TRIP TO DALLAS

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP89G00720R000700960005-4
• Release Decision: RIPPUB
• Original Classification: K
• Document Page Count: 81
• Document Creation Date: December 23, 2016
• Document Release Date: August 20, 2012
• Sequence Number: 5
• Publication Date: February 11, 1988
• Content Type: MEMO

Declassified in Part - Sanitized Copy Approved for Release 2012/08/20
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PAO 88-0050 ~L~-~~'
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11 February 1988
MEMORANDUM FOR: Deputy Director of Central Intelligence
FROM: William M. Baker
Director, Public Affairs Office
SUBJECT: Trip to Dallas '
1. This is background information for your trip to Dallas on
15 - 17 February to meet with the DALLAS MORNING NEWS editorial board, to
address the American Electronics Association Texas Council luncheon and to
speak t Chapter of the Young Presidents' Organization (YPO)
STAT dinner. will accompany you on the trip.
2. Meet with the DALLAS MORNING NEWS editorial board, 16 February, 8:30 -
9:30.a.m.: You will meet with the vice president of the paper and editor of
tt e~edi'torial page Ms. Rena Pederson and other members of the editorial board
at the DALLAS MORNING NEWS offices, 508 Young Street. You are to check in
.with security at the main entrance lobby and take the elevator to the 4th
floor where you will be escorted ing in the editorial board room.
ISTAT Ms. Pederson will introduce you. will remain with you throughout
the meeting. The tentative list of attendees is:
Henry Tatum Assistant editor
Bob Moos Editorial staff writer
Scott Bennett Editorial staff writer
Carolyn Barta Editor, Viewpoints page
Jim Wright Viewpoints page columnist and staff writer
William Murchison Viewpoints page columnist and staff writer
Attendees will introduce themselves at the beginning of the meeting. (See
tab for background information on the paper; .biography of Carolyn Barta, and
selected editorials and articles.)
3. Arrangements for the American Electronics Association (AEA) Texas
Council Luncheon, 16 Februar 11:50 a.m. - 1:30 .m.: You are asked to be at
t e eraton ar entra ote erit, opt oad and Highway 635, at
11:50 a.m. where you will be met in the main lobby by James (Jim) Gero,
Chairman of the AEA Texas Council and Executive Director of the Texas Council
Ed Waldrup who will escort you to Salon D. (See tab for biographies.) Lunch
will begin at 12:00 noon. You will be seated with the following:
SE ONLY
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vi ~ aa.an~ u.n. V~71. i
Jim Gero (on your right)
President, Varo, Inc.
Charles Williams (on your left)
President, Teledyne Geotech
David Bartley
President, Multi-Plate Co., Inc.
Ray Marlow
CEO, Marlow Industries
Mike Kelly
Vice President, Human Resources
?
Recognition Equipment
.Chuck Farmer
Vice President & General Manager,
Garland Division of E Systems
Jack Cosgrove
President? Collins Defense
Communications (Rockwell Int.)
Gary Jost
Executive Vice President, Collins
Defense Communications
(Rockwell Int.)
Ken Kercher
President, Datamatic
You are scheduled to speak at 12:45 p.m. and Mr. Gero will introduce you.
The proposed format is 20 minutes of remarks followed by 20 minutes of
questions and answers. Adjournment is at approximately 1:30 p.m. A podium
and microphone will be available. A photographer from Rockwell International
will take photographs during the first few minutes of your speech. Since the
AEA has asked to publish your remarks in their newsletter "Update", we have
asked to review them prior to publication. (See front pocket for copy of
publication.) DCI Security will tape your remarks for the Agency's historical
files.
Approximately 100 - 150 Presidents and CEOs of electronic companies which
are primarily in the production of defense electronics will be in the
audience. Since foreign nationals are members of the organization, several
could attend. (See tab for membership list and list of tentative attendees.)
Media coverage is expected and reporters will be allowed to ask questions
during the question and answer period. Defense and high technology reporter,
Kathryn Jones, from the DALLAS P~ORNING NEWS will be present. We have no other
names at this time.
The American Electronics Association is the nation's largest electronics
trade association and a leader in the movement to foster US industrial
competition. According to the US Bureau of Labor statistics, Texas ranks
fourth in the US in electronics employment with 148,000 employees. The Texas
Council is the local association and is comprised of 130 companies in Texas,
almost 100 of them are from the Dallas/Ft. Worth area. These 100 companies
employ approximately 50,000 people. (See tab for further background
information.) Previous speakers have been Vice President George Bush, Ross
Perot, Governor William Clements, Undersecretary of the Army James Ambrose,
and Mayor of Dallas Annette Strauss.
4. Arrangements for the Dallas Chapter of the Young Presidents'
Or anization Dinner, 16 Februar 6:00 - 10:00 .m.: You will be met by
Mr, and Mrs. Ray Hunt in the main to by of 'Loews Anatole Hotel and driven to
Southwestern Bell Headquarters, 208 South Akard, at 6:00 p.m. where you will
be escorted to the auditorium and seated in the front row. The meeting .opens
at 6:30 p.m. with President of Lomas and Nettleton Mortgage Investors,
Ted Enloe, conducting general chapter business followed by President of Texas
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Division Southwestern Bell Telephone Company, Jim'Adams, giving opening
remarks. (See tab for biographies.) Ray Hunt will introduce you and your
address will begin at 6:55 p,m. The suggested format is 15 minutes of remarks
followed by 20 minutes of questions and answers. ,Prior to adjourning the
meeting, Chairman of the Board of the Waterman Group, Mike Waterman, will
present you with a gift. (See background materials for agenda.) A podium and
microphone will be available on stage. Your remarks will be taped by the
organization for the Agency's historical records. Starting at 7:35 p.m, a
social hour will be held in .the Pioneer Museum followed by dinner at 8:30 p,m.
in the main lobby. You will be seated with the following:
Mr, and Mrs. Ray Hunt (Nancy)
Mr. and Mrs. Jim Adams (Judy)
Mr. and Mrs. Mike Waterman (Linda)
e (Bess)
STAT
(See tab for table seating)
An audience of approximately 150 Dallas Chapter YPOs and spouses will be
present. (See brochure in back pocket for roster of members.) Although the
media will not cover the event and the meeting is considered off-the-record,
several of the members are affiliated with the media in some way. Mr.
