FEW BRIGHT SPOTS CIA 'MIGHTY WURLITZER' IS NOW SILENT

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP91-00901R000500010002-3
• Release Decision: RIPPUB
• Original Classification: K
• Document Page Count: 132
• Document Creation Date: December 9, 2016
• Document Release Date: November 8, 2000
• Sequence Number: 2
• Publication Date: December 30, 1980
• Content Type: NSPR

STATI NTL
SATLNITL
Approved For Release 2001/03/06 : CITA-Kuv91-009
Few Bright Spots
-
CIA 'Mighty
1/Viirlitzer' Is
Now Silent
By ROBERT C. TOTH
Times Staff Writer
WASHINGTON?The Soviets
knew the schedule of the United
States' KH-9 spy satellite to the
minute. and when it flew over the
Uzbekistan missile center every-
thing was tucked out of sight. But a
few hours later. another U.S. satel-
lite the KH-I1, passed over the
same field and caught an 'aerospace
glider out in plain view?giving this
country its first evidence that the
Soviets were making a craft similar
to the U.S. space shuttle.
In the kind of games modern spy-
masters play. the Soviets had ex-
posed the secret space glider be-
cause they had been tricked into
believing the second satellite was
electronically "dead." Among other
ploys, it. was made to seem silent.
Instead of transmitting its TV-like
pictures down to earth as other
satellites do. the KH-11 radioed its
pictures up into space?to a com-
munications satellite that relayed
them to a U.S. intelligence station
halfway around the world. (The de-
ception worked until ex-CIA em-
ployee William Kampiles sold the
operations manual of the multimil-
lion-dollar KH-11 to the Soviets,
fora mere $3,000.)
Supremacy Misleading
.Technological cleverness is the
pride of U.S. intelligence?no nation
is better at .it?and that supremacy
can be a source of comfort to the
American people as U.S. military
vulnerability in the early 1980s puts
greater reliance on intelligence to
avoid dangerous surprises.
LOS ANGELES TIMES
30 December 1980
But American supremacy in
technical intelligence is profoundly
misleading. It is not representative
of U.S. intelligence capabilities as a
whole but stands in stark contrast.
For in every other intelligence field
?human spies, analysis of data col-
lected and ability to conduct secret
operations?the U.S. intelligence
community appears to be dange-
rously deficient.
"Except for technical surveil-
lance of the Soviet Union," said one
highly knowledgeable source,
"we're in lousy shape throughout
the world." Some examples: ?
_
--Human intelligence sources
have largely dried up because of
leaks. "Some potentially coopera-
tive sources say frankly they are
afraid they might find their names
in our newspapers." one
knowledgeable source said, "and I
must say for myself that if I were a
Libyan or Pakistani, to say nothing
of a Soviet, I would not cooperate
today with any American intel-
ligence agency."
Firings, Retirements Costly
--Recent waves of firings and
early retirements cost the CIA
many hundreds of senior personnel
with unique language abilities and
regional expertise. In 1978, when
Iran's Shah Mohammed Reza Pah-
lavi fell, the agency did not have a
single regular employee who could
speak Persian. A .large percentage
of the field officers of its Neer East
division, which includes Southwest
Asia, are former employees recalled
to temporary duty, according to an
informed source.
? ?In Africa and Latin America,
the United States must rely heavily
on information supplied by British..
French and West German agencies.
But cooperation has slowed signifi-
t?busiys a
Si'e
"Then
agencies
?Coll
U.S. dip
rattly s
thirds of
cy :have
J. bus
nat
? ti-..atinti
. . ?
:tif, "CIA ana.ysts
-cneting Soviet oil production declines, one national se-
curity official said. "but they almost missed the Afgha-
nistan invasion, after watching the Soviet buildup for
six mei-Alas, because they focused on reasons Moscow
would not move?detente. Salt II. trade_
-They are biased to predict the ordinary. not sur-
prises." he said.
?The CIA's covert action capability, which once un-
dertook everything from propaganda campaigns to se-
cret wars, has been virtually dismantled.
Hostage Raid Cited
The raid to free U.S. hostages in Iran. for example,
- Would have had a better chance if it had been orlt,anizcd
and run by the CIA, according to several intelligc:rice of-
ficials as well as one military officer who took part in
the ad hoc Pentagon effort.
- -At a less dramatic level. the CIA's ability to aid insur-
.-geyA groups short of intervention is almost non -exas-
-:tent. "If we wanted to help the Afghan -freedom fight-
-erg' with guns," one source said. "there is no supply of
.
-untraceable arms, no experienced gunrunners, no trans-
- .
::por.tation assets available readily. And the Soviets knew
? Political covert action, such as planting newspaper
..?
.:stories and aiding sympathetic officials abroad. never
::was? suspended totally by the CIA. even in the Carter
:.Administration. "But it's on a piddling scale." one of fi-?
I said, ''and what's left is rather atrophied."
7Carter became angry at Cuba's continued use bf
troops in Africa after his initial overture to Fidel Castro
in 1977 for more normal relations. He ordered accounts
of Castro's activities to be disseminated internationally.
But most of the machinery for such propagandizing?
the "Mighty Wurlitzer" once boasted by the CIA?has
deteriorated into rusty silence.
Even the U.S. Information Agency resisted Carter's
orders to play up anti-Castro stories. This particularly
incensed the President and led to a minor shake-up
within that agency, informants said.
Such is the debris left from the unprecedented cam-
paigns against the intelligence and counterintelligence
agencies in the gov.ernmentparticularlY the CIA.
? .
? Brougbt on Therasel ves
To a considerable degree. the agencies brought it or
themselves with fc.e.ei;n and domestic crimes and ex-
cesses in the name of national security. As a result
powerful figures in the Carter Administration. includire
? Vice President Walter F. Mondale who served on de
Approved For Release 2001/03/06 : CIA-RDP91-arhEW .2-td CIA abuses, seerne4
e4ntelligence cornmuni
_
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STAT I NTL
CO.?..,IPARISON'S'are alrendie
;being clrawitria, Washing-
, _
tonbetweep.;-the appoint- ,
:rnent- of ..1\11=?IgiIliam .J:'
Casey = as :? CIA director -
, .
-.:funder,the ReaganAc1111141.?
stratio4i arirY t'ne; choice- of -
r lvIcCone - f or the.
-sam-e role under the
?:.,
nedya.Administration;
.:".th? men ? are ...,..shrewd- noro:
professionals -(although Mr
Caseyserve.cLivith. distinction 4
in the. Odice7arStrategic
yicesand is remembered4
ivar-
colleagues, irr 1...ondon). ?
vhose instinct:Ai:ay. prove a
surer- guide to policy tban.
'.7.-the..',conventional,wisdorns--of
established ._bureaucracy.,
NicCone's instinct told him.
-that .:Khrushcbev::: had-zsec-
.;? Feted.: missiles :in- Cuba-when?
- CIA:sanalysts- were still un-
',convinced., ..,Similarly, Mr-
Casey?-_-is unlikely - to-wpay-
..;!..'overmuch respect": - esti-:
ftmates analytical
, tbe
...Assess-
.Centrel,(iiFAC)?sug.
,gesting,!that _the -"motivation
3-,."..?foir:the,.Soviet military build...
up'. is essentially., defensive
instinct tells him. other-.
According., to. sotirces- inside -Mr -?
":-.-Beagan's CIA..:transition:
-team, :n.'? major overhaul a
.::Ac "...is expected "to be one,
Tof ,h. first consequences .of.
-aPPointrnent- The.
p-resent bead-, of:zNEAC, . Mr-
ft._Brute. Clarki=is.,xpected to.?
One leading ? contender,to take,
[ place,:. is :MrGeorge
-Carver,zrai....;; forme:. .0 I A--
--?,:sta [ion, "chief., in, Bonn, now
-based =?????at: the-:.Georgetown.
:,..:-.Centre? or-ritStrategic,.....and
--:;,-;.?International Studies. _ who'
_Reagan:s tract-
" -:sition tParn and ...!..bas=4nade
T:-.hitnself-ta-i,Subtle... and 7 engag-
:?.-?;ing.,-: commentator -.on .
Irf'atiliarallel.:deielopinent, the
'."Deferice"-Intelligence Agency
-...--(DifA)--trut.? the. :other corn-
... '.ponents 44f... Pentagon Intern:.
are:likelY.. to be. given
?';?- a -larger. Tolic.in. the' shaping!
of ? national estimates. _their
predictive .record is generally-
i,-s.?..recognised?to=have been. ninth.
L:botter; th anzatli at. of NIP A C4:
?casera id -tearnt'Faye
_.. 11A9.Ye slowly,. a?id-
flng d. '
-,?iu ..changesr_it
-.
ley; '...,the in the
.
i...Tre'ag4anngentiii' is 1hat. the C FA
has already05.een'tdangerou51y
...7-clemoralisAct,?titipKg
titiof .roeterdffielliiMale'sY.
LONDON DAILY TELEGRAPH
29 DECEMBER 1980
THE7 !INTELLIGENCE -
?
:
?
: ,-,'2.,Y: -,vi.1:-.74- ..-,,,,,.. . ,...: ?
:.-'..T). ..---...,..-. '...*-_--.,,
4.N rvr. -t-k7---1
r. : ji,
,, ....._ .
HoweiV'er, the
' Waiat_Ao
:.:i.engage,....the services of ,sorne
ypeople-,?who"
fired,:nr 'pressured- int9
preritature", retirement- Under.?
Admisali8tansfield,-,Tu'rner. or -
;his nC,,tes.s controversial pce-.-,
.decesporf Mr- William:Colby; ?
?In 'addition-. to' !'analysis-,-:, the;
other ? component-: of ...CIA
-7:activities - that is likely to:- be'?
? subjected to most -rigorous:.
scrutirty--===. is -1'.7!.couriter-intelli-
-gence--"-
Tliere?-is widespread', concern
that ;the. counter-intelligence.
-( I) -staff ?talbi weak-
. ,ened.in...1974..when:Mr Colby
-; managed engineers-the
? ; ouster of - Mr James Jesus
Angleton, for twin decades_the
agency's CI chief.
.The -: nominal ,:cause of
- Angelton's removal" was the
. Press leak of his involvement
a programme of domestic
mai}. intercepts. .It-,was not 4
made clear op-the...time that ?!
. this, programme ',had been-,
-s ? initiated as early as-1953 with
presidential -;authority,:-
%.and :,that it- has tresulted.
in-
the discovery ? of: ara.....import-
' --ant East German "illegal":
,as. well as: of rcontacts
:`-?TtWeen prominent--.Congres:-.
. -
sional- figures, and- the Soviet
1{?Glir, , .1,66 ai?A
-ZStaff cuts ...;;;;.;Yerti
? - _
?With.:Mr -Angleton's :Tait
powers the-2,..centraliied
CI A.! staT.were--",!radically
reduced; and. the ,..se'ciIrity' of
department'i'Own :files-- .
-;?_i..,.including sensitive studies of
-secret--services?w -
lessened, giving rise to con-
cern :that CIA operrations,
....-:--and-';-"aIlied.seer'eti/t. had7?..be- '
.4come id
morei". vneiable:
Sovie t- detection and. penetra-
Counter-in telligenci 'ts
:.popular within. a secret ser-
?;.s. vice,. since-the- C I A role is to
7:play the .histinational devil's
advocate, cie.restiorting for ex-
ample, whether a- defector or
double agent: (whose? case-.
May ..be 'intensely
.44 gIc41703111Cie3c
plant. .
The breakdoWi,
.... tion, :, howeYe
'entire, inteIlig
penetration' an
.= by it3 antagon
NIr...Angletbs:;,...i-
; ..- who have-bee
!''.-the Reagam.--..t
CI.,, r
,. :?;;., the- next::_adm
his advite,?;is _
?,.
- weighedvery seriously, no-t- .:: the creation of a fully- clan= 7i
7.::ciestirte---.,service,' outside-, tile '1
, - least because of . the . close ." -
.-'. relatioralii,p of, trust that :1.1r.1,-?.. -.preSent'.0 IA structure,-. to
'.'.-- Angleton established in t;11,e- [-'' :conduct :intelligence and.: C1.1
'.- past with'!" many frienutY_is -'"operations-- ,- :: 4-,;:--=-;-;.....=,-
secret-services, including_t'9e It.The - ..present, - C I A?.. largely .1
''TsraelisA754.4":".'"-"--...- ' ":--,----''''..,?-'1 reduced to analysts,, cove-t
The :whole -:-..questiort, of CI , r --,. Action --and._ ? paramilitary -1
: "organisatidn...is'- taken itp. in a ,. .operatioris.: (none- of .., whicit,I
"Valuable.sollecEon cf puers,...:-, ,-,are -likely.-to remain secret
edited.....:13-:."?Pr' -Roy:.:Godson,:;:.- :-,inclefinitelir. or perhaps -even.:
;',..".:.that will3..be`;:iinblislied ? early- for very long) would; remain ,
1?'?'-. neit yeat-hy-thez_Washingtorr7:',,..7,to."--defiect interest and, scan: ;
' clCrinsortium' for - the _ ='.: dal' away _from the clandestine :-
1 rt.
-.. Study or:Intelligence as part-- service: .,.. .,_ p.... ,_?-?,. , ,......?
;1-Ctf a series entitl.ed "Intelli:4";1:415 is:One' of the'-irianif tu'it-c'n!..---:
i
' 4:vent& B.eqUirernenti 'Tor- the- :-.: P'roposals for the ?restructur-.:
-;_ing of the ? 15.S. intelligence:
- community that will be-teach"
,
. ing- Mr Casey's 'desk: -"ii
Within': thit:-' 'n arrb-vi ei:-.. -a rii aciel
c_r itself!,;11r Caspy,..-will'te'.-;
..? urged - by-some' merriberiPf!':
'-the CIA transition- teanf:- to '
.?;!..- re-initiate-!!"-.-therevieW.:1-.:=4)1' 1
Soviet deception operations-".
'-' eiiitiallylq those- ,?irtVolvirig ?-1
double: agents in ilei:V --Yorls..../1
.:"....-,Whd.3rriayiliave,:been-control; -1
--,ile-rli byl-the-i KG E-rthat-,iwai'...-4
? ???.t aborted-bp. the:-197.4.:=purg e.1'-:11
_ MITT TNI:=
..1989s.',"?;v?
-Contriblittirs to-th. new yolume,
en t it Led:- ...Counter-Intent-
=-7 gerice,Inle?senior present-
:, and, forr CLA:.? and D1 A.
- "
Two provocatiViC:
? ' paperilie-the- book.are. by. Mr i.
Noirnaristin--Smith and - Mr
Doribviat(tPtattl.Who..wereqor
inerly (tesPectivelY) chief
operations and research. diret-
- ?.
.Ltor,':?iin,-....the;.-C LA's -;CoUriter.f.v.
Intelligente -.'.
? Mr Sniuith? argues that-it
necessary:,to- re-establish r.a._
:CI.' staff = With ?a:-
wide,.pur view; not onli to; en-
'sore' the -security:- of the.
A,'s,;. intelligence-collet-tin
and covert-. action operations,.
- but? to... unde.rtake.. its ..-.own
? offensive,,-double-:, agent -anal
- deception i-activitiessiAig.Siqq.
the KG-13:-
'He . very:- special
qualitications-,-' required to
make -a' successful Cl "specia-
' - only .. in -terms of
intellectual abilipy,., 1)43,- in
terrris7-7of'faMiliarity ? -with
'hundreds- of individual_ cases. -
. -over many years:-.-He-rightly.
-..observes.....that,the? Soviet: in-k.
telligence. ?:place'
A-RIVIPLIO ACM
?,:.for -IA-Lich, no- computerised
3e,data-Lbank, tan .-substitute..; '.'-
010002-3
STATI NTL
Approved For Release 2001/03/06 : CIA-RDP91-00901
YOUNGSTOWN VINDICATOR (OHIO)
28 December 1980
4:The CIA Under. Casey
f ?
William J.:Casey is not talking about
his' plans butt there is little doubt this
Country's espionage' a'rm will get ex-
panded:, authority ,and new muscle
- Wheri he is confiimed as director of the
Central Intelligence Agency.
yhile:'seme.-sep4torS?Jnight" quarrel
labciut Casey''s conduct as Securities
IrarA;2Excliange Commission chief in
491.1 he was *aped of trying to
thwart an SEC,
inqtury into fugitive fi-
nancier,Robert Arespot--!--'hiS confirma-
itionappears
And With confirmation- behind him,
4ttief67::year-old lawyer, who served as
t`Chief",;of Secret 'intelligence for Europe
.in thes Office of :Strategic Services in
?yorld- War II; will be entrusted with
the job of healing the. CIA; torn by
congressional Probes and low
-
Casey, :, described-, is s decisive and
;blunt4alking, had the :Credentials. The
OSSJorerunner of the CIA, was an ef-
Ocient network of 150 spies assembled
?by Casey for work. in Nazi Germany.
And he's got the backing. President-
elect Reagan's task force is recom-
mending an increase in CIA operations
and the creation of a central records
system shared by the CIA and do-
mestic law-enforcement agencies.
While the CIA's I5,000-member sta
is expected to withhold judgment on
Caey, there is no secret that a number
-' or them welcome the departure of the
incumbent, Stansrield Turner, Presi-
dent Carter's Annapolis classmate.
-.Turner's , critics claim he com-
pounded demoralization with imper-
sonal, management methods and
suspicion of _clandestine operatives and
, relied too much on electronic gatherin
while downplaying the use of agents:
Reagan's advisers are urging revival
? of the CIA's capacity to conduct secret
operations as a means of countering
' Soviet expansionism. ? .
And Casey, characterized by one
bureaucrat as a man who likes to do
things for himself, is expected to do
just that.
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(j2
"-l'Ighiffior Release 2ooli,91/$;? .,c14,Rpf),,q1coo9
ON ezi_
27 December 980
CORD METER .
ow:
Public..
- The-
.,
A
Having written..a book about a 26-
year career in, the CIA; this reporter
has recently completed a tour or-'
,ranged by the-.Publisher,lef nye_
major American cities. It's not clear,
yet how many books were 'sold as a
'restate but .expoSure to ?searching"
questions in-. a: myriad of TV`inter7
views and radio talk ;shows pro-
svided a unique:insight into the cur-
rent state of theptibliC's perception
of our intelligence services.
? While demonstrating a refresh-
ing capacitytosf"think ":; for
themselves, the large majority of
the questioners'. seemed convinced
that at this stage the U.S. has to have.
an- effective,intelligence systene,
capable of providing, advance warn-
jog of impending trouble abroad.'
The Soviet :niilitary, buildup has!,
been accepted- es, an irrefutable
reality and withethar.goes a wide
understanding,. that the country-
needs to be better,infOrmedethani,
ever before.
But if the lonetretreat from for-
en involvement that began with
Vietnam and Watergate has ended,
those events have left behind abid-'
ing scars: ''Questioner after.. ques7''
tioner probed the-issue of.liow'?tlae''
secrecy essenttel to intelligence col-,
-lection can be: reconciled with air--
open socieryrand- official':
secrecy_ can: be prevented from
masking domestieeithuSe prihipri.0
dent foreign entanglementee*t'f.,
` On this point,'She,presS.has evi-
dently done an inadequate job of ex-
plaining the significance of recent!:'
fa-reaching 'institutional, ref erMi
Very few. inethiS: large, audience;
understood that President Carter by-
signing on:Octe-14 the Intelligence-
: OversighrAct.prpyided for a depth
of congressional review over Intel-'
ligence operations the; goes. beyond';
anything .preedpusly entrusted to
the legislature-or any-denlocratic;t
. nation.
ees-.
STATIN
? NOV" einbedded in Our-law is the
right of the Senate and House intel;
ligeitte comraittees to be kept cur-
rently informed on all intelligence
activities; to which they demand ac-
,:cess2, 'Petalled review;, of : all
programs-by these committees and
their suspensive veto oyer covert
action Pperatons are the best possi-
ble guarantee against the repetition
of- presidential abuse of secret
power:''
. In'reporting on this crucial re-
form, the press stressed the fact that
it 'reduced from eight to two the.
number of committees that had to
be informed of covert actions. but
failed-to emphasize that these two
committees haye now been given
the legal teeth necessary to become
reliable watchdogs oyer the execu-
tive. There is admittedly a security
risk in exposing so much sensitive
information to the Congress but it
is a risk worth taking in view of the
deep public concern over the possi- '
ble misuse pf secrecy. . .. _ , ' .. ...
With the basic issue of congres-
sionalloversight now definitively
resolved, there remains the ques-
tion. qf how, Ronald Reagan's adviS-
ers are responding to the public
support for a foreign intelligence
service second to none. The current _
answer is that these advisers are
agreed on the need for strengthen-
ing American: intelligence but seri-.
ously divided on how to do it. - -, .. __...
Behind the closed doors of Rea- ;
gan's intelligence transition team,..
three young Republican- Senate,.
staffers have been arguing that the
CIA's performance and morale has ;
sunk so.low, that only radical sur-
? gery can save the patient.e:
? Drawing on ideas first-Surfaced
in a report last year of the Republi-
can 'National-Committee; they are
? proposing to downgrade the role of '
the CIA by placing an intelligence,
czar in the White House staff. The'
operations directorate of the agency.
wouldbe established as a:separate
'
organization and competing centers,'
. for:prOducing-hational -estimates,
,.*O414;13e.p_k4p4::,,,....:Li4;sie.ik,444
'.,=-A-thafority of wiserheads on thel
transition team -are opposing these )
plans for radical reorganization. On.'
the basis of a-performance record
better than its- critCs concede, the
CIA,?they'clanneneede to ,be s?ap--
? ported 'rather than dismembered.
The final 'decision will rest with
Reagan's-newly-chosen director of
central intelligence, William Casey,
and those who know him best do
not believe, that he intends to pre-
side over the dismantlement of the
agency he ha i just been appointed,
to head. ee cr. '? e, ?
"Casey is enOugh of an old Wash-
ington. hand to. recognize the. wis-
dom of former CIA Director Rich-
ard Helms' advice:"To separate the
president's principal intelligence
adviser from his control of CIA is
like removing the head from the'
'body. A disembodied intelligence
adviser cannot compete with the
other claimants for the president's
time and attention' -
Another stabilizing factor is the
recent selection by Sen. Barry Gold-
water of an experienced intelli-
gence veteran; John Blake, to be-
come staff director of the Senate;
intelligence committee. With yearsT
of service in, some of the-CIA's topi
jobs, Blake is likely to look with al
skeptical eye on draStic reorganiza-
tion schemes which are partly moti-
vated by the personal ambition of,
those who aspire to head the newlye
created components.,
Meanwhile, profesSional officers
? at CIA's Langley headquarters are!
waiting in some suspense for thel
outcome. They are encouraged by
signs of wider, public support and
.understanding of their work and
hope that Casey will "supply the cone
tinuity of competent civilian leader--
ship that:has so long been lacking.
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For Release 2o,nomo 1,c4A-Rop9vp,Ftpoo5
25 -DECENEI ER 1980
-ESSAY ----
. ?
.WASHINGTON. Dec: 24 Twice in
recent weeks, a group Of people have
stumbled:. onstage at transition head-
quarter awkward:. defensive.
blinking ....in the Unaccustomed lime:
lighe?. and lined up to face a flock of
witnesses and potential accusers..;
half-expected one member of the
audience to leap to his feet and shout
at one uteri in the lineup: "That's him!
There he iik:That's the one who prom-
ised me a rose garden!" s
,The .dreary; frayed-edge introduc:
tiorf?of the Reagan Cabinet I'm
the, new Secretary of Whatever; and I".
can't-ansWer any questions yet" is
pari?OtIlie incoming Administration's
post-election slump,
-At,,:first;,:the Cabinet-in-formation
Was presented the way a tie salesman
selIs-tfesr."You like this one? How
about this instead?" The Washington
landscape was _littered with deflated
trial balloons. -? '-??? -1-3??5!-"? ' ?
Later, the transcontinental distance
between the President-elect 'and _the
men and aVOMan finally selected left-
the Impression that Mr. Reagan was -
at the receiving 'end of the decisioa-
making Process. - --
.In the end:when the lineup managed
tO.lurch onstage, no rhyme or reason.
accompanied their introduction. Nei-
ther the foreign-defense group nor the ?
- economic-issues grtnip presented any
thematiO,sapproach?lAs crowds of
transitioneers bumped into appointees
at the stationhOuse? the elected leader:.
? seemed to .be off on some diStant
trol CanSt, where are you? :
thIS".rate? both Reagan's
tired days'..J'; anti his honeymcion ire in:
danger of being over by Inauguration
Day, a modern. record. That's unfair,.
of mode; by failing to act as mas-
- ter of his own ceremonies. Mr.. Reagan
invites others to search his selections,
for a Sense of purpose
Atpgterise; Cap Weinberger is a su--
perb choice. If defense budgets are to
be increased dramatically, who is bet-
ter at Defense than an experienced
cost-cutter? Weinberger has both a
sense of proportion and a- sense of
humor, and nobody will be closer to
President Reagan. His infighting
skills were shown in Weinberger's first
bureaucratic test: he rejected hard-
liner William Van Cleave as Deputy
Secretary in favor of depnty C.I.A.
chief Frank Carlucci, to the dismay of
the "Madison Group." which_ pre-.,
ferred cleavage. .
' At State, Al Haig is a question mark. ?
Seeking Democratic help.in his Senate
cOnfirmation, _Haig reached first for..,.
lawyerliewton Minow, Shen hired his -
Johnson Administration sponsor, Joe
Califano; seeking to please the Kissin-
ger faction and diplomatic establish.:
ment,.,Haig abruptly dismissed the
right-wing transitionaries who were.
worrying the striped-pants set. All his.
attention now is focused on the left, but .
his long-range battle will be with the
haWks._(For his deputy. Haig seeks to
circumvent Richard Stone, Fred- Ikle
and Laurence Silberman with a dark- .
horse Californian beholden only to-
At Treasury,, Donald Regan was
chosen ,beause he is neither Alan
Greenspan (resented by the supply-
side Sirrionites) nor William Simon -
(resisted by the traditional Green--
spar-tics). He is a fine manager who '
may not realize that he is backing into
a philosophical, buzz saw. We will be
betterserved by Reagan's Regan than
Regan's Reagan. . _
At .Justice, the_ choice of Mr. Rea...,
gan's personal lawyer was a mistake,
William French Smith would have
been a perfectly good White House
counsel,., but .the Attorney General
should be, .neither. the President's
brother nor his buddy nor his cam-
paign manager nor his former lawyer.
Justice has been profoundly politicized
in the past four years; we shall see if ?
the job of chief of the Criminal Divi-
sion goes to someone who ? combines
prosecutorial zeal with judicial tern-
; peratrient, or to Robert Blakey.-
Tb" Commerce, Malcolm Baldrige:
brings the experience of running a
? tight Ship at' Scovill Manufacturing;
his sister, Tish? is editor of Amy Van-.."
derbilt's "Book of Etiquette," so we
can expect the Reagan Cabinet to use
.44, A 15416 VOL IL]. ,
' 8.5 Djuctor of Central intelli ence,
William Casey- is a natural ? World
War II master spy, international law..
yer, refugee advocate. economic
statesman. By treating this atnnint-
menu as of Cabinet rank, Reagan sends
a clear signal that the C.I.A. can stop
feeling guilty and start getting results.
Skipping over most of the others, as
Reagan probably will, we come to the
most inspired appointment: Jeate
Kirkpatrick as ambassador to the
United .Nations. Intellectual, articu-
late, forceful,:this Jackson Democrat
Will sweep away the guilt-ridden pre-
tensions oftliAndy Youngs and bring
back memories of Pat Moynihan. With
rank, she will have direct ac-
cess to the President if the Secretary -
of state wavers on policy. At the Coal i...
don for a Democratic Majority; hers.
was the ?trongest voice for support of _
Israel; America will, not soon. again .
be embarrassed by the spiteful anti-
Israel vote cast by Mr. Carter's man
last week.--
A good bunch,. by and large, biai-:.
stered by Richard Allen and Martin
Anderson within the White -House?
certainly a big improvement over the
crew sinking from 'view. The pity .is
that the "team" has not been pre-- .
sented as a team; the fault for that lies
with the man who may.have chosen his-
Cabinet, but failed to give meaning to.
his choices.
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Approved For ReleasEatinAtiWTAllikibl5bl0901R00135
25 DECEMBER 19 0
STATI NTL
--"'"????
idward J. Walsh
/Probes By Congress Cause
jL imping Of U.S. Intelligence
i President-elect Reagan': Hughes-Ryan locked the
nomination of William Case
President into a cumbersome
, for the critical Cabinet job oi and potentially embarrassing
( Director of Central Intellig? reporting procedure, and
ence looks like a good one. brought clumsily into the pub-
Mr. Casey served as chief of lic eye the heretofore unspo-
ken recognition that the CIA
did, indeed, engage in "covert
activities." The effect was the
almost total abandonment of
such operations, with the fo-
reseeable adverse impact on
intelligence gathering.
Shortly after the passage of
Hughes-Ryan, both the U.S.
Senate and the House of Rep-
resentatives established Se-
lect Committees to investi-
gate the CIA. These were the
Church and PikeCommittees,
named after their chairmen
Intelligence for Europe in the
no-nonsense Office of Strateg-
ic Services during World War
II. It's a safe guess that he
By
EDWARD
WALSH
knows how to gather intellig-
ence.
It is no secret that Ameri-
can intelligence capability has
deteriorated in recent years,
and doubts have already been
expressed about Mr. Casey's
ability to "reform" and "re-
build" the here is cer-
tainly plentte4eliebuilding to
I do. But efforts at reform have
been going on for ten years,
Iand we have seen them go too
, far.
In November, 1978, Presi-
dent Carter complained that
1, he had been poorly served by
! the CIA's reporting on the
Iranian revolution. But rather
than blame the Agency, he
should have pointed the finger
; at Congress; that is where the
I responsibility for the feeble-
ness of our current foreign in-
i ? telligence- operation lies.
In 1974, in response to evi-
dence of abuses of the civil
rights of Americans by intel-
ligence bodies 'during the
Vietnam protest era, Con-
gress passed the Hughes-Ryan
Act, the first in a series of
bills that had the effect of
crippling the nation's intellig-
ence agencies. Hughes-Ryan
amounted to a cutoff of funds
for any CIA activities other
than information collection,
unless the President approved
such activities and described
them. to Coogress., -
Sen. Frank Church and Rep.
Otis Pike, who hunted wrong-
doing by; the Agency with
vengeance. They found very
little.
In June 1978, the Foreign
Intelligence Surveillance Act
became law. It created nearly
insurmountable obstacles to
surveillance of foreign visi-
tors to the U.S. The Associa-
tion of Former Intelligence
Officers (ALIO), a dedicated
group of men who understand
the meaning, and the need for
covert activities, testified
that the Act would hamstring
the intelligence agencies' abil-
ity to watch subversives and
spies. But the Act still stands.
Today, the Senate stands at
the brink of approving a
3road charter for intelligence
gathering; the bill, S.2525
would set up detailed over-
sight and disclosure rules for
the CIA. The President would
be required to reveal to Con-
gress every minuscule detail
of routine intelligence opera-
tions. Permanent Committees
on Intelligence in both Houses
of Congress are already in
place for that purpose.
The direction of bot i Intel-
ligence Committees has been
that charted by the opponents
of clandestine operations who
first steered the Crch and
Pike Committees. The fous
has been on Congressional e v-
ersight and debatable viola-
tions of the civil rights of rad-
icals, rather than intelligence-
finding and combating the
pervasive Soviet intelligence
apparatus in this country.
This is the tide that the new
Director of Central Intellig-
ence must swim against. The
American intelligence agen-
cies have been hobbled by
nearly a decade of anti-intel-
ligence posturing in Congress
and the American press. In
the silent war with the KGB,
they are still limping.
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.A?rrAigprOVe421,-For Release 2001[03/0,6 ? 9IA-R,DP,91-00901R
1,
ON PAG 1 / TE1:
25 December 1980
Mira
.4":"."4":???M'A.
.7, ?
1
?
By Jeremiah
swir
l'.7iS?..expected to. be-.riaMed deputy di-
rector- of;: the. Central J.ntelligence
President-elect Ronald
',.Reagan, according to well-informed:::
:sOurces, in.the transition. process::
49:?YearOld:naValbfficer has
beert director of thesuper-secret
,f4ioaal.-Security :Agency at Fort
sinae, 1977_. Transition
71-..sources- said Inman .was at the top::
43f the list for taking over as deputy.
director-designate' William -
Casey because Inman s talents would
? complement thoseof the_.67-year-old
..,2,Casey:qs . --;irespected political .
strategist who took Over as Peak-an's
campaign inianager. .on . the eve
L_the New Hampshire Primary and had
''?'.?:4--lidesSfni career as an OSS oper?.
-ator durin.g World Warl.t. But Casey -:-
is",:Said;_even by ,his friends, to be
somewhat disorganized when it -
comes to details, occasionally forget-:
and out of touch with modern:,
intelligence techniques..
Jn -Addition, the _CIA -tradition is':
that when the directorof the agency
is,. a civilian, the deputy's Spot goes
to a miliMry.man, Outgoing director
Stansfid Turner is a Navy admiral..::_
his 4eparring deputy; Frank Car-
lucci, is
?
i'i.-1?-;i:!?:".-Th Re gan-talent.hunters have,been looking ,
for someone '.orga:-:".,'?
nited and current . .
IllSTATI NTL
'ir-esent-day'intelIigenteCiaft'and technology- ;
_install as Deputy CIA Director Under Casey. While
'Inman's' nomination- is not final, several sources.
Consider him to be a rtinaway leader for the pdst:
Inman a native of Rhonesboro, Texas, entered
the Navy after graduation'. from: the University
. of Texas iia 15O Although not a graduate Of the
Naval Academy; he did' graduate from the' presti-
? gious National War College here in the 1972 cls.;
He became .' an ensign in 1.952 and. Advanced,
through all the officer ranks until his promotion'
.--to- Vice, Admiral. in 1976:" In, his career, Inman
has served as assistant naval attache in Stockholm,'
;Svieden a:key listening post for events ,in the
Soviet Union He also ' was assistant chief of staff:
for intelligence Under the commander of the Pal-
civic Fleet-frbrn 1973 and 1974-.-
For the following two years, Inman was director
rOf the Office ?Naval Intelligence in Washington.
'Hewes vice director Of the Defense Intelligence
'Agency -,frO.rii '1976, to 1977 when he was named.
head of the NSA L= '
The National jSecurity 'Agency'. has the task of
Ifstenini,iteeIectrOnically on all world comrnii=1.
"pications' 'pria has the' Major role in U.S. efforts',
'2W break other nations'codes-"
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...I
Approved For Release 200111/03q06IMIJAKRDR91413901R0005
24 December 1980
Toothless CIA may regain
its once powerful bite
. By EbWARD 1.WALSH
T.United States indiistrial Council
r
President-elect Reagan's nomina-
tion of William Casey for the criti-
cial Cabinetejob of Director of Central
Intelligence looks like a good one. Mr.
Casey served as chief of intelligence for
Europe in the no-nonsense Office-of
Strategic Services during World War
IT. It's a safe guess that he knows how
to gather intelligence.
-
It is no secret that American intelli-
gence capability has deteriorated in re-
cent years, and doubts have already
been expressed about Mr. Casey's abil-
ity to "reform", and "rebuild" the CIA.
There is certainly plenty of rebuilding
to do. But efforts at reform have been
going on for 10 years, and we have seen
them go too far. - -
In November, 1978, President Carter
complained that he had been poorly
served by the CIA's reporting on the
Iranian revolution. ?But rather than
blame the agency, he should have
pointed the finger at Congress: that is
where the msDoiisibility for the feeble-
ness of our current foreign intelligence
operation
by intelligence bodies during the Viet-
nam protest era, Congress passed the ?
Hughes-Ryan Act, the first in a series
of bills that had the effect of crippling
the nation's - intelligence -agencies.
Hughes-Ryan amounted to n cutoff of
funds for any CIA activities other than
information collection, unless the pres-
ident approved such activities and de-
scribed them to Congress.
Hughes-Ryan locked the president
into a cumbersome and potentially em-
barrassing reporting procedure, and
brought clumsily into the public eye
? the heretofore unspoken recognition
that the CIA did, indeed, engage in?
'"covert activites." The effect was the
almost total abandonment of such oper-
ations, with the foreseeably adverse
impact on intelligence gathering. ' '
The focus has been on Congressional
oversight and debatable violations of
the civil rights of radicals., rather than
intelligence-finding and combating the.
pervasive Soviet intelligence apparatus I
in this country. This is the tide that the!;
new Director of Central Intelligence;
must swim against. The American in.'
telligence agencies have been hobbled
by nearly a decade of anti-intelligenc
posturing in Congress and the Amer
In 1974, in _response to evidence of can press. In the silent war with th
abuses Of the civil rights ofAmericans KGB, they are still limping.
STATI NTL
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STATINTL -
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A:IT/Cr:2.
l'AOZ
ft???,..40.,...V.-/N7.16,?.
Waste.of
PHILADELPHIA INQUIRER
23 DECEMBER 1980
.4o..**10440,
1Bypattieler,Buthenan. 45 reisey , .....,, the ,..... ......- -
t relatiVe Inerits:',Orthel - Mcisr.?,importantqhe'r-Americanl
T cruise _missile over the Pershin , or 1 . people-didnot vote that cabinet
l=r-',WASHINGTOlit:Thiklatalilatir
..: a u e tug m e o t e . St. , they did not vote for committee deci4
31, 1981.. After ,'?0 bruising confirtrie ..
what -.value the reflections. of the HSion:Therdid not in Hodding Car-I
tioniSeCietark-of State Al HaiePre-:
seeretary:Ot, Energy; on whether or .,..,,?ter's: words, ,"buy .a,'-.Pig ;in a poke."i
:Occupied Witltrthelatest:Warnings,o1 1 ?
Soviet:iinterlientien in -POlank,ar-- r: het to extend the .yating, Rights, Act ',...:-.They -Chose a politicaLfigure with al
ifvo_at. his first fiest.m.deiiiiipt th-evsu,:,7:p11965?_ ? z? ,.: ,,_ .,,,,..k.;- :-...;:, ? ; , .':' ?-:;:,;;PbilosoPhY;.aS ;fatnilier:, as that: Of.
,..4:7-...c. Conc,ededly, PreSideni-Reagan 'lies _ Barry Goldwater the leading chain-.
, per Cabinet.7411i.4.,,t,:,,,t,-,:w,;;;Tii.,,.'4.4---. ,i,,y..-?, w
on the; right to sinieture his cabi- , 4- piopf. the copse' rvative movement
. ? -Snbieetbf dinvefiatibiii.einlikAal''.;net'as? he_deemS fit Eftit-'SUrely the; , for a dozen years; who upon the
.by Office Of Minagerneht and Budget: " lessons of the recent should. not' ...most conserve t ive.,platform in ':the
, ? , . . .
1,11
2 II -
II 11
,Director DaVWA. Stockman. for a
reduction.in;ZiiiilaYs?fot food stamps
in fiscal year.1981. 7
be altogether fgnored.7::..1,5 ?- jifetime of mostAmericans.
Since Richard Nixon; every presi-, A:managerial class, seated in -a
dent has talked about ?."cabinet goy- ; Super Cabinet whichdoes not share
ZReadinCover'..the.positionipaper ernment'.! to the cheers of the na- the no pale pastels!! philosophy of
-,and,tbackulp:' statistics Haig's eyes tional press And each president has.. ? Ronald Reagan; will bend before the
-glaze,!.overjrtHerises;`,-;politeryt;.an- ?found himself holding fewer cabinet . :prevailing winds. And the prevailing
meetings. The reason: The cabinet winds in Washington, approaching
cannot be -a policy-making body be- gale force, are from the Northeast -
cause the secretary of Housing and Pundits and pollsters, -sifting the.
Urban Development has no need_to returns, are discovering that ? lo.
know' how Many divisicinS the Krem: i:-.7and behold! there was-no"conser-1
yative mandate."--in 19..80:?-. Actually;
lin,has,.:while the secretary, of State-
has no need to know;?within five .;_says pr. George; Gallup on social
lion, how -many dollars ..HUD will. Tissues -like 'ERA and Right to Life'
. ? .
_spend this fiscal yeart.;-- .
:1?Instead pf resolving the old prob-
lem of -conflict- between the cabinet
. ri ounces van.inportant ; meeting 4 at .
:State7over the siniation iniEsstEii.:.
'rope,: and-laeads. off to do wharhe
ought tor be doing. Which is not?drgu-.'
ingt abatit?.r71ood,.. stamps, .:,,welfarei.
forcedbusingKemp-Roth or Conrail.
? AS envisioned, the Super Cabinet is
to consist of...the secretaries of State,
Defense, Treastiry,?the attortergen-?
eral and perhaps one 'other :cabinet
officer. lt, would bathe. highest poli,;''
cY-making bodyi:in_the government:, and White House staff (Which arises for him- that it was -a rejection of
. it would discuss, as a group, all issues . from personalities and -.Policy, . not: Jimmy Carter"; 7.7. -. '-- ?.? . ,
.....; inducting those outside the juris-: structure), the Super -Cabinet will ' '' So, Ronald Reagannis-being deluged '
iliCtion of the cabinet OffiCerS-thein-:: , compound it There Will, be an extra , -,I.Rith cOunsel, from, within and with
selves ';'?'''?`:.V,4,i,:::::-.4.1:;;A-::,!:?..,,,,, - ?.,. :layer of bureaucracy betWeen. the out his- inner nirCie, from those who
The Supeetabiriet . idea is not ,a ? 'secretaries , of the 'social departsoeletOppOsed,hiirc,.and some who supPort-.
,. . . ..., - -
.super idea t- la ai birnimeit- it will. ments"- SHIM, Education Health and ',...`, ed him. to move gingerly-on tax cuts, -
'come a cropper. andsost President -Mimi Se-tViCeS. etc.) ,and the PresiZ . to make Modest increases in defense '
'Ronald '-Reagan.. precious months -dent We will have .a new elite and _but, above all to avoid unnecessary
:
before itctilIapseS..,?%r.,-: ,,'244.ic3:;-? ;1!..i::L new frictions inside- :?? the-'. cabinet :-.Controversy ? by shelving the entire
.....,
For it LS:a:waste or the'fimd of the- And while the seating 'arrangement , social agenda in the platform on
4,-- - -" - ? ? - ? " .. _ . ,
secretary.of State and the directoror at the cabinet table already suggests ''?which he campaigned.?:",7 :?:. s--- ..-: -: : -
the CIA to be studying up at night on :a ;ipecking order, we win: now havel ? If the 'president-elect- 'cides ? follow
the "social issuia=.'it isa waste of the -first-class cabinet officers and steer.; that path, he will win six months of
-
time of Attorner General William ...ageclass. ,,;- ?-? ,..:::,!-, :?,',.i.; ..... ,,.. ,..;..j 'indulgent press ---, and 18 months-
1-
tary Carterization.
Prencli-Smith and -Treasury- Secre4'f from nbvi he will be on the road to
-', - ' .._ .._ ??,-"?'''' - ?-'' -.., ''''
ISonald - Regan = to -, be- arguing ??.,..-... ? , , ..-:,-,,,?..........:-...._. , ..?,-.....,J.
.4&_Haig 'or.CIA Director Bill-
most-AmericanS disagree with Rea-
gan: Actually; adds the good doctor,
Reagan's victory was less.a mandate
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iirTICLZ
ON A'
TIME
Release 2001103/016eDIALIRDP91-560-11NolX)
a
Appointees to the Cabinet Casey, Stockman, Lewis, Schweiker, Baldrige, Smith, Weinberger and Began
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EIRACK-B, ACK STAR
Approved For Release 2001/03/06 : CIA-R6116F-001R000
_ .
SOURCES close to Presi-
dent-elect Reagan say
that? he is Rrivately deter-
LONDON DAILY 1.1.ELEGRAPH
22 DECW3ER 1 980
THE. INTELLIGENCE WAR
? --mined to give the fullest 1.2.4_
. TEA G a ly _ t 1. . t . ._._.. . ---,, _
11 . z - I' f
,,i
_ . ... ..
.r= poszible. American' support !
to _ groups .opposing the ' ----------------- --
-,?preserit reg!mes ..in, Cuba ? .. C ?
_ .., a Lib which b
.-and Libya,. wc are both! -
. .. . _,..6
.,-?,.. providing ,surrogate forces
-.;:.:for the Soviet *Union. ?-??'.?'.
?"?Libv-ari troops and tarii:s .h?ave..
A TV
-.-?,--just ena bled -Chad's President By ROBERT illOSS
?, C.,otils-burii.-.Qaedde.ai. to. estab- In. the :caSe ' of:tuba, , the -pros- Auclropov.-1 the Chairman of -
-:--11:;11 his: suPrernacr'in 'a' civil -. pects? for an 'effective- covert the. KGB,, r,lr.. Boris Pono-
''' ' war' ag.atinst: the I-alto-liars' .of .?.,action, programme. -to reduce. -marev,-the bead. of the inter-:
!' the -former, Defence 'Minister. .Th-. Ca.:-.4,E?O'S ? , -appetite ? for . national Department of the
. . . - - Soviet- .Commonist :party's.,
- ?- .: major. intereq. to l'..ibya'S dic- . ;, lighted by evidence_ of :recent -Central' Committee, and i'lr ;
r- ''ta tor,- Col. Gaddati,7bec-ruse of -,, successes. bY. _the:. anti-Srp,iet. ..Mikhail -- StrSloy. : the - Polit-
Hissene? a-adjs.:of- foreign. wars have been high-
whi?ch _Ilaita..guerrillas in Angola_ :
? ? hopes .,triercrAoit.'-in his 'Western Military observers con-
' efforts tor acquire, *nuclear firm that, with the help of
-weapons: '''? '? ? ? . three- newly-acqiiired Sam 7
Unita forces have' shot down
?
'tut ' Chad may -also , e .
!hone in, a, broader strat2gy. . two Soviet jets:_that v?ere,
*_'.? Senegal's 'President ' Senghor ,'. heing Used'. to . b?orr!h -.: arid
has warned 'that Cnts GadItfi.. '. . ,strafe; civilian .,villa:_4es. -f, . ? ,
'-, Ii -pto '12Fa ' a., specially- : ,I.:7-:'":...:'
'-- ?r?- trained (and' Soviet?arrned) ..,-,;; Russians captured
1-`'-force -or 5,000 men to set ?up " ' --...? _ - ? ' ' i
. . ? ..... . -
an "Is1arnic, Repubiic cf the , Unita has also- captured tw4
, Sahara:: under-, his control: -' ituians, a 'dig pilot and an'
'.this puppet. 'republi-c would ---air-force- engineer.-who may
embrace_ area-S?of. Chad, Mali, - be able-to provide first-hand--
? -.Ni,..,e- and ql."...IFt. -. . - - ' : testimony - to ...Abe role that
Egvot's President Sadat .seeS-a' : Soviet- person-tel are playing
; 'threat of:..Lib..1-..an -and..-5.3oviet --in-the- repression of -black -
. . Africans. . _. ?
.: ?subversion, ,.-ia Chad, pgaiust
.I.Sud;a. ori :his southern bOr-
,... : C'e.r: This would be t'...-.e. latest
move. hi' coy Gaddafi's long-
'iitia-g carri?Pitgn to cuist MI-
- Sathzt. in. the,cnurs'e of,ultich
aen of .":the" Libyan secret
service : have:: been ?sent.i.to
7- fo orchestrate. a ssaasio-
-ation,attern?ts?tt,s,,..,-.-.:!147;77-I ?
:?????: ? ??
Libyan success:- -
tLibyi's- coup in Chad could
-?-? easily,: have.. averted,
according Western .mili-
^ tary. analysts,. h-ad .th-e French
-.prepared to-play an,
T', active role."Butt:President
;_.? ..Gi.scard _d'Estaing reportedly.'
L,rejected the ..advi?of.:_his
? ,sen-ior intelligence.adVisers.to
French...planes.-to:,strafe ?
?
- .--^ -the,Libyari. columns. ?.
Now-7 the- most 'effective ? re-
sponse Gaddah's
foreign.- adventures - may.- be
-.Irv- direct . support, for-, -the
elements ? inside.. -Libya who
are .opoosed to his-regime,
reliably reported that the
r Carter Administration inter-
-. Yelled during El 'previotti crisis
to- prevent Mr . Sadat- from
? moving against' Libya; the
'..':?Tteagan Administration, in a
" ':dramatic change of :rolicy, is
'likely to. work-in close con-
,...cert with the Egyptians to
end. Cal. Gaddares career as
,buros -top Ideologist, are ail
said to have -counselled
against military action..-(This
despite-Lor ' perhaps -because.
of ? the 'tact' -that Gen..
,'
,Andropov' then- -Ambassador
In: Budapest, was. the main
organiser of the suppression.
of the Hungarian uprising in'
1956.) ? "
DiviSions _in ?MosCow. and the.
prevailing uncertainty over
,Presic:ent. .Brezhnev's. health
.and the shape_ of the. sur:
.cessior; tri 'him-improve -the'
.prospect? for a strategy of'
'land ..
the "Reagan "Adaiinistration.
Another' aiajor ,hcatre for this
If Unita ?vere.to be re-equipperl_
strateey -will' be Central-
with, say .309-..lteat-seelsing
?AnIerica: -In Nicaragua. .
. missiles and.' modern ?anti-
-Sandinista- dead.ership--whi:h --
.is -now,. supplying:.revolutioa-.
ary? "'volunteers " _ for -Angola
-alienated- -much' of its
.-earl.v.- nioi,erate'-support, and
:some ..analysts -believe 'that 'it-
.coolo ...be.??overthrown .by -a -
Coalition -of- ? centrist forces,-..
given-Sairpr6pionritn7.1theofcan', ACmaretreir
Admiiihstration s poliey has:
been. to .endorse, and finance'
the:present: Marxist -:regime_
.- ? .
Some: of. Mr Reagan's advisers
on --Latin America _are sug-?-
:?????gesting -that- he should-
statement (perhaps:.
a -`qleclaration of Miami," he;
cause of the, large Cuban
emigr'e. community there) dc-
-' fining' - Washington's ..refusal
to: tolerate .Soviet -Bloc acti-
:vities? 'in the -Central Amen-
region? a'.? sort
? ??...updated Monroe.Doctrine.?-_,
? ?,.? ? ? -? -- ? ? ?
? -
:St-mdis. - face
erswn
soviet .tlebat6 ?" ? ' .
EP" -
D -? e .
?
For the -moment,.the Soviet'
.OV Iran-Ii'art
-.leadership ? appears...- to be
locked in the -sante .kind of.. ? _-'.1.hib war b `tiestage:problerri -in?Teherart,"
ceded the invsn-of ore-. evidence has- come -to-
internal. -.debate ,,-'that'pre-
light of Soviet-backed: efforts
aio ?C?zer.hre " ?
ccording to Western
intel-
ligence' co-operation
'. between the Iraoian and
--Syrian secret .;er-vires
has re-
suited in important ?- ex-
!.,:Changes. of irformation coa-
. ;corning .Saudi Arabia ?
The ? Syrian secrq.? service have
-,'close - liaison. .qith the KG-13
and the GB if; and Syrian
k.F.icers- are sent
''to Russia fru training: One
Source - reporrs ' that ? in a.
recent"Meetin'4- between? the
----head'of-Syritai_Air Force in-
???-- telligence.,. Cen. iquhararnad
-z anq ? the Iranian
'.,----secret 7 service. - "-Gen,
...Hussein (Formerly?
:.:.7employed - by the Shah); the
.2 -Syrian r?oCia- claimed that
the Badana air base
north-easte.rn 15
7being used by Soviet Moe i
- transport ---,cii craft ferrying
..militart, supplies to Iraq:and
. ;Altar. the. Saudis .were... using
their iauenc- . to encourage
? ? Kuwait and tiu.,7 Gulf emirates
suoport -the-. Trams._ Such
: reports 'could help- to prod
the- :Teheran re virile:, into
- direct - -action against -,the
2 Th tt Dernurr?Itic Front for
the -1,1he.ratiori of Palestine
(DF I, Pi, an ,,perrly Marxist-
'Leninist- erouo within 'the
?': P L 0, that to 4:es no -secret
- OF its. pro-Sovi.q loyaltie3. ha:
bei-m. ? distribtoing anti-Saudi
propaganda materials. ? -
tank weapons,' the 'chances of "
...inflicting a serious
bunmili-
-: ation on the Cuban:garrisons
? an' Angola mould be greatly.
.' ? -increased...'-?
Mr' "Reagan's .foreign . policy
adviers. believe' that, the pre-
..
sentc, world climate presents,
remarkable- opportunities for
_ .
...curbing the process 61- Soviet',
expansion-:that was
.to .gd unresisted :--by 'the,
YCacter...Administration.
Whit - the .? occupation of.
? Afghanistan .:- lost 'Alescow.
- , friends-in the._ Islamic world,
. the,workers' revolt- in Poland'
has 7' :exhibited the,- vuluer-.
ability--and- fragility- of the
.:Soviet empire in -the face of
internal pressures.?
If the Bussians-invade Polann,'
-'they-- will lose allies and
? sympathisers throughout the
world; 'and deal a death-blow
the :myth Of Eurocom-
Tmunism." in the run-up to the
. next French': elections..-- ?
are
,slovakia in 0963, when' such ?. ? tos. destabilise. the monarch
L y
--it:taker._ A
_ct
_2 ? inte ational- tro pi le-
JoriReittigt -2001/03/06
. . p 90'11M:1005
? . .
. ,
At- a recent co ? terenre of the
Association Arab-Amen-
cart Graduate., in the United
. States.- . for example. the
.'DF LB stall was distributing
a series .of namph!ets pro-
-. deceit- lw Sou' al-Taliah (PO
Box '27530. :,an Francisco,
Calif_ 94127). A represents-
. tive booklet. entitled,'" Poii-
ticat.' Opposition . in, Saudi
rtu?de a -direct
appeal.to..Saudi military per-
, sonnet to rise up against-the
regime.,
'.The Saudi Armed Forces: the
anonymoos-- aathors of; this-
publication 't ote, : are. , the-
only...institictimis in the- coun-
try .possessing' the .,actual
means. of ,revolutionary
.-.Change: Sao propaganda.
activities-, are significant, be:
cause.the.v-?rellect an- effort to.
-Indoctrinate Saudi . officer-
- cadets who -ace-sent--to the
United-States for -
3?The _rnost___:exotie--case--in--
.
volves the.recent stepping-up
--;.-of official Soviet interests in
? the culture and- traditions of
the_Uighurpeople, -who -live
not only in Soviet Central
Asia and Chios but in tight-
knit comtnunities :in' Saudi
Arabia too, where many have
made careers in the Armed
Forces and th, civil adminis-
tration_ ? .
oolooRiorttm
AppEovictql5pf,Release gopigmq :AkftRiegir-oo90
22 December 1980
STATI NTL
The President-elect is fleshing out the top echelon of
his administration mostly with hardheaded moderates. Their
double task: Tackling the country's problems and
breathing life back into a weakened institution?the cabinet.
? For director of the Central Intelli-
genceAgency, William Casey, 67, Rea-
gan's campaign manager and a former
chairman of the Securities and Ex-
change Commission.
Company men. Regan, Baldrige and
other Washington newcomers were
chosen for the cabinet because the Pres-
ident-,elect pledged during his cam-
paign to bring into government people?
who have excelled in private industry.
But the new men are not expected to
have as much influence on the Presi-
dent as his old friends, Smith and Casey.
William Casey
CIA
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STATINTL
kRApproved Fel- Releaseti?pyRof -00901ROCIMMI
o
22 December 1980
New Boss and New
Future for CIA
It will be up to William Casey, one of
Ronald Reagan's most trusted advisers,
to heal a Central Intelligence Agency
battered by six years of scandals, con-
gressional probes and internal turmoil.
The 67-year-old Casey, a New York
lawyer and self-made millionaire who
served as the President-elect's cam-
paign manager, is no stranger to the
world of intelligence. During World
War II, he served as chief of secret in-
telligence for Europe in the Office of
Strategic Services, the forerunner of
the CIA.
Named to the post of CIA director
on December 11, subject to confirma-
tion by the Senate, Casey will take
charge on a tide of congressional and
popular support for a stronger intelli-
gence arm?a sentiment reflected in
new legislation relaxing restrictions
that have virtually precluded the agen-
cy from covert actions.
Reagan's advisers are urging revival
of the CIA's capacity to conduct secret
operations as a means of countering So-
viet expansionism. Casey likely will
give that task a top priority.
