PRESS CLIPPINGS NOVEMBER 1979

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP05S00620R000501300001-2
• Release Decision: RIPPUB
• Original Classification: K
• Document Page Count: 126
• Document Creation Date: December 22, 2016
• Document Release Date: April 28, 2009
• Sequence Number: 1
• Publication Date: November 23, 1979
• Content Type: OPEN SOURCE

STAT
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No surrrise - this week's bignest subject
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 ARTICLE APP' L
AGE A6 __
ON P
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LOS ANGELES TTIES
U.S. Prairesis Hosh~
Soviet Broadcasts to Iran
MOSCOW-The _-Carter Administration has protested
both here and in Washington what it terms "inftarnmato-
ry" Soviet radio broadcasts beamed into Iran about the
siege. of the U.S. Embassy in Tehran by Moslem students,
Western diplomatic sources said here Monday. " - 1
The broadcasts have painted the embattled embassy as
"a center of corruption and. anti-Iranian conspiracies,"
termed the student takeover as "understandable and logi-
cal" and denounced the United States for giving the de-:
posed Shah of Iran medical sanctuary while he undergoes.
cancer treatment in New York. .7
:. +<
The Carter Administration was angered by the broad-
casts and considered them "very inflammatory given the
situation" in Tehran, the western sources said.; ?
The Iranian students are holding more than 60 Ameri-
cans hostage in the U.S. Embassy in Tehran, demanding
that Shah Mohammed Reza Pahlavi be returned to face
punishment for crimes against the Iranian people. Iran's
Moslem leader, the Ayatollah Ruhollah Khomaini, has im-
plicitly sanctioned the siege and has this far refused to ne-
gotiate the release of the hostages unless the shah is re-
turned
The Soviet broadcasts came from two sources: Radio
osco s arse an a e service arse is e basicTan-
SuaRe in Iran) and an a oice of
Iran." which Western m ence sources saw casts
station roa in t)ota arse anAbout
-10 million Azerbaijanis live in Iran, across the border
from almost 4 million who live in the Soviet Union.
According to Western monitors. Radio Moscow termed
the takeover as "totally understandable and logical" be-
cause the U.S. Embassy in Tehran is filled with what Ra-
dio Moscow called "agents of the CIA" and "U.S. imperia-
lists who have not eZasse their unpenausm against Iran." ?
"The National Voice," according to those same monitor-
ing reports, called the embassy "a center of corruption and
anti-Iranian conspiracies" and harshly denounced the
United States for allowing the shah-whom it called "the
lxeLiutioner"--to get cancer treatment in New York The
station also praised the "struggling and enthusiastic" Mos-
lem students who took over the mission nine days agm
The Carter Administration has asked the Kremlin to
participate in a joint effort to intercede with Khomaini on
behalf of the hostages by those governments with embas
.sies in Tehran. Sources here said the Soviets have indicat-
ed they are willing to do so.
. The broadcasts, however, indicate that Moscow also
hopes to gain political mileage out of the latest Iranian cri-
sis. "They just can't resist taking advantage of a major de-
terioration of U.S: Iranian relations," one Western diplo-
mat commented.
The Kremlin remains leery of Khomaini, who has lashed
'out at communism almost as often as he has at U.S. imperi-
alism. Last week, Tehran abrogated sections of a 1921 So-
viet-Iranian treaty giving Moscow the right to intervene
militarily in Iran should any third nation try to use Iranian
territory as a base for an attack on the Soviet Union.
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13 NOVEIMM 1979
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THE KIPLINGER WASHINGTON LETTER
9 November 1979
Dear Client: Washington, Nov. 9, 1979.
This situation in Iran is worse than the news reports indicate.
It's the beginning of the end for Iran as an independent nation.
And it's THE END of normal ties with us-that's for sure.
What caused such a sudden rupture? Well, it wasn't the reason
you've been hearing & reading-to force us to send the Shah back home.
That's just a facade, a smoke screen. The real reason is as follows:
Khc,meini's men wanted a clash with the U.S...to whip up emotions
and use the opportunity to take full power of gov't into their hands.
Russia egged them on. It is supporting the demonstrators there.
The "students" were led by Russian-trained organizers who are skillful
at swaying mobs, taking advantage of confusion, using it to their ends.
Khomeini went along with this.. .his anti-U.S. bias is still blazing.
Next step: Russia will keep Iran upset...keep things in chaos.
Using the pro-Soviet elements there to create more mischief...
feeding the turbulence and exhausting any opposition that comes along.
Then... get CONTROL... either directly or indirectly, since Iran
is the gateway to the Persian Gulf oil, which is Russia's MAIN goal.
One other important angle: When the i.ob invaded our embassy.
they probably got their hands on secret U.S. intelligence equipment.
Officials here know it was there at the time. They haven't yet learned
how much the Red leaders of the mob got. It's highly sophisticated stuff
that we ve been using to gather information about the Russian military.
The embassy staff undoubtedly tried to destroy it, but time was short.
Will Iran cut off its oil to the U.S.? That's far from certain,
but even if it stops shipping here, we could still get oil elsewhere.
From Saudi Arabia and other producing nations. Or the "spot market,"
where prices are MUCH higher. Then fuel prices would climb even faster.
Barring a total disruption of Iran's oil... to ALL countries...
There will be only minor supply problems this winter in the U.S.
On gasoline, best to expect temporary scarcities-localized...
perhaps gas lines here & there. Some brands less available than others.
Of course, prices will climb. The gov't decontrol assures this.
And producing nations have already indicated that another boost in price
will be voted next month... probably hitting hardest during midwinter.
Diesel and heating oil will be tight...prices up constantly.
Natural gas, propane... supplies adequate, but more expensive.
Coal, plentiful. Electricity, more than ample for normal uses.
Low-sulfur residual oil, very tight... and very expensive.
For the nation as a whole, the fuel supply doesn't look bad,
but there's not much cushion between supply and demand. Allow for this.
EXCERPT
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ARTICLE APP; ABED
ON PAGE-.._
THE PHILADELPHIA INQUIRER
14 November 1979
bran upsets takeover principles
By Jim Hoagland
WASHINGTON The siege of the
U.S. Embassy in Tehran has reversed
one of the few cardinal rules of deal-
ing with mass kidnaping:, In Iran,
time is on the side o1 the captors and
works against those who are trying
to free the hostages.
Because each passing day adds to
the domestic and international polit-
ical advantages sought by the Ira-
nian extremists who hold the embas-
sy, their promise not to kill their
hostages can probably be taken seri-
ously. The status quo is ideal for the
extremists' aims.
That is true in part because their
ultimate target appears to be not the
hostages, nor even the return of
former Shah Mohammed Reza Pahla-?
vi. With Ayatollah Ruhollah Khomei-
ni's connivance, the Tehran mob is
doing its best to further damage the
United States' standing in the Third
World and. in a sense,.America'gna-
Dual spirit.
The televised image of truckloads
if cheering Iranian workers and
farmers -hooting past the captured
embassy last weekend and screaming
support for the captors will have
made that point graphically for many
American viewers.
Ironically, many of those viewers
switched to the Tehran. news film
from Sunday night's broadcast of
"Dog. Day Afternoon." the Al Pacino
movie about 'a hostage-taking in a
Brooklyn bank. In the film, the police
followed standard tactics and
stretched out negotiations as long as.
possible to wear down the captors
and prevent them from harming the ;
hostages in panic. .
President Carter and. Secretary of
Analysis
State Cyrus R.' Vance endorsed such
tactics earlier this year when the U.S.
ambassador to Afghanistan, Adolph
Dubs, was held hostage by terrorists
in Kabul. Ignoring pleas from Vance
to continue ? negotiating with , the
terrorists, Afghan police and their
Soviet advisers rushed the terrorists,
and Dubs was killed in the shooting.
In Tehran, Carter confronts per-
haps an even more painful and diffi.
cult dilemma. The option of dragging
the siege out lies with the captors.
They. watch with evident glee as each
'day brings a rise in the tarnishing of
American prestige in the world and
in national frustration in America. .
.-A U.S_ military strike into the cen-
ter of crowded Tehran might stanch
this hemorrhaging of pride. It would
also probably result. in the death-of
the estimated 62 Americans thought
to be in the embassy. It is a tradeoff
that Carter has not been willing to
make.
The course of the siege has made it
-clear that this is terror with a differ.
ence and that Carter has. to choose a
.different approach. The goals and
tactics of the Iranian militants are
quite .different from those of the
Black September group that kid-
naped U.S. Ambassador Cleo Noel and
his deputy, G. Curtis Moore, in Khar-
toum, Sudan, in 1973.
President Richard M. Nixon decid-
ed immediately to-refuse to negotiate
with the Arab terrbrists. On hearing
this, the gunmen murdered Neol and
Moore .and a Belgian diplomat they
also had seized.,
In this siege; it is Carter who must
race the clock. His- most immediate
'task appears to be trying to get slight.
ly in front of rising public anger and
keep it within bounds. He is taking
steps that do- not endanger the cap.
tives but that do establish American
ability to. act His order Monday to
cut off Iranian oil imports will have
more symbolic than practical impact
Carter has refused to deport , the
i?
'former shah, who has. undergone 4
? cancer surgery in New York. In addi-
tion to dispatching special negotia-
tors, the President has asked other'
nations to intervene with the 79-year-
old ayatollah, but with no success.
The clock has been turned on its
head in this can because the siege of -
the embassy is a key weapon in a
power struggle inside Iran. Islamic
extremists used the takeover to
sweep away the weak but Western
oriented government of Prime Minis-
ter Mehdi Bazargan_ Each. day of -
demonstrations around the embassy
consolidates the radicals' hold. on
power.
_~ Moreover, the militants have
.pinned the Carter Administration
once again to the legacy of a quarter
century of supporting the shah, a
legacy the State Department had ,
hoped to forget.
Despite the terror tactics being
nsed,the new demand for an Ameri-
can admission of national guilt as
part of the price for freeing the hos?
tages will be popular in parts of the
Third World that. feel the United
States has, backed too many World
'tors" in too many places
War IL
Carter and his principal advisers
came to office declaring a fresh start for American relations" with. the
.Third World. They led- ed to eradi- i
"sate the covert"operations and
ictes a a o ten i am
worm opinion agaum eIca-
But the longer the siege continues,
-the less chance there is?for Carter or 1
his successor to- find policy
support. for a sympathetic
toward the Third World: Calls for a
;.return to covert intervention- of the ;
,kind that brought Pahlavi back to
power in 1953 - and even more
bel- ligerent action to-re-establish Ameri-
can prestige point to quite a differ-
ent global future than the one Carte
&eemed to envision on election day
'three years ago.
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ARTICLE AFPE4RED THE BOSTON GLOBE
ON PAGE 14 November 1979
Spot sales. could ease ,
cutof f of Iranian oil
By Bruce A. Mohl situation also was blamed for the surge in
Globe Staff. - oil prices on the spot market and pressure
For the sQc and time in less than sl year, within the Organization of Petroleum Ex-
the United States will lose its access to porting Countries to press. for (and get)
Iran's oil; this time by its own choosing. the higher prices that have played havoc
It is *too early to predict what. impact with the world's economy.
the cutoff will have this time, but the sit- While the.Iranian situation probably,
uation? clearly is different from the one Played a role in all these events, how big a.
role
that existed on Dec. 27, 1978, when Iran, is uncertain.
Central Intelligence' A enc . figures;
the world's second largest oil exporter at.
show a t e loss o Iranian of had little
the time, ceased exporting oil altogether.-
Unless Iran intends-to reduce its pro- impact on world crude oil production. Cit-
duction, this time the 500,000 barrels of ing increased production ..by other na-
Iranian crude oil imported directly into lions, the CIA said that in the first three
the United States daily-will probably be months of 1979 world crude oil production
sold elsewhere rather, than be losientirely reached 60.4. million ? barrels a day and
to the world oil market. then rose to 621 million barrels in April, a
If so, that would mean there would be . net boost. in oil production. despite the
"spare" oil somewhere that could be -Iranian cutoff. .
bought by the United States, most likely' 7 The GAO reportwent a bit further ind
on the more expensive spot market... ? tried to pinpoint what caused the gasoline
"If Iran continues to sell crude to. the lines. Many of the problems could now re-
rest of the world, it eases the pressure . emerge.
elsewhere and eases the pressure on us," - . The GAO-laid much of the blame for
Dan Lundberg, who publishes an authori-; the lines on the US government and thet
tative gasoline newsletter, said. The oil companies. It specifically cited: ,
maximum Iranian hurt would be. if Iran ce Arbitrary oil company allocationi
procedures.
cut off.the whole world."
That "maximum Iranian hurt" is what sure from the Energy Department, to buy
happened earlier this year-when oil ex- oil on the more expensive, spot-market:.
ports from Iran were totally cut off until _ An "unusual reduction" in domesti
April 1979. The cutoff meant a loss to the oil production of 200,000 barrels per day,
United States of 600,000 to 700,000. barrels _ Energy Department regulations. ou
of crude oil per day, according to the Gen gasoline allocation and pricing. n&
eral Accounting Office (GAO)-. The loss of high-quality Iran oil-.
