VOTERS HELPED REMOVE CIA LIMITS

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP91-00901R000600210006-6
• Release Decision: RIPPUB
• Original Classification: K
• Document Page Count: 9
• Document Creation Date: December 20, 2016
• Document Release Date: July 31, 2007
• Sequence Number: 6
• Publication Date: November 5, 1982
• Content Type: NSPR

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NEWPORT NEWS DAILY PRESS (VA)
5 NOVEMBER 1982
oters laelped Re
move
McMahon talked. about CIA's
By BOB EVANS
Staff writer
WILLIAMSBURG - The Central
Intelligence Agency, with the'help of
the American electorate, has gotten
Congress . "off its back"' during the
e
deputy past v ars, John N. w director of the CIA, asa d
Thursday.
Many of the restrictions placed on
1 intelligence gathering during the
1970s have been removed, McMahon
told a group of College and William
and Mary alumni and students attend.
ing a banquet for the Order of the
White Jacket. The order is composed
of people who worked their way.
through college. in food service jobs.
McMahon did not provide any spe
cific changes, but said, "I think the
people of the United States were the
first to recognize" that some Congress-
men had gone overboard in restricting
limits
the agency's activities. They made wise e said,
their feelings known at the ballot box, conomic decisions he
he added. The spread of technology
Some of the changes in con res- friendly nations has also become more
sional oversight of the"CIA during the important. ? in recent
.1970s were good and should remain, The -Soviet U Years, he said,
however, McMahon ,said. pion "knew the details
f of our _C- "airplane before it fle
"I take a great deal
"
t
whil
e
o
heChinese':`have a copy of otir
in--knowing that yaur sati(elected)sreprefaction-
sidewinder missile," he said,
sentatives know and abnrove. what
'A'-- world, ne become ?t wnictj the CIA has
said =F a more involved xecentl
1;4- .1ilonitoririg the spread of.intr
afive or more years f
o
r
mnowt' rroris M
atianal
, i.m;cMahon said.,
won't be just me or William Casey
(CIA director) answeri
?
t
Ten
he
ng
years
qu
,tions ... we'll be in goodes- ago, onlyS n
ations had
said. company.". be to worry about terrorists;" he
said.
This even-handed a to SI ince nations a
then, the ndnumber has
grown
IIgence-
ath
g
ering could't h
nave come people have bee more than 12;000
too soon, McMahon said. McMahon said, n killed by terrorists,
The CIA's job since th
e early 1950
s
has - grown from "Intelligence is i ,
"a
d
eed a
"""uman d dt is
-e- .usry11 fense against the spread of: Commu-: M growing cMahon . the growth in-
said.. all time,
nism
iE
y
Al
urope t the
p
ooint whereit
is concerned
not justith
w military or
political knowledge,': It now handles
seemingly unrelated inform
ti
a
on such
as "the problem with narcotics -
where it comes from and who the key
players are," he said.
The agency is also -responsible for
gathering information on friendly -na-
?'tions such as Japan and those in west-
ern Europe that are "emerging as eco-
nomie competitors" in the sale of tech.
nology, he said.-
j
For each 1 Percent' increas in'
unemploy e
ment, the'U.S. loses $25 mil
he lion a said, in gross national. product,
,
America can no longer .count on;
unique technological
it advances-.to keep'
s people employed,. he said-'
The impact. of those high tech-
nology competitors overseas must be
watched closely so the U.S. can make
MORI/CDF pp5,8
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WILLIAMSBURG VIRGINIA GAZETTE
27 OCTOBER 1982
CIA Official To Speak
WILLIAMSBURG - CIA positions in the CIA's four direc-
Deputy Director . John. N. torates.
McMahon will speak to members In 1965, he' was appointed
of the Order of the White Jacket deputy director of the Office of
at 7 p.m. Thursday in the Cam- Special Projects,". which is re-
pus Center ballroom at the Col- sponsible for reconnaissance and
lege of William and Mary. technical operations. He was
The Order of the White named director of the Office of
Jacket is a group of W&M Electronic Intelligence in 1971.
alumni who earned all or part of .he was appointed college expenses .by work- In. 1973; direc-
ing in the college cafeteria or in for of the, Office of Technical
restaurants. Services.