Robert Decherd, President of the A,H, Belo Corporation which owns. the DALLAS
MORNING NEWS, is attending. (See tab for list of attendees.) The Dallas YPO
chapter does not have foreign nationals as members.
According to YPO policy, a qualified corporation or division for
membership shall be any corporation (other than a financial corporation) or
division with annual gross sales of $4,000,000 and fifty employees or more; a
financial corporation with average annual assets~of $80,000,000; a service
brokerage or agency type corporation with annual commissions or fee income of
$2,500,000.
The YPO 1987-88 education theme is "Living in the World Around Us." This
year's program includes Dr. Larry Senn, Chairman of The Senn-Delaney Group,
Debra M, Rogers, Manager, US Sponsored Research bigital Equipment Corporation,
and Dr. Kenneth Blanchard, author, lecturer, and professor. (For further
program information see brochure.)
i
OFFICIAL USE ONLY:
i
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OFFICIAL USE ONLY
DDCI SCHEDULE/CONTACTS
DALLAS TRIP
15-17 February 1988
Monday, 15 February
3:27 p.m. Depart, National Airport
EST American Airlines #567
5:51 p.m. Arrive, Dallas-Fort Worth Airport
CST
RON Loews Anatole Hotel
2201 Stemmons Freeway
Phone: [phone]
Tuesday, 16 February
8:00 a.m. Depart, Loews Anatole Hotel
/~-----~
~ ~
~ ~~ ~~~
i
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8:30 a.m. Arrive, DALLAS MORNING NEWS '
508 Young Street
Contact:' Rena Pederson, editor of ..editorial page
Carol Portele i
Phone: .[phone]
i
9:30 a.m. Depart, DALLAS MORNING NEWS. ~
11:50 a.m. Arrive, American Electronics Assoc ation (AEA)
Texas Council luncheon
Sheraton Park Central Hotel
12720 Merit, Coit Road and Highwayi635
Phone: (214) 385-3000
Contact: Ed Waldrup, Executive Director of Texas Council
Phone: (214) 437-9224 ~
12:00 noon Lunch, Salon D
12:30 p.m. Announcements
12:45 p.m. Introduction, keynote speaker ~
Jim Gero, President, AEA, Texas Council Chapter
Address
The Honorable Robert M. Gates
20 minutes of remarks and 20 minutes of questions & answers
1:30 p.m. Adjournment
6:00 p.m. Meet, Ray Hunt
Lobby, Loews Anatole Hotel i
Drive to YPO meeting and dinner
6:30 p.m. Arrive, Southwestern Bell Headquarters
208 South Akard
Contact: Sandra Lewis
Phone: [phone] r
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Tuesday, 16 February: (continued)
6:30 p.m. Meeting, Dallas Chapter YPO, Concourse Auditorium
Announcements ~
Ted Enloe, President, Lomas & Nettleton Mortgage Investors
6:45 p.m. Welcoming Remarks
Jim Adams, President, Texas Division Southwestern Bell
6:50 p.m. Introduction of keynote speaker
Ray Hunt, President & CEO, Hunt Oil
6:55 p.m. Address ~
The Honorable Robert M. Gates j
15 minutes of remarks and 20 minutes of questions & answers
7:30 p.m. Presentation of gift to Robert M. Gates
Mike Waterman, Chairman of the Board, Waterman Group
7:35 p.m. Social Hour, Pioneer Museum
Second floor ~
8:30 p.m. Dinner
Main Lobby, ground floor
10:00 p.m. Adjournment
I
RON Loews Anatole Hotel
Wednesday, 17 February
7:30 a.m. Depart, Loews Anatole Hotel
8:23 a.m. Depart, Dallas-Fort Worth Airport ~
American Airlines #272
12:05 p.m. Arrive, Dulles Airport
(EST)
r
I
Diane D'Agostino and Shannon Smock (Mr. Hunt's office)
[phone]
Helen Grimes (P9r. Waterman's office)
[phone]
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~ ROOM NO. I BUIL~bIN~ ^A_ ~ EXT
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CIA-RDP89G00720R000700960005-4
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TABLE OF CONTENTS
Schedule of Events/Contacts
Summary Memo
Dallas Morning News
Background Information
Biography
Editorials and Articles
American Electronics Association
Biographies ~
Membership List
List of Attendees
Background Information
Correspondence
Dallas Chapter of Young Presidents' Organization
Biographies
Agenda
Head Table Seating
List of Attendees
Correspondence
DCI/pA0/IJMB
~' STAT
Distribution:
Ori
STAT 9' DDC j
I _ ER
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STAT I _ f _
1 _ D pA
1pA0
j - pA0 Ame s
J ~,..pAO Chrono
J '~ED(SubJect)
J _ dean
STAT ~ _
l D j Securit
STAT
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"' OFFICIAL USE ONLY
'~ PAO 88-0050
11 February 1988
MENiORANDUM FOR: Deputy Director of Central Intelligence
FROt4: Wi 11, i am Eri. Baker
Director, Public Affairs Office
SUBJECT: Trip to Dallas
1. This is background information for your trip to-~~llas on
i5 - 17 February to meet with the DALLAS MORNING NEWS ~,~itorial board, to
address the American Electronics Association Texas Co~cil luncheon and to
speak to hapter of the Young Presidents'`~'rganization (YPO)
', STAT dinner, vri 11 accompany you on the tri ~
~ ,~.