Some observers predict that Casey
will find his No. 1 problem involves not
clandestine operations but the CIA's
gathering and analysis of information.
That weakness showed up in failures to
anticipate such crises as the fall of the
Shah of Iran to an anti-American Islam-
ic regime and Iraq's attack on Iran.
So distressed was President Carter
with failures of intelligence assessment
that he sent a rare handwritten note of
complaint to Stansfielcl Turner, the An-
napolis classmate he chose to run the
agency.
CIA's Casey: "A man of action."
The CIA's staff of roughly 15,000 is
reserving judgment on Casey. But
many welcome Turner's departure,
claiming that he compounded demor-
alization with impersonal management
methods and suspicion of clandestine
operatives.
Casey gained a reputation for being
forceful and intelligent while handling
such government positions as chairman
of the Securities and Exchange Com-
mission and as Richard Nixon's presi-
dent of the Export-Import Bank.
Yet some associates question wheth-
er the new CIA chief has an adminis-
trator's temperament. As one intimate
put it: "Bill Casey is a complex guy, a
man of action. But he's not a bureau-
crat. He likes to do things himself." El
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ARTICLE AiriaLM
oii rApproetalcLEor Release 2001/0
An Idea Man
For CIA
Who has no time for detail
A s a young spymaster for the U.S. in
Pat World War II, he wore Navy blues
that were usually spotted with crumbs,
peanut butter and cigarette ashes. But be-
hind that disheveled appearance lay a
keen and free-wheeling mind that, by
war's end, enabled him to put together a
network of 150 agents in Nazi Germany.
Now, after a highly successful career as
tax lawyer, businessman and Government
official, William Joseph Casey, 67, still
looking rumpled in the best-quality dark
blue suit, is returning to his first profes-
sion, as director of Central Intelligence.
Casey displayed so much energy as a
child in New York City's Borough of
Queens that playmates nicknamed him
Cyclone. A 1934 graduate of Fordhani
University, he studied law at St. John's
University at night while working as a
city home-relief investigator during the
day. After the war, he set out to make his
fortune by practicing law for a New York
firm and by writing a series of how-to
books for fellow strivers (sample title: How
to Raise Money to Make Money).
Though he refers to himself in his still
pronounced New York accent as a "card-
carrying Republican," Casey counts
among his friends Liberal Democratic
Historian Arthur Schlesinger Jr., who
says of the CIA nominee, "He has firm
views and judgments, but his mind is not
closed."
Casey ran for Congress j
from Long Island in 1966,
but he lost in the primary.1
STATINT4.001M
'Alltilkfr 1-00901
For Intelligence: William Joseph Casey
He ended up in Washington anyway, in
1969, when Richard Nixon appointed
him to the advisory council of the Arms
Control and Disarmament Agency. In
1971 Casey became chairman of the Se-
curities and Exchange Commission. Dur-
ing his 21-month tenure, Casey won high
marks for simplifying the regulations
on issuing and trading stocks; at the
same time, he developed a reputation for
being a blunt-talking, decisive manager.
Friends recall that when Casey arrived
in Washington with his wife Sophia and
daughter Bernadette, he offered to buy a
Massachusetts Avenue mansion from the
widow of Chicago Tribune Publisher Rob-
ert ?McCormick. Upon learning that the
Japanese embassy had offered more mon-
ey, he quickly made a yet higher bid and
sealed the deal_ When the flustered Mrs.
McCormick asked what she should tell
the Japanese, Casey tersely replied: "Tell
them to remember Pearl Harbor."
Casey became Under Secretary of
State for Economic Affairs in 1973 and
then served as president of the Export-
Import Bank from 1974 to 1976, when he
joined former Secretary of State William
Rogers' New York law firm, Rogers &
Wells. Casey barely knew Reagan when
he was hired last February to straighten
out the campaign organization.
Though some staffers criticized Ca-
sey for being disorganized and poorly
versed in modern political techniques,
such as television advertising and polling,
admirers credit him with tightening the
campaign's budget and making up for his
shortcomings by surrounding
himself with seasoned noli tical
professionals. As even his
friends admit, Casey is not very
good on specifics. -He a great
idea man," says one of them.
"He can get people stat led, but
then he loses interest. He's no
man for detail."
Casey has so far deelined to talk about
what he plans to do as CIA director ex-
cept to say: "The U.S. has had the finest
information-gathering analytical and
scholarly organization, in the world of
this kind. I would hope to maintain it and
strengthen it." But he has refused to talk
about what CIA weak spots he might at-
tack and has not yet read the Reagan
transition task force's report that recom-
mends an increase in covert CIA opera-
tions and the creation of a central rec-
ords system shared by the CL. and
domestic law-enforcement agencies.
Most career-agenc officials welcome
the appointment of the OSS veteran?as
long as he selects a capable deputy to take
care of the details that he prefers to shun.
But first Casey must survive a tough grill-
ing by Senators on accusations of miscon-
duct as SEC chief, including an old charge
that he tried to thwart an SFC inquiry of
Fugitive Financier Robert Vesco in 1972.
Casey. with typical bluntness, professes
no concern. Says the CI k nominee: -I've '
been confirmed by the U.S. Senate four -
times. I don't think there's any question
I'll be confirmed again."
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lease 2001EM OWNKCIA-RDP91-0 -
22 December 1980
STATI NTL
eagan's G od, Gray Cabinet
Like the supporting players in a town
pageant, the first eight members of
Ronald Reagan's government-in-the-mak- j
ing filed onstage in a gilded Washington
hotel ballroom last week and?in the awk-
ward absence o f the star?introduced them-
selves to America. They were cast to fit
Reagan's vision of himself as chairman and
the Cabinet as his board of directors, and,
at anti-climactic first glance, they looked
the part They were light on box office and
heavy with gray hair, sober suiting, Ivy
League diplomas, corporate pedigrees and
traditionalist Republican views. "Not
much there," shrugged a senior Reagan
adviser involved in assembling them?not
much, that is, except a shared habit of suc-
cess and a common bent for solving prob-
lems as against enforcing ideological purity.
Men of Affairs: The choices were in fact
fresh evidence of Reagan's determination
to let his New Right admirers howl (as
some did) and to look instead to moderate-
right men of affairs for answers to the hard
realities he is about to inherit. The Capital,
when he paid his second call as President-
elect during the week, was caught up in
a new wave of jitters about a Russian in-
vasion of Poland (page 48). The prime lend-
ing rate was back at its April record high
of 20 per cent and headed higher (page
65). Inflation remained at a double-digit
boil, the recovery was melting down into
a new recession, the stock market had gone
from bullish to bearish, and an impassioned
transition report from two congressmen
warned Reagan that he was in for an "eco-
nomic Dunkirk" unless he took drastic
emergency action in his first 100 days.
In the circumstances, Reagan largely ig-
nored the Moral Majoritarian right and ,
assembled what he called "a balance of'
experienced hands with fresh faces" in the
conventional Republican shopping cen-
ters--the boardrooms, the Congress and'
the rolls of Nixon-Ford alumni. His starting
line-up:
? His economic team is on balance old
school, with Donald T. Regan, the spiky-
sharp chairman of Merrill Lynch & Co.,
as Secretary of the Treasury, industrialist
Malcolm Baldrige of Connecticut at Com-
merce and U.S. Rep. David Stockman of j
Michigan at the Office of Management and
Budget. Stockman, 34, is the co-author
(with Rep. Jack Kemp) of the economic-
Dunkirk paper now on Reagan's desk and
is Kemp's brilliant ally in the cause of radi-
cal tax cutting to revivify the economy.
But Regan, 61, and Baldrige, 58, are men
of more traditional conservative stripe. Re-
gan, not StAlgpro
iressiuPet ft Wetase
emerge as first among equals?and he in-
sisted from the moment of his introduction
last week that tax cuts must be yoked to
offsetting cuts in the budget.
? The national-security command will be
more hawk than superhawk, with old
Washington hands Caspar W. Weinberger
at Defense and William J. Casey at the
CIA?and with Gen. Alexander Haig as
the resurrected best bet for the flagship I
position as Secretary of State. Casey, 67, j
is an old OSS hand and a lifelong espionagel
buff with no heavy ideological baggage;
Weinberger, 63, is a bottom-line manage- ,
ment man whose main charge will be to:
preside over the Pentagon budget?the only
one in town ticketed to grow?and to keep
its coming flush times as orderly and fat
free as possible. The geopolitics in this mix
would come principally from Haig, 56, a
sometime Nixon-Kissinger protege whose
world view is a more subtly woven version
of Reagan's own: rearm America, watch
the Russians and keep your powder dry.
im The start-up domestic-policy group
showed a clear predilection for prudence
over zeal, for managers over wreckers. Rea-
gan's Attorney General, as widely predict-
ed, will be his friend and personal attorney
William French Smith, 63, a patrician Los
Angeles labor lawyer of boardroom-con-
servative bent and cautious temperament.
His nominee for Secretary of Transporta-
tion was Andrew Lewis, 49, a Pennsylvania
management consultant who migrated only
slowly to Reagan from the moderate wing
of the party and backed Gerald Ford I
against him last time around. His man for
Secretary of Health and Human Services
was U.S. Sen. Richard Schweiker, 54, of
Pennsylvania, a belatedly converted ex-lib-
eral who helped shape some of the social
programs HHS administers and is said to
believe in them still; he had been Reagan's
choice for Vice President in 1976, and he
was the only man on all Reagan's Cabinet
lists who came personally recommended
by Edward Kennedy.
The selections taken together were pre-
cisely what Reagan wanted in his passage
from fundamentalist politician to centrist
President: a company of good, gray, solid
citizens with eight team players and no
known prima donnas. The collective profile
of his starting eight was white, male, East-
ern, Ivied and middle-aged; they average
56 years, and half are over 60. They are
at least as outsiderly as Jimmy Carter's
government, though rather less pushy
about it; only Weinberger has ever sat at
a Cabinet table and only Casey brins any
2004/osiowleem
ift120-00101R000500010002 3
ence to his new job. Six come straight from
business or business law, and a surprising
number carry Reagan's 1.0. ef.'s for cam-
paign services rendered?Casey as his man-
ager, Lewis as his man at the Republican
National Committee, Schei eiker as his
"running mate" on the nom icket of 1976,
Baldrige as Connecticut .-hairman for
George Bush in the 1980 primaries and
for the Reagan-Bush ticket thereafter.
If their nominations were well received
on the editorial pages, their mass baptism
at Washington's Mayflower Hotel played
badly as theater; the drum roll had been
too long, the leaks too profuse and too ac-
curate, and the casting too bland in the
conspicuous absence of the President-elect
himself. Reagan, by official account, feared
that his presence might upstage his nom-
inees?"It's their show," said press spokes-
man Jim Brady?and so staved out of sight
in his borrowed quarters iii Blair House,
granting an audience to two dozen black
leaders. The more prevalent guess, shared
by some of his own people, was that he
preferred not to take quesi ions about the
fitful pace of his Cabinet making thus far?
and particularly about his off-again-on-
again dalliance with Al Haig, for State.
Which Way In? Whate?. er the case, he
sent his written sentimentS by proxy and
left his eight nominees to meet the press
without him. For a half hour, they stood
in a stiff, dark-suited row under the plaster
cupidons in the Mayflower's State Room,
vamping nonresponses to questions they
were too new or too canny 'o answer. There
were almost no clues as to the direction
of public policy beyond Regan's signal on
budget cutting and Schweiker's four-square
endorsement of jogging. Drew Lewis fi-
nessed one question, pleading that he had
been too busy filling ou r his disclosure
forms to start thinking trai sportation; Bal-
drige ducked another, "inasmuch as I have
not found the front door to the Department
of Commerce yet." The session maundered
on to a mercifully early elose, with none
of the drama that normally attends the birth
of a government. "We needed Reagan to
lend some class," one aide said. "It was
a pretty lackluster show.'
CO'g
The Nev Right counted it something
worse than that: the betrayal eration. Special Watergate prosecutor Leon
roivectuFtir,fReleadndiJiic ed Haig in rint
by ReaApp
e
which people had soldiered in
his crusades since 1966. "These
are Fortune 500 people,"
stormed Richard Viguerie, the
hard-right direct-mail wizard.
"We've just been closed out."
Some of the new righteous did
take heart at having Stockman
at Reagan's court, preaching
the gospel of the redemptive
tax cut, and some were pacified
by Schweiker's opposition to
abortion and school busing.
But Regan particularly was a
pink flag for the right, for hav-
ing contributed to Democratic
as well as Republican candi-
dates in the past and for his
suspected heresies against pure
Kemp-Roth economics now.
"His nomination makes no
sense to me whatever," said
John T. (Terry) Dolan of the
National Conservative Political Action
Committee. "I don't see how President-
elect Reagan can explain the nomination
of Secretary-designate Regan."
The New Right and some of its allies
in the Senate had tried in fact to light a
backfire against Regan once his name
leaked out, with the implicit threat that
he would be put through some feet-to-the-
fire questioning at his confirmation hear-
ings. But Regan had a powerful friend at
court in Bill Casey and a strong portfolio
of his own as the master builder of Wall
Street's biggest securities firm. In the end,
he outlasted half a dozen competitors and
nailed down the job before the opposition
got fully mobilized.
Byrd Hunting: The infighting over Al
Haig's probable posting to State was more
furious still, but at the weekend, insiders
said, only some last "mechanical problems"
were left between him and the nomination.
There was a measure of risk for Reagan
in choosing him?the now near certainty
that Democrats would seize on his con-
firmation hearings to rake up his record
as Nixon's chief of staff and principal prop
almost to the end of the Watergate crisis.
Minority Leader-to-be Robert Byrd reit- '
erated his threat to put Haig to "intense"
scrutiny, armed with his strong prose-
cutorial gifts and his command of the
Watergate literature. "The Reagan people
don't have any understanding of Congress
or what Byrd can do to them," a top-rank
Nixon Administration alumnus said. "Bob
Byrd doesn't go hunting for rabbit if he
thinks he's going to find a bear."
But with his fortunes apparently fading,
Haig and his advocates on the Hill?the
ultraconservative Sen. Jesse Helms of
North Carolina principally among them?
mounted a brisk and winning rescue op-
the secret White House tapes, suddenly ma-
terialized and pronounced the general an
"unsung hero" for having helped ease Nix-
on out of office. Ford told Reagan by phone
that, while Henry Kissinger remains his
first choice, he 'could support Haig with
no reservations about Watergate or any-
thing else. ("Jerry Ford," quipped Wash-
ington political satirist Mark Russell, "just
pardoned Alexander Haig.") Helms called
Nixon himself to inquire if anything on
any tapes as yet unheard might damage
the general. "Not a thing," Nixon an-
swered, "and I'm the world's
greatest expert on the tapes."
Byrd's whiff-of-grapeshot
threats did shake some of Rea-
gan's people?even, by inside
account, the indomitably stolid
transition chief Ed Meese. But
their operatives did what one
source called "a second water
testing" on the Hill and came
back to Reagan's M Street i
transition headquarters with
the word that the storm warn-
ings were overblown?that Haig could be
confirmed with minimum damage. "As far
as the country is concerned," a Reagan
hand concluded, "the Watergate horrors !
are over." Democrats talked in the cloak- 1,
room about pressing on and even inquired I
as to the availability of Carmine Bellino,
a demon investigator who has served three
Kennedys in the Senate. lint Reagan was
said to have settled at last on Haig because
he needed somebody with a world view
to lead his foreign-policy team and had
no one else at hand. "Cap Weinberger is
a hell of a manager," a Reagan topsider
said, "but he isn't much of a big-picture
man. You get that with Haig."
Haig was accordingly thought likely to
be nominated as early as this week. But
the public seesawing over the choice
looked a shade amateurish and dimmed
a bit of the glow that had bathed Reagan
on his first triumphal tour of the Capital
last month. This time, he found himself
grumpily obliged to deny that his Cabinet
making was running on any longer than
the norm. He was beset as well by a spate
of unflattering stories on, his troubles wres-
tling down Washington's bigger-is-better
imperative in their first microcosmic test
of arms. His transition shop was disclosed.
to have so overloaded its payroll and so
overspent its allotted 32 million in Federal
funds that it will have to
scrape up a half million more
from leftover campaign funds
and private donations to stay
afloat. "It's like a minister go- ?
ing to Las. Vegas," a staffer :
said wryly of the bureaucratic
bloat. "To fight sin, you've got "
to know it."
Decorating: Reagan elected
in any case to lower his profile
New York
01'6
R000500004.ant. 1 and Nan-
cy ventured out to Beautifully Peopled din-
ner parties in both cities, but he President-
elect otherwise limited himself mostly to
his suite in the Waldorf-Astoria and his
rooms in Blair House, receiving various
supplicants and lunching mai i-to-man with
his newlywed son, Ron. He did fit in a ;
tour of the White House with Nancy and
her decorator (box). Her dcmain was the
living quarters. His was the Cabinet Room,
and his now plain design w. is to do it up
with a group portrait in corporate Repub-
lican gray.
PETER GOLDMAN with ELEANOR CLIFT,
THOMAS M. DtFRANK and HOWARD FINEMAN
in Washington and MA.R1 IN KAS1NDORF
with Reagan
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Approved F
0500010002-3
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i.121TICLE LD TlikE
03 NApvtped For Release 2001t03M6EADIA-13434)91-001EMODUS0
,:
I
-:
,b400-
'For Secretary of the Treasury: Merrill Lynch Chairman Donald Thomas Regan
: -A Broker for Treasury
,
. :Whose economic views are mostly unknown
Ihe ad for - iii kerage house reads MERRILL LYNCH
-r the nation's largest bro-
'IS BULLISH ON AMERICA. In naming a
Treasury Secretary, Ronald Reagan
,wanted to send a similar message of con-
fidence to the nation, especially its busi-
ness community. Who better to carry it
than Merrill Lynch's own chairman, Don-
ald Thomas Regan?
, The choice came at the eleventh hour,
. after former Treasury Secretary William
Simon and Citicorp Chairman Walter
Wriston had been counted out Some
members of Reagan's transition team
were surprised and soured by the deci-
sion. They felt that the post should have
gone to former Treasury Undersecretary
Charts Walker or Reagan Economic Ad-
viser Alan Greenspan_ The selection of
Regan. 61, seems to have
iwork of lieagan's campal
CIA Director-designate tam asey,
who got to know the Merrill Lynch chief
when Casey was chairman of the Secu-
Pities and Exchange Commission in the
early 1976s.
en the hand-
chairman,
- An English major at Harvard ('40)
and avid golfer (he shoots in the low 90s),
Regan learned his hard-driving manage-
ment style as a Marine lieutenant colo-
nel during combat in the Pacific. Says
Regan, whose Irish temper flares quickly
at subordinates who do not meet his ex-
pectations: "I don't hIce laziness or slop-
piness or slovenliness." After World War
II, he joined Merrill Lynch, became its
president in 1968 and chairman in 1971.
Under his leadership, the firm, already
biggest in the U.S. securities industry, be-
came a financial supermarket with thriv-
ing new lines of business in insurance, real
estate and consumer lending. Having ac-
complished what he set out to do, Regan
had begun to think of stepping down. Two
years ago he and his wife Ann, who have
...four grown children, bought a house in
?":-Mount Vernon, Va., for their retirement.
Businessmen regard Regan as sensi-
tive to their need to raise new capital to
spur investment, industrial growth and
productivity?all the things that the
"Reaganauts" claim must be done if in-
flation is to be stemmed and the econ-
omy steered along a path of robust re-
covery. There are, however, some
reservations about Regan among career
officials at Treasury. As Merrill Lynch's
chairman, he rarely expressed thoughts
about economic policies beyond stating
their impact on the securities industry.
For instance, in a speech last month to
the senior staff of the New York Stock Ex-
change, he declared, "Most of us feel that
we are moving into the most encouraging
environment for a free-enterprise econ-
omy in a generation or more. It should
spur investment and productivity and
growth, all of which should be reflected
in vigorous stock markets." Says a pri-
vate economist in Washington: "None of
us has any notion of what his economic
philosophy is. He's a conservative Repub-
lican and believes in lower taxes, but?
what else?"
Regan's experience before congres-
sional committees has been largely
limited to, discussing such Wall- Street
esoterica as negotiated commissions in
the buying and selling of stock. He has
publicly favored a proposal to lower cap-
ital gains taxes from 28% to 21%, which
would chiefly benefit the nation's nearly
30 million shareholders. He also backs
tax incentives, such as more rapid de-
preciation schedules for businessmen,
broadening individual tax brackets to off-
set inflationary bracket creep and in-
dividual tax cuts, but only if a statutory
limit is put on the growth of federal spend-
ing. However, friends are confident that
at his confirmation hearing he will am-
ply demonstrate that his views are broad-
er than the special interests of Wall Street
and the "thundering herd" of Merrill
Lynch.
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ART I C EiE NEWSWEEk
:.-v,c;?E, a 0 22 December 1980
Lawyer, Author, Executive?Spy
As a poor-sighted Navy lieutenant in
World War II, William J. Casey ma-
neuvered a transfer to the U.S. Office of
Strategic Services, the nation's fledgling es-
pionage service. By the war's end he was
commanding a crash program to send Al-
lied spies into Nazi Germany. Then, there
were years of solid?if less dramatic?suc-
cess as a millionaire tax lawyer, author,
chairman of the Securities and Exchange
Commission, Under Secretary of State and
chairman of the Export-Import Bank. But
now Casey is returning to his first love;
in the Reagan Administration he will direct
the espionage outfit that grew out of the
OSS?the Central Intelligence Agency.
Casey faces the challenge of restoring
_might and morale to an agency not yet
recovered from disclosures of excesses and
a series of manpower cutbacks. Members
of Reagan's CIA transition team have rec-
ommended strengthening the CIA's covert
activities and counterintelligence oper-
ations as well as a wholesale reorganiza-
tion?perhaps splitting off clandestine op-
erations and leaving the CIA as an
analytical unit competing with
other intelligence agencies.
Such talk has made CIA of-
ficials anxious, but they greet-
ed Casey's nomination with
relief. That Reagan named his
trusted campaign manager to
the post?and gave him Cabinet rank?
shows that the President-elect "takes the
CIA seriously and is not about to reduce
the director's authority," guessed one of-
ficial. And though Casey's own espionage
experience is dated, he has served on recent
intelligence panels. For his part, Casey
concurs with the need to beef up coun-
terintelligence activities but told NEWS-
WEEK he has no plans for "a drastic
reorganization."
Casey could have some problems at his
confirmation hearings, although he has
been confirmed by the Senate in four pre-
Casey: An old hand is welcome at the CIA
Bruce Hoertel
vious appointments. As SEC' chairman in
1972 he infuriated congressmen investigat-
ing campaign contributions from the In-
ternational Telephone and Telegraph Corp.
By giving the SEC's files on ITT to Richard
Nixon's Justice Departmeni for possible
criminal action, Casey held up the Con-
gressional examination for months. Also
that year, he met with an attorney for fu-
gitive financier Robert Vesco, at John
Mitchell's request, on the very day that '
Vesco made a 5200,000 contribution to Nix-
on. Casey says he knew nothing of the con-
tribution then and that the meeting merely
facilitated an SEC investigation of Vesco.
Vigor: Casey's manner belies his broad
experience. At 67, he is gruff, shambling
and surprisingly inarticulate, but friends say
his appearance disguises a razor-sharp mind
and a shrewd sense of combat. "Words do
not often catch up with the speed at which
his mind works," says intelligence expert
and friend Leo Cherne. "You think you'rel
dealing with this old has-been and before'
you know it, he has you in his back pocket,"
agrees one Reagan aide. An avid reader
and author of scores of "desk books" on
tax law, Casey surprised critics with his
vigor at the SEC. As Reagan's campaign
manager this year, he was widely credited;
with restoring order after John Sears was
fired as campaign boss. "He's an instinctive
intelligence director, organizer and agent,"
says friend and oil entrepreneur John Sha-
heen. "He has a common touch, but he
knows how to use muscle."
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I Ak I IN I L
0,ETARP,r9YeSt...2. Egsr Releasej.2901MCWWMA-RiD15191-00901R --
00 JIM-050
3 AGI, 22 December 1980
Tomorrow?
A?LOOK Al-lEA.D EI-tOM THE NATION'S CAPITAL
At the Central Intelligence Agency, William Casey, Reagan's campaign
manager, was an intelligence agent in World War II, has been a lawyer-
politician since. Carter named Adm. Stansfield Turner, a career Navy officer.
CZTT
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ANZICLZ
PAQZ
CONGRESSIONAL QUARLERLY
d For Release 20011174/01PCIA-RDP91-00901
20 DECEMBER 1980 STATINTL
William J. Casey:
Central Intelligence Director
President-elect Reagan apparently is getting off on
the right foot with the American intelligence establishment
iv naming 67-year-old lawyer and self-made millionaire
William Joseph Casey as director of central...intelligence.
Indeed, some prominent former intelligence officials
are elated by the choice if Ca.-aiv, who they say may be
just the tonic to fortify anemic morale at the Central In-
telligence Agency and in the intelligence community at
large.
William E. Colby, a former CIA director who practices
law in Washington, said Reagan's choice was "a very good
one because Casey "has
a unique background and
one very appropriate for
the inb."
Casey's background
Oh ?I
*World War II service
in the Office of Strategic
Ser ices MSS), the CIA's
wartime predecessor,
working to infiltrate IS
agents into Europe.
&Successful careers as
a tax lawyer, teacher.
writer and businessman
'that have earned him a
fort uric'.
*Long and close associations with establishment Re-
publicans that led him to terms in the early 1970s as
chairman of the Securities and Exchange Commission, un-
der secretary of state for economic affairs and president
of the Export-Import Bank.
*An ardent interest in intelligence matters, demon-
strated by active participation in groups such as Veterans
of the OSS and the Association of Former Intelligence
Officers, plus service on President Ford's Foreign Intel-
ligence Advisory Board.
*A brief but successful stint as Reagan's presidential
campaign manager that earned him Reagan's respect and
his ear, and got Casey the job he has coveted for years.
Such experience, concludes John ,Bross, ,a former OSS
and CIA officer who knows Casey. makes the director-
designate an "ideal choice for this job."
Mixed Reception
While he is known and generally admired among his
intelligence community contemporaries, one active CIA of-
ficer said Casey was a stranger to younger officers.
"I can tell you honestly, the reception's going to be
mixed lot the CIA]," this officer said. "Nobody knows
anything about him. It's really a 'wait and see' attitude."
But Casey has his doubters, including those who won-
der whether a man who has done no intelligence work
since *World War II can run a modern spy agency. Another
question is whether Casey, whose rumpled, relaxed manner
and wispy white hair make him look every bit his 67
years, has the energy to oversee the CIA and some 10
other ?intelligence community components.
Lawrence Ilouston. an OSS veteran and former CIA
general counsel, is one skeptic. "People that worked with
hon seemed to think pretty highly of him," !lonston said.
"I've aka\ s frankly been a little puzzled by Bill. He knows
all the right names to call. I've never been particularly
impressed by him otherwise."
Accieiding to author Joseph Persice, C,..-:ey's appear-
ance always has been deceiving. In 11rt'ru-ug the Reich.
a book about the OSS operation Casey worked in. Persico
wrote:
'In Casey, OSS had a man, with an analytical mind.
tenacious %,s ill and a capacity to generate high morale
among his staff. He delegated authority easily to 'rusted
subordinates and set a f:imple standard - - results. He
had no patience with the well-born effete who had locked
to OSS, people he dublaal the 'white-shoe boys,'
The criticism that Casey may be "out of touch" with
modern inte!figence operations resembles doubts expressed
when he became Reagan's campaign manager Feb. 26.
Campaign insiders said Casey did not understand
modern media campaigns. the heart of modern political
contests. Casey responded at the tithe: "I'm not supposed
to know tr.erything. I'm bringing into the c.impaign guys
who have lieen there before, who know all thcse mysterious
things Pm not supposed to know."
But a lack of recent intelligence agency experience
could prove a politicill virtue. Casey is untainted by the
CIA abuses of the 1960s ? such as attempts to overthrow
or assassinate foreign leaders ? that smudgcsi the agency's
image when they -were exposed in the 1970s.
Consequently, even an unforgiving CIA critic. such as
Louis Wolf, editor if a magazine dedicated to exposing
('IA operations and publicly identifying U.S. agents, had
difficulty criticizing the appointment. "I'm still in ilie pro-
cess fir looking. into his background," Wolf said.
Nlorton II. Halperin, an equally vigilant but less stri-
dent intelle:ence community critic who is active in the
American Civil Liberties Union, said he would "wait and
see- ahuut Casey. "I really don't have an (minion,"
Halperin said. "I don't know enough about his record."
Background, Personality
Born tin March 13, 1913, and raised in Elmhurst, ,
Queens. in New York City, Casey was such an energetic
child that, by one account, his peers called him "Cyclone."
Casey earned a B.A. degree from Fordham University
in 1934 and a law degree from St. John's University Law
School in 1937. He began practicing law the following year
when he was admitted to the New York St:ve Bar.
He was commissioned a lieutenant, in tile H.S. Navy
when the war began in 1941 but poor eyesight confined
hint to a desk job in Washington. Through friends in legal
circles, Casey connected with Maj. Gen. William J. "Wild
Bill" Donovan, the Wall Street lawyer President Franklin
0. Roosevelt tapped to form and run the 055. This led
Casey into the OSS.
Casey left the OSS with a reputation as a forceful
manager who could make tough decisions with speed and
see that they were carried out. He remains supremely con-
fident. When Reagan named some new campaign aides
in July, Casey announced with authority: "Everyone re-
ports to rue. Every campaign has to have a final arbiter,
and that's me."
COTITTROYD
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ThoAp roved (for IReleaser2G01i0a/06y: C IAA DP94,009Arl R000500010LID2 A I, titles
were Tar Planning on Excpss Prafits and Tax Sr f?lter(al
Inocst awn! s. I M he also wrote How to itoi..e Money
,Ilehe Meney tinl How rfaicral Tax Atzg!,-; Niattiply
Rca, Estatc Profits
r y has practiced law throughout his career. and
among hi, partners was Leonard W. Hall, a legend in
OP circies in New York. Casey was active in GOP onli''ics
himself. hle worked for Thomas Dewey's 1940 and 1948
presidential bids. He ran a fereign policy group ii Vice
President Richard M. Nixon's 1960 presidential campaign.
In 1966, Casey ran unsuccessfully for the U.S. Hoese.
Ile worked again in 1968 for Nixon, who pit him or the
Advisory Committee on Arms Control and Disarmament
in 1969.
President Nixon named Casey to the Securit,es Ex-
change Commission (SEC) on Feb. 2, 1971. AfLer E some-
times stormy tenure as SEC chairman, Casey was named
under secretary of state for economic affairs in 197:-e How-
ever, when Henry A. Kissinger became secretary ot state,
Casey as moved into the presidency of the government's
Export-finport Bank.
was not in act the final arbiter on political decisions. ,
Bie he won praise for taking tough steps that rescued '
he' campaign. He fired 100 campaign aides and refused
to pay others for awhile. His tourniquet stopped the fi-
nancial hemorrhaging.
Career
Casey has been in itad out of government ever since
World War IL In 1947-48 he was special counsel to the
Ste ate Small Business Committee and liOer associate gen-
eral counsel for the Marshall Plan.
He taught tax law at New York University between
1048 and 1962. In this period he wrote and published sonic
Controversy
Casey's publishing ventures led to one dispute that
caused him difficulty when he was nominated to th, SEC.
The Senate Banking Committee approved Casey's
nomination by a 9-3 vote soon after Nixon made it but
reopened its hearings after news stories disclosed that
Casey had been a defendant in three civil suits between
1962 and 1965.
One suit involved a plagiarism charge again.4 one of
Casey's publishing ventures. Another charged that a firm
in which Casey was a director and principal stockholder
had sobi unregistered stock, a violation of securities laws.
The snits were settled out of court, and Casey con-
tended before the Senate committee that he was unaware
of the actions of his subordinates. The Banking Committee
ultimately reconfirmed Casey to the SEC on March 9.
While he was SEC chairman, some congressional
Democrats also charged that Casey had attempted io con-
ceal information about the relationship of the Nixon ad-
ministration to the International Telephone and Telegraph
Corp.
A special House subcommittee was investigating re-
ports that ITT had offered to trade a $400,000 campaign
contribution to Nixon for settlement of an antitrust suit,
and Casey shipped 34 cartons of SEC documents to the
Justice Department before the panel could subpoena them_
Justice said it would refuse to turn over the documents
because they were being used in a criminal investigation.
It was later revealed that some of the documents con-
tained infermation about conversations between ITT of-
ficials and Attorney General John N. Mitchell, Secretary
of the Treasury John B. Connally, Vice President Spiro
T. Agnew and John D. Erhlichman of the White House
staff.
In areq her case, Casey met in 1972 with a lawyer
for Robert L. Vesco about a pending SEC investieation
of the financier. The meeting was on the day Vesco secretly
gave $200,000 to the Nixon campaign, but Casey has main-
tamed he learned of the donation only later, from .news',,
accounts.
.?
There was conflicting testimony in each case. and
Casey was never charged or penalized for his role in either. I
--By Richard Whittle
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Approved For Release 2001119,4/q6E:Nc4A-RDP91-00901R
20 Dec ember 1980
Conservatives Do Doubletake
Over Treasury Choice
Conservatives can probably live with most of
the President-elect's nominees, but the one name
they still seriously question is the choice of Donald
Regan for secretary of the treasury.
Clearly, the "right" is less than bullish about
the 62-year-old chairman and chief executive of
Merrill Lynch & Co. What particularly bothers
them about Regan, who was apparently pushed
through at the last minute by the governor's
choice for CIA, William Casey, is that he has
never been much of a conservative supporter, has
made few public policy pronouncements of sig-
nificance and has allowed Merrill LyncliTsix-eniart+i
, political action committee?of which he is a mem-
ber?to back leading liberal Democrats, .
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r Release 2001/03/06 : CIA-RDP91-00901R0
Anqh.P, 'M(111361?
CHRISTIAN SCIENCE MONITOR
011 I' NWT, / 19 DECEMBER 1980
?
Reagan ?supercabine
to have low profile?
By Godfrey SperlingJr.
Staff correspondent of -
The Christian Science Monitor
, :Washington
President-elect- Ronald Reag an's
"supercabinet"" concept is undergoing
stresses and strains even before it be-
comes a reality. - _
There now is a strong possibility that
it will be...a de facto_ "supercabinet," not
a fornial one.
Thatis,'? Mr. Reagan-intends to have
an elite 'advisory group within the offi-
cial Cabinet that will counsel him in
making decisions on subjects across the
board.,
But due to objections he is hearing,
the ,President-elect now may put this
plan Into action quietly making it part
of his government but playing down its
e:dstence so as not to antagonize the
other Cabinet members. _
The Reagan chief of staff-designate,
James Baker, is one of ..those who is
pushing for this quiet approach to the
adoption of "supergovernment."
"Otherwise," he says. "you are go-
ing to downgrade 11 other Cabinet mem-
bers ? and in so doing you irritate their
constituencies . within _ . their
STATI NTL
cepartments."
"Also," said Mr. Baker, "you antagonize the committee
chairmen in Congress whose activity is related to the Cabinet
members who are left out of the supergovernment." '
_ -
At is understood that it is Reagan's intention to put to-
gether a hard-core advisory unit that would consist of Secre-
tary of State Alexander M. Haig, Secretary of Defense
Caspar W. Weinberger, Secretary of Treasury Donald T.
Regan, Attorney General William French Smith, and, very
likely. CIA director William Casey. _ _
'7- Edwin Meese III, who will be a dabinet-rartk counselor to
Reagan, is strongly backing the formal "supercabinet" con-
cept. In fact, it seems that all that now needs to be decided is
. whether the President-elect will emphasize or play down his
..inove to this kind of government ? one which copies his ap-
proach as governor of California.
- -
"If we decide to do it [publicly announce a supercabinetl,"=,.:
said Baker, "I'll do what I can to see that it works,-
Otherwise:Baker pointed out, he had no doubt that the.
President would set up this kind of government anyway -
-that is, he would be meeting with only a select few of his
Cabinet most of the time. - ? '
-Baker made it clear that he could live much more com-
fortably with a supercabinet of this kind ? soft-pedaled so as
not to embarrass the other members of the Cabinet.
Who will win out in this early Reagan White House inner
struggle? .
. One observer points out that an answer may-lie in the
offices Baker and Meese are going to occupy. Baker gets
Jack Watson's chief-of-staff office, a choice location.
But the "prime property," now occupied by Zbigniew
Brzezinski and earlier by Henry A . Kissinger, goes to Meese.
- Meese is extremely close to Reagan and has been for
years. ?. - ?
But Baker has won Reagan's admiration and respect in
recent months during the campaign ? and his "say" is being
given a iota weight by the President-elect.
In the superabillet concept, Meese Wotild Central 1
, role as coorainator, moderator, and, at times, consultant to
thePresident. ? -. -
Both Baker and Meese are known for being good natured
and easy to get along with. Thus, they are working out how
the supercabinet will be implemented in an amicable way
that will not threaten to erode their exceptionally good
relationship. .; = -
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STATINTL
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ARTIC7,7, THE WASHINGTON STAR (GREEN LINE)
ON 18 December 1980
THE EAR 1
? OVERHEARD AMONG THE
REAGAINISTES . . Bill Casey will
be the first CIA Chief who won't
need a scrambler.". . . "Why's
Reagan naming a conservative ?
dentist to head Energy? "Durtno.
Drilling Experience?" Heh Heb..
They do have a good time. Back "
tomorrow.
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STATINTL
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et;
" .?"'"
PHILADELPHIA INUU
18 Decem.ber 1980
0
te0ye-
, ; eenit*rewee
eeet ''eeeeeeeee,c,?'T
By David Ilofferan
Knight-Ridder New, Seivirwr '
?
) I ; ?
WASHINGTONe?Art the early days
of the War:IL American spy..
?-,;effort, Gene .Williarn (Wild Bill-)
Donovan, chief of the Office of Stra-
tegic Services (OSS). - recruited a
1 young New Yorklawyer, to h.elp him
spy on Nazi Germank.
The lawyer, was , William Joseph
Casey.:. ,a ? hard-driving, . impatient.
Navy lieutenant who: supervised
dozens of - successful- intelligence
forays intoHitlerGermany. .
"Casey has always been an admirer
of Donovare"; recalls author Joseph
? E. Persica who chronicled the war;
time spy operations. "It would be the
realization of -a dream for him to
become the General Donovan of his,
day." e 7 ?
President-elect ; Ronald' Reagan
took a step'. toward making that
dream a reality by nominating Casey,
67, to be director of the Central Intel-
ligence Agency (CIA), successor to
the old -OSS in which Casey once
served.. ; ece
In those hectic World War II days;
Casey was the chief of secret intelli-
gence for the European Theater..
From his-post- in London,. he sent
more than 100. agents_behind enemy.
lines.- ? .; A ;V',
?When ihe war . was won, he- re--
turned to private life, earning a per-.-
sonal fortune over the next 35 years
rofile
is one inc series of profiles of
?top officials in the incoming adminis,.
- -
- William J.
"He'd throw out the book if it
didn't work," Persico says. "He is no
respecter of sacred cows- or tra-
ditions if they don't work"1..-
Casey returned to private practice
in 1977 and remained there until
as a high-pricedcorporate lawyer, a early in 1980 when Reagan, faced
with serious financial problems in
prolific publisher-of "how-to" books
his presidential campaign. sought.
for, lawyers and lensinessmen . on
taxes and economic subjects and e. help by naming Casey campaign
successful venture capitalist, He was. chairman. - - .
also a -loyal_servant in the adminis-
According to friends and transi-
tration of President-Nixon. lion sources. Reagan had several
Under Nixon, he-was chairman of other reasons for appointing Casey to
the Securities -and Exchange Gem..., carry out his campaign pledge to
mission (SEC) in 1971 and 1972. un--
dersecretary of state. for economic
. affairs from 1972-tor 1974 and then.
?president and chairman of the Ex-
port-Import Bank. "
strengthen America's embattled in-
telligence service. ?
First. Reagan felt that he needed a
trusted adviser who would riot ob-
struct his "window on the world" in
? ce Of
Most
aRDWO1
merit a guy w o won't be
if not always conventional. ? afraid to deliver the bad news,' one
source saysoiA).:,
? ? More important. however, was thel
feeling among Reagan's advisers that '
the intelligence service had been
demoralized and shackled by restric-
tions on covert operations and intel-
ligence-gathering methods imposed
by Congress in recent years. -
While Casey certainly is not ex-
pected to resurrect the abuses that
touched off a string of investigations
in recent years, the Reagan advisers
suggest that his results-oriented out-
look could at least sharpen the agen-
cy's sense of purpose, the sources sav.-
Casey's independent style.- has.
caused some problems in the past.
in 1971, when.the Senate Banking
Committee .was:' considering ? hisi
nomination. to head. the-SEC, .Serr.
William Proxmire (D-W1s.1 chargedl
that Casey "has cut corners when he
considered it to be necessary to busi-_
ness- profit.. He has - wheeled .and
dealed his way into-a-personal for-
tune, sometimes at the expense of his
clients."? Casey was confirmed, but
only after a long hearing-- .
The hearing brought out that Ca-
sey had freely gambled millions of
dollars from his own fortune on
more than two dozen inventions and-
business proposals just getting off
the ground. Most of them involved-
computers and new communications
technology, an interest that Casey
.retained from his work in the OSS.
Casey's temper can rum high when
he feels that others are questioning
his integrity or motives. During a
deposition in a plagiarism' case, en
angry Casey swore at a questioning
lawyer and threatened to t:kick your
out of here." ? ? e ?
.
Much like the self-made California
industrialists who aree personally
close to Reagan, Casey came from.
humble origins in New Yorke.- e ? -
After graduating from-.Fordham:
University in` 1934, he worked his
way through night law school at St.
John's University while earning his.
living as-,a New York home-relief
investigator. He received his law-
degree in 1937, during,the depths of
the Depression, when young lawyers
were making 55 a week. e - '
Casey walked into Reagan's- 1980
campaign on the night of the New.
Hampshire primary, ',?when- Reagan. I
fired manager John Sears and twa ?
other lieutenants. Casey was brought .
-in to stem the financial hemorrhage!
ing in the campaign. and -presided :!
over the dismissal of 100 aides._
Yet Casey, in his pin-stripe suits)
was always something of an anomaly.
in the Reagan circle.-In a group oil
primarily western coma/see
-0090*R0005900 n.-i
_moderate Republicanism.-....
OTINUED
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4T I CLE APP.:11;4D
THE WASHINGTON STAR (GREEN LINE)
18 December 1980
STATI NTL
TT;
Ternoilori?-FearediT:
By Key --Regan Ade
rVIttrtt T r ; ":? :re%
By Jeremiah O'Leary -we-eerie:
..4WitAiiniteiri?Star Stall Writer ? r'7,t
"6 .
dt7,
tion is having second thoughts about-.
-. the idea of having a "super-Cabinet"
help the president make major poli-
- C-YllecisionS;adairding-sto a top Reaz-T
- gam-aide.: .e
!lathes A. Baker...III,. whO,will be:1:j
' . chief of staff in The Reagan White
? House, yesterday told reporters some,
' "red flags" were being raised against
.- the proposal and that it had not yet:e.
been decided whether to adopt it. e
As set forth by Edwin Meese IIL ,
? who wifrbe counselor to Reagan in.
the neW administration, the super-
Cabinet; would include the secre-..
detense; state and treasury-.
the CIA director.
lTyoupromot1rbinet.memJ.
bers, you demote-ll others and mayL
make some congressional-Committee
? chairmen mad, ' said Baker. "The are
? guraents for it are tharthe presiderit
needs to reduce the-number of peo?
ple in the decision-making process:.
The president will always rely on:
some Cabinet members more than.
'others." Baker-said that;a decision.'
on whether to set up a super-Cabinet:;
e- will not be made until next montleee
:_re,The-Reagan transition team hadl-
, in mind a sort of executive commit-
; tee of the Tabiner,that Would sit,
regularly on matters involving nee-
i-. tonal sectrity and the economy.
Meese's original idea was that the,
Cabinet members ,concerned with
human problems, resources and de-e.
velopment would not, be directly af-:
fected ,by national decisions
requiring swift policy.action.
--In practice, the .:e'super-Cabinet''-"
e group corresponds -Almost exactly'
f. with the statutory. membership in.
the. National Security Council and;
irmay turn 'OUt -that.the NSC wia;
evolve into the smaller-group Meese
has.
? Reagan became accustomed to -
regular .meetings with Meese and -
his six-member Cabinet in his eight
years 'as governor of California.
-TheNSC requires attendance of.;
the Joint Chiefs of Staff, and in prac-
tice presidents have brought:in oth-
er Cabinet. members ,for-NSC
meetings from time to time.'
Baker. also said the ReaganWhite -
House wilt upgrade thecongressione...
al Heiser'. office. to :betiheaded by.
Max Friedesdorf . 'r
r c:11
He said,: the new: ddrainistration
considers the legislative liaison staff
so-important that it will- be moved
back into the White Houselrom the -'
Executive Office..Buildingelle. said
he thought it was a mistakefor the
. Carter administration to- move the
Congressional Relations office over
to the EOB.
The transition team -,also ian-,-
nounced -.yesterday that longtime -
Reagan aide and confidant Michael
K. Deaver has been appointed assis--
tent to the president and deputy
e chief _of- staff. Baker" Said Deaver,
who is now co-partner-in 'the-public
relations firm of :Deaver -.Fe- Han.
naford? will be in charge of Reagan's
appointments office, of advance-and
scheduling for the president, the_
. military office in the' White House
- and the First Lady's East Wing staff: -
' Baker said the transition ,team
Still searching for a White ,House
press secretary and has interviewed
--..a-number of-men - a ndewomen, -in-
eluding some journalists:Jim Brady;
?spokesman for the Washington tran-
sition _office,eelso is under .coneidi
-eeration for the job.e. "el eeleeree.
Baker;' who willebeeiia- ,overaa
charge of. the 'press Operetibrie said
;the intention is to have the7 press
_secretary-report directly to Raga.n;
70bvieusly,-. the. press-secretary
Won't:leave: .accessegoing:iriLeaid
Baker,e'But iLwe get the right,per-
son, there will be access to the presi-;
:dent."
The chief, of ,staff stopped:: short
?of-declaring that -Martin-Anderson
will-be domestic affairs adviser and:
7that Richard Allen Willibe.assis
tanr; tot the president 'for-national;
Approved For Release4EW -btAlitfatO
ar
irr those jobsrAlletradvised-Reagane
"on foreign. affairs during the cam-
Baker said Allen's future has not
yet been determined, but he added;
."Off 'the top-. of -my head,' I 'thinkt
Allen .will be ,appointed, but the
scope of the job wilthave a far lower
profile than Under-Henry A.
?
singer and Zbigniew Brzezinski:
-He said the transition team antici:
pateclboth criticism and Support for'
the nomination of retired Gen. Alex-
ander Haig to be Secretary-of State.
"We expect full, coraplete-hearings,"f.
"'','--
Republican leader's -at' Capitol:
Hill have assured us that the general,
willte confirmed; but the president-
elect gave some consideration to thee L
, fact, .that the. hearings could lest
longer .than- usuaLeSome senators,
as a result-of their staff work; have:
assured us that there is nothing se-
rious in -Haig's record as White-
House' chief of:' staff- in the.. -last ;
months of President Nixon's term." e
. Baker said that-Reagan has made
it clear to all' nominees for Cabinet
rank that they wia have- a voice in
thc- selection Of sub-cabinet assis-
tants but that the-White House also
will- have much tee say. about the
choice of undersecretaries, assistant:
secretaries and depndes- in the-vare?
ious departments:
The new White- House will have,
at . least one position that does. note)
exist in the Carter administration,:
The.Reaga 12 teaneexpects to- appointie
a staff secretary: to raise .-Ichargeofe,
the paper flow te ?7
There also will bestaff
end al cabinet .secretary; but Baker
said he will rely on the.neve position et
'of Staff secretary to se that informa-
tion is routed to- all sections:of thee
White House staff-and government.
departments.
0901R000500010002-3
Approved For Release 2001/03/06 : CIA-RDP91-00901R
OFFICE OF CURRENT OPERATIONS
NEWS SERVICE
DISTRIBUTION II
r!t:=FinL?t::::=
, !
r 2 1.4W
TATI NTL
Date. 18 Dec. 80.
Item No L
Ref. No.
STATINTL
74;lh;iiNtIZ11% 17 1: . WAw 1;? NAc W7Nr17.pl OiDN5
,A=77TEr IN PR7PRRINf; TE INITIAL FERNS FOR THE P7Ar7TIME
INTELLIG7NC7 SERVICE
TWT 7V7NTUAssY B7CRME 7H7 C7NTRRs2TIGENCE
Mr;ENrY ? T1 7. 7..7'.GA7.7I7ATIO37 THAT HE 1I1L DIRECT FnR TH7 X7PGRN
ADMINISTRATION IF CONFIR17n AY TH7 SENATE.
SASEY -WAS 21 YERRS OLn F. HERD OF ELsIEO INT7LLIGENCE IN EUROP7
WHEN HE R7.717.T7n WITH THOSE Ps RN7 IN i344 UNO7R THE OIR7CTION OF
DoNovAN,t s7N7RR1 OF TH7 OFFIr7 nF
STRAT7s7,3r h7RVIr77. Oh.:_%.15 TH7 M717TRRY INTELLIGENCE AGENCY. FsSEY
n7R71-77n TH7 7NFTITRAT7nN nF 77f-R77 AG7NIS INTO 1%;7i7:MANy:
7. 77..VI2G MIsITARY SERVICE RND RFTURNING TO 1.. N7;4 YnRK LAN
PRAf-77r7 THAT 7V7NTIsRlYr it F.ERVED
ON P 71V7-MRN rnMmTTT77 TN 4,947 THAT MADE RECOMMENDRTIONS TO
!'RESIOENTiUM2 N TH7 N77n FnR FHD STRUCTURE OF A PERMANENT
MMERIrAN I7.7T7ssIf7,77.7C7 '1:7RVICE.
SHE EXTENT OF HIS EARLIER I1. 1 77..73E1757T NITH ORGRNI7ING P7RC7TIM7
INTELLIGENCE WAS REVERLE5 .IN A LETTER HE WROTE IN TO THE
CHAIRMAN OF THE SPNAT7 EANKINcq COMMIIT775 NHICH WAS HOsDING
rnNF7RMPTInN HERRINGS _ON HIS CONTROVERSIAL APPOINTMENT TO HEAD THE
?Sr.ruRITTpc ANn 7xrHpw77 r:rimm17,7,1770N:
nthLt THE Ls2Ki-Lissii OF CENTRAL INTELLIGENCE
C;c715
WHO HAO BE7N?X7RaRN'7. NATIONAL rRMARTnN MANRs77R5 WILL TAXE COMMAND OF
A VA7J Hu'T'AN 4% 12 7s.FrTRnNIf F. N7TWORK THAT 7.4 F. BELIEVE IS IN DIRE
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!HERE RR7 mANY PEOPLES 7NirsUn7Nf7 A NUMBER OF TnP X7AnRN WHO BELIEVE BELIEVE RESTRICTION7 PlAr7n BY fAlNDR77.7. nN CLANDESTINE ACTIVITIES
DURING THE PAST SIX YEARS HAVE MADE IT IMPOSSIBLE FOR THE
71.IT7s7. IG7N7.'7 rOMMUNITY Tn nn 71'7. SOB.
THF OTHER NO PROP07.R1F. TO LOOSEN THESE R7STRIC71.7. RRE LIKELY
TO MEET WELL-ORGANIZEO LnPAY7Nn FROM CIVIL LIBERTIES ORERNI7RT7nNF.;
. Apprame.d for,R.elease,200,1/03/06 ,;,,CIA-RDP-91, 00901 R00050001002
14H7CH HI! n !nr7 4rif
GIVE UP THE POWER. IT HAS A7-7UM7n OVER INT7!sIG7NC7 OPERATIONS.
Approved For Release 2001/03/06 : CIA-RDP9?Idgffri0
?t-iroveent:
LOS ANGELES TIMES
17 December 1980
;.0
? -
I/ ?
. . r?;(?,
tt,tri 44. ? ; ?
Tr?-?(??-it ?-?.-????
? Alexander M Haig 3r not 'Only has the &per- :" of Haig?not the new secretary of defense; Caspar-
. .2.. ?
jence-andintelligence to handle the job of secre- .W..iWein'oerger; not....t.he new director ,of the
...tar,r41-state; but also possesses something else that.: Central Intelligence Agency, William J. Casey; not
shdr-itivprove:r beneficial?a,iname .recognized;_in even --.-the .; man expected . to be named as. the
.imPortant WorldcapitaLq...t-ru:1!2--ix,-----7::-.M.:::?4":,--.'i-t4j'-',"-PreSident'i,national-security adviser, -Richard: V.
--.....,:-.1i13.9:est.erri-EUrope, Haig's nomination comes as: Allen The result will be a secretary- of state with
reassurance to all,those who knew him ConSiderable influence, one determined to discour-
inili.4..four-yearale served as the commander of age any; attempts to encroach on hs domain as the
- the41/4.Tortli Atlantic Treatyprgpni7ation.."They like President's'foreign-policy chief: '1-
and Tesp.ect and prefer him over lesser- _All. this ignores some of the questions certain to
knowns- who :could "have emerged with the key _ arise when the Senate begins consideration of the
?Cabinet post. Haig nomination?questions concerning his role in
among the allies is not necessarily the Nixon White House during- the Watergate
11,A Alier7Soifet:ITiiiiiii:7-FOrerierals, ?scandal. There- are-Igitinfate issues tobe-exploredprlictirarly those-who were in command of allied here, although President-elect Reagan has-satis-,-,
ijorciefi- in Europe are not among Moscow's favorite. fied himself that. Haig was not guilty_ of any
- ?.
people .And Haig has made it clear that he would': wrongdoing or. bad judgment Others may. feel
not.;-., always ? walk ?softly - when dealing with - the :different, and are obligated to pursue the matter in
.:SoViet:Uniop, -which, once called :him a.''witch r.- the coming hearings. _
What was his role in the wiretaps of reporters
his -background, ,, ,included Con- and government officials? Did he -specifically
verSial service as -White House chief of staff in bargain with -!President Ford for a pardon for
Rfchird M. Nixon's- final days ? as President, Haig Nixon' What was his advice on Vietnam policies?
should also help return: to the Sta.teDepartinent its ,i- Toes he in fact,, deserve gratitude,. as Kissinger_
role:x.thepreernirient force in foreign poliCy. The..., suggests, for keeping the :White House running
department often-came- in second . to the ...White:- just before Nixon resigned? ?
1-1bnse7haSeti National Security Council in the days , . If Haig emerges from the congressional hearings
vhen!'Henryw.N.0.7.1Cissinger.--;ancl,,f,--more7 recently-,177"tinCathed; he may-well go' on to become a-strong -4
7thieV:::dipliiiiiaii-6-7"eflit 7 and. effective- secretary of -Siate. He "Certaitilf.liaS'j
?::around as presidential advisers. . the knowledge, background and ability to become
.Noi one in the Cabinet will baize the experience - Just that. ?.!?? '
t" A A A ",'..,4;:i4.44.4
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STATI NTL
luvricAppmeact For Release 2001/03/06 : CIA-RDP91-00901R00050
NEW YORK TIMES
OU PAGE ....di
17 DECEMBFa 1980
The Region
Margiotta Defense z
Gets Bipartisan Aid
Some of the rifost prominent officials
in the state have lent their names and
money to a legal defense fund for Jo-
seph M. Margiotta, the Nassau Repub-
lican chairman who has been indicted
on charges that he devised and oper-
ated a scheme of kickbacks on public
insurance premiums. -
More than $30,000 has been raised,
and a fund-raiser last night at the Swan
Club in Glenwood Landing, L.I., was
expected to raise at least $30,000.
Among those listed on a letterhead
seeking contributions to the Nassau Re- -
publican Legal Defense Fund are such
leading Republicans as William J.
.Casey of Roslyn, L.I., the newly, nomi-
nated Director of Central Intelligence,
ana -ehator-eiect Aitonse ICD'A"mato.
The list also includes such prominent
Democrats as Assembly Speaker Stan-
ley Fink and Assemblyman'Arthur J.
Kremer of Long Beach, L.1., chairman
of the Ways and Means Committee..