The banquet is scheduled as In 1982, McMahon. was ap-
part of W&M's homecoming ac- pointed the agency's executive
tivities this weekend. director::and-was responsible for
McMahon,. a graduate of Holy day-to-day "management .of the
"Cross College, joined the CIA in. CIA..He was.. -appointed deputy .
1951 and has ,served in senior director in June
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FFJFXD
ON pnG: 1--
T H V!IJ.S'r-ii` s `0 dPO:ST
20 SE: RJR 1982
U.S. -Coris.ide'rs Return
Of Marines to Lebanon
By John M. Goshko
t.'ashIngton Post Stat Writer
The Reagan administration, holding firm to its de-
mand that Israel withdraw immediately from West Bei-
rut, was considering last night whether to send U.S.
troops back to the Lebanese capital as part of a new,
temporary peace-keeping force involving France, Italy
and possibly other countries.
Administration sources, while stressing that no deci-
sions had been made, said the idea was under active con-
sideration because of the need for some force capable of
preventing further tragedies such as the massacre Friday
of Palestinian civilians and maintaining stability'in Bei-
rut until the Lebanese army can assert its authority.
Sources said that was the main topic of a 75-minute,
Cabinet-level meeting presided over by President Reagan
yesterday morning.
[The United States joined in unanimous approval by
.the U.N. Security Council early yesterday of a resolution
condemning the "criminal massacre of Palestinian civil-
ians in Beirut." Details on Page A19,1
A working-level group of State Department and De-
fense Department officials was directed to study the op-
tions further and report to the White House last night,
with the expectation that a decision on what course to
follow and the timing of an announcement will be made
today.
France and Italy" which participated with the United
States in the multinational force supervising evacuation
of the Palestine Liberation Organization from Beirut ear-
lier this month, have announced willingness to send
troops back in the wake of the killings.
However, the sources said, President
Reagan was not,ready, as of last night, to
acquiesce in reconstituting the force un-
less-he is satisfied that the need cannot
be met through other means. These in-
clude stationing United Nations observ-
ers in Beirut or redeploying there the
U.N. International Force in Lebanon
(UNIFIL) from southern Lebanon.
In addition, the sources continued, the
president insists that any U.S. participa-
tion be tied to conditions such as guaran
tees of cooperation from Israel and the
Lebanese government and willingness of
other countries to join the force.
In that connection, the sources said,
the administration is exploring whether
additional countries .can be persuaded to
send troops.
Reagan's caution about returning all or
part of the 800-member U.S. Marine
Corps contingent to Lebanon is under-
stood to be rooted in concern about ha-
tred between feuding Moslem and Chris-
tian communities there.
It could engulf the force in fighting
that would result in U.S. casualties or
shooting at Lebanese or Israelis.
The administration fears that such an
outcome would stir a hostile reaction
from the public and Congress. The pos-
sibility of U.S. Marines fighting Israeli
forces or any of the Lebanese. factions
battling each other could create great
difficulties for Reagan's hopes of getting
Arab-Israeli cooperation on with his new
Mideast peace initiative. However, some
sources, acknowledging obvious risks in
returning Marines to Beirut, said they
G'ca1 _INU D
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VOLUME 6 O NUMBER 8 -
August 1982
News Supplement to IEEE Spectrum
Industry, Federal leaders
discuss information controls
Washington, D.C.-Government defense and Intelligence representatives
told Industry leaders that technology transfer should be viewed as a
counterintelligence problem ratherthan as a trade problem. Speaking at a
June2 roundtable sppoonsored by Spectrum In Washington, D.C., are Jan Herr-
Ing, chief of the TechnologyTransferAssessment Center(left), and Central
Intelligence Agency Executive DirectorJohn McMahan (right). Mr. McMahon
recommended that computer manufacturers not worry as much about
restrictions on exporting outdated technology as about Soviet thefts of cur-
rent developments, such as plated-disk memories.
Erich Bloch, vice president of IBM, suggested that Government should
place more reliance on Industry's own desire to protect Its secrets, rather
than on regulation of sa ios.This view was supported by Edward David, presi-
dent of Exxon Research and Engineering, and by Henry Bachman, vice presi-
dent of Hazeltine Corp., who suggested that Industry could do a better job of
safeguarding Information if intelligence representatives would explain what
it was the Soviets were trying to stea I and how to thwart them.