2. Meet with the DALLAS MORNING NEWS editor,~l board, 16 February, 8:30
9:30 a.m.: You will meet with the Vice presider>Yt of the paper and editor of
t-he~itorial page Pls. Rena Pederson and other~~'??embers of the editorial board
at the DALLAS MORNING NEWS offices, 508 Young,~~.Street. You are to check in
with security at the main entrance lobby and,~ake the elevator to the 4th
floor where you will be escorted to your meeting in the editorial board room.
Ms. Pederson will introduce you. I will r,,~main with you throughout the
meeting. The tentative list of attendees,~~is:
Henry Tatum Assistant edito.
Bob Moos Editorial staf ~='`writer
Scott Bennett Editorial staff writer
Carolyn Barta Editor, Viewpoints page
Jim Wright Viewpoints p ge columnist and staff writer
William Murchison Viewpoint page columnist and staff writer
;;
Attendees will introduce themselves at the beginning of the meeting. (See
tab for background information o>~~`the paper, biography of Carolyn Barta, and
selected editorials and article:)
3. Arrangements for the A~ierican Electronics Association (AEA) Texas
Council Luncheon, 16 February~~11:50 a.m. - 1:30 p.m.: You are asked to be at
the Sheraton Park Central Hotel, 12720 Merit, Coit Road and Highway 635, at
11 :50 a. m, where you wi 11 b;c` met i n the mai n 1 obby by James (Jim) Gero,
Chairman of the AEA Texas Council and Executive Director of the Texas Council
Ed Waldrup who will escort~'you to Salon D. (See tab for biographies.) Lunch
will begin at 12:00 noon;~~` You will be seated with the following:
OFFICIAL USE ONLY
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Jim Gero (on your right)
President, Varo, Inc.
Charles Williams {on your left)
President, Teledyne Geotech
David Bartley
President, Multi-Plate Co., Irk,>.'
~
Ray Marlow ~ ~~ ~~
~ CEO, Marlow Industries a ~
hike Kelly
Vice President, Human Reso?#~ces
Recognition Equipment ~,~'
Chuck Farmer ~
~Vi ce President & Generat'~Manager,
Garland Division of E, ~.~ystems
e
Jack Cosgrove
President, Collins Def
nse
Communications (Ro~~iell Int.)
Gary Jost
Executive Vice Pr~s-ident, Collins
Defense Communic,,~ons
(Rockwell I.nt.
Ken Kercher
President, Da~ati c
~~j' ~
You are scheduled to speak at 12:45 p. m, and t~7r,~`,Gero will introduce you.
The proposed format is 20 minutes of remarks follo~c,d by 20 minutes of
questions and answers. Adjournment is at approxi~ately 1:3U p.m. A podium
and microphone will be available. A photographefr~-from Rockwell International
will take photographs during the first few minu~~s of your speech. Since the
AEA has asked to publish your remarks in the~~~newsletter "Update", we have
asked to review them prior to publication. wee front pocket for copy of
publication.) DCI Security will tape your ~~`~inarks for the Agency's historical
fi 1 es.
Approximately 100 -~~150 Presidents
are primarily in the production of def
audience. Since foreign nationals are
could attend. (See tab for membership
Media coverage is expected and reports
during the question and answer period
Kathryn Jones, from the DALLAS MORN`MG
names at this time.
an'CEOs of electronic companies which
n;~~ electronics will be in the
[-~embers of the organization, several
)~~~ist and list of tentative attendees.)
s will be allowed to ask questions
Defense and high technology reporter,
NEWS will be present. We have no other
The American Electronics Assoa~{ration is the nation's largest electronics
trade association and a' leader in~the movement to foster US industrial
competition. According to the U~Bureau of Labor statistics, Texas ranks
fourth in the US in electronics employment with 148,000 employees. The Texas
Council is the local associatio.`'and is comprised of i3U companies in Texas,
almost 700 of them are from the Dallas/Ft. forth area. These ]00 companies
employ approximately 50,000 pedple.~ (See tab for further background
information.) Previous speaks have been Vice President George Bush, Ross
Perot, Governor William Cleme`~ts, Undersecretary of the Army James Ambrose,
and Mayor of Da17as Annette Strauss.
4. Arrang
Organization D
~ments for ti
Dallas Chapter of the Young Presidents'
nner. 16 Feb"rua
r~r. ana r~rs. rcay hunt in
Southwestern Bell Headqu
be escorted to the audit
at 6:30 p.m, with Presid
Ted Enloe, conducting g;e
:75 - 10:00 p.m.: You will be met by
the main o y o oews natole Hotel and driven to
a-~ters, 208 South Akard, at 6:15 p.m, where you will
o~rium and seated in the front row. The meeting opens
ent of Lornas and Nettleton Mortgage Investors,
neral chapter business followed by President of Texas
OFFICIAL USE ONLY
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-' OFFICIAL USE ONLY
Division Southwestern Bell Telephone Company, Jim Adams, giving opening
remarks. (See tab for biographies.) Ray Hunt will introduce you and your
address will begin at 6:55 p.m. The suggested format is 25 minutes of remar(~'s
~s#~4?,
followed by 10 minutes of questions and answers. Prior to adjourning tt~e?
meeting, Chairman of the Board of the Waterman Group, Mike bJaterrnan ~ii~'ll
present you with a gift.. (See background materials for agenda.) a;~~podium and
microphone wi 11 be avai l~abl a on stage. Your rernarks? wi 11 be tape` by the
organization for the Agency's historical records. Starting a?=s~~':35 p. m, a
social hour will be held i'n the Pioneer Museum followed by ~nnner at 8:30 p.m.
in the main lobby. You will be seated with the followinq}~~~`
Mr, and Mrs. Ray Hunt ( Nancy ) ?~z~
t+ir, and Mrs. Jim Adams (Judy) ,~~'
Mr, and I??1rs. Mike Waterman (Linda) ~;
Enloe (Bess) ~.~~ ~
STAT ~;~
I~}?:
~.~; ?
