of many difficult and complex subjects _ .? his- candid .opinions Nand :.:.his forth- right ; and honest presentation of the .. , facts." .Casey, by contrast,.had been criticized in congressional quarters for being less forthcoming, at least" during his first year. An articulate an J complicated an who often conveyed oothing impressions -without actually ommitting himself, Inman sometimes s Funded like a hard- ,.liner, sometimes like the intelligence community's leadii, defender. of. civil liberties. - At,the, outset- of last year's prolonged wrangling over a nE?w and less restrictive executive order to govern the intelligence community-, -Indian, predicted publicly that the final order would contain noth- ing giving the CI?. power to carry out, covert operations it the United States. ? - The final order, in December, author- ized just that, in support' of "objectives . abroad." Inman', defended. the new pro-. visions and contended that. they were really limited. On another occr ion; as NSA director, he assured a Senate committee that his agency had no difficulty with the Free dam of Informatioa Act-and that he saw no need* for niajrr changes. As deputy; CIA director,-be ,sailed the'law's appli- ..cation-to both-the =IA and NSA and said s it had caused "serf iis problems" for both agencies. Asked by a reporter about the shift, he smiled and'said h had been less outspo- ken before "bf cau e we couldn't get more before L , on-:the; lob. Dissatisfaction'ove'r Casey's=. ill-fated choice of Reagar campaign colleague;; Magic Hugel, as chief , of CIA covert operationsled Goldwater last year. -to publicly for Caseys resignatton. The,White House blunted; the drive;; Approved For Releasepo6tFr'gli 00400110003-2 Approved For Release 2006/05/17: CIA-RD91TN01 R0004001~ RADIO TV REPORTS, IN 4701 WILLARD AVENUE, CHEVY CHASE, MARYLAND 20015 FOR PUI3LIC AFFAIRS STAFF CBS Morning News WDVM-T CBS Ne;work DATE Apr i l 22, 1982 7:00 A.M. CITY Wash in Eton, D.C. Admiral Inman Looks for Fresh Challenges DIANE SAWYER: There's a hot new topic for speculation in Washington today: why Admiral Bobby Inman is quittinr; as Deputy Director of the CIA. Inman, who's also retiring -rom a 30-year Navy career, says he's looking for fresh challenges in private life. But people in the intelligence community find on Capitol Hill, where Inman is highly respected by almost Everyone of every political stripe, say they think Inman just is led up because of policy disputes with -the White House, and reportedly some personal f r i c t i o n with C I A Director W i l l i am Casey. OFFICES IN: wApp Approve For Release 2006/0/1 t : C;f DP9 I t gel F 00~ ~~11 QOC 2 C'TMER PRINCIPAL CITIES Approved For Release 2006/05/17: CIA-RDP91-00901 R0004 RADIO T1/ REP(D RTS, IN4 4701 WiLIARD AVENUE, CHEW CHASE, MARYLAND 20015 656-4068 PROGAM C13S Morning New's STATION 14DVM-TV CBS Net4ork April 22, 1982 7:30 A.M. Washington, Q.C. Admiral Resigning DIANE SAWYER: Surprise and dismay are the reacl-ions in Washington to the word that Admiral Bobby Inman Is resicning as the Deputy Director of the CIA and ending his 30-year ::areer in the Navy. Inman is widely considered this country's