It was widely believed that the, sujnt' )h-- which caused the problem of finding Simi
mer gas lines in the United States were a? lar.light, low-sulfur crude, the type of
direct .result of the Iran cutoff. The Iran ' US refineries heavily rely on.
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ARTICLE AP" "
ON PAGFsL
THE WASHINGTON POST
15 November 1979
Jack Anderson
A/T ? - _ .. N w Khomeini
f i ~-SS
.of
may turn out to be of the country. For three Years, Iran She Carter to wale loo to stop th pb it { late. '
The The loss of Iran y whirled in intermittent bedlam.
the most grievous blow to the United The miserliness of the oil comps Mossadegh was already shaking the
s of nies, the growing appetites of. the, Peacock Throne. The alarmed shah`
States since the Vietnam fie
flowing turned to the United States for sup-
d the crucial oil fields of
e
'
y,
has opene
Arabs for the oil mon
-
the Persian Gulf. to a possible take-
under their feet, and the pen- port. F;
wa
teran ?d
y
a
over by hostile forces. chant of the State. Department for The president rushed ve
For two decades, the united States, taking the path of least: resistance eign policy strategist George Ball: to
had built up Iran to be the protector opened the door to a fatal precedent. Iran. Ball concluded that the 'only_?9
.. _uat rn do about wav to nrevent-a total collapse otlZtte
ci-
UL ZU"
Gulf. Then overnight,' the, govern-, - M~degh's upheaval was resoive~i government with the shah as
meat fell into ant~American? hand& -? not by seeking a new and just modus viltan control, figurehead-
Suddenly,` Ameriea's.' overseas oil = vivendi V1 th awakening nationalism - more than a
arded this adviee-e
Iran's aeon
e
i
di
r
t
g
ng
sr
oy
er.
Car
supply has become dangerously vul- but by first dest
nerable. omy through a worldwide the urging?of his military chiefs;,he:
om secretilocuments, here's the dustry boycott of its exports and ; .- ordered a small naval task forse,:lect
lear carder Constellatiorn
g Iossadegh
i
n
Fr
by the nuc
then': by. depos
story of the U.S. failure in Iran. It through a CIA coup... Into the Persians Gull:. Then
goes back-to post-World War II: - The. CIA installed the.young shah abruptly canceled the order.
er.
t
d
.. _ larl;U
orf
f Mius-the president
In 1950 Mahammed" Mossadegh, on the Peacock Throne andy assume er
anies to rt. `"
I
I
vice or sup~pnds of
age 70, . the - eccentric leader of a ; ted . the .oil - comp
S
s
itarion- of Iran: But the som t
Na-
i
l
i
o
an
their exp
h
splinter . party in the Iran
m _
" he said blaadly.
f Mossadegh- was not c
ng
:
'to inflames
t
I
o
1
o
-
o
ran,
s
gh
people of
tional Assembly,, began
the nation with his demands for na pletely exorcised. His ringing p the pimple went?on a rampaB 4
tionalizing oil. eats, could not Qe htremameddasha trampled. down the shah's SAV,erti.
To Western eyes, _Iv` , growing undercurrent, buooung-be-
.. . - - - They turned for leadership tv*ylp--
R
holi
u
.-----
-nosed -- factors wlucn, given `
file people. tollau
id Moslem who embodied-
i
o embo led
i
os
lem
g
c
Iranians' superior esthetics M such . --- :. e - ig
Tb,sr.aandercurrent went unde cleat r
Mnc-
if
eg
in a
ge,
po LUC"
slams. Three years of incredible
Carted used the tremendous lever- w n+~
l in a lie-
urita
star, grisly murders, baroque impos age of -the-United States, meanwhile, - a squeamish age, P
tures, fantastic chaos and incompa- to persuade- the shah to relax his:'-;' donistic- age, intolerant in an' ec L
table, demagoguery followed. The ease press censorship; release ` menical age - in short, a fanatical
pajama-clad "Mossy" roused the mast grip,
sea with h impassioned spieks,"weeps.. political prisoners. The shah later :, man in a frivolous age. He would sad a
to
leasure,'life
and blubbers, after which he would -. these moves ? cno doubt onvinced. his enemies- ? iefnce, pil wealth, saf itself ety, coriYepursuntl
collapse in a great- heap and be car- that he was weakening. his, beliefs.. In so doing he puts pq.~
tied, unconscious, through admiring He started to crack down. and the on the: table which his Western'.3-
hordes driven.amok by the sight: of bloodbath.. lasted' two days..- This. _ versaries have thus far been uay~tillr
his inert body.. The drama escalated. from lug to call..
magnificently; withrthe shah run out- prompted a telephone appeal _
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ARTICLE L LAID im w YORK TIMES
ON PAGE 15 NOVE BER 1979
Dependence on Iranian Oil
United Japan
States -s.. 4 13%
In Aug.
of Total
Consumption
in Sept.
STAT
Th
e New York nm,/F4ov. 13. IM
All percentages except; the Canadian are based on the latest figures made
public by the United States Central Intelligence Agency, which.issues?a pert- I
percent of American oil consumption in May and 4 percent in September,
have been suspended linden an order issued by President Carter on Nov. i2.' -
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AF TILL A'PEAKED
ON P_1GE -
THE NEW YORK DAILY NEWS
15 November 1979
Carter mices
U.S...
gra'n s'...$5B__.1n
By FRANK VAN RIPER
and LARS-ERIK NELSON.
Washington (News Bureau)
With Iran about to undermine the
value of the dollar by withdrawing
all its deposits from United States
banks, President Carter proclaimed
a "national emergency" yesterday
and froze $5 billion worth. of Ira-
nian assets in the U.S.
At the same time, the administration
launched a new strategy to secure the
release of 62 American hostages who
have been held by Moslem militants- in
the U.S. Embasy in Teheran since-Nov:,
4 . r' _. . _
Secretary orState Vance flew to New
York to try to block a meeting of the
United Nations Security Council de-
manded by Iran's religious leaders.- -
The new strategy is that the -U.S: _-
which has refused to surrender the de-
posed and ailing shah, Mohammad-Reza
Pahlavi, in return for the hostages-
will agree to a Council debate of Iran's=
grievances against the U.S. as soon as
the hostages are released. - '. -
Beat 'em to punch
The freeze of Iranian assets, which
applies- only to government holdings,
had been under consideration in Wash-
ington for several days. It was triggered
at 5 a.m. yesterday when a Treasury
Department duty officer received word
that Iranian Foreign Minister Abol Has.
san BaniSadr had ordered the withdraw.
at of what he said amounted to X12 bil-
lion in Iranian assets from U.S. banks.
BaniSadr had thought, according t
interviews he has given,m Iran, that al
of the money_was in the Chase Manha
tan Bank, and that its chairman, David
l;ockefeller, was paying interest to his)
friend, the ousted shah, who is undergo.
ing treatment in New York Hospital.. - .
In fact, the largest amount was $1.3
billion in Treasury notes held by the
Federal Reserve Bank in New York, and
the rest. was scattered among other
banks. -
Receiving word of the imminent with-
draw
- "I, Jimmy Carter, President of the
United States, find that the situation in
Iran constitutes and unusual and ex-
traordinary threat to the national securi-
ty, foreign policy and economy of the
United States and hereby declare a na-
tional emergency to deal with that
threat."
Used in the past
Carter acted under the authority of
the international Emergency- Economic
Powers Act. Similar authority has been
used in the past to -block the assets of
Communist China, Cuba, Vietnam and
Cambodia Freezing of assets does not
mean U.S. seizure of foreign property,
but does prevent its owners from. with-
drawing it from the country.
At an early morning White House
press conference, Miller said that the
A long-held principle
In making this argument, Vance was
asking U.S. allies to violate. the long--,,'
held principle that any issue at least i
should be allowed to come up for de-~
bate. But Hodding Carter was adamant:
. "There is no - way this government
can or will negotiate under the gun. otl
Its people being held illegally within
our own compound,", he's * aid. - "Ther
can be no discussion about terms,. ages
da items or complaints so long as ' o
people are being held.".
A State Department task force con
ued yesterday to make periodic contact
with the student- inilitants- who se'
the embassy. One scare occurred, U.S
officials said, when the Iranian students
received a garbled version of - an-
dent in Denver, in whicir an Iranians
student shot and killed a 17-year-old
.American youth who - had.smashed. hi
window.
"The Iranians got It the other way
around: they thought the student had
been killed, and they were really getting
threatening," one official said-"Wo-had
to talk them. out of. doing anything to
the hostages."
Praises our values
Meanwhile, in Tehran, Foreign Minis
,ter BaniSadr gave a slight signal that
Iran may be seeking a way out of the
man
crisis: He praised America's "hu
values" and said that some of the non-
American hostages at the embassy might
be freed. Reports had said that 60 American
hostages were being held. Yesterday,- its
was reported that there were: 98 hoe
tages in the embassy - 62 Americans.
and 36 non-Americans. Most of the non-
Americans were identified as Asians.
Bani-Sadr said' yesterday that he
'would ask the militants' holding the hqt~
tages to investigate the cases of the no
Americans, including cooks and 1a. ' ?
tors, and release them if they
found to be "innocent"
Then, in a remark that- contrasted]
sharply with the anti-American tone--of
William Miller.
d
QZSC a :4 a.m. By 8 , the
re an executive order,
action was designed to protect U.S.
owners of property in Iran from uncom-
pensated seizure of their assets.
The value of the dollar plunged on
European monetary markets when word
.was received of the Iranian decision,-but
the markets closed before they could
respond to Carter's retaliation.
In New York, the stock market d .
clined but regained ground as the day
.wore. on.
A graceful way out
Vance's hasty flight to New York yes-
terday morning was part of an emergen-
cy strategy both to block a UN Security
Council debate that might have diverted
attention from the hostages and,. more
important, to give Iran's religious lead-
ers a graceful way to back out of the
stalemate. - . -..._..
The U.S. has been adamant that It
will not hand over the shah to obtain
the release of the hostages, but U.S
officials realize that they. must give the
Iranians something. That. something,.
they hope,- will be the airing of Iran's
complaintsabout U.S. meddling and
support for the shah in the lofty fors
of the Security Council. _
The public U.S. position-dwelt. on th
first part of the strategy - and not on
the underlying goal. State Department
spokesman Hodding Carter 3d said:
"The U.S. government strongly believes)
the Security Council should not meet to
discuss any issue with respect to Iran
while our diplomatic- hostages are still
being. held."
Vance's goal in New -York was to
persuade at least seven of the 15 Coun-
cil members either to vote against a
debate on Iran or to abstain. - -
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previous official Iranian statements,
Bani-Sadr said: "On no account do we;
intend to humiliate or belittle the
American nation."
"We want justice"
"On the contrary, we want the Ameri-
can nation to know we respect. that
country's human values." Bani-Sadr
said. "We want justice. We just want the
American. nation to give back to us that
criminal (the shah)."
Bani-Sadr then repeated the Iranian
position that the American hostages will
not be freed until the shah is returned
to Iran.
"If the United States government ac-
cepts cepts our just demand and returns thell
shah and his wealth, the Iranian govern-(('
ment will be in a position to_start-a news
phase and ask the students to follow the
government policy," ' Bani-Sadr said.
The Iranian- Mission to the United;
Nations released a statement say ing?that
the hostages were being "treated. hu-
manely ... have no doubts about their
well-being." 1-. I
In related developments:
? Maneh Said Otaiba, chairman of
the Organization of Petroleum Export.
ing Countries, said that OPEC would be
ready to help extricate the hostages.;
Some OPEC nations were reported nerv-
ous that the U.S. freezing of Iran's
assets could set a precedent for similar
action against their own deposits, which
traditionally have been invested in U.S.
Treasury notes.. Treasury.Secretary Mill-
er said that Saudi Arabia, a major U.S.
depositor, had been briefed on the U.S.
decision and was sympathetic.
? The Pentagon ordered two ships,
from the U.S. naval squadron in the,
Middle East to join an exercise involv-I
ing the U.S. carrier Midway and a Brit-1
ish squadron- in the Arabian Sea-south!
.of Iran. Pentagon officials: said that they
ships were no threat to Iran and carried
no Marine landing force that could be
used to free the hostages..
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ARTICLE 1lPP`.~)D
LOS ANGELES TIMES
ON PAGT_L7-~ 14 November 1979
What's Shah
orth? Ey'en'
tie CIACan't Figure IfCut.
NEW. YORK-The Central Intel-
ligence Agency recently tried to de-
termine, just how. much -wealth the
Shah of Iran had retained- when he.
fled?.the nation. he ruled for almost
4 ? ~.f ..~
s Jett ruled
fourdecades.:..
71But.*after:?waridwide-analysis.' the
agency was leftwith:a mystery: Shah
Mohammed Reza`Pahlavfs financial-
advisershad:beemso skillful in cam-
outlaying' his--vastassets over the?=
.years that the true scope of his hold-'
ings escaped efforts to define
The. best the CIA's scholars could:
.*do, in''the study' completed months
before the shah. entered the- United..
States for gall-bladder, surgery and:
cancer - treatment.: was . to conclude
'that'. the:- former Iranian-- ruler was
worth perhaps from. a quarter- to
three-quarters of a billion dollars. or,
perhaps, from $100 million. to $800.
million,
? The vagueness of the. figures.was.