(See tab for table seating)
An audience of approximately 150 Dal.i;firs Chapter YPOs and spouses will be
present. (See brochure in back pocket_;~~Cir roster of members.) Although the
media will not cover the event and the'~~neeting is considered off-the-record,
:,.,
several of the members are offiliat~d-'with the media in some way. P~Ir.
Robert Decherd, President of the Ash: Belo Corporation which owns the DALLAS
MORNING NEWS, is attending. (See,~;~ab for list of attendees.) The Dallas YPO
chapter does not have foreign na~i~'onal s as meiirbers.
According to YPO policy, ab=qualified corporation or division for
membership shall be any corpoa~ation (other than a financial corporation) or
division with annual gross sales of X4,000,000 and fifty employees or more; a
financial corporation with average annual assets of $80,000,OOU; a service
brokerage or agency type ,~~ rporation with annual commissions or fee income of
S2 ,500, 000. ;?~
The YPO 1987-88 education theme is "Living in the World Around Us." This
year's program includ,~'~s Dr. Larry Senn, Chairman of The Senn-Delaney Group,
Debra M. Rogers, Manager, US Sponsored Research Digital Equipment Corporation,
and Dr. Kenneth Bla.r~chard', author, lecturer, and professor. (For further
program informatio,~f see brochure. )
Wi 11 i am M. Baker
OFFICIAL USE ONLY
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t
' OFFICIAL USE ONLY
DDCI SCHEDULE/CONTACTS
DALLAS TRIP
15-17 February 1988
Monday, 15 February
3:27 p.m. Depart, rJational Airport
EST American Airlines #567
5:51 p.m. Arrive, Dallas-Fort Worth Airport
CST
RON Loews Anatole Hotel
2201 Stemmons Freeway
Phone: [phone]
Tuesday, 16 February
8:00 a. m. Depart, Loews Anatole Hotel
8:30 a.m. Arrive, DALLAS MORNING N ~t~S
508 Young Street
Contact: Rena Pederson; editor of editorial page
Carol Porte~~~e
Phone: [phone]~9
,~~~~
9:30 a.m. Depart, DALLAS h10~1J'ING NEI-JS
11:50 a.m. Arrive, America:~~`Electronics Association (AEA)
Texas Council,uncheon
Sheraton Park~~Central Hotel
12720 t9eri t,'e oft Road and Highway 635
Phone: (21~~ 385-3000
Contact: trod Waldrup, Executive Director of Texas Council
~:~
Phone: (z14) 437-9224
12:00 noon Lunch, ~~alon D
al
12.: 30 p, m. Annour~~ements
12:45 p.m. Intr~~duction, keynote speaker
Jim~~Gero, President, AEA, Texas Council Chapter
Ad?~ress
TJi Honorable Robert M. Gates
~~ minutes of remarks and 20 minutes of questions & answers
1 :30 p.m, a3Adjournment
6:15 p.m?~~ P4eet, P.ay Hunt
Lobb Loews Anatole Hotel
~~, Drive~to YPO meeting and dinner
6:30 p.m. Arrive, Southwestern 8e11 Headquarters
208 South Akard
Contact: Sandra Lewis
Phone: [phone]
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OFFICIAL USE ONLY
Tuesday, 16 February: (continued)
6:30 p.m. Meeting, Dallas Chapter YPO, Concourse Auditorium ~~~
Announcements ~~'s~
Ted Enloe; President, Lomas & Nettleton Mortgage Inv~~ors
6:45 p.m. Welcoming Remarks
Jim Adams; President, Texas Division Southwest`'n 8e11
6:50 p. m. Introduction of keynote speaker
Ray Hunt, President & CEO, Hunt Oil
6:55 p.m. Address
The }tonorabl e Robert t4. Gates ~"
25 minutes of remarks and 10 minut'~ of questions & answers
7:30 p.m. Presentation of gift to Robert M'Gates
Mike Waterman, Chairman of the,~~oard, Waterman Group
7:35 p.m. Social Hour, Pioneer Museum
Second floor
8:30 p.m. Dinner
Main Lobby, ground f1oo:4J
10:00 p.m. Adjournment
,.
~:
Wednesday, i7 February
7:30 a.m. Depart, Loews An ~,ie Hotel
8:23 a. m. Depart, Dal 1 as-F`~"rt Worth Airport
American Airlin.4s #272
12:05 p. m. Arrive, Dul l es.:~--' i rport
(EST )
YPO Contacts and to
Diane D'Agostino
{214) 744-7007
Helen Grimes (P1r
[phone]
phone numbers
Shannon Smock (Mr. Hunt's office)
terman's office)
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y
The Dallas Morning News, established~in 1885, is the oldest and most
widely read newspaper in the area. It is basically conservative, but has at
times been critical of the Agency.
Following are likely areas of interest according to editorial page editor
Rena Pederson: leaks and the damage they do; adequacy of our satellite
reconnaissance program; hot spots we should be aware of; charges stemming from
the current Senate Foreign Relations Committee hearings; Cuba's role in drug
trafficking; and how is glasnost doing. The News does not have dining
facilities, so we will have coffee and croissants.
_. -_
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Frank Tyler Bill Powell
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PRODUCTION: typesetters - 2-COM / 8400;
Independent-Oenacrat. Ettablishad: 1885.