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STATI NTL
Approved For Release 2001/RO#KsR6-113p1?9/1ROMMQQ?p00
17 December 1980
A.F.117 I OLE ATP 'C.:. 7...:1)
ON PAG;.;
A Republican
Gathering for
William Casey
By Lois Romano
Washuigton Star Staff Writer
Republicans, Republicans and more
Republicans swarmed into the elite Me-
tropolitan Club last night for yet an-
other opportunity to reunite,
reacquaint and celebrate. ,
While CIA I director-designate and
Reagan transition team chieftain Wil-
liam Casey was the guest of honor,
the object of everyone's attention was
a recently released study, "The Staffing
? of the Presidency." The report was pub-
lished by the tenter for the Study of
the Presidency, which hosted the party.
Appropriately enough, Casey agrees
with most of,the report's recommenda-
tions.' ?
-,?r?
"The President:elect want's to have
a cohesive cabinet that runs the gov-
ernment like a committee so that all
the .decision-making comes from the
'top and is not all broken up-in the
bureaucratic process," said Casey who,
most believe, has the greatest policy.
making influence on Reagan. "That's
the way he ran the government for
, the state. of California'and that's the
1.way heinrun:thi nation.*
, Casepsays he agrees with,. the Con-
cept of Creating a "super-Cabinet" com-
-PriseArpfliWftiafferretlet ?ON /03/06 : C IA-RD P9 1 -00901 R000500010002-3
would e considered the ig estpo cy-
making body and would be responsible
Eisenhower, an :.important part- of
for o.yerSeeing the entire cabinet: the job was arranging trips for the
. ,
? The idea,. proposed- by , Defense first lady on the Sequoia." ,
Secretary-designate Caspar Wein- The recurring joke of the night
berger, has reportedly been the revalved around the ever-growing
source.of-some disagreement among size"of the Reagan transition office.
Reagan- _ in Washington. "It's a powerful ma-
"Presiderit-elecRepgan .prefers ....chine turning Out its quota of daily
? working w.ith smaller -committees,",_ leaks, and one of the greatest paper-
notes CaSey, adding Matter-of-factly,- makers ever created joked Casey to
"after all, everybody:can't do every-- - the CroWd. "We have 72 chiefs of
thing." . transition teams and all of them.are,
-At least 200-Reptiblicans and a- -going out and coming back with lotS-
'few-old-guard Democrats stood in a ? of paper: With only 10 Cabinet posts,
'arather long-receptionepatiently-? becomes difficult to read all 72
etv.,aitirigto pump hands with Casey, reports.7.-7','- -
taidtwo of the. four authors ..of the: "YeS, I'm part of the maze they.
:trepart Bradley Nash and R. Gordon call a. transition?' laughed foreign -
,tfircociel But norond seemed tO mind: adviser Fred ikle. The size
think we ye -already brought a of it.reallY-haSgOtten out of hand".
Vdtbflif e to Washington in the short '"'But Ikle,like his colleagues, doesn't
Itirnezsince the election, don't you?" forsee any problems with theSenate
:tsmiled Clifton . White; one- of the -confirmation of Gen. Alexander.-
FanySet?iior members:of thetransi- -.'Haig as .Secretary of State. "Water-
;.tion team. "I've,worn.ray tux. three -. gate is a dead' issue," he grimaced.
times in thelast week and only wore -Those guys -up there don't even
it twice during the entire four years, have the material to reject him and
of this administration." : ' ; if they did, they wouldn't have the
t For some, it was old home week courage to do, it." .
; "God, on look like an ad for life And then there were the handful,
in California," blurted .Elliot Rich=:?-.. of Democrats present always hoping
tardson, former Secretary. of-Every- for the best. t?This is one the greatest
hing under .; Nikoni,;;td Alex ? _opportunities in American history.
*Butterfield. "Life must be treating for Democrats' and- Republicans.to
' .7 ideologically meet in the middle and
"Weil? you're ,not, looking too bad . . work ;together," said Tommy. "The
' i'estionded Butterfield- Cork" Corcoran, formerly of the Roo-
:ie.,
who was Nixon's Cabinet secretary. -7 -sevelt "brain trust" and perennial
"You haven't aged *day!' political activist "The Democrats
And back' tid'the report; Which 1.: have-to do something or there.will
alsoencourages the re-creation and be no party,",.. ?
trengtheriing?of the rOle-of Cabinet!: 72-, Less philosophical was D.C. Mayor
cretary. "I hate to go on record Marion Bariy.' "I'm doing the hest
as disagreeing with pill Casey but I can with all these new Republican
served as a Cabinet secretary and , -faces I have.-td learn. But it's great
just don't. think there's enough,..-?:. for the city,:A lot of new Money'
;-Ithere to warrant a full-time job," coming in. Now, wejust have to get
as Butterfield. "For awhile under them to spend
STATINTL
Approved ForRelease2001/03/06 : CIA-RDP91-00901R0
RADIO TV REPORTS, INC.
INC.
4701 WILLARD AVENUE, CHEW CHASE, MARYLAND 20015
FOR
PROGRAM
DATE
SUBJECT
PUBLIC AFFAIRS STAFF
NBC Nightly News
December 16, 1980
STATION
WRC TV
NBC Network
7:00 PM Washington, Dr
Experience in Foreign Affairs
JOHN CHANCELLOR: Alexander Haig's nomination wouid
make him one of the most powerful Secretaries of State in
American history. Neither Mr. Reagan nor any of his cabinet
choices so far, including the men he has chosen to run the
Defense Department and the CIA, has any recent experience in
foreign affairs. Haig does, and in the cabinet his views on
International matters would not be easily challenged.
CES
Approved For Release 200119 3j8 cit-RwpA -qcvmpop5nowpralg
OFFI IN: SHINGTON D.C. ? NEW YORK ?S 'EL :S P CMES
i fne fn. nevi riqference Dunnsos nniv. It Ma,/ not be rex>roduceci. Fold Of ntibliclv ciernonstratmcf or nethihvnet
,ortAppramed-or Release 200/103fra6i,CIAARDP91-00901R0005
Ca nos, 15 DECEMBER 1980
WASHINGTON So you think they - -
Reagan advisers and appointees. all ? '
look alike, mesh their gears in perfect
unison and promise four years of
boardroom boredom? A quartet of vi-'
grettes sunests-some human turbu-
lenceuntierthe corporate tarpaulin:
Among My Souvenirs
?
? On thefl morning 'after the Carter-
Reagan televised debate in Cleveland,
. candidate Reagan met for breakfast
with his most high-powered advisers.
All were jubilant: their man had made
no Ford-like blunders.
- Copies of the debate transcript were
handed out to all those at the break-
fast, and it occurred to one of the par-
ticipants thate an autographed copy
would- be an historic- rnernen to. Rea-
gan gladly signed -all the copies, in-
cluding Henry Kissinger's. -
f' "Now Henry will sign yours, if you
like, Governor," said George Shultz
puckishly. It was- a pretty funny line;
nobody laughed.:
_ .
-
-.Praise Silence
Last v;reek,' the Interim Foreign
Policy Advisory Board convened to
make policy recommendations to the
President-elect. This is a good idea:
outside heavyweights should have
regular access to the- next President,
and the "interim" in the title suggests
that this board'will be made perma-
nent, along with a reconstituted For-
eign Intelligence Advisory Board.
William Casey, the next C.I.A. chief,
briskly chai-die group, issued as-
sigturients of topics and allocated
time. But a dozen or so biphots sitting
around a table do not always listen
raptly to each other's presentations.
When George Shultz began to set
forth his ideas, Henry Kissinger and
Henry Jackson began to engage each
other in ,conversation. Shultz, a man
whose quiet voice and steady .presence
commands attention, stopped speak-
ing and avraited the silence that was
his due. .That maneuver always
worked in labor-negotiations, board
ESSAY -
By William Safire
meetings, and never failed to focus at-
tention in Nixon Cabinet sessions.......
, But Jackson and Kissinger kept crn
chatting. Casey chose not to intervene. -.
Shultz shrugged, put on his-most
im-
passive look, and went on with his pre-
sentation..-
_
Reaganaughty but Nice
, ...In that same series of foreign policy
meetings, _before the President-elect
arrived, and with Al Haig's chair inex-
plicably empty ? presumably, he was
off listening to tapes.? the long-time
rivalry between Richard Allen and
Henry Kissinger briefly surfaced.
In his presentation about transition
operations, Allen spoke proudly of the
people who were carrying out their
assignments on behalf of the
dent-el ect in defense and foreign poli-
cy. He used the term that he had
' coined to describe them ? "Reaga-
nauts," on the analogy of the Argo-
.
nauts (intrepid followers of the an-
cient Greek who sought Senator Prox-
mire's award).
Henry Kissinger, man of many
-
neologisms, was not amused. He was
aware of the growing tension between
Allen's chosen operatives (who are in
the main anti-Kissinger) and the for-
eign policy establishment. That sub-
surface battle broke out into the open,
last week with an intemperate blast by
STATI NTL
Prteident Carter's reformist Ambes-,
sador in El Salvador, who objected to
the opinions of the Reaganaut author
of a blunt transition memo which had
been obtained by The New York
Kissinger's put-down of Allen con-
sisted of an encomium to those thou-;
sands of unappreciated; fine public
servants who make up our foreign
- service. Everyone at the table knew
-what shadovy jousting was going on
between the past and future national
? security advisers When it came his
turn to speak, Allen -- as yet unap-
pointed -- chose not to slam back, and
genially allowed as how the careerists
were cooperating in the main_
-When the group later met with Rea--
- gas, however, Jeane Kirkpatrick, the
political scientist seated at tee table
between Shultz and Kissinger,- spoke
up about the Reaganauts. She used the
- word pointedly, stressing the impor-
tance of having men and women with a
sense of political purpose, trusted fol-
lowers of a President with a mandate,
who would infuse the bureaucracy.
with the direction it needed.
Reagan nodded vigorously; Caspar
Weinberger, the Secretary of Defense-
designate who fully understood the by-
play,. beamed; Kissinger did not pick
up the challenge; the rest of the
players at the table kept ther poker
faces.
. Ups and Downs
A group of the same foreign and de-
fense transitioniks were trying to find
their way out of the Executive Office
Building recently and came to an un-
marked elevator.- -
"I think this is the wrong elevator,"
warned Seymour Weiss, a former am-
bassador whose hawkish 'advice was
rejected in the Nixon-Ford years.
Nevertheless; they entered, pushed
"down," and soon registered that look
of pained surprise when the elevator
went up.
"The stoty ?of my life," sighed
Weiss. "Good advice, never take it"
--
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. II
NEWSWEEK
Approved For Release 2001/03/06aCElk-RIDR91-00WEFLOgelte02=3"-"w
Newsweek
NATIONAL AFFAIRS
The Making of the Cabinet
t a glittering cocktail party in Los An-
geles last week, Ronald Reagan talked
about his first scouting trip to Washington
as President-elect and how it reminded
him of the story of the three men on an
island in the path of a killer tidal wave.
One of the three, said Reagan, retired to
a mountaintop to meditate until the final
moment. A second stayed below to cram
all the earthly pleasures he could into his
last hours. But Reagan identified instead
with the third man?the one, he said, smil-
ing wryly, "who surrounded himself with
the best advisers that he could possibly find
to see if he could learn to live underwater."
Reagan will return to the Capital this
week prepared, or so he hoped, to let the
world know at last who his advisers will
be. He has spent weeks in hermitic retreat
putting together a Cabinet of safe, sane
and heavily credentialed boardroom con-
servatives?a hard job made harder by the
onerous post-Watergate rules on financial
disclosure and divestiture (page 28). By the
weekend, Reagan had chosen nominees for
twelve of the top fifteen jobs; eight said
yes, two said no, two more had yet to be
asked, and three slots remained wide open.
But guessing the names proved a hazardous
business. One media boomlet for Gen. Alex-
ander Haig as Secretary of State began wilt-
ing in the face of serious opposition; another
for banker Walter Wriston as Secretary of
the Treasury fizzled with the inside word
26
that Reagan had settled on someone else.
The suspense as to Reagan's choices
helped feed the illusion that America was
somehow without a government at all in
a time of danger in the Middle East, in
? Latin America and, most ominous of all,
in Poland (page 38). Jimmy Carter, in ob-
vious concert with Reagan's men, warned
- the Russians in the bluntest diplomatic lan-
guage against mistaking that illusion for
Reagan's hard choices
have been made
harder by the tough
new rules on conflict
of interest.
reality and loosing their tanks against the
Poles. But a sort of end-of-the-line languor
has in fact fallen over the Carter White
House in its final days (page 28), and, in
Reagan's self-imposed silence at the far rim
of the continent, his still-forming govern-
ment-in-waiting has had an increasingly
awkward time trying to keep from speaking
with a confusion of voices.
Reagan nevertheless refused to be hur-
ried at finishing his Cabinet--even when
the flow of tips and whispers to the media
began congealing into a single consensus
list of the most likely to succeed. The col-
lective profile of the new crowd, in these
speculations, was conservative but not ideo-
logical, with a heavy preference for what
one head-hunter called "good managers
from the private sector who know how to
produce on the bottom line." Haig at State
and Wriston at Treasury headed most of
the published tip sheets for the four front-
row jobs, though both were already sliding
downhill. Caspar W. Weinberget, 63, once
budget director and HEW Secretary in the
Nixon-Ford years, was thought secure for
an encore?this time as Secretary of De-
fense. William French Smith, 63, Reagan's
patrician friend and private lawyer, re-
mained the runaway best bet for Attorney
General.
The consensus names for the second-
tier portfolios were similarly worn smooth
by repetition, to a point where their formal
anointment may be an anti-climax. Rep.
David Stockman, 34, the brilliant conser-
vative two-termer from Michigan, seemed
locked in for the Office of Management
and Budget. William J. Casey, 67, an old
Washington hand who managed the Rea-
gan campaign, was thought similarly se-
cure for CIA director. Thomas Sowell, 50,
a black UCLA economist of rightward
bent, was mentioned for Housing and Ur-
ban Development, among other jobs. Sev-
eral men holding campaign I.O.L .'s from
NEWSWEEK/DECEMBER 15, 1980
Approved For Release 2001/03/06 : CIA-RDP91-00901R000500010002-3
Approved For Releas
Reaga.1 or the Republican Party were said
to be slotted for Cabinet work?Richard
Schweiker, the retiring U.S. senator
from Pennsylvania, at Health and Human
Services; Drew Lewis, a Pennsylvania
businessman and party leader, at Trans-
portation; Bill Brock, the incumbent GOP
chairman, at Commerce or perhaps a sub-
Cabinet slot at State.
Hash Marks: But some of the plums so
confidently awarded in the inside-dope sto-
ries were in fact in serious-to-terminal
doubt at the weekend?among them Wris-
ton's supposed posting to Treasury and
Haig's to State. Haig, 56, has lately retired
to private life as president of United Tech-
nologies Corp. with impressive hash marks
in military and civilian service. He was
blooded in combat in Korea and Vietnam,
schooled in Washington realpolitik under
Henry Kissinger and Richard Nixon, and
burnished brighter by a mostly successful
tour as supreme commander of the NATO
forces in Europe. His stock for State rose
when ex-Secretary of the Treasury George
Shultz?once the favorite?indicated that
he was happy in private life.
But Reagan held off in the face of storm
warnings from the leaders of both parties
in the Senate. Haig carries the heavy bag-
gage of having served?and, some say,
shielded?Nixon through the worst of the
Watergate crisis, for all his well-publicized
heroics at easing the President toward res-
ignation in the final days. Haig acted as
the middleman in arranging a series of FBI
wiretaps of government officials and news-
men; he delivered Nixon's orders to fire
Archibald Cox as special Watergate pros-
ecutor; he figured in the resistance to yield-
ing the White House tapes; he saw the then
Vice President Gerald Ford near the end
and raised the possibility of a pardon for
Nixon. Senate Majority Leader-to-be How-
ard Baker privately warned that Haig could
encounter flak in confirmation hearings,
and Baker's Democratic counterpart, Rob-
ert Byrd, said the general would come under
scrutiny so "intense" that his nomination
might fail.
Mr. Clean: State thus remained on Rea-
gan's open list. Treasury, by inside account,
was not. Wriston, if he ever really did head
Reagan's "A" list, had problems of quite
a different sort than Haig's?the kind that
might confront any man of wealth and cor-
porate power contemplating government
service under the new Mr. Clean reform
rules. At 61, he is chairman of Citicorp
and its subsidiary, Citibank, and has won
a:considerable reputation' as a tough, entre-
preneurial conservative with an active so-
cial conscience. But his bank, the nation's
second largest, is involved in a number of
items well up on Treasury's agenda: the
New York City bailout, the Chrysler Corp.
rescue loans, the contention over Iran's fro-
zen assets. Wriston at last count held
104,499 shares in Citicorp, worth more
than $2 million?and with Reagan's opera-
tives erring 9towievedIfien; Reietis
0 John Marmaras?Woodhn Camp & Assoc.
Wriston: Were his assets a liability?
James D. Weson?NEwswees
Best bets: Weinberger (left) and Smith
The flak-catchers: The Aliens and the Haigs at a black-tie dinner in Washington
John FtC3r3?NEWSWEEK
NATIONAL AFFAIRS
be forced through a painful divestiture to
avoid the mere appearance of a conflict.
The delays in naming a Cabinet or even
a single, strong press secretary had their
cost; a babel ,of leaked transition papers
and middle-echelon policy brainstorms
found its way into print and was treated
as Reagan writ. The last straw came when
Ray Cline, a Reagan adviser from George-
town University's Center for Strategic and
International Studies, suggested during a
trip to Asia that the new Administration
might reappraise relations with China and
upgrade U.S. contacts with Taiwan. In the
answering thunder of outrage from Peking,
- a memo issued forth frOm Richard V. Allen,
' the likely national-security adviser in the Photos by John Frew 5?NewswtEx
?
--Reagan White House, urging vows of Signing the big budget reconciliation bill: The message was, I'm still the President'
...:silence on foreign affairs. "The usual dis-
- -
.7.claimer of not speaking for the President- ` ? Carter's Final
? may not be enough," wrote Allen. immy Final Days
ln some cases a meeting 'postponed' may
trouble avoided." . ?
:? But Reagan held to his better-safe-than-
sorry pace, retiring from public view to
his home in Pacific Palisades, running the
'Cabinet search by conference phone and
= browsing through a book of past Inaugural
- .speeches for inspiration. His people ex-
-, -pected him to start naming names in small
.,.-,....clusters on his return East this week?
.-ra journey that will begin with a visit to
New --York and end with a? walk through
:the. White House with Nancy and her
:decorator to plan for the no longer distant
day they move in. ?
' PETER:GOLDMAN with THOMAS M. DeFRANIC,
" _ELEANOR CLIFTand HOWARD FINEMAN in Wash-
ington and MARTIN KASINDORF in Los Angeles
_
- Not too long ago, it was the 'center of
the political universe. But as Jimmy
Carter's days in office dwindled to a pre-
cious few, an eerie quiet descended on the
White House. The phones weren't ringing
nearly as much as they used to, the normally
crowded press room was deserted, and even
the President himself had taken to ducking
away for uncharacteristically long week-
ends at Camp David?ordering up his Ma-
rine One helicopter last week for a once
unthinkable Friday-morning departure.
Most administrations go through just such
a lull in their final days. But with major
crises on the boil in Poland and Iran?
and a series of nascent ones brewing in
the Mideast and Latin America?the nei-
ther-here-nor-there uncertainty of this in-
terregnum worried some White House
aides. "There's a general feeling of anxiety
around here," said one, "that foreign ad-
venturers might use this period to do some-
thing they wouldn't otherwise do:'
Carter thus found himself forced into
the embarrassing position of having to re-
mind the world that he was, after all, still
President--and would be until Ronald Rea-
gan was sworn in on Jan. 20. He jolted
the lame-duck 96th Congress with the an-
nouncement that he would veto an essential
appropriations bill that carried an amend-
ment aimed at blocking the use of busing
for school desegregation. He also laid on
what he hoped would be rnediagenic cere-
.....t, ,, ..:;4,',""'"';';',-2..]..1.',f ",'"'.''.':.'.'!%:',-r-. ' if..:"-'''': "--.7-'? -'-"- .-r-' - --r- : '..'..-.'" -...-- , - . :..,---!--7--..--, - -- --... --- --, -- -..
-).6..'*'.'1?-?,?-;:i37.7,,I.., --,, ? ?'7::?=itl..''''' -',..'"?-,: '; e'?4..-- . : -. ? ?:'. gan's business -world nominees...-.And it may take wholesale
aterate.:-Hangup.:.--,-,.:';:l divestiture, a baby-and-bathwater unloading of investments, '
'',-., ?7.--,---,,, -,, -',...., -? - ;-;?:;:.', ', i.... for wealthy appointees to avoid conflicts of interest under - -
1,,,, ?``'e???*,-...--s' .---,',."-?---. k ??? - - ?-? ,-, '.-,--.? . " -. . ?
dauntinglie*Of papersvorkiii Fred Fielding'S Wash- the new law. "You're no longer able to insulate yourself by ...
,.....,:---... - . 1
-Pingtori-ciffice is a legacy of Watergate?a mountain of conflict- - setting up a blind trust," a senior Reagan aide complains.
,..:z.v. .
Of4iiterest regulations;consent forins, and disclostire require::,:-There arc also security checks, fingerprinting and a host of .2
. _:.
? merifrliFieldingaiimielfa?Waterga.t.eVetei-ari as onetime deputy' 7 ;:.;: pointed questions about past and present associates. Says one
? -- t&White HOUSeCainis-elJolitiDenn;LiesPtniiible for eXplaining ,:"!;'' revieWer, "We're just trying to minimize surprises.". .4.- ?
'alLitO.Wotil. 4-be;-RE4a.a. 4PI3-.6,ii4,s. '#-s-'Par-,..':.',.'1;-':::isr'i:.---_-::,.,57',:r....-.7...''...:..,..:?j:"4--.'4-4,..-,.:.All this makes the checking process as deli-
.W... - -,--;,...--,
or,-aliiiiiplet.eilaiCal-:kreening prodesS;7i7eo":::,:'i;P;e411.,ne.,Tfisp:i'f!anj,:h.nrillfs? ,._:!;:::':Cate as it is cumbersome -!!That's not to say -..
, o'idelon. katitandiaY;.!Ohni.YGoirr -;:.-'s-erivorSi,"7.-,-3 .., it's necessarily good or bad,. but the no-..;
says One insidet;itTherd'areuSu.ity.sonie eX.--..c4 '.. question that it really slows, dawn the proc- 7-
pIetiveS..7.,A.s.:!'at4=restilt?ztheivhole-,.:SeleCtion _
',. ess," says Reaganadviser Caspar Weinberger.
prOCFSs'haS begaii'!.tii..take' much longer ,than .11 -:..Gone are the clays when -a Cabinet choice ..
experteit :Igliela-Wi'are'VerY,..liariWand.Ty?.erY1 ...
, could have a .talk :with his wife arid deliver
inhibiting`,",..Sayi;Chiet.Eit,-,,g4khdid,-iiiii*:- aefL4 -)ais answer the following day.: Now, says Re. a-- :...
4 '.1c'endletort.Jaines.41-T,agree -in': principle;.",bnill -.- gan counselor Edwin Meese, "he has to sit.--..
gt.ttiAk'thiY-.3'areeierteacting,2tO7..Watergaii 4 ' down literally With a lawyer from the tran-
ii-? Yst-elia2..r 00 4
.f44.t4.7*,41--11-41e.":4M .: .
e:sitiori, his own lawyer an
, a-banker and in ac- ,r
chief 'aiiiiingthe;Stiniibling.r.lilOCkS.'ts'Ythe-:, ,...- ?
,couritant to figure out how he can comply , 7
? 97i -,Ethics in Government Act;;Which-'re-'-' :1With all the terms." And recruiting govern- '..
criii.ea'bfficialiti:Iiiiiikeiweepiing:finiiiciat iiis--2ii -zment -officials will get tougher -still, Fielding :
- -
elm-4e ariiiiii:Ohibiti foinier bUreaucrata from ','It ..
suspects, when. the selection 'process reaches ..-..
, ,
contacting etr. o agencies or one year a er the sub-Cabinet level?where public service -:-
eaiiing the Wverament f jObs industry :7- ..: largely lacks the incentive of -i title that "your
lie-OW- TR00011,000100024;;:-:,---,L--;
t.t4;--'Altk'ti**,-M.,4aK4w 17 ?,,--,.
- !4,,11:Fi'-',"--Siti.-.11-:--iit!..-,:r4st.....71t1.-_-z-ctu-,4,--- .:..-V?7::.:t:-......
monich; for thApptipmect Eo
bill and a precedent-setting budget "rec-
onciliation" package. He had the State De-
partment working overtime to negotiate an
end to the hostage crisis, and he personally
warned the Soviets to stay out of Poland.
Even so, Carter continued to have trouble
getting his I'm-still-in-charge message
across. Though he seemed likely to get his
way with Congress, the media virtually ig-
nored his bill-signing fete, the Iranians re-
mained as balky as ever?and perhaps most
symptomatic of his suddenly diminished
status, aides had to phone up reporters to
make sure there would be someone in the
White House press room to hear press sec-
retary Jody Powell issue the President's
statement on Poland.
'Deep Funk': Though Carter himself
maintained that he was "reconciled" to im-
pending retirement, White House insiders
told a different story. The vicissitudes of
lame duckery, they said, had left him dis-
pirited and resigned. Where he once seemed
to relish testing himself against the rigors
of the Presidency, Carter was now putting
off whatever work he could. "In almost
every conversation," reported a staffer,
"he'll say, 'Well, that'll be a problem for
the next Administration'." In part, his new-
found passivity followed a gentlemen's
agreement with Reagan not to pre-empt
:the President-elect's hand in any major pol-
icy area. But it also reflected his own "very,
very subdued mood," as one aide put it.
Said a close colleague of the President's:
"Rosa lynn and Jimmy have been in a deep
funk since the election."
The one bright spot in his fading Presi-
dency was his gutsy eleventh-hour battle
with Congress last week. The set-to was
spurred by the passage of an appropriations
bill that included an amendment prohib-
iting the Federal government from initi-
ating court suits to force busing of students.
"I cannot allow a law to be enacted which
so impairs the government's ability to en-
force our Constitution," Carter had de-
clared?and when Congress sent the bill
to him late last week, he said he would
veto it. Conservatives on Capitol Hill vowed
to include the same anti-busing provisions
in the continuing resolution Congress
would have to pass to keep the government
functioning. But at the weekend, the lead-
ership was trying to work out a compro-
mise. And White House staffers?knowing
that Congress couldn't adjourn without a
continuing resolution in 'place?were
confident that the President would prevail.
"We've got nothing to lose," crowed one.
"It's them that can't go home, not us."
For the most part, however, Carter's final
days were filled with far more pain than
pleasure. What seemed to hurt most was
the evident delight with which Washington
was preparing to greet his successor. The
enthusiasm generated by Reagan's recent
tour of Capitol Hill so rankled Carter that
he ordered up a lengthy report on his tran-
sition activities four years ago. (The find-
Leaving for Camp David: A yen for longer weekends
ings: as President-elect, Carter had met
with Congressional leaders no fewer than
eight times.) Carter was also infuriated by
a spate of newspaper and magazine articles
suggesting that the Reagans would restore
to the White House a cultural and social
grace that had been absent for the past
four years. After all, the record showed,
Jimmy and Rosalynn had welcomed to the
White House such cultural luminaries as
cellist Mstislav Rostropovich, pianist Vla-
dimir Horowitz and jazz trumpeter Dizzy
Gillespie.
Despite his battered ego, Carter shed no
tears in public. At the start of his last sched-
uled Cabinet meeting, he tried to dispel
the gloom. "I thought I'd be the first to
Brzezinski, Vance: The debate goes on
UPI
UPI
015040 10002-atie outcome
of the election," he deadpan-
ned. "We lost." Then Carter
served notice that he did not
want any "sentimental" or
"maudlin" testimon ,als from
his Cabinet officers, but the ses-
sion quickly turned into a
poignant review of the Carter
years. Concluded V:ce Presi-
dent Walter Mondaie: "I am
certain that history is going to
deal far more generously with
the Carter Administration
than the voters did This fall."
Carter shared Mondale's con-
viction?and in place of what
would have been his final State
of the Union address to Con-
gress next month, he planned
to deliver a kind of valediction
explaining just why.
Caustic Analysis: rhe Pres-
ident was not the only mem-
ber of his Administration eager
to provide a personal perspec-
tive on the last four years. His
former chief aide Hamilton
Jordan surfaced to give a series
of interviews arguing that Car-
ter's defeat at the polls was the
price he paid for confronting
tough issues. And a fortnight
ago, national-security adviser
Zbigniew Brzezinski offered
his personal assessment of the Ad-
ministration's foreign-policy r ecord?a
caustic analysis that last week provoked
a sharp response from former Secretary of
State Cyrus Vance. Brzezinski was bitterly
critical of what he said was the nation's
failure to "compete assertively" with the
Soviet Union, and he blamed Democrats
burned by the war in Vietnam. His own
efforts to increase American military
strength, he said, had encountered "a great
deal of opposition within the Administra-
tion." Retorted Vance: "The charge that
. . . there was unwillingness to consider
the use of force if necessary when our vital
interests were concerned is hogwash."
Brzezinski, he added, was overly fond
of "the use of military power
or bluff."
The spat not only represent-
ed the continuation of a long-
running debate between the
two foreign-policy experts, it
also seemed to typify the sort
of divisive sniping that had
crippled the Carter Adminis-
tration from the start But with
just five weeks left in his term,
Jimmy Carter seemed content
to leave the resolution of that
old conflict?and most of the
other unanswered questions of
his Presidency?to history.
ALLAN .J. MAYER with
ELEANOR CL1FT and
THOMAS M DeFRANK
1,, Washington
Bruce
Hoertel
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Approved For Release 2001/03/06 : CIA-RDATSWIROO
kitT LE.
ON PAO'S
THE WASHINGTON POST
15 December 1980
1?aivland Evans and Robert Novak'
The.-Sub-Ca-bin)ei
"A really terrific appointment!" gushed
a senior aide to President Carter upon
hearing that Merrill Lynch's Donald T.
Regan would be' Ronald Reagan's secre-
tary of the Treasury. Small wonder. Dan
Regan not only :personally contributed
the maximum.$1,000 to Jimmy. Carter's
campaign, but supported his administra-
tion's economic ventures:- ? '-"f" ' -t""
In contrast, he: played tiO Psirt in Ron-.
ald Reagan's campaign and did not back
his daring tax-reduction program until
being named to the Cabinet. Even then, ?
the prospective Treasury chief stumbled;
Regan seemed-tot-Make' tax , cuts condi--
tioinal on budget cuts, 'which never has
been the president-elect's policy.-
See. peculiar an --appoiritrnent to the
Treasury ianio-aberration but flows natu-
rally from Reagan Cabinet-Making. Instead
of seeking men oi4ideas or just jdeological
compatibility with Reagan, the president.-
elect's inner .circle stressed managerial
_ .
- skills and status in the establishment.
? -This results in a Cabinet ill-equipped
for the radical reform of economic, social:
and national Security policy intended by.
Reagan?save for Rep. David Stockman.
as budget director . and, presumably,
Gen. -Alexander-. Haig .as secretary of
? state-Consequently, the president-elect
now maY be forced to imposa sub-Cabi-
net officers- on, his Cabinet: members to
carry out those reforms. : ?
Reagan himself is responsible for some
? peculiar choices. Caspar Weinberger, the
s secretary.of defense-designate who dur-
ing the campaign resisted Reagan's for-
...milt of rebuilding the nation's defense
no matter what: the cost, is intensely ad-
-mired by, the president-elect. William
French Smith,....the attorney general-
designate.who as a University of Califor-
nia regent supported racial quotas found
abhorrent. by Reagan, is the president-
elect's personal lawyeite
But .the president-elect did not even I
know Regan two weeks ago. His name
was surfaced by that artfully bubbling
backroom maneuverer, k,,1, !them nasey
tcampaign chairman and now CIA direc-
tor-ctesignate). Casey is Don Reeans
friend and, 1,vhaTs?more, his New York
law ?firm receives fat fees from Merrill
Lynch. Reoublican politicians who did
not take, Regan seriously as a contender
for the Treasury underestimated Casey.
.. For Don r&gan to Yecoine a senior
Cabinet member in a Republican admin-
istration amuses Wall Street insiders,
who always figured: the :self-described
."lifelong Republican" was angling to give
the-bipartisan touch to a Democratic
!Cabinet. The $1,000 personal contribu-
tion to Carter's campaign and the extra
$14700 from Regan's Merrill-Lynch
political action committee were not the
end of his 1980 Democratic dalliances.
He personally contributed to Sens.
Russell R. Long of Louisiana and Daniell
Patrick Nloynihan of New York. Recipi-!
-ents of Merrill-Lynch PAC funds are a!
liberal Democratic Who's Who: Sen.l
Alan Cranston (Calif.), Sen.-elect Christ
Dodd (Conn.), Sen. Thomas F. Eagletonn
(Mo.), Sen.' Pat Leahy (Vt.), Sen. Gay-
lord -Nelson (Wis.), Rep. Thomas Dow-i
ney-(N.Y.), Rep. Robert Eckhardt (Tex.),1
Rep... Wyche Fowler (Ga.), Rep. Henry
Reuss (Wis.) and many others.
Since Regan and the Merrill Lynch
PAC also contributed to many Republi-
cans, this can be dismissed as big-busi-1
ness- cynicism playing both sides of the
street. More troubling is the esteem for
Regan at the Carter White House for'
supporting the Carter economic policy
(including wage-price :guidelines) and-I
not :supporting Kemp-Roth tax reduc-1
tion, embraced by the president-elect.
Even after Ronald Reagan's nomina-
tion -for-president, lifelong Republican
Don Regan could not endotee the party'sj
tax position in a statement submitted!
July 25 to the House Ways and Meansi
Committee. That statement and com-
ments following his Cabinet nomination
betrayed the need for a cram course in:
supply-side economics.
? - Interviewed on the. CBS Morning!
- News the day after his unveiling, Regaa!
was asked whether he would still push;
.tax:Cuts if Congress resisted budget cut..41
-
His reply: "I think the thing has to be
done as a package." That confirmed the;
absolutely unfounded suspicions of thel
:Wall Street smart boys that the presi-
dent-elect Was abandoning tax cuts. -
Why was Don Regan preferable to I
' New -1-York - City blisinessman Lewis1
'Lehrman, who is a loyal tepublican, at
deVoted Reagartite and a brilliant stu-
dent- of supply-side economics? Lehr-
man is too young (42), too unknown, say
Reagan .insiders. But why not, then,_67s
year-old shipping tycoon Peter Grace,
who also is loyally Republican, Reagan--;
ite and supply-side? Prone* beCausee
1.3...ilKasey did not back him. -
- ?
Apprehension about l'easiiry policy
would be eased if Lehrmaa (who knows, .!
likes and admires Don Regan), were !
named deputy secretary. Similarly,. a de-
fense-,expert would help Weinberger as
deputy at the Pentagon. But Weinberger
stunned the defense community when he
advised that his tentative choice is .1
Trunk Carlucci, a non-ideotogicais civil
. servant who is now President- Carter7!
deputy (JLA director. .
- -I
The president-elect has premised visi-
tors he will make sure -sub-Cabinet offi-
cials fit his policies. Since he set no such
requirement for Cabinet members, pick- !
ing the sub-Cabinet could determine !
what happens to his radical plans for
transforming national policy. ? - i
ce MO, Field EmterpeLee I
-
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TIME
15 December 1980
AR T I C LE ATP ZIkal..9
ON PA GE lb -I?
SIAIINIL
Reagan struggles to form a Cabinet able?and willing?to serve
CIA Director. William J. Casey, 67,
Reagan's blunt-spoken campaign manag-
er, is the clear front runner and almost I
certain to be appointed?if a Haig drop-
out does not cause him to be considered
for Secretary of State. During World War
II, Casey was a crafty and inventive chief
of Oss intelligence operations in Europe.
As Nixon's Securities and Exchange
Commission chairman, he was accused of
complicity in some scandals; though the
charges never stuck, they may be revived
in confirmation hearings. Although a ded-
icated . conservative, Casey is flexible
enough to win praise from liberal Dem-
ocrats, including Historian Arthur M.
Schlesinger Jr.: "He'd be a good CIA chief.
He's not a frenetic hard-liner."
EXCEI1PTED
For CIA: William J. Casey?
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STATI NTL
A:21-ZAI-LID
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ARTICLE
U.S. NEWS & WORLD REPORT
15 December 1980
:271.1
PAGli.
Ronald Reagan won't take
over until January 20, but he's
already confronting big .
decisions on business, global
hot spots---with more to come.
Six weeks before the start of Ronald
Reagan's Presidency, the problems he
svill,inherit were piling up fast_
As the President-elect prepared to
announce his first cabinet appoint-
ments, bad news kept bombarding
him. Demands grew for tough econom-
ic and foreign-policy decisions to be
rnade?or signals -given?even before
his inauguration on January 20.
At home, signs spread that the econ-
omy was dropping back into recession,
undercutting chances that Reagan's
program for recovery would achieve
quick results.
Abroad, these developments were
crowding in?
ri A huge Sovislt military buildup
around Poland raised fears of a Russian
invasion that could renew the Cold
War.
The stability of the Middle ? East
was strcelptiblfenied POT cReillyaise
tween Jordan and Syria: Fighting be-
tween Iran and Iraq showed no sign of
chinleanina
"It looked easier in the game pian."
vador stirred renewed
concern about a leftist
takeover in the Latin
American country.
is Peking issued a shrill warning that
U.S. relations with China could be
damaged if the new administration de-
cided to appoint an envoy to Taiwan,
as one Reagan aide urged publicly.
Despite these difficulties, the Presi-
dent-elect's main concern in early De-
cember remained selection of the cabi-
net that will help him grapple with the
country's woes.
For key posts, names flew in all di-
rections. Some aides were promoting
ex-Nixon official Caspar Weinberger
for Secretary of Defense; the former
commander of the North Atlantic
Treaty Organization, Gen. Alexander
M. Haig, Jr., for State; New York bank-
er Walter B. Wriston or New York
stockbroker Donald T. Regan for Trea-
sury and Reagan's lawyer, William.
French Smith, for Attorney General.
Also, trial balloons were going up for
Reagan's campaign chief, William Ca-
sey, as director of the Central Intelli-
gence Agency, and tor Itepresentative
David A. Stockman (R-Mich.) to head
the Office of Management and Budget.
, Once the cabinet is picked, Reagan's
attention will begin shifting back to his
21014/0300atieVAIRD-P91 LOOM
the nation from its economic doldrums.
A few months ago, it appeared that
tha annnnm ilri ha vv.11 nn tha
percent on December 5, inflation was
running at 13 percent and unemploy-
ment stood at just under 8 percent.
Nor can Reagan count on the econo-
my improving in the near future. A new
analysis by the Economic Unit of
U.S.News & World Report indicates that
the real output of the nation's goods
and services will drop in the fourth
quarter of 1980 and decline further in
the first quarter of 1981.
Reagan's basic plan for reviving the
economy is to couple big tax cuts with
spending reductions?moving toward
a balanced federal budget by 1983.
But the worsening economic picture
will make it much harder for him to
control federal spending. What's more,
many Americans appear unsure that
they want a tax cut. A Harris Survey re-
leased on December 1 showed that a
majority of those sampled oppose a re-
duction in income taxes, tearing that
such action would only stoke inflation.
Troubled auto industry. One other
piece of bad economic news came
from Detroit. The auto makers report-
ed that sales for the final 10 days of No-
vember fell nearly 18 percent below
the same period in 1979. At the same
time, imported cars showed big gains.
Detroit's continued slide could con-
front Reagan with one of his first di-
1R0005000400024er to let U.S.
auto makers rescue themselves or lend
a hand and risk a trade war with Japan
nwar th 1.?PIA TM !IS ITC ; rra ..,"1?40 A.I?m?-ti,ne?
STATI NTL
Approved For Release 2001/03/06 : CIA-RDP91-00901R0
DES MOINES REGISTER (IA)
14 December 1980
fyiuspanuted a
Strange how the foNs who
want to get the government off
the backs of the American people
want to put the government on
the backs of foreigners. Presi-,
dent-elect Ronald Reagan's tran-
sition team for .the Centrallael-
li,ncy wants the agency
to put more emphasis on "covert
action" outside the United States.
The term is a eup-h-iinism-for
meddling in the affairs of other
people. At one time, the CIA had
hundreds of covert-action
projects in scores of countries.
The actions included fomenting
coups, planning assassinations
and conducting paramilitary Op-
erations.
The CIA wisely de-emphasized
covert action. The Senate Intelli-
gence Committee in 1976 found
that "the evidence points toward
the failure of paramilitary
activity as a technique of covert
action," and raised questions
about the effectiveness and pro-
priety of covert action generally.
Americans call it "subversion"
when foreigners try to
undermine their government,
and they rightly resent it. They
should also resent secret
American efforts to subvert
foreign powers, including demo-
cratically elected governments.
Iran's resentment: of the United
States is a direct consequence of
710?
this country's history of covert
action in Iran.
Americans are appalled at the
Soviet invasion of Afghanistan
and. the threatened invasion of
Poland. Invasion at least is overt,
arnrthe Soviets can be held ac-
countable. Covert activity may
be just as 'effective in putting a
government under the thumb of a
foreign power, but there is no
. public accountability. Former
Secretary of State Henry,
Kissinger testified that one
reason he had the CIA conduct a
war in Laos was that it could be
done in secret.
An insidious feature of covert
action is that Americans may be
victimized by their own govern-
ment. Phony stories planted in
the foreign press as part of a
covert "black propaganda"
operation sometimes are dis-
seminated worldwide and
deceive readers in all countries.
-Secrecy and covert action go
hand in hand. When Reagan's
transition team calls for a !
step-up in covert action, it means
it wants more secrecy in the
exercise of government power.
That's not the vision Reagan
held out during his election 1:
campaign. His Amite, for CIA
director, William Casey, should0
disavow the recommendation for
stepped-up covert action.
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STATINTL
c_.1 For ReleaseiZORIA-MRpti#P91-00901R000500
cose
By David-Hoffman
Inqiiirosington Bureau ?
WASHINGTON - . President-elect
Ronald Reagan had not met personal-
ly with Pogaid.T:Regan or Malcolm
Baldrigei,before:he nominated them;
- for positions lathe powerful-cabinet,
he envisions.. .t
Instead; he. talked_ .only; by- tele:.
phonetbRegaii;,his'thoice.for Trea
sury4i,secietary?.-And ..Baldrige,. his.
. nominee forcbmmerce secretary..
As he assembled- the...first _half
his cabinet Thfirsday,.Reagatrprovid-'..
ed yet: another' clear' signal that he
plans to delegate authority generous-::
ly to subordinates, governing from a .
slight distance rather. than at close.
range.
For example;.the president-elect
felt- nd'Urgency fora getacquainted
meeingwith Regan, the New York
stock brokerage executive who prob;
ably will become Reagan's chief
spokesman-nri.his, most difficult and
pressing problem ? the economy_
instead.. Reagan .was-content to :Hsi-
ten to the advice, of. his- most trusted,
advisers-,. and, ,particularly;x,to his
chief 'skWhite'..House. counselor-to-be,.
Edwin Meese3a.*.itW;r2.,-r**!..7..
making his. Rea;
gan,soughtto-reinforce, the; imprei=.
sion.tliat,heplans.fil haVehisr.cabineti
funetionas it_did he was governor of
California''.--4'.aseworking group that.
wilrgdeaVn frequentIY, ;
withi,thetroublas:thai confront .th
, !J'tteyllinrerriy philosophy, and my
- belief:in-:cabinet government," Ree7
gah4Saict....of his'appointees:.:-'1.,arni
'.4,c4-A0,19.44Pt:.!4r1;:9,Y.F34114,;,11k1
To accomplish this, Reagan's first-
cabinet ? selections was almost ?uni-
formly managers in the - corporate-
tradition. The eight nominees an-
nounced .Thursday -- contained no-
right-wing ideologues but, rather, a
cast of decidedly pragmatic execu-
tives and politicians... - - ? ? - - -
In some cases, such as CIA director-.
designate William .1. Casey. the nomi-
nees were valued for their loyalty to
the president-elect. -But in others,
Such-. as Regan and Baldrige, they ?
were qnalifietuor the cabinet more
,by. their-success in managing_ large-
corporations. ? ..? :-. .:,. _ 3 i, -..- I
By, inauguration Day. Jan-...2G,-aides
say-that. Reagan .plans to have- in,
place ' an --- inner-circle committee:
within the cabinet to- grapple with,
urgent matters before the president-,
This. will include -the secretaries- of
defene,. Treasury, state and several
top White. House aides,. with Meese
overseeing it. ? ..-- -
' With only half the cabinet named-,
it already appears -some members
will be the-dominant players in Re
gan's-White House. If only by virtue
of his broad government experience
and Reagan's high regard for him,.
Caspar W. Weinberger, chosen as
defense secretary, is one who is like-
ly to set the pace. ----? , ? ... _ -- ---
.? In a move that could prove to be an-
important asset to his administra-
tion,./3eagan has, from the start, -in-
cluded some astute political figure
in the cabinet. Baldrige, a Connecti-;1
cut- industrialist, iss-a well-regardedi
Republican Party-figure there.-- - ? i
- Drew Lewis,. Reagan's choice for
secretary of transportation. served a
deputy Republican national chair-
-man during the campaign and has
earned high marks for political ex-.
peruse _ - :-.}-----r? :,-.7. ,-;, ......-",,--4.-?,f_.
With those advisers, Reagan could.;
hope to. detect any early dissatisfac-
tion-with his administration :? the
kind of political-warning system that,
seemed 'to elude the Carter Whitej
. House during its first Vti years. Car,
ter later found it necessary to bring,
. in political types, such as Transporte,
1
tinn Secretary Neil Goldschmidt. - .-;.ti
- .
, Just as be did with a small world ng,-;
cabinet in California, Reagan plans4
to place a large measure of authority,
in the hands of subordinates. - ??
"It's going to be a delegated govern-,i
rnent," said Verne Orr, a deputy tran-i
sition director. Orr was Reagan's-1
finance director -in California fort
five years after Wienber7.,er left tola.
join the Nixon administration. - =
Speaking to reportersat a breakfast:
meeting Friday. Orr said the presi-N
dent-elect-Would- give his cabinetv.
members -"loose reins"- -but, at the,
-same time, they are watched by Mr-
Meese for their performance." '
five -years of working for -Raz]
nald Reagan; he never called me-
and.- Criticized me, and he. never,.
called:me in. and praised me,"LOri-;
added. "Meese is the one.," 4 0^4-'
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Ni YORK I ILY E45
A,ppiroved For ReleassoM1103,,? 6 : CIA-R641-uuuu1R0
,
Ron 's CIA choice faces intelligence test
BY FRANK yAisl RIPER
,
Washington (News Bureau)--To re-
cently nominated CIA Director William
: .1. Casey?lawyer, businessman, author
and chief , of...secret intelligence for
:Europe- during World WaryII?there
always Will be a-place in his outfit fora
good spy:- But he doesnl particularly
like the word:- ???
"'Spy' is-.a:.:word that has a Iot
-,-,Teonnotations,"'he said in 'an interview
;:.with-.the Daily .? News,,:"l :would say.
;-;there'll- 'always :be a ...place for the
,:?...!pbserver,..7! ?
a ta.rge-framed-inan With-
py-gray hair and-.e. strong New,york?.
-4accent;' the. result, of -.growing up in
j-Queens; most recently was chairman of
the Reagan,:reelection campaign. He -
became top man after 'John :Sears Was _
s...bounked, and Casey faced .the-taSk:of.
reorganizing n early - bankrupt carri2
'..paign. He emerged from the job 'with
i the confidence and respect of those in
the Reagan high command:Land -with
? his boss victorious by a landslid&::--- .
Casey, 67; says; "The best thing William Casey-7-heading for CIA..
is run an organization;-whether its a , 7
? campaign, a commission (he. chaired CASEY ALSO IS eager? to 'confer
. the Securities and Exchange Commis- with congressional leaders on reinov-
.sion under' President-Nixon) Or an ing.,-.what he terms:- "impediments to
economic portfolio at the State Depart- collecting intelligence -c' ,c
,? e :2--"There's legislationT?up there :font
"TM THE HIND OF guy V,rlio can go "-Capitol Hill) that would do that and I'd"
_
_ in,- assess morale in an organization be most interested in that." He said he-
and make it - I would not elaborate Until 'after m?Yeetin
,? . ? : ?
with lawmakers. ,
,? -: "The-first-thing' to do open the: . To Casey, knowing what the other
;door -and let` them know- you're in- side is up to is paramount to sound
terested in them and their problems, policy-making. -"Without good intelli-
: that ysin know they want to do a job ,gence, you're not going to have' arms
and you want to help them do it." . control agreements, you're not going
prospictive.director of- central': to be able to scale down your-arms,
intelligence, ;Casey ris !unwilling to.: you're not going to know what you
" criticize his predecessor, -Adm. Stens- -- really need in Military strength." ?
field Turner..But he notes that "there And, he- adds, "in an increasingly
is almost an infinite degree to which an interdependent economic world, I think
intelligence operation can be improved. it's important to know what forces
And I hope ,IwiIlfind,that Adm. there are that can jeopardize not only
Turner had done that to keonsiderable your military security but your. pros-
degree."- perity,.as well." ? .,:-7 . -;
Casey favors reestablishing the Pres-
ident's Foreign -Intelligence Advisory
_Board, a group '-'of nongovernmental-
experts charged. with, overseeing the. ;
;Intelligence comniunity. President Car- 0
len abolished .the board by :executive -
.order on March 5,1977, contending it
'duplicated the-work of Other offices:
,But C.asey says," I pink 'it. was ,a very
-useful bailY ---I thinkLwould,
recommend thatit he revived."'
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CASEY'S MANNER can be abrupt;
his answers, noncommittal and blunt.
At times, he has the air of ?I man who
has. made it and does not sufier subordi-
nates gladly, if at all. But that can ,
change midway into a conversation,
and that side, associates say, is the real_
Bill Casey. -
Casey's war experience is his only
background in -intelligence, but it is
formidable. Commissitned in the Navy
during the war, he found hts eyes too
weak for sea duty. He man.iged to get
into the Office of Strategic Services---
the precursor of the CIA?and wound
up as chief of secret intelligence for
Europe. He coordinated the placement
of intelligence and sabotage teams on
the continent. ?
The experience left Casey with a
profound regard for the "observer" on
the ground, be the observer a scholar
gathering:, information 'from public'
sources, a businessman gleaning facts
on industrial-production or an under-
cover operator?the spy__
21,11lT I C12, API)E3i.n1) WASHINGTON STAR STATIN
rAtiniftbtetlFor Release 206110aRicra:EPIAADP91-00901R0005000
?diOns Get Nitionwkle PraisE
Businessmen Call
Regan Good Choice
Here is a 'roundup of reaction to
President-elect; Ronald Reagan's
first round of Cabinet selections,
compiled by bureaus of the Time-
Life News Service.
? ATLANTA *They're non-black;
? non-brown, non-working class and
non-female,"- was the reaction of Dr.,
? Joseph LoWery?-:president of the
Southern. Christian Leadership; to
*the Cabinet nominees of Ronald Rea-
gan. "The brightest thing so, far is
that they 'don't 'seem to repretent,
farright or even the new right,
.:and..I suppose that's a goodfsign."
Lowery "44io,^.joineVother civil
rights leaders in a meeting`with. Rea-
'gan Thursday, 'Said,,the president-
elect "hedged" when asked about
appointing a black Cabinet member.
"I'm a" little 'concerned he may
have the dubious distinction of hav-
ing the first all-white Cabinet in a
good while," Lowery added. He said
he could not comment more specifi-
cally until other Cabinet members
were announced.
In Columbia, S.C.'?. attorney Harry
Dent, a former aide to Richard NiX-
on,-hailed,the selections and Coin-
mented,:"I hope he'll step.up tO:the
, ,
plate with:,Haig."
? PananCity?Fla., auto dealer
Tommy Thomas, who headed Rea-
gan's Florida campaign, approved of
the Cabinet choices, but said he was I
"shocked and disturbed". William Si-
mon was nothichided. "A'-tremen-1
dolts number:, of: conservatives I
across the country ,haye read , Si-1
man's book and believe fervently!
in him," Thomas said. "The new man
may be just as good; but we thought ;
Simon had- written a, geod.I.Ire-1
scription for"getting us out' of the,
dilemma we're in..I really think we
needed him." '- ? ? -?
? Marc_LOinson
New England ,
BOSTON ? 1Olid. "Moderate!' "Ex-
,
penenced." witk,characNVAqc re-
serve,. New 'EriglandersOiave
responded positively to president-
elect .Ronald Reagan's Cabinet
choidekArea Republicans decrared
that these eight.nien augunwellIcT
the Reagan 'admiriistration,dak-
I -"
state Rep. Andrew Natsios, the state'sNcirtheast-''
-
- 'So far," enthused Massachusetts '
Republican Party chief, "this is one!
,of.ithe strongest Cabinets in dec-
ades"
Singled out for particular praise
were Defense Secretary-designate
Caspar Weinberger and Treasury
Secretary ppminee Donald Regan.
Of Regan, economist Otto Eckstein
lopined, "Ilet a highly qualified per-
'son who understands the financial
'system. He'sl, been an outstanding
leader and executive."
, Even the traditionally liberal-
minded Boston 'Globe gave the par-
tial. Reagan Cabinet a, nod of
-approval. "There is no reason they
cannot performi their function' with
ccimpetence, " editorialized the
glObe:
14While taking obvious pride in the
?fact that five of the eight are Har-
vard graduates, observers are con-
,
cerned that neither,.women nor
minorities have yet found represen-
tation on the top echelons of the
Reagan administration.
--Joelle Attinger
Midwest
CHICAGO ? So far, community,
leaders' here representing areas
most likely to be affected by Rea-
gan's initial Cabinet selection are
reacting with the same moderation
characteristic of the appointees
themselves.
The American Medical' Assod-
anon attempted a benign en-
dorsement. "The AMA has had a
longstanding and productive rela-
tionihip with Sen. Richard
Schweiker, and we look forward to
continuing that relationship," said
Toba Cohen, public relations direc-
:tor. And that's all she, would say.
The American Hospital Associ-
ation, however, said a lot more.
President Alex McMahon says
'Schweiker has the, knowledge and
\expertise to tackle tough issues fac-
ing the health care field. "Sen.
?Schweiker is an individual who re-
jects simplistic solutions."
Continental Bank President John.
Perkins said of Donald Regan's selec-
'lion as Treasury secretary: "Regan ,
is a man of great personal integrity.
While oneimay not agree with him
on specific points I'm Sure he will
examine each issue on an objective
-basis- for this country's best. inter-
est
Approved For Rel
'44 A4,
..?Sheila Gribben
NEW YORK.7,-, From Wall Street
to the city halls of the northeastern
industrial states of, Pennsylvania,
New York and New Jersey, there
was near unanimous', approval of
President-elect Ronald Reagan's'
first eight choices for his Cabinet.'
The Wall Street. Journal editori-
alized, "a pretty interesting bunch."
The New York Times added, "so far,
so good ... Formidable talent."
"Here in Pennsylvania, we're
thrilled having two of-our own so
to speak in the Cabinet," said Mike
Krauss, state director of the GOP.
"Donald Regan is an excellent
choice. His career is unparalleled
in the investment industry," said;
Harry A. Jacobs Jr., chairman of the
Bache Corp., from his Wall Street k
office: ,
And another banker, who had
worked with William Casey in ?
Europe as, an OSS agent during '
World War II, rendered the opinion:
"I'll bet you $10,000, with Bill Casey
running the CIA, you won't see the
United States getting caught with
its pants down as, damn it, we were
in Iran. ?
?Dean Brelis
IlVest? -
LOS ANGELFS California Re-
publican Chairman Truman. Camp-
bell says, "I have heard no negative
vibrations although some people say
they expected some different names.
We have always seen Cap Weinber-
ger as a fiscal personality oriented
towards budget and finance and the
Defense appointment appears a bit
incongruous. There is no question
that Weinberger should be in the
Cabinet someplace, but the Defense
job caught us off guard."
Democrats are not so tolerant.
Dennis Desnoo, executive director
of-the California Democratic Party
Says, "It is typical thus Tan A bunch-.
of white male businessmen. Maybe
with the appointment of Haig, we'll
have.some discussion."