- testimony not only to the financial
secrecy of the shah's regime. but to.
years ?of -blurring the- shah's state;,
-foundation and personalfunds.:
The CIA's scholars. said they be
lieved most of the shah's money was`
in Switzerland and Weste=a Europe
and that perhaps 10% of his assets-
.were in the United States.:. ?. ,, .:
Some bankers, however, say ? the
shah's personal..' portfolio .'Alone.. is
worth well over 31 billion, and once
recent' estimate set the ftg'..lre at Per-
haps, $17 billion.. Some investment:
bankers with foreign contacts- say.
that perhaps between 32 billion and'
$4 billion was transferred from. Iran.
to the United States in the two years,.
before the shah's regime toppled.', "He- was the country of Iran.'' a
knowledgable banker with ties to the
Mideast said Tuesday. Just one.meaI
sure of how much power the shah had: ~
BY JOHN J. GOLDMAN and ROBERT E. DALLOS- `- .- 1
- . , .%, .. TI.,.. slow lrrB.w - f
_ -
was that in, 1976,'tle .Iranian budget
contained a $1 bifion discretionary
fund solely for the hah's use. !
The issue of the;hah's wealth was
.underscored Tues&y when the re-
gime of the Ruholih Ayatollah Kho-
mainl demanded tint as one condition
for release of the lmerican hostages
in Tehran. the United States return
the shah's weatl. Some of ?- this
wealth, in privatetansactions as ear-s
ly as this summer had already begun.
to flow back to it Iranian revolu--
tionary regime. zi i?
However, like t5: financial ana
lysts, Iran's new government faces.'
massive difficultiiin trying to deter-
mine what the shhhas, managed to
accumulate.
The cornerstod. of the shah's fi=
? nancial empire-which 'scholars says-.
during its height,rvaled the holdinge
of the Sauds of Sandi Arabia and the
al-Sabah ruling funny: in Kuwait-
was the Pahlavi rtundation.which he.:
.formed in 1958. $on after.the fount
lotion was set up the shah said he
was transferring 90% of his holdings'
to the new institution, a combination
family organization . and charitable.
trust. The shah's control of the foun
dation was absolute.
The foundation's known assets in.
December 1977 included everything
from 10% of General Motors. of Iran
and B.F. Goodrich-Iran to a 25% in-
terest in the Krupp Steel Works in
. West Germany. In the Tehran area
alone the foundation owned four ho-.
tels, including the Hilton. Other hold=
ings ranged from. insurance and
banking to agriculture and book pub-
lishing. One of the most important of
the ' foundation's' assets was 100%
ownership of the Bank Omran, the
fifth largest commercial bank in Iran.
The bank. founded in 1952 to develop
agriculture in Iran, evolved over. the
'years into the royal family's personal
bank, ;which made numerous invest-
ments worldwide-including some l important ones in the United States... ,
r One financial analysis concluded in
1978 that the foundation's assets were
at least :28 billion to $3 billion.
`-The most prominent of the founda-
lion's holdings in the United States is i
a . 36-story office. building oa i Fifth.
`Avenue near Rockefeller Center: The
site was purchased. by the :Pahlavi,,
Foundation. for 38.6. in0on. The
structure-now shrouded iris con=
troversy-has only ' been.' recently'
completed.
AA spokesman `for the :ew York.
State Attorney General's office said
Tuesday that the,Pahlavi Founds-
tion's board of directors had already
changed to represent the new Iranian
revolutionary regime. He acid it was
Also eoetrlbntlai to thus report was
Times researcher Vkloria Herat-
tpann.
expected that revenues from the
building would continue to be. chan-
neled into the foundation.......... ! ?:
One of the largest investments the'
shah's government had in the United `
States was a half billion-dollar com-?
mercial and residential complex, in.'
New Orleans. The Bank of Omran had
invested $250 million in the project in
1976, making it that year's..largest
foreign investment in; the United
States. Last, July, Joseph C. Canizaro,
the principal American partner in the
investment, bought out : the Iranian
interests for $0 millim although the
new Iranian regtmef was Twilling. to.
:continue the joint venture..:;:
The Bank of Omran also awned 5%:
of the First National Bank of Wiscon;'
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sin in Milwaukee. The status of that=:
investment was unclear.
A key question for financial ana-?
.lysts is how much of the foundation's:
assets the shah was able personally. to
'bold onto in the days before.he'was
toppled from, power by the revolu-
tionary government. There, are re-
ports the, shah has huge sums. hi
Swiss. bank accounts. A spokesman
for. the exiled ruler said Tuesday
there would be no comment 'on the :
extent of the shah's current wealth.
?. The, stat*w of the shah's other 83,
sets in the United States, those not
linked to the foundation, was unclear '
These inched homes in New York
City and on nearby Long Island and
3.000 acres of land in upstate New
York. Yi~e; ?~ .~
.This ' land was - purchased some
years ago by the American section
chief of Savak the shah's seidet po
l!ce ' The. land included a huge bam
which some reports said was destined
to become the U.S. headquarters for
Savak. However, it remained a dairj,.~
operation after the reports were made
public.
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LrNTICLE AFFZZFEDD NEW YORK TINS
ON PAGE^& 15 NOVE3 1979
ESSAY Kurds - once 'doublecrossed by the
Shah and the U.S. - should be sup-
plied with weapons, including surface.
to-air missiles, to help achieve their
To autonomy.
In the southwest, where the main oil-
-- fields are located, the area is not con-
'~ trolled by Arab oil workers but by two
R estab111 Iranian tribes - the Qasbgai and the
Bakhtiari - which are not beholden to
the anarchists in Teheran. An uprising
there would be crucial, especially It
Iran the Iranian armed forces are reluctant
to crush it.
Mobs are by nature. fickle; militant
? ? Bj-illl8rii $afite Islam turned out to be an under-
::. estimated force in Iran, but it is not
the only force. Millions of Iranians are
?' WASHINGTON, Nov.1!-Syhen one afflicted with an' oppression worse
~0tion deliberately infringes on the than any they have known, and effigy
sovereigrtty of another, and- seizes burning riots for television feed no
.Qrisoners in the bargain, that is by bellies. Some political or military
idtflnition an act of wars leader is likely to move into that vacu-
?. Since we
hope to save our citizens' um, and' it is not immoral for us to
laves, our response to Iran's invasion make sure that the successor to the 80-
61our sovereign embassy territoryhas year-old strongman is not beholden to
Been muted: pleas to third parties, the Moscow.
-raling out of force, a cosmetic switch. Elsewhere In the Persian Gulf, the
big of oil trade, a tit-for-tat banking United States should make its military
rinaneuver, a finger-wagging at Ira- presence fete. The Sultan of Oman isiilan students here. worried about Communist penetration
But restraint need not be paralysis. .,of nearby South - Yemen, and has of
?% a have a nonviolent weapon that can fered to let us make a staging base
Lve an effect in Iran: food. That na- ? of the island of Masira. We should take
'film imports 30 percent of its food, and up that . otter quickly, and top that
relies on the United States' for rice, with the leasing of the airbases that
jlrch of its wheat, corn, and poultry are being vacated by the Israelis?in the
ied-grain (in Persia, chicken feed is Sinai.
'fibt chicken feed). - The Ayatollah's?. slap in our face
We should now impose a food em- . '. ought to wake us up to the fact that we
bargo on Iran, arranging with alterna- are not at present capable of the rapid
tive grain suppliers like Australia and deployment of major military forces.
Canada not to take up the slack. The - A conventional threat in the Mideast
-Soviets could not take up the slack be-. would catch us flat-footed: it would
cause we make up their grain short- take us more than a month to deliver
Yells. This embargo will not cause 'two Marine . divisions arid support
starvation in Iran but will push up equipment. (When Mn; Carter an-
Drices, contribute to the general un- nounced his training exercise at Guan-
i?st. and make the point around the tanamo to amuse the Cubans, our few
world that a superpower is not neces: . landing craft had to be pulled out of
Sarily muscle-bound.. :. ., -= - = heavy maintenance.) e}gust as Important as keeping cool is- Belatedly, Carter
}Manning ahead: What do we do after - weighing bs secret s are.
the Pentagon secret Persian
the Impasse is resolved? Assume that Gulf contingency planning study that-
the Shah ultimately returns to Mexico shows how power- could be projected
7*hich has had Me- foresight to close into the area, (Our State Department
1[s embassy in Teheran? and the fussed at not being Included in this
American-bostages. are released; do planning; fortunately forhardliners, It
-ae- turn the other cheek, forgive and was not.) - -_. ; -
4brget? On the contrary - we should - Short-range, we are forced to strip
that this, kidnapping with great sera- .. our forces around the globe to create a
onsnesa and- turn this provocation to three-carrier task force in the Indian`
% rr aa~ ills act of aggression -, - - _ - . - Ocean. Long.;ange, we. must make up
gof. for Mr. Carter's scuttling of the Navy
this an opportunity for us to end the by building Fast Deployment Logistic
collapse of Western influence in the ships; also, to bolster our meager-fleet
'Persian Golf. and to blunt the Soviet of heavy-lift aircraft, we- must build
?`rAove - through Afghanistan and the the "CX" - a new version of the C-SA
Horn of Africa- which threatens the air transports whose cost overruns in
main sources of Western oil. :. -- - : -the 1960's still give Defense Secretary d''We should take the position that no - Harold Brownnightmares. : ' .
legitimate government now exists in With our embassy- staff held- hoe-
itan, and that we would find intoler tage, it makes.- sense, to - bite our
able the replacement of mob rule by a tongues fora while_The job of creative
Communist regime-, .:I-- diplomacy -is neitheri-to. admire- our.
-,:'Accordingly, our C.I.A. - already own restraint nor? to- get ready-to
blamed or tent conspiracies- thump our chests;. instead, we should
mould start conspiring now to aid be planning to react to this act of war
c in ran that are re. with.a strategy to stop the Soviet reach.-'
UwAyatoua& in the north, the- - for the oil lifelineot the West; r, : .
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ARTICLE APPEA
WASHINGTON STAR (GREED LINE)
ON PAGE C -?3 14 NOVE4 1979
:e.. events i_Iran : dominate
_ . ~,. cur ?a .r u~._.~: ~-. ~ ~r-. ?a:~ J
on scen
sistant and Mrs. Frank Moore, were already "Murphy, author of the popular "The Winc
~.sorStory."_ Former Ambassador and.Mr'
sashaying to relieve.the week's tension. No _,
-wonder'this is thedanctngest town around...
Thangs.got even. more serious-at the Ken
Giddene supper Saturday: night that was .
Black from Honolulu. President John Silbe
of Bostoii-University, and Gen: Richard Stil
Even witlrTedKennedy anitouncingand
all those stories about Chappaquiddick; and
even. with Ronald Reagan announcing:Soo~
the sole story consuming. Washington. arr
every social event. is what-to do abouvthe
hostages?in Iran:,r: Jia
At a dinner party the othernt. discus-
sionstraged?. in varying degregg-of-"polite
vehemence. at every. table. r77 and the.opin,
ions at one were fascinating
Seated together were Houseoriegn Af
fairs Chairman Clement Zablocki who coin-
posed.. the'congressionai' Letter .to?~ the
Ayatollah Khomeini; Deputy D re ollhe
CIA Frank Carlucci w o war r-are ul Klimit~
ing is comments lest something be read
into them; Middle, t- expert and former
Undersecretary of State: Joe Sisco. who. as
president of. American University had-some-
thing to say about Iranian-students; a beau-'
tious young Iranian women= with!Zbigniew-?.
Brzezinski staffer, bearded- Bob:Huriter
-Shirley Metzenbaum who was t-he,..bestlis-
tener; and Carl Rowan,`who did the' most:
'talking:-
Most rejected the-idea 'that we-should
have conducted' a tit-for-tatoperation. here
-the-minute our embassy : over. there was in
vadq i. The Persian girls who has family. in
Iran,, said. Khomr ini;isan absolute madman
who might then'haveordered' the-Ameri
cans killed
Sisco saidtheii-are definite -signs on. his
campus that some Iranian students are shift=
ing from,support of the_Ayatollah%because..
his dictatorship betrays-the goals-
or-the-.revolution. Zablocki produced'Ahe letter:
dor Elbridge Durbrow? Jim An?ieton nt L.L&
-: a Genera and, MM -Im. Eaker and Charles
Energy, and Mrs:DuncanrPresidentiaLAs-;w.6`` __-
last month: 'Peoplecame from all over the.
';country,"shesaid.("Iwasamazed "~_:3
and ship all their students home , months,
With thatoff their chest everyone took to She was also oleased'o' er the number of ;
privately, au,3CCWWCU w w ~ "6?.~----- `the first time in over lu years, can waxy up--
about one thing-Once alI Americans are out.
the morning and see. They arethe kind'
h
shown an ouncsof. umantty , .: just been, otitfitted!by a-pairsoft:contact.
~. ; ..
pie who disagreed with-.him.. A' lenses,bv famed'Dr' John McTigue and' for
truth.in.the.woids,off. the'.Koran.7-Wrote: ?? ?- -r- " w.
others.