Aat Manafer (MoM ManO Paul Webb
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plate exposers - 1~1N; plate processors - 1- SpaefM adkfaa/eaeUom: Las Vegas. Ski (Jan);
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Intemationsl Travel. Alaska (feb): Cruise,
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Spring Vacation, Dallas Auto Show (Mar):
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PRESSROOM: Line 1- 5-G/Urbanite. MAIL-
Great Adventures Travel Magazine. Carib-
(NOM ManD Ronnie Lewis
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YICO Ntp?Ma1'kMlrf Laurie S Walton
TIONS: pataphone - I-MDS/2 Terminals;
Vacation Photography Guide (May); Mid-
G+n+rN Feraataa?hparMaallfef
GENERAL MANAGEMENT
facsimile - 1.OWI. WIRE SERVICES: high
Summer VacaUOns (June); Mexico. Hawaii
(nth IIanO Robert Lewis
~~ Deborah Schrctk
speed - AP. BUSINESS COMPUTERS: 1?
(Sept); Cruise. SkiFest. Great Adventures
~~ Yjlorwatlen
Zoned editions: Split run;
~~
MDS. 1-HP. 3-IBM/AT; applications: Circ, Adv
Travel Magazine. Winter Vacations, State
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Ykt Mtzg
the Iran operation to Congress i-
but no such finding existed whelA
the November 1985 flight was midi.
Gates said he had no direct
knowledge of how the November
1985 flight was handled because at
the time he was in charge of.,thf'
CIA's analytical staff and had no re?
sponsibility for operations. !
Specter argued that "the Intel -
gence Committee should have
informed that a covert activity
been tmdertakea without a finQ-
ing." ,
Gates said that, as acting direc-
tor, he had told the CIA's director a~
operations that no such activity i8
to be undertaken in the future wit21-
out apresidential finding to author-
ize it in advance. '
"It will be in writing soon ~'
= Gates said of his order.
 Declassified in Part -Sanitized Copy Approved for Release 2012/08/20 :CIA-RDP89G00720R000700960005-4
Y ~
..Yon basically didn't want to
rock the boat," Cohen said. "You're
not prepared to lay your career on
the line for a program you didn't
have much to do with."
Alter further discussion, Gates
conceded that, "I didn't want to
challenge the program."
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 Declassified in Part -Sanitized Copy Approved for Release 2012/08/20 :CIA-RDP89G00720R000700960005-4
The New York Times
The Washington Times
_
The Wall Street Journal
_
The Christian Science Monitor
New York Daily News
_ -
USA Today ________..
.__ ._
The Chicago Tribune _
Oate _~-~' LCEB_
_ ~/~~
EDITORIALS
WHAT NEXT?
Tower report isn't the last word on affair
The Tower commis-
congressional committees
sion's scathing critique of
investigating the (rancon-
the White House's han-
tra affair. Above all else.
dling of the Irancontra af=
those panels need to find
fair is by no means the end
out what happened to the
of the matter. It simply
money from the arms sales
can't be. There still is too
to Iran. [f the contras
much unfinished business
didn't get it, who did?
requiring the president's
Unlike the commission
and Congress' attention.
,
the congressional investi-
^ For starters, Pr~egy~ent
gations can issue subpoe?
Reagan must respond to
nas and compel witnesses
tht~tommissfon's damning
to testify by grantIag them
conclusions and go much
immunity from prosecu-
further than he has previ-
tioa. But the committees
ously in accepting the
shouldn't let anyone oft
blame for the Irancontra
the hook too quickly - es?
debacle. He needs to admit
pecially key players like Lt.
in his address to the nation
Col. Oliver North and Vice
Wednesday - if not sooner
Adm. John Poindexter,
- that he made serious
who apparently deceived
mistakes.
other advisers and the
^ At the same time, the
president himself.
president needs to change
^ The Tower commis-
the detached leadership style he has fol-
lion's report also raises the possibility that
towed for six years and to install advisers
some high-ranking officials broke laws in
who will brief him on all White House opera-
both the Iran arms sale and the diversion of
lions. He has made an excellent start by re-
funds to the contras. The independent coun-
placing chief of staff Donald Regan with
Bel. Lawrence Walsh, needs to determine
Howard Baker.
whether.there was any criminaliryand,-if so,
The former Senate majority leader should
to prosecute.
buy the president a lot of credibility with
^ And finally, the Senate should delay
both Congress and the public. As a key
confirming Robert Gates as CIA head until it
player in the congressional inquiry of the
is convinced that he didn't help tailor the
Watergate affair, Baker enjoys a wide reputa-
agency's assessment of Iran to tit the needs
lion for getting at the truth and doing what
of White House policy-makers. as the Tower
is right, regardless of the consequences.
commission has noted, the CIA can't let polit-
The time also may be ripe for a Cabinet
ical judgments influence its a3aiysis.
shakeup. With two years remaining in
'
The president no doubt would like to put
Reagan
s presidency, there still is plenty of
^the Irancontra debacle behind him and to
time for the administration to pursue its
get on with other business as quickly as pos-
agenda. The president shouldn't have to put
Bible. But that just isn't going to happen, at
up with advisers whose only objective at this
least not until he faces up to the magnitude
point is to serve out their terms.
ot. the- crisis and acts to correct the
^ The Tower commission's findings pro-
weaknesses in himself and his administra-
vide agood foundation for the work of the
lion.
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 Declassified in Part -Sanitized Copy Approved for Release 2012/08/20 :CIA-RDP89G00720R000700960005-4
DALLAS MORNING NEWS (TX)
12 April 1987 ` ~ -
~x?a enti recounts ame o
g __
g
spying
By Richard Whittle
Washinfton Barcau of 77u News
Former CIA Havana operative f tads
recent
WASHIIVGTON -Melvin Beck is
73 and retired today, but back in
1960 he was working under "deep
cover" for the~in Havana. That
leaves him especially bemused by
the furor over Soviet "bugging" of
the US. Embassy in Moscow.
"In Cuba, I tried to bug the Soviet
embassy," said Beck; whose exploits
in Cuba and Mexico as a CIA spy
during th'e 1960x:-were grudgingly
confirmed as authentic by other re-
tired CIA men.
