DEAD LETTERS IN SAL [ ]

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP80-01601R000800050001-1
• Release Decision: RIPPUB
• Original Classification: K
• Document Page Count: 14
• Document Creation Date: December 9, 2016
• Document Release Date: November 7, 2000
• Sequence Number: 1
• Publication Date: January 28, 1972
• Content Type: MAGAZINE

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When Britain pulled out of Rhodesia after the 1965 Unila
the CIA worked to ferret out details of the sanction-buss
In the popular, traditions of spying, secret documents disa
were used to convey messages in invisible ink. It was a shock
one of the informers was a prominent lawyer. But it was not
the CIA had expanded?into an area where the British were una
active in Egypt, Iran and Syria. E. H. COOKRIDGE ends his
h D Rihd Helms
and looks at teirector,car
-r.~e?4--....ate.--~s!
i ''L\-~
recruited to CIA from
British Other CL
law offices and univer- B
h sanction policy became
i
i
,
s
r
t
sities had gained their
lar offices and SIS men were were Cal
consu
spurs in London, where they were sent supposed to watch the steady flow of former A
to glean some of the methods of the Rhodesian pig-ir.n, tobacco, and other Francis 1'
British Secret Intelligence Service. products through the Portuguese ports who had
Dulles enjoyed making wisecracks of Lorenco Marques and Beira in East cloak-anc
about the Victorian and Indian Army Africa to Europe and the Far East. Cuba anc
traditions still surviving in the British Merchants and shippers there had Wigant,
secret service, but he had a healthy made fortunes out of the traffic which Congo do
respect for its unrivalled experience the Portuguese were bound, by United and seve-
and great professionalism. He knew Nations resolutions and agreements the most
that CIA could learn a lot from the with Britain, to regard as illegal. Edward
f British missions Salisbury-
erations in the Middle
h about o
iti
B
p
s
r
After the closure o
'East and Africa, where its stations in Salisbury all ? information about 1957 from the State Department
were rapidly expanding. Rhodesian exports dried up at source. from 1959 he headed the East an
After Archibald Roosevelt, one of At this juncture CIA stepped in to South African section and, at the tim
CIA's foremost "Arabists", had re- assist the British. It was not merely a of his new appointment, was Statio
stored cordial relations with SIS when labour of love. American tobacco Dead in Pretoria. Among his variou
station head in London, a plan of co syndicates in Virginia, Georgia, exploits he was reputed to hav
pperation was devised for Africa, where initiated the first contacts between th
most of the former British colonies had North and South Carolina, Ten- South African government and D
gained independence, and were be- nessee and Kentucky greatly in- Banda of Malawi.
coming subject to strong Soviet and creased their production and sales to The CIA agents were perpetually
Chinese pressure. Roosevelt was still Europe when Rhodesian tobacco -journeying between Salisbury and the
in London when, in 1965, Rhodesia growers lost most of their trade Mozambique ports, and Murray was
made her momentous "Unilateral through sanctions. Traditionally, temporarily posted to Lusaka to main-
Declaration tobacco was used for cigar twin personal contact with British
which led ration to of the conflict Independence" with h t the and cigarette manufacture in Belgium, officials resident in Zambia. Mr Ian STATINTL
which
Britigh Government. Holland, Germany and Switzerland. Smith and hcabinet colleague, Mr
When these supplies dried up, Euro- J. H. and his i Howman, who looks after foreign
Teethi no better instance abothe pean manufacturers turned to Amer'- affairs as well as security and the
on ion an than the nhe of CIA hitherto SIS undisclosed ocan growers. But by and by Rhodesian secret service of the Rhodesian regime,
l exports began to flow again, by the were not unaware of the unwelcome
story of the services CIA rendered use of false certificates of origin and operations of the Americans. They
the British authorities in Rhodesia, smuggling through the Portuguese suffered them for the sake of avoiding
particularly since about 1968, ports and through Durban in South an open clash with Washington. Their
indeed, in assisting the British SIS Africa, much'to the displeasure of the patience, however, became frayed
in its thankless task of implementing Americans. when it was discovered that secret
the policy of economic sanctions Thus, obliging the British and help- documents had disappeared from the
against the Smith regime,'CIA put its ing American business, CIA ordered headquarters of the ruling Rhodesian
relations with the Portuguese in its agents to ferret out the secrets of the National Front Party. Subsequently,
jeopardy. It has an enduring under- sanction-busting schemes devised by
standing with the Portuguese Govern- Mr Ian Smith's regime. Soon the CIA
ment and its PIDE secret service on station in Salisbury was bustling with
many aspects: NATO security, anti- activity. Since 1962 it had been headed
communist operations, the use of radio by Richard La Macchia, a senior CIA
stations in Portugal and her colonies, official, who had joined it in 1952 from
and of bases fort U-2 spy planes c
and Special Forces i' p Q d aTto ,1~ };~ 'A fi -RDP80-01601 R000800050001 -1
bique and Macao. However thin the the U.S. Development Aid Agency. Continued
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 STATINTL
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STATINTL
DWN
O
? YW
A CONFIDENTIAL WASHINGTON REPORT SUPPLIED ONLY TO LIBERTY LOBBY PISTcA
THUNDER OVER THE POTOMAC
April 1970 STATINTL
ve thee Nation's capital, the Potomac is a narrow
b
o
Falls, a few miles a
Great
At
and winding between its palisades as seen from
i
i
ng
st
ribbon of water tw
shining
i
20,000 feet. It is here that the great process on of mighty thundering jetliners
ng to a
rd National Airport. It is challenging
w
d t
a
o
their descent as they hea
begin
corridor above the river, where he is require
tin
i
g
s
pilot to keep in the narrow tw
of his aircraft is unwelcome to the residents
to remain because the thundering roar
of the District of Columbia and Virginia on the land below. Apparently the resi-
dents of Georgetown in the District of Columbia have more political influence, for
ir complaints pilots make sure that when they stray from over the
h
f
e
t
as a result o
river, it is on?the Virginia side. As the planes thunder over Langley, Va., pass- STATINTL
hea massive adquartershofethebuild-
imposing complex,
lots--the office
engers loolk out unt bean-shaped a parking tremendous
ing with two gigantic
Central Intelligence Agency (C.I.A.). Isr' -
MYSTERY FOR A SHROUD
Intelligence is generally thought of as a cloak and dagger hush-hush business,
shrouded in mystery, and much is made of how secret the C.I.A. operation is. But
the iceberg has a big tip--the building in Langley, the recruiters on college cam-
puses, and operations such as the U-2 overflights of Russia, and the Bay of Pigs
invasion of Cuba.