Zabiocki: soothingly to a man who- hasn'.L `- ; Clare Stevens.and was walking numerous that evening: She" had
to his own peo- =. -
g universally ac-- .--..~-
% righteousness and piety is
__,:z: :._ ._..e. we tifi,rt This great ..,Bruce MacLaury were?there along with-
? shah, but urged. release of the noswg~es? uu -- - posture to the whole
rsible for our- inferior
humanit~rian~rounds: ,-:-:. .4 'zpersiaaGulf area
?-r rw (-r.Aft?and to do. his will" rough - ;sue :.. - ---_.,_.......t,.... D,._.IASAI,.sn I Mrc--..~
well She was particularly touched that Ger
and Mrs: l auris Norstad came:- ;?
billed as"An Evening with Clare Luce" and:
put-on by Ernest?Lefever, director of the
Ethics and Public Policy Center:'He likes-to
gather _once a month; around an. acknowl--
:from public. officials to press. pose?a. ques-
-tion to the brain - and lethe evening-un
:-The question was Is'the- United-States.
.
__ ..,-.,,,
ble de-
a
we on
cline
,,
deuce in the American people providing
they can get the rightleadership.. .
For- two hours La Luce held forth. with
her philosophical-view of'the world, ac-
apti vat,
-_-l
fer
n
re
ces c
e
`ing -reminiscinces;-and; takeoffs of. famous
personalities- she mimicked Churchill
petectly -and-,so entertained the group.-
They sat spellbound.
She-wound up unra"vellfng- an hilarious'
ing Sen. Nancy Kasselbaum, who was-there;'
was the president, and` Arthur Burns, also
was her advisor: -
present
.
When the question what can we do about
Iran? came up. Burns said'both the Iranian .
government and:th'e Iranian -citizens have.
enormous assets-in this country which' we
could freeze;, also, he suggested, by halting
the shipment of spare-parts; their advanced
technology.: would eveatualry grind to a
dent of the National,Strategy Information.
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ARTICLE AP'PEORE~
ON PAGE,,,!
ey'Mem
K
WASHINGTON, Nov. 13 - The Ira-
nian crisis has spawned a spade' work-
ing group +n the State Department's
seventh-floor operations center that L
staffed around the clock. Its center-
piece is a large conference table, with
maps. a blackboar* source materials
and files of the latest relevant informa--
Foreign Service but by way of Central. ' fairs ... At 47, tinds himself in day-
to-Intelligence Agency and National Se- day charge of the task force handling
the latest crisis... Called "well orgaa-
curity Council staff ... Born in pills-ized, deiphia Dec.. 27, .11?0 .... Graduated 1-headed. and thoughtiW by
from Priaceto University in 1952 and colleagues ... Has risen rather rapidly
eted his doctorate in American through ranks ... Born in New York on
Studies at Yale in 1966... Duringthm. April 10, 1932. and graduated In 1967,
after two years is Army, with a mes-
F
y~r~s~ a"__fl_ceri Airdiil~TNu- the . as an ana iris degree from Johns Hopkins School
for Advanced International studies .. .
agency
258 N - joined State Department that year
Fi s Was as consular
nsu~lar
otricer. sad Harold E,. Sanders, -. 13 years ... woriseo m prvo~ama u. ~.. - ,- Honduras. Assistant Secretary of State for Near_;:$-Near East. South Asia and North Afri- tT to Tegucigalpa.
Eastern and South Asian Affairs..: ,L f es, until Secretary of States Henry A. as political officer... In January 1967..
After these two, members of the task Kissinger brought him to state Depart- .detail detailed to Hindi-Urdu language thin-
force say that there is no fixed table of :a, -anent ht 1974 as Deputy Assistant Secre- lag. and a year and a ball later found
of State for Near Eastern and -himself serving as political officer in
organization. with a great many ofth tarp ,. , . s ins rs,.
vials filling in whenever a demand for-'-.-',- South Asian Affairs. -Served there three years' ... In 1973;
their special kuuowledge or ability ' ` ' "'after a year at National. WarCoUege, %
arises. " "" { >~" ~rr.~i k'r tY+f.tir 3x b: Hen/ t ..- became director of Pakistan. Afgbaai'
All agree. however, that two Of'tbe ~," ~+ ' ' 'star. Baagladesb Affairs ::: Lesrpoet
key members of the task. force are ; Outspoken- Georgian who runs tbs ^?befors his current one was as Deputy
Henry Precht, who has beaded the Ira-... Iran desk Perhaps the most knowl. .' Chief of his current e was
_.: Wife.
nian Affairs office throughout the crisis :.- edgeable official State Department has Mission in
'-- Elinor, is also a Foreign. Service: off!-.
In American relatlans with that coos} on tenant developments on Iran .: ~:.. cm. They have thneedi item r,',
fter fan'
'
111978
, a
Named to poet is Apr
_i . _.- _ - i?
. try, and Peter D. Constable, the chart..::.
in Taheraa noe- being
bass
i
'
y
n em
~= years
te
Deputy Assistant Secretary of State
Mr. Saunders.. - . ;;'.~?L held by Iranian students .. Since then,
-+ v r bas been deeply involved in one crisis
"after"another..: *According to col-
David D. Newsom 3 lam his sense of humor and cool
A balding: sandy-haired; low keyed' *:temperament.? as much as anything
veteran of 32 years in the Foreign Sere= else. has gotten him and othersthrough
ice ... Was appointed Under Secretary :7i ..Is 47 years old Had just returned
of State for Political Affairs in 1978. from three week tr~ons when em-to Iran on a mis. .
after serving as United States Ambas- sion to strengthen .
sador in the Philippines, Indonesia, and bossy was taken over relations then sent
Libya... tom in Richmond. Calif., on - -"N with former Attorney General Ramsey
Jan. 6. 1918, graduated from the Uni-. Clark on his abortive attempt to win re
versity of California at Berkeley in 1938 _lease of hostages... Born June 15,1932
and in 1940 from Columbia University's..:: r z" Graduated from Emory University
Graduate School of Journalism .... A - In 1963 and- spent next After two Yao r y
newspaper reporter from .1108 to 1941 ' ;;-,Navy _: - State and publisher of The Walnut Creek . - Joined Department
Courier Journal in California.- 194647, 1961.:. Assigned to Rome 1982 and
after serving four years in the Navy ...: "'.transfer to- Alexandria. Egypt, in .
Joined Foreign Servi in-.1947 and- ??1964.where be served as a consular of -
served in Pakistan. Norway Iraq and "^ _B `.'.t Spent late 1960's first at Na-
England ... Was officer in charge of ` ticeal Aeronautics and Space Adminis-
om 1966 to ~~ tt'ation and than at Fletcher School of
f
i
ff
l
r
a
rs
a a
Atabiau Peninsu
1968 and deputy director and than elk-- Law and Diplomacy . . In August 1970..
rector of the Office of Northern African. ? was named Deputy Chieiot_Mission at .I
Affairs... Had difficult time as Assist- Port- Louis,: Mauritius . Two years
ant Secretary of State for African . - ,:later he::rwas assigned to' Teheran.,
fairs from 1960 to 1974, when he often -where unto 1976 he served as political
differed, though. never publicly;. with t - consular , Married and has tires
the NlxonAdmhdstration's polies 3
Iran- is going: to be r.Iong. slow;'uphill
task--It-will probably-be yearsbefo
this country is ready to playa political.:
role in Iran..:
But In the''meaathae- there'll one:'
thing ordinary ; Americans .'can. do:.
There' is nothing in the:-Constitution `:?
that obliges this country-to be run by a
president whose instinctive reactionto
a challenge-is, a declaration of national.:
impotence- -r 'N t1~~-y '_ + : .
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ON PAGE
__L _ __ 19 November 1979
Iackmaii!ng the X9.5.
The lives of some 60 Americans hung in the balance in Tehran
The Carter Administration found it-
self woefully short of ways to deal with the
crisis. It quickly ruled out a Mayaguez- or
Entebbe-style attack as impractical under
the circumstances. Nor did the Adminis-
tration have the option of undertaking any
kind of covert action inside Iran that
might have tempered the situation. When
the Shah fell last January, most of the U.S.
intelligence apparatus in Iran fell along
with him. Confessed one Washington of-
ficial: "We have reviewed our assets and
our options, and they are precious few."
EXCERPT
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f2 T I . LE A.PPEARID
ON PAGE
?~~
By. Jonathan C:IRandaf - , g-Ar_
wnahinstoa @o{6,FOrtlSa a.rvtc$.... '?. G j
TEHRAN, Nov. .12-A-- defiant Irani
Ian government. today raised:-the??ne-.
gotiating price for the release of .hos-
tages held.at._the. U.S. Embassy hereq
an& declared an oil embargo. against:.
the United States..- _7-1-_r-, Abol Hassan. BaniSadr, ; appointed:
last week by Ayatollah Ruhollah Kho--?
meini to run, the -Iranian Foreign fin--,
istry, told a-meeting of the more than'
70 accredited chiefs'of-diplomatic mid-
sions here that:IraiL has. three _de-r
wands:
e American recognition.. that. Shah-
liohammad Reza Pahlavi is a criminal
and must be. extradited to stand trial
here.
e The return to Iran of the shah's..
fortune, described as the assets of the
Iranian people..
? An end to "American meddling'.:,.
in Iranian domestic affairs.. ?. -
Later,. Iranian radio and. television:..
interrupted.. its rightly -Programs_ta~_
announce an embargo on. OIL sales, to
the United.States at about..tha same
time President.Carter-was telling the
.United_
"American people -that-..the
States would no. longer buy, `Iranian.,
oil.
r
Although. "the Iranian announce=
meat seemed to. follow Carter's:state;":
went, Oil Minister Ali Akbar Moinlar
insisted that the. ruling Revolutionary,
Council had already made" the ? decf--.
sion in a six-hour, theeting this after-
noon and evening.. . - - '-
Independent} observers said; news
that Carterwas"considering-a'boycott-e
reached.Iran.by: radio-before-his deci
sion was..announcced # ?: ,,
THE WASHINGTON POST
13 November 1979
"The: ;Revolutionary. Council . had
-considered stopping oil supplies to the
United States when the shah was ad-
mitted"' to- a New , York hospital, for
medical treatment; :Moinfar said. "But
they-didn't want to do anything harsh
to the -American people;'so they de-
layed--it-(the decision]:;.??'.'_. ,.
"Tonight, in fact, the: Revolutionary
Council made the decision to stop oil
exports to the United States," he said,
insisting that Iran. had acted first. The
minister said. the decision would be
"to the financial benefit -of - Iran be-
'cause we have plenty of customers."
Analysts here tended to agree that
Iran could- benefit.. from higher spot
market prices- and. noted that Japan
recently : had been pressing ..for as
much as a. 40 percent. increase in its
normal oil import& from Iran. -
The. Iranian announcement -that it
,was:--cutting -oil deliveries -to the
United States. contained no, indication
of whether- Iran was considering.re-
,
ducing production.
Asked: to, transmit Bani-Sades de-
mands?to Washington, diplomats from:
countries -as' politically- : different as
radical Algeria and neutral -Switzer-.
land. ' raised.. objections- to- the. form .1
and. content of the .Iranian-- govern-..
..ment1s initiative
In.Tehran. itself. -about 1,000 unem .,
.ployed men, mostly high school gradu-
-ates, took over tbe? Labor liinistry to
back demands for jobs-.unemploy-
ment payments and health insurance.
Shouting "down with fascism, down.
with reaction and down with tyran-
ny;" the unemployed were received by
Labor Minister All Esbabodi after
routing the Revolutionary Guards.
who unsuccessfully fired over their
heads in an abortive effort to disperse
the demonstration. -
The demonstration, organized by
the Union of Iranian Communists,
was one in a series called to protest
widespread unemployment. Since the
February revolution, 2 million to 31
million of an estimated 9 million work
force have been jobless.
.'At the occupied US. Embassy,
meanwhile, a student leader said the
500 Moslem militants who invaded it
eight days ago were armed with just
10 pistols and were surprised to meet
no resistance from Marine guards,
Reuter news service reported.
'Observers searching for a glimmer
of. hope noted that the way was now
open not only for an American ges-
ture; but also for discreet diplomacy
likely to meet Iran's objection to any-
thing visibily connected with formal
mediation.
[In - Washington, - a' State Depart-
ment spokesman said the hostages
v4U be permitted to receive- letters
from - their families.]. ' ? ~;
However, the diplomatic consensus
was that there appeared little hope of
any rapid resolution- of the crisis. - -
. Swiss Ambassador Erik. Lang-re-
portedly argued that Iran's- charges of
espionage at the U.S. Embassy did not
justify taking hostages. . - '
-International practice in--such cases"
provided, for expelling diplomats; re-
ducing an embassy's size or even
breaking diplomatic relations, he said
amid applause from Western ambassa-
dors.
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BaniSadr replied this was not a
time to be absorbed in jurdicial de-
tails since the Iranian people have
suffered humiliations at the hands of
the United States.
-Algerian Charge d'Affaires Mustafa
Beihocine asked if the message were
Iran's final word and if the ruling
Revolutionary Council could not sof-
ten its language.
Bani-Sadr offered no such encour-
agement.
Signs of tension not directly related
to the US. Iranian crisis were also ev-
ident from Tehran to the rebellious
province of Kurdistan in the west of
the country-
Britain, for example. today followed
an: earlier U.S. and West German lead
in urging ins nationals "without a need
to-stay" to leave Iran.