, Equally 'unhappy - is Professor
-Larry Berg, director of the Univer-
sity of Southern California Institute
of Politics, who says, "There were
some who thought Reagan's conser-
vatism was more moderate. But
these appointments show he has no
intention of diluting those things
-he said, in the campaign and,when
-he was- governor There is. a lot of
hoopla': about these people being
great. Me,..I'dbn't see. it. We .have
'reversed theiprocess. We have,geri-
atrics in the executive branch and
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MEMPHIS PRESS-SCIMITAR (TE)
12 December 1980
STATI NTL
e-""?-, Kea an s
ir First ET6-ht
t
'Ronald Reagan took a long time it
thinking over his prospective' Cabi-
:tie., and there were plenty of leaks
- and public discussion about the can-
didates. Thus there were no sur-
prises in his first eight choices (and
.c9ie hopes no clinkers either)..1
PBi boldest inove was to entrust
thpowerful Office,of Management
and. Budget tcr,yofing (34-year-old)
Rep. David Stockman.. The Michigan
Republican is Virm'advocate of tax
ciitt and budget cutS5which may be
What the -troubled economy needs.
ng before he kneW, he was go-
itg-Tto 0MB,4StoCkman.::rstudied the
Current $632 -billion budget and pro-
posed
-
p0sed- $26 billion. in specific cuts. It
Will be a ';welcome change to have a
bidget,'director ? who believes gov-'
anment spendi:ag can be restrained
ana.doesn't Consist only of "uncon-
trollabl?. sacred, cows.1.-
%Stockman should have an ally at
the: Treasury,. where- the president-
?
elect will nominate Donald Regan as
secretary:- Chairman of. Merrill
Lynch St-''Co.,- the nation'S largest
stockbrokers, Regan lacks govern-
ment experience: But he knows at
fiist hand the destructive effect of
Mflation:orCbusin.ess and the need
to',-spur saying and investment.
- An old pro in government, former
1241,dget Director and Health, Educa-
tion' and:Welfare Secretary. Caspar
er than, but workineno better than,.
the Post Office.
Reagan seems to have made a sol-
id choice in sending William Casey
to head the dispirite.Cispy way
back in World War Ti, Cra-s-ey also has
a background in arms control, a
field in which the agency must ad-
vise the president. Most important, ?
he is a tough old bird; which he'll
have to be if the CIA is again to '
produce first-rate intelligence.
In selecting his close friend and
personal lawyer, William -French
Smith, to be attorney general, Rea- ,
.gan . may have erred. A pal at thel
_Justice Department sometimes 'acts
as the president's lawyer and not thei
,),nation's - top law enforcement offi-1
!cer. And when the president is too
. Close to the attorney general, you 1
Can get political justice, which con-
tributed to the downfall of Richard
Nixon and John Mitchell. Reagan1
and Smith will have to be extra care-
ful to avoid conflict-of-interest pit-
' falls. '
In 20 years as a congressman an
senator from Pennsylvania-,-Richar
Saaweiker showed an interest
health issues. He soonmay regre
that interest, for it and his Reaga
ties are sending him to the Depart
-ment of Health and Human Re
sources, whose secretaryship is
Nitteinbergerlivgoing to the Penta-,. :thankless,: discouraging.- -job
0:dit", Some', conservatives grumble Schweiker says he will reduce frau
;_,-::: -,,._ -k 1
that he knows nothing about de- *.:.: and waste. Once inside the door 1
fense but "Cap the Knife" knows HHR he won't have far to loo
#itich'_abia-Utcutting fat out of pro-;;;k, Reagan also tapped Malcolm Bal-1
: drige, a Connecticut industrialist 4;
- If the Defense Department is to secretary of commerce, and Dre
Imake effective use of the additional Lewis, a Philadelphia area business
billions Reagan:. promised, it will man politician, as secretary of trans
Ineed Weinberger's cold eye when-.,,-partation.: Since the fate of the re
'.the brass submits its gold-plated 'public does: riot rest on those/
;wish lists. Otherwise the defense es-h departments, comments on their!
tablishment will end up much costli- problems can be deferred.
;
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01R000500010002-3
1R000500010002-3
RIhe first eight choices for President-elect Ronald Reagan's agement and Budget; Drew L. Lewis Jr., Secretary of Trans- merce; William French-Smith, Attorney General; Casr W.
6abinet are, left to right, William J, Casey, director of the portation, Sen. Richard S. Schweiker, Secretary of Health Weinberger, Secretary of Defense, and Donald Regan, &Fere-
MIA ; Rep. David A. Stockman, director of the (Alice of man- and Human Services; Malcolm Baldrige, Secretary of Com- Lary of the Treasury. UfWHOTO ,
CIS CIS
CD CD
CD CD
8 8
LL LL
CD CD
2 2
itp pi-tweet FecieRelease 200ffiy?fo,pompp9i-wrimEtt05000
ON PAGE
eagan presents J,' 8
me
y;RaChelle Patterson'
lobeStaff
WASHINGTON resident-elect
onald Reagan, in naming eight of his
choices- for the Cabinet yesterday,
stuelt.tn his pledge to, select persons
?
who were successful and "do not want
?'a job in- government.",,
; atryesterday after-
ncion's,.unvelling looked like a Wall
Street '.'boarst: meeting.' For the most
part,Ahose selected were Eastern-edh-
cated, white,businessmen who don't
need a job in:government. ,?
Chosen for Secretary of the Trea-
sury was Donald T. Regan, 61, chair-
man of Merrill Lynch & Co., Inc., own-
er of the country's largest investment
firm. Merrill Lynch, Pierce, Fenner
and Smith Inc. . ?:
' Caspar .W..Weinb&ger,. 63, vice
. president of Bechtel Power Corp. and
Reagan's finance. director when he
was governor of California, wasi
named Reagan's\ choice for Secretary
of Defense.
, -William French Smith, 61, Rea--
gan's personal lawyer and a member
? of his social circle, was selected for At-
torney General. ??
AlLthree men,are expected to form
the ntialeus Oran inner Cabinet that
will meet ,frequently with Reagan to
'adVise.him on a range of issues.. '
,Others, in the new President's pro-
spective Cabinet include Malcolm Bal-;
drige, 58, of, Connecticut, chairman ,
and' chief executive officer of Scovill, -
Inc., 'designated to be Secretary of
Commerce: Drew L. Lewis Jr., 49, Rea-
gan's deputy campaign director and a
Philadelphia management consul-
' tant, chosen as Secretary of Transpor-
tation: and William J. Casey, 67, Rea-
gan's campaign manager and former
chairman of the Securities and Ex-
change Commission, designated to be-
come Director of the Central intelli-
gence Agency, a post that Reagan has
accorded Cabinet status.
Pennsylvania Sen. Richard S.
s?.
Schweiker, 54, who is retiring after
serving in Congress for ?.0 years, was
picked as Secretary of Health and Hu-
man Services. Another member of
Congress,- Rep. David A. Stockman,
34, of Michigan, a conservative who
works out economic prescriptions on
a computer in his Capitol Hill office,
was chosen as Director of the Office of
Management and Budget,
The Reagan selections were intro-
duced to reporters by James Brady,
transition press secretary. in an or-.
nate room of the Mayflower Hotel, a
popular meeting place for the Wash-
ington political establishment. '
Reagan, chose not . to, appear with
his prospective Cabinet members, an.
unusual move for a President-elect:
who enjoys being on the stage and has
personally ,introduced rhainLof the
people-connected With his cainpaigh. Hiss.
aides said he did not want to steal. the lime-
light from the nominees, but there was also
speculation that Reagan did not want to be
confronted by reporters about his choice for
Secretary of State.
? Reagan is Said to be ready to move abead
with the announcement of Gen_ Alexander
Haig for `that Post despite criticism: the.
.nomination is expected to receive. from
some members of Congress_ A friend of for-
mer. Secretary of State Henry Kissinger, ?
Haig has been criticized for his role in -thel
Vietnam war and for authorizing the wire-
tappingof former Nixon Administration of-
ficials and newsmen.
While yesterday's 'Cabinet announce?
ments contained no surprises, the homo-
geneity-Of those selected prompted some
'questioning, as to whether a black or a .
woman would be appointed to any of the.
remaining Cabinet jobs. Brady said he
could not answer that, but he said more ap-
?pointments may be announced either today.
or this weekend. There are seven- more
Cabinet positions to be filled.
In a , prepared statement. Reagan 'de-
scribed his choices as "outstanding individ-
uals", who "combine a balance of 'exper-
ienced hands with fresh faces, new ideas .
and seasoned perspectives.- Reagan said:
:They share my philosophy and my belief
in Cabinet government and teamsitork and
with these individuals, and the others I will
?be nominating, I arn - more confident than"
ever that Cabinet 'government can and will .--
work."' .;
During the-. televised news 'conference,'
Reagari's Cabinet designees were hesitant_
to offer any insight into what their steward-.
'ships might be like. Brady conceded later'
that he had given the Cabinet appointees a
"pep talk" on the dangers of saying any-.
thing substantive before their Senate con-
firmation hearings scheduled between Jan.
5 and 19.:
Donald Regan. emerged as a' candidate
for ;.Treasury Secretary after former
sury Secretary -William Simon dropped outi:t:
of the running. Simon. who had been advis?s
ling,Reagan ometonOmic policy throughout
theoampaigrpFaa considered a shocsin
the pOst gsrfaintix . ago. But Simons.a
. ? s, .
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cuti:1--,1
terapenumental. impatient-man who is cur-
rently. a Wall Street investment banker,
ApproYffrii#VMAkciMUMsal
President Gerald Ford is -also reported to
have said some negative things about Si-
mon, who served in Ford's Cabinet..
Regan referred twice to an "economic
team" who would be defining economic
policy in the Reagan Administration, indi-
cating that there would.be others pulling at
the same string.
Asked whether he would be the "chief
economic spokesman" for the Administra-
tion, Regan demtirred, saying "that was
not decided." He avoided any commitment
.to a specific tax cut, although he said he
agreed with one iiniprinciple "to stimulate
the economy:"
Weinberger, Who was destined to have a
keyrolein the Administration from 'the be-
ginning, was known as "Cap the Knife" for
his skill at budget-cutting. He was director
of the Office, of ;Management and Budget
and 'Secretary .6P._,Health, Education and
Welfare in the NixOn-Administration. High-
ly intelligent and a bureaucrat who knows
his way around,. Weinberger is also said to
have 'a big ego4rid`turned down earlier of-
fers to resume his olci Office of Management
and .;Budget ? po,st.tkle supports Reagan's
?
plan for tax cuts 'federal spending reduc--
tions and morthiciney for defense.
Smith had4n he talked into taking the
job ofcAttarney 'General, sources said. He
was said to, have been concerned that it
would look 'like' Cronyism. Born in Wilton,1
N.H., Smith moved to California when he
was younglint:riturned to the East to re-
ceive his law degree at Harvard in 1942. He-
Is a major figure in the business, academic
and cultural communities in California. He
headed the group, of longtime, Reagan
friends who drew up a list of potential Cabi-.
net nominees.' ".
During his first national exposure yes-
terday, Smith twice. said he did not "know
enough" ,about the Civil Rights Commis-
sion to determine whether he would curtail
its role not-would he indicate how he would
deal with busing to achieve-racial balance
in public schools,.,.:".. ? ' ?
Smith is very close to Reagan, dines with
him frequently .'and is expected to be at his
side often_ Asked yesterday whether the re-
lationship might pose a problem, Smith 1
said that the "basic integrity of the individ-
uals involved". Would preclude any conflict..
Baldrige, a pcilitical ally of .Vice Presi-
dent-elect George Bush, is regarded as a
skilled businessman as well as a good be-
hind-the-scenes Political organizer. Politics
runs in the faintly. His sister, Tish, was sec-
retary to Jacqueline Kennedy and is now
advising Nancy Reagan on how to staff the
White House, The Corrimerce Department
will probably continue to be a nesting place
for political patronage.-
Schweiker.WaS considering tetUrnIng to
pdva te trsinesS'Iast January. But he
sifned on to help Reagan in the 'Nort14-isC
and it paid off.r9
A one-time prolabor liberal.,Schwelker
became one of the Senate's more conserva-
A-RDIV:111hCM.VMPAPaCliiMen d
n-
tial running mate in 1976. In an interview
11 months ago with ,The Globe,. Schweiker
said he had "growing concerns" about bal-
ancing the budget, inflation and "some of
the social programs I had voted for in the
past." Schweiker said he had already
moved away from the liberal spectrum
when approached by Reagan's campaign
manager, John Sears, to be Reagan's run-
ning mate and failed to understand the "po-
litical opportunist" label placed, upon him
at the time by the media.
Lewis is a longtime friend of Schweiker.
He headed up Gerald Ford's election cam-
paign in Pennsylvania in 1976 and is con-
sidered a moderate Republican: A business-
man as well as a politician. Lewis success-
fully performed a variety of duties for Rea-
gan during the campaign. Forthright in his
manner,. Lewis said yesterday he would
continue mass Iransit funding but would
review transition team reports before mak-
ing any further. commitments. He was a
successful businessman at an early age. At
39, he became president, Of, Sicmple.x, ,W1re
and Cable Co. in Boston.
Casey wanted the post of Secretary of
State almost from the day he became cam-
paign manager. But that never seemed to
materialize. He-was not particularly liked
by Reagan's California contingent, but the
gruff New Yorker was skilled at wielding in-
fluence, mainly because he knows a wide
variety of people and knows how to play
politics. A wealthy lawyer with a variety of 1
interests, Casey is not expected to stay on
as CIA director for long. The job, however, is
something he is expected to enjoy. He served
as chief of secret intelligence under Gen. j
Dwight D: Eisenhower during World War 11.1
- Stockman is a former aide to Rep. John '
Anderson and the man who helped prepare
Reagan for his first League of Women Vot-
ers debate during the election campaign.
Reagan took a personal liking to Stock-
man, and admired- his style:- particularly
his grasp of economic facts and figures.
Stockman was originally pegged for the job
of Secretary of Energy,' but he declined. He
set his sight on the Mice of Managerrient
and Budget and finally won it.
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:?:,,,;?.1
ON
THE BOSTON GLOBE
12 December 1980
ranmeal.. s iete eaouri
,, ? . ;, ; , 'r.,:
,. , . ? , ,, ' - , . 1..; I . : -,.? ?= i - ? -.,- :,, . e: , ? ,, 1., .; -'',-, - , . , ..?: -ti,' ? :ri,:. '???; '5 ;-i.,;?;,i-: ';-?1,r!,811':',;.
? ?
FENSE: Caspar W. Weinberger, 83, was Ronald ., . GIA: William Ll.;? Casey; 67, another member Of Reagan!Sf:Man Of.SeeV111 Inc.; a diversified consumer products nia'ap-':
_Reafam'S California state finance director before serving ," inner circle. was Manager of the President-elect's cam:. ti.?.-facturer, based in Waterbury, Conn cochairman of Rita-
as Mcsidenti Richard M. Nixon's Federal Trade COMmIs'," Paign and chairman' Of the transition operation, Chief of ,,:'-'-givs.conii6cticut. campaign, BaldrigeWas born in Otth
. siorhalrman, budget director and Secretary of Health, secret Intelligence for Europe during World War 11, Casey is `'ha,' attended an exclusive Connecticut preparator, hall :
EdOatIon and Welfare. He is one of Reagan 's closest eCOi , a lawyer who served as an .Undersecretary of state and ,,: and graduated from Yale University;.':.
no advisers and headed a task force on Cutting the feclt- chairman of the Securities and Exchange C,ornmission iiii7,;,.,y,.. l?
1
TRANSPORTATION: Drew Lewis, 49, a Reagan polasL
eralattidget.! Nicknamed 'Cap .the Knife. because of .1)1s.f. -. der, Nixon He was criticized for an SEC report On Robert al loyalist', .
. . A., a was deputy chairman of the campaign and 2t
tighkiliudget 'ways under Nixon, Weinberger is.a vice preal;',,:..Ve.Sco,, the fugitive financier; that did mit' disclose a Veseriv., .. ' - .
. .. : .. ,,,,,,,,er was named, to the same post at the Republican NdtiO .
tienp2of the Bechtel Group, 'an InternationatcOnstrUetion,,, contribution of $200,006 to Nixcin'a re-election campaign' Committee business consultant from Perinsylva
anengincering firm with headquarters In San Francisco Stock
David A
Rep
.......:' -,?'-'''. ' ' . '''' ? ? ' - '" 41;eivis'Ins..fil1074 bid for governor.: '.:- ' ::? ,;'2.:,:i ';.,,r;'-i- i.(1) .,':
niMANAGEMENT AND BUDGET: . . -.
ATTORNEY GENERAL: William French Smith, 63, ,..'.
: :Ilan or Michigan, 34, is considered one Of the brightest '-:ii' ' " ' ''. . ',',-.'' ? '....
- chabinan of a Cabinet-selection group of Reagan 'advisers '":
young congressmen. Ile is a leading advocate of "SLippiy_.':? . HEALTH AND. HUMAN SERVICES: :oen.-.Richtml :
an lends, Is Rcagan's personal lawyer and longtime con-
side" economics, which calls for dramatic tax cuts to spur Schweiker,.54, a millionaire Pennsylvania businessmat
' fida-M. A New Hampshire native with a Harvard law de-.'-'!,
. y-1,-.Anyestment,., raise. productivity .and employment and re- is retiring from the Senate after two terms. Ranking id-.
-.: _,_.....?:;:. duce. Milatien:'First, elected to Congressin,1976, at.age q,- i.,,,, publican on the Libor and Hi.imail:Reso,Urees CoMmIttE, '
gr Snlithi set :up practice in California in -:1942.:. it
:.. :
w y conservative . he is senior partner in the Loa .ang
C-4. 1,Stockman was a Sparring partner fot;Reagan iii:Pr..pa,ra.-,J7'
':....Sehi..veiker ?Waat,picked as Reagan '.s ,vice presidential riptH
les Of Gibson ,i Dunn and Crutcher and a diketor of
t 1..,tions.for his first presidential campaign:debate.1'
ning Mate 41976 shortly before the Republican Natleal
several California utilities, banks and other torPOratiOns. -'. ? .-- 7. Convention nominated then-President Gerald R. :Ford.:'
Sin 1968 he has been a regent of the University of Cali- . COMMERCE: Malcolm Baldrige, 58, a onetime rodeo ..: Long considered a liberal,
, . ,. , .,i ...:',.r: :. . ,. . , .". ' Schwelke.r s voting 're a!CIvi'
vs
for? aRcagau gubernatorial appointee cowboy who specialized in calf and steer roping is chair much more conservative 1976
, .
-,-, . -.. -. ? f,' ? , ???:':., :...t. '...", . ? . . '' , : ,',. ,',': !..,t, ,..12.-;.' .:s?'! ,
.,?; 111.,./10.5., rz: 0,1,r..,, , ,,iity?V , ' ,V,. ? ' r
ft., .0. ...,,,7. ,,,,,..?
Ak "
met se ection
A'
STATINTL
Approved For Release 2001/03/06 : CIA-RDP91-00901R00
iJE THE WASHINGTON STAR (GREEN LINE)
ON PAGE 12 December 1980
By a-Washingteo Star ?Staff Writer
On the day Of ihe1980.New Hamp-
shire primary, Ronald. Reagan fired
John Sears, his campaign manager,
and immediately, put William J.
Casey in his place. ? - ? '
Casey is credited with reorganiz-
ing a campaign that was on the verge
of bankruptcy and helping keep it
on track through the primaries. He
was also instrumental in heading
off a conservative cabal to oust Re-
publican National Chairman Bill
Brock at a time when Reagan was
trying to broaden his appeal.
?
On the other hand,' Casey was
faulted for his role in trying to per-
suade former President Gerald Ford 1
to join the ticket as Reagan's vice 1
presidential running mate, a prime-
time inini-debacle at the Republican
National Convention. It was also said
by SOMB of Casey's critics in the
Reagae campaign that he did not
understand the new politics of tele-
vision and polls.
He was never the "final arbiter"
of campaign matters that he claimed
" to be, and most of the important,
political decisions of the general
election campaign were made by
other Reagan intimates like Michael
Deaver and Edwin Meese, and vet-
eran GOP campaign trooper Stuart
Spencer. ? e ? ? - ? - -
When the time came to 'divide the
political spoils, Casey, reportedly
wanted to be secretary of state or
defense, but agreed tce take a job'
for which, Reagan convinced him
he was particularly suited
director of the CIA, `
The 67-year-old Casey is widely
considered intelligent, decisive,"
self-confident, and experienced '
both in government and politics. He
is a successful lawyer with the firm.
of Rogers and Well an entrepre-
neur who is a self-made millionaire,
and the author of a number of books
on tax law and one on the American
Revolution. .
- "He's a rare blend of Irish hunibr,
experience and sagacity? is the way'
he was described by Meese, '"He's:,
independent and -strong-willed and,
an. amazingly ,hard worker."
:
eagan s Cabin
A tall, rumpled, wispy-haired man,
Casey grew up in Queens and Long
Island and went to undergraduate
school at Fordham. He earned .a law
degree at St. John's University
School of.Law at night while Nork-
ing as a New York City home relief
investigator. . . .
He was commissioned in the Navy -
in World War II and when his eyes
proved too weak for sea duty he
wangled an assignment with-the Of-
lice 'of of Strategic Services, the war-.
time predecessor to the CIA. He.
became
became chief of secret intelligence
for Europe and coordinated the -
placement of intelligence and sab-?
otage teams on the continent.
Casey has remained active in the '
Veterans of the OSS organization .
and, along with Dwight Eisenhower,
Allen Dunes, :John J. McCloy and
Sen."Everett M. Dirksen, is a recipie"
ent of the Donovan medal for distin-
guished service to the United States.
Since World War II Casey has lived
in Long Island, although during the
campaign he and his wife took an
apartment in Washington. He has a
30-year-old daughter who is active
in the arts in New York.
Casey is an avid golfer and a vora-
cious reader. His personal library
reportedly contains 10,000 volumes
of history and biography. He is ac-
tive in community affairs and local
politics. He ran unsuccessfully for
Congress in 1966. ?
When he was a member of the
Nixon administration, Casey bought
the Washington home of the widow
of Robert ?McCormick, the famous
publisher of The Chicago Tribune,
by outbidding the Japanese Embas-
sy. Asked by Mrs. McCormick what
she should tell the Japanese, Casey
replied, "Tell them to remember
Pearl Harbor."
Politically, Casey is described as
a conservative who believes in a
strong national defense and the free
enterprise system. He also is among
those who believe U.S. intelligence
agencies have been hampered in
their effectiveness by congressional
reforms. . , ? ? .
He helped incorporate William F.
Buckley's conservative magazine,.
The National Review, and was execu- "
tor of the late Jim Wick's desire
that his estate be arranged to ensure
the continued publication of Human:1
F.:vents.,
During the Nixon administration
Casey served as president of the
Export-Import Bank, chairman of
the Securities and Exchange Com-
mission and undersecretary of state
for economic affairs. -
As SEC chairman Casey restored
the morale of the agency and pushed
through a number of recorms. But
in that job, and in some others, Casey
faced charges of improver actions
that have pursued him through
much of his career.
His publishing firm settled a pla-
giarism suit, claiming no knowledge
of the actions of subordinates. He ?
was the defendant in another suit
that involved alleged violation of I
the securities laws and misrepresen-
tation of some stock value, which
also was settled.
The Senate Banking Committee
delayed his confirmation as SEC
chairman while it exam! ned these
cases, but ultimately the panel rec-
ommended his confirmation on a
split vote.
As chairman of the SEC, Casey
was touched by two of the major
scandals of the Nixon administra-
tion. . ,
One was the ITT case, which in-
volved, among other things, a
charge that Casey lied to other mem-
bers of the SEC.
The House Commerce subcom-
mitee that was investigating reports
that ITT offered to make a $400,000 ,
campaign contribution to Nixon for
settlement of an antitrust case, was
about to subpoena 34 cartons of doc-
uments that contained information i
about conversations between ITT of-
ficials and Attorney General John
Mitchell and other administration
officials. Casey shipped the doc-
uments to the Justice Department
before the subpoena could be issued.
Casey also played a role in the
scandal involving fugitive financier
Robert L. Vesco, who made a secret
$200,000 campaign contribution, in
$100 bills; to the Nixon re-election
campaign while he was under inves-
tigation by the SEC for looting a
mutual fund complex. e
Casey admitted having been asked
by Mitchell to see Vesco's lawyer
" on the very day, in April 1972, that
the lawyer, Harry Sears, delivered
, the contribution. Casey said he saw
Sears immediately, but did not know ,
anything about the contribution
ty ot2ip3t h e newspa-
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Nyi r
Cs!
Cs!
United Press Itletnational
'he eight designated Cabinet members at news -conference Mora left): William Casey, David Stockman, Drew Lewis, Richard Schweiker, Malcolm Baldrige, William Smith, Caspar Weinberger and Donald Regan.a)
2
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0_
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STATINTL
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THE HALTIMORE SUN
12 December 1 980
eagan's as
;
How fascinating'that Ronald Reagan's first batch of
top government, appointees should be so Eastern in its
background. Of the eight white males named by the
president-elect, seven hold degrees from colleges in the
PEtrinsylvania-to-Massachusetts. corridor and the other,
David Stockman, tagged for budget director, can hard-
ly be called a- Far Westerner with his all-Michigan re-
sume. Of course, _like a lot of other Californians, Mr.
Reagan is a:transplant, having reached Hollywood via-
Illinois and towa.
For familiar faces Mr. Reagan can depend. on Cas-
par Weinberger at the Department of Defense and Wil-
liam French Smith at the Department of Justice, both
of whom worked closely with him when he was gover-
nor of California...,,, ? . ? - ?
The-nation will have to wait until Mr. Reagan com-
pletes his cabinet-level appointments before deciding if
he delivered the "good mix" he promised. Clearly, he
needs female and minority representation, plus in-put:
from regions that so far have b-een ignored.
7 Yet it is not our purpose to quibble with yesterday's
Choices. They reflect a readiness to tap the traditional
wellsprings of Republicanism, where prudent econom-
ic policies and enlightenedinternationalism take prec-
edence over the more extreme approaches of the New
Right.
? This will hold true, as well, if the president-elect de-
cides to nominate Alexander Haig for secretary of
state in the face of intense opposition.. Whatever his li-
abilities in the.Watergate episode, Mr. Haig is consid-
el-ed part of the moderate GOP establishment. The
Pennsylvanians on the Reagan list?Senator Richard
Schweiker, nominated for secretary of Health and Hu-
man Services, and Drew Lewis; named for secretary of
transportation?were anti-Reagan mainstreamers
:ern
bacle'in 1976. Mr. Schweiker quic'xiy necam a o, sere.
vative after he was picked as Mr. Reagan's r oseecti V E! ,
running mate; Mr. Lewis swung over aftee directing .
the 1976 Ford campaign in Pennsylvania. hey nave ;
some sympathy for Kemp-Roth economic wilt its -
emphasis on tax cuts, but of the Reagan
only. Mr. Stockman, something of a congress n.11
kid, is a truly supply-side economist.
Donald T. Regan, the Wall Streeter name, ae se 're-
tary of. the Treasury, has stated that we u have
budget cuts and tax cuts together.- And Mr Weir ier-
ger at the Pentagon brings with him the ni ::-Ltra.! of
"Cap the Knife" in tribute to his previous bin. -51 ish-
ing record. Despite expected budget hikes, I:.
? berger will be doing a real service if he creeh delve on
Pentagon waste. The other. appointee with ,concrnic
responsibilities is Malcolm -Baldrigie a C, mecl.cut
businessman, selected for secretary of corn eree As ;
director of the Central Intellieence A eencv, ,rIkari J..
Casey brings an extensive backgroenn, begi. hc..2 ;
(-kis operations in World War If, erwce in eFord administrations, administrations, and chairmanship of fre 030
-Vieagan campaign.
- Perhaps the key man on the Reagan P - 3 N' Ir.
Smith, the attorney general-designate He cc i os-
est to being a crony, which could hinder the iceae.r,g,
struggle to free the Justice Department fre a m!lue
political influence. If Mr. Smith is to ,)e par if ' ni-
percabinet." overseeing the whole governmer - way .
be wise to delegate many functions to :iihordi it's 'nd
isolate himself from their decisions.
Overall Mr_ Reagan's first cabinet list seer- selid
one. It could help get the administration off ) god
start. Marylanders will have no objections to , it- r
ern-ness of his early appointees. - -
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STATINTL
,ApstrQul i For Release 2001/03/06 : CIA-RDP91-00901R000
Art 13:L,,,L A r z...i.="0
ON ?A0T, NEW YORK DAILY NEWS
12 DECEYBER. 1980
? _ .
ASHINGTON?The overall impression of
President-elect Reagan's first batch of..
Cabinet choices is one of blandness. In an
'2:effort to avoid antagonizing either the Republican .;
far right or GOP moderates, Reagan ended up with a.
- politically safe, but colorless lot to fill the first eight
. Cabinet chairs...
e!There are no controv-
ersial figures like the
-.Texas dynamo John Con-
nally in the first group.
Nor are there any promi-
nent Democrats like Sen.:
'Henry. M. Jackson of .
Washington. Both Conn-
ally-. and Jackson had
been.. at. one time- ru-
mored to- be high ---on
Reagan's list for secre-
tary of defense.' .-
nen, ,Instead, Reagan opted
' for _Caspar W. eWein-
- berger. for the defense
?- Post:A longtime Reagan budget adviser who earned
the nickname "Cap the Knife- when he served as
- budget director, and later secretary of health,
educadoe and welfare in the Nixon 'and Ford !
--:administrations, Weinberger is now a vice president ;
of the S-an Trancisco-based Bechtel Corp., a raultir.a-
.'?,tional construction farm He has the reputation of an
eanffectve, but colorless, administrator. _ _ ?
? The Cabinet list also-lacks a mover and shaker
4: like former Treasuly Secretary William E. Simone
.who was said to be Reagan's top choice for that key
!!...p-ost..But Simon, a forceful and outspoken conserve-
etive who earned a reputation for toughness and
abrasiveness by knocking heads as energy czar and .!
Tmsury sem:ebory M. the Nixon and Ford ad:minis-
etnatons, apparently ran afoul of moderate Republi-
cans on Capitol -Hal and Reagan's own inner circle--
of California adviser's, who felt he might be too hard.
to handle - . ..!-?
Soeee
ter letting '7Sirtion twist - in the sfind -of .
;ere. ?
fettnatenibuted political sniping from his enemies for ?
.several- weeks, Reagan apparently was content to let.
withdraw his namefeenn consideration..
? ?
PRESIDENT-elect thereTturned to Donald
? T. Regan, aformer director of the New York
& Steck Exchange and now the highly respected
^ chafrmane of Merrill :Lynch & Co..; the nation's
..-?1.3.1-gestinvesent brokerage firm. -
-I:-T-!!! Regan has first-class credentials for the'. Treasurj
_post and will undoubtedly be fine. But Simon, who-
. -.brought the inflation rate down'frorn 1.2.5% to 4.3%
^ as Ford's Treasury secretary, -might. have been a
4-;411=tappropriate, if more difficult, choice.;- _
A3 commerce secretary, Reagan picked Malcolm
? Balchidge, 58, chairman-of Scovill Inc.,a Waterbury; ?
c..Onetn. manufacturing firm. Again a highly
AppragratA5PArtreareeeVOSIVetbliMA
ADP91-00901R000500010002-3
?Ices:
_ .
-
this (Baldridge ran Vice Presideatelert Bush's
campaign against Reagan in the GOP prenary).
. But in designating Baldeeige. R aen bypassed -
Republican National Chairman Bill ereck, who had
been angling for the job. Brock, a former senator
from Tenaessee, is widely credit-d for the im-
pressive Republican gains in the co lgressional and
state legislative elections: Howev-r, Brock was
targeted by the GOP's New Right as no left-leaning,
so scratch Brock: _~ ? ?
The same kind of commentary c itild be written -
on each of the Reagan-choices teus fare When .
criticisma were heard from either : ea far right or.
-.nom powerful Republicans-on Capiesi Hilt, Reagan
..ose to avoid a fight The on e . 92,:a2_11342
? j. 1 xi J. Cgsev. a- well4elown Ne ..e York lavee !
ferner char nan of the. Securities and Exchange
Commission who was-picked by Rea ;an to head the-
Casey, who managed Reagan's _pfesidential earn-
_palate was a high-level Intelligence o ieretive
World War II forethe OffeoiStraie ServicesIthe
legendary OSS, and he is know7 23 a teugh
outspoken and crusty operator. -
STATINTL
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LF7:JLE THE WALL STREET JOURNAL
?
Ronald Ri.47;aifi'-tt.ist eight Cabi-
net.. choices wisely dodged most of the
substantive questions chucked at them ?
in their maiden press conference, but
it was possible to get some Mitial ink-
ling of what kind of Cabinet this..will
be.-r.They think pretty much alike on
the' ieed to restore market meclia--'1
nisms and bring- the federal .governefi,
mini under better controle.:-_:?.:.?..:i;,;?tti
t. Their soberness :was interestinge!,';
however.. In the past, Cabinet appoint.
ees' have often looked flushed .with ex?
citement wheneeintroduced
press.. These mennfoureofewhnirOaren'
in their 60S",;'Iriiitstly- have successful'
careers ? behind them didn't need-
new laurels for their crovmsl'It seems
probable that all are very much aWare;e
of the difficulties that lie before them.
The initial, appointments put ? key ?
figures of .Mr....Reagan's economic
team n in place. The likely teard leader,
Dm Regan at Treasury, was a choice
worthy of speculation. Mr." Regan's
personal abilities have been demon-
strated in his success at Merrill
Lynch, where -he: has shown daring
and imagination in-taking that old and ?
revered Wall Street:house into new
ventures and. ?markets.. He has di-
rected a great deal of criticism at fed-
eral budget management in recent
months. .
:'it Mr. Regan could be an apt
choice for another reason. He is a man
who -understands_ the credit markets.
which will be of primary --. concer_nnr
when the new administration tries to
cope with inflation, pet, he is not, tech",,:,,
nically at least,: a:banker.
. Indeed, Mr: Regan has spent 'fa. :
great deal of ;time:doing. battle with
the banks as he has , moved Merrill
Lynch into areas,:. such as Cash Man--n-
agernent Accounts. that directly corn-
pete with banks. lithe administration
is to be successful.in. getting the Fed ?
to restrict creatiornoi bank reservei,',...
it may-find itself.4sonsiderable conflict with
-
12 December 1980
11:- The Reagan Team
-'2DavieStockmain'thie-Youne, Con-
gressman who will take over the Of-
fice 'of Management and Budget, has'
developed, along with 'Congressman
Jack Kemp, a lucid game plan for the
anti-inflation fight, excerpts- of which
we print elsewhere on this page today.
He has been an important spokesman
for..supply-side economics,- . which as
the Stockman-Kemp memo. 'suggests,;
is ,far from simplistic 'tali:slashing.
Mr: Regan, Mr. Stockman and the..
President will have a formidable chal-
lenge in front of them trying to put an
ant-inflation policy' into. final shape:::
and: Win congressional support. for in-.,
Well 'know more about .ththrust
'the administration's economic policies
when- we .see the crucial second and
- third level appointinentsebut the expe-
rienced Mr. Regan and keen-witted,
, Mr. Stockman look like the start of a
good team.
.Another- big job filled yesterday
was Cap Weinberger for Defense. Mr.
Weinberger has survived some very
tough government jobs, running HEW
and the GMB, for example, with all
limbs still attached. As Defense Secre-
tary he will need an almost superhu-
man ability to sort out priorities and
persuade admirals and generals to
work together, but Mr.. Weinberger
seems well-equipped for that.
? Former Senator Richard Schwei-
ker, who will take over Health and Hu-
man Services, has been ranking minor
ity. member of the eSenate Health,
Manpower . and Education Committee
and has. thus had an opportunity to
witness the. long evolution, of federal
health care policy, which has helped
fuel the federal drive- towards bank-
ruptcy. In the last few years there has i
been new thinking about ways to bring!
market restraints to bear on Medicare
and Medicaid and we would expect I
Senator Schweiker to pursue these ef-
forts. 'nen
Ti T
:- William Casey, v, ..a.l.ces charge of
the CIA, goes all the waTrirc7c to in tel-
'ligence work in Wori.i War LI. it could
be very usen.d to ha:7e a CL7. nerTcror
with tais }aria or pe-spective, as well/
- as a rnucn oroa.ter cxpenancti.wj
an p?d?Tarr rh?e?CL. nee:is torn-a-Its'
proper role again in 1J.S. toreign
The choice of Sta asneld Turner:TY ;
..Presibent Carter dt'esn't appear to
have been a. partciil-arly tortunate,
one, despite the atimiral's .obvious
aoilmes.
As to the other two appointees,
Malcolm-Baldrige t Comrnerce and
Drew Lewis to Ti ansportation, it
would be , difficult to guess how well
they might do. Mret eon's, in particu-
lar, takes on a part.cutarly difficult
job as Secretary of Teansportatien,
mainly' because the carter adminis-
tration has involved the government
so heavily in interfere 'le, with auto de-
sign and rnanufacturi ig and financing
railroads and urban tri_nsit. If Mr.
. Lewis has a mandate to dismantle the
DOT, we're all for 'it -.
Many important lobs, including
'Secretary of State, re, -,ain to be filled,
and no one should un lerestimate the
impact of second an third tier offi-
cials. But. on the wt ole, the sober-
faced men who stood efore the cam- It
eras yesterday look lik e. a pretty inter- t
esting bunch.
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ARTP:_;LE
ON PAGth512,_
THE WASHINGTON POST
12 December 1980
zi2e
'V!
?
- "
-HERE IS an awful lot:we still don't know-about.
' Ronald Reagan's prospective Cabinet, such as,
- for example: where's the rest of it? And even after the,
. 'President-elect has disclosed his choices for all these
jobs, we.still won't know either how much of his Cable.
net-governmentinnovation lie plans to put iritoeffect
? . or how the personal/power chemistry among the' top-
people will work out. This last point is especially im-
Portant; People are more .(and. sometimes: a lot- less)
than the sum of the parts of theirresumes:
Still, everewithout.the naming as yet of either the ?
,whole national security or economic first team, a few
facts about the Reagan designations stand. out. Of
the batch named yesterday,- Rep. Dave* Stockman;
proposed for director of the Office of Management:
and Budget, is distinctive on several scores; not just-
his relative youth. This is an audacious designation
by Mr. Reagan (who got to-know Rep. Stockman, in-:
cidentelly, when the congressman was impersonating
John Anderson and then Jimmy Carter in pre-de-
bate rehearsals with the governor). * ? ? . ? -
Mr. Stockman is a man of great *political energy
who is strongly identified with a collection of views
on how both a federal administration arid a national
',economy should be .managed. (separately wherever
- possible, in a nutshell). But alone of yesterday's
group he has this kind of powerful. association with
what you could call one school of views on a complex
of.disputed issues to be addressed by the-Reagan
;. gOveniment. The others named have, notably; not
? been at the raging heart of the arguments over- the.
subjects and jurisdicficins they are to inherit .? ." ? .
Caspar W. Weinberger, for instance, a skilled anci-
n.1"."'
respected -administrator,"..whose'preVious Cabinet*
?
work (0-NIB, the-old Department of Healt , Educa41.
,..tion and Welfare) was very well reviewed in Wasbing4 -
ton, -has certainly not been involved in ai y serious:
way in the big contention over defense pi iicy. And .
:.,DOrreild-T. Regan, who has presided over a uccess.
:New York brokerage house, is kno.Wn. for-he ein4 livd
-'withrienblie Policy; :in his business, very siccessfullyi,
and.:even:prescientlyt?but not for having ri.acli?. such
poliHe too. does not represent one side r another'
ein:.thee cOntroversies, that -have emerged*-
. i?within-the-prospective Republican; governni mt. He-is
not, to put it as crudely as we?can..BillSimo,
.William Casey; named forthe CIA dfre-ctc rshirr.liwt
been, around this-town-plenty .before and certainlY1
some .ot his views on how .the agency silo, ;i 5e. reel
ViTred are going to, be the subject of dispute --iney
reare. But normore than the others wno ,vere
? -irgriated .does he represent the triumph of - he "Here:-
. logical, wing" of anything. These are. by and arge men:,
known for their competence at what they- o. Merci-
fully, Mr. Reagan spared Us that traditionai presiden2e
. tial palaver about the, "extra dimension" of sach man-
or-- his, most-distinguished-in-the-werldnese and tha:'
rest- Very workmanlike, very .businesslike, very low
key, at least as measured against orthodox p aiuce?
We will get around to the more substant ye. policy
? :implications of the Cabinet *nominees ev, iert then
.? harries have all been announced Our first i npressink
is earily ??tentative, provisional..But ii is this-42..-1
that Goy-. Reagaremay be serious about th, Cabinet--;:.1
"government:fermate but he is clearly not .p aiming teiz.
-; ?base :it on the 'appointment of 'superstar or prima
donna Cabinet figures. What looks* to be eirer.ng is
something more collegial, board chairman p,,rs-board:,,,4
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THE WALL STREET JOURNAL
12 December 1980
oi PAGE
Chooliig a Cabinet.
?
Reagan Lineup Includes Season8 usiiessmen,
Allies No Minority Members or ornen
, 10.14. V.,44.d. rt.
By T15101115:7Seiikl-LHAIth,T
S Cali Reporter of TmaWau.senr.zreottaerin.:-.i.
WASHINGTONTeRonale Reagan turii-ed
to old friends, politicarallies and exp-eri
enced businessrperi,t4lllhefirst half 0f his
Cabinet. 4 :V
The irtitial eightnca inet niembers-4ere
announced yesterday although the Presie-
dentelect broke' withe tradition. and didn't
personally annotinceeitlienree'eq.,`,
,
There weren't- an. yeasurprises In the grOup,
nor; were there ' wohneh': or.members of Trros,
norities'aReagan,..aideScsayl,representatities'
of'etticse,;po1it1ca11y potent... interest 'grou
arg.',expected, to.be, arn9pg. mr....Reagan's
nil ehoices; liketz_tikte named. next. weele.iiie
California.. ? ?'
?There weren't-anysurprises-in the groun;i
theniong-awaitecl, "announcement of Cabiner
appOintments wasv:,iiiiade yesterday. ,,after4
noo in the noisy,: crowded ballroom at
downtown hotel here:' He left the task to his
n e*E;
transition pres4a9kesrnan, Jim Brady, who
read the appointees ',:names as they paraded
before television cameras.
They were:
--Donald Regadq't years old, chairman
. ,
and thief executive:cifficer of Merrill Lynch
co:;? to be Tree:Sail Secretary.
Caspar Weinberger, 63, vice president
and general counSet,-, of -Bechtel Group, as
Defense-Secretary&Aeee', e' e
'Llketalcolm Baldrige,..58, chairman :'and
chief executive ofeScoviireliace, to be Corn-.
merce.Secretary-aAlea: :?
--David Stocittaaine, 34?:.Republi can Con-
gressman from Michigate-tto be director of;
the Office of Ntanagementand Budget..e"e_e!,:s,
French.'Srmtk; 62, Los AngeTes.',
lawyer and Mre'Reagares personal attorney?:-.
to be Attorney Genera.t....,
-e-Richard Sdiweikere-54, itepubliCan Sert-
ator -from Pennsylvania.-i. as -Secretary, GU;
Health and Human Seraicese
:
Lewis '4Phfladelphia-area-
nianagement consultant-and deputy clIalr4;'
man of. the Republican l',Itaticnal Cornrnittee,
to be Transportation.Seetary. ;
Casey; 6:-.New York tax law-
yer And former hairzna.re the Securtties-
triT..Exchan e to .be director of
etli?ra1 InteihgnMeJ.,
of -the- appointees must be Confirmed
by the Senate to their S89,630-a-year posts.
None of them are likely to face tough confir-
mation -battles; although_ MreeRegan's ap-
pointment as Treasury,- Secretary drew
strong early- criticism yesterday. from hard-.
line Conservatives. Democratic.Senators are
expected to grill several of the-nominees, es-,
pecially- -Messrs_ Regan, Stockman and Bal-
rige,'en their economic views.:
? :Mr.- Reagan's decision against personally
disclosing his -Cabir.et choices was surpris--
inge especially- since h e repeatedly has said
his Cabinef-will wield greater:independence
and authority than previous'ones. Indeed, he
is, expected to designate several Cabinet,
membersaineluding the Secretaries of Trea-
sury; .Defense, and 'State.' as a -sort of
"super" executive committee to help deter-
mine domestic ar.d foreign policy
Asked to explain Mr. Ragan's abseace,
Press Spokesman Brady-said, "He feels that
this is the Cabinet members' day, it's their
show and he doesn't want to do anything
? that will detract from them."" -
[ However,- other transition. officials said
privately the:reason was that, if he had been
there, .Mr_ .Reagan- would have been pum-
meledJ:with _questions on" the absence of
women .and minorities in his initial choices
I and on the controversy surrounding his se-
' I -
ec on- for -Secretary- ofe State: -Alexander
Haig, a: former Nixon- administration offi-
cial, is viewed.as the likely nominee for the
State Department post But-he has drawn
criticism.- from. some, Democratic Senators
because-of. his role as White House Chief of
Staff _during the final months- of the Water-
gate scandalee-
If he had been there,- Mr.-Reagan would
have been among many close friends and al--
lies. Attorney General-designate Smith and
Mr. -Weinberger are long-time pals- of the
President-elect. Aad Messrs: `Casey, Lewis,
Schweiker and Stockman all played roles in.
Mr. Reag,an's presidential campaign. Mr:
Baldrige has dose ties to Vice President-'
elect George Bush and ran Mr.. Bush's Con-
necticut campaign for the Republican presi-
dential nomination. Mr. Regan, perhaps the
nation's. leading securities executive, is a I
close friend of Mr. Casey, who is counsel to,
IMerrill-Lyndrs law firm
. . _
In ?-a. statement-Mr. Reagan said 'his
choices: "cornbine a balanee of experienced
hands:with fresh faces; Ilt'W ideas and sea-
soned perspectives." As a group, excluding
two-term lawmaker-. Stnceman, the initial'
Cabinet Members: average airriest 60 years
in 'age. 'Half 'are Harvat ri graduates, the
other:half went- to ;Yale: Mr. Reagan said
the men' -"share my philoeopny and my- be-
lief in Cabinet government and teamwork.":'
Biit'several spokesmen for new-right con-,
-.e-
servatwe groups questioned that statement.
They. criticized. the ,appoit:trnent of Mr. Re-i
g-an- as Treasury. Secrete, y, contending the
"wan? ic ? philosophies of the securities-
dustry executiyee and . the- President-elect
conflict4 Paul Weyrichedi -ector of the Com-
mittee or the-Survival of a Free Congress,
termed - thee, Regan- appointment:. "ques-,
tionablet" He: maintainec that Mr. Regan
"really ;isn't in accord" with th,. President-
elect's7-J-iew on the econo ny_ Howard Phil-
lips of the Conservative C Lucas, making the
same criticism, called ti.e choice -
tunate." I ,
? 4eagan's - finale t. abinet picks-for
Secretaries of State, Housing and Urban De--
velopmerlt ' Education, Er erey, Agriculture
and. Intetkor -are expected to include- seve-
eral fates, new to governr lent. Sources say
that; among them are likey to be Raymond
Donovan, 50, a New Jersey contractor, as
Labor Secretary_ Mr. Dolovan, whose- Se.-
caucus, N.J., construction atm pany is union-.
ized, is }mown as a fairbut hard-nosed union.:
negotiator/e-----"? ' '
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I
ON THE BALTIMORE SUN
12 December 1980
me
?A- ?
? ? ? A-13T.37'..,..42 f. -';
sinessm
By Gilbert A.telahsvaite,-71
Washington Bureau of The Sun? -
-;":,?-Centralrantelliienie 'AgencY-1-Wil-
11am J Casey, New York lawyer and Rea- I
an camnaism official. : ?,/ ? '.7-;',).44
TED
WILLLANI J. CASEY:'
? ' :director of central intelligence
?
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InT
OT IA3'Ei
STATI NTL
For Release 2001VO4/616(:,,PlAnRDP91-00901R000 -
12 DECEMBER 1983
REA lAN- DESIGNAr:ESt.
bIGFIT-70 J1j1i FATS
AT CABIN,T LFVKJ
SEES A NEW START FOR NATION
Regan, Weinberger, Smith, Lewis,
Baldrige, Schweiker, Casey
and Stockman Selected
?_ By STEVEN R. 'WEISMAN
Special w The New York Times
' WASHINGTON, Dec. 11 ? President-
elect Ronald Reagan announced his first
eight Cabinet-level appointments today,
declaring that together they constituted
"the exact combination to create the new
beginning the American people expect
?-e?
State
Not
announced
Interior
Not
announced
Agriculture
Not
announced
Labor
Not
announced
Housing
and Urban
Development f
Not
announced
and deserve." _
Those who were chosen were presented
? this afternoon at an unusual joint news
conference, which was not attended by
Mr. Reagan. In a statement, the Presi-
dent-elect said that with these selections
he was "more confident than ever that
Cabinet government can and will work."
, Introduced one by one by James Brady,
a transition spokesman, the designees
lined uptefore a blue curtain in a packed
meeting room of a clownto,,vo hotel here,
all wearing dark siiitS and ties. They
stood together answering questions for ,
about half an hour and then left quickly.
Designees For Top Posts
. Those announced today were:
_ .
Director of Central Intelligence:
liam J. Casey, counsel to the New York
law firm Rogers & Wells, former chair-
man of Mr. Reagan's election campaign.
EXCMPTLD
Energy
Not
announced
Education
Not
announced
he sr York n f C ' .
William J. Casey, let,
was nominated t
C.I.A. director, ,
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A-631CIAE
o:1
THE WASHINGTON STAR (GREEN LINE)
12 December 1980
STATI NTL
!-f4?.?5, tIVC7
St 01Ce
-re:45,141
]ntra Lice
? By Lisa Myers - ? -
:--Washinglon Star Staff Writer.- .-
-
The nominees -"were: Donald' T.--
Regan as Treasury secretary; Caspar
W. Weinberger as defense secretary;
William French Smith as attorney
general; Sen. Richard S. Schweiker
as secretary ot ? health and human
services; Rep. David A. Stockman as
budget director; Drew L. Lewis Jr.
as transportation secretary; Malcolm
Baldrige as commerce secretary; and
William J.. Casey as CIA director.
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THE WALL STREET JOURNAL
ON l'AC?j;_ 12 December 1980
World-Wide
REAGAN CHOSE Caspar Weinberger for
Defense and Donald Regan for Treasury.
..-Eight Cabinet-level jobs were filled by
the President-elect, who tapped personal at-
torney William French Smith to be Attorney
General. Rep. David Stockman (R, Mich.),
who favors sharp tax cuts to spur invest-
ment and combat inflation, was picked to be
Budget Director. Campaign manager
Casey is to head the CIA.
Reagan selected Pennsylvania manage-
ment'specialist Drew Lewis as Transporta-
tion Secretary. The Commerce post will go
to Malcolm Baldrige, chairman of Scovill
Inc. Sen. Richard &hweiker (R., Pa.), will
head the Department of Health and Human
Services. All appointments are subject to
Senate confirmation. -
Left unclear during the formal an-
nouncetnent, which Reagan didn't at-
tens was whether retired Geri. Alexan-
der Haig was due to be named Secre-
tary of State.
STATI NTL
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PATICL4WQ
O PACI?
For Release 2001/03/06 : CIA-RDP91-00901R00
CHICAGO TR TBI1NE
12 DECEMBER 1980
nald Reagan's nominees
CIA-director
William Casey
Manager of Reagan's carn-
paign, :chairman of the
'transition; formerly Nixon's un- ?
cersecretary of state and cnair-
man of .the . Securities and
Exchange Commission. ?
Budget and personnel figures
not available -
Function: To advise, the Nation
al Security Council on.intellig-
once, gathered by various
agencies: to correlate',
evaluate and disseminate intel-
ligence reratirg f.o; nailonal
security: t to coed - foreign
intelligence..
William J.' Casey, 67, President-elect
Ronald Reagan's choice to head the
CIA, is a Wall Street lawyer who served'
as Reagan's campaign director. As
campaign strategist, he was said by in-
siders to he ineffectual, but they note;
that Casey has considerable experience
in the intelligenee .field. During World,.
War II he was chief of intelligence oper-
ations in Europe for the Office of Stra-
tegic Services, the precursor of the
Casey seryed... as ,undersecretary
state for economic affairs and later as
chairman of the Securities and
change.. Commission during the Nixon
administration.. In his only bid for politi;,
cal.office, Casey ,was defeated in a
,
York congressional election.
' He took over the. Reagan campaign::
atter the President-elect fired John '
Sears last winter. In the general elec- ?
tion, though, . Ca-key found himself
eclipsed by the wily Stuart Spencer. Af-
ter the election, Casey served as chief of ?
Reagan's transition committee.
Casy is a graduate of Fordham Uni-
versity and St. John's Law School.
STATI NTL
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Ai,s, T. I C:LE
ON PA
THE WALL STREET JOURNAL
12 December 1980
Casey :Would Carry 2 Assets to CIA Post,
But Re's Also Seen Bringing 2 Liabilities
By GERALD F. SEIB
Staff feeperrter of TI-13 WALL Sraz JouRN A L
WASHINGTON?William J. Casey, the
gruff New York tax lawyer nominated for
director of central intelligence, would being
to the job two valuable assets: a close rela-
tionship with the President and Intelligence
everience. ,? ?
But, in the view of intelligence profes-
sionals, he also carries two liabilities. His
age-67?causes some to wonder whether he
has the vigor to revitalize the Central Intelli-
gerAceAgency, which many experts consider
tabe seriously demoralized.
?And professionals fear that Mr. Casey's
intelligence experience, which dates back toi
World War II, might
be outdated. - ? eA-if., -
"The initial reac-
tion is going to be a &?
'
wait-and-see one"
said one former intel-
. :(1);
ligence oftcer. ? ? tr-T:rie
As CIA directore---1--4..
Mr. Casey would in-. sr ? ?
herit an agency that "
some of Ronald Rea- ,
's advisers think N'e
needs wholesale im-
provements V and:
..r.weeping reorganiza-
tion. They reportedly ?
recommended that the new administrat on
place greater emphasis on covert action and
counterintelligence. ??
- Mr. Casey said yesterday that the recom-
mendations are merely a collection of "in-
formation and ideas" gathered by the transi-
tion team. He said behadn't read the transi-
ti6n report yet and would set policy later. ?
But Mr. Casey has said the U.S. needs'
the world's "best" intelligence, and he ap-
parently shares the view that the CIA's
operations need to be strengthened. One in-
dication of the emphasis the new adminis-
trat-lan-will place on intelligence may be the
announcement yesterday that Mr. Casey, as
director of central intelligence, would be -.a.-
member of the President's Cabinet.... - ?
.Stansfield Turner, the current director of
national intelligence, isn't" a Cabinet mem-
ber.
Mr. Casey, who managed Mr. Reagan's
election, campaign, served during World
War H. in the U.S._ Office of Strategic Ser-
vices, a highly regarded intelligence opera-
tion that was a forerunner of the CIA. He
eventually rose to become , chief of intelli-
gence for the European Theater.
: But for most of his adult life, Mr. Casey
has been a highly successful tax lawyer. He
made a fortune publishing "desk bcoks" for
lawyers needing to know about, taxes and es-
tate planning.
_ President Nixon appointed him chairman
of the Securities and Exchange Commission
in 1971. Liberal Democrats protested, saying
Mr. Casey was too close to Wall Street. But
many of the critics were pleasantly sur-
prised when he turned out to be an active,
relatively tough replator...?.- ? -
Mr. Casey later be6aine Under Secretary
of State for Economic Affairs, then .chair-
man of the U.S. Export-Import Bank.
He managed Mr. Reagan's presidential
campaign from last February through the
election?although much of the authority for
running the campaign was assumed by Ed-
win Meese,- a Reagan confidant who will be.
White. House counselor.
.-.Intelligence experts 'say that ,the first
problem Mr. Casey s :oe'd tackle is low mi
rale- al-othe CIA. Th- agency was several
shaken during the re d-teies by a period (
.Cohgressional invest eation_s and.:press..di
. closures-of questiona ectivitp_se
Morale saek further, former officers sae
when .e.f.e. T.ureer elir ;Mated about Set.} job
lathe Vgencis.coi.'Vt ectioa programs
1S7.tsAs a reseit,1 ma )y intelligence profeS
..sionals disliked the. :areer ?adrathistratioi
nirec most ever/bad
'agrees that anything ?tould. be an improve
-ment"says one former: intelligence officer.