Most people recognize the need of governments for'accurate intelligence, necessary
for the protection of their nationals. Things that are really subject to question
by the layman are the concept of this operation being.a world wide network, com-
puterized, and mass-produced with a massive bureaucracy, and the quality and orien-
tation of the personnel involved. Of course, the size of the budget to sustain all
this should be a justifiable question for taxpayers. This is particularly import-
ant as the budget of, the C.I.A. is secret--even the Congressmen who vote the funds
are not supposed to know the amounr of the agency's budget. The allotments are con-
in appropriations for othe+ .:,;encies of government. If, however, the C.I.A.
gets the reputed amount of $4 BILLION a year, and this amount can be hidden in the
budget, it would certainly cause taxpayers to wonder if the federal budget is not
leakier than the New York City water system.
One thing is certain--anybody who recruits on college campuses should know what he
- .is.hiring--for the students who get honors these days are those who please their
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Ont.AH014A CITY, OKLA.
TIM STATINTL
E - 109,682
AR 2 3 19.70
ILA
?nr rise! We Spy, r1q" EM
By George Wellea' are in northern Italy to
` SPYING is a dirty trick help slow down any Rus?
.done only by enemy coun- N`0 I ? sian strike from Hungary
tHes. Nations that feel !, . through the mountainous
"Llubjana Gap" - the
neutral, or friendly toward very type of invasion the
each other, never sneak
Yugoslav army arrayed it-
looks into each other's cel-
self to resist after the fall
tars. of Czechoslovakia.
This gentlemanly but
never very real code of in-EGYPT'S spy is an ex-
ternational conduct has Italian officer, 50-year-old
suffered three more r e g i m e to have been Carlo Biasci, a long trust-1
breaches so far in March, snooping into its economic ed research executive in
making it look more than secrets, trying to find out the planning office of the
I ever like a has-been. They. .how Rhodesia survives the naval shipyards at Mental-,
piled up as follows: U.N. embargoes. cone, near Trieste.
-Tito's Yugoslavia, an In the Yugoslav and The Egyptian who hired
"unaligned country" and a Egyptian cases the spies Biasci was Col- Hamil Mo-
heavy recipient of Ameri- were nailed in Italy by hammed Hamy, an air and '
' 'can aid, was caught spying Italian counterintelligence. naval attache at the Egyp-.
on American missile bases Guido Giol, a 37-year-old _tan embassy since 1967.
It-
In northern Italy. antiquarian of northern It- The U.S. role in the Rho- sly, was caught by Swiss design spy case is still not
--TIES UNITED Arab police smuggling a Tinto- altogether because
.? clear, because
Republic, another of the retto painting -across the a sp case
publicly "non-aligned" na- line at Lugano. When the ? of what London's Dail
tions, was caught for the Italian police took up his Telegraph terms a "secret.
second time spying 'into case, they found that he ' deal" between Washington
NATO secrets of the build had been spying as a side- and the Ian Smith govern.:
ing of warships in Italy. line, selling information ment, to protect the CIA.
-The United States 'hay- about the American mis- The deal was blacked ;
Ing closed its cOnsula.te in sile detachments in Vicen- out by Rhodesian censorr
Rhodesia in the. game, at za to Tito's secret police., ship until Secretary of
racial. freedom, was `re-..; The arrest had its irony 'State William P. Rogers,
the breakway . the Americans who e n t I r e 1 y omitted
vealed ~' Southern Africa on his At-
rican tour, closed the
American consulate. To,
'the Rhodesians this move.:
was a broken promise.
ROGER NICHOLOSON j
and Trevor G a 11 a h e r, 1/
iwhose nationality has not
e been revealed, were con
L victed behind closed doors
In Salisbury a few weeks
ago.. of having sold Rhode-
a I a 's embargo-breaking
economic secrets to an;
'unknown power." The
"power was identified unof- I
fictalIy as the United
States.