Possibly prompt in the'. British deel
Sion were recen Iranian press reports
accusing Ambassador John Graham of
running a spy ring auviscul Y wor ing
with srae an T. espionage a en?
cies o ea ers o ran's revolu-
tion.
Another recent article alleged that
the Anglicans' Church Mission Sod
ety hospital and other services in Isfa-
han were spy centers.
The church's facilities were taken
over recently by Islamic militants,
and the Anglican bishop in Iran nar-
rowly escaped an assassination. at-
tempt.: - . , . ._ ? . .
In Kurdistan, further fighting was
reported, with Kurdish rebels said to
have launched an "all-out attack" last
night on the major city of Sanandaj
and the regional towns of Jovanrud,
Mowsud and Saqqez. -
The report, from the official Pars
News Agency, said the fighting contin-
ued today. it quoted a progovernment
Revolutionary Guard commander in
Kermanshah as saying, "A large num-
ber of people have been martyred"-
the Islamic term for killed-"or
wounded" in.the fresh fighting..In Sa-
nandaj, the news agency said, rebels
had used rocket-propelled grenades
against the Revolutionary Guards.
Tehran press. reports said a govern-
ment goodwill mission -has returned
from Kurdistan without having yet
persuaded Kurds loyal to Sheik Ezzed?
ine Hosseini to accept a compromise
apparently approved by Abdurahman
Qassemlu, the leader of the Kurdistan
Democratic Party. -
The Tehran authorities' apparent
willingness. to negotiate a.. separate
-peace with the party is a full measure
of their- military weakness. Only three
months agd- Ayatullah Khomeini. or-
dered talks broken`-off and the rebel-
lion crushed by force. But both the
Army and Revolutionary. Guards -in
Kurdistan are reported to be in a
shambles.
In front' of the US..' Embassy,
crowds kept up their anti-American chanting as the student captors of the
hostages announced a five-day fast to
back their demands:
The students said the hostages
Dozens of Islamic groups-ranging
from Tehran bus drivers to diplomats
abroad - joined the fast, which will
be in effect from sunup to sundown.
Meanwhile, a 36-year-old Iranian
who immolated himself last week in
front of the embassy to back Kho-
meini's demands for the shah's return,
was reported today to have died.
His last will and testament report-
edly left all his worldly goods to Kho-
Reuter quoted a student leader at
the embassy as saying of the Nov. 4
takeover.. "We had expected that
many of us would be killed. It was.
quite a' surprise."
The 24-year-old leader, who gave his
name only as Hassan. repeated the oc-
cupiers' insistence that no hostages
will be released until the shah is re-
turned for trial.
Hassan said a plot to occupy the em-
bassy was hatched about 2% weeks
ago and was planned. down to the last
detail
Only 10 students were aware- of the
plan,; until the morning of the take-
over. Then, they gathered some 500
..trusted Islamic students at four Teh-
ran universities, and the leaders told
them where they should go In _ the em-
bassy and what they should do, Has-
san said.
"First we made sure everyone knew
how to fire a pistol or an automatic
rifle, which we knew we would find
inside the embassy," he said. "But re-
ally we had a maximum of 10 pistols
between us."
He continued: "The whole group of
arpund 500 assembled a block east of
the-embassy, ironcally near Roosevelt
Avenue, at 10:30. They immediately
marched west along Taleghani Ave-
nue towards the embassy's front
gates.
"The girls marched in front and we
all sang and chatted. We let the girls
march on past the gates, then turned
and faced the embassy. A few hand-
picked men ran at the gates and clam-
bered over. The gates were not pad-
locked and they were able to open
them easily and let us all in.
"There were three or four Iranian
policemen, armed with pistols, inside
the gate but they were dumbfounded.
Anyway, we knew policemen were un-
der strict orders not to shoot anyone.
"But we were surprised to find no
Marines. We walked forward 'in
groups in all directions through the
compound. We met-no resistance. The
four- or five Marines. who live at the
.back of the compound locked them-
selves in their quarters. -
"We all went to our, arranged posi--
.tions, occupying. the-. chancery, the
visa section and the. bugalows first.
Most of the. Americans calmly put
their hands on their heads when' they- {
saw us," Hassan said.
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ON PAGE__ Z
13 NOVEMBER 19T9
~i::..9`.?IG.z~!'!itiw.C.1Y,:f-tiafii}.~'3;;Iry~R...'.~r~.tStl..4.? _.. $Orp; CrltfdbIM1IS.pA/w1el(17_.
Whtttthe E iftedStatesis a ia~crmarlcet ioi Iran,.Iraniaa oil comm to ody
abo 4 per cent of American coasumptioo. ~- - - ,
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ARTICLE AMARM
ON PA PAGT ~/
THE WASHINGTON STAR (GREEN LINE)
13 November 1979
By Phil Galley
w,.pin~msar stW wriar
President Carter has :halted oil im
ports from Irani in a a ,move. designe&
to demonstrate;Americaa determit
nation. without provoking Iranianl
militants holding more than-60 hos-
tages in the U.S. Embassy inTehran.'
- - "Nonneshould underestimate the
resolve of the American government
and the American people in this mat-
ter; : a_ grim-faced Carter said yester-
day, in, $ brief statement. broadcast
from1the'Wbite House..'-Iris neces-
saiy taeliminate any suggestion that
economic pressures can weaken our
Thei president emphasized. that it
"is ,vital to the United States afid'"to
every *other nation: that the lives of
-diplomatic personnel and other citi-
zens abroad-be-protected, and that
we refuse to permitthe use ofterror-
ism- and the seizure and the-holding
of hostages to impose political de-
mands.... , , ~v ...ti.~ . n .. :FI
As administration officials: view
the-president's action, it could pro-
vide impetus,,ta U;S. energy conser-
vation; ease American.-anger and
frustration over the crisis and dis-
courage other countries from trying
politiear" coacessifoas:f All of ? this
could,b4raccomplished, the officials
say. without forcing Americans back ;
Butthe.president'sdecision in--
volves.some- risks - including: the .
possibility that Iran's revolutionary-.
Khomeini;and his Moslem followers-?
could' be provoked = to?fnrther: antf=
US: move& .There;is alsa the,danger
of added. energy-related inflation in..
cc
nt
u
~.?at-_:..a,. .,.?
rJ Y3 =i ^i 1-'fiS c;y;rarr ?r
Administration- vofficials- regard-
neither asa.likely prospect.. how--.
A~ked`etiorit theohaace of Ira ~
-retaliation;:"a-senior! offfeial, toldre-
.
porters;"'Phere'is' uaahimity among
action ontheirpart-It_is merely'an-:-
act ofself discipline.o our
Another high-level official in-
volved in shaping economic policy
said that if Americans heed the
president's call for conservation, the
boycott of Iranian oil should have a
"favorable impact" on the U.S.
economy.
"To the extent that the American
people support the president and re-
strain their own demands and use of
petroleum products. I would see this
as not impairing our economic out--
look," the official said. "To the ex-
tent that we do not show some
restraint, we would have to be con-
cerned later about possible price-
actions." -
. Officials insisted that the presi-
dent's only concern in, taking the ac-
tion was to demonstrate that the
United States will not bow to eco-
nomic pressures or. political terror-
ism.---... - - ~.
They-conceded there is little hope.
Carter's action will cause the Ira-
nians to relent in their demand that
the United States hand over the de-
posed Shah?-. Mohammad - Reza
-Pahlavi,.who is-undergoing-cancer
treatment in a New York hospital, in
exchange for.the. American hos-
? tages
The idea of the oil embargo, they
said, had beeanone of the options
under consideration by the presi-
dent almost from the beginning of
the crisis,. nine days ago when Ira-
niaa.,,militants stormed the_U.S.
Embassy in Tehran and seized, the
; hostages..
i; ..Carter askedCabinet. members
last week to assess the political and
economic impact of such action.
When they made their reports, the
president decided the advantages
-clearly outweighed the disadvan- ,
pages::
,:,.Administration sources said. Car
-ter, who canceled plans tolpend the
weekend at-.Camp. David. and-re-
mained at the-White House, made
the decision. Sunday to carry out the
embargo and went over-the plan one
last time with his National Security
Council late that afternoon.
!*-He was advised that it was. about
the-- strongest. action he could take
without risking retaliation by the
'Iranians. His advisers also saw it as a
Sara opportunity to enlist the coun-
try's support-in the cause.of energyl
-;conservation. . {.. - 44, ,< -..:.
;y. U S. intelligence officials sug
este that the sooner ericans
sever their depeauence on Iranian
"o7 a er.
With. r an plunging deeper into
political chaos,.it is possible that a
new internal convulsion could
bring oil production there to a halt
a development that could have
serious repercussions for world oil
supplies. _:._~ ?..
': Yesterday,. about 15 minutes be--
fore. the president announced his
-decision, the State Department ad
vised= the- Iranian. foreign ministry
in.Tehraa.
Minutes after Carter spoke ...Ira--
Wan officials; in an apparent you-
can't-fire-me-I-quit response. an-
nounced Iran-had decided to cut off
oil exports to the United States, --
Officials in Iran said they had de-
cided to cut-off oil shipments to the
United States before Carter's an.
nouncement and planned to sell the
oil to other customers.
The administration also Informed
.membersof the Organization of Pe-
troleum Exporting Countries yester-
day afternoon. In doing so, it asked
OPEC membersto keep oil produc-
tion at current levels so the Iranian
embargo did not lead to a worldwide
reduction in supplies. _ ---
Meanwhile, U. S. officials said yes-
terday that efforts to secure the re,
lease of the hostages in Tehran have
made no progress. but they said the
administrationwill continue to pur-
sue a settlement through diplomatic
channels:
"We - .:
still have a number of diplo-
matic efforts going in various chan-
nela," said one senior official. "I do
not want to go into what those
specific)channels are. I do not think
it would' help to disclose them. In-
deed, I think it would be harmful if I
did
The official said the only"eneour
aging" news from Tehran is word
-that "the hostages are having more
access to people from the outside
who can come in as observers." ti
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ARTICLE APPrai'
inc. nn-j"&' J; ,. .-
ON 12 November 1979
`Deportation Is a Poor Trick'
By Loretta Tofani
Washington post Stan writer
Iranian student activists in Washington said yesterday
that they plan to continue demonstrating here and will
not be deterred by President- Carter's- order that Iranian
students illegally in, this country-be deported.
The activists, who attend universities here, continued
-their demand. that Shah-'Mohammad, iteza Pahlavi, now
undergoing ~e ea en. New'.York, be returned
y _ .
to Iran. ca 7s ~ C,
Aware of the growing anti-Ionian feeling-in-this coun-
try, they nonetheless voiced' the Iranian government's
position - thattrthecmore than 60 Americans ? being - held
hostage in Tehran should- not be released until the shah
is returned to. Iran.
"Deportation _?isc a,---very poor trick,"-- said an, Iranian
student at George Washington University who called
himself Teimoor...,It will not-work.. If-:only one student
is left here, that student will demonstrate.".._:: r
Another student, interviewed at the- Moslem Students
Association at 16th and Montague streets NW, said: "If
they wanted to deport-me, `even. though I'm here legally,
I would go back gladly. I. don'ts feel like I have to,waste
my people's money by being in the United States."
Carter ordered`the Justice Department .on Friday to-
deport Iranian students-who are illegally in this-country
in the hope of reducing the possibility. of violent clashes
between Americans and Iranian students. Government
officials here believe-that any such incident might pro-
voke violence against the American hostages in Iran.;.. .
..Beginning -today, immigration offi-
cials are expected. to vsit, campuses in
the Washington area- to check the
status-of Iranian students. In areas of
the country-with relatively'few Irani-
an students, the Iranians probably will
'be asked. to meet with officials at the
nearest-immigration- office,- according
-to a Justice. Department offciar
Students suspected.oi_ being is-'the-
country illegally cannot-.be -deportsummarilg . It 'they are:;unwilling:
:leave; -a`?Justice''Department-otfieisi
said, they are. entitled to, hearings, an
Those' students Who do of suppo t
the government .eotrolled..b Khomei=t"
and fear that theg will,be,in danger-ifs
.they return home wilt be. allowed ta'
ask for..'political~ asylum; : the : offici
said.:- b wr: i ,. =w..
In Interviews with a number of Iran
fan students:yesterda5C.. tr: cafes and,
-dormitories and at the:George Wash
ington University. student`center;'a
reporter.-was met with-angry rhetoric :.
about-the shah and past U.&suppo
,-of him. The students interviewed. said'.
they believed the- Americans held
hostage In Tehran should -not'be re--
leased until the shah is extradited.
Most of the students- interviewed
said they did not know one another,
yet all expressed similar feelings with
the same- - intensity-, and similar
rhetoric.
"The shah took fingernails out of our
people's fingers and. eyes -out of our,
people's sockets," said one student as.
he sat at a table sipping coffee -with
a friend in George Washington Uni-
versity's, Marvin- Center.
"We want him' dead, the student
paid. "The. Americans must stay- host-
age until he is .sent back to Iran," -
The students, all of whom: said.they
demonstrated-here frequently against
the shali' and. Steel Institute- annual
meeting. "There is at least a good
--possibility- of -.a world steel
shortage beginning in 1985 and
growing thereafter."