Both Industry and Government represents lives agreed that the current
system of export controls on technical Information free the special reports
on technology transfer in Spectrum, May, p.641 Is both Inadequate to protect
information that needs protecting and hopelessly complex when itcomes to
allowing nonsensifive Information to be exported.
By the end of the meeting, a consensus was reached that the Government
needs Industry toset priorities for different kinds of information to be pro-
tected and to see to It that the mechanisms of protection do not strangle in-
novation and economic growth. It was also agreed that Industry could use
the Government's help In learning how to protect proprietary Information
from Intelligence efforts. -
Among those from Industry participating In the roundtable were: Grant
Dove, senior vice president, Texas Instruments Inc.; Fred Garry, vice presi-
dent, General Electric Co.; William Howard, vice president, Motorola Inc.;
Gordon Moore, chairman, Intel Corp.; and Robert Schmidt, vice chairman,
Control Data Corp.
Representing Government in addition to the two CIA officials were:.
George A.Keywarth, presidential science advisor,who assisted Spectrum in
planning the meeting; Gus Weiss, National Security Council Staff; Stephen
ryen,deputy assistant secretary of defense for international trade and
security policy; Michael Lorenzo, deputy assistant secretary of defense for
defense research and engineering; Steven Garfinkel, directorofthe informa-
tion security oversight office, GSA; Ernest Johnston, senior deputy assis-
tant director for economic and business affairs at the State Department;
Bohdan Denysyk, deputy under secretary of commerce for export ad-
ministration; Joseph Smaldone, chief of the arms-licensing division in the
munitions control office of the State Department; and Donald Langenberg,
deputy director, National Science Foundation. A data lied report of the
meeting will appear in the September Issue of Spectrum.
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. I PI I IIN I L
ARTICLE A.PYEARr
_ON PAGE Z
NEW YORK TI2 Z'S
2I JULY 1982
Analysis/Lesfia H. Gelb
Political `hif't Illustrated by Moderates~'
SpedalwTheNew-lark Timem ! ,p ~+ ~*
WASHINGTON, July 23 - In recent De a tu_;L~ e,
weeks, the three officials generally re- s , 7 . ON t 9, Mmfflam - - .
;.: with the United States's European
left Government, each a man with im-
pressive military credentials. allies on that subject. Like the offs.
of just how -far the political center of. a> "' ^ r participated in the discussions, the
Administration. It is also a reminder not agree to the deployment of new
Y American medium-range just how steady and deep institu-
range missiles is
tional roots run in Washington, be. Europe unless arms control talks with
neath shifting political fashions. Moscow were under way. It was a
The three officials, Secretary of matter of European .:, politics that the
State Alexander M. Haig Jr., Gen amencan military understood, even
David C. Jones, the Chairman of the MMthough the point had not quite sunk in
Central Intellgence Agency, were Alexander M. Haig Jr. also joined forces with Mr. Haig and-
classified as conservatives in the Car- the State Department in arguing that
ter Administration. In the Reagan Ad- - the terms of the . arms limitation
ministration they were classified as It was not unusual in the last year treaty should , be observed, even
moderates, a shift that eventually be- and a half to hear White House offs- though Mr. Reagan and those close to
came an element in the departures of cials or political appointees in the De- him had pronounced the treaty sorely
Mr. Haig and Admiral Inman. . fense Department express a certain deficient.
mistrust of them, They were often In all of these cases, General Jones
? Associated n~ren
Adm. Bobby Ray Inman
What actually changed was not the
three men's views, but the political
climate in Washington.
in the inner councils of the Reagan
Administration, the three men were
the main advocates of arms control
talks with the Soviet Union, of a less
devilish theory of Soviet behavior, of
more tolerance in dealing with the
world as it is. As a result, they and the
institutions they represented were
often out of step with the hard-line ap-
preach of the White House.
viewed as having divided loyalties, to and Secretary Haig had greater com-
their institutions rather than to the mand of the facts and the diplomatic
President. The political men of the histories. They carried the day each
Administration were never quite com- time with President Reagan.
fortable with them despite their mill. They were less successful. in. other
tary backgrounds. traditionally .a matters. For example, while. both
good conservative credential. ? men and their institutions worried
There was trouble from the outset.