b-'st- professional spy. Robert Schakne reports on the public and privat com- ments about his departure. ROBERT SCI-IAKNE: Admiral Inman has told associates he's resigning partly for personal financial reasons. With children nearing college age, he plans to take a job in the privat: sector. But Inman has also told associates he does not enjoy being number two to CIA Director William Casey. He and Casey have not always agreed. And-Inman Is well aware that a number of senator, and congressmen think that he, and-not Casey, should be runniiq the agency. His resignation letter suggests he'd stay on with a better government. job. He's retiring, he wrote the President, "in the absence of another active duty assignment, which do not anticipate.''' Admiral Inman has had his share of public diffe-ence~ with the White House national security staff. A year ago, when the White House drew up proposed new guidelines putting t1e CIA Into domestic intelligence gathering, Inman called.the pr)posals repugnant, and he threatened to quit. Inman is a favorite among members of congressio.ial intelligence committees. wore" wppkd rA l& cav&dcRmrc.lr l ease r~ )6 d ~r r i 8 lW ,i ted c e & cj STATI NTL Approved For Release 2006/05/17: CIA-RDP91-00901 R000400110003-2 RADIO TV REPORTS, INC 4701 WILLARD AVENUE, CHEVY CHASE, MARYLAND 20015 656-4068 PUBLIC AFFAIRS STAFF ABC World News Tonight WJLA-T I ABC Ne is April 21, 1982 7:00 P.M. CITY Wash i n Eton, D.C. Deputy Director of the CIA Resigns FRANK REYNOLDS: A major change tonight in the American intelligence community. The White House announced that fdmiral Bobby Inman, Deputy Director of the CIA, has resigned. Inman maintains his retirement was long planned. But there is more to the story. And we have this report from White House correspondent Sam Donaldson. SAM DONALDSON: The White House has been sitting on Admiral Inman's letter of resignation since March 22nd. That's the day It's dated. In it, the Admiral recalls for the P-esident that he reluctantly accepted the job of Deputy Director of Central Intelligence in the first place. And he says, pointedly, that he's requesting retirement from military service because '.ie doesn't expect to get another assignment. And, in fact, the Pres;dent doesn't offer him one in his "Dear Bob" letter accepting T-he resig- nation with deep regret. The fact is, Admiral Inman clearly opposed much of the Reagan Administration's push for renewed CIA surveillance of American citizens and for its push for relaxed oversight cf CIA activities. The Reagan Administration, in turn, never reEily looked at Admiral Inman as one of its team players. Last year,' when Senator Goldwater and others tried to force CIA Director Casey out, the White House quietly passed word that Inman would never succeed Casey, no matter what. So Inman, who was widely respected in the intelligence community, both here and overseas, and by journalists who cover intelligence activities, has'resigned. IHis letter of resignation, dated March 22nd, finally released because, according to Deputy Press Secretary Larry Speakes, Inman wanted it out. OFFICES IN- AAW- Pd Eor_Re, PPa P , 006/05/17 CTA=RUP9-T--0090TR00040 }1-+GGG.'