Beck finds hypocrisy in the out-
rage expressed by President
Reagan, Secretary of. Stste George
Shultz and ocher US. officials at ap-
parent Soviet efforts to plant eaves-
dropping devices in the US. Em-
bo^~vin Moscow.
tey're being very self-right-
.bout it," he said, "but it's just
nonsense, because this is the name
of the game, and it always has
been.'.
.The "game" is espionage, and no
one denies that the United States,
like other world powers, has always
been a player. But in the past week,
officials from Reagan on down have
contended that the Soviets went be-
yQnd the rules in Moscow.
"I intend to say to the Soviets
tlsat they can't expect to continue,
incessantly, massively, to work to
create a hostile environment for
our people overseas without cost to
tfiemselves and to their relations
with us," Shultz declared before de-
parting for long-planned arras talks
iII Moscow this week.
Others say the Soviet use of
women to compromise Marine
guards at the US. Embassy is a de-
parture in espionage immorality.
Fiut Beck and other intelligence vet-
erans say such indignation is un-
fAunded at best, at worst disingenu-
r??~.
shouldn't be a surprise to any-
.hat all major powers engage in
espionage when they can," said Da-
vid Atlee Phillips, who retired from
the CW in 1975 as head of its Latin
America operations.
"Certainly the record indicates
U.~. indignation
that the United States has done ft
just as the Soviet Union has," Phil-
lips said. "Morality for intelligence
officers might be quite firm ai
home. But once beyond the two-
mile limit, there's a debatable posi-
tion with morality and personal
ethics to get the job done."
It was during the early days of
Fidel Castro's Cuba that Beck, Phil-
lips' former colleague, was ordered
to ferret out in advance where the
Soviet Union would locate its new
embassy in Havana, then hide elec-
tronic devices inside so the" CIA '
could eavesdrop on the Russians.
After some "research," Beck re-
called from his home in a Washing-
ton suburb, he and his CIA col-
leagues decided a Havana hotel was
the likely site.
"We cased the joint;' Beck. said.
"Fonad out there was a very lovely
room at the top of this hotel, the
penthouse. We decided that would
probably be the ambassador's offtce
and where meetings of the KGB.and _ _ ,
other senior officials would be
held. So the object of the exercise
was to bug this room."
To get into the penthouse before
the Soviets moved in, Beck and his
peers rented a room in the hotel
and staged a party. During the
fiesta, a local CIA agent and two
technicians.irom file CIA's Langley, ,.
Va., headquarters sneaked upstairs
and into the penthouse with a skele-
ton key and planted bugs in the
ceiling.
"We thought we were set for the
day when the Soviets would occupy
that site," Beck said. But then, he
said, "almost the impossible hap-
pened." ~ ' '
The Soviets chose another loca-
tion, in a Havana suburb. Beck
found out about it one Saturday
morning when a Cuban electrician
sent out to look over the prosper-.
five embassy chanced to knock on
the door of Beck's home - a house
in the same suburb - by mistake.
"He asked me in Spanish, 'Is this
the Soviet Embassy?' I knew then
that the other location was out, and
it was much too late to do anything
about it," Beck said. "Out of all the
hypocritical
people in Havana, he came to my
door."
As for morality in espionage, he
recounted with amusement how
later in his career, when he was
working in Mexico City, "I also
tried to entrap a Soviet code clerk at
their embassy by putting a prosti-
tute in his way."
Beck and other CIA officers got
as far as hiring a prostitute from
Vera Cruz and renting an apart-
ment for her in Mexico City, where
...she .was to lure the Soviet code
clerk. The CIA men would then pho-
tograph him in compromising acts.
"We had this operation rolling,"
Beck said, "bt}t:then the_prostitute
chickened out:"?~ ~~ '
The Soviets apparently. were
more successful in Moscow, where
two Marine guards allegedly were
so thoroughly seduced by Soviet
women that they not only allowed
Soviet agents.into the embassy but
escorted them as they spied.
.-'The shpck?of those charges..has
focused new and intense attention
on equally embai'assing suspicions
that the Soviets wore given the,op-
pOrtunity to Dug the new U,:~l;t~;
b&ssy office building, or chap ry,
during construction.
Concrete parts of the chancery_
were fabricated by the Soviets at a
site-where -no U.S. personnel were
allowed to inspect the work.
"No one can explain to me the
logic of it," said John Ziolkowski, an
aide to Sen. Richard Lugar, R-Ind.
With two other Senate aides, Ziol-
kowski studied the new embassy
and reported on its massive con-
.structioti _.and security problems
last September -months before
the issue came into public focus.
The reaction to the security
breaches has been loud and angry
in Congress.
During a hearing last week on
FBI Director William Webster's
nomination to head the CIA, Sen.
Ernest "Fritz" Hollings, DS.C., said
U.S. law carries a pena]ty of up to 10
years in prison and a fine of up to
510,000 for officials who allow gov-
 Declassified in Part -Sanitized Copy Approved for Release 2012/08/20 :CIA-RDP89G00720R000700960005-4
.~..
ernment secrets to be compromised
through "gross negligence."
Hollings said that law should be
applied to Arthur Hartman, who in
early March completed five years as
U.S, ambassador to Moscow, and
Frederick Mecke, who as the State
Department's regional security offi-
cer .in the Soviet Union was in
charge of managing the Marine
guards in Moscow and Leningrad.
"If you really want to get secur?
ity In the embassies around this
world, you nail an ambassador and
a regional security officer and you
won't have to worry about the Ma-
rines and whether they're married
or old or nude or what," Hollings
said.
"How nice," Hartman replied
grimly when informed by tele-
phone of Hollings' view. "I don't
doubt that we all have faults in this
situation. Things went wrong,
that's quite clear. But 1 think it's
more important now to find out
what went wrong and to correct
those things."