The ciA bases its forecasts on a
"projected buildup of steel capacity
of 51- million tons, or 80 percent,
in non-Communist Third World-1
nations through 1985.
. More home-grown steeL
New capacity in those nations
would be 115 million tons,
according to the cMA's economic
sleuths. noes should be producing
75 percent of their total steel
requirements by 1985, up from 61
percent last year.
As a result, their need for steel
from large exporting nations, such
as Japan, Great Britain, and
France, will decrease. "Less
developed countries' net steel
imports will grow much more
slowly in the decade ending in
1985 than during the period
1966-75," says the cu.
The crA points out that steel
executives in Japan and Europe
believe chances of steel shortages
in the 1980s are remote.
"Most steel executives, partic-
ularly in Japan and Europe feel
that excess capacity will persist
well into the 1980s.. Only a-.
minority believe that reviving.
demand will place capacity under
heavy pressure by 1985 with steel
shortages and soaring prices the
result." . ^
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,RT ICLE APPrARED
-N P&GE -
*)uncan
:Paints Dar:
`
Oil Picture
,
Precariousness:
THE NEW YORK TIMES
10 November 1979
Those who have attended the Duncan
briefings said he has stated that oil su
plies in the non-Communist world next
year will drop by 300,000 barrels a day I
because of the depletion of old oilfields.
This is not a large amount consider-.
Ing that production, according to esti-
mates prepared by the Central Intelli..
gence Agency, is now about 52.2 million
barrels a day is the non-Communist
temT~ ~ tft thar. r A"?
In
But Mr. Duncan acs warned that it
could be enough to bring on disruptions
because the demand-supply balance is
so delicate' a "' '. .:
Soviet oil OOutput Down , ,
'Complicating the- situation is a drop
ins: Soviet, domestic oil production,
Which means-that Moscow eventually,
will have to buy oil from members of
the Organization of Petroleum Export-
ing Countries,: probably those in the
Middle East. Soviet purchases would
only serve to put more pressure on both
the price and availability of crude oil.
Those who have heard Mr. Duncan's
assessment also say he has warned of
the possibility of sharp reductions in
'exports of oil by Kuwait and Nigeria.
Nigeria is a major supplier of crude I
oil to the American market; exporting
about one million barrels a day until re-
cently when exports slackened some-
what...,
While?Kuwait sells little oil to. the
United States, it has been exporting
about 2.4 million barrels a day in recent
months, mostly - to other countries.
Should a significant fraction of that be
withdrawn from the world marker,
major supply problemswould ensue.
Task Force Formed In October
With ail-these factors in mind, the
new interagency task force on energy
supplies was formed last month to up-
date= contingency plans ? drafted. last
spring as, a result of uncertainties
aboutlranianexports -- -- -
John C. Sawhill, the Under Secretary
of the Department of Energy who also
is the director of the task force, said the
contingency plans were being revised...
"We are developing contingency plans, -
based on those drafted last spring, in
an effort to deal with a wide var iety of
energy- shortages that might, arise,,..
Mr. Sawhill said today in an intervirw..
He added that the project had beeii
receiving the "top priority" in the
? l nergy Department and that."we're
looking toward the development of new-
plans asvariables shift." - i --:
As to the specifics of these plans, Mr..
Sawhill said. "I'm not going to ccm
went on the contingency plans or they
options.'';. - , -..
Chokes Termed'Draconian' . ' ..:
" -But some of the choices - were de-
scribed as "draconian'. by Senator
Dale L. Bumpers, Democrat of Arkan.
sas, after be left a briefing given by Mr.
Duncan on Wednesday.:,:.
0. William Fischer, an acting Assist.
ant Secretary of Energy, is the staff di-
rector of the task force. It also has rep.
resentatives from the White House
staff, the departments of Defense,
State, Transportation. Labor, Com-
merce, Agriculture, and. Health and
Welfare, as well as the Environmental
Protection Agency; the Nuclear Regu.
latory: Commission and the Federal
Emergency Management Agency.
One carticivant in a Duncan h.4.A
safd-uiro~nnation was relaved from the
C.I.A. anct the maior oi companies. as
rgy Department. -
wen as
-
?mey stioweci us a w e bunch Of
charti, w e were labeled con t en-
r , said one a cr ant "showing
a orts . would be down
s r y next year. but that non-OPEC
e~x i0 rs wo export s r
a tT7Ty more
~
oil next year JDAn
Dramatic Rise for British
. Among the non-OPEC members ex-
pected to export more oil next year are
Mexico, Britain and Norway. Britain,
for example, is ' currently. producing
about 1.7 million barrels a day from its
North Sea wells, a dramatic increase
over previous averages..
"Mr. Duncan stressed that the vul-
nerability of OPEC production was of
great concern to the Administration,"
one source said.
The degree of seriousness was evi-
dent in the testimony Mr.. Kahn gave
today to the Subcommittee on Ene
and Power of the House Interstate and
Foreign Commerce- Committee. 1i
said the Iranian situation was not onl
endangering supplies but also driving
up spot prices for oil and thus contri
uting to inflation. = .. ., ' - -
For this reason, he added, A
tration leaders are privately reconsi
ering a wide range of options to reduce
energy consumption in such a way that
the 700,000 barrels a day of oil normally
imported from Iran would not be need-
Of Suppler Cite4
tit tsrienn s - := ;Y.~
By RICHARD D. LYONS
WASHINGTON, Nov. 9 Secretary
of Energy. Charles W. Duncan Jr. has
told Congressional leaders in private
? deal with severe-cuts in petroleum
-
Z1 v
iucts
.
1
...
some Congressional sources said the
With an eye to possible supply dis-
ruptions, Administration. leaders. am
measures, such as a much higher Fed.
eral gasoline tax, that had been previ.
ously discarded: as poltically impoesi-,
.as 50 cents a gallon. gasoline rationing
and- even mardatory.wage and price.;
controls.
But he stressed that these measures
least for the moment, since energy sup-
pi lea at present were ample to meetde-
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THE WASHINGTON POST MAGAZINE
ARTICLE APPEAP. 11 November 1979
~.Y`? adv..
414A
DTI PA(3$~_- ~. _...,.~,. ~+& `I
VWliee~ can someone HM& pre"OU 7 docu-
ments-that are so often quoted in the press? Details
about the Glomar Explorer project, the wiretappix g i
of civil rights leaders and other activities appear with
somefrequency in newspaper articles but no library
sees to have the background documentation.
Many of thm. Papers weretobtained bar repoa or rash`
era Ming requests under the provisions of the.Feedom of Infor
mation or Privacy. acts. Anyone has a nghtto ask forinformatioa
_
under the, acts.. One-' cintot ?source for such- informaton is the
W t -based. Center for National Security Studies- Fora'.
nominat.:cbarge,ths-organization makes available am array of
;~ once-seaetgovernment d0Cun . ,r' < _._ __ '
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AZiC.E AP EARED LOS ANGELES SUNDAY TIMES
ON-PAGE -/ 11 November 1979
s Halting Love
C-1r 4.. w? J''`t r ,-.?_i^.+?' ~5-~" t.` sL"r.5 .+
WASIDNGTOPI=In :tat =19fl. he
Central Intelligence Agency lawn
to undertake-three:secret in
operations, and..as,. ed. by;. la
duly describud::them.taeight congre&,-
sional.committees,- No.objections were
voiced, and theprojectsbegan..:
OneKwas=avpropagaadasc
opia& Thesecond involvedsupplying
radio. and associated equipment< to
Egyptian President 'Anwar Sadat so
he..eould:', communicate- -.with; aides
without being"overhar,by Wiwi
mihh ry. cOicers*=gnd `so .he "could
eavesdrop on his own.:military:;
third -called'for: supplying-the seam
equipment to ,Suda .Presidentt:
NumeirL. , , ,,: -,,.,r~
Bur.'. all' ~lhrec?. operations w
"blown '.several` m nths. Inter;: era;
cording .. to Administration' so
when; they were,. mentioned;: ia,
New York Tlmes:_, ' {~,
. Tlie projects Were. ated . in the
newspaper as-esatpl of a?new per.,
missiveness- by* tonal : over
sight'committeea.toward covert CIA
actions only a few years. after the eu
posure of CILabuses,*--ri !.. ` .1
Administratioa^tc(fiuals s ate;- th
projects e inples Hof'
else, however. They see them arpa"
of a pattern: that.- has brought.U.S.
covert- moos to a- - virtual -- halt
through leaka'7indthblamei'tCi
sure requiiemente c _th Hughes
Under. that:pro6iaCan:
then?Sen. garold~?~ = vgties' D-?
Iowa), and the l ite=Rep:=I.eo-J' RYM
(D-Calif.).as an amendment, ta?an'
propriations. measures siz !commi'
and the V60-must bie fled
plarmedcovertactivities*
#er GurbsUrge
_ v..i s A.. .'T',r~f~1,.~ 2',?`.a,' L?'4~i"?~ ^rL31
ETBOELBTGTOTH:.r. > .I =_^.,, ? ,
Selz . Barry - Goldwater (R-Ariz )
ald this means that "nearly 50 sena-
'torL:t over,-120 congressmen . and
'numerousstaf members receive this
implication was. that this- no way to
committees,-created. after passage of
must be briefed.on sucltprojeets.:;,_
requirement . In large part it is
spurred by a desire to curb leaks such
as the one that "blew" the 1977 oper-
ations= .- -?.- -
on_
However. Aemii>istratiofficials
and congressmen preferto take`the
position in-public that the House an
Senate Intelligence- committees hav
brought. the CIA_ under.:c ontrol; and
thus no longer. needed 41
Additionat,support for_the
`comes from the belief of some in Con
grew that the public is tired of seem
the. CIA picked on and that it no
`11& in-ats-from Afghanistan.
There is' recognition' one official
said ..that. the. United States should
have :options' for` protecting itself in
the!World; options that lie between a
mere,-diplomatic. protest. noteand
But ;the eform.effort;does~ iameul mon
so trobelAajority_in Cgress
probably . favors -. repeal = of th
,but nos
Hughes-Ryan measure,
members 'of the six committees object
to losing their briefing rights-just as
Hughes-Ryan., also _.is ._ tied into.
mileage in voting: for -aharttr.;tha
At the. :samei;t ne, 'many' lltieraIs
who~want:aFtight:rein ori.?the Intel
ligen e , 1 l ant fo delay. fi
nal-action on-a-newrcharter.becai
they believe that sSen: Edward'
Kennedy (D;=Mss)'-lf'elected-Pres
ident'neit year -ibotd'bk more sym
pathetic to th= than: President Car
tet is. s: ?-w.li .
intelligence= community? =make
keep secretthus making them near
I t vas p a s s e d A. 1geof disclo
public sentiment for--forbidding all
One effect' of- Hughes-Ryan ap.
only: covert 'projects . but the. lives of
`might have = emanated from, Ieaks.'
Sena Walter. D. -Huddleston `(D-Ky.);
-chairman-of, the Senate Intelligence
subcommittee on. the charteroaid in
an interview...:
"But whether the leaks came from
Congress, the White House; the .State
:knows? President-' Carter.. has'. said
there. ;were:: more".-Ieaks'from' the
White House than from ether of the
g-p
"A t t moreahan'twoagents..were.
lost,"' said ~ aa; Administration: source;
aional committees for most leaks- i
must be briefed. under Hughes-Ryan
to covert action asinherently, moral-
lions bey leaking.
One example of congressional leaks
tended publicly'tfiat the $.& govern=
ment had evidence-that Panama lead-;
er; .Omar Torrijos- Was?.involved,.in.
drug~;trafficking.;To : jrefute:th
and vicg chairnaag of the Tntelligetice
ScQ~YTINtiEG
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Committee." Sens.', Birch Bayh _ (D.
Ind) and Goldwater, said Torrijos'
brother had been indicted on drug
charges but not. the Panama-. leader.
himself.
During debate, the Senate, was told
that the Panama leader's residence
was bugged by U.S. intelligence. as
was his hotel room diming a meeting
of the Organization of American
States. The bung was soon report-
ed in the U.S press, which ended its
usefulness..._~;, ;w- ;,11,~
Hughes-Ryanrhas also - inhibited
the presentation: of- ideas for covert
actions, several sources said. "Covert
actions are by definition controversial
actions these days," one said. "so they
are not being .proposed very much
because of the: risk. of leaks and of
damage to the career of the proposer.-
"And of course Allied intelligence
services are telling us very little be-
cause of all these leak's".
Ina new book. "Foreign Policy, by
Congress.". Thomaa:.M. Franck an
Edward Weisband- argue that efforts
to tame the intelligence community
have nowgone full cycle
Ten years ago members af Cott
. hands with intelligencec_ they-wrote.
had to be done out. of the limelight;!
they said, and only with: exposure of
CIA skeletons-assassinatioxt at-
tempts, mail openings;. drug _esper
now the pendulum is sw ngingbaclc
tensity.on.thelill nowiocsestraining
propriations committee markup -so-
question of encouraging the. CIA .,.td
pared for a: final meeting with: Ad=
President Mondale;=,ta- iron-: out re
drawn up .by the. committee. Tt-is al-
.ready less restrictive than?wherr-firsN
-published a year, ago, but the White
`-House seeks further dilutions::: .p?