-2 - R TV 4701 WILLARD AVENUE, CHEVY CHASE, MARYLAND 20015 656-4068 PUBLIC AFFAIRS STAFF NBC Nightly News WRC-TV April 21, 1982 7:00 P.M. NBC Network Washin1--on, D.C. Admiral Inman Resigns ROGER MUDD: Life at the Central Intelligence lgency under Director William Casey has been less than calm. Aid today the agency's number two man, 51-year-old Admiral Bobby Ray Inman, resigned, effective upon the choice of a successor. Inm en's reported opposition to increased domestic spying by the (IA was said to be the reason. House Intelligence Committee Chairman Edward Boland called Inman "this nation's finest professional intelligence officer." P - 00040011 IRI INC . OFFICES iN: WASHINGTCNV D.C. ? NEW YORK ? LOS ANGELES ? CHICAGO ? DETROIT ? AND C THER PRINCIPAL CITIES MateNfd suppUea by Rocb TV Pepcft inc. may be used fa nie Approved For Release 200611 1tt T E r.,ArWFor Release 2006/05/17: CIA-RDP91-00901 R000400 4~L I. THE WASHINGTON POST ON P CY 21 April 1982 STAT Millionaire investment banker Nicholas Brady was sworn in yes- .t erday as New Jersey's junior sen- ator in a brief Senate ceremony wit- nessed by his family and two friends { from the top echelons of the Reagan administration, CIA Director Wil- 'liam J. Casey Attorney Gen- eral William French Smith. i The new senator was appointed .:by Republican Gov. Thomas Kean .to : serve the remaining. seven months of the term of Democrat Harrison A. "Pete" Williams Jr., who was forced to resign from the Senate after convicted of bribery and conspiracy in the Abscam scan- dal. Approved For Release 2006/05/17: CIA-RDP91-00901 R000400110003-2 STATI NTL Approved For Release 2006/05/17: CIA-RDP91-00901 R0004001 10005-2 10" IV REPORTS, .N 4701 \MLLARD AVENUE, CHEW CHASE, MARYLAND 20015 656-4068 PUBLIC AFFAIRS STAFF PROGRAM CBS Evening News WDVM-T CBS Ne -work DATE April 21, 1982 7:00 P.M. CITY Wash i nc-ton, D.C. SUa1ECT The Resignation of Admiral Inman DAN RATHER: A surprise and a mystery tonight `n Wash-- Ington. Admiral Bobby Inman has suddenly and unexpectedly re- signed as Deputy Director of the Central Intelligence Agency. He also is retiring from the Navy. Inman is only 51 years old. He is widely regarded as the best intelligence manager it the country. He is generally thought to have been running the CIA on an hour-by-hour basis, as second man down to the 69-year-old CIA Director, William Casey. The White House says Inman is leaving because he wants to go into private business. Details unspecified. Inman's letter of resignation mentions,only family reasons for wanting tD leave. Why he~ s u d d e n l y chose t h i s particular time to I : Ive i s , for the moment, at . least, a mys,?t-ery. CBS News was told to i ght by a source with extensive contacts inside the CIA that I'iman resigned because of personal difficulties with Director. C !sey. There is no official confirmation of this. OFFICES IN: WASHINGTON D.C. ? NEW YORK ? LOS ANGELES ? CHICAGO 0 DETROIT 0 AND OTHER PRINCIPAL CITIES Mate sa wp~u~e 99ti 1~C3Yt tic?F I > } ,f0 1 s 1?r T ;I ~ ~Q~? A~, ~.,~ ~ o , Approved For Release 2006/05/17: CIA-RDP91-00901 R000400110UOTTIyTL ?k iR269 W3TH? CONFIRMATION OF STUDY; INSERTS