The alleged spies, hav-1
Ing named their CISo-be
tween, were released after'
a few weeks in jail. The
Rhodesian claim is that
the state department, in,
~, return for the hush-up, i
-' agreed not to break off with)
50
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PASSAIC, N.J. STATINTL
HERALD-NEWS
E - 80,569
1970
International. Spying: Dirty Game
But It Is Practiced Even by Friendly Nations, By GEORGE WELLER what London's Daily Telegraph terms a?',
Chicago Daily News "secret deal" between Washington and.
SPYING is a dirty trick done only by the Ian Smith government, to protect the] r t)
enemy countries. Nations that feel ncia? CiA.,,,,,r
tral, or friendly toward each other, never
sneak looks into each other's collars. TllE deal was blacked out by Rhorle?
This gentlemanly but never real code sian censhorship until Secretary of Stale
of international conduct has suffered William P. Rogers, who entirely' omitted
three more breaches so far. In March, southern Africa on his African tour,
making it look like more than ever like a closed the American consulate. To the
They piled up as follows: Rhodesians this move was a broken,
has-been
.
Tito's Yugoslavia, an "unaligned corm- promise. }
try" and a heavy recipient?of American Roger Nicholoson and Trevor Gallaher, J
aid, was caught spying on American inis? whose nationality has not been revealed,
site bases in northern Italy. were convicted behind closed doors In'.
The United Arab Republic, another of . Salisbury a few weeks agq of having sold
! the publicly "non-aligned" nations, w.'s Rhodesia's embargo-breaking economic
caught for the second time spying into secrets to an "unknown power." The
h
e;
NATO secrets of the building of warships power was identified unofficially as t
in Italy. United States. q7
The United States, having closed its The alleged spies, having named their .,~
consulate in Rhodesia in the name of ra- CIA go-between, were released after a??.
cial freedom, was revealed by the break- few weeks in jail. The Rhodesian claim is
way regime to have been snooping Into that the State Department, in return for .
its economic secrets, trying to find out the hush-up agreed not to break off with
how Rhodesia survives the U.N. em- Rhodesia, despite pressure from black
bargoes. Africa.'
In the Yugoslavia and Egyptian cases Like Rhodesia, Yugoslavia is seeking
the spies were nailed in Italy by Italian ? what looks like revenge. They immedi-,
counter-intelligence. ately sentenced to five years in jail, in an
Guido Giol, a 37-year-old' antiquarian inaccessible court in Nish, Macedonia,,
of northern Italy, was caught by Swiss 98-year-old. Vzonko Ivanovic, who was
police smuggling a painting across the accused of espionage,work, from Trieste,
line at Lugano. When the Italian police for "a foreign intelligence service."
took up his case, they found that he had
been spying as a sideline, selling inior-
mation about the American' missiles de-
tachments in Vincenza to Tito's secret,
police.
THE arrest had its irony because the
Americans are in northern Italy to help
slow down any Russian strike from Hun-
gary - the very type of invasion the Yu-
goslav army arrayed itself to resist .after'
the fall of Czechoslovakia.
Egypt's spy is an ex-Italian officer, 50-
year-old Carlo Biasci, a long trusted re-
search executive in the planning office of
the naval shipyards at Monfalcone, near
Tneste.
The Egyptian who hired Biasci was
Col. Hamil Mohammed Ilamy, an air and ,
naval attache at the Egyptian embassy
since 1967. He used an Italian courier for
the embassy to smuggle plans purloined
by Biasci from Trieste to Rome.
The spy's apartment in Trieste yielded
a fascinating price list of what the Egyp?',~
tians would pay for specific documents,
presumably based on what Soviet inteili-
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The U.S. role in the Rhodesian spy case
is still not altogether clear, because of
 STATINTL
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1 5 MAR 1970
RHOREE'SIA
L u p Man i Salisbury' Exits
As Washington's ;Man in Salis- it was accredited to Britain. But
bury, W. Paul O'Neill Jr. led a when Rhodesia unveiled its own
hermitic existence after Rhodesia constitution and declared itself a
broke away from the British Crown republic, it severed all remaining
in November, 1965. , ties with Britain. Maintenance of
His rank was eventually reduced the U.S. consulate would have
from consular general to consul and
his staff shrank from 27 people to constituted a degree of recognition.
six. "At last we have a decision,"
But black Africans-as well as the O'Neill said. "It's been a long wait."
British-pressed for , a complete The Rhodesians, of course, accept-
break from the white minority ed the decision with less equanimi-
regime of Ian Smith. Last week, ty. Smith's government was said to
they got their wish. Secretary of have been surprised.
State William P. Rogers, fresh from Some observers believed that
a tour of Africa, announced that the Washington had agreed to retain its
United States was closing down its mission in Rhodesia in exchange for
consulate in Rhodesia, . effective tie release earlier this year of two
Tuesday. alleged CIA agents, convicted of
Until recently, Washington had passing economic secrets. However,
contended that the Salisbury mis- the deal reportedly fell through
sion was justified on the ground that when the arrest of the Americans
was made public.
Rhodesia's ultra-right wing party,
.the Republic Alliance,--commented
that the only positive aspect of the
United States' withdrawal was the
removal of. "what is widely believed
to be a spying agency."
As Salisbury feared, Washington's
move was followed by similar deci-
sions on the part of France, West
Germany, Italy, Norway, Denmark
and the Netherlands. Nevertheless,
Rhodesia is growing accustomed to
isolation.
Under the United Nations-imposed
embargo, U.S. trade with Rhodesia
plummeted from $33 million in 1965
to $1 million in 1JG9.