-one 'of the chief- issues ,is whether
:the ak "should be prohibited :.from
'ever using members of. theeAmencaa
.pre .?the:clergys or: the,~acad~i
?commumty for spying :.Tlie-CrK
:riot now?and-:has-.not used?them_for
? the,last four-years; Huddlestoir
?but~ft doss=not:wantthe'prohibition.
:writtenintolaw:; x+? '
M'-Another question ?is whetherthe
CIA should be permitted to get intel
ligence information -from- unwitting
:Americans-by-non-obtrusive means.
The committee would permit the CIA
to- try to, get such information.-from
an `oilman. say;'who- aright:>just,- be
back from the.Mideast-throughhis
secreta&or':at.a -cocktail-party, but
not through.wiretaps=cr'maii open-
ingsHuddlestoasaid?; ?'~.`-
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NEWSDAY
26 October 1979
ruz Traffi~ ~s
?u Fflouri
By Anthony Marro -
Newsday Washington Bureau Chief
Washington-A major government report, said
by the Central Intelligence Agency to be probably
the most comprr?i ive ever done on federal drug
law enforcement, contends that illegal drug traffic
still flourishes despite huge commitments of money
and effort, and that many of the publicized "gains"
by federal agencies have been overstated and only
temporary.
The 214-page study, made public yesterday by
the General Accounting Office, the investigative
arm of Congress, says that the problem persists be-
cause of "enormous consumer demand, tremendous
profits and little risk' that traffickers will be ar.
rested or jailed.
"In addition," it says, "the federal drug supply
reduction efforts have yet to achieve a. well inte-
grated, balanced and truly coordinated approach."
The essence of the report, in the words of one
Senate staff member, is, 'The problem may not be
insoluble, but we're not.. going to solve it the wa
we're going about it." - -
A spokesman for the Drug Enforcement Agency
the principal federal law enforcement unit, w
quick to challenge the findings, saying that muc
of the material is dated, and that the office had "r
gurgitated" many old criticisms that since hay
been corrected.
The report, which was presented to a Senate a
propriations subcommittee by Comptroller Gene
Elmer Staats, says that some major successes hay
been achieved in the past decade, particularly du
ing the early 1970s, when President Richard NIX011
r,
made drug law enforcement a top priority. But i
says that despite expenditures of about $5.5 billion:
since 1968, the trafficking in illicit . drugs
grown, and that many enforcement officials believe'
that the situation in the Southeast--which the re-_
Port calls a "drug disaster area"-is coiapletely out
of control.
The study was commissioned by the GAO; but
at some point during its.. evolution picked up thy. y
sponsorship of Sen. Dennis DeConcini (D-Ariz.), a
vocal critic of anti-drug efforts. DeConcini and
three other senators have a resolution pending in
the Senate Rules Committee that calls for the cre.
ation of a select committee that would deal only
witli- drugs and drug law enforcement programs.
At present, oversight is spread through at least
three Senate committees, and there is opposition to
the DeConcini plan from members of the Judiciary,
Government Relations and Human Resources Com=mittees, which would lose at least part of their au-
thority over the drug-control agencies if the new
committee were formed.
DeConcini, however, is expected to use the re-
port as ammunition in his own fight, since it con-
cludes that one major reason for the- lack of
effectiveness in drug control programs is a lack of a
clear, cohesive and coordinated strategy by the fed-
eral government.
"It is clear ... that money alone cannot break
down the barriers that still stand between-success ana failure is tfie war on drugs," he said. "We
have ~ reached a point where current strategies,
tactics and programs must 'be evaluated, and if
necessary changed, if we are to protect our citi-
zens from this insidious evil."
Among the other problems cited in the study
are these:
? While there has been a major shortage of
heroin in the United States in recent years, large-
ly because of the agencies efforts, many drug us-
ers simply have shift4id to other, more easily
obtained synthetic drugs, such as PCP. (angel
dust), Talwin and Preludin.
? There is no comprehensive border control'
Plan, and thus, federal agencies at the U.S. bor-
ders carry out separate but similar lines of effort.
with little consideration for overall border securi..
ty.
? Bail and' sentencing practices. throughout
the country have weakened efforts at immobiliz-
ing drug traffickers, many of whom continue to
deal in drugs while out on bail awaiting trial.
? The agency has not yet attained proficiency
in investigating major interstate and internation
al drug violators, and many of its agents have not
been trained in the latest financial conspiracy
techniques.
C01011
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This last was particularly upsetting to agency
officials, who say they have been making great ef-
forts in recent years to increase the ability of their
agents to make these sorts of cases. "They hit us
where we didn't think we could be hurt," said
Robert Feldkamp, a spokesman for the agency.
"We've been doing a lot of train agents in this work, and we think it's a bad rap."
The report, however, says. that in seven of
eight cities with major drug problems surveyed by
GAO, local prosecutors complained that agents
were unable or unwilling to make these cases, and
instead concentrated on the sort of low-level `buy-
and-bust" investigations that made for impres-
sive-looking statistics and large numbers of ar-,
rests;-but'did'little W (hVifpt'thaji
- They CF,' whichf wi 'idaiiy~bthei' kgenciCS ie=
viewed-the-report-befare'pubhicatiort,`said-thiarit
is "probably the most comprehensive and authori-
tative statement" on the problem to date. The Juu a
tice Department, of-which the drug agency is
part, agreed with some of the findings, but argued
than many of the criticisms are based on "past
performance, outdated information and misinter-
pretations." -
While the report discusses at great length
some of the weaknesses in the law enforcement
programs, it does not raise, or attempt to deal
with, the question of whether the programs them-
selves are valid, or whether some drugs simply
should be made legal.
It accepts as valid the basic goal of federal
drug law enforcement: To contain the problem for
the moment, and eventually av on the
ty and quality of illicit street.
Many of the criticisms are not new. For exam-
ple, virtually every congressional committee and
executive branch commission that has studied the
drug problem in the past decade has decried that
lack of a comprehensive border control plan.
The Carter administration had put together a
t
proposal calling for a major reorganization of bor-
der' control agencies-DEA, Customs, d the
Border Patrol-designed to better police
southern borders against smugglers and the in-
flow of illegal aliens.
This plan, however, touched a raw nerve with
the Mexican government, which objected
idea of anything resembling an army on its bor-
der. the adminis tration began serious
,And when negotiations aimed at getting greater access to
Mexico's newly discovered oil reserves, the border
control plan was quietly shelved.
The criticism of lack of coordina o to the
operation also is as old one, dating back late 1960s, when rivalries between federal drug
law enforcement agencies were so fierce that they
often disrupted each other's investigations.
In a rebuttal issued yesterday, Peter Ben-
singer,.the. head of DEA, said thatsuch lack of co-
lency
d ira i
st
, an
'per atldn-_ is a thing of the pa
.o per iL_ C .7-..bY nVYi 1A at an -ttimime
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ARTICLE APPEARED
ON PAGE__
THE CHRISTIAN SCIENCE MONITOR
15 November 1979
That myster-1 i
y.
`flash' it
looks atomic
Puzzle over what* it really
was may soon be solved
ByJobeL-Cooley-'
Staff correspondent of The Christian Science Monitor
W
New Zealand soon may provide the first solid evi
dence of whether the mystery flash observed in the
Southern Hemisphere Sept. 22 signals a new member of
the world nuclear-weapons club.
US State Department and defense officials say New
Zealand's Institute of Nuclear Science at Gracefield,
near Wellington, is verifying its findings of radioactive
fallout in the atmosphere and may have a final state-
ment within three weeks.
Since early this month, Independent US scientists
have held several meetings under auspices of White
House science adviser Frank Press to study the flash. A
US Vela satellite picked up the flash Sept. 22; these sat-
ellites have detected 41 earlier nuclear tests by the same
means. -
What had especially puzzled US nuclear scientists
was that no radioactive traces had been picked up after.
ward in the atmosphere. despite extensive searches by
long-range US aircraft, some coordinated by the US re-
search station at McMurdo Sound, Antarctica.,
Prevailing winds, US experts now say, could have
carried the fallout from any blast westward to the Aus-
tralia-New Zealand area, where it would have been
trapped in the rain analyzed at Gracefield.
B. J. O'Brien, director of the New Zealand Institute of
Nuclear Science, told newsmen by telephone that fallout
has been detected equaling that produced by a small nu-
clear explosion of 2 to 4 kilotons. The fallout was mea-
sured in rain samples, and included many typical fission
products of nuclear explosions.
. A 2 to 4 kiloton blast - one-fifth or less the size of the
bomb the US dropped on Hiroshima, Japan. In 1945 -
was the blast size estimated by US nuclear specialists
when the Sept. 22 flash was first detected.
The earlier 41 tests accurately detected by Vela satel-
lites were atmospheric ones, either by China at its Lop
Nor test site in SinlQang Province, or France at its South
Pacific site in the Kerguelen Islands, eastward of the
area presently under suspicion.
The flash was observed somewhere in a 3,000 square
mile area of the atmosphere south and east of South
Africa and north of Antarctica, leading to suspicions
that South Africa had tested a nuclear device. South
Africa has denied this.
Apparent Preparations for an earlier South African
test on land were halted in the summer of 1977 after US
intelligence satellites verified Soviet satellite sightings
the preparations.
nuclear experts acknowledge that there is nothing
but circumstantial evidence, so far, pointing to South
Africa as the source of the Sept. 22 blast.
It is conceivable, these experts acknowledge, that
Pakistan, Israel, Brazil, or some other power-on the
threshbold of nuclear weapons development could have
moved a nuclear device into the remote and little- j
observed area of the South Atlantic or Indian Ocean,
with or without South African cooperation, and tested it i
in the atmosphere by means of a balloon, rocket, or j
US officials now hope that the final report of the
Gracefleld Institute may establish- exactly where the
blast, if there was one, took place.
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 ARTICIL :kx'rZLRJ''r,
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TV GUIDE
17-23 NOVEMBER 1979
came to be known) portrayed a Torrijos
regime profiteering on. prostitution.
drugs, gunrunning. smuggling-and
guilty of flagrant abuses of human
rights.
Had. Watson's allegations been re-
layed on the network television news-
casts that night, they conceivably could
have added to the American public's
substantial doubts about turning the
Panama Canal over to the Torrijos gov-
ernment. This, in turn, might have had
an effect on the Senate debates. As it
happened, because they were unable
to document his charges, the networks
held back on the Watson footage.
The most telling twist to this episode
-a leak-within-a-leak, as it were-
did not come until Aug. 14 of this year.
On that date. Bernard Shaw broadcast
a report on ABC that began: "This man
says some prominent Washington con-
servatives paid him money last year to
lie In a frantic scheme to defeat the
Panama Canal treaties and humiliate
President Carter. He's Alexis Watson
Castillo...
As a result of his own investigation
(following a telephone tip from the gar-
rulous Watson himself, several weeks
after the Miami conference), Shaw was
able to document that members of a
group called the Committee to Save the
Panama Canal had paid Watson $6000
to tell the news media the stories about
prostitution and gunrunning in the
Torrijos government.
While It is far from clear that Watson
was bribed, as opposed to being re-
imbursed, one set of facts seems irref-
utable: Watson was presented to the
news media-the network cameras
most specifically. included-was an au-
thority on a pressing matter of inter-
national concern. Those who presented
him had a strong ideological interest
in the issue at hand. Watson volun-
teered information that could have af-
fected the outcome of the issue in a
manner suitable to the committee that
presented him. , --111
And the fact that Watson contra-
dicted his story later raises important
questions about how vulnerable televi-
sion is to manipulation by sources
whose facts are questionable. In this
instance, even though their reporters
and cameras showed up to cover Wat-
son's charges, the TV networks exer-
cised restraint and judgment. What
about next time?
"Next time." of course, has already
happened. Dozens, perhaps hundreds,
of times. It is important to understand
that the "leak" Is an accepted, quasi-
respectable coin of exchange In mod-
em journalism. In Washington, where
most national news originates and
where nearly everyone knows some
secret, leaks are as commonplace as
parking tickets. Most of them are In-
nocuous. Some are offensive to cer-
tain bureaucrats, even to senators and
Presidents-but are legitimate news
stories nonetheless. Only a relative few
fall into the netherworld of "national-
security" violations, attempts to mani-
pulate sensitive policy issues or out-
right hoaxes.
"I have repeatedly told members of
the TV press: 'Dammit,- come to us.
If you ask, we'll help you turn a leak
into a flood'." The speaker is a mld-
die-management administrator in the
Federal Trade Commission.
"Many bureaucrats who leak stories
are doing it for a positive motive,"
continues this administrator. "Let's say
the FTC has been investigating a
shady manufacturer for a couple of
years. Let's say we pretty much have
the goods on him. Now: we are pro-
hibited by protocol from formally an-
nouncing the existence of this probe.
But if we believe the information is
something that should be before the
public. I can see no harm In leading
the press to the story."
Sam Donaldson, ABC's While House
correspondent, agrees. "The bane of
our existence is that the White House
controls what is perceived as 'the story
of the day'," he says. "Most of what
we correspondents do Is things like
float down the Mississippi with the
Carter entourage-what the White
House calls 'planned participation.'