GRAF 17-20 HITH 1IUiAN OUOTES nom BALTIMORE INTERVIEW. EDITING ELSWHZRE TO TIGHTEN. ;BY BARRY SCHI EID ;RSSOCIATED PRESS WRITER WASHINGTON (BP`) - RDm. BOBBY INHANY THE DEPUTY DIRECTOR OF THE CENTRAL INTELLIGENCE BGEHCY5 IS RESIGNING TO ENTER PRIVATE F:USIHESSx THE WHITE AHOUSE ANNOUNCED WEDNESDAY. THE UNITE HOUSE RELEASED AN EXCHANGE OF LETTERS IN WHICH INHAN ASKED TO LEAVE HIS POST AS SOON AS A SUCCESSOR COULD BE CONFIRMED. PRESIDENT REAGAN ACCEPTED THE RESIGNATION UHITH' DEEP REGFE7. } S 3NMAN SAID IN HIS LETTER THAT HE BELIEVED "THE INITIAL CHALLENGE HAS BEEN MET" IN THE ADHIHISTRRTIDN!S GOAL OF STRENGTHENIN-5 THE HRTION' S INTELLIGENCE CAPABILITIES. THE PRESIDENT'S ACCOMPLISHMENTS ON THOSE LINES "WILL RANK AS ONE OF THE NA3OR CONTRIBUTIONS OF YOUR FIRST TERNsS? INMAN WROTE. THERE WAS NO IMMEDIATE WORD ON A SUCCESSOR TO THE 51-YEAR-OLD INMAN. TRFSDITIONRLLYY ONE OF THE TOP TWO JOBS AT THE CIA GOES TO A CIVILIRN AND THE OTHER TO A MILITARY OFFICER. THE WHITE -HOUSE ANNOUNCEMENT SAID INHAN HAD WANTED TO RETIRE AT THE END OF 19801 AS THE CARTER ADMINISTRATION HAS LEAVING OFFICES BUT HAD BEEN PERSUADED TO TAKE THE No. 2 CIA POST, I HHAH' S LETTER WAS DATED HARE" 22; THE, PRESIDENT'S HAS DATED !;:n5` Lt3IT5 TO INCLUDE INHAN COMMENTS TO NyWSRA'ER, SUBS GRA 21 April 1.982 U H BYLVYXOYV ROBDO ;RD LD!r SUQ EDP EESDA i . DEPUTY UNITE HOUSE PRESS, SECRETARY LARRY SPEnas SAID THE ADMINISTRATION DELAYED ANNOUNCEMENT OF THE RESIGNATION IN rNE HOPES IT COULD NAME A SUCCESSOR AT THE SAME T I FIE s BUT DECIDED TO GO AHEAD WHEN I T LEARNED THAT A NEWSPAPER - WHICH HE DID NOT IDENTIFY - HAS ABOUT TO PUBLISH A STORY ON INMANSS DEPARTURE. SPEAKES SAID HE KNEW OF NO REASON FOR INFFAN'S RESIGNATION !OTHER THAN WHAT HE WROTE. ANOTHER WHITE HOUSE SOURCE SAID IT HAS NOT BECAUSE OF ANY FIGHTS' SO 1 AM TOLD. 1 S ONE CONSERVATIVE SOURCE WHO HAS ACCESS TO INTELLIGENCE INFORMATION SAID WEDNESDAY EVENING THAT INMAN RESIGNED BECAUSE HE HAD ;:VIOLENTLY DEJECTED" TO A STUDY OF CDUAPTER-INTELLIGENCE MEASURES AUTHORIZED BY PRESIDENT REAGAN. THIS SOURCES WHO INSISTED ON RNONYMITYs SAID THE STUDY WOULD SHOW THAT INMANS WHILE HE HEADED THE NATIONAL SECURITY AGENCY UNDER THE Approved For Release 2006/05/17: CIA-RDP91-00901 R000400110003-2 Approved For Release 2006/05/17: CIA-RDP91-00901 R00040011000JTTINTL P s UP1.9 P -I i' HH SKEL' 4-22 PICTURE 21 April 1982 CIR JEPUTV Di RECTQR HE T UPKK W3 TO PR I-IRTE L[ F DOiiRLD t;P~~~ BY WRSHINGIUN (UPI) -- IH THE SHRM ED HOHLD DF THE SPY 3 Di 1Rt; FRY I it i WPS NOT R Gi?i i TO BE FR KEN LIGHTLY. NOT ONL{{ ULPE HIS CREL'EUTIHLS TI PEL:L:fiBBLE IN THE f1PEJfi OF SIFTING i k : lLGit I Ni LLLI iitrii~L y~~P ; r ;T1Ur BUT I I # IIHS tt:lx ;-'3 i ii Hi YiIR t fi nu UtPu+T7- D 111EC i Di; D Tit CENT R 1L Ih-IELLIGEN;E-t RGIE iC`i'. HE SIG!IED 1311-I ON EIitH JOBS IiEt 'E'3119 3D RETURN TO PHI+It- E LIFE. 110 GTHEP OFF I L:I 'L PEhSi it W RE GI ?tP . SPEC Lss IO!