The sanctions have hurt. Unem-
ployment (especially among the 5
million blacks) is high in the former
British colony. But the economy is
reasonably stable. Trade has been
rechanneled through middlemen in
friendly South Africa and the Portu-
guese territoiy'of Mozambique.
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TI Ec0 c:aST STATINTL
14 - 20 mar 1970
he COfSU 4 C, Vp -mss
Somewhat unexpcotedly the Secretary of
State, Mr Rogers, announced on \, onday
that the 'United States will close its con-
sulate in Rhodesia. Officials in- the State
Department had long :ulwwated this
move and Mr Rogers come to share their
view after leis recent tour of ten African
countries. During the tour he was par-
ticularly impressed by President Kaunda
of Zambia who urged the closure of the
consulate, as did the consul himself, Mr
Paul O'Neill, who saw Mr Rogers in
Kinshasa. But President Nixon was under
co rater-pressure to keep his consulate
open, both from southern Senators and
from business i:.,. rests which have invest-
ments in the :' ..odesian chronic mining
industry. Mr Kissinger, the President's
chief adviser on foreign affairs also
favoured staying on, according to reports.
But when Mr Ian Smith declared his
republic, the final break came as a matter
of principle and as a gesture of sympathy
to black Africans-and to Negroes and
liberals at home.
America's withdrawal is a slap in the
face for Mr Ian Smith's government
because so much had been made of the
consulate's continued presence. Though it
did not represent American approval of
the reginme-just as Britain's mission in
i Ianoi does not imply support for North
Vietnam-it was interpreted as a measure
of recognition. The closure was
announced the day before an emergency
meeting of the United Nations. Security
Council on Rhodesia, This was then post-
poned but it might have passed a motion
asking all countries to withdraw their
missions ; this would have caused the
Americans some embarrassment.
The saga of the consulate in
Salisbury has not been without elements
of melodrama ; it was widely believed
that an American promise to keep it open
had been extracted in exchange for
Rhodesia's release of two journalists, con-
victed of spying, supposedly for the
Central Intelligence Agency. Whatever,
the deal, the closure of the consulate is a
psychological defeat for Mr Smith. But
trade with the United States has been
practically non-existent since sanctions
were imposed. And of the 1,200
Americans in Rhodesia, goU are mis-
sionaries and well able to look after
themselves.
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loses o S~. ~ e-~? an prestige
l,v Peter Nieswand in Salisbury'
;?, i:;;;. r nl l;i?.;'r in air declaring: "I odesi'r11s
assured may rest this course was President Nixon's
~,'?:i~~ < ~; f,l,~aic .i:u; Tic;u.:h!i: i; that the closure ut the
consulate general will m.rke no chKiss. When Mr Wilson iefngollitical adviser, Dr Hs [ry
~'. ? t?t'n VVC imilaictu difference at all to Rhodesia o1- to
Z7 :lie \ rcrnt3lni:tg, ttto-the
t itt Portuguese
--will t:Jrtnst ce?r?r.air.?v continue
op. ratc;g norm::thus keepin
open tae i.ir~,hed chub: els
uhi:h hr":;; *',e sanctions.
republic rnoe e~. isto
rr,,tc r isc?.:.r...n, Rl,iodesibn Euro-
;.e:,nS--in;l;idinf off:C?iFilsciur(es-
+re s::r},: ised ,,TCI cii:,a f,pointed at
:.he h:rr, Cl ,everts. It had been
taken for granted that the United
State's C;;n:;ulatc, General would
c.?r,tiruc :?aFrating normally. and
this cunsi.k red an important
feu; hrr in, Rhn,i~: i s Cap.
N+;W tT:t.; i* Si r ll;r( vS hero
hc?.?~ ;n~ nr-ter .::,.:I J rtt,sa
;~i E'>t4i?? ,:: Wr7r:. rca??ge,t on a
rn,,dr i:,st v(-;;r w 0h Mr
Sm;rh'~. drr.;r: -;ri,?, ?n A -c?rding
t: uu suiir^e~. efts' t~eo sun, bunsN-
pics. t,ogcr Nicholson and Trevor
(.t:~her-??c?ho were Ccnh'ai Intel-
;..;' e ,lgcncy :ig(lnts, --were
feed fru:tt tia!i bore }:ri::un in ex-
change fur .,;i undertaking that
the United States mt~sion would
remainopen.
Rhodesia'!; ulyYa Right-wing
}::,rty. the (tefx;bj?can Alliance,
};u: the that a1?tcs cif many people
i :to words. In a statemer this
s'eek' thr parts %icetpresident.
..,,r Robin ?f .:,:: said that the
cni} redeen feature of the
American yr rira's?a1 was the re.-
rnoval of "al.,; is ?,videly believed
ulr uiana public exterior, Mr `?wu uuylelamg.
Smith's Government is concerned There appeared to be leeway in
about Rhodesia's increasing isola- she timetable for the Americans, Smith tion. The presence of foreign republic r would hnotscomeauntil'
helpIo create the the? impression does October.
hermality, and brims Mr Smith's gamble nearly paid
off. On his side in the Washington
one small step nearerR official
recognition. Power game was the considerable
However, from an economic point i "white lobby" of Southern sena-
of view, even if most of the remain- tors, ho Birch Society,
ing Western Governments repre- I Friends of Rhodesia, and other
sented in Salisbury decide to with- grFace.
draw, Rhodesia will not be faced Faced with the fact that the
with a particularly serious situa- British UN delegation was going to
tion. take a hammering, the US Secre.