. . - _
:seMorale;-; also will ji rnb,:sorne -observers
say, if-the new admire .tration can get Cori-
g,ress to- pal? desiemed to?protect
CIA. agents: One .would outlaw the wholesale
disclosure- of the .narms of CIA undercover
operators. in recent rr ates, some publica-
tions have printed - lis .e urames of _CIA
agents..This has sent st :vers through the irie
tellig,ence community, 'hose members fear
that disclosure of age its' identities opens.
them to attack from un r rieedly agents: -
The second bill won ci eeclude some CIA
triateriaissfrom disclos ire ender the Free-
dom of information A rt. Intelligence offi-
cials-contend that such t tell is necessary to
assure agents and Sour -es that their names
worit_
be released. -
?Mr.';.Casey- isn't ex eected to encounter.
ahy serious problems ii c:onseressional con-
firmation hearings. Hui he may face-some
ticklish questices over recent .disclosures
that while.he was chail mart of the. SEC he
met ssithe- a -lawyer- fo-- tegitive financier.
Robert Veseo. Mr_ Vesre+ wes tinder SEC'. in-.
vestig-ation at the time. .: ez? eess
'e Mr.-, repre.se etative- broil ghte ups
the-investigation.durine the meeting-with'
Mr:-Casey-But Ricliat Allen,s-a. Reagan.
foreign I.Nalicy, adviser who...arranged .thei
meetin,g;shas. said -.that te didn't !claw the-i
lawyereWoillirdiscuss the Vesco
investiga-
tioff;AndMr Casey said yesterday that her
.directed-': the case; again 4 _Mr. Vesco, ? whoi
eventually_ was indicted iVP separate dmese
in U.S., courts for securiies violations- Mr:-
Casey Saicf.heididn't think there was "any
question":, about his-vigo -ous pursuit of the-
case aen n st ;
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STATI NTL
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THE CHRISTIAN SCIENCE MONITOR
12 December 1 980
Changing of the guard at the CIA__
In tapping William Casey to head the Cen-
tral Intelligence Agency, President-elect
Reagan is sending a clear signal to Congress,
the American public, and overseas govern-
ments that US intelligence-gathering will be
given increased priority by the new adminis-
tration. Mr. Casey ran Mr. Reagan's success-
ful election effort and is currently chairman
of the transition committee. Moreover, the
extent of that renewed mission for the CIA
became apparent earlier this week when the
GOP intelligence transition team proposed
sweeping changes in the organization and op-
eration of intelligence-gathering, including a
call for an increase in covert action abroad. ?
We are not unmindful of the need to
strengthen US intelligence capabilities. par
ticifinrly through ensuring a careful balance
between the human side of intelligence gath-
ering and analysis, and the use of gadgetry
and technology such as spy satellites and
computers. But we would urge the new ad-
ministration and Congress to be wary of any
loosening of restrictions currently applied to
covert actions. As Monitor correspondent
Daniel Southerland pointed out in a series in
these pages earlier this fali,there is a great
need for US intelligence work to be fitted once
again into a clearer sense of national foreign
policy priorities. That means a greater ern-
phasis must be placed on understanding the
many cultural and political changes sweeping
the world, with a need for recruiting thought-
ful, well-educated analysts into intelligence
work. The years with a James Bond aura of
manipulating governments and plottrig as-
sassinetions are now behind us.
What must be avoided is a return to the
days of going for "quick action" cloak-and-
dagger operations. Intelligence work, rather,
must be made the handmaiden of a carefully
defined US foreign policy.
That should not preclude a greater empha-
sis on counterintelligence. There is little
doubt that terrorism and Soviet espionage are
continuing threats to the US.
There is some question, however, whether
having a national central records system, as
proposed by the transition team, is the proper
solution to better counterintelligence. As pro-
posed, the recording system would maintain
records not just on presumed overseas agents
but also on dealings of those agents with
American citizens. To many lawmakers, such
a system comes close to a national police dos-
sier on US citizens and would likely pose
grave constitutional questions. In fact, we
rather suspect that any such system - if ever
put into place by the new administration -
would quickly become embroiled in litigation
from civil liberties groups. And that would de-
feat the ultimate purpose of having such a
system in the first place, namely, increasing
intelligence capabilities.
Legislative proposals to establish a sepa-
rate clandestine agency, as now proposed by
some lawmakers close to Mr. Reagan, also
strike us as questionable.
Mr. Casey, because of his background as a
lawyer, former head of the US Securities and
Exchange Commission, and onetime official
of the old Office of Strategic Services (OSS),
is particularly equipped to oose the careful,
long-range policy questireis that wii.I be ,
needed during the days ahead as the Reagan
administration seeks to den ne the new direc-
tion for the CIA. Although oine current CIA
officials are reportedly coecerned that Mr.
Casey's views of intelligeac -e are too rooted in
the OSS "night parachute C: coo" mentality of
the 1940s, his tenure as SEC chief indicated
caution and deliberation. Vie. would hope thati
the same qualities will con, e to the fore dur-
ing his days at the CIA.
We think Mr. Casey mig et profitably con-
sider ways of increasing a -nore competitive
system of intelligence anai is's, as proposed'
by the Republican Party tr insition team. Di-
versity of ideas and informetion is as impor-
tant in intelligence gatherieg as in any other,
endeavor. We would also tie st that Mr. Casey!
will continue the pursuit of technological inno-
vation that has been one of the accomplish-1
ments of the CIA under its current director, !
Stansfield Turner.
Whatever else is done, we think a basic
need is the strengthening of the entire US edu-
cational system: Will int e lligenee agencies
down the road be able to fin, I the cultured per-
sonnel they will so badly need in a society that:
has downplayed foreign lai guages in schools'
and shortchanged basic ce ucational skills?.
The longer-range objective - and problems
- of US intelligence agercies must not be,
overlooked in any consideretion of short-term
solutions. Careful deliberat on phis regard for ?
the long-range need - tiles} must be the main:
ingredients in planning for ne new CIA. ... .
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G 1,E
ON PAGE 143
THE WASHINGTON POST
12 December 1980
STATI NTL
see ? ?
.e.By George Lardner Jr.
Washtngton PostStat t We
lter
!Wiliam J. Casey has had .his
scrapes -,with 'congreesional investiga-
tors before. He has aLio, as he pointed:
out -yesterday, "been confirmed by the
United States-Senate 'four times."-
-The shambling,- plain-spoken New
? York lawyer made plain that, he has.
every expectation of being confirrne&
again; this time ?as- director of the
Central Intelligence Agency in 'the!
Ronald: Rea.gane administration. Amid
calls for more emphasis on covert ac
tion abroad and a more prescient in-
telligence system.- -at home, Caseye
would be returning to a routine he left!
behind in World War IL -
And the objections that were raised
against himenearly 10 years ago ---
when President Nixon named him ,!
chairman of the Securities and Ex
change Commission ? could, as they
? did then, prove as. much of an asset as
an obstacle to speedy Senate approval.
Casey was accused- by aides ? then of
too-sharp dealings in the business
,world. His supporters replied that
they were impressed by his "energy 1
. and toughness." ? ?-?-
Born in Elmhurst, N.Y.; in 1913,
s Casey hae alwasei had a reputation as
a, quick study, a pragmatist interested
, in-results-The idds he_grewenpewith
-'"called hihe "Crime." Colleagues- say.
etions. For BM Casey, workable an-
. he has no pat:axe for perfectezolu:
swers are much -better than perfectl-
; ones. te???? . erei
I "A graduate of Fordham and SO
John's University law school, Casey-
. joined the Navy after Pearl Harbor,.
but found himself oensigned,-ecause
of poor-eyesight?.-co the-tedium ofpro-
curement 'contracts._ He managed to.
get dose to -people who were close to.
William (Wild WY Donovan, head of
the. Office of -Strategic ?Service, - and
won a traxisfer.to the OSS.
Approved For Release 20
"As_ a man who had learned early-I
how -power functions," historian _Joel
seph E. Persico has written, "Caiey?
knew that in OSS most power lines:
led back.to the Donovan law. partner-
ship in New York" -?
Ha was-soon sent to London where
he became chief of secret- intelligence
for Europe; with direct responsibility
for penetrating Nazi Germany with
secret agents in the closing days of the
war: -. - ? :
After postwar service in. Washington
with a Senate committee and in Eu-
rope as a Marshall Plan adviser,
.Casey returned to New York, where
he made a fortune practicing tax law
and writing specialized and reportedly
highly profitable manuelsien tax, real
estate and investment law and related!
subject& Among the titles: "How toi
Raise Money to Make Money," "How!
to Build and Preserve Executive;
Wealth" and "How Federal Tax An-
gles Multiply Real Estate Profits." -
Casey made an unsuccessful run for
Congress in 1966, and wile quo`ted
saying: "I've made all the money in;
business that my family :could ever!
spend .... I want to dol something
more meaningful and I'm convinced'
that with my qualifications, I ? can
make a real contribution in public of. !
fice." --
-An active Republican and contribu-
tor to conservative- causes _ for years,
Casey carne in for his first Senate
confirmation clash in 1969, - when
President Nixon named him to the
advisory council of the Arms Control
and Disarmament Agency. Chairman-1
J.W. Fulbright (D-Ark.) of the Senate I
Foreign Relations Committee took is-
sue with a controversial advertisement'
on. behalf of the ? antiballistic missile ,
system that a -committee Casey-
founded had placed in various news- -
'papers. But the committee approved
his appointment. ?_ ..iee ? . --
? A tougher battle developed in 19711:
041Q C WIREN2t9T0690:
ate g Committee 'quickly ap-
proved the nomination, ?but
Ham Proxmire (D-W) led a fight to
reopen the hearings .klter a variety of,'
lawsuits came to light_
In two of the suite Casey was ac-i
cused of violating securifies laws. Irt
another, 'which -he evenally settled;
for $20,500 aa part c a post-trial ar-,
rangement that inch .ded sealing the.
record, he ,Was sued tr plagiarism. ,
Casey's :account ot the plariSne
suit was disputed by he tie' judge on",
several ?? -key -points, fueling.: doubts-
about Casey's =do-, but the corn--!.1
mittee stocel behind his appointment
by a vote of 9 to 3. Proxmire! cOin-1
plained in a Senate floor speech that-
he still did not, feel i 'asey sufticientlY,
? "beyond reproach" b. be SEC chair-
man, but no one. voted against, confir-
mation.
Casey won high msrlcs for his'near--
ly two-year performance at the SEC. A
surprising many obserrers with -the
vigorous way he dealt with the securi-'
ties industry. He iestructured the
stock markets to incrsase.competition-
?and strengthened tin incial discicsure ;
laws to make them !mire "realistic." I
The performance ,eemecl to vali-
date the predictions ef some senators I
that his "rough-aml-tumble back- ,t
'ground" would prove an asset at the..
SEC. ? - . . - I
'In October :1972, however, 'Casey: e
became embroiled in tproracted and
bitter dispute when the SEC turned"
over to the Justice Deoariment its en-
tire file ? 34 cartons ? on the Inter-:
national Telephone & Peleg,raph Corp.i
11 1 had been accused at Senate hear-
ings earlier that year of pledging fi-
nancial support for the GOP national
convention in return fir settlement of
:antitrust disputes with the Justice De-.;
partment.
. -? . ,
House members ' Who had been
?seeking some of the leccirds for con- I
gressional scrutiny -c died- the SEC 1
.- move an effort to put the docunients.)
out of reach until after the 19'72 elece-i
he gave the:.1
RO?ps51)00tice34f)002643 that
Department the filesbeanisel
the department had asked for them.. JJ
Z Z.0
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AATICL .4117)aEl)
NEW YORK TIMES
ON
12 DEGEN.BF,R 1980
Director of Central Intelligence
William Joseph Casey
By WARREN WEAVER Jr.
Special to The New Ye,* Ti mos
lenged Representative Steven 13:
Derounian, a Goldwater Republican,
for renomination in a Long Island Con-
gressional District. This produced re-
ports, now regarded as more amusing
than accurate, that the insurgent was a
party liberal.
Despite his status as a protege of
Leonard W. Hall, the local Republican
leader, Mr. Casey lost the primary and
did not run for elective office again.
WASHINGTON, Dec. 11 ? In World
; War H, while in his early 30's, William
J. Casey developed a keen interest in
espionage and intelligence. Working
for the Office of Strategic Services in
Europe, he helped plan the infiltration
of agents into France and Germany be-
fore the Allied invasion.
Thirty years later, after successful
careers in business, law and govern-
ment, Mr. Casey resigned the last of a
series of prominent Federal posts, con-
fiding to friends that they did not seem
to be leading him toward the jobs he
wanted: Secretary of the Army or Di-
rector of Central Intelligence. -
Today those ambitions were realized
when President-elect Ronald Reagan
named him to head the Central Intelli-
gence Agency, successor to. the O.S.S.
The action was recognition of the New
York lawyer's service as manager of
the campaign that won the Repulican
nomination and the White House.
In an interview wi ei United Press In-
ternational today, Mr. Casey said the
President-elect had told him: "We
need to have a strong intelligence serv-
ice. Even though we may not have the
biggest intelligence service, we know
we want to have the best."
Lost Congressional Primary
In the 1980 campaign, as in much of
his career, Mr. Casey aroused a certain
amount of controversy; other Reagan
' aides questioned his judgment and
background from time to time, but
never the success of his candidate.
At one time, Mr. Casey essayed a
political career of his own, but without
conspicuous success. In 1986 he chal-
Approvedigg Reg tggfpag
his career, he aroused a
- ?
certain
amount of controversy. .
Named Chairman of S.E.C.
William Joseph Casey was born in
Elmhurst, Queens, on March 13, 1913,
and was graduated from Fordham Uni-
versity and St. John's University Law
School. His New York City accent re-
mains pronounced.
In the Nixon Administration he held
a series of appointive Federal posts. In
1971 he became chairman of the Securi-
ties and Exchange Commission. In 1973
he served briefly as Under Secretary of
State for Economic Affairs but when
Henry A. Kissinger became Secretary
of State, Mr. Casey left the State De-
partment and became president of the
Export-Import Bank.
In the Watergate investigation, the
special prosecutor looked into charges
that Mr. Casey, while S.E.C. chairman,
had withheld documents involving the
In ternatio nal Tel ephune and Telegraph
Company from Congress by moving
them to the Justice Department. Testi-
mony was contradictory and no legal
action was taken.
Mr. Casey was a witness at the trial
of Attorney General John N. Mitchell
and Secretary of Commerce Maurice
H. Starts for obstruction of justice in
connection with a $200,000 Nixon cam-
paign contribution made by Robert L.
Vesco, the fugitive financier: Mr.
Casey testified that Mr. Mitchell had
asked him to see Mr. Vesco's attorney
but said he did not learn about the con-
tribution until later.
Cut Political Spending
Replacing John P. Sears as Mr. Rea-
gan's campaign manager on the eve of
the New Hampshire primary, Mr.
Casey cut back spending and kept the
election effort within legal limits.
Generally, he was regarded as deci-
sive, not overly diplomatic and little
acquainted with modem polling and
television techniques.
Mr. Casey was one of the promoters
of the abortive attempt at the Republi-
can National Convention to persuade
Gerald R. Ford to accept the Vice-
Presidential nomination. Some Reagan
aides believed that he offered too many
concesanons thaoc9oess.
: ClAr-ROFIN IcR000500010002-3
Sophia Kurz. They have a grown I
daughter, Bernadette, who lives and
works in New York Cit,'.
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THE WASHINGTON STAR (GREEN LINE)
12 December 1 980
Text of Press Session
Held by Cabinet Choice
Q: ... Mr. Casey, could I ask you
a two-part question, sir? The transi-
tion report on the CIA recommends
greater emphasis on counterintelli-
gence and on covert action. Is that
to be basically the thrust of your
policy at at the CIA?
Casey: The transition report is
merely a report about information
and ideas collected by the transition
team. It will be submitted to me. I
haven't read it yet, and When I do
I will consider that and consider ?
have consultations with the appro-
priate people in the Congress and
the people in the organization for
determining what the focus of policy
will be., ?? ?
Q: The second part of my question,
sir, do you expect any difficulty in
your confirmation hearing because
of having arranged for ? having
seen the Vesco lawyer at the behest
of Richard Allen when you 'were
chairman of the Securities and Ex-
change Commission? ,
Casey: I've been confirmed by the
United States Senate four times. My
conversation with one of Mr. Vesco's
lawyers broke that case open. It was
my case. I directed the investigation
and the prosecution which brought
to light the largest fraud in securi-
ties history up to that time. I do
not think there's any question about
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fa-uL,AAL,IJ
01'; I'InGE
THE WASHINGTON STAR (GREEN LINE)
12 December 1980
Reagan Stays With Frents
in Cabinet Appoinimrits
No Surprises Seen
From tight Picked
By James It Dickenson
Washington Star Political Writer
William Casey, named to head the
CIA, was Reagan's campaign man-
ager and is something of a testament
to Reag.an's already- well-
demonstrated loyalty to friends and
associates. Some of the people who
are closer to Reagan would be just
as happy if Casey would return to
his New York law practice, but he
wants in the administration ? he
would have preferred State or De-
fense.
Reagan is grateful to Casey for
stepping in and running the cam-
paign during the primaries after he
fired John Sears on primary election
day in New Hampshire, and report-
edly was unwilling to shut him out.
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NEW YORK DAILY NEWS
ON
12 DECEMBER 1980
By ..LAURENCh McQUILLAN
and BRUCE DR.A.ICE-
Washington (News Bureau)?Presi-
dent-elect Reagan today announced his
first eight cabinet-level nominations?
including Donald Regan, chairman of
Merrill Lynch, as Treasury secretary?
and said that.;_all eight "share my
philosophy"- about running the
government.:;.? 7 '21 _
?
The firStglim- ps-e.of who-will be the-!
key players on the Reagan team camel
at a Z p.m. press conference in the-
Mayflower Hotel here.
They are: ". ' -
_
? New "'fork lawyer William Casey,
67, asAiteCtor of the Central Intelli-}
gence:Agency.;_
'
EXCEZTTZP
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STATI NTL
STATI NTL
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?41ICLE 1=1M PHILADELPHIA INQUIRER
DN PAGE /A 12 OF,CENB.ER 1980.
??,.. ? ?
By Saut-Friedman
and Day Ed Hoffman
Inquir 14Ictiotrtgton Bur eau
; WASHINGTON President-elect
Ronald Reagan yesterday named half
of -Itis:Fabinet-level nominees --
collection of cautious, conservative,
business-oriented men.
? The.:Cpresident-elect,'. unlike his
recent predecessors, did not person-
ally introduce his cabinet selections,
who included two men from Pennsyl-
? vaunt.. But he issued a brief, prepared
statentenewhich said in part, ?These
outstanding:individuals combine a
balance- of-'experienced hands-with
fresh faces, new- _ideas and seasoned
perspectives." y -
The appointees, all of 'whom are
whit appeared to be mainstream, if
conservative.Republicans_.?_
? Reagan- filled all the major cabinet
posts except-secretary -of state, al:"I
though. Alexander Haig still is re-
garded as the leading candidate for 1
The positiOns Reagan did-fill, and
the men appointed to them ?subject
to-Senateconfirmation
3:4-? Director of central intelligeikel
Casey_67, of suburban,
New-York City, a former chairman of.
the?Securitiesand Exchange Com-
mission (SEC), and manager of Rea-
gan's?presidential campaign. ? -
,;,:The intelligence and budget direc-
torS,,are not members of the cabinet,
bilt7they have ,cabinet-level status
and frequently attend cabinet meet--
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AiTiCLE
03 PAGE
THE WALL STREET JOURNAL
12 Decembr 1980
STATI NTL
11111r,
ey-4%'1,,i,ld Carry 2 Assets to CM Post,
But He's Also _Seen:Br:1417g 2 ,l_tiabilities
ByGALD FSsta
3roff _Reporter of Tffa WA Lt. STA! E !IT JOURNAL
WASHINGTON-William J. Casey, the
gruff New York tax lawyer nominated for
director of central intelligence, would bring
to the job two-valuable assets: a close rela-
tionship with the President and intelligence
experience.
But, in the view? of? intelligence:profes-
sionals, he also can-les two liabilities. His
age-67-causes some to wonder whether he
has the vigor to revitalize the Central
Intelli-
gence"Agency. which many experts consider
to be-seriously demoralized.
rAnd professionals fear that Mr_ Casey's
intelligence e;cperience;?:which.date-s back WI
World War If Might
be outdated. :7
"The initial
ton is going to be a ?
alt-antI see .one,-'t
said one formerintel-,
lig,ence officer.
As .CIA
director r4-
Mr. Casey ?would
herit an agency that
some of...Ronald Rea-:'
?-..;
gaa's advisers thilik.r.
needs wholesale -irn-
provements and:,
sweeping reorganiza- ?
tion. They reportedly' -- -
recommended that the new administration
place greater emphasis on covert action and
cbunterintelligence_ ';
? Mr. Casey said yesterday that the recom-
mendations are merely a:collection of "in-
formation and ideas- gathered by the
trojisi-
tion team. He.said-hehadn'. t read the Lzansi-
tbn report yet and' would set policy /ater.
But NIr. Casey has said .th.e. US-heeds
-thF... world's "best" intelligence, and he ap-
parently shares the view that the CIA's
operations need to he strengthened. One in-
dication of the emphasis the new adrr,inis-
trate-n..1.3,61 place on intelligence may be the
announcement yesterday that Mr. Casey, as
. director of central intelligence, would be:a.
rneinber of the President's Cabinet_ ?
.Stansfield Turner, the current director of
.national inte.u.gence,.. isn't a Cabinet mem-.
Mr. Casey, who managed Mr.. Reagan's
electon,, campaign, served during World
War II in the U.S.. Office of Strategic Ser-.
vices_ a highly regarded intelligence opera-
tion that was a forerunner cf the CIA. He
eventually rose to become chief of intelli-
gence for the European Theater.
,
But for most of his adult life, Mr. Casey
has been a highly successful tax lawyer. He
made a fortune publishing "desk bco'res"far
lawyers needing to know about taxes and es-
tate planning.
President Nixon appointed him chairman
.of the Securities and Exchange Commission
in 1971. Liberal Democrats protested. saying!
Mr. Casey was too close to Wail Street. But '
many of the critics were pleasantly sur-
prised when he turned out to be an active.,
relatively tough regulator?; -
Mr. Casey later became Under Secretary
'of State for Economic Affairs, thea .chair-
man of the U.S. Export-Import Bank.
He managed Mr. Roagan's presidential
campaign from last February through the
election-although much of the authority for
irunning the campaign was assumed by Ed-
win Meese; a Reagan. confidant who will be.
White House counselor.
..:.Intelligence experts say :. that .the first
problem-Mr. Case'
rale at. the CIA.
'shaken 'during the
.'cOrigrsianal b.-We
-closures-of qu.--tio,
??_ .1 Morale sank fur
when
:the. ? agency's :Co
1971.-1q.s a res.:31;1
sfonals.' disliked th
ardx:Nlr.f. Tuner
agrees
tha.t arythii
rnene&-tys one for
shorld tackle is low
ic ag-?,co7,- was save
,nic1-1.7es 1.)3r a per;_c,.
tigaho -.1r:d-press.
ctivi
:.-Trier officer,-
!mi.:lazed about S;),)--:.
'ert- art Or prtrgmnrmr
;any intelligence pro
, d stral
thinc most. ew-ryht
be in imprc
ner_in ellince offic
iurrig,--stirOe" obs-"i
say', if-.the'new atirr can get C(
grass-. to- pass- two-b designed to. pron
-OLA.aferits: One. wo- "otita.w. the wl7.,.les:
disclosure-of the ,ria les -of CIA underco,,
operators._ La recent :-,-..zonths; Some pubE:
Loos have '..prii;t:?'.1. cf.):
LAS has thrctrg;-: thei
telligenCe coramunit: members
that.thscic,,,sure of acots' identities ope
them to-attack from : Ifrierdly agents: -
,-_The second bill .w e (clude some C
inaterials-from- disc isurp under the Fri
Com of information Act_ Inteili,gence--of
cials-coatend that sti, ha bill is necessaiy
assure agents and .so ?rcrs that their nam
...--...Mr?1,t-asey- isn't Kpect.d1. to encount
-any serious proble.m, in CongreSsional. co
.hrmaton_hearings. I ut he may face-son
-tcldish iprestions ov re.7ent .disclosur
that while-he was ch 'it-man-of the. SEC:1
-_lawyer 'or- fugitive finarci.
R.ibertNesco, Mr_ VP co WPS. tinder SEC i
-yes tigatiort at the:
reprt-;enti7e7sbnntight-t
. the-inveSt gation ; dun rig thmeetingwh
lt,fr:.-.e2.sey: But Rich Ird Re.aga
foreign .;policr. ad viser' who.. arrariged...12
-...2.has said:that-he didn't:I-mow- tt
.lawyer..7.Would.-discuss the- Vesco invesdgz
ondCaseyssid-yesteday that h
the:?..case-: against Vesco,..wh
eventually_was indicted five separate time
courts- lot securities violations_ MI
Casey 'Said:he:didn't Mink there was an
questoriabciut ptirsuit of_th
case against mi.xesco
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STATI NTL
Approved For Release 2001/03/06 : CIA-RDP91-00901R0005
ST. LOUIS POST-DISPATCH
12 ThCF.MBE7H 1980
...
The Reagan Team
President-elect Reagan has announced
the names of eight of his 15 Cabinet-level
appointees and, by and large, he has made
impressive selections. With only a few
exceptions they are men with whom he has
had: long personal associations or close
political relationships, so Mr. Reagan is
likely to be spared the sort of surprises or
problems of loyalty that his predecessor
faced with Michael Blumenthal and Joseph t.
Califanoi-He will have a deeply conservative
Cabinet;:but. that, after all, was the sort of
team he wai'.;elected to assemble. He will
also have -aCabinet, if his ? other choices
resemble these, of highly successful business
and professional_ 'men,- which is to say?.':-
persons who are more 'pragmatic in outlook- -
than ideological.; :" ?
The " Senate traditionally -,? and with ?
justification has given new presidents the
cabinet officers, they have nOminated, and
there is no reason that Mr. Reagan should
not 'be accorded( the same courtesy. But as
the,`.7. Bert. Larice--affair so vividly
demonstrated, there is a difference between
being accommodating- and in rushing the
confirmation ": process -through in so
perfunctory a fashion that great chunks of
Idamaging information about a nominee '?
I-material - highly. relevant to the job he is
'about to assume are blithely ignored or, ?
indeed, never even looked for. So while we
say that the Reagan appointees, in general,-.,
appear .to". be of high caliber,a, more
definitiVe judnent on their fitness for high
public , office Must - necessarily:: :await a
responsible examination by the Senate.
Four of Mr.::-.Reagan's appointees havet"
federal government experience. His Defense..
Secretnry-designate, Caspar W. Weinberger,
secretary, of Health 'Education and
Welfare and budget director in the Nixon
Admnistration, is known as an intelligent,
"dollai-conscionS administrator_ The
- Pentagon no doubt will prosper during the
Reagan years, but Mr. Weinberger should be -
a tough-minded force for efficiency. Rep.
? David Stockman, the new budget chief, has
Approv
responsible advocate for ? his departn cot.
It is--disappointing that for direct( r of
central intelligence MI% Reagan chosf: his
campaign manager, William Casey, t= tax
Sawyer who was chairman of the Sect', ities
. and E-xchange Commission.: in the Ix on
years. His role then in secret calm aIgn
contriutions from the financier R( hart
Vesco has never been satisfactiny
rexplained; morever, his backgroun?(
World War IL intelligence suggests thai
under his leadership the CIA will agai
encouraged to engage in covert activitie:- and
; the black arts.
For attorney, general, Mr:, Re; gan
selected his own lawyer and one of his o; lest
Iriends, William French Smith, a respe
:member of West Coast legal- circles. He has
- been reticent about discussing his view on
civil rights and basing, but as a Universi y cf
California regent his support of the soh ors
refusal to admit Allan Bakke suggests hat
he is not insensitive torminority rights. [he
head of :the Reagan economic team ?
Treasury Secretary-designate Do_r aid
Regan: the innovative chairman of Me riIi-
Lynch, may well be the most impressiv of
the nominees. His will be the - job of
quarterbacking the Reagan tax cuts thrt - gh
Congress -- and his will be the responsib ity
of recommending whether. the Chry
'bailout should continue or whether the at ing
'automaker should be allowed to fail.
' For Commerce, Mr. Reagan has tap -ed
Malcolm Baldrige, chairman of Scovillel
one, of George Bush's strongest backer S nd
a man of refreshing _candor. One of his chief
priorities, as you might expect, is nutt ng
back on government regulations. The r eve
Transportation chief, Andrew 1.. Lewis a
management ?onsultant, has extens ve
experience with railroad bankruptcies int
his views on auto or tiansit problemSare lot
? widely known. But his philosophy ?ill
-
become ? More appa:rent_ under ..,2.Sen- itei
questioning
Solid is the word we would apply to Mr.
Reagan's choices. ".There - is not mich
made himself_ a scholar in the arcana of flamboyance there; thl impression we gel is
-federal spending and he is a disciple of the of a competent team in,the making. The N
voguish supply-side economics, .which Right Is upset that the president-elect I.as
informs the Reagan tax-cut propOsals. neglected '. high ideology: Feminists a id
-.Sen. "Richard Schweiker, formerly theblacks point to the absence of women or
most liberal Republican in th Senate has minorities among his selections. With seven
undergone a sea change inphildiophy, which , more spots . to fill, Mr. Reagan may- veti
e
0OOF -e- -
epaTrmen o man ffrardr r 6 Services. . action critics. In any case,.the country wot:id
::1.115 activist record on bealthissues suggests," not be ill served if the next appointments ztret
Approved For Release 2001/03/06 : CIA-RDP91-00901R
ARTICLE .ada
o

Says Cabinet
vernment
ora.
BY Lee Lesesze:
weeerertee Post Starr Writer
Ronald Reagan named his -first
-eight-Cabineteselections yesterday, sin-
-chiding heads of the Treasury,_ De--
fame and Justice departments, and
said that the men be-picked increese
his confidence "that Cabinet_ govern
meritcan and.will work" -
The president-elect chose notto apC-
pear with the men who will help: him
govern, but the eight paraded sing,See:
file onto a stage in a Mayflower Hotelf
ballroom to have their names celled
by spokesman Jim Brady, be photo-
gaphed and answer reporters' ques-
Reagan did not name anyone to the
senior Cabinet post, secretary of state.
He reportedly wants Alexander M.
Haig Jr. for the poet, but the nomina-
tion is being held up by fears that
Haig's role in the Nixon White House,
might provoke controversial Senate
confirmation hearings damaging to the
administration in its first weeks -in
Sen. Howard H. Baker Jr (Tenn.):
who- will be the majority leader in the
Republican-controlled Congress:: that
convenes in January, pve Haig's-can-
didacy-an anapiarent boost yesterday:
Baker said "Haig did nothing improp-
er" in the Nitoneyears and could:be
co
nfirmecL?Baker added that be be-
lieves Reagan-has decided to nominate
. ,Ventalin'a' -,..aseasz-e7:nsesezrss
The eight 'nominees armodacedhyes-
teeday: anaseseeli nes:,
? Donald T.'"Regan, chairman of the
brokerage ho&Merrifl Lynch: and
Co. Ince to be treesury secretary:-
_ ? a
? Caspar- Wa? :Weinberger,-firm- er
-Secretary - of ' health, education-.and
welfare- andsdirector of the Office of
ManagementeandeBudget, to be de-
fense secretary. _1
? Williarri Frez:ch , Reagan's:
personal lawyer 2nd financial adviser 1
s a-1
THE 41ASHINGION POST
12 December 1980
businessman who is chairman of
Scovill Inc, to be secretary of corn-
merce.
? Sen. Richard S. Schweiker (R-
Pa.), who had not sought reelection, to
be secretary of health and human ser-
vices.
? Andrew (Drew) L Lewis Jr., dep-
uty chairman of the?Republican Na-
tional Committee, to be secretary of
transportation.
e Rep. David A. Stockman (R--
Mich.), a Reagan economics adviser
during the campaign, to be director of,
the Office of Management and Bud-
STATINTL
? William J. Casey, Reagan's 1980
campaign chairman, to e director of
the Central fntelligence Agency.
Together they are a mainstream
Republican group, a Cabinet nucleus
that will not alarm liberal GOP mem-
bers although it may somewhat disape
point extreme conservatives who hope:
that a Reagan presidency will be
strikingly different from previous Re-
publican administrations.
As the eight white males in dark
business suits appeared on the hall-
reom stage, they looked a little like a
singing group without its choirmaster,
but Reagan decided that his presence
would detract from his nominees' first
moment in the spotlight, spokesman
, Brady said. -
"He feels this is their day. It's their
show," Brady said.
The nominees did not seem to en-
joy the show much. Weinberger was
the first to make clear that he
thought it inappropriate to give an-
swers of substance to any questions
before answering the questions of the
Senate committees that will vote on-
confirming the Cabinet members, but,
all of the nominees spent much of the
question-and-answer session orally
ducking.
Smith answered several questions
? including ones concerning ? civil
rights and Abscam ? by saying thatal:
he needed to do a lot of studying. "It's
going to take a lot of learning before I !
can come to any conclusion' said the
man who has been one of Reagan's.
closest political and financial advisers
Smith was confident, however, that
Talk) i a sanior;pertner with the-Lo
his personal relationship With Reagan
Angeles law firm of Gibscin,; Dunn &I would not lead to any abuses. "The
crt4clikp rforReTe4peri200
?,,Malco :PaIdaagee,a Conneettart .
_ ess ?? . . . -
Reagan's first eigh nominee5 are a
politically cohesive g oup. All worked'
for ,the Reagan cameaipe in one way.
or another.
Their average age .s ;i6 despite the-
inclu.sion of the 34-year-o1d Stockman.
Casey, 67, is the oldest; of the others,
: Only Stockman and i ewis, 49, are un-
der 50. ? ?
All had been rep-ted as prospec-
tive. Cabinet choices in speculative
press reports that bed been surfacing
one name or another since shortly af-
ter Reagan's Nov. 4 election victory.
Baker has said he you'd like confir-
mation hearings to -..)e held between
Jan. 5 and -Jan 19 so that the full
Senate can be prepared to vote on the I
nominees -as soon ; s possible after
-Reagan's Jan. 20 inauguranon. ?
Most of the questions put to the
?Cabinet nominees yesterday coacernecl.
economic policy. .
. Stockman was asked about cuts in
the 1981 budget.. He replied that the
Reagan planners are "at a very pre-
liminary state," but that there is "no
indication we would back off' the 2
percent cut Reagan pledged in his
campaign.
"Let's face it, hula
problem facing the
Regan said. He
Reagan team would
anti-inflation packag,
p,et cuts and tax cuts
question whether, a-
-
ion is the No. 1,
nation today,"
.dded that the
lave n) devise an
including bud.
Regan ducked a ;
treasury secre-
tary, he would be the administration's;
chief economic spokesman. ? 1
Schweiker was asked about control-:
ling health care costs "As a comfirmed1
two-mile-a-day jogge ," he replied, he
will emphasize exerc ie and nutrition
as ways to prevent dasease. .
, He added that. my . budget cuts-1
wOUld be "in the a_ ea of fraud and4,
abuse." ? ? ? ss- ." I
"I'm sure we're (ruing to serve thel
needy people of this? country," he said.1
One area where :smith was willing ;
? to indicate his thinking was on con-
flict-of-interest-laws end regulations. "I i
think there is much that is required !
that is unnecessary," he said of the re-;
quirernents that Rea ;an advihsers have:1
said have delayed and c-omplicatedi
,their efforts to ,form .1 Cabinet
"
Ail r 00.0500010002-3
there you will not be disappointed,"-
he. told: a questionernesaa,nas eassa',.:-esY4
Approved For Release 2001/03/06
CIA OPERATIONS CENTER
NEWS SERVICE
DISTRIBUTION II
11 Dec 80
Date.
4
Item No
STATINTIRef. No.
1 1
al .1
1 >1
1C-flea gan-Casey Ni
T'T\ CIIITOTON , Dec 11, Pueuter Pillia Casey, named today hy
-President-elect Pon,ald 1-:.earan to be CIA director, will be
re-entering the field -where he first made his mark.
Pr Casey, 67, a tax lawyer who managed the Seaman camnai on in
its final eicht months, has held various key oovernment posts in
the past, including chairman of the Securities and Exchange
Co.,a7lission (CPC).
Put his first major mu)- lie job an with the Cf floe of r2-trategic
Services , Norld Pr II forerunner of the CIA.
:.z? Casey was a 32 -yser-old 1.7e%,7 York attorney who had already
made a fortune writing technical manuals for lawyers when he was
chosen in 1944 as CCC Intelligence chief in London.
his principal assignment was one of the most crucial in the war
-- to oversee the infiltration of more than 20C) Allied arrents
into T'azi Germany 17ef ere t1-.e final push.
7r_. Casey once exulted that he was proud that all but al.-out a
dozen aqents returnee, safely at the end of the war.
00 In Casey, ' es]Pionace historian Joseph Persi co wrote after
the war, 0 orEC had a r1,7..n with an analytical mind, tenacious
will, and a capacity to generate high morale amono s staff . '
POLL 1423 PC-7'.eagan-Ca soy 2 Washington
[ianjnc morale will 1._)e one of !'r Casey' s chief initial tasks at
the CIA. The aeencv ' s confidence has been .hatterec3 by
er.-,1Darrassine revelations about assassination plots a aainst
foreign leaders and doubts about its ability to keen. secrets.
Pilliam Joseph Casey, who was born in New York City on Parch
13, 1913, is an affable man whose reputation of (-Jetting along
with people is expected to be an asset at the CIA
Aft the war, :1r Casey returned to his lawnractice in New
Yorl, . In 1971, he was named by President Nixon as chairman of
the SEC. No held the position until late 1972, when he became
undersecretary of state for econo:ric affairs.
In 197,1, he became president and chairman of the TExport- Import
Nan):, an in denendent c,overnment auencv which makes loans to
promote the sale of U.3' . goods ahroad.
Ce also has served as an adviser on arms control before
ra-11roir. to hs 3aw 7:r act i co . Last. February, he returned once
amain into the political limelight as Pr rzea gen' s campaign
mana c:,rer after lonc.1-time P.eaean aide John Sears was fired because
of disharmony ane c c't problems in the camnai on organization.
LT:LhP 1C3C, 0"2.
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A C. TICLE ATP.RLD
Approvecirt_- Release 2001/00/041ApkINPR5h00901R000500010_
11 December 1980 STATINTL
4
ta me nnouncements Start
----1`41-1:- ..,...--.1:-_,-,:-.., .
-- . ..,
;h.". By Lee Lescazei";,',:i--;'':,,,,' Tc., , pears to be Reagan's choice for secre-
.Washington Post Slat t Writar ; - :. tary.of state, although some advisers _
Ronald Reagarr said yesterday that - had counseled that Haig,. because of
he willannounce ?hiee fus(:Cabinet his role in the Nixon White House,
nominees today, and:there were inch- ;would be likely to stir controversy in
cationsAhat -.ills, initial . group will in-p- Senate .:,.confirmation hearings -- too.
dude roUghly,,,j. hAlof;4h p( -.. high a price for the fledgling adminis-!-
el posts to
b6!.... ' ,tration to pay.;---_,"! ' --..-::::!-::.r:;,-;,;;',1-\7-: - --'?
t...,-",;zi..,-;4.':?':;.,;;',,,,-: A document in which former Wa.,
ThetPresident,ele
his second familiarizaiii;;tr"5;totirg,:f.:.(7 ''''''--teriate prosecutor Leon Jaworski Javiorski hails
Washil.:*thn-;''' cliCli..:Ii6" indicate hof '.-4-:: i.gHthateg-- ana5danthe'u-nsamu:vtgh:eraforc7 eo!'f inWapteerr-:':
many011iii Cabinet-dioicefieor'Alicki=". ,uacung,. Richard. M. Nixon to resign
ones; will be annciunced ?today.:-..-_?...-r...-4K-:- '
? ---',.
has been circulating_ in Washington,
: ReagaiThrel;onite'dlY.'17:'..,:d-----''''.i'Ll-i, 'l-?;;-::__-__,65:'::'-however. In an unpublished interview_
name-, W'Perional:.attorlieY1Y"'"i'::., with the editor of Armed Forces Jour-
Frencik:Sinith;':attOrney -generg,:Tand_ 'hal that MS made -public by United
Caspa21.- -?Weiriberger,'InrinerOhief.;',...
of the Oce f , Press, International;,,Jaworski - added
' 4_ - Manegeinenaiiiiu :? 4.1.,?,_ ...j.aig might deserve to 1..0.4, presi?;
. -.1.,..1 ,------
Budget; ,secretary of defensfsS:v-,--- .:- dent someday., , , ,-.,-,
,....,- , ..
GerriAleiander M. - 4:.still ap-:. ',-;.,.. ;Other choices,- reportedly.. decided
are: Sen. ,Richard Schweiker (R-Pa.),
Reagan's 1976 vice presidential choice,.
for health, and human" services;
Wil-
11am Casey, Reagan's 1980 campaign
chairman, to head the Central
InteW-
gence Agency; Drew Lewis, a Reagan
supporter on the Republican National
Committe.e, for /transportation, Rep.:
St&Icrrian -:(R-Ivlich.) as director.
-2 of the Office of' Management and
.:!Budget, and'Malcolm Balridge, who
the Canapaign, of Yice. President-
elect George Bush in Connecticut,- as
?commerce secretary.=
Approved For Release 2001/03/06 : CIA-RDP91-00901R000500010002-3
?.? ??
-? ?.???r? 71%4,4-, ?
-Schweikritci:
??:
?
ith 101..;
:
Itlyer17,'? '
?
-and...RobertzieHornig. .
4 Vi341144424`,StarStag
:PreSidtar"erieti
? W het haswrestled forinore than five
e:weeli=e-itlithetniedietiXer the-Cabi-
..neteinewhicte he hasvowed to- vest
? unprecedented:anfliiiretea, today W.
snveil eight of.:tlipoweis.to4,e.y
-.'eeScheduled ecet*rianeed? today:e sc.=
-cOrelineitctyeell-iiitificaeck eaurdei;
?Donald-7;;11"eg-4,rilf6reas..Treiesiirje
---=secretaryeteRegan'eSTriirbrninent
. figure-in NeWiYorli financial circles
_-andechairmatiofe-Mertill;':Lynch;
Pier-te,-. Fennee:ancltSznittOnce the
natiori:s.':raFgeSte,i,jeteestinerit
brokerage '-firtne4..ee4teetee're'eeeeeie!ee't,
* CespareeeWeinber.ger63e?rai
de-
fense secretaryeNfelt'riarned,"Cap the
Knifeeforehiselnidget7cuteing zeal;
eWeinberger,lerr,ACC-P,Oeslelen,tpf
the' Bechtel-. Grcee In cc*, es. a former
HEW-secretary.'and:bildger director
e?Who :served as Reega,titele.nance. die.
-. rector whilehewaslievernorof Calle
-;:tenchee:Siiiithee 61; .a
, Mori* gerterat;:eeriNie.Reagan!S.
, personal: laiifeteelarktIOng,:time:,
friend aridenS:emaiiiret ai-Teter in the
prestigionslea*geleilaivairra of
GibtioteeDuirii and Criitcleere'e
? Sem:Richard' ?eelew,eiltereeSetea.0
.seeritiriarefieelthatti:sei;:
ei,iteeich'weeilcisriii4,1Republi---
'. 'Can, bei.7-thee'; TerabeeNIEWicoramitteee
Is; retitingeafterr;211).1e4r3._:61 -rePree:
esentletgePerin#19pnialiteCongreseee'e
lIe ,was Reicee0eyktp-Feeiclentia1
choiceifieldselfei4sttehrgsfifle1976 bid? for- the Renubli?othnatjo?.,'
.0 RereeDaijietStOolieff?aele;
. budget clipeCtor;.:StaeTtrna:ii- is a-tvid-;,.
term RepUbliCaneeitigtessman from
:e Michigan ewhai?begane.hiSr.,
.-Career, a,an,aideetolWerolin
- dersonee-R-41:eandNcileete:aceaini,
framcoUeagueso..4g-of the
itgee.and
"'other c
:*.Dre. 4,9;'":
- as-
tap?tarfon". 'efiseelt
Philadelphiaeraanaienfeiit teand'Tfie
nancial-con.sultantle;aforerier GOP
guberilatorialeandlettite!vand
-seasoned
, aldeFerel'a siellplIOMORe
'iand-Reagai1"g:monrieVegetr thief*
'marte'of-the;!RepriblittilfeNationat
rrt thi cr? t4;4412:- ..rriitri -?-?
? ? .?
1-Ft109QMPIVAI)
Malcolm Baldrigee ? 58,, ase com-
merce secretary. Baldrige is chair-i
m a nof Scovi 11 Inc. t amanufaCturieig
. firm headqeareel."' in .Wa terbury?.
Ccinne and headed, Vice President-
:fleet -George Bush's-presidential
campaign in the state.
? * WilliamJ. Casey, 67., as CIA dires-,
tot. Casey, a former intelligence:.
agent .ance well known New York
, tax lawyer was director of-Reagan's
_preside-MI.1Fam at n and a former
chairmaneof the ecerities and Ex-
., change Commiesion.: ?
, Not on the listto nanagd to'claei
is Gen Alexander Haig Jr.', still the,
" leading candidate for secretary of
state. Although.4 the final decision
has. yet , to be Made, ;transition.
sources said Haig is likely to be nom-
inated in: he next few days.e
Reagan who arrived in Washing
etein.'lesterdaYefor a .four-day visit
7 end promised some weird On Cabinet
eselecnonseoday; was asked. whether
?
e.H?il1was -in the runningefor.
= the State :Department. .Reieganere
OKI: "Sure'
' 'kserlior transitiCirr of ficial. called
Sen. Jesse Helms, R-NC., on Saturday
, and-asked him to privately poll his
colleagues on the acceptability of
Haigeea,formet NATO corrimander,
as Reagan's senior foreign policy
subordinate. .
- "I am confident, based on the. ap-,
peal of Haig that Lhave found among
e senators,' ehat 'Mre Reagan can-feel
very confident about his nominee,"
-said Helms, an ardent Haig supportel
-er, in an intertfew yesterday: "That'
doesn't. mean that questions- won't1
he raised etthe.(eonfirmation) hear-i
ings, but the hearings Won't be
lengthy.,;:-eeee,, -
,.eeeseeeeee?e
Helm predicted that Haig, if nom-
inated, would be approved "over-
whelmingly if not unanimously" bY
the Senate Foreign Relations Com-
mittee and "promptly" confirmed by?.
the Senate et. r ,
After some senators ekpresSed^
'concern.; over., the weekend about
:whether Watergate tapes might con-
-tain'something damaging to Haig,
wrhoeveas chief of staff during the
final days of Richard Nixon's White
House, Helms said he called the for-
? mer president. Asked whether there
-might bee anything incriminating
about Haig on the tapes,_Nixon? re-
plied, according to Helms: "AbsolUte-
ly not. I know More about those
tapes than anyone else." ,
Nixon: is arncing those who tee/
,lobbied,haed .foc- Haig. with the
? president-elect, - _
eeetTperte'R.eagan's:arrivarlesterday
for his getond visit since the elec-
orhewas hounded_ by reporters
ease14004405/98 4e1F4A4RD99r1
thaife sometIOng by tonamorroev," hes,
_
The president ect was somewhat
defensive about suggestions that it
has taken him unusually long to
put together.the top echelon of his.
administration.. "You alt keep'
pressing me. about these an-
nouncements," he said. "I don't
know. of anyone who's ever an-
nounced this early.".. -
hi 1976, Jimmy-Carter unveiled
his first Cabinet nominations on
Dec. 3 and his last on Dec. 24. In
1960, John Kennedy announced his
first selections on. Dec. 1 and com-
pleted the'proterss.' on -Dec. 16. In`
1968, Richard Nixon-nimed his en-
tire, Cabinet on Dec:,
_ Sources say- Reagan has at least
tentatively settled on two other Cabi-
net. selections: Ray Donovan, a New
Jersey contractor anctstate director
of Reagan's. presidential campaign,
as labor secretary; and Jewel Lafon-
tant, a Chicago, lawyer and former
deputy SoliCitor general during the
Nixon administration, as secretary
of housing and urban development.
?_Reagan flew to Washington from
New York yesterday morning. He
met with Republican National Com-
raiffee chairman Bill Brock and had
lunch with-some of his top-aides,
including 'Vice President-elect
George Bush, Edwin Meese III, James
A. Baker III, Michael Deaver, Drew
Lewis and Dan Terra, his campaign!
finance director. -
?Reagan then met with black and
Hispanic supporters. The black lead-I
ers told him that jobs and the econ-I
orny were. their primary concern,1
and he:told-the Hispanics that his
Latin American policy would be set
country by country because of his
concern about nations. such as Cuba
that are under Communist or Marx-
ist domination.
- Today Reagan is scheduled to gete
-a national security briefing add to
Meet with transition officials and
national .black leaders. Later he is
to meet at Blair House, where he
is -staying, with Democratic Sens.
Henry M. -Jackson of Washington.
and Jelan Stennis- of Mississippi and
Republican Sens. Bob Dole of Kansas
and Jesse Helms of North Carolina. =
e- Tonight Reagan attends an Amer-
ican Enterprise Institute dinner in j
honor of William Baroody Sr. and
then has dinner at the home of Kath-
erine Graham,- chairman of the
Washington Post Co. - ?
Washington Star Political Writer.
James R. Dickenson contributed to
this report. - ? ?
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'Si 1 i'tia
CO ?AG?,74
?ye
!Investo'r'Official
Believed in Line
For Treasury Job
Donald Reiaii Is Eih ected
to Be Named Today
- - -
?
By STEVEN R. 'WEISMAN
special b;Theigew York Times
-7..WASHINGTONe.Dec. 10? President:
elect Ronald Reagan plans to announcetomorrow his selection of Donald
Regan, chairman .of Merrill Lynch. &?
Company, the investment concern, as his
nominee for Secretary of theY Treasury,,
according to senior transition officials.'
`The selection of Mr. Regan, a leading.
figure in the Ntrall Street. financial, com-
munity, is expected to .be announced
along with abouthalt a dozen other Cabi-
net choices, as well as the directorships of
the Central. Intelligence Agency and the
Office of Management an Budget. ?
Among the other selections expected to
be announced tomorrow were William J.
Casey, former chairman of the Securities
rnth
and exchange Coission, as Director
bt eentrai intatirgence; \atilt-ern French.
smith, Mr. Reagaiirs personal attorney,.
in Los Angeles, as Attorney General;
Caspar W. Weinberger, a longtime Rea-
gan aide and former Cabinet rnernber, as
Secretary of Defense, and Representa-
tive David A. Stockman, a Michigan Re-
publican, as director of the Office of Man-
agement and Budget.,e
Others RePortedly Chosen
t Sources close to the Reagan transition
said that otherannouncements would in-
t
? clude Senator Ricimrd. S. Schweiker, a
Pennsylvania -Republican, as Secretary
of. Health and Human: Services; Drew
Lewis, a Pennsylvania businessman and
Republican Party official, aS Secretary
of Transportation-nand Malcolm Baldrige
" 3r. chairman of the Scovill 'Manufactur-
ing Company. of -Waterbury, Conn., as
Secretary of Commerce. ?
Knowledgeable Republicans-said that.
Mr. Reagan bad stilt liot settled com-
pletely on a choice:or Secretary, of State,
but that Gen- Alexander B. Haig, retired,
of the Array, former Commander of the
porth AtlanIdoljreaty .1.,Organizatiora
Approved For Release
NEW YORK TIMES
11 DECEMBER 1980
'forces in Europe, was the leading candi-
date.
This morning, before traveling from
:New York City to Washington, Mr. Rea-
gan was asked by reporters whether Gen-
eral Haig was being considered. "Sure,"
he replied. ? ?
. Support :for the general, which had
seemed to diminish somewhat last week,
has been building in recent days on Capi-
? tol Hill, especially- since Democrats in
- Congress suggested that they would use
Ii-selection to undertake a scrutiny of
'hiSrole inthe Watergate scandals and the
pardon of fermer President Richard M.
Off-eon.. ? . ?? ? * ? *
Last weekend Robert C. Byrd, Demo-
crat of West Virginia, the Senate ma-
ority leader, said that General Haig, a
former chief of staff to President Nixon,
might be rejected by the Senate if his role
in the Watergate was not cleared up suffi- ?
ciently by a review of the White House
tapes that were made at the time. Mr.
.: Byrd's remark was reported today to
have built up considerable anger. and re-
.sentment among General Haig's support-
_
r. Senator Jesse A. F.elms, Republican of
eyorth Carolina, said, "I called the No. I.
r expert on the tapes ? his name is Nixon
? and said, 'Tell me if there's anything
Ott the tapes that would embarrass me or
Hag.' And he said, 'Absolutely riot.'"
Mr. Reagan, making his second visit to
the nation's capital since his election, had
? low-key day of rneetings that contrasted
with his exuberant display of courtesy
calls and visits to Capitol Hill three weeks
age ? . ?
, Mr. Reagan, in a private visit with Bill
Brock, chairman of the Republican Na-
ticlnal Committee, has discussed the pos- ?
? sibility of choosing him for one of several
Cabinet positions, including Deputy Sec- ?
.retary of State. There have been reports
that Mr. Reagan wanted to bring Mr.
Brock into his administration and then
choose his own appointee to run the party
organization. .
? . .
Names Are Discussed -
Among the other names being (els;
cussed by Republicans today were Ray.
Donovan, an executive at a New Jersey
construction company, as Secretary of
Labor, and Thomas Sowell, a black, who
is an economist at the University of Cali-
fornia at Los Angeles, as Secretary of.
?Labor. ? '
The Reagan transition teeth has re-
portedly had difficulty* settling on a
choice for Aiculture Secretary. Knowl-
edgeable offieials said today that Senatcr
Paul Laxalt, Republican of' Nevada, a
liey Reagan adviser, had been toiu oy Mr.
Helms and other Republicans it7 Cua-
gress that they wanted the post to go to
Richard Lyng, a former Commissioner of
-Agriculture in California when Mr. Rea-
gan was Governor. ?. : .
, The reported choice of:Mr.Regan as.
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STATI NTL
Treasury Secretary comes after a series
of false starts for that job. At first Wil-
liam E. Simon, a former Treasury Secree
tary, was said to be certain to gee his old
job, but Mr. Simon withdrew from consi
eration after some Republicans in Con-.41
gress,criticized him as uncooperative. -
Then Walter B. Wriston, chairman of
Citicorp, was thought to be the leading
choice, but transition sources said that he
had been dropped because of conflict-of-
interest problems arising from Citicorp's
involvement in various ,Government ac-
tivities. ?'
Mr: .Regan was said ta-be the choice of
Mr. Casey, who got to know him ,while
Mr. Cagey was chairman of the securities
commission and Mr. Regan worked in
196e-70 to help save several faltering Wall
Street brokerage firms. ?-
- -4-seeseee
STATI NTL
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AR T I C LE APP.E:..I't.ED THE WALL STREET JOURNAL
ON FAG
11 December 1980
Initkittabinet Ciwices Expec,,et d Today;
Merrill-Lynch's Regan Seen at Treasury
.;_;? ? ),4::2;
By TrMaerElY D ScHELLHARDT
Stag Reporter of ;rim WALL. sTREF iounNAL
WASHINGTON--Ronald Reagan is exi
pected to begin announcing his Cabinet toi
day and tomorrow, with Republican sou rce
saying Merrill Lynch & Co. chairman. Don-1
aldRgan 111.1R line for Treasury Secretary.
-
Casey, a 67-yearlo1d:-New tax
:lalwyer. has 1ang2coveted. the CL.k. Past; His;
Experience- In the intelligence area .came
,during,'World 11 when the4(ecaine intel-
JigencE chief In Europe for. the Office.Of'Spe
Adal Services-, a:forerunner :the, CLI.:Dur-
% ingi the Ntxon and- Ford adrn inistrations;: he
Was SEC chiet'Under Secretariat State for
,Eoonornic-Aff airs: and. chairman; atthe-....1.1,S.;_
Export Import ?Bank:
;..He was director of the Reagan, presiden:-
lialanpaign and is chairinan, of the Presi-
;:clent-elect's transition teart.:Atiunsuccessfull
,Ccingress;On4i candidate in:1966; he has been
inVolvedi in Republica.ri / presidential
paigns since, the 1940s Reagan; confid ant,'
Mr.. Casey has been vievied as a :.Candidate,
for several. top-,Cabinet pasta in tile new ad-z;
min' istration.
