DECEMBER BRIEFING

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP90-00806R000100140083-4
• Release Decision: RIPPUB
• Original Classification: K
• Document Page Count: 1
• Document Creation Date: December 22, 2016
• Document Release Date: May 24, 2011
• Sequence Number: 83
• Publication Date: December 1, 1980
• Content Type: OPEN SOURCE

Sanitized Copy Approved for Release 2011/05/25: CIA-RDP90-00806R000100140083-4
THE PROGRESSIVE
December 1980
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Fighisng words ... A shouting match broke out during the recent an-
nual meeting of the Association of Former Intelligence Officers, a public
education" group for some 1,500 former CIA, FBI, and military intelli-
gence officers, founded in 1975 by former CIA Chile Task Force chief David
Phillips. During a panel on terrorism, Ray Cline, once the CIA's Intelli-
gence Division chief and a Reagan campaign adviser, argued that !eft-wing
terrorists- were trained and controlled by Moscow. The FBI's terrorism
chief said there was "no proof-" An ang Howard Bane, , who recently re-
tired as CIA's terrorism chief, scoffed at Cline: "That's just right-wing non-.
sense. It's divisive and untrue.'-. Troubled waters ... The mysterious death of John-Paisley, a former
top CIA analyst of Soviet arms developments, continues to find its way into
the new-and now in Australia. Last year, it was reported that Paisley,
who supposedly committed suicide on his sloop in Chesapeake Bay in Sep-
tember 1978, was a CIA contact for Richard Nixon's White House
"plumbers." Reports from Australia say Paisley was a close friend of Walt
McDonald, a twenty-five-year consultant to the CIA and, at the same time,..
a participant in a shady worldwide financial operation called the "Nugan
Hand Bank." Founded in 1973 by former Green Beret Nlichael Hand and
several other individuals listing their addresses as "do Air America, San
Francisco" (a wholly-ownedC IA subsidiary), the bank opened with offices
in Asia, Latin America, West Germany, and Saudi Arabia with Si million .t
in assets, which increased a thousand-fold within a few years. Other high
CIA and intelligence-connected ofiicials,.including William Colby, were i
close to the bank's founders. According to Australian press reports, the
firm was bankrolling international narcotics operations. Some of the money
ended up in pro-U.S. Australian labor union coffers. Following the reports, .-`
Michael Hand disappeared. Partner Frank Nugan was found shot dead in
his Mercedes. The bank has collapsed.
Sources suspect the Paisley and Nugan Hand affairs are linked. On board
hisyacht, Pais+ey had highly classified radio gear capable of communicating
via.satellire with the CIA ground station at Pine Gap, Australia. His tele-
phone diary had Walt McDonald's name in it. .
More irstehigence... Jim Hougan, author of Spooks, and Washington
researcher Roi'ert Fink have signed a contract to write the story of the Wa-
tergate affair- What's new about that? Hougan and Fink are said to have
conchided d at the CIA set up the White House plumbers to be captured at
the Watergate, thus knocking Nixon out of office. J. S.
Sanitized Copy Approved for Release 2011/05/25: CIA-RDP90-00806R000100140083-4