Obviously, we can't do this and be
behind the scenes, digging. So if I re-
ceive a piece of volunteered informa-
tion, and I'm convinced that It's ac.'
curate. I think it's better to use it than
not, in most cases."
But even as television journalists
welcome leaks, they acknowledge that
the nature of their medium has tended
to discourage prospective sources-in
favor of the printed page.
Media watchers are debating
whether reporters can-and
ought to-be stopped from
acting on tips
By Ron Powers
It was not exactly your standard text-
book news leak Measured against ill
accepted norms of procedure, this news
leak was approximately as subtle as the
launching of. Apollo .10. But a teak it
indeed was, and the fact that It back-
fired does nothing to alter its signifi-
cance as a media milestone.
For decades print journalism has
enjoyed a near monopoly on major
stories originating from insiders' leaks.
But as of Feb. 10, 1978-4n a bizarre
story that did not play itself out fully
until August of this year-the news leak
i announced itself at television's front
door, dressed up in bright packaging,
accompanied by all the hype and
.audacity that the electronic medium
seems to demand.
A "news leak," of course, is the in-
elegant term that describes information
passed along to a reporter voluntarily,
by someone who has a self-interested
reason for seeing the information made
public. (Usually because certain other
people would rather" keep the whole
thing a secret.) The most celebrated
news leaks involve vital questions of
government policy, including national
security. As did this one.
This most conspicuous of leaks took
place in Miami, at a time when the
Senate debates over the proposed
Panama Canal treaties were at their
height. At a news conference called by
a Washington public-relations man
named William Rhaticen, a mysterious
Panamanian unwound a horrifying ac-
count of decadence and corruption
within the Panamanian government. The
witness, one Alexis Watson Castillo, was
presented as a former Intelligence agent
for the country's military head of state,
Gen. Omar Torrijos. Watson (as he
G+ONTII~ZTr~b
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'People who leak stories often want CBS airwaves. it was a leaked story.
to get their side on the record," points o course that brought Schorr's CBS
out CBS correspondent Fred Graham. career to a premature end: his contr -
"The strategy is to have the other side versial release o the House Sel ct
read it, and then react to it. Television Committee on Intelligence report on
J isn't perceived as 'the record'." CIA secrets, which he had obtained
rit Hume has contemplated the is- '.rani an anonymous inside contact.
sue from both sides-for three years as ? Ironically, it was c orr s decision to
a top investigator for the syndicated Po- print the document-in The Village
litical columnist Jack Anderson. and Voice-that brought down the wrath of
now as a Capitol Hill correspondent for both the Government and his network..
ABC. "The difference." he remarks Under suspension by CBS, Schorr re-
candidly, "is that few people In Wash- signed In September 1976.
Ington fear the networks-on a day-to- Whether a news leak is "packaged"
day basis-in the way they fear the and delivered to television, as. in the
power of the print press. Watson case, or whether it evolves from
"Television news Is In the odd posi- reporting, as with Daniel Schorr,- its im-
tion of reaching a far greater audience plications are many and troubling. Few
than newspapers, but of having a people would deny that some leaked
smaller impact on policy. So moat of stories have furthered the public inter-
the important leaks go to the papers." ,'lest, by exposing corruption and the
Nevertheless, television news has "abuse of power and by reinforcing the
had its moments In the news-leak accountability of public officials. ut i
limelight. Besides the abortive Watson there a point at whi h 9
affair, there was the much-publicized o c assified (or inaccurate) informa-
coup by ABC correspondent Tim tion can harm the national securie it
O'Brien-who, on two successive nights so, what can a one to impose rea-
last April. sent members of the Su- sonable limits on the practice?
preme Court and its staff into a frenzy
by reporting advance Information on -Arizoria senator Bar Goldwater Is
major Court rulings. And the Irascible among those w o etieve that leaks of
Daniel Schorr bedevii~d h IA the classified Information constitute a clear
? Warren Commission for and present anger. "They undermine
~, d th
FDI anv n,
years using unrevealed sources to our Intelligence and our national will,
bring off-the-record activities to the-?~ and we have to out as slop to
says. "We have an existing law that
covers that sort-
age Act. It provides penalties up to
death for those who divulge this kind
of information. I'd like to see national-
security violators prosecuted to the
full extent of that law-and If that law
isn't adequate to cover the problem,
we'll have to write one that is."
Goldwater added, however, that the
leaks that disturbed him the most have
appeared In print. rather than on tele-
vision. "I wouldn't say that television Is
leaking nearly as badly as the few
major newspapers in this country," he
said.
There is in fact legislation being con-
sidered that would cover the s ecific
question o national-security leaks.
Being prepared by Sen. Walter Huddle-
ston of Kentucky and other members
of Congress, it would provide, among
other things, fines of up to $50,000
an prison terms o up o ive years
for any person convicted of disclosinng_
the entity of a CIA agent. is law,
say Sena a staff members, would no
penalize the newspeop e who receive
an ~ssemmate t is n ormation.
Such attempts to curb leaks, natu-
rally, prompt newsmen to quickly raise
First Amendment warnings. Jim Lehrer,
co-host of public television's MacNeill
Lehrer Report, is one. "The alternative
to leaks," he says, "is so ominous and
so chilling to free speech that I don't
think it's reasonable. The only real way
you're going to stop leaks is to. have a
totalitarian system." -i.
CBS correspondent Graham, himself
a lawyer and a student of constitu-
tional law, agrees. "The problem with
these proposed laws," he says, "Is
that under recent Supreme Court decl-
signs, a journalist who had information
about the commission of a crime
such as an illegal leak-could be
called in by a grand jury -and, if he re-
fused to testify, be put In prison. I have
found that leaks, in general. have been
very healthy to the news process. Of
course they must be checked out very
carefully."
And ABC's Shaw, whose diligent re-
porting helped to discredit that gran-
diose made-for-N leak by Alexis Wat-
son Castillo, argues that television
news has at least some built-in re-
straints against abusing the news-leak
syndrome.
"People on the outside," says Shaw,
"don't realize how intimidated reporters .':
in the electronic media are by the
power of Investigative reporting. We
are all aware of the impact that a N
story can have. It instills in us, I think,
a profound fear of being wrong. And
an obsession with being right." E
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MICHIGAN DAILY
7 November 1979
CIA. recruiter meets.prospects '
By STEVE HOOK
The Central Intelligence Agency
made its annual public recruiting ap-
pearance on campus yesterday in the
person of Steve Gunn, the agency's
regional personnel officer.
"I'm not really recruiting," he said.
"I'm like a preliminary screener - get-
ting a feel of the people's backgrounds,
giving them information.
??I GIVE out some applications, but I
don't hire people," he said.
Gunn said that he analyzes the
"background and character" . of
prospective CIA members rt to
interviews. He gives applications
those who are "What we are looking
for."
There have been no problems during
his four months as a CIA interviewer,
Gunn said. The past controversies con-
cerning CIA campus recruitment have
not touched him.
"It seems like I have overflowing
schedules just about everywhere I go,"
he said. "Much like I had today." I
GUNN SAID that the' CIA is not
looking for agents among college
students. ,we offer students a variety
of fields, like engineering, accounting
and mathematics". He said prospective
agents "come to them;" that they
rarely come out of an academic en-
vironment.
"0ur egents usually have'experien-
ces in other areas," he said. "They languages she knew. In addition, ac-
usually have diverse life experiences cording to Stark, Gunn wanted to know
behind them - not necessarily why she was interested in the CIA.
academic." Much of the interview involved Gunn
Gunn described his job as "mostly describing general functions of the CIA,
public-relations." He said: "People a talk "which came off as really
come to meseeking information about military."
the agency, and I give it to them." "A lot of what he said was kind of
When asked whether he detected ap- general and flimsy," she said, "and not
prehension among students over the ac- very descriptive at all. I had no more of
tivities of the CIA, Gunn replied that a conception of the CIA when I left than
those who see him don't express reser- I had when I came. He clearly gave me
vations. "People don't come to me ap- the information he felt I should know,
prehensively," he said. and disguised information I shouldn't
JOANNA STARK, a Residential know about."
College senior studyin1 tam, a'nt_s wAs
one of the students who talked with
Gunn.
"I wanted to find out what kind of
people they were looking for," she said,
and.what kind of approach they would
use. I wanted to find out what kind of
impression I would get of the CIA." ?
Stark described the interview as
"formal, but comfortable." She said
that the. first question she was asked j
was "whether or. not I went straight !
from high school to college."
She said Gunn also'asked her about
her major and her career goals. He also
wanted to know how much time she had
spent overseas and what foreign
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 ARTI= 6F'P '
ON PAGE /0-
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Approved
ABA NEWSLETTIIf
(AMERICAY HISTORICAL ASSOCIATION)
NOVEMBER 19T9
FEDERAL HISTORIANS CONFERENCE
The second conference of Federal Historians, sponsored by
the Federal Resource Group of the National Coordinating
Committee for the Promotion of History and the Department
of Energy, was held in Washington, DC on September 13,
1979. The National Coordinating Committee is currently a
consortium of twenty-five historical organizations; it was
founded in 1976 by the AHA, the Organization of American
Historians, and the Southern Historical Association. The con-
ference was planned by a committee chaired by Ronald Spec-
tor of the U.S. Army Center of Military History. Other mem-
bers of the planning committee were Fred Beck of the Office
of the Chief of Engineers, Karl Cocke of the Center of Military
History, Edie Hedlin of the National Historical Publications
Commission, Morris MacGregor of the Center of Military
History and J. Samuel Walker of the Nuclear Regulatory Com-
mission. Approximately two hundred historians representing
more than thirty historical programs within the federal gov-
ernment attended the meeting, which was held at the De-
partment of Energy.
RESOLUTION ON THE HISTORICAL OFFICE OF THE
CENTRAL INTELLIGENCE AGENCY
Taking cognizance of the fact that the historical office of the
Central Intelligence Agency is scheduled to be abolished and
its functions absorbed by administrative personnel who may
not be historians;
And being convinced that this is a backward step for an
agency that has in its trust the records without which the full
record of the nation's foreign relations can never be written
adequately, and without which even the future needs of the
agency itself cannot be met;
And being further convinced that the interests of the feder-
al historical program in general can only suffer by the dis-
establishment of the historical office of an agency as impor-
tant as that of the Central Intelligence Agency;
BE IT RESOLVED bythe federal government historians, rep-
resenting the historical agencies of the federal government,
meeting on September 13, 1979:
THAT the Director of Central Intelligence be urged to re-
consider the scheduled disestablishment of his historical of-
fice and give it new life and purpose to the end that historians
may continue to serve the needs of his agency and the broad
interests of the general public.
NATIONAL INTELLIGENCE STUDY CENTER
AWARDS
Two of the first three awards for writing on intelligence made
by the National Intelligence Study Center (NISC) were grant-
ed for works on recent history. The two books that shared
the cash prize for the best book on intelligence published or
written during 1978 were Perjury: The Hiss-Chambers Case by
Dr. Allen Weinstein, professor of history at Smith College,
and Piercing the Reich by Joseph Persico, a study of OSS op-
erations against Nazi Germany in World War II. NISC awards
for research and writing by an American on intelligence are
presented for a book, a scholarly article, and a journalistic
series or individual piece.
Although the book award is set at $1000, the awards panel,
in dividing the first book award, presented $750 to each of
the award winners. The third selection made, a $500 prize for
the best scholarly article, was presented to Dr. Richard K.
Betts of the Brookings Institution for an article published in
World Politics (October 1978) entitled "Analysis, War and De-
cision: Why Intelligence Failures Are Inevitable." The panel
chose not to award a prize the first year for journalistic writ-
ing.
The National Intelligence Study Center was established in
Washington, DC in 1978 to assist scholars and others writing
and conducting research about intelligence and national de-
cision making, intelligence activities in a democratic society,
and related subjects. Activities of the Center include biblio-
graphical support, research assistance, operation of a library
and reading room, publications describing efforts of national
organizations to improve public understanding of in-
telligence activities, and a survey of college courses on in-
telligence.
The Center Board and Advisory Board include a number of
university professors interested in studies on intelligence,
among them Professor Eugene Rostow of the Yale University
Law School, Professor Lyman Kirkpatrick of Brown Universi-
ty, and Dr. Jules Davids, professor of U.S. diplomatic history,
Georgetown University, who was co-chairman of the awards
panel. Dr. Ray S. Cline, director of studies at the Center for
Strategic and International Studies, is president of the Cen-
ter.
NISC is interested in receiving from members of the AHA
suggestions for books and other writing that might be con-
sidered for the 1979 and subsequent Center awards, and in-
formation on existing course materials covering intelligence
activities. it is also interested in having more historians as
members. In addition, it welcomes ideas on application of
oral history techniques to historical aspects of intelligence,
and on expansion of historical treatments of intelligence ac-
tivities more generally.
Inquiries about NISC and its awards program should be ad-
dressed to Martin G. Cramer, Executive Director, National In-
telligence Study Center, Suite 701, 91918th Street NW, Wash-
ington, DC 20006.
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 Approved For Release 2009/04/28: CIA-RDP05SO062OR000501300001-2
ARTICLE APPD
THE WASHINGTON POST
ON PAG3__,A_/_ 14 November 1979
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