Lac-11:131'TM
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STATINTL
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ARTICLE AP37,4RY0
DA PAGZ WASHINGTON STAR (GREEN LINE)
10 DECEM2ER 1980
1 ,
jpecial to PI* Wash t n g to n Star
rest Friday Bill Casey ? re-
portedly the next CIA director?
breezed into the Watergate Hotel
to see Al Haig, taking with him? '
12. men described by an on--
, looker as Secret Servicemen. But
? not even the present CIA direc-'
tor is accompanied around town-
ba guard of 12. So maybe all'
those guys were Casey assistants
or FBI specialists trying to fine-
,tooth-comb Haig's background
for possible deterrents to?confir-
mation by the Senate as secre- ?
tary-of state,-y , 4,,salz?-ti? _
':-.. The- American Enterprise ?
Institute dinner tomorrow night-
arthe Washington Hilton has a
power-stacked list. Besides for-
mer-President-Ford, five U.S.
senators, four members of the
Reagan advisory or transition
team and 19 foreign ambassa-
dors, 47 congressmen and 16
.newly elected members of the
House have accepted. And the !
1Reagans are scheduled to drop
by during cocktails..- -,-- - , - ? ?
13ETTY BEAU 1
-31010212MO'Cl
racLIIPTBD,
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Approved For
AR. IC I CLE
ON PAG1
Release 2001/03/06 : CIA-RDP91-00901R00050001
THE WASHINGTON POST
10 December 1980
Ilaig-On,ce Again
.1-(ey-,(antlidate to
Head State Dept.
By Robert G. Kaiser
Wsehlrigton Post Staff Writer ?
Gen: -Alexander M. Haig Jr. is Once
again a leading candidate for the post
of secretary of state in the Reagan ad-
ministration, well-placed sources said
yesterday, suggesting `anew that. the
searth for a Reagan Cabinet is some-
thing of a political roller-coaster ride.
At the end of last week the same
knowledgeable sources were talking as
though Haig's fortunes were fading
fast after Republican leaders 'in the
Senate warned that a messy confirma-
tion ...fight was possible 'if Ronald
Reagan did-norninate the former chief
of staff in .Richard Nixon's White
-??? ? - %;-?tr,
_
One factor that helped revive Haig's
prospects, sources in the transition \
team said yesterday, was the paucity
of alternatives to him. "Look at the I
choices," one transition official said af-
ter predicting that "Haig is going to
get it."
Alternatives mentioned by sources
cI08 . to Reagan last Friday were.
George P. Shultz, Caspar W. Wein-
berger and William J. Casey. Shultz is
hotly opposed by many conservatives, .1
Weinberger is in line to be secretary'
of defense and Casey is set to become
director of the Central Intelligence
Agency. None of the three has exten-:
sive experience in foreign affairs. (
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STATI NTL
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11".T
ON PAGE .13,1? THE WASHINGTON POST STATINTL
8 December 1980
NAL
- By Hen
Such a flap! Furor! Brouhaha! Everything
askew! ? ?
`!No!" shouts William F. Buckley Jr. from
his vexed sprawl in the conference room of
the National Review as the clock ticks to-
ward the magazine's 25th anniversary ban-
, quet the next night.. - /
Friday night, 600 people?most of
whom number themselves among the
"we"?gather under the gilded ceil-
ings of the Plaza ballroom. His swivet
behind him, Buckley has dining com-
panions who include: Henry Kissing-
er, Clare Boothe Luce, probable CIA.
chief William Cas_ey, Senator-elect Al-
fonse D'Amato, Walter Cronkite, law-
yer (and old Joe McCarthy aide) Roy
Cohn, futurist Herman Kahn and col-
umnist George Will, who warvonce the
Review's book-review editor and who
fills in for the missing Reagan and
Goldwater.
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AATICLE APBEARZIO
O "'AGE
Reagan iked
To Reorganize
S. Iiitelligence
By MILLER
..,?
. Special to The Nev. York Times
WASHINGTON; Dec': :7' ? President--
_
elect Ronald Reagan's transition team
,
for the_ Cen tral , Intelligence Agency has
proposed several sweepingchanges in the '
organization and operations of the ,na-
tion's_intelligencel.programs, including
increased emphasis-eon covert,,action
abroad, according to Mr. Reagan's advis-
ers, et, ,;.4"tt'e
The aides said that a prelitnina&re-:
port on the C.I.A. was completed iate last;
week and is to be submitted to Mr. -Reag
Fan's, transition,headigiarters tomorrow.'
The...panel is headed by J., William Mid-,
. .
dendorf, 2d, former eSecretary of .the
...NAVY, who is president cif_Financtat
era! Bankshares; a Washington-baSed
" , . . .
bank holding comPany- ?
In acIdition.to calling far art enhanced
rOle and increased" financing or covert
activities, thee' report , recommends
g:rater attention to counterintelligence
to3cornbat what is viewed as a growing
threat of Soviet espionage and internee.
? ?
tional terrorism.--
4 Central Records System
? This could be accOmplished, the report
is said to suggest, thrtnigh the creation of
a central records system that would be
used by both the C.I.A. and domestic law-,
. enforcement agencies, including the Fed-
eral Bdreau of investigarion. Such a:-
move has been resisted by Government:
officials in the past, on tbee-ound that it
could pose a threarto the civil liberties ot
American citizens. ,
Reagan's aides added,
NEW YORK TIMES
8 DECEMBER 1980
also recommends the establishment of a
competitive systein of intelligence analy-
sie; iiitended to provoke wider debate on
sensitive international issues. Under the
proposal, the Central Intelligence Agency
welfla be forced to defend its conclusions
against those of other intelligence agen-
cies, such as the Pentagon's Defense In-
tellfgence Agency.
-A-gc-orcling to several aides, these steps
could be taken without legislation. But
they added that the proposals, and the
transition effort itself, had? already
proMpted deep anxiety and debate within
the agencies. Moreover, the wide-ranging
debate over the structure of the intelli-
gence .bureaus and the quality of intelli-
genCe,they produce have recently exacer-
bated long-standing tensions on the Sen-
ateIntelligence Committee.
- -
Though Mr: Mittendorf declined to dis'-
cussed:A report, he said in an interview
yeetrday that he favored a more "ag-
gressive" approach to intelligence and
that:the report's recommendations were
ainied at "increasing the productivity" of
the intelligence agencies.
William H. Casey, Mr. Reagan's cam-
paign director, who is a strong prospect
for the post of Director of Central Intelli-
gence, is known to hold similar views.
However, it is not known whether either
Mr'.-Casey or Mr. Reagan will approve
the transition team's recommendations.
The proposals are similar to several
contained in a recent report prepared for
senior Reagan advisers by the Heritage
Foundation, a conservative Washington-
based.: research group. However, the
? propOsals touch on a number of complex
issues that have been debated for years
by intelligence officials. -
Among the Most sensitive of the
proposals is the call fcir the competing
centers of analysis. Many intelligence ex-
perts believe that the idea is good in prin-
ciple but difficult in practice, as a previ-
? .,,,
STATINTL
ous attempt reflects. Four years ago, a I
group of outside specialists was asked by
George I3ush, then Director of Central In-
telliger.ce and now Vice President-elect, ,
to appraise Soviet military potential and
intentions.
. Trouble in the Agencies
The group, known as Team B, con-
cluded that the C.I.A. and other agencies
had underestimated the Soviet buildup
and that- Moscow was bent an achieving
strategic superiority. The effort sparked
an acrimonious debate in intelligence cir-
cles and upset C.I.A. analysts when re-
ports of Team B's conclusions appeared
in the press.
? Reagan aides contend that under its
plan, the competing analyses would be
provided not by outsiders but by such
other intelligence bureaus as the Defense -
: Intelligence Agency. While the Reagan
aides believe that this approach would
improve the overall quality of American
intelligence, C.I.A. officials maintain
that the Pentagon intelligence apparatus
is not capable of functioning as an effec-
tive counterweight. -
Moreover; some intelligence experts
contend that competing centers of analy-
sis, as once existed, would overempha-
size disagreements among intelligence
agencies. The President now receives a
consensus view from the Director of Can-
tral Intelligence in so-called National In-
.teligence Estimates, in which disagree-
ments among intelligence bureaus are
tisuallynoteeonly in footnotes.
? A Longstanding Debate -
The report's recommendation that a'
"central file" be established ta enhance.
coordination of counter-intelligence ac-
tivities is likely to be opposed by civil
liberties groups. The file would contain
data collected on the activities of sus-
pected foreign agents, including their
dealings with Americans. Such groups as -
the American Civil Liberties Union have
maintained that this information could.
violate citizens' privacy rights.
? Finally, there has for years been a
? growing debate over the push for a larger
-Cbliti117/1
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ARTICLE AFI'LARED THE WASHINGTON POST
O PAGE_W-- 6 December 1980
STATI NTL
HaigCha.hee I
For Cabinet
? eo ar
,.....,...??m
eacran Told COnceffit:,..
out \Vatergate Ro16:
,i..I.Nt,
atlas Appointment --
By Robert _61 Helier ' -. ? ~,-,-.!?!
Wastlington ?tit:: Writer
", f.k..1 - . : - , % L ;..:: ? 7."..i..-5 "', r -'-' ' ' '
,,Que*aons about ? former general Al-.
eioirider M. . Haig ,Jr.,'S:'- assistance to
":-Ricliard iNL Nixon, in :thefinal stages
' 'dig-Watergate affairhave Put his ap- -?
- poilatment as secretary of state in jeop-,
,".a.k. fy; authoritative sources Said yester-:
ifily . ieM4.,..'"'" ''''''._..-7-t
Sources clOse tO'liresident-elect Ron-,
ald Reagan said that the president-elect
mid his associates were , concerned by
the warnings they _had received from- ,
Sen. Howard IL Baker Jr. (R-Tenn.), _
.the future Senate majority leader, that ,.
Haig could run into trouble in the Sen-
ate. ,This = has, put, Haig's- nominatior-.
in jeopardy, these sources said, though
many 'around Reagan,. still. :,want him
for the job. :----,-,..,-:itt'1.44:,.*:ii,Mk,-; --e ?.--' ..-?
;Haig 's cause - is also being hurt by
the fact that -Nixonvhimself is. earn- ?
paig- fling avidly for ifaig's,nomination
to be secretary ..,of statlarowledgable-
.-sol'irces
, lf,Reagaddetidee4re.cannot seleCY,
? ,-.7 sources said, 'Ire will turn to
:Gorge P-Shult;,-caspar W. Weinber-,-.,
lierror William J. Casey fill the,Stati:!-
]
Department':', in:b;;;;:;Shultz.7 has ' :told:
LITIOgali? 6.3 490.. pix*--At,41*?40Poi.iit?'
.,-ment, but sour_cmc.I.ose to Reagan hope
:he. /night r*.06104.-44;;;;4:,..;;,i,:,,,ii.li'
Weinlwrier bin:line to .teCorae sec:-4
ryi....,Of defere 'iiiicf CasXdireCt-1
the ?Cen;Og "Iiiiellikeiic'e'Agerky 41
Ftlie Reagan administration,. These p -josti"-:
Pfnight.be rejuggled jE,Hal,g is dropped..
iis.,. secretary of ,state.f1:-`:afg,:-::,
,
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AIITICLE
0 3 PAGTI
NEW YORK TIME'S
5 DECEMBER 1980
STAT I NIL
Problems Arise With 2 Reagan Choices
- by HEDRICK SMITH
special to The New York Times
WASHINGTON, Dec. 4 ? Edwin R.
Meese 3d, director of President-elect
Ronald Reagan's transition team, said
today that Mr. Reagan would be ready to
announce some of his Cabinet selections
late this week or, next week, but well-
placed Republican sources said that com-
plications had arisen with two major
potential appointments: , ?
At a morning news conference, Mr.
Meese warned that the Soviet Union
would be-making "a grave miscalcula-
tion" by thinking that the Presidential
transition would place the United States
in a weakened military position. He also
denied that the Reagan transition team
had problems with conflict of interest be-
cause some of its members worked for
private companies.
Mr. Meese said that the Cabinet selec-
tion process was "on schedule" and that
Mr. Reagan would announce some of his
choices "either at the end of this week or,
it looks now, more probably next week.'.'
Other transition sources said that
roughly a half dozen Cabinet selections
were nearing completion of the normal
clearance and legal procedures.
Problems With Wriston
But these sources said that some prob-
lems had developed in a discussion with
Walter B. Wriston, chairman of Citicorp,
whom Mr. Reagan had wanted as Secre-
tary of the Treasury. Mr. Wriston had
served on Mr. Reagan's economic advi-
sory panel during the campaign but had
privately told some associates that he
was hesitant about entering the Govern-
ment.
Well-placed Republican sources said
that the complications apparently cen-
tered on financial disclosure require-
ments and arrangements for avoiding
conflicts of interest. Citibank, a subsidi-
ary of the holding company that Mr.
Wriston heads and holds stock in, has di-
rect interests in New York City loan guar-
antees and claims against Iranian assets
as well as loans to the Chrysler Corpora-.
tion. The Treasury Department deals
with all those issues.
As of last January Mr. Wriston owned
104,499 shares of Citicorp stock now
worth $2.25 million.
With uncertainty now about Mr. Wrise
ton, well-placed Republican sources said
that the President-elect and his top advis-
ers were reconsidering the Treasury ap-
pointment. Among the new names being
mentioned, they said, are Charls E.
Walker, formery Deputy Treasury Secre-
tary, and Donald T. Regan, chairman of
the board of Merrill Lynch Inc.
Problems With Haig .
Republican sources also reported prob-
lems in the selection of Gen. Alexander
M. Haig Jr., the former NATO com-
mander who is now president of United
Technologies Corporation.- Two days ago,
well-placed Republican sources reported
that Mr. Haig was Mr. Reagan's choice
for Secretary of State, after George P.
Shultz, vice chairman of the Bechtel Cor-
poration and a leading prospect for the
post, told Mr. Reagan he did not wish to
be considered.
John McCarroll, Mr. Haig's executive
assistant, said that as of late this after?
noon, Mr. Haig "has had no approaches
on a Cabinet position from Reagan or his
people."
In the past several days, several news-
paper columns have appeared criticizing
Mr. Haig's role in the Vietnam War, the
Nixon White House and in the wiretap-
ping cases against former Nixon Adrnin-
istration officials and reporters. Well-
placed Republican sources reported that
some influential Republicans had pri-
vately urged Mr. Reagan through inter-
mediaries to reconsider approaching Mr.
Shultz once again.
Other Selections
Late today, however, Pendleton
James, who heads the Cabinet selection
process for Mr. Reagan, said that there
had been no change in Mr. Shultz's deci-
sion.
Sources said that six other too-level ap-
pointments remained on track as previ-
ously reported: Caspar W. Weinberger,
vice president of Bechtel Corporation, foe*
Secretary of Defense; William French- e
Smith, Mr. Reagan's personal lawyer, foio '1
Attorney General; Drew Lewis, a Penn-1
sylvania businessman and vice chairmart"l
of the Republican national committee, t
for Secretary of Transportation i Senator I
Richard S. Schweiker of Pennsylvania I
for Secretary of Health and Human Serv-
ices; William J. Casey, a former intelli-
gence orricer and a New York taxIawyer, ,!
1
11-dr three- tor OrrefiTriteLligence, and
it i
epresen atwe Dave Srdeffman of Slichif=r1
gan, for Director of the Office of Manage? '
?,--1^.
ment and Budget. - - -
They also reported that Elizabeth Dole,':
former member of the Federal Trade':
Commission, was under consideration for ', t
Secretary of Education, but that Clifford' '1
Hansen, former governor and senator !
from Wyoming, who had been the odds-ont , !
favorite to become Secretary of the IiO.
tenor, may have had to withdraw for con?TV
Pict of interest reasons. Mr. Hanson, who .
has a ranch in Wyoming, has a Goverfs,-7, '
ment permit for grazing cattle on public -
land that he might have to give up to take ,
. t ?
the Cabinet post ?
Mr. Meese and other top Reagan ota:e':
cials were at pains today to check spread- ?
ing reports about Cabinet appointment;
contending that the Reagan team was-
moving as rapidly as possible given theto'i
cumbersome checks needed for financial .
disclosure and legal arrangements tce_`,e
prevent conflicts of interests. Mr. Meese
said the Reagan transition effort wanted,:
the checks completed before Cabinet.
announcements were made. - A ?
--Afthaugh he mentioned poesible aike.
' nouncements late this week, other tran.si,tt
tion sources said the middle of next week.,
is more likely. ?
Mr. Meese also went out of his way,
today to emphasize close cooperation,
with the Carter Administration on cur-
rent foreign policy issues, particularily
the crisis in Poland. . , ,i .
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f.,E. I? bi,usLA.0
THE NEW YORK TIMES
4 December 1980
Ki:AGAN IS PRODDED
TO CHOOSE CABINET
Aides Say He Is Forming Plans to
Announce Key Selections in
the Next Two Weeks
By STEVEN R. WEISMAN
. .s pedal to The New York Times
LOS ANGELES, Dec. 3.? President-
elect Ronald Reagan worked today on
plans to make public the major choices
for his Cabinet 'in a series of announce-
ments to be spaced over the next week or
10 days, officials close to the transition
said today. ?
By all accounts, Mr. Reagan was feel-
ing heavy pressure to end the speculation
and unofficial rereerts of chniees,
particularly those coming from Republi-
cans on Capitol Hill. But officials said
that delays were being incurred because
of the need for security clearances and '
the need by the prospective nominees to
consult with their families, businesses
and lawyers.
A top aide close to Mr. Reagan said
today that although the President-elect
had decided most of his Cabinet members
as long ago as Nov. 24 at a meeting with
his aides in Los Angeles, he had only
begun to call his choices in the lad few
days. The aide said that some key Cabi-
net positions are still unfilled and that the
inability of the President-elect and his
aides to reach a decision also accounted
for some of the delays.
. 'Not Completely Happy'
"We're not completely happy with
what we've got so far," said one aide
close to the decision-making process.
Nevertheless, knowledgeable officials
said again today that the Mr. Reagan had
settled on his top cabinet members. Gen.
Alexander M. Haig Jr., former Corn-
.mander of NAT() forces, is said to be Mr.
? Reagan's choice for Secretary of State;
Caspar W. Weinberger, a long-time aide
and now vice president of the Bechtel
Corporation, for Secretary of Defense;
Walter B. Wriston, chairman of Citicorp,
for Secretary of the. Treasury, and Wil-
. liam French Smith, Mr. Reagan's per-
sonal attorney, for Attorney General.
It was disclosed today that the leading
candidate for Secretary ,of the Interior
was Clifford P. Hansen, former Governor
and r..,?nator from Wyoming. . e .e.
geagan aides cautioned that these and
ether names, although considered the
choices of the President-elect, could be
thrown into question if problems arose as
a result of security clearances and reser-
vations by the nominees themselves over
conflict of interest and other legal prob-
lems.
It was reported further today that one
possible choice for Secretary of Labor
was Ray Donovan, a businessman and
construction firm executive who headed
Mr. Reagan's campaign in New Jersey.
Mr. Donovan was praised by Republicans
for helping to get the support of construc-
tion workers and other blue-collar
groups.
Aides continued to say today that Mr.
Reagan had decided to pick Senator Rich-
ard S. Schweiker of Pennsylvania to be
Secretary of Health and Human Services.
Knowledgeable officials also said that
-Drew Lewis, a Pennsylvania business-
man who is now acting as liaisonbetween
the transition team and local govern-
ments, the business community and the
Republican National Committe-e, would
be Secretary of Transportation.
It was also reported that Mr. Reagan
had decided to ick William j. Casey,
Ci
airman or is e ection campai
cnairman
o t e ecunties
an
Exchange Cornruission, as Director of
.Central Intelligence, and Representative '
David Stockman, a Michigan Republi-
can, as Director of the Office of Manage-
ment and Budget.
Reagan in Seclusion
Mr. Reagan has been spending the last
few days in seclusion at his home in the
Pacific Palisades area on the coastal sec-
tion of this city, except for visits from a
few of his aides.
The President-elect has no scheduled
plans to make any Cabinet announce-
ments before he leaves for New York City
on Monday, but aides said today it was
possible that he could make some before
then. One aide said Mr. Reagan could
make some of the announcements in New
York City itself.
The time-consuming process of estah; I
lishing security clearances and Making
other checks by both the President-elect'
and the prospective cabinet nominees
was expected to take most of this week.
Meanwhile, it was announced today,
that Mn Reagan plans to use next week's I
trip to the East Coastfor the same blend I
of official business and courtesy calls to
both Democrats and Republicans that he
adopted two weeks_ ago.
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CHaISTIAN NONITOA
4 December 1980
Reagan cabinet:
tough, pragmatic
learn shaping up
- By Godfrey Sperling Jr.
Staff correspondent of "
The Christian Science Monitor
? ? Washington
Ronald Reagan is not reaching out for
ideologues as. he sifts candidates for his top
appointments. - ?
Instead, the common element apparent in
likely selections such as Gen. Alexander M.
Haig Jr. (USA, ret.) for secretary of state,
Caspar W. Weinberger for secretary of de-
fense, William French Smith as attorney gen-
eral, and William J. Casey as CIA director -.
is a hard-nosed ability to operate well in situa-
tions where practical, tough judgments must
A source close to the President-elect says
of the Reagan selections: "Reagan is not go-
ing to have one extreme or the other in his
cabinet, those whose passions might cause
conflict and make it difficult to get the job
done."
? There are, in fact, some ideological lines.
General Haig is a moderate on domestic mat-
ters, a hard-liner on defense.
Mr. Weinberger is somewhere near the
middle of the GOP spectrum on domestic is-
sues. But bets a dedicated budget-cutter who
wields a sharp knife when it comes to waste.
. Mr. Casey's early political ties were with
Dwight D. Eisenhower. Also, Case is a New
epu ican, w ch means be is a little
more moderate than-Republicans elsewhere. 1
a er ris on airman o itCia-r-p, is ;
being mentioned for Treasury. He too is much
more a pragmatist than a political ideologue. i
But, says one Reagan associate, "I don't think
he'll get It." " -
"He [Wristonj is very used to dealing with a
lot of Democrats,." one observer here says..
"He, like Casey, is a New York Republican, 1
certainly somewhere in the Republican mid- I
dle in his philosophy."I ' '
Mr. Smith, Reagan's longtime attorney, is i
known to be a consistent conservative who
has been influential in shaping the President- 4
elect's outlook on politics and issues.
But Smith also is not considered tO be on ;
the far right.
Other names of possible Reagan appoin-
tees also surfacing include:
o Former US Sen. Clifford P. Hansen of
Wyoming for interior secretary.
o Drew Lewis, deputy chairman of the Re-
publican National Committee, for secretary
of transportation.
* Thomas Sowell, a University of Califor-
nia economist and a black, for secretary of
housing and urban development.
o Ray Donovan, a construction company
executive who was in charge of the Reagan
campaign in New Jersey, for labor secretary.
do Bill Brock, chairman of the Republican
National- Committee, for secretary of
commerce.
Another being mentioned for labor secre-
tary is Betty Murphy, former chairwoman of
the National Labor Relations Board.
No definite ideological thread is apparent
in this list of names either, although Mr. Han-
sen is known to be on the conservative side
and the others perhaps more moderate.
But this same source close to Reagan in=1
sists that "loyalty, of course, is a test. But.i
competence is of prime importance. And ide-1
ology is secondary." - .
The cabinet selections are being watched
closely for what they may disclose about the
President-elect's intentions and about his own
political philosophy.
Says one Reagan source: "Wei is setting
up this cabinet government, where he will be--
meeting with some four to seven of his cabinet
secretaries every day. He wants people he
feels comfortable with - people who get
along with each other. That's a basic consid-
eration in these appointments."
In this vein, it is understood that-William.
Simon, a favorite candidate of conservatives
for secretary of the Treasury, was eliminated i
from consideration. Some advisers told the
President-elect that, while highly competent,
Mr. Simorris not a "team player" and that his
abrasiveness would be detrimental to the I
smooth running of the administration. . 1
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Ragan I ii
-
ame. Aids
n Batches
?
-
Names_May. Start
Coming Next VVeek
Jeremiah, O'Leary,
,A.Washington Star Staff Writer -
- LOS-ANGELES=Ronald Reagan
,
has virtually completed selecting
the 13 persons hd wants in his Cabi-
net, and-transition officials said yes-
terday that the president-elect is
likely--to- begin announcing -their
names early next
--Transition officials-said-Reagan
is not planning to divulge his Cabi-
net choices all at once.The officials
? said Reagan may makethe first dis-
closures after he goes to.,New York
Monday. - - ----- --
There was speculation that if any
announcements are made here be-
fore-the Reagens head east-on Mon-
? day-, the most likely to be presented
will be the two Californians who
are-considered shoo-ins for Cabinet
positions. They are Caspar W. Wein-
berger of San Francisco, reportedly
Reaga.n's_choice to be-?secretary .of
defense; and Withal French Smith
of San Marino; a fronttrtinner to be-
? come attorney general.-- :
Reagan- may use. the New York
--
forum.foru?veill?gfixiancier.Wal-
ter Wriston, a-New Yorker, who has
been-most prominently 'mentioned
a-the?ext secretary-. of -the Trea-
sury..William 1.-Casey,?the -odds-on
favorite tor the directorsbap ot the
tlek, is a New York tax lawyer and
,former chairman of the Secialtris-
and ExcKange Commission frIniff
'be named to tne post in New York
where he nas many i lends. among,
the New York financial leaden-1M:
gan wi
there.
e seem
'
?
VPt$
ce'rfi
:40401T-tib901R00050001
--A West Coast-press spokesman tor
the Reagan transition said the an-_ ,
nouncements will be made in press.
conference-format- with the
president-elect-introducing his Cabi-
net choices in person.
-The Reagens. leave Los Angeles
Monday morning-and will remain
in New York until Wednesday morn-
ing when they will fly to Washing-
ton. A Reagan spokesman said one
reason for the New York visit was
for the Reagens to see their son,
Ronald, and his bride, Doria. The
Reagans also are scheduled to attend
a dinner Tuesday. at the home of
socialite Brooke Astor.
While in New York, Reagan will
meet Tuesday with Ralph P. David-
son, chairman of the board of Time
inc. He also is expected to see Mayor-
Edward Koch.
The Reagans will arrive at An--
drews Air Force Base at 10:25 a.m.
Wednesday.
STATI NTL
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THE WASHINGTON POST
4 December 1980
61(ey?Noininationsl
By Pie'sideiit-Elect::
Are Certain'
By Rolti4it: G. Icalses'Is
and David S. Broder- ..
wastu,gumpoltat!awriW5'
PresidentAeit'fRiinalds:Realin has
selected she" rain,forf:_1(ejsjOhi;in-hia-ad,;
ministrations informed sources kii'd'yei-
terclay, but heshis..92.totilyet_maclescfis.
nal choicelfoirthe;:poit:s.:of-secretary of
state and ?ary.dfthreUry:-
The
six nonsination4,that*Viappt*
"quite certair4thstse4p95,-*:,*.,
Weberto
of :defeni4WrhitrissReine:h.,rgiallan
attoniaYsgeileisal
Schweike'r (R:ga_.).:::*bes sec' re: --
health antihuman services, Pre*JA
to Be secretarssrof tririsportationi:-Wil.
liana J. Casey t'Orbe director Of thecen
,tral intelligence -Agency; . and Repy.4)4$
vid Stocianana(4-iylicts). as-director ,of
- the Office of-Management and Iludgets
Retired iriiLAlexander?
contiriuesS.Wligithe leading c?ntendt
for seoretarY'OrsOWsOurtqcsaid jut
the selection 'id, hot :final. PresSwearti
that Walter &Wriston, chairinaiiola;3
.ticorp, vvilt:-.11e.Reagan's.'=4'cre-t"E"
the treasurY5t prernatureg-idthese
sources said: Both Reagan and Wriiton
are still "hesitinabout his selection,4
according :teo;f one source '&0'. to :the4
president-plectP _
Alan Greet/spin; chief of the Coiiiic
of Economie, Advisess. in the Fortfack::
STATINTL
ministration, is still a posSibility for the treasury, 1
some sources said, and there may also be others. --
Yesterday's round of name-playing brought no big
surprises, nor any, certain information about when
the president-elect would reveal his final selections.
According to sources in California, Reagan hopes to
introduce his Cabinet choices personally, probably in
small groups, but it is not known when this-might
happen. Next week in Washington seemed possible:.
The president-elect has managed to maintain a sub-
stantial degree of secrecy about the way he is going
about the selection of Cabinet members, even if he
has mot been able to keep all the names of the can-
didates confidentiaL Sources close to Reagan have
said the president-elect will talk personally to his se--
lections, but none of the candidates for Cabinet jobs
has admitted publicly to a direct contact with Reagan,
by:phone or otherwise.
- Haig said in-Hartford; Conn.; -yesterday- that-he
hadF.not had any word. from Reagan. Haig said be
hada "no idea when or whether" Reagan will offer
hirrs:a job. He called the State Department job at-
tractiye, but declined to say that he would accept
Thesemerging Reagan Cabinet includes a heavy
close-of political rewardS.-Drew-Lewis, the apparent
choice for secretary of transportation, is a Pennsyl-
vania businessman whom Reagan installed as his rep-
resentative this fall at the Republican National Com-
mittee. The chairman of that committee, Bill Brock,
reportedly is under consideration for secretary of com-
merce, deputy secretary of state or ambassador to
the ,Upited,Nations. - ? ?
Sehweiker; Reagan's repOrQ choice for health and
human services, was. Reagan's- designated running
mate in his unsuccessful 1976 bid for the Republican
nomination for president Schweiker voluntarily gave-
up his Senate seat this year to work for Reagan's elec-
tion. " ? - ? . ; -
- ? Casey, the likely new director of CIA, was Reagan's
_campaign manager. ss - - sbsgessess.
Well-informed sources said yesterday thatdespite
the heavy. specUlation in the news media, the secre- _
t-aryships of commerce, energy, housing and urbancle--
?
velopmenta interior and labor are Still "really opens":
Agriculture, while- still -undecided, is- likely:to'. go
to John R.:131odeof Illinois a Successful farmer and
-that, state's- top- agricultural- official,s,thesel'Sources
saicIJ The job his becoine, a hotly contested one-Clay-
ton-Yeutter, president of the Chicago Mercantile Ex:
change, is still a possibility for agriculture, the sources
said: ,'.'',4-4i.A.rtizsii:s-;,es=41-i244,..sle4W'''''
-Reagan apparently is interested in finding a woman,
a black and perhaps a Derancrat to serve in his Cab-
inet,: but if that* the cases:these members remain
to. lel
-Aecording t&inforined sources, Reagan is continn-?
ing_to.diScusS7Tpossible 'appointeca withicey?ad ?
byhtelephonee Most-, 9E. his; principals associates! are
nown.in, Washington i where-the ?president-elect will
be nextweelc.2.5
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4 4
I f 'II '
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4 December 1980
STATI NTL
'Twas the night before Reagan
?
'Twas the night before Reagan, when all
through the House ?
And specially in the Senate not even a
mouse
Could list the big cheeses in the whole new
batch,
Such as Labor Committee chairman Orrin
Hatch -
Or the next 'voice you hear when you ring
your Don Ameche * ?
For the Budget Committee head, Pete V.
Domenic
_ .
So our stockings are hung in hopes they
--will fill,
Not only with names from Capitol Hill,
But: with all who may ? get a Washington
Under presidential counsel Edwin Meese.
And don't forget that transition team all
snug in their beds, ' -r? - - ???
While ? visions of cabinet plums dance in
their heads.
It's true that the forecasts remain a little
vague
But "sources" keep bringing up Alexander
Haig ?
And other alumni from administrations
past
Instead of the expected brand new cast.
?But there are some other names the gov-
ernment phone book may be listin'
Such as possible secretary of the treasury
Walter B. Wriston
And William French Smith, Mr. Reagan's
-
personal lawyer, ,
An attorney general who wouldn't be kept
waiting in the foyer. _ .? -
Or therecould be a change at the CIA, see?
Maybe - campaign chieftain William .J.
CaseY-? ? , - ? ????- ?
And some say the secretary of transporta-
tion's shoe is
On the footof a Permsylvariari named
?Drew Lewis.'
With Richard SchWeiker, who Ls also from
Pel3n,
Meaitioned for a post, we wonder what then
For - William Scranton, a -third from.
?
His absence from the press's speculation-
Is like that of EWot Richardson and some ,
As for those who are already home free,
Here are some names we find under
the tree.
If not a baker's dozen there's a Baker
times two,
Majority leader Howard and James, chief
of the White House crew. 1
And note the Senate committee- chairmen.
to put on the roll,
Such as - Environment's Robert Stafford
and Finance's Robert Dole.
_ _
Just to add to the bubbling Republican
broth
Governmental Affairs will have William V.
Roth_ - -
, Tilling Agriculture's far-flung realms
Will be the man at the tiller, Jesse Helms, .
While Energy's Idaho dynamo, as it were, --
Comes under the name of James A.
McClure, _
And Foreign Relations will be at the tender
mercy
Of Illinois internationalist Charles
Percy.
Closing the door of Banking's barn
Before the horses are stolen will be the job
of Jake Garn,
And to make Armed Services flourish an
flower
Hopes will ride high on John G. Tower.
On Appropriations Mr. Hatfield wilt sign
his Mark, _
While Mr. Thurmond will Strom the Judi-
ciary strings from dawn to dark.
In the Commerce Committee any Demo-
cratic attack would
Be repelled by Oregon's not Robert but
plain Bob Packwood, .
And at Veterans Affairs, an ex-GI looking
for a pal . , ?
Will find Alan K. Simpson ? "You know
me, Al." . ?
The long line of names -Spirals out of our
? . A
sight, ? ?
So for now, Happy Reagan, and to all
. goodnight! ?-
-
Who' could hardly.,,pe, Overlooked before the
falai choices,
But vie digress in the age of till troCk;. , Who may go to Commerce. while Agricul-
tare goes to John Block. ? ?
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.NEVI YORIC DAILY NE"AS
3 December 1980
STATI NTL
By JAMES WIEGUART and BRUCE DRAKE
Washington (News Bureau)?President-elect
Reagan: has decided on his administration's top
cabinet-po-sts, settling on Alexander Haig as secret-
ary a state, Caspar-Weinberger as defense secretary
and Citicorp chairman Walter Wriston as treasury
secretary, Republican sources said today.
William French Smith, Reagan's longtime person-
al lawyer, will reportedly become attorney general.
Sources said thatReagan has decided to appoint
campaign director. William Casey, a prominent New
York lawyer and onetime head of the Securities and
Exchange Commission, to the top job at the_Cptio
inteuiftriovitgleFeppliftkonAWMPlif)? tira480 1-00901R000500010002-3
.I
ecimomist Thomas Sowell, a black, to
the post of secretary of housing and
urban development. ,
-;
Casey, 67, the 'choice to head- the;
CIA, went to night law school at St.
John's in New York and during World
War II entered the Office of Strategic
Services, the forerunner of the CIA,
where he became chief of secret
intelli-
gence for the European war theater.
Casey had also been mentioned as a
candidate for secretary of state ,
1 STATINTL
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WASHINGTON STAR (GREEN LINE)
r.-AGE
3 DECEMBYR 1 980
Weinberger
Likely to Gel
Key POSitiOn
But Aides to Reagan'
SarChoices Remain
By Jeremiah O'Leary
Washington Star:Staff .Writer
? ',QS ANGELES 'Caspar Weinber-:
ger will be named to one of the big
three positions ?.state, defense or
Treasury ? in theReagan Cabinet, -
according to Reagan- sources here.
"Once Weinberger's slot is known,
the-rest- of the nominations .will be
easier to figure out," said a source
close tp. President-elect Ronald Rea-
gan. . ? -
Weinberger, who got the nick-
name "Cap the Knife" while working
on the budget for the Nixon admin-
istration, is serving as Reagan's
chief budget-cutter with responsibil-
ity for recommending cuts that
would hold the fiscal 1981 budget
to no more than $620 billion. - -
Treasury secretary. would be the
logical position for that work; but
? there are persistent reports that he .
will go tcrstate or the Pentagon.
. .
If Weinberger were to become
Treasury secretary, the way would
be clear for retired Gen. Alexander
Haig or Reagan campaign chief WU...
liam...1-? Casey .to become secretary
. of state and foneitherformer Texas.
.Gov.- John B. Connally or former:,
Defense Secretary Donald .Rurasfeld'
to take over at the Pentagon. Casey
also is- seen as ? a font-runner by
CD. director. . 4' ?
There also is speculation here that
economist Alan Greenspan no tong-
ens in contention for a Cabinet Post
Reagansources-report that a
name has has been added to the list of
leading Contenders for Cabinet1
nomination: W. Malcolm Baldridge,..
chairman of. Scoville Industries of
Waterbury, Conn. He is said to be
in good positien for ,a Cabinet post,
,perhaps secretary of 'commerce. Bal-.
:dridge,-,.was?.chairman, of. the Cone
necticut -Reagan-Bush,;comiaittee-
andco-ehairman of Connecticut Citi-
zens for Nixon and Agnew. He also
is a?member of the National Repub-
lican.Finance Committee.
Reagan sources also say that Rep. David Stoc-
kman, R-Mich., is likely to be named either sec-
retary of energy or director of the Office of
Management and Budget. .
California attorney William French Smith, who
headed Reagan's committee to seek talent for the
top government posts, probably could be attorney
general if he wants the job, Reagan aides say,?
but some believe the nomination may go to Califor-
nia Superior Court Judge William Clark. These
sources believe Smith, who is Reagans attorney,
may wish to stay in California. ?
Reagan has decided on more than half the
Cabinet nominees, but the names are not being
made public until after Reagan and his closest
aides have conferred with the president-elect's
first choices. .
,It appears that Reagan is not likely to make
public any of his Cabinet selections at least until
Friday, when transition director Edwin Meese is i
scheduled to arrive here for discussions on per-
. sonnel and policy matters. --
Three potential Cabinet choices have asked that
their names be removed from consideration. They
are William E Simon, George.Shultz' and Anne
Armstrong.
Until the Cabiaet offices are chosen, there are
not likely to be any final decisions on the sub-
cabinet.positions because Reagan wants the new
cabinet members to have a voice in choosing
the assistants and deputies with whom they will
be working.
Reagan is to fly east Monday for several days,
first to New York and then to Washington. Reagan
advisers believe most of the Cabinet will have
been made public by the time Reagan completes
his second post-election Washington visit Dec.13.
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10 T. I CZ:: .n.??..1 NEW YORK TIMES
a-L1 PAGE (4-7?1 3 DECEMBER 1980
REPORTED CllUSE
-AS-.TR-INITi. CIRCLE-,
-oF.Jigiyo_OBINEf
Haig at State Dept.; Weinberger at
Defense; Wriston at Treasury;
Smith, Attorney General
,ByHEDRICKSMITU
Special WM* New York Times ?
WASHINGTON; -Dee.' 2 Prisident.
elect ROnald Reagan, ,drawing on both
the Eastern establishment and Ms West
Coast political aSsociates, has decided On
the four men he wants to form the inner
ring of his Cabinet, well-placed Republi-
can sources said today. e
These sources said that Mr. Reagan's
choices were Gen. Alexander M. Haig
Jr., retired, former Supreme Allied Com-
mander (Europe) of the North Atlantic
Treaty Organization, for Secretary of
State; Caspar W. Weinberger, Mr. Rea-
gan's long-time adviser and now vice
president of the Bechtel Corporation,. for
Secretary of Defense; Walter B. Wriston,
chairman of Citicorp, for Secretary of the
Treasury; and, William French Smith,.
the President-elects personal attorney
and friend, for Attorney General.. e
Although all iour men are known as
conservatives Republicans, they are re-
garded as moderates and their selection
seems to point toward a trend in Mr. Rea-
gan's policy-making, following his pat-:
tern as Governor of California. =
- Caution on Clearances ., ?
The Republican sources cautioned that
not all the necessary clearances had been
completed and that Mr. Reagan had not
formally offered the top Cabinet posts to
these men or received their final accept-
ances . ,
: eeaeana'aa,...e'4" erlinintk4teeen.;.
These sources said that both Mr: Wris-
ton and Mr. Smith had expressed some
hesitancy about' entering the Federal
Government and that if they were to de-
cline to serve it could lead to reshuffling
among the top postsee'Y'',717ene
.Associates_ot Mr,elteagan7Pciinted. out
'that although liity/einberger very much
-wanted a foreigi policy post, he was suffia
cientlehversatileand experienced to shift,
. ,
. 'Casey and Stockman Listed .
Two other key Cabinet-level positions
were also reported decided. Republlean
sources said. that Mr. Reagan had ee-
eided to put his caripaign director, Wil-
liam J. CaSey, a New York tax lawyer, as
13tredfor oftenfrarinteiagence, and had
signaled his prefarence for Dave Stock-
man, a two-term Congressman from
Michigan, as director. of the. Office of
Management and Budget...._
Although Reagan transition aides said
that the President-elect was still working
on some of his Cabinet choices,- they re-
ported that he had essentially settled on
Senator Richard S. Schweiker of Pennsyl-
vania etoe be. Secretary Secretary of Health and
Human Services and not Secretary of
Labor, as previously reported: .
..They also said he was inclined to
choose Drew Lewis, a Pennsylvania busi-
nessmarewho became one of his deputy
campaign managers and deputy .chair-
man of the Republican National Commit-
tee, as Secretary of Transportation.
In an apparently typical pattern,' high-
level Reagan aides reported that security ,
clearance procedures had been initiated
today on Mr. Stockman, but by late after-
noon his friends said that he had not re-
ceived any call from the President-elect
asking him to take the job.
There were indications that the Reagan
personnel operation was undertaking
preliminary security checks and inquir-
ies about potential conflicts of interests
before any formal job offers or announce-
ments were made to spare both Mr. Rea-
gan and potential Cabinet appointees the
embarrassment of later disclosures that
would force a change in Mr. Reagan's
choices.
According to some associates of Mr.
Reagan, at least two prominent Republie
can political figures have been sounded
out about Cabinet positions and turned
them down. These sources said that John
B. Connally, the former Governor of
Texas, had rejected a chance to serve as
Secretary of Energy and that Pete Wil-
son, Mayor of San Diego, had declined to
be considered as Secretary of Housing
and Urban Development. -
Bill Brock, the Republican National
chairman, has been mentioned as a possi-
ble Secretary of Commerce, but Reagan
transition sources said that he was also
under active consideration for Under Sec-
retary of State. He has expressed an in-
terest in both commerce and foreign af-
fairs.
Possible Agriculture Choice
Although no decision is reported to:
have been made on the new Secretary of
Agriculture, senior Reagan advisers here-
met today with John R. Block, former Di--
rector of Agriculture for Illinois. who is'
being pushed for the job by farm-state
Senators like Bob Dole of Kansas.
The agriculture post could take on
more than normal importance because in
some preliminary plans prepared by top
Reagan advisers; the-Agriculture Secre-
tary would sit in as a member of the inner
Cabinet that Mr. Reagan intends to make
his chief policy-rnaking advisory group.
? Because of its importance, the Presi-
dent-elect was reported to have: concen-
trated initially on picking the key mem-
bers of his Cabinet who would serve in
that inner group, mainly the Secretaries
of State, Defense and Treasury and the
Attorney General.
The choices reported today reflected an
evident effort/by Mr. Reagan to achieve a
balance in that group of Eastern estab-
lishment figures like Mr_ Wriston and
.West Coast associates with whom he has
long been comfortable, like Mr. \Weinber-
ger and Mr. Smith. .
Blend of Old a.ncl New
The first four choices also reflect a bal-
ance of experienced Washinzton hands
and newcomers to government. Mr.
Haig, now 55 years old, not only served as
commander of the North Atlantic Treaty
Organization but also as White House'
chief of staff to President Nixon and as a
deputy to Henry A. Kissinger when he
was Mr. Nixon's national security advis-
er. At that time, Mr. Weinberger, who is
now 63 years old, was budget director and
later Secretary of Health, Education and
Welfare. Previously, he had served as di-
rector of finance when Mr. Reagan was
Governor of California.
Mr. Wriston, a widely respected New
York banker, and Mr. Smith, a Los An-
geles lawyer with family roots in Boston,
have not served previously in govern-
ment. Both men are in their early sixties.
Mr. Smith is a long-time friend who
served with Mr. Reagan on the Univer-
sity of California Board of Regents,. and
Mr. Wriston. joined Mr. Reagan's eco-
nomic advisory group last summer, in
the midst of the Presidential campaign.
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3 December 1980
arrow,
Weinberger Top Chokes in ,
List abinet
?
Yesterday's list of choices for the
Reagan Cabinet focused on by-now-
familiar names, including Alexander
Haig for secretary of state, Caspar
W. Weinberger for secretary of de-
fense and William French Smith
for, attorney general
The New York Daily News was far-
thest out on the limb, saying that
President-elect Ronald Reagan had
selected. six persons Haig, a former
supreme commander of NATO; Wein-
berger,. a longtime Reagan insider;
Smith, Reagan's. personal lawyer;
Walter Weston, chairman of Citi-
corp., as treasury secretary, William
Casey, the president-electcam-
paign director, as head of the Central
'Intelligence Agency, and 'Aortas
Sowell, a conservative University of
California economist and a black, as
secretary of housing and urban de-
velopment.
A top Reagan aide characterized
the Daily News list as "50 percent
wrong," but wouldn't say which half
was right. The Washington Post con-
tacted several of those on the list,
who said that if they had been se-
lected, it was news to them.
The Associated Press reported that
Reagan had made offers to eight per-
sons, but mentioned only four names
as "likely" or "top picks"-- Haig,
Weinberger, Wriston and Casey ? for
the same posts the Daily News had
EXCERPT
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ARTICLE
01.1 PACO / 0 TIME
1 December 1980
STATI NTL
Reagan gives a boffo performance in his first appearance in the capital
?
Wednesday morning brought one of
the more solemn transition rituals: the
passing on of intelligence secrets to the
President-elect. CIA Director Stansfield
Turner arrived at the Jackson Place town
house, briefed Reagan for 90 minutes, and
left stonefaced and silent; he knows that
he will be replaced, probably by William
J. Casey, Reagan's transition chairman,
who sat in on the meeting. But the ritual
had one touch of humor. Hurrying to the
briefing, Bush bounded up the steps of 712
Jackson Place and began shaking hands
with pii771ed secretaries from the Harry
S. Truman Scholarship Foundation before
he realized he was at the wrong building.
Said Bush to newsmen: "You can always
tell the new kid on the block."
?By George J. Church.
Reported by Walter Isaacson/Washington .
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ON PAGE 2 Z.
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U.S. NEWS & WORLD REPORT
1 December 1980
When Washington and the
President-elect came eye to
eye, each liked what was seen.
The watchword, at least for
now: Mutual respect.
Ronald Reagan's five-day, whirlwind
visit to Washington in late November
served notice that he is determined to
avoid the same mistakes that dogged
Jimmy Carter's administration. ?
Leaders of all three branches of gov-
ernment were left with that impres-
sion as Reagan flew back to California
on November 21 to begin the next
phase of preparations for his Presiden-
cy: Selecting a cabinet.
As the next President explored the
city that will be his home for four
years, sizing up its power brokers and
letting them take his measure, the
names of his possible cabinet choices
kept leaking out.
Front-runners for key jobs included
Reagan's lawyer, William French
Smith, for Attorney General and Wil-
liam E. Simon for Secretary of the
Treasury, a post the Wall Streeter held
in the Nixon and Ford-administrations.
In meetings with Congress, the Su-
_ ._
preme Court, the executive branchi
and local society leaders. Reagan also
made headway toward the major ob-
jectives of his Pre-dency?a balanced I
budget, tax cuts and a stronger de- I
fense. He let it be known that as soon
as he takes the oath of of-
lice on January 519 he will
begin implementing the
plans now being drawn
up by his advisem As the
President-elect put it:
"We're going hz, start;
grabbing right avolov...- .1
Reagan made it clear
that he was not ignoring
world events. He sat
down with Central intent-
Tr,re-nce Agency officials for
biTe-fikcTS and sent word to
the South Korean regime
that he, like Carter, op-
posed its plans to execute
-opposition leader Kim
The Jung. He met with
Helmut Schmidt during
the West German Chan-
cellor's November 20 stop
in Washington.
On the same day, for
the first time since the
election, Reagan met with Carter, I
spending 80 minutes with him in the
Oval Office. Carter called the meeting
"a :delightful experience,". during
which he talked to his successor about
the problems he vill inherit.
*
Although the fist of potential cabinet
appointees was not made public, it was
known to include the names of Smith,
Simon and a number of others with
close ties to Reagan. Smith, 63, a prom-
inent Los Angeles lawyer, was himself :
a member of the screening committee.
Simon was reported to be a unanimous
first choice of committee members.
Other names on the list included: .
' Director of Central Intelligence:
William Casey, a New York lawyer who ;
- ran Reagan's campaign committee and
previonstinheRed the Securities and
Ei-cfrange Commission.
By SARA FRI77.
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STATIN
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AT:..T C.L e, N EWSWEE K
Oz P G 1 December 1980
The Smart Set: Reagan was at least as
assiduous?and as winning?at paying .
court to Washington's other regnant power
elites. His visit to the Supreme Court was,
so far as its historians could determine,
the first by any President-elect since Mon-
roe; he sipped a glass of blanc with Chief
Justice Warren Burger and swapped sport-
ing reminiscences with Justice Byron
(Whizzer) White, once a football All-
American. And, where Carter and the Cap-
ital's smart set had held one another in
mutual dislike, Reagan reached out for its
friendship at a party of his own at the tony
F Street Club and a dinner thrown for him
by columnist George F. Will. The combin ed
guest lists exposed him to a mix of dozens
of BP's and VIP's from politics and busi-
ness, the arts and the media, the churches
and the local pro sports teams. Most were
surprised to be asked?the Democrats to
the point of guessing the invitations were
a joke. They weren't. "There is only one
letter separating 'President' from 'resi-
dent'," Reagan said, toasting Washington
on F Street, "and I intend to be both."
He was pursued on his rounds by gossip
as to the make-up of his Cabinet?a guess-
ing game he tried in vain to discourage
on theground that he hadn't chosen anyone
yet. The best bet on most tip sheets was
his friend and campaign manager?Williarn
Casey for CIA dixtor. George Shultz was
said to be leading for State and William
French Smith for Attorney General?if
Shultz can tear himself away from his Bech-
tel Corp. presidency and Smith from his
rich Los Angeles law practice. William Si-
mon, much promoted for an encore tour
at Treasury, has ran into opposition for
?
his prickly personality?the opponents in-
cluding his former boss Gerald Ford. A
boomlet for John Tower as Secretary of
Defense encountered static, partly because
it might cost the GOP his Senate seat in
Texas?and partly because some Reagan
men thought he was lusting too openly for
the job. Gen. Alexander Haig remained a -
favored alternative.
Shopping Lists: Reagan shrugged off the
stories?the work, he said dryly, of "people
who know more about it than I do"?and
repaired to California at the weekend to
begin making his choices. His Kitchen
Cabinet shipped him a list of 78 names,
four to eight for each major job, but staffers
counted it barely more definitive than the
newspaperversions. "It's a list, not the list,"
said domestic adviser Martin Anderson.
"Reagan has been thinking about this for
a long time. He has his own list."
Reagan floated through Washington se- ,
renely above the hum of rumor; he owed
his success there in part precisely to the
fact that he has not yet had to decide any-
thing serious or offend anyone important.
A guest at one of his hey-look-me-over din-
ners last week listened to his tales of how
he made Sacramento work and was struck
by his innocence?by his resemblance, that
is, to all the other fledgling presidents who
have blown into town promising to work
with Congress, tame the bureaucracy, re-
vivify Cabinet government and change the
world. "I'm afraid he's in for some sur- '
prises," the guest said. "He doesn't realize
what kind of bricks he's going to get hit
with." But Reagan could hardly be faulted '
for believing his notices or their unani-
mous verdict that he had conquered the
capital he ran so long and hard against. ,
PETER GOLDMAN with GERALD C. LL13ENOW
? on the Reag-an tour, THOMAS M. DeFRANK,
ELEANOR CLIFT and GLORIA BORGER in Wash- I
ington and MARTIN ICASINDORF in Los Angeles
- -
EXCERPTED
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rAG:g
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XT 1C
NEW YORK TIMES
DECEMBER 1980.
r1/
ESSAY
:start My. builchip. We have to double 1
?
, ? our production of backfire bombers; I
promised 30 a year, but the Americans,
' ? ? " will not know for three years if we
d crews
Cii. i. sproftutce160. agyoeaurr. nIowwilflorhaavirett:
- . air refueling. And if we are to Miry our
.0 , , ' SS-18's so they can carry 30 warheads
,
'. B rezi.ne-tv7 s A. instead of the agreed-upon 10, we must
start now producing the plutcrnium and,-
- building the guidance systems. ,
That's what Ustincrv wants, but I ?
. ? ?
cannot afford it The grain harvest
was -terrible; Afghanistan has been
'er ' costing too much; the strikes in Po-4
?-. ? j lande are giving some Russians the,'
Sacire - -).wrong ideas. I c'do not need an arms
- .- race, I need more food and -crSnsumer
. I'm hoarse fui shouting at Senator goods. An arms race would be terrible..
Percy. ? Clever of ? the Americans to , because the Americans have the in
send a man known to behard of hear- dustrial capacity to win it. It's vital 2
ing,-'and who makes a point of his tri- -'_'that they'd() notle-arn that we realize
umph over. a -.physical handicap. I that- I need SALT II more than I can
never knew for certain whether or not ; let them know. - -; ? ..
he had his hearing aid plugged in. . ., Could it be that the Reagan advisers-,
But is Percy- plugged in with Rea- ? are shrewder than either Arbatov or.,
, gen, Who' is also Slightly deaf? Arbatov ? Dobrynin think? Could they have sent
says no. Says that Percy-is one of the .7 'Percy over here to lead me to 'think
last of the liberal Republicans, a van- that new negotiations are possible'
ishing breed,. considered a softie by the right away, so that .I will put off my
Reagan men. Not a real emissary ?? February decisions? Could they be
the only briefing he was given was to raising my hopes, so that I will. bel
be handed a. couple of old speeches and obliged to do America's bidding in Af
copy of-the Republican platform. ghaaistan, in the Persian Gulf, in Po-.-
Percy speaks for himself, says Arbal , land?
tov, not for Reagan. No, Reagan is not that smart. Look
On the other hand, Dobrynin in at the way Helmut Schmidt made a
Washington?who saw Richard Allen, fool of him last week, enticing him into
the security adviser with the Amen- discussions in Washington so he could
can accent ? sends word that Percy. tell'. the 'Germans he had the nevr,"-
Could : be significant. Reagan may ' American President in his pocket_
want to show he is not such a Cold War Well, Reagan's young.
throwback; and may be using Percy as I know what I must do: publicly in-2:
a signal before he takes power. I won- terpret the.Percy visit as a genuine.
der which theory is correct? Reagan opening to d?nte. That will
The Americans are most confusing create a momentum in the U.S. for re-
in their times of transition. Here I opening negotiations quickly that Rea-
have the transcripts of Percy's press gait will not be able to resist without
briefings in Moscow, telling people S appearing to be a warmonger. The
back borne-how tough he was inform- ? Senate, the newspapers, the beaten
Ing us that SAI.T II is dead and how he Democrats and Chancellor Schmidt
warned us to stay out of Poland. But will all force him to be "reasonable,'
here are the intercepted cables from and _accept my offer of cosmetic
the U.S. Ambassador Watson to his so- changes. In that way, I can take away',
periors at State in Washington, report- his leverage immediately. ? :-.
ing how forceful I was -with Percy :If Reagan waits, I would have toT
about SALT and showing what a pus?, make negotiations more attractive fop ;
sycat he was. I like Watson's report. . him. Jewish emigration is down to 700
. _MYproblem is this: I must know be- a month now?I could ease up on that.:
'fore 'February, ,if Percy ,represents On the Other hand, if Reagan is cap..' -
Reagan's view, 'and if the:Americans tured by the new momentum - of.i
will be-willing to negotiate SALT two- _detente, I could then insist on an end to
and-a-half right away. In February. America's grain embargo. A great
the Communist Party Congress meets. rdeal depends on who appears more
here in Moscow to lay out the five-year eager to begin negotiations.
plan. Decisions must be made. The riposte that worries me most
If the- Percy assurance i are really _ a proposal by Reagan for actual arms j:
based on Reagan's policy:then we can reductions ? not just limitations --,-
give the Americans some cosmetic _ such as Carter suggested in March of
changes in SALT II ? make the new :-.1977. Carter retreated when I became
' Administration appear ,to have gotten .. '-furious at that; Reagan maynot.
concessions that Carter failed to get ? : ". 'Maybe it's time to bring Anatoly Do:1
. and-ratify our deal. I rnusthave that brynin back to Ene torew mirustry,?1
Approved FaREkrifiC;tdailatitas:ttl..41-wiTzt.
a ? ? - 4_ 1II.0
ot ?