The administration already has
begun three special studies of the
Moscow security situation. If the
new embassy is deemed too riddled
with bugs to use, Reagan has
pledged to demolish it.
The 5192 million, 10-acre com-
plex, including red-brick resi-
dences and amenities for the 200-
plus US. Embassy personnel in Mos-
~_
>_;= ...
;r='
~'
f
. b.;.::; ;,~ ~.,
?.. tee- . r~
-;.C ~ ...
Ernst Hoiiinas William Web~tcr
cow, was begun in the 1970s under a
US.Soviet agreement on construc-
tion methods signed in 1972. All fa-
cilities other than the chanceries at
both compounds are completed and
in use.
Ziolkowski said the agreement
provided that the US. facility would
be built by Soviet methods and
workers while an American firm
built the Soviet facility. A team of 40
to 50 U.S. Navy Seabees construction
experts monitored the work as the
Soviets put together the US. com-
plex.
But Ziolkowski said the fatal
State Department error .was to ac-
cept parts of the eight-story build-
ing, such as columns and beams,
that were fabricated away from the
construction site where the Seabees
were not allowed to go.
"I said to the State Department
people, 'Did it ever occur to you that
this could happen?' ,They seemed
happily ignorant about that," Zio!-
kowski said. "I can't blame the Rus-
sians. 't'hey saw a good chance and
they took it."
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~~
~~
,~
~ 1 '~j
it 1 '
GERO, JA;~i.ES hARiRLtiGTU\. defense clccaronics coml1any cxcc:utivc: b.
Cohocs. N.~'., Jan. l~R. 19-t-i: s. Charlc~ Cd~'ard and Marion Addaidc 4
(Farrington) G.: m. C~thcrinc Adclinc Mata~?a. DcY:. 22, 1967. Ei.S. in f;iology.
Chcrnistry. SUNY~ N.~'.C.. 1968: M.I3.A. in Mgmt., Firi., U.~New? E{oven,
1975: 1.1.A. in Stratcg~c Planning and E=utures Forcca~ting, Fairlcigh Dickinson
U.. 1980. With Allied CorP.. Morristo~?n, N.1.. 1968-K4. gen. mgr. optical
Products. 1979-80.;v.P., gen. mgr.. 19K0-K4: rres.. ctricf per ,si~a~re-fram~continuing operations For
the 1986 third quarter.
James F. Gero, chief executive officer and president, said the company
expects~to report " in excess of 50 cents per share " fnr the faurth quarter
ended April 30, 1987, and meet its goal of more than doubling its 1986 earnings
per share of 38 cents.
Revenues for the year ended April 30, 1987 should increase by approximately
25 percent aver fiscal 1986's ffi75.4 million.
For the nine months ended....January _3 i., ...1987, ..Paco -..earned 27 cents per. share,
compared to 25 cents per share f~n~~-continuing operations for the comparable
period of fiscal 1986. Revenues for the nine months were $56.3 million, compared
to $53.1 million for the first nine months of fiscal 1986.
"~fe will experience a significant increase in revenues in the fourth quarter
of fiscal 1987, resulting from missile launcher shipments and night vision
equipment shipments .under the U.S. Army's omnibus procurement contract, " Gero-
said. "Historically, the nat~sre~?c. ---Varo"s --~~~vn~tracti~ngbusiness causes tfiES~e'
significant quarter-to-quarter fluctuations, resulting in erratic quarterly
performance.
"However,~the company's increasing volume of production and delivery an more
than 3300 million in U.S. Army omnibus orders for night vision equipment shnu ld
help sa~ooth out these peaks and valleys in coming years. But as long as we are
involved in missile launchec~_contracting..~nd similar businesses, we will al~wa y s
be subject to these fluctuations, " Gero said.
During the third quarter, .Yarn delivered 87.9 million in Army night vision
equipment, and also completed delivery on ffi2 million in night vision contracts
for foreign countries_ The company delivered an additional ffi2 million in
automatic test equipment for missile launcher systems.
Yaro's funded backlog at Jan. 31, 1987 was $166.1 million, of which
approximately 50 percent will be shipped aver the succeeding 12 months. This
compares to a Jan. 31, 198b backlog of ffi94 million from continuing operation.
Since the close of the third quarter, Varo announced an order for 35.6 million
in LAU-7 Sidewinder missile launchers far the ll.S. Navy.
CDeclassified in Part =Sanitized Copy Approved for Release 2012/08/20: CIA-RDP89G00720R000700960005-4 ~c~
 ' ~ Declassified in Part - Sanitized Copy Approved for Release 2012/08/20: CIA-RDP89G00720R000700960005-4
Services of Mead Data Central
PAGE 2
~ 1987 Business Wire, February i8, 1987
Headquartered in a Dallas suburb, Garland, Yaro is a manufacturer of
night vision systems with military and commercial applications, guided missile
launcher systems, high-reliability power supplies, metal optics and
electro-optical systems and subsystems.
Fo r the three months ended January 31,
tdollars in thousands except per share, unaudited)
1987 1986
Pe r Pe r
Amount share Amount share
Revenues 519,820 $19,325
Earnings from
continuing operations 408 ~ .10 903 ~ ,20
Loss from discontinued
operation -- -- (2,625) (.59)
Net earnings (loss) $ 408 ~ .10 $ (1,722) ~ t.39)
Weighted avg. number
of shares outstanding 4,276,000 4,440,OD0
for the nine months ended January 31,
(dollars in thousands except per share, unaudited)
1987
1986
Per
Per
AmL;unt
share
~,7ount
s"are
Revenues
~ 56,337
~53,1Z0
Earnings from
continuing operations
1,161
~ .27
1,142
$ .25
Lass from discontinued
operation
--
--.