The bulk of the trade which tart' of State was at last able to
breaks the sanctions is conducted argue with Mr Nixon that the
through' middlemen in friendly time had o.':r..acthet odecision
South Africa 'Ind the Portuguese that coul ld take the hea heat off the
territory' of Mozambique: As Mr British Government-and the US
'legate..
S
mith,
aid recently: "Officia} reeog=
ninon is of little or no co
nsequence
under these circumstances."
On Tuesday, a coded message
from The Hague informed the
Dutch consul-general, Mr Tadema
Wielandt; that the Netherlands
had decided to withdraw from
Rhodesia. The Italian consulate-
general in Salisbury is also under
orders to withdraw. This was an-
nounced by a Foreign' Ministry spokesman in Rome, although in -
the Rhodesian capital, the Italian)
mission first learned the newsl
from agency reports
to b;? a s;:yin E nC'y. ...-sale decision appears writes: The US
Jc:m+r: v nt on: "It is puss- Policy victory to be a major
.ot,abk' w1 c:1101. the: release of ! mentoverMNixothe n s Wh1'te House,`
Xic?h,tlsnn .,n(: Gal,'aher. in what advisers.
r Prir u ' .ir. istr r described as a It had become an open y i
r;c::l' hap 1; it r?tsulted in a double last autumn that America's Sec re-
MSS tary of State, Mr Ro
ir: an ob loos attempt to allay ,become convinced of theewisdom'
fe:.; s.:lir Smith's Ministry of P:x- of shutting the US consulate, and,
e?rr,:,1 Affairs issued a statement.t'hatthe man who was resisting
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THE GUARDIAN
10 Mar 1970
Nix~~ breaks `deal'
on freed spies
From our Correspondent, Salisbury, March 9
The American decision to
withdraw from Rhodesia has
surprised-and in some cases
shocked-observers here. It
had been widely felt that the
United States would remain
represented in the country.
regardless of the declaration
of a republic by Mr Smith's
Administration.
Indeed, it was understood
that the Americans and
R odestans had agreed to a
ea1, in which the two sanc-
tions spies, Trevor Gallaher and
Roger Nicholson-believed to
have been CIA agents-were
released from Salisbury gaol on
condition that Preadent Nixon
maintained , the Salisbur7?
mission.
Observers point out that ?this my conflate open.
STATINTL
alleged deal depended on
America being shielded from
publicity--which in the event,
was not the case.
The American consul-
general. Mr Paul O'Neil. has
telephoned the other nine
foreign missions in Salisbury
to tell them officially of his
impending withdrawal but it is
not expected that other govern-
ments will automatically follow
the American lead.
The West Germans have
been in consultation with Bonn,
and word on their future is
expected soon. The French
acting consul-general, M.
Michel Galas-who arrived in
Rhodesia at the beginnin N of
the year. commented : As
long as?as I have not received
word from Paris, I will keep
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IDV .RTISE
MAt,10 197(7
H - 70,135
Ap~rtur~
+~uns Riwdesia,
overanlaent
The Manchester Guardian
SALISBURY - The United States' decision to withdraw its
consulate general from Rhodesia has surprised - and in some'
cases shocked - observers here.
It had been widely felt that America would remain repre-
sented in the country despite the government's declaration of a
republic last week. It was believed that Washington had
agreed to retain its mission here in exchange for the release of
two alleged CIA awe is convicted of passing economic secrets. V
INFORMED sources claim, however, that this deal was con
tingent on America's being shielded from publicity, which it
was not.
The opposition Center Party said last night that the closing
of the consulate-general here "confirms that the outside world'
still takes a serious view" of Rhodesia's status. The statement
We .:.:.. fi,........... J. T:: '+., n .... J~?~~F.vJli J.. `'R' w}:Y,.:::F.:. ri. .
WASHINGTON (UPI)-Secretary of State William P.
Rogers said yesterday the United States, supporting Its belief
that Africa should be governed by Africans, would close its
consulate in white-ruled Rhodesia March 17.
He said the decision is the result of the Rhodesian govern-
ment's severance of Its last ties with the British crown.
Black African nations strongly urged the U.S. move during
Rogers' recent African tour.
Rogers, during his two-week African trip, found the stx
black African nations he visited unhappy over the continued'
presence of the U.S. consulate in Salisbury. They felt this im-
plied U.S. approval of the white Rhodesian government.
called for Rhodesians to "reinstate ourselves in the eyes of the`
world . . . this can only be done by demonstrai.in that there
remains in Rhodesia a spirit of racial cooperation.'
THE GOVERNMENT has refused to comment on the U.P.
announcement.
The American decision is not expected to lead automatically
to other withdrawals, although some countries are reconsider-
ing their policy toward Salisbury.'l'he West German embassy
here has been consulting with its government and word on Its
future is expected shortly.
American consul Paul O'Neill has already telephoned the
other nine foreign missions in Salisbury to inform them offi-
cially of his impending departure.
"AT LAST we have a decision," O'Neill said last night. "It's
been a long wait."