. 10002-3
offset our encirclement.., the Defense Secretary will be Laspar
?
But itthe Percy talk q willingness Weinberger, tne director ot CeritraTrn-
el ; el L.
STATINTL
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C1.1 ?PAGZ 29 NOVEMBER 1980
" * _CI% Director Stens! fold Tumor has failed in a
' concerted campaign to hold on to his job_in the new,.
Administration. Turner;; whose rule has-,shattered
morale at the agency, lobbied strentiously to keep his
post. But Reagarrdecidedearly to bring in a.new team
- at the agency: His reported choice to succeedTurner;
campaign chiet.lrVillia;ni Casey, :despite- his. experl-
ence. in the field, was not the favorite of some intelli-
gence professionals, however..lhey would have pre-
ferred Vice- Adm.- Bobby R..-Inman, -.head of the
National Security Administration, or former Ambassa--f
doe Ls
uSllba,
?
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.051 ? NEI f 0 ?A 1
26 November 1980
?
ASHINGTON?Ronald Reagan-is still said to
be working out his Cabinet choices, so the
? :net worth' of his official family cannot yet
-be calculated. But whatever, the financial worth of
? his real Cabinet turns out to be, it can be said right.
now: that the old friends and associates who are
"
assisting Reagan in the
selection .process-16
-millionaires known as -
Reagan's"--: -"Kitchen-
Cabinet"-would -smalce
the - Eisenhower::' ad-
ministration's 'famed ft:
"nancial biggies look like
a bunch of pikers. ?
ss The group is formally'.
known as Reagan's
-, transition advisory com-
mittee on personnel, and
IlViNANI" it includes some of the,
'former California gover-:
nor's political advisers,
- and several persons who.
will serve on his-White House staff?people like
longtime aide Edwin Meese 3d, who has already been
named 'presidential- counselor.; California public
relations man Michael Deaver, who is expected to be
a top White House adviser; William J. Casey,, a
wealthy Nevi York lawyer -Who prooably be
named-direct-R*7?f theta; farmer Treasury Secret-
ary WilliamiirSirge71 for the same post in the
Reagan,administratien,. and Sen. Paul Laxalt (R-
Nev.),-chairman of Reagan's campaign. - ,
; But the- real power in the Kitchen Cabinet is
wielded by a'relativelr small group of California
millionlires who viere instrumental in luring Reagan
into -running for governor of the V state against
Democrat Edmund G. (Pat) Brown-Sr., Jerry Brown's"
father, in 1966 and who have guided his career ever
since. ? ' - . ??
First among equals in thiS group esSustin Dart,
73, chairman of Dart Sr Kraft Inc.-'a-crusty, outspo--
ken dynamo of a businessman who likes to think of -
the Kitchen Cabinet as a"cross-section" of America.
It was Dart, and-William' French Smith, 62, a
highly successful-real-estate attorney and Reagan's
personal lawyerw arsd -multimillionaire Southern
California Ford dealer Holmes Tuttle, 75, who were'
instrumental in bringing Reagan into the political.
arena 15 years ago. - - . ? . relss;
. ,
Along with the late- A.C. (Cy) Rubel, 'chairman of
the, board of-Union'Oil Co., and' oilman Henry
Salvatori, the group determined that the man who
-spoke more eloquently and fOrcefully on behalf of
Sen. Barry M. Goldivester and his ill-fated conserve:-
tive crusade of 1964U-tan Goldwater himself simply
had to assume the iedderships of ,,the Republican..'
Party's conservative slang., ^
^ In. athlition to_Smith? Dad, and Tuttle the current; 'j
?
eesessai.s.-S4Vesele-Vesse
Reagan advisory committee includes, among others, ;
Alfred Bloomingdale, W. Glenn Campbell, head of
the Hoover Institute, a conservative think-tanks
Earle- M. Jorgensen, 82, chairman of Jorgensen
Steels Jack Wrather, 62, head of the Wrather Corp.,
an oil, entertainment (it owns the rights to."Lassie")
and real-estate conglomerate,. Theodore Es Cum-
mings, 72, founder of the Food Giant supermarket
empiress'..and- JaqUelin Hume of San Francisco,
president of Basic?Vegetable Products Inc.
Just how important is this Kitchen Cabinet In
terms of shapingsthesReagan presidency? .'Very-.
important," is the cryptic response of a Reagan
'insider, "not only in picking his to people; but in "?
shaping policies.".' s - ..-? s
When Reagan was elected to his 'first term as-
-'California' governor, the original, smaller Kitchen
Cabinet led by Smith was charged with conducting
an' exhaustivetalent search to come up with bright,
young, conservative managers to fill the top slots in
state government:. Not only that, but the members
also freely advised Reagan on -important policy.
decisions. ' s . ,se _
Throughout Reagan's first campaign against Pat
Brown, California Democrats viewed the powerful
group as mystery Men" who would manipulate the
politically inexperienced Reagan. for their own
ultraconservative political ends.
That charge fell flat, however, since none of the
inner circle seemed to want anything for themselves.
They were all wealthy, powerful persons in their
own right who sought neither appointments to high
office nor government contracts for their busines-
' The larger, slightly more diverse Kitchen Cabinet
has more competition for President-elect Reagan's
ear than the initial group. Reagan insiders point out
that he must also heed advice from the Republican
establishment, particularly former, President Gerald '
Ford and top ..officials in the Nixon and Fordsi
administrations? ,and Republican-leaders-in the Con- '
gress_ _ - ? s --- es,
Yet is is also true that the list of 70 prospectiVe.;
appointees for the 13 Cabinet posts he must fill that
Reagan is currently studying on his ranch near .4
_Santa Barbara is a list that was compiled by the!
Kitchen Cabinet.- ? ' '
' ? ?
, Reagan insiders, defensive about how big a role i
the Kitchen Cabinet may have in the Reagan .
ad-
ministration, argue that most Presidents have, in the 4
'past; relied on advice from longtime friends and ;
associates. After all, FDR, had his "Brain Trust," ,.l
Truman had his "Poker Cabinet," John F. Kennedy
had the "Irish, _Mafia" and Jimmy. ,Carter had his
Georgians.::. ' ?
? - -
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STATI NTL
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SPRINGFIELD NEWS (MA)
24 NOVEMBER 1980
By FRANK FAULKNER As Reagan's friend and presiden-
., AIVIHERST The Central pal -campaign manager, Casey was
-gene& Agency has been recruiting dOnsidered a likely candidate for sec-
students at the. University' of Mas-
sachuietts, a rnajOr]change from the
low profile it kepi' during .the decade
of anti-war proteifi and an indication
that the agency .-in*-13e:fmaking a
public comebackil ? _ ?
'. CIA recruiters Were here Thdrs-
day and FridaY to attract students in-
terested in "research, analysis and
collection of foreign intelligence" and
who had UMas training in electrical
engineering,- computer science, eco-
nomics and language training in Sla-
.vic.; Asian or Middle Eastern studies.
'Arthur Hilson, the IIMaSs director
of placement, who schedules recruit-
rnent interviews, -said the CIA began
..,..4'recruiting here during the 1960s, but
,bypassed the campus due to student
;
Bush May ,Help
US. Rep:. Edwailet 'P. _ Boland, ; D-
. Springfield,r-chairman of the House
'intelligence' Committee, -.'which has
. 'purse string 'control over .,the spy
, agency, hassaid that haying former
. CIA director Georg,e Bush as the new
administration's ,:".point Man" may
T.. beip the agency.nvercome inany of its
7.-.-difficulties : -j"..-viith '' restrictive
i
?legislation. ..?'? ' ..',.-, -fs:.. .
-Reagan's transition teami has. indi-
cated that the neVibIA director may
:-.-; be William J. Casey,' who helped di-
', ',.rect American '' intelligence -oPera-
;C,tions behind German' lines 'late in
'World War H.,. :--,' :7 ...1*.jlit t ''' -::;?:?:1'. ;Ii.-':'? 2 f
;Boland 'termed CaiiCasey,"an.?eiCel:=:-;
-' '-' ' ' ?-s 4 11.-'1.
excel-
rt 'a . administrator who fik a..we 7.,
iialitied background --''',,,tfti - intellil
lice:"-',?' The Coligressihan' said he?
knew him when Casey waiOnemberl.
App reAtildt0ear'Roliedgi342001/69/
4dn:ilhistritiOns;i.ez....:;.?:-.,?,,T.:,---2.,
eretary of state, but George Shultz and
Alexander M. Haig,.president of Unit-
"ed Technologies Corp.. in Hartford,?
Conn., have been named as strong;
: possibilities for the State Department
helm. - ? ? '
Haig a Possibility
-
Haig has, also been mentioned for
the CIA post, and he is a possible
candidate for secretary of defense,
but the retired general would'require
a Congressional waiver from legisla-
tion which prevents officers from 'ap-'
pointment to the Pentagon post with-
in 10 years of retirement,
United Press International, citing
transition sources, has dropped Haig
from its list of top choices, which in-
cludes and has listed George Shultz
as the likely secretary of state and
Casey as 'potential director of the
CIA.
Casey is chairman of Reagan's
transition team, known as the "kit-
chen cabinet," which has been advis-
ing the president-elect, who is expect-
ed to announce his cabinet choices
Dec. 1.
World War H Service ?
During World War II, Casey head-
ed the German intelligence branch in
the Office of Strategic Services. Ac-
cording to R. Harris Smith, author of
'"OSS: the Secret History of Ameri-
ca's first Central Intelligence Agen-
cy,' published: in, 1972, Casey was
chief of the' Strategic Intelligence
Branch 'which had contrpl ' of ' cov-
,ert Operationi-izi Germany and by the
spring of 1945 had parachuted more
NaffirpIPAthreiEe6co
n ers an repot on
'troop
an emergency measure, the
new SI Branch chief, a wealthy 32-
'Year-old tax lawyer, William Casey,
was given overall operational control
of German projects," Smith wrote.
"He coordinated the- effort to send
Polish, Belgian, and French agents to
:the -major crossroad cities of Ger-
many. The tactical missions were I
launched by Army units at the front.
The deep penetrations of agents para-
chuted far behind the lines were
flown from, Namur in Belgium or
from the OSS detachment at Dijon in
eastern France."
In 19,39, Casey was chairman of a
"National ' Citizens Committee"
which purchased large newspaper
advertisrnents throughout the noun-
: try supporting the Nixon administra-
tions Vietnam policy. ..
'gChaired SEC I.
In March, 1971, former President
Richard Nixon nominated Casey to
Lthe Securities and Exchange Com-
mission andY Casey became its
chairman
During the campaign, Casey advo-
cated a more aggressive American
intelligence operation and, in combi
nation with Reagan's campaign rhet-
oric, caused some liberals to fear the
new administration would unleash
the CIA from some Congressional
controls. -
Boland said his House Intelligence
Committee controls funding for cov-
ert operations and he did not expect
major changes in the agency.
But the Heritage youndation, a
conservative research "group in
Washington, released a 97-page intel-
ligence report Thursday advising the
Reagan administration ' to make
sweeping changes in the agency.
The report recommended separat-
king' clandestine operations from the
CIA, hiring more and better trained
agents,_ establishing' competing
sources of intelligence and altering
laws which restrict CIA gaz.all2ns.
00010002-3
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C!.4
NEWSWEEK
- 24 November 1980
pE s p
Reviving a Presidential Panel
The Reagan Administration is expected to revive a White
House panel called the President's Foreign Intelligence Advisory
Board, created by President Eisenhower but disbanded by Jimmy
Carter. The board was usually composed of establishment leaders,
and Carter thought they weren't rigorous enough in reviewing
_
CIA operations. William Casey, Ronald Reagan's campaign man-
ager, once served on the PFIAB and so did Washington lawyer
Edward Bennett Williams, one of the few Democrats on the
Reagan transition team. Vice President-elect George Bush
worked closely with the board during his tenure as CIA director
under President Ford.
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Approved For Release
iC,
ON FA C.;11,
STATIN
2001/03/06 : CIA-RDP91-00901R00THE WASHINGTON POST
24 November 1980
Rowland Evans and Robert Novak .
4Aren't we a very old team?" Winston
t..`hurchill asked Prime Minister Neville I
Cllemberlain on Sept. 2, 1939, surveying'
;Chamberlain's proposed war Cabinet. It
.Eis a question President-elect Reagan also
should ponder:.'as, he begins Cabinet-
snaking in earnest.
In fact;, he should broaden the guess
etioneAren't we in danger of becoming a
very old, very gray and very establish-
ment team of businessmen with reputa-
tions as managers but not as men of
ideas? Before Reagan himself has made '
a single Cabinet decision, the most prob-
able and important selections are arous-
ing anxiety among his supporters.
The antidote happens to be very old `
'himself but is anything but gray, is not
? establishmentsnot a businessman, not a-
manager and is surely filled with ideas:!
Ronald Wilson Reagan. Jut as Reagan.
isthe best hoThrlidi&il eConornic. aid.
? national security policies, he is also the
-principal obstacle to an old gay Cabinet.
' That Cabinet is taking shape in leaks
from senior Reagan. -aides. New York
lawyer William Casey, 67, at CIA and
Los Angeles ? -lawyer William French
Smith, 63, at the Justice Department are i
considered all but certain. Those twin
executives from the Bechtel Corp.,
Casper Weinberger, 63, and" George
S4,ultz, 60, are prime possibilities to be
named somewhere--State Department,
Pentagon or Office of .Management and
Budget. " =
Adding William Simon, at 54 neither
old nor gray, only slightly modifies the.
gerontocracy of this presumptive Cabi-
net. Along with Reagan, -soon to be 70?
its average age is almost 63. That ap-
proaches the proptssed Chamberlain war'
ld
raCabinety
Cabinet's average age Of 64 ("Only oni'S
year short of the old age pension!" the
then 65-year;old Churchill exclaimed).
But age is not the moat seriouS prob-
lem: Some insiders call it an "embarrass-. ,
? merit" to make an attorney general out
of Smithr-described by one -Reagan ad-.'
Viser as "a: society lawyer." Reaganites
blame him,- as Reagan's family lawyer,
for Reagan's politically embarrassing
zero income tax, payments of the past.:
Whether such criticism is well-founded,
nobody has accused Smith of serious
thought about government.
Nor does anyone believe that Casey, a
brilliant World War II manager of es-
pionage operations, has an agenda For
rehabilitating today's CIA. Although
.-Vrelniberger may return to his Nixon ad-
ministration post at OMB, his transi-
tion paper on the budget is considered'
by 'experts to be 10 years out of date.
The widely respected Shultz is 30
much an establishment conformist that
even some of his admirers believe he
would be an effective secretary of, state
only in an administration peppered with
younger, more innovative personalities.
Otherwise, he might take on the colora-
tion of his older, grayer colleagues.
Why are the names emerging from
Reagan's kitchen cabinet so lacking in
youth, dynamism and imagination? Be-
cause the advisers, elder establishmen-
tarians from the world of business, seek-
above all managerial ability.
Past Republican administrations, as
well as Jimmy Carter's, have been se-
duced by the notion that managerial
.ability--is the principal governmental
skill. Lawyer-banker Laurence H. Silber-
man, a trenchant Republican analyst of..
goveirtment, has written that ideology
and program are far more important
Without ideology, Silberman wrote in I
1978, "we see the now familiar picture of
President Carter pondering each new,
question as if it were an isolated ad hoc
engineering problem."
That is why the abrasive, contreversial
Simon is Welcome relief to Reagan sup-
porters who worry about an old gray
Cabinet. Whatever the complaints about
his temperament, Bill Simon lives in the
world of ideas. What's more, he is willing
to change them, currently showing much
more inclination toward radical supply-
side economic notions.
Republicans Originally attracted to
Reagan as a force for change also want at
least one young.,-clearly innovative figure
in an important Cabinet post. Rep.
David Stockman of Michigan, 34, carries
that hope in an intensifying push kir
him as 0.11,IB director. Stockman has izi-1
formed Reagan transition agents he has
no interest in a token position, such as
secretary of energy. . s
The conventional wisdom doubts Rea- .
gan would stray far from the advice of his
old friends. While insisting on -massive
tax cuts and massive defense spending
against the counsels of caution, it might
be too much for Reagan to ca.sta gimlet
eye on eminently-respectable recomme-ndations from his kitchen cabinet ,
? But unlike those retired business ty-
coons, Ronald Reagan has never met A
payroll. For the last 20 years;'. he has
dealt with ideas?showing staitling re-
ceptivity to new concepts. He might
prefer a few younger colleagOes with
similar intellectual boldness by his side.-- '
c1980,Field EnterpcLies, InC.1
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:AR T I C LE i!..L1' EAR1.0
PAGE.4eR272,2
NEW YORK TIMES
24 NOVEMBER 1980 the sponsorship of Henry Kissinger,
ESSA?17 - ?
who appreciated an efficient order-fol-
- lower who would coolly tolerate the
most demeaning bullying. Like a Gil-
bert and Sullivan admiral, Haig knew
how to polish the top-brass handles of
the Oval Office door.
2. The 17 illegal wiretaps. Because
of a personal interest in the 1969-71
eavesdropping on newsmen and White
? e' ? House aides, I asked William Sullivan
? -e".ere,
? of the F.B.I. in 1974 who was the man
who transmitted the White House re-
-, By William Satire ? quest for the unlawful surveillance,
WASHINGTON ? Get out your yellow and who reviewed the transcripts. The
pad and put yourself in the loafers of the reply: "Colonel Haig." When asked to
President-elect as he weighs the pros and say it wasn't so, my former colleague'
(eons of his choice for Secretary of State. said of the tapping: "It never gave me
..'Ore name that appears on the final gas pains." To this date, Al Haig has
four-name short list is general Alex- ? ? never been! reprimanded for ? or
ander M. Haig Jr., former Deputy to -shown any remorse for?his intimate
National Security Adviser Henry KIS; , role in this perversion of the national-
singer, former Army Vice Chief of security power. (I have forgiven him,
Staff, former White House Chief of 'but whenever there is a click on my
Staff, former NATO commander, for-.: phone, phone, I cannot help saying 'Hi, AL"
_
mer man on slow horseback. - ; ? 3. Trotting out the tapes: At confir-
? The assets are Impressive: 'nation hearings, any embarrassing
1. Demonstrated bravery. The 'moments on the Nixon tapes involving :
tinguished Service Cross Is not handed Al Haig are sure to be publicly played.
out lightly:. Al Haig was a genuine hero ' A few apple-polishing remarks are al-
it.' the battle of Au Gap, early in the - ready known ? "Only you, Mr. Presi-
Vietnam War. In addition, he won a - dent" ? but Haig assures friends that
battlefield promotion to colonel of an-: no no substantive improprieties will be
' infantry battalion for leading troops in .' revealed. Before making any decision,
? An Loc. Performance in combat ? Governor Reagan will have to make
coolness under fire?Is an important certain that Haig's recollection is ac-
criterion in judging any man's quail-. curate and consider if he wants any
ficati on torn job in the storm center. Watergate-era associations attached
2. Well-regarded by allies. After ar- to his Secretary of State. (John Con-
ranging for the resignation of Nixon, nally also- had this problem; Shultz
' Haig was assigned by President Ford":a.ndW'einberger did not.) ' '
to the top military post in Europe. As 4. Running for President from State.
NATO's Supreme Commander, he won ' Al Haig stilt wants to run for Presi-
' the respect of most of our allies for his ?dent; as Ronald Reagan roust be the
intelligence, political sagacity and first to know, that is not an ignoble
forcefulness. Europeans are familiar ambition. The question is: Does Rea-
' with Haig and would be comforted by ? gan want a man at State afflicted with
his appointment. ' the need to factor his political future
3. Finn grasp of the' strategic into his diplomatic recommendations?
threat. When he resigned from his Now put down your Haig yellow pad.
NATO job last year to test the political . Pick up similar rundowns on the pros
waters .back:- home, Haig recom- 7 and cons of other panel-recommended
mended that the Senate hold the SALT " "finalists":" George Shultz, who has 7
II treaty in abeyance while its flaws , asked that his name be withdrawn but
were renegotiated. He was especially who was told to take that up with Rea-
- critical of an agreement perrniting the ? gan directly; William Casey, who. is
' Soviet backfire bomber and 55-20 mis-. feysay_beedysiroice for C.I.A. ceThiit
, sites to "run free" while limits were is showing late strength in the choice
placed on our cruise missiles. He was for State; and Casper?Weinberger,
tough on SALT before Afghanistan. e who is closest of all to Reagan. .
:4. Experienced cultivator of opinion- Add to that list Henry Jackson, who
makers. ;Many of the books and arti- would contribute that note of unlike-
cies about the last days in the Nixon , mindedness; on domestic affairs, so
-White House drew on details supplied - needed among the top handful. At the
--on deep background ? by Haig or highest level., good-soldierliness is an
his assistants; as a result, most ac- overrated virtue; it would be as much of
counts gratefully, portrayed Haig as a mistake for Reagan to put a military_
the de facto President,' saving the " ? mind at the head of State as it would be
country from the potential thrashing- for him to put his personal lawyer at the
about or a wounded leader. Thouglr4Vhead of the Justice Department.
= Nixon loyalists fumed, practical politi--:,-e;le Where does a Cabinetmaker come
- clans admired Haig's ability, to extri-::' out? In the case of Haig, his assets far
- catekimself with praise from the key . outweigh his. liabilities --- for Chair-
?
:..)vriters; x,kp= man of the Joint Chiefs, for chief SALT
Approved For qtagg
ietetufto 09 11?00060804160012
.; or ?scow, or to command a military-
4r- Sycophartay footwork- Haig is the,...!?.k political operation to provide Iran with
oillylipur-starl general never to have '71- a auitable trade for the hostaaes. Not for
STATINTL
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WEST PALM BEACH POST (FL)
23 November 1980
111'
01
? ? ..,?!1!?;',0414
'
-
tices
A
By 'Lindy Schultz
Post Staff Writer . "?"...' ,
--JosephCasey?
iteagan's apparent,,Choice to direct'
the. fCentrai - Intelligence , Agency
travels ' to And .from his house on..
Palro,, Beach: 'so junobtrusively, ; that
few- people ever: know he has come
and,., gone:. - Palni
Seichers don't 7 -.even know-, that
Casey- haS owned his hii-,house on NI
Divan.: Blvd. just-north of the
Kennedy.. estate _ --????t for ;roughly ?the
length( of-.-..!-Jimmy
? His;-2-: telephone :1-..'iitiMber,-; unlike.
those_of4:rnany Palm Beach social-
ite,-,-.'.is' ::unlisted.',I.He does not be-
' long to the Palm Beach Civic .Asso:,
elation, whose' membership is de ri-;
gueur, for' the island's- establishment.
During the- intermittent visits made
:by:him and his wife. Sophia they al-
most. never -make the social ramble,
preferring' instead : in': see --a few
friends and talk. of world and finani
,cial,-affairS. The area is Casey's bar-:
[box; after 67' stormy years, during
which he ' hai ',been a tag lawyer,:
high-ranking government official and
keeper of the Republican flame.-: ? .
"Bill and Sophia. are quite .private
*hen. they! re2. here?They"re not
so-
cially,,. 'Said .-- Granville
Morse, a -semi-retired Palm Beach
investor , who sold-, Casey his borne.
tri/5s here are- relaxation ,for
blab Privacy it".;What.he :values most
when he'S..here.",;:?-?t-li!,Z.i.".'.'44e',:`,."".':'4d'f
Casey's. has been i.very public lire'
:ntherwise; from the. -time he Worked,
;in the _office.; .oVStrategic Services
(OSS) the mother of the CIA
.duringiWorl&-.War41. through: his
'tenure as president of the ? Export:-
Gerald. Ford.
:Over those three decades, he estab-
lished himself-as the prototypic 20th-':
-century Republican: conservative;:
:urbane,. successful and wealthy. .;:.%,;;;,i,
made 'all the money inihnsi.-1,
-Inez that ? my-family" could
spend,".? he said10966, can make;
:a real- contribution in public offiee..!1`4,
His, friends:- say', he is., known ler.:
-frankness- Witness the statement
:was 'never- in -sa -la* firm where V:
_wasn't bringing percent of theC
:birsiness-131..that?.claim is true, his'
LinfluenceAPII)i/theinf- FocirRikid
t.14,F-years .4 -partner --a 'NewYorlt
!OM-that included' Leonard
nhnirrrinvi nfth Rpnubliean Na;.!,
a
""The path from-service-nsa Couni
sel'-liv--EhrciPeAo -.those 'running the?
Marls-hall PlairJL--t: under -HarrY-Tru-
.
rnan-;..-- to possibly' the'.CIA?
. head-
quarters in Langley, Va., under Ron-
ald Reagan has not been without its
roadblocks:.' and blind Curves. One
State- Department' official familiar
Casey's - career - said;
; Cagey may fall sometimes," but he
knows how to land on his feet.--
;Three times between 1962 and 1965
Casey was sued, once for plagiarism
? he has WrittennuMerous books on
taiation:aad-,-..itivestment
twice in 'connection with '.his bor-
, porate activities.. Casey admitted at
Senate hearings,._;7. -after first deny-
ing it- that he; not the judge;t. had
moved to seal _the record of the pla-
giarism'''triaL One of the stockfraud
suits was settled out, of' court.
third eventually was dismissed.- All
of this appeared not to' ruffle Casey,
, v--rho blithely declared . to .one report-
: ;e4- that .."guys: like me are always
gettinesued."- At one point his annu-
al income was 'estimated to be $250,-
f
His Burly-burly background elicit-
sharp- discussion when Casey was
nominated by Richard Nixon to be-
come first' in 1969 a member of the
Advisory Council of the U.S:' Arms
Control and Disarmament Agency,
two years later, chairman of
the Securities And Exchange
7 Corn-
mission . (SEC.) At the Disarmament
Agency: hearings, Senator J. William
Fulbright Sparred with Casey over a
'newspaper ?advertisement promoting'
-the Anti-Ballistic Missile and placed
-ny-the Citizens Committee for Peace
with Security, which Casey. founded:.
It had been revealed that 55 of 344
people whoiesignaturei appeared on
.
the ad had -ties to 'the -defense in-
dustry.' Despite '.Fulbright's
objec-
tions, Fthe'.;Foreign Relationi. Corn-.:
mittee approved-Casey's nomination.
:'In l971,'.Sen,,.William,Pro,xmire
(DVisc.);!?;;chairman:;.of.: the Senate
'Banking' Committee, "arguee,with'
;casey-- overthe SEG:
said- he
.vas- a"risk capitalist..', Proxmire
;
contended Casey ? was ?wheeler=,_
dealerventure capitalisMIn?
:of Casei*opr one:
. .
prIggiureg
ef o
Casey:s?, back..?
'`.,..grounclaPprindm tek.,?,..thataiit-- the
se,
-
ie
first SEC chairman '1-- Joseph R
Kennedy of New York and Palm
Beach. Indeed, Edward Kennedy,
told Washington's Gridiron Club that
-"Casey, is the second most outra-
geous appointment in the history of
the SEC_ The fir3t was my father."
As, chairman,,-," Casey was en-
meshed in two scandals that brought
down other members of the Nixon -
administration. In 1971, the SEC had
sued International .Telephone& Tele-
graph (ITT)-for,:stock -fraud -during-
the company's merger,. with the
Hartford - InsuranCe -Co.- When re-
ports broke ....alleging collusion
between ITT.: and the Nixon White
House,. Congress :.tried to: get the
SEC's files' on its ITT investigation.
After a meeting at the White House,
Casey sent the files to the Justice
Department,-, which is a member, of:
the Executive -Branch. When, two
years later, news -of that transfer
came out, Casey had become Under-
secretary of State for Economic Af-
fairs and was traveling abroad. He
declined to comment. . -
At about the same time as the ITT
case, the Nixon administration was
becoming involved with financier
Robert Vesco, who then as now
was living out of the country to
avoid prosecution on fraud charges.
Casey, at the req-uest of then Atty.
Gen. John Mitchell, met with one of
Vesco's attorneys at about the same
time Vesco gave a $200,000 contribu-
tion to Nixon's-1972 reelection cam-
- paign:- Later, when Casey testified
.for the prosecution in the trials of
Mitchell and former Commerce Se--
cretary- and Nixon fundraiser Mau-
?
rice Stans, he claimed he could not
remember many specifics. .
;With the defeat of Ford in 1976,-.
Casey's name disapp&ared from the
front pages and popped up only occa-
sionally in the business section. He
had returned to the practice of law.
and Reagan seemed content to have
:John-,Sears run his campaign. But
-early- this year,. just after Reagan
:had won . the - New- Hampshire
:primary, Sears was fired and Casey-
' was '1 .named -campaign manager...!
Currently heis director of Reagan's-
presidential ;transition team -in
_Washington_
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rrl-scts:ft.5'314
STATIN
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ARTICLE AI'? THE WASHINGTON POST
PAGIiLAW-- 22 November 1980
a. 4 Forel
4
doryT'.,.Bo'ar
,
-?"''
;?qd Robert G. Kaiser
? "Wahigon P,?itsfarr ,,vrt tem,
11:-trresideritgI4CMoriald tetgih. met
-fa the fiat! tilifil'idstdirclaii with his in-
terim foreign ...policy. advisory board, a
high-powereclehipartishn group that in-
-eludes loin-ter:president .Ford and sev-
eral ?other': natrrintir-figureS.- Missing,
;.howevere.Was George Shultz; a former
secretary of the treasury, who-bas, been
prominently mentioned as - a possible
-seeretary'.of state ,i4.-...the..,Reagan .ad-.
ministration. ?'
Shultz is presiderit':or the ,,Bechtel
Corp. in San.FranciSce and was unable
to, attend. the Washington. meeting. be_
..ki,a7.;"?.4eield Ntejt. Atai ireafit",-19
?-?ettelltecipictetirte,tfreeti rig,
went, -en foremost ot the day
cloSetredo4S::ineltlie,Siinate and
Jpeadlitterteni
hinl?toit,1110;?: ? - t t.
. ? il4=0. ? = WOMB: xere, enn.
P , he?particrpa ? fat escribed.
the.;enieetitrge'AS-'`,';,k
'Hemet. A. 'Kissinger, Alexander
Haig, Caspar W. Weinberger and Dan-
Rrimsfielcir.Sens:- Baker; -1-tenrrM.
? jacksoq;(neWash,LeePtliegovier (R?::
. Andllicha4d ,Storq
GiJWilliar Th. Cfrnent,! farmer
aiihasator. Annel-ArinstrOng'' and.
John McCloy, and advisers Jeane Kirk!:
-.....,patrick,,EugeneesRoefow. ide'Edwaral
Bennett, Williams_ -= '4 =
Top Carter a,iministration .officials,
including SecretarY::.tir State Edmund
Muskie, Defense' Secretary Harold;
' BrOwn ? and CIA chief Stansfiekt
- Turner .took :Fart in portions of the'.
: meeting, provraing-. briefings on current:
defense, toreigi policy ancleintel4ence-
,, sitnations her the-: Reagent -:'-group.,?eee
Glige BUSg joined aid grolit4.qr about
. head-
:,('Neaters yeeterclay. IngtpingliSt before
'Ijeaian rot- for:;,cL?ifOrni#.:-'7:4;!-''?
i3Ord/Vi far ri
'(3aseS',.1vld reportersIe ?
t pres-
rit-eleCt .Streesed,';?his.Intenteto carry.
Eitpartisan. foreiga-Poli'djk.'
n .e
Okineatit'fte CO PC
4:41reforeie-ri: jolicyevroblems
-e:andr.opportunities::that.ewill";face
-
'mew administration. '].he idea, he said,
the committee to come up with'
a---.set of recornmendatiorwand
evaki-
..atiuns.o various. 5ituatipps,; in a .report
? that cart be presented to Reagan shortly
b?e the inauguration inI?January.
group, he said, would meet again
early in December. -
Kissinger said, "Almost every ?topie
you can imagine was discussed." Baker
celled it "the most substantive meeting"
e he-had ever . seen' in his .14 years hr
? the. .
Asked about his -own role, Eissinger-
..' reiterated' that he would he available
?, for special,assignment and advice but
i.,that,?rt: don't expect to play a full-time
'role" in the new adrni tration? ,
? Asked what he thought about reports
..that his former deputy and ex-NATO
commander Haig .might become secre-
tary cif' State, -KiSsinger said. Haig was
a.--,-"distid;LiiShed-,Anierichn and 'would
%be' an outstanding selectiOn."
Hai _arid;.Shultz.:are the two names
;Allot commoply ?mentioned for the
state Department poste-though Reagan
e twin ,saicl,Yesterclayrthat no: decisions
;,.have. beeitrnade yetpri, his Cabinet epe
ee e.4,4 tit - ? ?
pointments.. Shultz .reportedly has teat
friends that he has some doubts about'
taking the:post, if offered, and in an in,
ter.vieve with:Ilia Boston Globe ThUrs-
claY,ette eclme;.vie.dged that, if he had
.any differenceS with Reagan, they prob-
ably lie: ire Middle East policy_ eez.-.,
? Some participants at yesterday's
meeting also said they -detected a no-
table lack -of -.communication between
Tower, who wbuld like to he secretary
or defense; and Clements, who report-
? edly would . like to-see Tower .remain
as incoming chairman of the powerful
? Senate.Armed Services Committee for
the. next Congressa was reported yes-
. terday that Tower's chances of getting
the Pentagon pest are now not good..,
I Later in ,the day,' Reagan, aboard his
'planer en- r' antes to: California, also
seemed to indicate, according to United
Press International, that Tower's status
in the Senate would work against his .
being appointed: to. the defense post. .
"I think the consideration with any-
one who is In the legislature would
have 'to be whether you would want
to -reduce" the ? Republican majority
there, he told reporters. Asked if that-i
.would apply to Tower, Reagan replied,
"Yes," He said he would take the Senate..
*situation into.account-when making his.1
-appointments_
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An/CU ItARZ:0
O
PAOrt,
NEV YORK TIMES
21 NOVEMBER 1980
eport to Reagan A t'd& Urg.s
nding
Many-Res. frictions onU,5, Spyina,
_ _ 4
---- By JUDITH
_espeeetoTherievvYorkTintes ?
WASHINGTOW Nov:" 20 A: report
prepared formational security-advisers to
President-elect Ronald Reagan 'calls for
'sweeping changes:in intelligence prac-
tices and the elimination of many restric-
tions on the intelligence commtmity.
The 97-pagereport, prepared under the
auspices. of. the, Heritage Foundation, a
, conservative research organization here,
concludes that in order torevivethe na-
tion's intelligence capabilities, "agencies
; must be rebuilt through a combination of
. legislationeexecutive orders, administra-
tive actions and Presidential leader-
ship." It suggests separating clandestine
operations from .the Central Intelligence
Agency, hiringenore and better-trained,
agents; establishing- competing sources:
of intelligence analysis and changing
. laws that restrict intelligence activities.
, The report characterizes the current
intelligence apparatus as being "in the.
worst condition since before Pearl Har-
bor" and blames-not only President Car-
ter but also three previous Administra-
tions or politicizing intelligence gather-
ing and analysis. - ?
Officials zetressed: that key Reagan
aides had only begun to think about how
intelligence should be reshaped, and the
report, they said, is only a tentative list of
ipptions open to a Reagan administration.
As one indication of the tentative na-
ture ot,the options, 3. William Midden-
dorf, former Secretary of the Navy and
acting head of the transitian's task force
on intelligence, and other members of the
task force, met today for the first time!
wjth Adm. Stansfield Turner, Directorof
'Central InteWgence.
? Hnwever,mfficials close to the Republi-
Can transition effort in intelligence said it
was likely that several of the proposals in
the report would be pursued by a Reagan
administration: ancl the new, Republi
,.majority In the Senate. - 7,
The officials said that Mr. iittagan had
not yet chosen a Director of Central Intel-
ligence but thar William 3. Casey, the
_ .
Reagan campaign director, was known to
be the front-runner. Mr. Casey is known
to support a much more aggressive ap-
proach to intelligence operations.
Moreover, many of the report's propos-
als resemble portions of a now-dormant
legislative charter, introduced last sum-
mer by Republican Senators, that would
restructure intelligence agencies and
relax restrictions on domestic spying.
Many of the changes advocated in the
report are bound to be:resisted by civil
liberties groups, which have fought for
years for the laws and executive orders
that now limit intelligence activities and
protect individual liberties. Other struc-
tural recommendations are bound to bel
controversial, since they would require .
an overhaul of the current intelligence
scheme. They stern from an assumption
that the. organizational "setup is largely
responsible for what the report contends!
Is the poor quality of intelligence.
The report accuses the Carter Adminis-
tration of weakening American intelli-
gence "through mass dismissels of C.I.A.
officials and partial replacement of them
by inexperienced employees," a charge
that agency officials have denied.
, "Presidential leadership must play a
role in rebuilding our intelligence serv-
ices, which have not been so weak since
_Pearl 'Harbor, and can instigate r.ot only
-administrative reform? s, but alscipromote,'
legislation and give the intelligence cam--;
munity the moral and political supporti
necessary to fulfill its mission," the re-
port concludes. : .. : : i
ee
Many of the report's recornmendatiens'
, would not require legislation_ For exam-.
! pie, it urges the revocation of an execu-I
? tive order that governs intelligence struc-;
. ture and provides operational euidelines '
! and restrictions for the intelligence. agen-1
: i
ces. ,
. .. :1
: The report recommends that "Ian-
! guage training, as well as adequate mili2
Itary and political instruction" should be,
standard for agents.
. _ -
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///
;riCLT
THE WALL STREET JOURNAL
20 November 1980
STATI NTL
geagan Meets With Sen. Tower of Texas
As Contenders for Cabinet Posts Emerge
By TB! OTH Y D. SCHELLHARDT
2.'aff fif?por ter of THS WA LL STREET Jo ITRNAL,- .7
WASHINGTON?As Ronald Reagan con-
tinued to acquaint himself with the nation's
capital, leading contenders emerged for sev-
eral top Cabinet posts in his administration.
The President-elect,. held a -' half-hobr
meeting yesterday. with -one of them, Sen.
John Tower of Texas", amid reports he may
name the 56-yeareold conservative Republi-
can as Defense Secretary. ,
Associates of Mr. Reagan said other
front-runners for Cabinet positions include: ,
?William French Smith, 63, Mr. Rea-?
gan's personal lawyer and business trustee,
to be Attorney General:-
?Former Treasury Secretary William Si-
mon, 52, to occupy the post he held under
Presidents Nixon and Ford. " Reagan aid aide.s emphasized that the Presi-
dent-elect hasn't made final decisions on
any Cabinet appointments. "He hasn't
signed off on anybody yet," said one aide.
But they said he, is close to making decisions
on nominees to head the departments of De-
fense, ?Treasury and Justice. Others said
that former Treasury Secretary George
Shultz is the leading contender for Secre-
tary of State: - - -.?
Mr. Reagan has received a list of recom-
mended Cabinet appointees drawn up by his
19-member "kitchen cabinet," headed by
Mr. Smith. That group of close a.ssociates is
to rrieet again Saturday in. Los Angeles. Mr.
Reagan plans to return there tomorrow, and
thus will have further opportunity to discuss
Cabinet choices with these advisers. -
Mr. Reagan's schedule yesterday left lit-
tle time for Cabinet picking. Besides his ses-
sion with Sen.- Tower. the President-elect re-
ceived a national- security briefing from Car-
ter administration ordcials, lunched with
GOP House and, Senate members, paid an
unusual courtesy call on the Supreme Court
Justices, and held a private meeting with
Massachusetts- Sen. Edward Kennedy. The
liberal Democrat, who unsuccessfully chal-
lenged President Carter for their party's
presidential nomination, requested the meet-
ing. Last night, Mr_ Reagan scheduled a din-
ner with Republic= Senators and their
spouses.
While Mr. Belson spent a second
day wooing otfictai Washington, speculation
continued to mount on his Cabinet choices.
Mr. Smith, a trusted Reagan confidant, is
considered almost a sure bet as Attorney
General. However, his appointment is likely
to raise anew the question of whether a
President should select a personal and polit-
ical associate as the top U.S. law enforce-
ment officer. Most recent Presidents have
done so, but this sparked a controversy after
Richard' Nixon's Attorney General, John,1
Mitchell, was convicted for his role in the;
Watergate scandal,
. Mr. Simon, .who has worked hard for Mr.
Reagan the past couple of years, likely will
be tapped to head the Treasury Department.
However, the hard-driving, demanding man-
ager irritates some influentia.1 Republican
advisers to Mr. Reagan. Former .President
Ford, for instance, favors economist Alan
Greenspan over Mr. Simon for Treasury
Secretary.
Sen. Tower only recently emerged as the
likely choice for Defense Secretary. A pro-
ponent of a stronger U.S. military presence,
the lawmaker has been expected to take
over as chairman of the Senate Armed Ser-
vices Committee. If Sen. Tower is chosen
for the defense post, Texas Gov. William
Clements might name former Treasury Sec-
retary John Connally to his Senate seat.
Although Mr. Shultz is the rumored front-
runner to head the State Department, the I
Bechtel Group executive is reported to be.
reluctant to re-enter government service. .
Other contenders for Secretary of State in-
elude Alexander Haig, former commander ?
of the North Atlantic Treaty Organization,
and former Budget Director Caspar Wein- 1
berger. _ eee ? _
"Likely" or "most likely" appointees to
other Cabinet posts are emerging, as well.
Illinois Agriculture Director John Block is
viewed as a top contender for, Agriculture
Secretary. Under consideration for Secre-
tary of Health and Human Services is Eliza-
beth Dole, a former Federal Trade Commis-
sion member who is married to Sen. Bob
Dole (R., Kan.); for *Transportation Secre-
tary, Drew Lewis, prominent Pennsylvania ?
Republican and Reagan aide; for Commerce
Secretary, Republican Natonal Chairman
Bill Brock; for Interior Secretary. former
Wyoming Republican Sen. Clifford Hansen,
and for Energy Secretary, Rep. David
Stockman (a, Mich.).
Mr. Weinberger, another Bechtel execu-
tive, may be asked to be director of the Of-
fice of Management and Budget, the post he
held under President Nixon. And William
Casey, chairman of the Reagan transition
ofnce and a former chairman of the SeEiia-T--
ties and Exchange Commission. is the leaa-
ing candidate to be airector or me Central
InteBigene Agency. .
Today, Mr. Reagan is to meet with Presi- ?
dent Carter in the Oval Office at 2 p.m. EST
while his wife, .Nancy, gets a tour of the
White House residence from Rosalynn Car-
ter.
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THE WASHINGTON STAR (GREEN LINE)ji
O /N PAW;
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STATINTL
Appointment
Scoreboard
News reports published to-
day and attributed to au-
thoritative sources say that
President-elect 'Wepn is ex-
pected to nominate William
J. Casey as director of the
CIA. The Washington Star car-
red similar reports in its
Wednesday editions.
According to the reports,
including one in The Wash-
ington Post, Sen. John Tower
of Texas is a leading candi-
date for secretary of defense.
In addition to Tower, other
leading contenders for high
posts in the Reagan admin-
istration, as reported in yes-
terday's Star, are:
?Williaa E. Simon ?
Treasury secretary;
-William French Smith ? at-
torney general;
-Rep. David A. Stockman ?
Energy secretary;
-Caspar Weinberger ? direc-
tor, Office of Management
and Budget.
-Among those being consid-
ered for secretary of state are
Gen. Alexander Haig and
George P. Shultz.
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IRTICLE THE WASHINGTON POST
Cral 20 November 1980
Casey Is Reporte
or rectorship of
By Robert G. Kaiser
'and:Michael Ceder
Washington Fos; Staff Wrivars
William J,...Casey,.. who .helpecl,
run American e intelligence opera-
tions behind'anemY. lines in World
War II, is exPeCtecl io be nominated
to become the. next director Of the
Central Intelligence; Agency,.
au-
thoritatwe sources said yesterday.:
President-elect -.ROnald Reagan
met yesterday-with Sen. John Tow:-
er (R.Tex.), a leadir4 contender for,
secretary , of defense, but neither':
would confirm that Tower will be -
offered the. Peritagon job.
= '
Sources clOge t? Tower said laSt.,,
etigtht";.that ,thel.senatoesSeleCtinn
76-.9.:?.4efense'Seeretary was ? by ro
means certain:- Tower reportedly
.came away .:fromi. hie? meeting With
Reagan without any clear signal
from the president-elect, a; to his
prosPects
Some sources in the Reagan tran-
sition operation referred to Gen.
exancler M. Haig as a strong pas-
sibility to become seeretary otstate,
but sources close.to Haig said he
had , heard , nothing to. this- effect,
? from the ?president-elect .or his
aides. Haig has had no converse-,
? tions about the job with anyone rem,.
resenting. Reagan, these , sources,
A.Ilocating the joh.of.secretarY of
state now appears .-toabe the key,
to Reagan's, ,c4bittet-Ipuilding .f.
forts. l'here has been no s'nortage
of candidates. CaSey; who new is ex-
pected to go to. the, ciA,:icvant9t1?
infnrmedieurces- Saida
.Haig,.fornaer- Office..of Manatienient
nd Bncleet irector. Caspar Wein-o
berger, Milner :Treasury '!secretary
Siiriort,' former Texas
gov-
Ernor John B. Connally .and forrneta
secretary of state Henry A. Kissinger.
George P. Shultz, former Labor and
Treasury secretaryenas been mentioned ?
persistently-ails, the leading candidate
for secretary of state, but he repOrtedly1
has said he,,doigilok want the job and.
? that hirPoeition-on the Middle E:asta
as vice chairman, of the Bechtel doip:;'-
a multipational, constzuction,
rnight-pRORKIVARk179, 1101? :MI
hae- taken- Pi-isitiOn-
than Reagan did during the campaign.)
Sources in the Reagan camp said yes-
terclay that Shultz's statements should
be taken seriously, though the sources
did not rule him out as the nominee.
Sinion apparently has been elimi-:
nated by a_ decision ? all but fipal,.
sources say nominate him for sec -7
retary of the Treasury again. Kissinger
is.fiercely opposed by conservative pol-
iticians and groups that were important
-Reagan hackers in the CamPaign...Con.:::,
nally, according to sources close to him,
has apparently been ruled out as a
member of the Reagan Cabinet, in part
because of concern that he was tainted
by his 1975 indictment on charges of
taking an illegal gratuity in connection
with the raising of milk price supports
in the Nixon administration. -Connally
was aequitted. '
Weinberger, long a Reagan confidant
and a member of Reagan's gubernaT
tonal administration in Sacramento,
still may be in the running . for the
State Department, though Reagan
transition ? team sources say it. is more
likely that, he will return to the OlVIB.
However, informed sources say that
Weinberger does not want to go back.
to OMB; he could end up as a counselor
to the president with Cabinet rank or
in some other, role putting him close
to Reagan. Rep. David Stockman (R.
Mich.) is an active candidate for the
ONIB job, and is supported by many
of- Reagan's most ardent conservative
supporters. Stockman is also considered
a possible secretary of energy, though
he haS told Reagan transition . officials
that he would not take that post.
Reagan will meet soon, perhaps this
Weekend, wits the informal advisers
known as his "kitchen cabinet" who
have been weighing. possible :Cabinet
nominations. This group already has
sent the president-elect a list of several
possible nominees for, each Cabinet
post, with a tally of the votes each per-
son on the list received from members
of the "kitchen cabinet." ? ?
The Reagan camp has promised tO'
announce Cabinet nominees by the first ?
week of,December.,,4
N.
&aeries. Cloie: to-the Reagan...Camp
said yesterday. that Williarn' French
Smith, the president-elect's personal
.th di
other source saiclfhis prediction would;
be_ premature? ana perhapiacCtira te. j
e
S us'
On Capitol Hill, -membeN of Con- ,
gess interested in the Interior Depart-4
inent said they had heard three names
mentioned as possible secretaries: Rep.
Manuel Lujan Jr. (R-N.M.), Rep. John
J. Rhodes (R-Ariz.) and Gov. Jay Ham-
mond of Alaska. Lujan said last night
that he knew his name was beim,' men-:
tioned for the jobebut said he had not
heard anything from anyone connected
with Reagan:
Casey, slated to take over the CIA,
served under Presidents Nixon and
Ford as chairinan- of the Securities and
Exchange Commission, undersecretary
-of state for economic affairs and Pres- '
ident of the Export-Import Bank. Kiss
inger forced him- out of the State Dela-,
tartment job:.:?
Now 67, Casey worked for the Office.'
of Strategic Services (OSS) ? the.
CIA's organizational ancestor during ;-
World War H. He served in London.
as chief of secret intelligence in Europe,
with direct responsibility for. penetrat-
ing Nazi Germany with secret agents
in the waning days of the war..
Casey took overall command of the
Reagan campaign in February after the
candidate fired campaign manager
John Sears the day of the New Hamp-
shire
:. primary...,
A senior. Reagan aide disclosed yes-
, terclay that the new administration will
retain William Webster as FBI director.
; Webster was appointed to his 10-year
term by President Carter and career.
FBI officials- reportedly. were anxious -
that he not be removed by the new ad-
ministration. '
The possibility that Tower might be-
come secretary of defense has caused'l
concern among some Texas Republi-
cans, sources said yesterday, because
of fears that it would he difficult to
keep his Senate seat in the Republican
column in the special election that
would be required within 90 days of
his resignation. '
Reports that Gov. William Clements
would appoint Connally to Tower's seat
were denied yesterday by sources close I
to the governor and by Connally's ?
friends. Clements was reported ai angry
'at the suggestion that he would- par-
ticipate in a prearranged deal to put -,4
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41.11rTICIa,r iP
I'.1013.
Reagan Nears
Decision on
Cabinet Posts
? By Jeremiah O'Leary ?
Washington SW WI Writer
President-elect Reagan is believed.
to be close to making final decisions.
on four key-Cabinet positions by
naming Sen. John Tower secretary:.
of defense, William E: Simon Trea-,:.-
sury secretary; -John French Smith -
' attorney?general and William Casey.
?
director of the: 4- ?
---SInfrararrITritragan transition
team also said retired Gen. Alex- -.
ander-Haig is-fading -as a possibler,
choice for secretary of state and that
George P. Shultz is now considered'
to-be the fronvrtinner, there.; .
addition,:Reagan sources said;.:
Rep. David A..Stockman,
:rising rapidly-is a-candidate for en;',
ergy secretary and that Caspar Wein-
berger 'probably?carrhave
important post of: director of : the
Office of Management and Budget;
if he wants it. ?
Tower is the conservative
? lican from Texas who. is slated to
take over the Senate Armed Services
Committee in the new Congress. Si?,
. mon served as .Treasury. secretary.;
under President Nixon. Smith is Rea- -
gan's personal, counsel, and. Casey,.,
was his campaign director.
? Reagan has received the recom--.
-mendations. of.. the. Transition..-?Ap-?,-
- pointments-Committee, -headed- by.-
Smith. Although he-will have little,
time 10 study the choices of two or
three names for each Cabinet posi-: ?
tion. during his: brief Washington
visit, .Reagan. is-expected to make-
the final decisions when,. he return.s?
xto Californiabn Friday. Official an-
nouncements are not 'expected anal
? after Thanksgiving, but people-in
key positions at transition headquar-1,
ters here believe some of the nomR
?? nations -have been. settled for some',
tune - it
Retnemberi:nothing is final until
-
the governor. ?makes his tchoice,7-,,
warned one transition official.
But several officials close to the
decision-making process believe the'
Treasury, defense, justice and CIA:,
? .E.)sts are fixed in concrete.
- Simon. and7-Smith- are consensus
Candidates because Reagan
'Mates . do nothelieve anyone else.:
was seriously considered for Trea7..
sury and justice. In both cases, there,.
are cither_nagstort;_thlists:Eiven
to Reaganibutrio. ohe-c4. be. foal'
tIOCIRO
.; chance. Simon;.whnserved on Rea-
gan's Economia:Coordinating Corni%
'an
WASHINGTON STAR (GREEN LINE)
19 , NOVEMBEH 1980 only 'other person under consider-
ation tor tne LL-Y post is said to tie ,
1 a fofmer deputy-attorneyTe-r-al '
anif-ambassador to Y ugoslavia,
Launrree Silberman. '1 he Clictrarig-
-tiOriteam is headed by Saberma_n,
-a man Who is-TcTitlfright to thepoint
',, --otabraStverieSS7SOrrie
lie 'Ie Ye fliie
for the aII:im ortant post o ep y
Err7tor of CIA under Casey.
- There were some rumors yester-
day that Sen.. Henry Jackson, D.;
Wash., might be in the race for
secretary of state, mainly because
his one-time aide Richard Perle ap-
Ireared suddenly to be on the transi-
tion teams for both defense and
state. ater, officials explained that
there were undisclosed reasons for
' moving Perle from the defense team
? to the state team and that there was
no significance-to-the shift in terms _
of Jackson.:., ?.' - - .- :.?-? -- - -
-.- Shultz reportedly had - been- the
subject of some controversy in the
Reagan camp because he does not
' :see eye-to-eye- with Reagan's top
...echelon on Middle East policy. The? ?
?? Reagan insiders are said to be -
7 pressing for a tilt toward Israel
:. ? while Shultz is considered to be clos-
,
.. :er to the Carter position of extend-
ing the hand of friendship 'almost
-*equally to- the Arabs and Israelis. .
? Former NATO commander Haig?
? who was White House chief of staff ,
' under Nixon in the las/ days before '
? Nixon resigned, has made it clear
that he is willing and eager but his
? star is not believed to be in the
? ascendancy.
- There have been recurring re-
ports that Rep. Stockman was slated
for the OMB job in the White House,
but Reagan sources said the 34-year-
old Texas-born Stockman is being.
? viewed as a natural for the Depart-
ment of Energy. This is one of the
,departments Reagan said he intend-
ed to abolish as part of his campaign.
promise to cut down the cost of goy-
,? ernment and the weight of govern-1
r- mental controls. _ : -.-:-... :
? But there are many functions of
'-- the Energy Department that would
- have to continue under another ban-
?'_ner and Stockman has been ex::
tremely impressive to. Reagan's
7 inner circle. '?? :
4 ..? ,.'.Stockman .is a Michigan State
? graduate who went on to Harvard
. Divinity School and the Harvard In-
stitute of Politics before becoming
' ? an aide to Rep. John Anderson. He-
. , is-al former executive: director of -
? House Republican Conference
' :and has served in the House since
'? his election in I976. : ' - ',.- ?.;,:?.--? ?-
? --Weinberger, a 'veteran economist
? ? and businessman who is associated
with Shultz in the Bechtel Corp__
Smith is regarded as not ambitious
for a Washington job, even the post
of attorney ? general, but he is as
trusted and close to Reagan as
Charles Kirbo has been to President
Carter and can be expected to accept
any job the president-elect asks hint
to take. ? . -.4?-- ?
? There are .mixed sentiments at
transition headquarters about the
decision that might take Tower out
? of the Senate, where he would be.
? chairman. of the Armed. Services
Committee and put him at the top:
of the Pentagon.. Some Reaganites-
. are enthusiastic about the purported,
strategy-regarding Tower, a former
Navy- enlisted man with a long in-
terest in defense and national secu--
rity ,affairs ?
Those who,,View,:Tower
dimly asi
secretary of defense do so because
they say Reagan has no need to ce-
ment his support for increasing the
? nation's defense capability with the
...Senate committee. Even Democratic
.Chairman John Stennis of Miss's:. ?
-'sippi, who loses his job to the rank-
ing Republican on Jan. 20, is on the
? same wavelength as Reagan when
it comes to buttressing national de- ,
? fense. There?are some who are ex- ?
pressing concern that aging Sen... -
Barry Goldwater, R-Ariz., who is in
line for the chairmanship, might be
an occasional problem for the Rea-
gan administration. But they say
? they also see a chance that the chair-
manship might- devolve upon. Sen.
John Warner, R-Va., art ex-Marine,
a good friend of the president-elect
? and a former secretary of the navy::
? The speculation is that the Tower
'deal was worked out last weekend
at Pacific when Gov,
ham Clements' of Texas visited Rea-
gan there. Reportedly, the game plan
would be-for Tower to resign in
order to accept the nomination .to -
the Defense Department. ?