_(3;16D)
-t .70)
Net earnings (loss)
~ 1,161
$ .27
$ t 2,018)
~ (.45)
weighted avg. number
of shares outstanding
4,345,000
4,480,000
fT
Contact: Yaro Inc., Dallas
Jim Gero, 214/487-4101
By
The Fogleman Co. Inc_, Dallas
Bob Schwaller or Mike Fogleman, 214/691-4161
800/527-5201 (outside Texas)
LEVEL 1 - 2 OF 5 STORIES
Declassified in Part =Sanitized Copy Approved for Release 2012/08/20: CIA=RDP89G00720R000700960005-4
 Declassified in Part - Sanitized Copy Approved for Release 2012/08/20: CIA-RDP89G00720R000700960005-4
Services of Mead Data Central
PR Newswire, February 18, 1987
February 18, 1987, Wednesday
DISTRIBUTION: TO BUSINESS DESK
LENGTH: 788 words
HEADLINE: VARO ANNOUNCES RESULTS
DATELINE: DALLAS, Feb. 18
KEYWORD: VARO EARNINGS
BODY:
DALLAS, Feb. 18 /PRN/ -- Varo Inc. iNYSE: VRO) today
reported 1987 third-quarter earnings per share of 1D cents, compared ~
with 20 cents a share from continuing operations for the 198b
third quarter.
Jaf~es F. Gero, chief executive officer and president, said
the company expects to report " in excess of SD cents per share " fo r
the fourth quarter ended April 30, and meet its goal of more
than doubling its 198b earnings per share of 38 cents.
Revenues for the year ended April 30 should increase by
approximately 25 percent over fiscal 1986's 875.4 million, Varo said.
Far the nine months ended Jan. 31, Varo earned 27 cents a share,
compared with 25 cents a share from continuing operations for
the comparable period of fiscal 1986. Revenues for the nine
months were $56.3 million, compared with `653.9 million for the
first nine months of fiscal 1986.
" We will ex~;~erience d significant increase in revenues in the
fourth quarter of fiscal 1587, resulting from missile-launcher
shipments and night-vision-equipr~ent shipments under the U.S. Army's
omnibus procurement contract, " Gero said. " Historically,
the nature of Varo's contracting business causes these significan t
quarter-to-quarter fluctuations, resulting in erratic quarterly
performance.
"However, the company's increasing volume of production and
delivery on more than 8300 million in U.S. Army omnibus orders for
nig ht-vision equipment should help smooth out these peaks and valleys
in coming years. But as long as we are involved in missile-launcher
contracting and similar businesses, we will always be subject to
these fluctuations, " Gero said.
During the third quarter, Varo delivered 37.9 million in Arn+y
night-vision equipment, and also completed delivery on 82 million in
nig ht-vision contracts for foreign countries. The company delivered
an additional 82 million in autamatic test equipment for missile-
launcher systems.
Varo's funded backlog at Jan. 31 was 8166.1 million, of which
approximately SD percent will be shipped over the succeeding 12
months. This compares with a Jan. 31, 1986, backlog of 394 million
from continuing operation. Since the close of the third quarter,
Varo announced an order for $5.6 million in LAU-7 Sidewinder missile
launchers for the U.S. Navy.
Based in a Dallas suburb, Garland, Varo is a manufacturer of
night-vision systems with military and commercial applications,
guided-missile-launcher systems, high-reliability power supplies,
Declassified in Part - Sanitized Copy Approved for Release 2012/08/20: CIA-RDP89G00720R000700960005=4 ~`?
 - Declassified in Part - Sanitized Copy Approved for Release 2012/08/20: CIA-RDP89G00720R000700960005-4
Services of Mead Data Central
LEVEL 1 - i OF 3 STORIES
PR Newswire
January 16, 1987, Friday
DISTRIBUTION: TO BUSINESS AND ASSIGNMENTS DESKS AND CALENDAR EDITOR
LENGTH: 241 words
HEADLINE: NEWS ADVISORY
KEYWORD: ELECTRONICS ASSOCIATION MEETING IN DALLAS
PAGE 1
BODY:
Under Secretary of the Army James R. Ambrose will be in Dallas on
Tuesday, Jan. 20, to discuss current issues in military procurement ~
at a Texas Council dinner meeting of the American Electronics
Association t AEA) .
In a speech entitled " Toda}f's Procurement Policies and
Tomorrflw's Procurement Plans, " Ambrose will examine trends in cost
can trals, quality control and contract enforcement and its impact on
local companies. Nis speech will begin at 6:3D p.m. at the Sheraton
Park Central Hotel located at Central Expressway and the LBJ
Freeway. Cocktails and dinner will follow.
Ambrose was appointed Under Secretary of the Army by President
Reagan in 1981 and has been responsible far significant changes in
the Army's procurement policies and procedures. His efforts have
brought about increased discipline in cost controls, contract
enforcement and testing rigor.
The American Electronics Association is the nation's largest
electronics trade association and has been a leader in the mavement
to foster U.S. industrial competitiveness. The Texas Council is one
of 16 councils nationally. It serves Bare than 140 electronics
manufacturers and software companies throughout the state.
The public is invited. Ad~aission is $35 far members and >640 for
non members. Far reservations, call the. AEA at .214-437-9222.
CONTACT -- Nike Fogleman or Bab Schwaller of Fogleman Company,
214-691-4161 , for the AEA.
LEVEL 1 - 2 OF 3 STORIES
PR Newswire
Septes~ber 16, 1986, Tuesday
DISTRIBUTION: TO BUSINESS DESK AND EDUCATION EDI70R
LENGTH: 523 wards
OAT ELiNE: RICHARDSON, Texas, Sept. 16
KEYWORD: TEXAS AEA RAISES $2 MILLION FOR ENGINEERING FELLOWS
BODY:
RICHARDSON, Texas, Sept_ 16 /PRN/ -- The Texas Council of
I~? !~ v s ~. ~