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GLU3: .Dc ,uOCRAT
i yfl '41"16 - 3fTh.59b
pc=tc~:rD - 9-,001
PE D 71970
CIA Suspected
in Trade Spying
. I t
THE REASON for this, ac- 1
cording to the magazine ac-1
count, was to give the Rhode-
On Rhodesia' sian white public a dramatic
case history explaning whyl
By EARL W. FOELL , emergency police state powersi
Globe-Democrat-Ios Angeles Times News Service '; were needed by the Smith re-1
' UNITED NATIONS - Two spies who came in. from the heat i gime - while at the same time:
% have aroused interest among African specialists here. not affronting the American )
The spies are John Roger Nicholson and Trevor Galaher consulate, which Smith urgently
i? convicted by the Rhodesian government in late December for wants to keep Washington from,
"economic spying." then released on Jan. 15. closing.
S
Among knowledgeable African -,, The white-supremacist Rhode Continuance of the U.S. can.
analysts the belief has grown + siThe wime discovered that the salute in Salisbury has'taken on,
that the two men performed es- two well-placed men were pro- considerable symbolic impor-'
pionage on behalf of the State viding detailed information to tance in.Africa. Black African
'Jr'Department a n a pernaps mr.
I the U.S. consulate in Salisbury. nations - and the British gov
....
A.+a11. m nrs A ,en.V \
Earlier South African and Brit- That firms sere cola wnat fur-1 ernment - consider it an of-'
ish news stories to that effect eign firms were circumventive front to their effort to topple'l
it N trade sanctions against t}tei 1
l
by the Rhodesian regime ear
y THE INFORMERS provided' A m e r i c a n businessmen who'
in January. photostats of bills of lading and, want free trade, particularly in.
But the hasty release of the other documentary evidence of - chrome ore - argue.for keep
two men, without explanation, illegal shippings. ins the; e o a s u 1 a t e:opa, and I
and their quick departure from. As a result of part of this
! the Salisbury heat to cool free-'
dom in London only confirmed' formation - purportedly passedl
-
the analysts in their view that,, along from Washington to Brit
the men were involved in pass- ? . ain and the United Nations -i
ing trade secrets to American the Brititish metal manufactur-1
officials. ing firm of P I a t t Bros. was'
brought to trial last year for fl-1
GALLAHER, a noted Rhode- legally trading with Rhodesia.'
sian lawyer who had acted as Platt Bros. was convicted ands
an adviser to Smith's Rhodesia- heavily fined. This was widely
front (and, like Smith, served , construed as a kind of warnings
as an Air Force man during to other British firms temptedi
World War 11), was sentenced to circumvent the London tradel
to four years at hard abor.1, boycott. i
Nicholson. financial editor of'' If other erstwhile traders be-i
the Rhodesia Herald at the timed came worried that their maneu-1
of his arrest and previously an; vers to avoid the boycott would'
opposition member of Parlia- be exposed through clandestine
ment, was sentenced to 18 reports from Salisbury, the laid
- months at hard labor. Their' Smith government of Rhodesia'
current whereabouts are not 'would o b v i o u s l y suffer newt
known. trade complications at a time
An account from a Salisbury when it had s u c c e s s t u l l y;
journalist in the February issue learned to circumvent thef
of the magazine Africa report U.N.-imposed boycott.
gives a circumstantially de- 'So the two men were brought
tailed story said to be "known. to trial, separately, with consid-i
to a handful of local senior jour- erable local fanfare. But there .j
nalists" In the Rhodesian caps was a strange lack of detail as,
tal. I to just what nation had received`:
According to this account,; ' the results of their spying. All)
backed by a e v e r a I American, emphasis was placed on "the'
and western European African treachery of economics by
experts here but still denied by g tt g f
State De rtment officials the mation to our enemies In the,
0 of
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 Guardian
Approved For Releal"9014 O 3 CIA-R
STATINTL
CIA working in Rhodesia
In December, the Rhodesian government of Ian Smith arrested On Jan. 16,. 1970, guerrilla units of the African National
and convicted two men for violations of the Official Secrets Act.Congress (the major liberation movement of South Africa) attack
John Nicholson and Alfred Gallaher, an attorney, were convicted ed the ,air installations at, Victoria Falls in western Rhodesia.
of passing on or' making available economic information to the Ofher guerrilla actions were directed against South African "pos.
"enemies" of the Rhodesian state. It has been recently lice", units. South. African Army and Air Force units have been
,disclosed by the Johannesburg Sunday Times that both men were -'operating in ,Rhodesia for over' two years under. the "police"
employed, by the U.S.: Nicholson by the CIA, Gallaher by the. cover, arldwform the nucleus of Rhodesia s military forces
ti
hi
f
h
s
e sop
t
State Dept. This information gives indications o
cation with which corporate-governmental imperialism operates
in Southern Africa. !I
After the disclosures that the two men had been working for
the U.S., the Smith regime announced that the men had been
released and flown immediately to London. At the same time, the
Smith government- announced that an "agreement" had been
reached-with the Nixon administration in exchange for the release
of Nicholson and Gallaher. The terms of the agreement have not
been made public but one of the following is suspected: that the.
Nixon administration agreed either to maintain the U.S. consular
office in Salisbury (there have been several recent attempts to get
the administration to close the consulate since the U.S. does not
recognize the Smith regime) or to renew the purchase of chrome
from Rhodesia. Buying -Rhodesian chrome Is forbidden by the
'
? .