~ RS PP fPRHTf Hti ' GHR DPI 'HLTHEH THERE ERE OTHER PEPSOHS 'FIND WhtTHtR ih ;tiN IIHS FED DP HITH HIS SOS. RN IHTE? LI GEIICE SOURCE SHED INiHH:AN HHI:' 'NEVER PEHL Lf' EIN'.TJ'IED KING NO. 2 RT THE- ii GE G' RINI) THERE HERE REPi;PT',; OF. FP I ;TION S Lei; F~ INN-PIN BIND DID DIRECTOR HI L.L IA'N CH;;EVY HHO HE REPORTEDLY ONCE CRLLE THE URNDERt FOR HIS PI~; L:Hh T FUR FLYING To HOT SPIIiS PRliLN=i' THE UORILD. L:I O O =F1 CL PL S DIN ;i1 t I'1L SEt' 'I L:E UOULU NDT DI 'CUSS WE RE I GN HT I uiri. BUT FORMER RGLIiIS VEX. E LES RtL ?~;T~D!fT. O F' SD {ICI' [ hr`ri; l;FD PFF ? m F rkt .UR O?3 D ei} f!i1 fs f~~x1~ tai t i~. it? 1Fs fi}g!#itt if! G 1 4E It L E RDHIIt # S T 'u i I Lid SLuURCES EF;E I:!LULiTED BY THE Hf;'aiI IHOTON PO'S'T 1GDPY FiS SGYING ONE POINN'i OF EDN1i E TID UPS THE EXTENT OF DIP SPYING IN THE UNITED STRiES. I n irt OPPOSED GOBI RS FRR HS t(RIE HHITE HOUSE # L;TIt; h} SECURITY COUNCIL OFFICIALS DAI=TED% BUT ENDLV Ur ENDORSING PRESIDENT REAG ,"S DESIRE TO FUTHit i?E COIJER [:If hUI~ ITES I THE UNITED STATES. WHITE: HOUSE B uxi:ES HERE DLiOTE D BY THE POET fill; SB'flNG INr~fiii HS' A h IL k PL fiHHG P`,' KITH THE tt:i S ii1 i BY iII i I I hD CLHP':f HERGH'a''' SECURITY fi tlY I SER; TO REVIEW THE CIF M, DEFENSE BUDGET;*'. PRIOR TO JOINING THE CID LAST PER;`! IIII1HU% S'ER ED AS LEI :LL:TLiR FOR THREE VLRRS OF THE IifTIDHRL HCURITY RGE C g WHICH f.:LiLLi? u -, MOST O ITS INTELLIGENCE TH LiiiGH ELECTRONIC INTERCEPTS. HE WAS REI UCTANT TO GIVE UP THE: JOB PiS NO. i RI N SR TO BE.COHt NO. 2 fit CIRj K t DID IT. INNRN HRS WIDELY RESPECTED DN CAPITOL HILL ODD HIS RPPL'ININENT BY REPGAN TO THE KE4 CIF POST NRS HAILEL', ESPECIALLY IN LIGHw OF CLiS;E'Y'S LRL.K OF INTELLIGENCE EXPERIENCE. GThTIAITI Approved For Release 2006/05/17: CIA-RDP91-00901 R000400110003-2 Approved For Release 2006/05/17: CIA-RDP,kp0901 R000400110003-2 .,:~ ;:~t~ tilt'//ff//~~~3: ~? By JACK C LANDAU After sN years on the political defensive, the Central Intelligence Agency and its al- lies- in -the intelligence community have launched a successful counteroffensive to restrict public information about and over- sightof intelligence activities, =. With- strong' support from the. Reagan Administration and conservatives in .Congress, the intelligence community has won three political victor:es in the past month: new executive order that-keens se--' cret a massive collection of foreign-policy and-defense documents that previously had been available 'for- inspection by scholars and journalises.'-' -The firing by Pres?:dei:t Reagan of the U.5' attorney in 'San Diego after- he con- firmed to. a newspaper-'. that the ' Justice ma11.: Department wall :investigatiro; ;'former Angered by these disclosures and by rev- Mexican official,_:who was also a CIA intel- ligence 'source, for -his involven:ient in a multimillion-dollar-.`California'-'et'. on keeping secret ligence source. '`:. under legal and ethical obligation 4 o- con . to national security.