Defense Secretary Caspar W. Wein-
berger wanted to cut short General {
Jones's second two-year term as
chairman of the Joint Chiefs of Staff
because the general had recom.
mended Senate approval of the second
strategic arms limitation treaty. The
general had also' supported the
Panama Canal treaty, much to the
dismay of the Republican right wing.
Mr. Weinberger, however, was per.
suaded to keep General Jones on the
job because bf the uproar caused by
rumors of his impending di miss l;
the Secretary and White House offi.
cials reportedly did not want to put
themselves in a position of being ac-
cused of politicizing the military.
In any event, General Jones stayed
on for a full second term and for regu-
lar,retirement, and he became an ad-
vocate of beginning talks with the,
Soviet Union on medium-range mis-
siles in Europe at a time when the
political appointees in the Pentagon
were against such negotiations.
about the growth of :Soviet ,military
power, neither was prepared to argue
that the United States was in a posi.
tion of military inferiority. Soviet
military superiority was an article of
faith with the Reagan team.
General Jones and Mr. Haig essen.
tially restricted themselves to ar-
guing that in some respects the Sovi-
et had the advantage but that in other
respects the United States and the
Western powers were still better off.
They emphasized "adverse trends" in
the military balance rather than cur-
rent inferiority. They were often
joined in this view by Admiral Inman
and the professionals of the Central
Intelligence Agency.
Admiral Inman also proved a thorn
in the side of the Reagan Administra.
tion with his repeated opposition to ef-
forts by Reagan political appointees
to expand the role of the C.I.A. to in-
clude certain kinds of domestic
spying. Like most senior C.I.A. offi-
cials over the years, he had respect
for covert operations only under care-
fully controlled conditions, and he had
a sense of their limitations.
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THE NORWALK HOUR (CT)
16 July 1982.
Z
br_{nm.
'11151vaRnSe Ponta,
Defends Record
Washington, D.C.
To the Editors . . -
Your 30 .June 'editorial stating
that I must have been involved in
illegalities during my 31 year career
with the Central Intelligence Agency
represents a grave injustice not only
to me, personally, but to the many
dedicated CIA employees who
honorably serve their country, often
with great personal sacrifice.
The Senate Select Committee un ,
Intelligence conducted a scrupulous
investigation of me to ensure my
'worthiness for the position of
Deputy Director of Central.
Intelligence. If you check the public
record of that investigation and my
subsequent confirmation hearing,
you . will find it replete with
references to my "honesty, integrity
and forthrightness." I believe the
Committee's unanimous
endorsement of my nomination
represented a strong vote of
confidence both in my integrity and
'that of the institution I have served
for 31 years.
Your readers deserve to know
that we in CIA take pride in living
up to the confidence President
Reagan expressed in us during his
recent visit to the agency when he
said, "I have full confidence that
you will do your job vigorously and
imaginatively while making sure
that your activity is lawful,
constitutional, and in keeping with
the traditions of our way of life."
John N. McMahon
Deputy Director,
Central Intelligence Agency
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THE WALL STREET JOURNAL
`._ --- 13 JULY 1982
The Soviet Forgery War
It sounds like a John Le Carre spy
thriller. Soviet agents forge some offi-
cial-looking U.S. documents and try to
use them to stir up anti-American sen.
timent in Europe. There are letters
from President Reagan, former Sec-
officials who cooperate with the U.S.;
to obfuscate the true nature of Soviet
actions and intentions, and to create a
favorable. environment for the execu-
tion of Soviet foreign and military pol-
icies.