.UN sanctions against Rhodesia.
rao
Friendship with racism
Rhodesia [Zimbabwe] where Smith's racist government. repre-
senting the white population of 241,000 exploits and represses
'the African population of 4.5 million, is viewed with anger and
hostility by progressive peoples throughout the world.
But how can the U.S. State Department and the /CIA be
considered "enemies" of Rhodesia? Obviously, they and the
corporate .ruling class in America, whom they serve, are friends of
Rhodesia, not the reverse. Then -why are CIA elements digging
into the country's economy?
Rhodesia has the largest chrome ore reserves in. the capitalist
World. Union Carbide Corp. and Foote Mineral Co. (Extron, Pa.) .
control most of the chrome ore production in Rhodesia. As U.S.
chrome ore reserves continue to dwindle, it becomes increasingly
clear that America's industrial giants are dependent upon. Rho?
desian and Soviet ore supplies. However, despite the attractions.
.which Salisbury holds for the Nixon administration (racism, anti
communism and raw materials), the U.S. has been unwilling to
offer Rhodesia unqualified support. The managerial elites and'
policy makers would have prefered an "independent" black Rho-
desia to the present system of minority rule. U.S. strategists are.
well aware that the prospects for future stability and neo-colonial
exploitation of the subcontinent are endangered by the irreconci-.
liable contradictions of racist domination. U.S. policy makers are
therefore operating on a multi-faceted strategy designed to con-,
solidate and expand U.S. influence and penetration without re-.
,quiring direct-support for minority rule. This opportunistic policy.
requires that the U.S. offer symbolic support for the Smith
iregime' (by maintaining the U.S. consulate in Salisbury), while,
also using this facility as an Independent information gathering
agency of the CIA to provide critical economic and political
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 STATINTL
LOS AI~'QLLES TIMES
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U.S. Link to Rhodesia
Trade Spy Case Hinted
2 Men Freed Jan. 15 Performed Economic
Espleage for State Dept., Analysts Think
BY EARL W. FOELL
Times saes writer
UNITED NATIONS _ issue of the New York when it had successfully I k e e p i n g , the consulate
Two spies who came in based magazine Africa Re- learned to circumvent the open and abandoning
port gives a circumstanti- U.N.-imposed boycott. I sanctions.
fro m t h e h e a t h a v e ally detailed story said. to So the two men were Most analysts dealing
a r o u s e.d sharp Interest be "known to, a handful of brought to trial, separate- with Rhodesia and the
among African specialists local senior journalists" in ly, with considerable local sanctions questioned here
here. the Rhodesian capital. fanfare. `But there was a are inclined to believe that
Thev are John Ro er I According to this ae? strange lack of detail as to the White House will pro-
g just what nation had re- bably leave the consulate,
Nicholson and Trevor Gal- count, backed by several ceived the results of their o p e n, despite London's
laher-convicted by the American a n d Western * spying. All emphasis was longtime displeasure. And
Rhodesian government in European, African experts-, placed on. the treachery this probably will mean
late December for "eco- here but still denied by of economics, by passing that all other countries
nomic spying," then my%- State Department offici- on sanctions-busting infor- that maintain consulates
teriously released on Jan. als, the following sequence mation to our enemies in there also will keep them
15, occurred: open. Since no country in' A m o n g knowledgeable The white-supremacist the West." The enemies the World formally recog-,
African analysts the belief Rhodesian regime discov- were not named. nizes the Smith regime,
has grown that the two ered that the two well. The' reason for this, the consulates give it a
/lnen performed espionage placed men were provid- according to the forthcom- kind of semi-legitimacy.
on behalf of the State ing?detailed information to ing magazine account, was
/Department and perhaps the U.S. consulate in Salis- to give the Rhodesian
the Central Intelligence bury. That information white public a dramatic .
v Agency. Earlier South told what ' foreign films- case history explaining
African and British news were circumventing U.N. why emergency p o l i c e
stories to that effect were. trade sanctions against the state powers were needed
denied by the U.S. consu- Rhodesian government- by the Smith regime-
late in Salisbury, Rhode- and how they did it. ? while at the same time not
sia, and by the Rhodesian The informers provided ' affronting the American
regime in early January. , photostats of bills pf lad- consulate, which Smith
But the hasty release of ing and other documenta- urgently wants to keep
the two men, without ex ry evidence of illegal ship- Washington from closing.,
planation, and their quick pings. Continuance of the U.S. :
departure from the Salis- As a result of part of this consulate in Salisbury has,
'bury heat to cool freedom information - purportedly, t a k e n on considerable
in London only confirmed' passed algng from Wash- symbolic importance in
the analysts in their view ington to Britain and the' Africa. Black African na
that the men were in- United Nations-the Bpi tions - and the British
volved in passing trade tish metal manufacturing government - -consider it,
secrets to American offici- firm of Platt Bros. was an affront to their effort to
als. brought to trial last year topple the Smith regime..
G a l l a h e r , a noted for illegally trading with Backers of Smith-includ-
Rhodesian I a w v e r who Rhodesia. Platt Bros. was ing British and American
had acted as an adviser to businessmen who. want ..
Smith's Rhodesia Front convicted and heavily free. trade, particularly in,
(and, like Smith, served as fined. This was widely chrome ore -- argue ,for.
an air force man during construed as a kind of
World War II), was sen- warning to other British
tenced to four years at firms tempted to circum-
hard labor. Nicholson, fi- vent the London trade
nancial editor of the, boycott.