- `devised systems to-release:-an increasing- CIA sources should not. have immunity in- amount of information President--Jimmy- breaking U.S.1aw... Carter signed ; an- .executive ?.order;:.that ':;: Asa result; the U.S - attorney was fired:'i allowed -documents to be released if they _-? And. as`a San Die,,x code so that payments made to U.S: "Relevant. documentation 'was ob supported b, .the evidence:; .' ,_ companies would ,be acceptable as . tamed from tae Treasury. and State. __ __-_th_ companies' a_____ - .7.. -..... tL'. _ part edit U.S nts IRS nd t . is unlikeI", that evidence td? support: '.The evidence does not support .a firm" to which Casey belonged, Ro- through further investigation,' sey sought to persuade or influence A CIA spy}esman said Casey a Smith said explaining why he haf. officials to change any agency.Poll would have no omm nt Approved For Release 2006/05/17: CIA-RDP91--00901 R000400110003-2 Approved For Release 2006/05/17: CIA-RDP91-009000040011P003 2 alt T.L 1, E .I-.~.t` !_ : is ON PAG ~s~ _ = WASHINGTON A Justice"Depart ment investigation=has,-concluded that.-CIA Director :William J. Casey did riot violate the "Foreign Agents Registration Act while working as an attorney "on- behalf of Indonesia In 1976; Attorney General .William- French Smith announced yesterday. Smith said he began the investiga- -tion after reports in January alleging that Caseyhad.failed to register as a 'foreign agent when he-lobbied two officials of the Treasury Department and IRS on behalf of Indonesia. At the time, Casey, a member of the Washington law firm of Rogers & S i e PHILADELPHIA INQUIRER 9 APRIL 1932 Wells, was said to be trying to find a way to restore _tax credits . for pay- ments U.S. oil companies had made to Indonesia_The IRS ruled that such, '- payments did not ..Qualify ? for tax -credits in this country in 1975 but William J. Casey changed that policy in297&'_ Represented Indonesia in 1976 At all times, the fact that Mr. Ca ,sey. was representing Indonesia was made clear to those officials with Casey has satisfied the Department` whom he was dealing," Smitli? said of Justice, so the matter is closed.": yesterday. "The evidence does not Last fall, the Intelligence Commit- ;support a conclusion that at any time'..- 'tee conducted its own investigation Mr; Caseysought to persuade or in--_'.'_ of Casey's complicated business deal fluence officials to change any agen~ ings and concluded that he was:"not .`Cy policy.' unfit" to serve as director of Central' Smith concluded that there wasp Intelligence . -- `"insufficient'-evidence'" to warrant ..In his reports to the court,: Smith criminal prosecutioh-or the appoint ---said the Justice Department investi= ment of a` Watergate-type special gation failed to uncover anyrattempt prosecutor. Under the law. the attor- '-'by Casey to. persuade the Treasury, ney.general is -required-to investi Department or. the IRS to change its ,gate-.allegations against top adminis "policies thus Casey,s failure to regis-- tration officials and, if ctrcumstanc-- - 'ter as a foreign agent was covered by ,`es Warrant it. he inust appoint a spe-`='_the attorney-exemption provision of 'cial prosecutor- ? ` _ the Foreign Agent Registration Act.. Smith's report to the US, Circuit V "Chat'exemption applies so long as the t'Court:of Appeals. for the District of attorney for a foreign country does ! Columbia" fulfilled -his'.responsibili:;:a not attempt to: influence. agency poli- ties under the Ethics In Government ^ cy Act; the Justice Department said. - t "Mr. Casey's representationw '.of- ' A;,CIA spokesman. said Casey would Indonesia was open and.above-board, i harce- no ; comment- on .the Justice and. his disclosure of his client's. I Department announcement. Sen." Identity, as required by. the attorney v ::rr -r r.u S o p- IT ' A Y T i p RE S?r? r r sa E T . ':i ~.. `- a ,1 i 1. ~'.I FJ:. R Say 1 ,,4?