John McMahon
who
re
,
p
sented the
ranking officials. There are sugges- CIA's report to Congress in 1980 and
tions about a military coup in Greece recently replaced Admiral Bobby In.
to overthrow Socialist Premier Papan- man as deputy director of the agency,
dreou, a secret agreement for a U.S. told Congress: "There Is a tendency
intelligence base in Sweden, a letter to sometimes in the West to play down
King Juan Carlos of Spain about ways the significance of foreign propaganda
of countering opposition to joining and to cast doubt on the efficacy of co-'
NATO and efforts to neutralize the vert action as instruments of foreign
anti-nuclear movement In Europe. policy. Soviet leaders, however, do not
Although it may sound like spy fie- share such beliefs. They regard pro-
tion, It's all too real. These are actual paganda and covert action as auxil
forgeries by the, Soviet Uniori , whfd:: iary - lnsants' In the conduct of
were uncovered by'U.S. and allied in- their foreign policy by -conventional
telligence and released to the press diplomatic, militaryand economic
last week by the administration. The means."
forgeries are only the latest in a long The latest disclosure of the Soviet
line of Soviet propaganda and covert forgery campaign is another reminder
action measures against the U.S. that the Kremlin leadership Is con-
The Central Intelligence Agency ducting an orchestrated war of Ideas
presented a lengthy, detailed report to against the West. Americans have' j
Congress in 1980 about the Soviet tTn-?generally been reluctant to recognize
ion's es in 98 . bo this, quickly. dismissing suggestions
Way public , opinion_:..; that Soviet cultivation. may play a cru-
against the U.S. in Europe and else-
where. The report cited some 150 anti--, vial though of course not total role
terror-
American forgeries, many on official- In the growth of international terror-
looking stationery and su Ism and domestic discord in Western
pposedly societies..., This reluctance 'Is under
signed by top U.S. officials, which standable, since conspiracy is alien to ''
were uncovered by the CIA. It "con-:
servatively" estimated that the-Soviet' the American experience while red-
Union spends $3 billion a year on such baiting demagogy is not.
propaganda and covert action. Yet no American interest-least of
all the avoidance of demagogy-will
The Soviet Union's propaganda be served If serious Americans fail to
war has manifold aims: to influence recognize the nature of the challenge
world public opinion against U.S. poli- we face. When we are reminded that
cies; to portray the U.S. as an aggres- the Soviets use forgery as a routine
sive and "imperialist" power; to dis- .. propaganda tool, we have to ponder to
credit those foreign governments and what other lengths they may go.
retary of State Haig and other high-
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I... T I?.:I.; LP?EAtM
ON P"G
THE NEWSDAY MAGAZINE (N.Y.)
11 July 1982
uletlyin Coi
. By David Wise
- Photo by Ken Spencer
Some -weeks ago, an interesting
piece of information began circulat-
ing in the intelligence community the closed, spooky world of the Cen-
tral Intelligence Agency, Defense
Intelligence Agency, National Secu-
rity Agency, Federal Bureau of In-
vestigation and the other spy
agencies in and around Washington.
The word went out that William J.
'Casey, the director of central intelli-
gence, had bought an expensive
house in the exclusive Foxhall Road
section of Washington.
To men and women accustomed to
working with fragments, piecing to-
gether minute bits of intelligence to
form a larger mosaic, the report was
immediately seen for its true signifi-
cance. Better than any official- an-
nouncement, it meant that Bill
Casey, a Long Islander who has a
home in Roslyn Harbor, was plan-
ning to stick around as CIA director.
There have been times in the past
stormy year and a half when it was
not at all clear that Casey would sur-
vive as the DCI, as the spies refer to
their chief. There was a series of di-
sasters. First, Casey named his for-
mer political aide, Max C. Hugel, as
head of the CIA's cloak-and-dagger
directorate. Hugel was soon forced
to resign as the result of disclo-.
sures in the Washington Post
about his questionable business'
dealings. Then the Senate Intelli-
gence Committee, responding to a
barrage of publicity, began probing
Casey's own financial past. And
.Sen. Barry Goldwater (R-Ariz.),
chairman of the intelligence com-
point-blank for Casey to resign.
All of that took place last year,
Casey's first year on the-job. The
storm subsided. The Senate panel,
in a backhanded way, found Casey
`not "unfit" to serve. And through it
all, the CIA director - Ronald
gar's campaign manager in 1980 --=
managed to preserve his close per-
sonal relationship with the Presi-
dent. ("I still call him Ronnie,"
Casey has said.)