Rhodesia Herald at the It other erstwhile tra-,
time of his arrest and ders became worried that'
previously an, opposition'- their. maneuvers to avoid
member of Parliament, the boycott would be ex-
was sentenced to 18 posed through clandestine
months at hard labor. reports from Salisbury,
,Their current whereab- . the Ian Smith government
outs are not known. , of Rhodesia would ob- '
An account from a Salis viously suffer new trade
bury journalist to be ub- co icati ns at 'a time
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 STATINTL
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THE LONDON DAILY TELEGRAPH
19 Jan 1970
D
the dark.
"This is absolutely untrue. We
make no rical with any Govern-
ment. We have a small mission
here. We (In not engage in that
kind of activity."
1'he newspaper also clamed
that the second convicted sanc-
tions spy. Alfred Trevor
Gallaher, 63, a lawyer, was pas.
sin; information to Mr Paul
O'Neill, the American Consul.
General.
Air Smith, who was on "ex-
tended home leave" during the
trials, returned to Salisbury on
Dec. 20, a few days after
Gallaher had been sentenced to
four years imprisonment.
During the trials of Nicholson
and Gallaher, much of which
were held in secret. the court
was told that the information
passed by the two men had
been made available to the
United Nations special commit-
tee responsible for enforcing
sanctions.
me
o
s
CIA r?oIe dethed
in 5- al ctI O l 3 frai
By
CHRISTOPHER MUNNION in Salisbury, Rhodesia
AMERICAN diplomats in Salisbury last night
denied knowledge of Central Intelligence
Agency involvement in Rhodesia's two recent
sanctions spy cases.
They also denied that the Rhodesian and
American Governments had made a deal to
keep the United States out of the sanctions spy
trials. The trials, which led to the jailing of two
charges
Western
contained evidence
Power.
about agents of a
Air Smith, former American Plo,yed, such as private pn.at
Arm;; major who has been at hexes and flonrl?like rappings
likr, the apparatus for invisible
the consulate for 11 nlonlins, ?
said in Salisbury last night, writing found in Gallaher's
in 1 hung.
.. C,-
b
d.. i
Foreign accounts
Nicholson was said in court
to have the equivalent of [.9,000
in a bank in the foreign country
concerned. I understand that
this account was with the Chase
Manhattan Bank, New York.
Gallaher, too, was said to
have a foreign bank account.
This, also, was in New York.
Yesterday's disclosures are
certain to embarrass both the
American and 'Ithodcsian
Governments. Observers be-
lieve President Nixon will be
forced to withdraw, the mission
immediately.
Reports in Salisbury suggest
that the State Department knew
nothing of the Central Intelli-
gence Agency involvement in
sanclinns?spying. It is clear that
the Agency's agent in Salisbury
recruited many prominent
Rhodesians in possession of sane.
tions?busting secrets.
It is also considered likely that
this was done without reference
to senior diplomats or the State
t)eparlnnent.
" 20 more involved
Apart from Nicholson and
Gallaher, Special Branch officers
believe there have been 20 other
people in the pay of the Central
Intelligence Agency but they
have insufficient evidence to
make further arrests.
A 1t11000SIat1 tj4Vei91menr
spu1,VS11nan last ni;411 t reused to
cuniuncilt. on the reports. " I
know nothing about this," lie
said.
tnldlicl.,I ; 1114.1'14?,n, 5"nrrr.
ttrrr hl.uninl: ih,? Ilrili.b l,orrrn-
nu?nl for " leaking " the repo'tx
of American invotvennent to
force the withdrawal of the
American mission.
After the withdrawal of the
British residual mission from
Salisbury last July, the Ameri-
cans were expected to follow, but
their consulate has been main-
tained at post U D I strength.
which was regarded by the
Bhorlesians as tacit recognition
by the Nixon administration.
CIA SILENCE
Invariable rule
Olin WASHINGTON STArr
cabled: The Central Intelli-
gence Agency, following its in-
variable rule, neither confirms
nor denies the allczation of in-
volvement in sanctions spying.
Officials argued that the
closure of the American consu-
late in Salisbury was unlikely at
this time as it would seem to
amount to a confession of com-
plicity in a spy plot.
Since the departure of Sir
Humphrey Gibbs. the Governor.
from Rhodesia last June, the
State Department has been rc-
viewing the status of its con-
sulatc-general in Salisbury. The
process has been more dilatory
than Whitehall seems to have
LLlced,_ ____
My own information is that the Central
Intelligence Agency, through an agent working
from the consulate in Salisbury, recruited the
accused men to provide details of Rhodesia's
economic secrets.
There are also reports
which suggest that the State
Department and the
Rhodesian Government
agreed to withhold any refer-
ence to America to avoid
embarrassment to both sides.
I A Johannesburg newspaper
yesterday named Mr Irl
Smith, 52, Political' Counsel-
lor at the American Consulate
in Salisbury, as the " foreign
agent" referred to in the
trial of Roger Nicholson, 38,
the financial journalist.
Nicholson was jailed for 18
months under the official Secrets
Act and counter-sanctions espion-
age regulations. ?
Rhodesian security officials
know that the information pas-
sed was coded and senrto Wash-
ington. They believe it was then
handed nn to the United Nations
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