` L f P. CR E DITS r- i.i'S i'?r'-1'-4E i a t.faraE $i U.S. C0MPA'l1ES TO THE INJOi#":S.IFI13 COIL. !'1O1dOE{JLi. YuE L ' F.12LED, I I I 9I5 T HAT ThE PPYr'!EPITS 010 NOT OOURLIF FOR CREDITS. UPSE`i 3 iC CORrvIN T(f DOCUMENTS WHICH HP'rE ir-EE.N MRDE PUELIC IN T H7 CASE , EEi;"I.NG A LETTER FRC,m THE I~? IiJDICr'3T;fd6 TiiaT TiE OI _ CCO:,PANaiE.S COULD RESUME GETTING TRY C ;EDITw IF-' INDONESIA CHA-GGEO THE P u'RU,Ii#ri Or TH,E CO,t-#TPACT L.c;D R. J!H1CH IT 8A0 SOLD OIL TO 'f_~.i?4E :ICaN t.- a f l'ft ~? A I .. A S E Y 0111 HOT,9 HONE'E it FEEGISTER AS Ti':S. AGENT OF R FOREIGid GCO. Er:i- r t NT JiiiDE?R T i;E Tcr k Or T?fi# t?CT. ) ?II [H SAID THAT THE DEPRRi r1EF#T S ENVESTIF=ftION FOUND THAT C?EE`f T E:Fi?iII Rc rl TO r r?EGI S ir J EF Er-. Zt SE HIS E >ESEr TRT13TrI+ .t Oa-r PssC ,,J } i ad a f , T ~c+ ;s :',~i . ac } E }~ t llGEi.+t 7r SLa_ID f'JOTy -Iay?%.g4L' E. EGFtO?'T.S T O CHRi4. S^ -POLI7C lr. i i - i HE Ear` 10 E NC E I tr0:L CrATES T P, P. [ aSEY S REPRESENTRTI0ix OF IidCICa N ES Al 1R 14 RS.', LIHI rED TO EFFORTS---TO _OETRINs. AS E'?'P.EDITIOUSLV R= FCiESxELEy AW FGREET1E'-#T -HITH THE ?HTEF'NI?L PE%EI L.=E. SERVICE, RS TO THE CHANGES. TnAT HOIULO EE Hf-CE 5SRRY :Irt IHr, ONES IRH 01L PPC{DUC TON Ss' --P-l' G ?COTh`ACTS RHO TAX CODE TO ENSURE THAT:r"''cIEa~i'TS 1,RCE NDER : irrE CLai#Tf T':TS -40UtD cE CPEDITr'LE LINDER T.HE UN TEL~_ RTES TAS LPidi ~~;iTi S:tIO IPA HI5 REPORT TO THE U.S..' ,. S.. COURT *OF RE: ERLS I}# A EH1PG 0i#. ti P+'A 1 RN DAL E- `E'TERSOid S:RI0. CASEY HAD NO IMMEDIATE =Or,i''ENT UN THE fATi0ai:#EY GiEHERnL'rDECISION. THE- JUST E iEP PPTi#EN T. SRIC_ THE REPORT idft`S F-ILED EEC i TL :f O'J PIEDNESDRY :.RND RELEASED AT .Sr1ITH3 5 RRECr:UE':T= UNDER-- U.S.:. Tfi LRH OIL.:CCar PANIir5 THAT OILY OIL FROH - OF-EIGIN 3 E. Cif+Y.E4~l?1Ea4NTS :CRN? GET fi' CREDIT fiEDt#CI##.G THEI 11. RA O LIGAT:CaP#: THE. R?#,0UNT, THE\''.PR IN? T"R/ES JO. THE FOR?:IGN GO 'ERNMENTt RUT THE,' GET ONLY .A.JiP:Sit4E5S w E>?EN E .DEDUCTION F{]?t,THE SPEND IN6.CLAS S Ii=IED A j:.T.} P LENT TO- THE: FDREI:ui- G+ VER IN FOR-THE OIL. THE .TRERSi r'*~` _ E RR:T'~tE?#I ~.cHAN~EC+ ITS i ._:R' PRETATION_':OF'THE IND0id~_ II-iN c r ~-iin r r rr*r n rrt'. pxpY :4r -k e r`~ ~ T ~c,C.ti1~cF CS1- 9 ,1,~0 0' O,~a_QQ03~ tT'?-~ Approved For Release 2006/05/17: CIA-RDP -fb0901 R00040 fit. N%..i. 'L9'?_. ~`~. a. +~l :iw Ay alf i i3om" - f ' Pont ri-c xr=,ar The CA's pubiic relatfors chief Rion- day calved his job frustrating because he cannot teal the public 09 percent of w at .F, :t,'.lliam Dos,+leil, 55, the agency's external affairs director, told the Houston Chapter of the Inter'natlonal Association of lJusincss Com- mun1catcrs the . CIA doesn't go locking for publicity. "It knocktt on our cteor," ' The reason THE HOUSTON POST 6 April 1982 rf its credibility with Congress and the 'its by 1976 after the agen- involvement with domestic spying .~w~3t ?cv;~~led.. ' c 3