Among those who must surely
have heard the report - about' the
house off FoxhallRoad was Casey's
deputy, Adm. Bobby Ray Inman,
..who Sen. Goldwater and a lot of oth-
~er members of Congress had openly
hoped would be R.eagan's original
choice for CIA director. Blocked
from the top job, wooed by private
industry with job offers in six fig.
tires, Inman in April announced that
he was quitting.
In Moscow, the KGB has no doubt
already heard about Casey's nem
house. Very likely, Vitali V. Fedor.
chuk, the recently appointed chair.
man of the Committee for Stat(
Security, better known as the KGB, career who has managed to stay one
has already informed President Leo- jump ahead of trouble, barely avoid-
ing -entanglement with the likes of 1
And the report is true. J. William Robert Vesco during Watergate.
Doswell, director of the CIA's Of- For example, ? Sen. Joe Biden of
flee of External Affairs, a smooth, Delaware, a Democrat on the Senate.
Richmond, Va., lobbyist and former Inet~ vocal c c e Casey's
newsman whom Casey brought in as
his top public relations man, con the panel's findings on the CIA di-
firms it. Doswell said that Casey . rector, declaring. "Mr. Casey has
and his wife, Sophia, moved last displayed a consistent pattern of
month from their apartment some- omissions, misstatements, and con-
where in Washington to their new tradictions." And Casey's critics also
home off Foxhall Road. charge he is not really qualified to
run the CIA, since his intelligence
experience dates from World War
TT mhan 'nP worked for the Office 'of
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PHILADELPHIA NEWS
10 JULY 1982
'LI-.1fa Vase!!
`The Reaga administration is apparently growing in--
,creasingly -concerned. that its top officials might appear to
have conflicts of interest between their private. holdings
pied theirpublioduties.
. ...Well it might. Since a fair number of them are people of
considerable wealth and personal power, the matter should
,indeed be of concern, particularly since many of them would
not notice a conflict of interest if it leaped out of their break-
fast oatmeal wearinga derby hat
i ': ` When Attorney General William French Smith, for
example, used questionable tax shelters to avoid paying a
large share of his taxes, there was a proper public outcry and
,he quickly, if reluctantly, whipped out his checkbooks to
make matters right.''--
The conflict-there, of course, was that it could well-fairto
Smith to rule on the legality of the those same shelters. .
Men and women who go into-publicoffice often Out their.
financial holdings into -what -are known as "blind trusts."
Theoretically, at least, they relinquish-control: of .their in-
vestments to a third: party. If you believe that that system
always works you'll believe that, at least where blind trusts
are involved, it-isn't always true that the-rich inevitably get
.richer.'
But despite its potential for mischief, the blind trust sys.
tem seems to have worked fairly well.
At least one Reagan appointee has refused to have any.
thing to do with it CIA Director William J. Casey has insist-
t-ed on keeping-his a"' 'where he can see. it. By doing so
lase year, Casey. was able to sell hundreds of, thousands of
dollars in.oil stocks just before they plummeted : in value
because of the world oil glut. _
As-director of the CIA, Casey is privy to top secret reports
on, among other things, potential oil supplies throughout
the world - one of the factors that determines the value of
.oil stocks. Interesting-coincidence, what?
. A Casey spokesman has denied that the CIA director ever
used his insider's knowledge that an oil bust was in the off-
ing when he decided to sell off his holdings. Nevertheless,
the CIA has come up with a unique system to try to insure
that there won't be any hanky-panky going on. ' _
From now on, it says, DeputyCIA Director John McMa'.
hon will head a team of CIA subordinates who will keep tabs
of their boss's finances, warning him of any potential con-
flicts of interest. Thus, the public will foot the bill to make
sure that Casey treads the straight and narrow.
For his part, we're sure, Casey will be duly grateful and
will sell off each and every stock that might pose a conflict
of interest. When his term in office ends, he will be a wiser
but poorer man - and hundreds of CIA agents will have
been commended for their service to the boss.
The only problem with the arrangement - and one
admitted by the CIA - is that no one has decided, just what
would or wouldn't be a conflict of interest situation.
We can-think of one for starters: The fact that Casey has
adamantly' refused to put his financial holdings into a blind
trust in the first place. ..+~
0006-6
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