- Thereupon, Clements would ap---.
? point former Gov. John B. Connally -
to Tower's seat in some certainty:.
that the erstwhile presidential can- ?
didate ,would. surely ? win a special
election fora six-year term within
the year against any Democrat
,The report that Tower was headed'
-for the Pentagon came first .from?
? columnists Rowland Evans and Rob-
ert. Novak, along with -the report
that Connally was slated for Tower's.
? seat. In Philadelphia at a conference
of GOP governors, Clements said,"
"That's the nuttiest thing I've ever
jierl? ? -
: ? But a -congressional sonrie--told..
:.theAssociated,Press he wouldvouch:
'for. the whole' scenario. .
was an enthusiastic
as
7(11"The Cr2rdiiffrig World ar ll, has
?always been the front-runner to suc- -
()MOOG 01000241811t
t e post ut can be expected-
to take on thejob if Reagan asks
him to do so
STATI NTL
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A.F,T I C f_jf. AFI'L;sh.eal
THE CHRISTIAN SCIENCE MONITOR
ON PAGg. 18 November 1980
Turnet to be replaced at CIA, Reagan
sifting five names
Leading contenders: campaign chief.
Casey; ex-ambassador Silberman?:
,
By Stephen Webbe ?
Staff correspondent of The Christian Science Monitor :--
- ? . " Washington
Convinced -that the .nation's intelligence capability has
sputtered in the -last four years,:President-eleet Reagan will
fire CIA director Stansfield Turner and replace him with one
of five men; according to a well-placed source here._
The contenders for the nation's No. 1 intelligence hot seat,
according to a well-placed source, are: David Abshire, direc-
tor of the Center .for Strategic and International Studies at
Georgetown University in Washington; Ray Clime. executive
director for World power studies at the Georgetown- Center;
Laurence Silbertnan,;a;former ambassador to Yugoslavia;
Richard Pipes,a Harvard professor of Russian -history; and
William Casey; chairman of the transition executive commit-
tee in the office of the President-elect.
Those' reached by, the Monitor declined to Comment on '
their possible selection for the job- that Admiral :Turner has
held since 1977. ? , . - e
The front-runners, this source asserts, are Dr. Abshire,
Mr. Casey, and Mr. Silberman, while Professor Pipes is "a
marginal candidate.".-c
Some-- intelligence community ' observers. regard
Silberman as the leading contender for the CIA directorship.
A lawyer and hanker, he served as deputy attorney general
from 1974 to 1975 and as ambassador th Yugoslavia from 1975
to 1977. He is currently coordinating the transition at the Cen-
tral Intelligence Agency and already has visited the agency.
. Other observers believe that Casey is equally likely to be
qypointed to the post. A lawyer who fashioned Mt. Reagan's
succes.sful Campaign, he served as chief of intelligence per
ations in London for the Office of Strategic Services (OSS) in
World War IL' He has had no intelligence experience since his
days with the OSS, the forerunner of the CIA. But one source
says he has maintained "extremely' close contact' with US
intelligence circles; Casey was appointed to head the Securi-
ties and Exchange Commission in 1971 and two year later
became undersecretaryof state for economic affairs.' '
Although one analyst claims Abshire "is very well quali-
fied on the scholarly' end of inte1ligence,7,116.says he would
nonetheless he.f*very_surprised.if he were to come in first.",
This view seems to be prevalent among intelligence commu-
nity observers. One such observer went so far as to charac-
terize the professor's selection to the CIA post as "out of the
question" and "wholly unrealistic."'-:' ?; -
Abshire, who esdirector of foreign policy transition for the
incoming admitust-ation, is co-editor of :Washington Quar-
terly and a formes assistant secretary of state for congres-
sional
That Pipes is being considered for the CIA post surprises
some, but it is pointed out that in 1976 he headed the so-callecLi
"ft tearn"'of the Foreign Intelligence Advisory Board, which
produced a more somber estimate of Soviet strateg
aeriC" iik-RDP91-00901R000500010002-3
tivesANMPOurdPVIgkstieffele
o be k
. ?
- ? Although accused of being alarinist, bard-liners Pipes and4
associates declared that the Soviet Union was not just striv-
ing for strategic parity with the United States, but also for
nuclear superiority: Pipes; author:of:Revolutionary Rus-
sia' and "Soviet Strategy in Europe,'.7 is a former director of I
Harvard's Russian Reseal". ch Center.
e'T.I1 deliberating on a new CIA chief, Re:agart and his advis-
ers are expected to give earnest consideration to Dr. Cline,,
who also spent his war years with theOSS. An author and
lecturer, Cline served as deputy director for intelligence-at
the CIA from 1962 to 1966 and later as the director of the
Bureau - of Intelligence :and .":.Research.,.at the- State
Department - ; ;t. -
? He is thought to have been somewhatmiffed when the CIA
directorship went to Richard Helms in 1966. His contacts with
and interest in ? Taiwan,. which date from his days. as
director of the US Naval.Auxiliary Communications Center
Taipei, might not sit well with the government of the Peo-
ple's_Republic of China in Peking, some feel. Reagan, how-
ever; is not expected to defer to the mainland Chinese in the
selection of a CIA boss. : '?
.; Although Turner reportedly wanted to stay at the CIA,
. there apparently never was much chance that he would be
able to extend his tenure there. .
. "He came in at a bad time in the history of intelligence,"
Says one source. "But instead of improving it, he has let it,
languish. He has left us with an insufficient capability in in-
telligence, and I think that's a very widespread feeling. It
certainly is in the agency.'"
.ThisSOurce adds that, to a degree, Turner enOneerecl his
'own downfall when he fired or retired. 'practically all the
experienced people in the clandestine side of CIA." _
Adds another source: `Turner is an extremely smart guy,
,
but his problem was that he had developed his own technique
of institutional reform which worked brilliantly at the Naval
War College, where he fired all the dead wood. The agency
had already been through all its traumas and did not need -
surgery.It needed tender; loving care...Itwas a tragic thing,:
in
ic objec-
a
. _
Approved For Re I eas ellgoriONNOL.-1:pARROW64--rd Mr' ROO
By LAURENCE McQUILLAN .
-; Washington. (News 'Bureau)--T-Presi-
dent-elect Reagan plans to inform CIA
;Director Stansfield Turner next week
'that he will nominate someone else to.
idirect the nation's intelligence-gather-,
ang operations, sources close to the
Reagan transition team said today.;:
?
! Adrre,Turner was President Carter's
second choice choice for the CIA post four
iyears ago, after Theodore Sorensen, a
'former speechwriter for.John F. Ken-
nedy, asked that his name be withdrawn
;from Senate consideration. ? ;
Sorensen withdrew amid right-wing
[anger over alleged "security viola-
,: e ?
itions" in his 1965 book on Presideni,
?',Kennedy's years inthe White House.
Among the possible candidates to
.replace Turner and his deputy, former'
'Ambassador Frank Carlucci, are Vice
Adm. Bobby. R. Inmaa, who now heads.. ,
,the National Security Agency; William
;Hyland, former deputy director of the
!National Security Council and former
head of the State Department's Bureau
of Intelligence and Research during
:the Kissinger years, and William .1. -
Casey, Reagan's campaign chief who.
was a top official of the' old Office of
'Strategic Services during World War
? IL ? ? _I.:,
.; CASEY..., HOWEVER, has told
friends he does not want the CIA post ?
? According to CIA sources, Turner
;has no plans to submit his resignation.
:There were reports that he planned a
low-key but intensive effort to save his
ijob when the President-elect Comes to
.Washington next week.' -
? ? -? ? ? ; '-? - I
" Unlike -a new President'0,.. cabinet I
,choices, there has been no clear-cu
'policy on whether the tenure of a CIA
'director coincides with that of the
President who names him. 11rever,
the director does serve "at the pleasure
of the President
After Carter won the 1976 election,
.there was some talk about keeping on
,then-CIA Director George Bush, novi I
'Reagan'S vice -president-elect,-- but it
.was thought to be merely a gesture of
? courtesy toward Bush. i?"?- - ?
? As for Turner, "there is no vir ay he'll.
Ap p rovOitrai: keliad-Wq!/01#0C
4
...
r _
Stansfield Turner?may be replaced
_
THE PRESIDENT-ELECT reported- '
ly will deliver the verbal ax next week .1
when he visits CIA headquarters in: .
Langley, Va., for briefings. Turner'sj
only hope of saving his job, in the view,1
of most observers, is to try to convince-
Reagan Abet the job should be above
politics and the director should not be ?
replaced with every change of administ- ?
, I
ration: a ? : . ? - ?-? -_ - ? i
. Turner, a Naval Academy classmate. I
of Carter, has been lobbying privately
for the past few weeks to keep the job_
However, he has little support froni
!two important constituencies?the Pen-
tagon, where his policies have some-:
times drawn wrath and veteran CIA
, . ;
:staff
.: In other developments, the Reagan:
transition headquarters here today re-.
'leased the President-elect's schedule
for next week----when he makes his first
yip to the capital since winning the
;election. . ,
- _
, ,
I ?
HE FLIES FROM Los Angeles Mon.:
day night and the next day meets with,
GOP and -Democratic. congressional'
leaders. Reagan and his wife, Nancy::
meet with President Carter and his
Wife, Rosalynn, on Thursday - at the
White House. - . : ? ? .. - --...- -.:- , - 1
' Reagan's first CIA briefing v,%ill be
.on Wednesday, with a follow-up the'
IntOr9ffocOrtRtfoatlee
? . i ' . . e - P 7 . -- - ? ? .
- ,
. : .-I-:71. '?.! .? ...".t...11-1, ::..t:t.-,:iA?n-r.: :...:'; 'ft.T--- I :......? 4. ....,--,--_: W
02-3
Ff 1\17 I e fs",t?
P91-00901R
NJIN
47r ',.^)1LLARD AVENUE, CI-e/Y CHASE, MARYLAND 20013 656gykr
INTL
FOR
PIROGRANI
DATE
SUBJECT
PUBLIC AFFAIRS STAFF
Independent Network News
November 14, 1980 11:30 PM
STAIION
CITY
Quotes Former Directors of the CIA
WDCA TV
Washington, DC
BILL JORGENSEN: Now the business of building a new
Administration brings the Republican economic brain trust to Los
Angeles this weekend. These 14 experts will wrestle with details
of the Reagan economic plan, deciding how to make it work.
Reagan says he'll be in Washington for two days next
week, and the goal is building bridges with Congress and visiting
his new home which, of course, is the White House.
STEVE BOSH: Bill, in those meetings this weekend, the
Central Intelligence Agency will be a priority discussion. The
recent efforts to tighten congressional controls on the CIA will
not be looked upon favorably by the Senate Intelligence Commit-
tee's new Chairman, Senator Barry Coldwater.
And former directors are saying the very same thing, as
we hear in this report from Ford Rowan.
FORD ROWAN: Several former high officials in the
Central Intelligence Agency predict that covert operations will
escalate under President Reagan. Covert actions were curtailed
several years ago after it was disclosed that the CIA had plotted
assassinations, experimented with drugs and spied on Americans.
Sources say that under President Carter's CIA Director,
Stansfield Turner, the number of covert missions has been modest.
But William Casey, a top Reagan adviser, is expected to push for
revitalizing the CIA.
Former CIA Director William Colby said there will not
be a recurrence of abuses but he expects covert activities will
increase.
OFFICES APAratiti Ear Rektasea200 1 LOSe EC 1A-RDP94)-009111R00050
10010248IPALcmEs
Material suppSied by Pado IV Reports. Inc. may be used for be and reference burPoses onV If may not be rebrOduced. sOId or putAicly demonstrated os ekhirNted
STATINT
APP.r9Yegi-Far Release 2001/03/06r1gA3IRRElkly-W1 R00050
ON FA( ,A 11 November 1980
. ,
eagan visers
?":7 7
ersee ransi,
=- - By. Michael- 'Ceder
....: .... : Wash.Ingsoa P.o.3i Stiff l'Airittc.
: iresident-elect Ronald- Reagan's-ad-:
\risers: have divided the govern men t in to'
five. broad CategOiii-C'aridl'aier'abOUt. to?
name coordinators-tO otrerSee the trans-7
fer: :of- power - itr- each, aides Said YeS-..
,terday. These coordinators will brOvide
ilasion between the Reagan hierEuthy
ana"small working team's' to .be placed
in -COining days in all department.; and
agencies in the' eieci:itive' branch:: .7 ..
-- Sources' in theRiegari-eeirfOsaFtlia0
EliiabethDole; a-former Federal?Tracte,..,
_ .___..... _
, commissioner and the.'AVife?-di-Sen: BOW
_Dole.I(R-Kan.),..,wi,1 be:coo. rdinatorffon-
I
"hurnan resources. Loren Smith, an a...e.,:,
' sociate professor of 'constitUtional
- at Widner University and the chiefn
- house counsel of the Reagan campaign
(? comMittee, will coordinate teams work
in on federal legai and regulatory agen;
. Richard-,-M: Fairbanks,. a former ae,
sociate director of the domestic council
in the Nixon White House, will be co;
ordinatdr-for- reSofirces' an'd develop-.
_ rneht, an area that encompasses the de-'
.partmenta of Energy, Agriculture:and
Interior. Economic affairs, both domes;
tic and international, 'will' be coordi-
nated by Stanton D. Anderson; awash
ington _lawyer who-. is --keldeputy ., trr ,
,Reagan political; aide; William:' E. Tim- ,
. mons. David -Abshire, former --assistant
?
secretary of state during the Nixon ad--..
..
ministration, will ',coordinate efforts' df
-threeteama in the national seeurity ar-
ea at the departments' of Stateand De-
fense and ' then, Central'n Intelligence
Ageiiik-''''fi? '..----..7.4,'", ---.1:.' '''.---.7-'-::?'!;.t.''''':;-,..';'..::
'? Isl'ho ' a nuiriber of?the.-"naptainer
of Ihe'special'I,vOrkfrtgl:teainsi that will
.actUally , move into thee departments
have not -yet been natned,`sources say ,
that two key appointments.' in the na-4
.tional 'security at ea are firm. -
William Van Cleave, a fornier Pen-,
lag,on official Who- Served 'ea Reagan's
senior defense adviser during the cam-.
ppipnnwill head the team moving 'into
the; Pentagon. ? .
Robert G, Neu-Mann, former ambas;
`seder 'Afghanistan -and Jerdan and
curientlY at'-Geor,getoWn- University's
Center for Strategic .and International
'.Studies,' will head the State Depart-: -
rnent ? working team... -
,. Though no captain has been named.
for the CIA team, sources say Reagan
campaign director, William J. Casey is
certain to play a major role in the work-
Mg of this group. Casey, who was a Eu-
ropea.n intelligence specialist in the
World War II Office- of Strategic
.
.vIces, is- also said to be a "reading pos-
sibility for CIA director in the new ad-
ministration
Also in the national-Security picture
asif,,4ii:)e.slit, is Richard V. Allen. Nu-,
? rnerofis Reagan advisers say they be-,
lievejliat the longtime senior foreign. '
policy adviser to the president-elect will:
be narned to the key post-of .national
security adviser inthe White House; al-
-though no final decision has been made.:
That post is currently held by Zbig-nieW
.Brzezinski and was formerly held by
Henry A. -ICissingef: ? :
!Allen reSignect:ini the final days of
? the camiiaignafter -a newspaper article
suggested ,that he :had used past gov-'
ernm'ent positions for private gain. But
Reagan: said: reeently 'that those alle-
gations 'had' been ,lonked into; by his
ovarstaff and other newspapers, .%ntl:
nci.evidence .of . wrongdoing had been
fotnidnAt- the same.time, Reagan gave;
? a-stiong,.-.yOte- of -confidence to Allen.
-Sources- saY-,-that-the official public
Rife-- coordinating:
.weelc.' These
?Minis ',itress., that; the five : aPpoint-r-
: qnean' that those-
Viduals- will -necessaxily wind .up with
/a ? Ul'AteR
? _
Approved For Releas
Lai
The role of these coOrdinators, as ex-
plained by Reagan's aides, will basically
be to serve as a funnel, through which,
detailed information developed by the
working teams will be passed on to a
newly created interim office of execu-
tive branch management. That office
is to be'run by :Timmons, who is also
deputy director-of the top-level tran-
sition team named by Reagan on Nov.
6, and it will play the central role in
managing the changing -of the guard_
In terms of the-practical effect on
the bureaucracy, however, the keY role
is apt to ,be played by the small working
teams- that go into' each department.
Aside from a team captain, sources say,
each will-have specialists on budgetary
affairs, policy, personnel! and congres-
sional relations. ?
These teams will not be in a position
to implement any changes before the
new administration comes into office
nor are they meant to develop candi-
dates for-top-level jobs in the new ad-
'ministration. Rather, officials say, they
will identify positions that-need to be
filled and perhaps identify people- who
need to he moved out of existing job;
because of policy, differences. -
These learns- will- look at the bu-:
reaucratic structure to see what, if any-
thing, can and should be changed. They
are supposed to find out what decisions.,
the Carter administration will be mak-
ing in itslinal weeks and where variotis
,Sgencies are in the preparation of the
next federal budget for fiscal 1982.
Ultimately, officials.'SaY, these teams
-will be- drafting: position- papers that
are meant to define issues and problems
that the incoming administration may
soon be confronted with, to outline the
? principal...policies that have been fol-7.
lowed in the departments and to lay
;out options for future decisions. The
idea, if it works properly, is to allow.,
the -new administration, to :"hit the
:ground running,":ys Reagan officials
de-
'scribeiL..t
00901R000500010002-3
Approved For Release 2001/03/06 : CIA-RDP91-009
LONDON IT1TLY -2:LEG2APH
10 November 1980
alf,AGAN'Ai D
T E RUSSIANS-.
By ROBERT MOSS
President Carter would almost
certainly call in Mr Reagan
THE Reagan landslide in
the United States has
posed an acute dilemma
for the Soviet leadership:
how far shouldthey go to
take advantage of the
lame-duck period of the
Carter Administration be-
fore the new President is
inaugurated on Jan. 20.
Arkadiy Shevehenko, the lead-
ing Soviet defector, and a
former senior official at the
United Nations with whom I
spent part of election night
in Washington, makes one
? disturbing prediction.
He believes that the Russians,
no longer inhibited by the
American elections, are likely
to invade Poland in the near
future. .
By challenging the Communist
party's monopoly control of
social and political institit-.
tions, Poland's independent
trade union . leaders have
posed a- threat to the ruling ;
system that is perceived in ;
Moscow as a challenge to the I
internal security of the en-
tire Soviet bloc. ? -:
Mr- Sheychenko's analysis; is
-supported by that of senior
officials in . France and
Britain.
Yet thea price of a Soviet in-
vasion of Poland is likely to
be vastly greater than that
of intervention in Czecho-
slovakia in 1988.
Though Mr Kania, the present
Polish leader and a former I
State security officer who isi
said by Western intelligence!
experts ? "to ? have worked'
elirsely with the K GB. would
_ probably be prepared to pro-
- vide a pseudo-legal pretext.
for a Soviet invasion by re-
questing "fraternal assist-
.ance," the Polish people?as
they have shown in the. past
?would mount a heroic re-
sistance.
Sweeping sanctions
International protest would
range from sympathy Masses
in the Vatican and mass de-
monstrations aa by Polish.
Americans in Chicago to
attempts to impose more
sweeping economic sanctions
against the Soviet Onion
than have been applied in
the past.
Approved For
in order to present a united ?
face to the Rusaians.
Worst of all, from the Soviet I
viewpoint, a move into I
Poland in the coming months '
would be widely felt to justify
the demands by Mrs-Reagan
and: his advisers for.;urg,ent
-rearmament, broadening still
further the vast constituency
he is now seen to command
in America and encouraging
the new Gongressin which
athie Senate will heeuncler Re-
publican control -.7 to vote
dramatic increases in the de-
fence budget, ... ;
. . . _
These' are all.. reasons -?wliy
some members of the Soviet
Politburo may still hope that
events ia Poland Call be con-
tained by methods short of
armed occupation until after
Jan 20.
Part of that calculation may
be that an invasion of Poland,
or a similarly provocative
move, after the Reagan- inau-
guration might serve to de-
monstrate that, despite the
campaign talk, the new Presi-
dent would be no more cap-
able than the previous one
of Vetoing Soviet actions.._;
For the moment, the Russians
are seeking to take the meas- If there should be a chance for
ure of Mr Reagan's e.ntotin a separate deal with Cuba. it
age as much as possible. As may well be that (as in the
early.: as last spring, senior case of Nixon and China) a
officials at, the Soviet Em- conservative American ad-
ministration will be in a bet-
ter position than a liberal on-
to exploit it though secret
bilateral contacts.
American acirninist
provide renewed 5
exile groups seekin
throw of the Cast
and may consider
an economic block
Informed sources i
community in Mi.?
that Dr Castro is
circumvent this
signalling to the Re
that he may be
loosen his ties t.
arid reduce his st
-guerrilla?. groups in cemtai
America in return for the
opening upeof normal diplo-
matic and economic relations.
The extent to which Dc Castro
is able to make any indepen-
dent overture to the
Reagan administration, given
his country's economic
bondage to the Ruaaians, the
role of -Soviet advisers (and
K GB agents) in Havana, and
the presence on his island of
a Soviet "combat brigade"
that may be used for internal
security purposes is debat-
able. ? -
Stick and carrot
lint he will be offering Mr
Reagan a Stick as well as a
carrot: the threat that the
dumping of refugees of
dubious backgrounds into
South Florida this year could
be repeated and that the con-
tacts that Cuba has long
nourished with militant
groups among the black and
Hispanic minorities in- the
United States and Puerto
Rico could be used to trigger
race riots.
STATI NTL
baesy were cultivating some
of Mr Reagan's top foreign
policy aides:.
Now the veteran ambassador.
Anatoli Dobrynin, and Mr .0n a broader front, the maa-?
Pavel Bessmartmlt, his 111in- agement of America's deal-
ister-Courtsellor, the high- ings with MOSCOW will now
ranking KGB officer respon- be moved from a group of,
sible "asfor opening " back
channels' to -the American
leadership; wilit, have their
work' cut out.
-Cubans' move -
The Cubans, significantly, are
also putting out lines to the
Reagan camp.
President Castro is well aware
that the period when he was Leading contenders for the
allowed almost a free- hand critical Jobs of .1\ational
l o.:7 and
to make revolutionary forays ' Security Counsen
into Central America and
Director of Centrar-Tntelli-
_ '
Africa is over. gence are (respectively):
The tough talk coining front ..Prof. Richard Pipes, one of
Mr Reagan's Latin American
America s eading Soyietolo-
gists arid a key ;ince on the
adviaers, notably Prof. James
? so-called "Team-B t ut
Theberge and Dr Roger
RVetr ;0011081con?16h?ClitIgrpti 0500010002-3
s ou e icen o am" est so o e- iiay
Cuba must have prompted ? spending aril?c-apabilitie3 in
fears in Havana that the new 1976 TrurC.F13-il1Gsey, head
advisers (some of them asaa-
dated with the radical Wash-
ington think-tank. the Insti-
tute for Policy Studies) who
were usually wilting to be-
lieve the best about the
Soviet leadership to a new
;team of experts who have
been notably more acrate
in their predictions.
Another candidiate tor the post;
of Security Advisor is Richard'
Senate's backing ?
The consensus airtong Intel
professionals in
--Washington is that the CI A1
can only be successfully re-? ;
organised?at .las-with the'
support of a sympathetici
Senate.
One of the many minefie.lcIal
- ahead involves Soviet under)
. -_cover-activities imthe United
-
? States.: ?-a --
A majortSecurity. council scan-
dal was brewing up in Wash-
ington in the: last months
before the elections, involv-
ing more senior figures than I
-David Barnett, the
former CI A officer who was I
exposed as a Soviet mole. I
There-'nave_.been charges that!
the Carter administration has I
sought to ainhibit ? F RI in-
vestigations of cases . like
the possible betrayal of an
American agent in Moscow
by a source close to the
White House.
After Jan. 20. when the admini-
stration will be headed by
Mr Reagan and the Senate
Intelligence and judiciary -
committees by two promi-
nent Conservatives, Senators-.
Barry- Goldwater and Strom
Thurmond, the extent of
Soviet penetration of Ameri-
can institutions is:likely to be ?
subjected to exhauStive
review. ?
Approved For Reitaga,20?410W/061 : C/1/1A6W1l-60901R0'
0 14,4 /lac) STATINTL
. 7
Confidential agent-
. .
PRESIDENT CARTER'S
-"- dwindling. fortunes-have
given his Republican
renewed confidence.. .
,
Ronald Reagan last Week
felt euphoric enough to allow
his campaign manager,
William Casey, to slip away
to Lonar'for a. few days. :
, Casey,, once chief of Rae!.
tligence ..for..7the Office'- i of
'.Strategio Services in Europe;:
- has been.attending an Anglo?,
American conference on the
history of the. Second World
War, held . at the Imperial. .
.1War Museum.. ? _
Approved For Release 2001/03/06 : CIA-RDP91-00901R000500010002-3
WASHINGTON POST
STATI NTL
Approved For Release 20011-/bIlbt1 IA-RDP91-00901R000
'Reagan 's New Gam
Lou Cannon
, we.aaestea post, Staff Writer
CIIICAGO,M, arch 1?Ther hav,e"In t h e eampaicfn
been telling-It:4ms, about Willie/11'j. y
'Casey he,hind his back (luring the first
management business
'Of liii,?',managership of the
?
Itagan presidential canmaign. ,
,Caiest,':?raisrernemberecl:, the .
name of the'44inpaign finance three-
tor
Then, he -misplaced the date of 'a
key primary election. e- , ?
?Finallk,' he canceled a Series of air-
ane?eharteri, -for `Reagan without '
ganite.
the press, about it,, leaving '
three network crews in Atlanta while , h
as wc
Reagan -campaigned triumphantly ,in?
South Carolina and Florida.
? But three 'weeks after Reagan "die.:
rnatically ousted campaign director
Vjohn P: Sears during their mutual ma
nient of 'tritimph 'in \ the New Hemp
-
shire primary; Casey is very much in
charge of Ronald Reagan's campaign.
The ,New York attorney and 'one-
time Securities and Exchange Com- dence of, the Californian who is first
mission . chairman has, ,meshed well
among. equals in the Reagan circle?
with the entourage, -of Californians '
surrounding Reagan, as New'York At.. 'fellow. _ lawyer Edwin Meese 111.
torney John N. Mitchell once did with Meese, who didn't see eye-to-eye with
the Californians' itround Richard Sears, says that Casey is "intelligent,
Nixon?, ext. exceptionally decisive and easy to get
Presiding over- th flrLng of 160 ' glIong with." ,.
'Reagan aides, and the nonpayment a ,,-00iers have used other words about
others, Casey has stemmed the fMan,- . Casey. During his -Years as a success:
? cial hemorrhaging that threatened to ful venture capitalist and book pub-
drive the former California governor, Usher. Casey was the target of ayari.-
"canipaign into near-bankruptcy ety of lawsuits, including a successful
way through the primaries. In so for plagiarism. Sen. Edward, M.,
ing, Casey has won the solid, ;Kennedy once quipped that Casetwas?-?
fled support of,his?candidate. ?..th"second most outrageousappoint:
In the campaign rdaagement '"nieht,is SEC chairman:P-1%e first be-.?,,
. ness, you have a .constituency of one," , ing the senator's father. Joseph Ken-
says a knowledgeable Reaganite. "And nedy.
Casey has won the confidence of Gov. ..At 67, Casey is only ' two- Itears
q,Reagan." ' , younger than his candidate and he
Casey also has gained' the con
ou have a constitu-
eney of one, says a
knowledgeable
enee of
?van.
WILLIAM J. CASEY
has the wealth, legal experience and
'
high-ranking connections that fre-
quently impress political candidates.
, But' his origins' were humble. After
'graduating " from" Fordham. Casey
worked his way' through night law
school at St.' John's while earning his
living' as A New York_ home-relief
vestieator. During World War II, Ca?
sey entered the Office of Strategic
Services? the predecessor to the Cen-,
tral Intelligence Agency, and became
chief of-secret intelligence for the Eu-
ropean theate.k.. ?, ? 4
William (Wild Bill) Donovan, the
head of OSS, credited Casey with
overseeinethilnip"drfantintelligenVe-1
-; gathering mission during the Battle of
' Bulge and wrote him in, a letter: "You I
? took up one of the heaviest loads
which an Of us had to carry at a time ;
when the going was roughest, and you ?
lavt,t)
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delivered brdliantly, forcefully and in-
.
good time."....................
After
After the war, ,Casey became a suc-
cessful capitalist and a high-priced
corporate lawyer. His: gOvernment
aertrice,$ in addition to the SEC; in-
cluded terms as undersecretary of
state for economic affairs, and presi-
dent of the EXport-Import Bank. He is
,a$ prominent in support of Catholic
does, any of ' this. experience
-Anglify Casey tOt run a political
,
campaign? Casey, at least, has no
oubts. In a recent interview he em-
phasized that he, would be in charge
..f: .the Reagan campaign's political
.,OtrategY- and traced his own $'eXperi--.
Venee back t? his work' for the 1940 Re-
'presidential campaign of
4Thomag E-''Dewey, who lost the nomi-
knation that Yegi to Wendell Wilikie.
Certainly, Casey, ha's long displayed
an: interest in3he political process. He
ran: or Congress fir19-66, losing the
-` Republican nomination in a Long Is-
'1 and diitriet. He wa?a friend and con-
fidant of the late Lebnard' B, Hall, the
'legendary Republican chairman, and 'a
Member Of 'Hall's New 'York and
Washington 'law firms. He ? is 'given
credit' for rapid and accerato assem-
?bly ?fan Issues book for.Nixon's 1068
$. presidential campaign.' - r.
$ ?_
:But
for all of his nigh-level skills '
and friendships, Casey has never been
a nuts.and-boltsptilitical person. Some:,
"think lielneWs a laekof a9Preclation
',for$,tile, sensibilities of the campaign,
foot soldiers. A few in the press sus-
pea that Casey harbors the perva-
*4,a4efive anistrUat 'of-media charaeteristic
of Nixon but Only rarely of Reagan.
or all this, there are those who say'
that CaseY exact y what the trotk
tied Reagan campaign needed.. ;
'We needed An outsider "to. take
, charge, someone who 'could make decisions and hadn't been 'stained by all i
the infighting? says one Californian
who has become a Casey convert_ "Ca- "1
sey has imposed an objectivity `on this
campaign that was lacking before. He
has also brought with him an under- $
standing of international economic is-
sues which will help to sharpen: the
candidate." ' '
In the analysis of one familiar with
. ?
inner Workings of the Reagan opera-
tion, the replacement of Sears by Ca-
, sey improved the campaign's manage-
ment while diffusing strategic deci-
sions. Political strategy is now largely
a state-to-state affair in which heavy
reliance is placed on 'field representa-
tives recruited by Sears and deposed
political 'director Charles Black?such
"operatives as Roger Stone in New
. York and Connecticut, Gerald Carmen
in Massachusetts and New 'Hampshire,
Donald Totten in 'Illinois and Michi-
gan and Lee Atwater in South Caro-
_
',The information, and 7recommenda.
tions the field operatives provide are
funneled :into a strategy- team which
includes _Casey, Meese, field director
`Andy, Carter and pollster Richard
Wirthlin.
Right now. everything is going well ,
Y,f57 Reakan, 'but there are, inevitable
,Tmornents.p,f crisis ahead,' and t is in
$1,these`Jiiiijs that .Casey'lvili be tested.
"Irthei;aisdom ,of chairman Casey' i
*4tinclaadesl an understanding of his own
-eampaigu is going to do- just fine,"
'Jack of knowledge, about politics, this
..,says one who -has long labored in the
peagan , vineyards. "If not,
T 'don't know:Jri
'knowledge can be lawfully dangerous ,
tand Bill Casey's knowledge alf.
.4cal campaigns for-all his accomplish-
ments, la still 9n the small side."
,
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? -7-v?
STATINT
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20 SEPT.11,-)n _VD
???
ne. 9. v...C0 ed
? ..z.) 0 ;sees 9 9 , The assumption, for which
---- no evidence has been found,
' ? ?).Th T-1 ? :ono.. was that same old or new
cne 231; ? ,,,..1ill,ta44-LK scandal involving the S.E.C.
might have been the cause of
? the resignations.
Mr. Garrett was recently ac-
,cused by Forbes magazine of
;having blocked an S.E.C. in-
vestigation of ? the Chicago,
,Milwaukee Corporation, for
which lie formerly did legal
,Iwork. A staff investigation of
?en the matter was made, which
....;!exonerated Mr. Garrett, and
which has apparently been ac-
cented by some members of
circles when they were first terStoion, i
,
?
...;
Congress as .exonerating hum
. Mr. Garrett became commis-
sion chairman, in an attempt
qto revive the commission's good
,?-4 name, in the wake of scandals
involving allegedly improper
' treatment, by the agency, of
individuals and businesses who
had found favor with the Nixon
6'. Administration ?
.;11
Tipa iirm York Times
Ray Parrett Jr.
Sks.ii*:5"
74
sscciated Press 'f
.William J...Casey .
e."
-17 t
i
iay EILEEN SHANAHAN
SpE?cial to The New York Dimas
-
WASHINGTON. Sept. 19? President Ford, Mr.C4a?seY said:
The resignation of Ray Garrett be was leaving because(' be,
;Jr., the chairman of Securities needed to "give some attention
and Exchange Commission, and at . this time to business 'mid
1o1 William J. Casey, a former financial interests which 1,iia,Ye,
.chairman - of the S.E.C. who is been away from for almost
_how the head of the Export- five years." - ,
-Import Bank,
today by -1.vere. announced ?Mr. Garrett, who had
the White House.
-., The fact that botit announce-
ments were made on the same
:day appeared to be only a
;coincidence..
-; Mr. Casey, according to asso-
ciates, was bored at the Export-
-Import Book, and disappointed
-that it had not proved to be- a
'stepping stone to the more im-
portant government jobs for
which he once hoped, including
the post of Secretary of Abe
Army or Directcr of Central
Intelligence. --;
In his letter of resignation to
associates some time ago that"
he wante to leave the commis-
sion before the end of this year,
informed the President that he:
felt the commission had reached _ ?
a paint where his leaving would;
be "less disruptive-to the corn-
mission's work" than it might,
have been at some other time.i
The possibility that .the Gar-:
rett and Casey resignations'
might be, in some way, coch-i
nected caused a brief Stir itv
Governmental and ' -financial ?
? ...News ticker accounts of the
Casey and Garrett resignations
were brought into a meeting
of the full Securities and Ex-
change Commission this morn-
ing by the S.E.C.'s public
information officer and were
read aloud by Mr.- Garrett.
According to someone who was
present, Mr. Garrett was as
surprised as anyone else by the
announcement of Mr. Casey's
resignation.
Mr. Garrett had informed his
fellow commissioners earlier
this week that he had formally
submitted his resignation to the
President and that it would be
announced at the convenience
of the White House.
Mr. Garrett leaves behind him
Iat the commission a record of
ihaving brought several major
lregulatory and legislative mat-
-
- his chairmanship, the'
two-centuries-old practice of
price-fixing the sales commis-.
sions on stock transactions on
the New York Stock 'Exchange
was finally brought to an end..
Also during his term, legisla-
tion was finally passed requir-
ing the creation of that is
called a "central markezolace"
for -securities, so that investors
-could find out who was effering?
.the best price for their stock on.
'the- different stock -exchanges;
or. even over-the-counter.
Among the major issues of.
re..e,ulation f the securities mar-
kets that will remain fee Mr.
;Garrett's successor is whether
the commission should stop the'
'New York Stock Exchange from
changing. the structure of its
board to restore exchange insici-:
crs to a majority position.
Under Mr. Garrett, the corn...
mission expressed some strong
doubts about the wisdom of this;
iproposal, but stopped short of
!saying that it would veto.- the
Ichange, which the -S.E.C. has.
Ithe authority to do.
I Another major pending issue
is the extent. to which the New
'York Stock -Exchange- should
be required to soften its Rule
,394., which restricts trading.-off
the exchange floor of. snacks
that are listed on the exchange.
The. commissionen.will also-
have to decide in. the near fu-
ture what it should do about
irequiring more -.disclosures by
;corporations of such matters as
!payoffs. to officials of foreign
,governments; what standards
should be established for fore-.;
casts.of company earnings and "
other key indicators of the '
:health of ea ?company whose ,
;stock is publicly owner; and the-
rules it should impose on mu- ?
?rucipal bond trading.
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WASHINGTON POST STATINT
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-_-KEEP1NG
I.
Spies Who Came to Dinrier
By Dorothy .,11cCardle
? John M. Shaheen, who plans to start
publishing an afternoon newspaper in
New York; possibly some time next
summer, says The New York Press, as
he calls it, will be a 520-mi1lion enter-
?. A slight greying man, Shaheen was
here as toastmaster at the recent Vet-
era,n of OSS dinnen at the Washirigl
on Hil ort?Pre?Via's chairman of the
William. J. Donovan Award Committee,
. which gave the 1914 Donovan award to
? William J. Casey, president of the Ex-
port-Import Bank. Shaheen is, himself,
a veteran of the OSS in World War II
-and so is Casey.
Casey said that American and Brit-
ish counter-intelligence units had the
"closest thine to a decisive clandestine
impact on the war in Europe. It came
not from the hundreds of men and
thousands of weapons parachuted into
Europe, but from a handful of real
German spies captured and turned
around in England, and a couple of
dozen imaginary spies in an imaginary
network carrying out imaginary opera-
.
tions within England."
According to Casey, "The fact is that
our side operated the entire German
intelligence network in England, writ-
ing their reports in London and send-
ing them to the Germans by radio or
with letters to Madrid or Lisbon in se-
cret ink or microdot.
"These fictitious reports convinced
the German generals and finally Adolf
Hitler that the Allied landings would
-? come, not from Normandy, but near
Calais, 100 miles to the North."
? Casey, who, has been chairman of the
Securities and Exchange Commission,
and Under Secretary a State, said
that the Central Intelligence Agency,
which grew from the OSS, is far more
than a spy operation today.
"The CIA is one of the world's great
? centers of learning and scholarship,
having more Ph.D.s and advanced sci-
- entific degrees than you are likely to
find any place else," Casey said.
In his speech, Casey set the record
straight about that -Wild Bill" nick-
name given Donovan.
"Donovan's manner was deceptively
mild," said Casey, relating 'how Dono-
van's soft voice and gentle manner had
caused some people to change their
opinion of Donovan.
Said Casey: "Donovan came into
town as 'Wild Bill' and left as Sweet
William."
Organizers of the United Negro Col-
lege Fund are beginning to feel jinxed.
- For the second time in; six months,
the date for their benefit conflicts with
another event. The one scheduled Tues-
day night at $50 a couple is intended
to. draw members of, Congress. But
Tuesday is the same night President
and Mrs. Ford have invited members
of Congress to a Christmas ball at the
White House.
- Last summer, Niles White, area- di-
rector of the fund, organized a con-
gressicinal tennis match after Geora,e
Bush, then chairman of the Republican
National Conimittee, agreed to sponsor
the fund-raiser. ?
Before the match could be held,
however, Richard Nixon resigned 23
President, Congress went home to
campaign for re-election and Bush
went off to China as head of the U.S.
Liaison Mission in Peking. -
This time Robert L. Strauss, chair-
man of the Democratic National Com-
mittee, and Mary Louise Smith, head
of the Republican National Committee,
have agreed to co-host the benefit.
There is one optimistic: note: benefit
time is set for 6:30 to 8:30 p.m. and the
White House ball is not scheduled to
begin until 9 p.m. Fund-raiser organiz-
ers are hopeful that congressonal
guests will make it a point Co step by
the Capitol Hill Quality Inn (415 New
' Jersey Ave. NW) on their way, to the
White House.
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The Clandestine War in Europe
(19421945)
Remarks of William J. Casey
on receipt of the William J. Donovan Award
at Dinner oi Veterans of 0.S.S., December 5, 1974
Presentation Ceremony, left to right, William P. Rogers, Mrs.
William I. Donovan, William J. Casey.
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Donovan Award Citation
The Donovan Award must go to an individual ". . .with the spirit. . .and
the features which characterized General Donovan's career." William
J. Casey amply fits these specifications, as soldier, lawyer, author, diplo-
mat, and banker.
It was in World War II that the O.S.S. first knew him in action. He be-
came Chief of Secret Intelligence for the European Theatre of Opera-
tions where his great drive and judgment made their mark. One of his
many dramatic hours was his lightning organization of the radio teams
he parachuted into Germany to send back intelligence on enemy posi-
tions there, from the Battle of the Bulge to Hitler's last redoubt. His
many operations gained military objectives, helped to shorten the war,
and saved an untold number of lives.
As a public servant, he well fills the mold of William J. Donovan. Like
Donovan he has been a consistent student and activist of the strategic
position and problems of the United States and of the role of its intelli-
gence and operating agencies as vital tools in foreign policy. On this
plane he helped design the Central Intelligence Agency, served on the
General Advisory Committee on Arms Control, on the Presidential Task
Force on International Development, and is currently a member of the
Commission on the Organization of the Government for the Conduct of
Foreign Policy.
Recently he has served with distinction as Chairman of the Securities
and Exchange Commission, and with notable success as Under Secre-
tary of State for Economic Affairs. Now, as Chairman and President of
the Export-Import Bank, he is serving his government with great wis-
dom.
As a person, he is full of the courage that General Donovan exempli-
fied and loved in others, and that Hemingway called grace under pres-
sure. He has consistently shown his humanity in his work for Catholic
Charities, as a Trustee of Fordham, as a Director of the International
Rescue Committee, aS' a distinguished attorney, and as a friend to count-
less others.
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The Clandestine War in Europe
(1942-1945)
How can I adequately express my appreciation for the William
J. Donovan Award. This medal has very special meaning for me. There
is the great affection and admiration which General Donovan holds in
my memory. There is the example and inspiration he provided during
the 15 years I was privileged to regard him as leader and friend.
So many of my most cherished friendships were formed in the
OSS and for all these years I have been proud of what we were able to
do together.
This sentiment extends in a special way to those who have come
across the Atlantic for this occasion tonight and to so many others
who worked with us throughout Europe. At the time, we may have
known them only as numbers or code names, like Caesar for Jean-Pierre
Roselli, but strong friendships and bonds have formed and flourished
across the Atlantic over these 30 years.
We have visited back and forth and attended each other's re-
unions. We've even overcome the barriers of language, notably when
the French invited us back for the 20th anniversary of their liberation.
They took us all over France and everywhere we'd go, there would be
an occasion and a speech. I had to respond in my fractured French and I
would begin: "Nous sommes tres heureux d'etre ici." This was intended
to mean, "We are very happy to be here." After a few such per-
formances, Barbara Shaheen, who had studied French in school, came
to me and said: "Bill, you are saying, 'Nous sommes tous heros,' "which
means, "We are all herpes." I hope you won't think that's what I'm
saying tonight, as I tell you for the first time the full story of OSS.
For us, in the United States, it all began with a New York lawyer
who saw his country facing a deadly menace and knew that it was un-
prepared and uninformed. It's hard for us to realize today that there
was a time in 1940 and 1941 when William J. Donovan was a one man
CIA for President Roosevelt.
I remember General Donovan bouncing into London, with little
or no notice, brimful of new ideas, ready to approve any operation that
had half a chance. He'd come tearing in from New Guinea, or wherever
the last invasion had been, and go charging off to Anzio, or wherever
the next landing was to be.
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He really loved the smell of battle but he'd look at you with his
cherubic smile and twinkling blue eyes and explain that he had to be at
these landings to see, first-hand, the conditions his men had to face.
Donovan's manner was deceptively mild. A few years earlier,
running for Governor, he had campaigned through upstate New York.
The local politicians, expecting this legendary VVorld War I infantry
hero to come roaring and thumping into town, were disappointed by
his soft voice and his gentle manner. The saying was: "Donovan came
into town as Wild Bill and left as Sweet William"
What was the OSS and what was it all about? It was probably
the most diverse aggregation ever assembled of scholars, scientists,
bankers and foreign correspondents, tycoons, psychologists and football
stars, circus managers and circus freaks, safe-crackers, lock pickers
and pickpockets?some of them in this room tonight. You name them,
Donovan collected them. What did he do with them? Well, he unleashed
them?John Shaheen was unleashed to capture the Italian Fleet or at
least an Italian Admiral, Henry Hyde to build an intelligence network in
France, Mike Burke to liberate the Vosges?and these and many others
delivered magnificently.
Now, General Donovan unleashed this talent in a very intelligent
and perceptive way. He knew he had a bunch of rank amateurs going
into a very professional game. He knew the British had run an intelli-
gence service for five centuries and had been working for three years
to carry out Winston Churchill's dramatic order "to set Europe ablaze."
So, Donovan either set up joint operations with the British as he did in
sabotage and resistance support and in counter-intelligence or he set
up parallel but closely related organizations and arranged for an appro-
priate degree of British tutelage as he did in intelligence and propa-
ganda work.
, Donovan grasped the value of the clandestine side of war as no
other American of his time. But, its potential was realized not by his
OSS but by the combined effort of British and American clandestine
services, of the Allied Governments in exile and the resistance, intelli-
gence and escape organization which sprang up spontaneously all over
Europe. OSS, coming into the European war three years late, would
not have been able to do very much at all if the British had not taken us
in as junior partners and so generously taught us all they knew. For this
we are ever grateful to our colleagues in the Special Forces Club which
Geoffrey Walford has so graciously come here to represent tonight.
Mrs. Tronstad was close to the first and perhaps the most vital
blow inside Europe. Her husband, Lief Tronstad had produced nuclear
terror in England in 1942 before we ever heard of the atom bomb. Escap-
ing from Norway, this Norwegiaq scientist brought intelligence which
led the Combined Chiefs of Staff to believe that the secret weapon brand-
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ished in Hitler's speeches was an atom bomb based on heavy water. He
had learned the Germans had ordered a tripling of production from a
plant in central Norway which was the only source of heavy water in
Europe. The Combined Chiefs set the highest priority on destroying
this plant. Professor Tronstad knew that plant so intimately that he was
able to design plastic explosives in a pattern which exactly fitted its
critical distilling tubes and pipes. Nine tough Norwegians parachuted
in, succeeded in entering the plant, applying the plastic designed by
Lief Tronstad and escaping before the plastic explosive destroyed the
plant. But several months later, the Germans had the plant back in
operation. The Combined Chiefs then sent 155 American flying for-
tresses over to bomb the plant. This massive air raid killed 21 Nor-
wegian civilians and 22 Allied airmen but did only slight damage to the
plant. But this was enough for the Germans to decide to move the plant
and its inventory to Germany.
This intelligence got back to England promptly and the Combined
Chiefs ordered an air attack on the ship bringing the plant from the
seaport in southern Norway across the Baltic Sea to Germany. But the
plant never got that far. It had to be taken by rail to a ferryboat which
would take it down Lake Tinnjo towards the Baltic seaport. Knute
Haukelid, who was here with us when David Bruce received the
Donovan Award, was one of the original heavy water sabotage team
and had stayed behind in Norway. Singlehandedly, he entered the ferry-
boat applied plastic explosive to its hull and got off before it sailed.
Halfway across, the innards of the heavy water plant and some 15000
litres of heavy water went to the bottom of the lake and it's still there.
This operation may have deprived Hitler of the atom bomb with all that
would have meant for our civilization.
General Guerisse, who was to come here from Belgium tonight
but couldn't make it because of illness, organized escape lines which
ultimately brought Ralph Patten and 4500 American, British and Cana-
dian airmen, shot down over Europe, back to England where they could
fly again. Every airman as he set out on his bombing mission knew that
if he had to parachute out and could find his way to a church, a school,
a convent or a farmhouse, he would probably be sheltered until a guide
from one of the escape lines called for him. These guides, many of them
teenage girls would take 4 or 5 men speaking only in southern drawls,
mid-western twangs or London cockney, move them by night on bicycles
or trains, hide them by day in one of thousands of homes between the
Rhine and the Pyrenees and, in a few weeks, deliver them to Gibraltar
or Lisbon. Thousands of Frenchmen, Dutchmen and Belgians made their
homes available knowing that if they were caught their whole family
would be tortured and shot or sent to a concentration camp. General
Guerisse, who was known in those days as Pat O'Leary, was himself
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captured and dragged through several concentration camps finally
winding up in Dachau. Even Dachau couldn't keep Pat down and he
wound up organizing the prisoners and having taken over the camp
when the American forces arrived there.
Jean-Pierre Roselli is here tonight to represent the Amicale
Action made up of a thousand local chapters of resistance veterans all
over France. Prance was where we were to land and I recall the flood
of information that came over some 200 radio sets and in pouches full
of maps and drawings and reports picked up inside France by small
planes or small boats.
These Frenchmen put 90 factories out of production with less
plastic explosive than could be carried by a single light bomber. I be-
lieve the record shows that this kind of a job, when it could be accom-
plished on the ground by sabotage, was done more effectively and with
less cost that it could be done from the air where the cost in planes and
the lives of airmen and civilians could run very, very high.
The French resistance made 950 cuts in French rail lines on
June 5th, the day before D-Day, and destroyed 600 locomotives in ten
weeks during June, July and August of 1944. Our greatest debt to them is
for the delays of two weeks or more which they imposed on one panzer
division moving north from Toulouse, two from Poland and two from the
Russian front as they crossed France to reinforce the Normandy beach-
head. We'll never know how many Allied soldiers owe their lives to
these brave Frenchmen.
When General Eisenhower failed to destroy the Germans in
France, his armies found themselves moving into Germany without the
behind-the-lines intelligence which the French had provided so pro-
fusely. General Donovan brought in Milton Katz from Italy, Henry Hyde
and his team which had worked on France from Algiers, Dick Helms
from Washington, Mike Burke from the Vosges, Hans Tofte from the
Danish desk, and Bill Grell from the Belgian desk. George Pratt and his
Labor desk, including Lazar TePer and his small group of experts on
controls and documentation within Germany, were enlisted. New com-
munications, cover and air drop talent were brought in from Washing-
ton. Between October 1944 and April 1945, this combination sent some
150 men, mostly Belgians, Dutchmen, Frenchmen and Poles into Ger-
many with identification as foreign workers. They were sent to trans-
portation centers with radio sets or new equipment which enabled them
to hold a conversation with an airplane sent out for that purpose. These
brave men went into Germany blind and it was remarkable that over
900/0 of them came out alive. I recall parachuting a young Belgian, Emil
Van Dyke, near Munich. He and his partner got jobs in the Gestapo's
motor pool in Munich, driving German officers around southern Ger-
many. After our 7th Army took. Munich, Van Dyke and his partner
turned up and brought me to their sleeping quarters, a cubicle in the
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Gestapo garage in Munich. They showed me how they had sawed out
a piece of the floor under the bed to create a hiding place for their radio
set. When they returned from a trip they would take out the radio and
send detailed messages to London on' German troop units and their
movements. His war over, Van Dyke had only one request. He wanted
to meet the girl who handled his radio messages to London. They had
gotten to exchange a few extra words every time he radioed in. He must
have fallen for her over the air because every extra word sent out of
that garage increased the chance that German direction finding equip-
ment would close in and locate him and his radio. As it turned out, she
was a corporal in the WACs, we had a fine wedding in London and they
settled down in Los Angeles to raise a family.
Fleming Juncker, who is with us tonight, organized the resistance
on the Jutland Peninsula in western Denmark. You'll recall that in
December of 1944 Hitler gambled everything he had left in the Ardennes
offensive aimed at depriving the Allies of the Port of Antwerp. Twelve
German divisions in Norway were ordered to go by ship to north Jutland
and then by train to join in this last desperate German counter-attack.
Three hundred Danes in Jutland, Fleming Juncker's men, supported by
the whole population, undertook to bottle up this force of over 200,000
Germans in Denmark. They brought the railway system in Jutland to
practically a complete breakdown and it took weeks for some of these
German divisions to make a journey that normally takes 12 hours. By the
time they arrived at the front the battle of the Bulge had been won.
The Port of Antwerp was a great prize. When Belgium was liber-
ated in September, the Belgian secret army had prevented the Germans
from carrying out orders to destroy it. The war would have lasted a good
deal longer if we had not been able to use those port facilities in the fall
of 1944. Even then, the Germans put it under constant bombardment
with V-2 rockets from sites near The Hague. The Dutch resistance,
represented here tonight by Dick Groenewald, attacked trains carrying
these rockets across Holland from Germany and destroyed a lot of
rockets which otherwise would have exploded on Antwerp or London.
All this had a heavy price. As you drive through central France
near Limoges, you come to Ordour sur Glane. There, a monument to the
cruelties of war, stands a small village still burned to a crisp, as the
Germans left it over 30 years ago, its 250 male citizens herded into a
barn to be shot, its 400 women and children herded into the church to
be burned. Was it worth the life of this community to keep a single
German tank-division away from the Normandy beachhead for two
weeks? I don't know. But I do know that whether those GIs we sent to
Normandy were to be swept back into the English Channel was a very,
very close thing.
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Even that's not the point. The truly important thing is that those
Frenchmen and 13elgians and Danes and Dutchmen and Norwegians
rose to fight and wanted to fight and had to fight because they loved
their country and what it meant to them.
Returning to General Donovan, while he loved all this action and
the courage it evoked, his real genius and greatness to me was the atten-
tion he gave to the more subtle war of the mind. His organization was
the only one which embraced all aspects of clandestine and intelligence
activity, psychological wartare, deception and research as well as
espionage, sabotage, and support of resistance. And he collected play-
wrights, journalists, novelists, professors of literature, advertising and
broadcasting talent to dream up scenarios to manipulate the mind of the
enemy through deception and psychological warfare programs.
Donovan created an outfit that was so secret it didn't have a
name. We called it X-2. He put Jim Murphy, one of his closest legal
associates, in charge and he integrated it with Section 5 of MI-6, the
British counter-intelligence unit. They had the closest thing to a decisive
clandestine impact on the war in Europe. It came not from the hun-
dreds of men and the thousands of tons of weapons parachuted into
Europe but from a handful of real German spies captured and turned
around in England and a couple of dozen imaginary spies in an imagin-
ary network carrying out imaginary operations within England. The fact
is that our side operated the entire German intelligence network in
England, writing their reports in London and sending them to the Ger-
mans by radio or with letters to Madrid or Lisbon in secret ink or micro-
dot. These fictitious reports convinced the German generals and finally
Adolf Hitler himself that the Allied landings would come not in Nor-
mandy but near Calais, 100 odd miles to the north.
This deception program consisted of radio traffic from a huge
imaginary army located on the east coast of England opposite Calais,
wooden tanks and rubber boats for the cameras carried by German
reconnaissance planes, as well as false reports from non-existent spy
networks. It had the Germans believing the Allies had over 80 combat
divisions in England on D-Day. Actually there were less than 50 of which
less than 40 were combat ready. Eight of them were to land in Normandy
on D-Day, 5 more on D +1,4 more by D + 3 and 4 more, 21 in all byD + 12.
Stiff resistance could back up the arrival of these divisions which had to
come in over beaches, without a port. The Germans had about 16 divi-
sions sitting in Normandy, a few more in reserve around Paris and by
D + 2 or so had ordered 5 tank divisions from southern France, Poland
and the Russian front.
Yet, for seven decisive weeks, Hitler and his generals kept 19
of the best German divisions 100 miles away from our hard pressed
forces on the beachhead, waiting for an army that did not exist to make
an assault that was never intended.
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The British had broken the German code used in wireless mes-
sages between Hitler and his generals. General Eisenhower and his
top generals were able to actually read the orders and intelligence
appreciations which passed between Hitler and his generals by wire-
less. Thus, it was possible for Allied strategists not only to know what
kind of facts to feed the Germans but to watch them take the bait.
For example, German messages showed that Von Runsted, in
command in western France, believed the landings would be launched
on the shortest line, across the Straits of Dover from eastern England
to the Calais area, while Hitler and Rommel, commanding in Normandy,
believed it would come from the south of England to Normandy. As
imaginary facts were fed out to support the Von Runsted view, the
intercepted messages showed Hitler wavering and hedging. The Allied
comand knew the deception program had worked when Hitler refused
Rommel's request for four tank divisions to back up the beaches in Nor-
mady, but insisted on keeping them under his own control around Paris
so they could go either way. Then, on June 8, two days after the landing,
Hitler actually ordered five infantry and two tank divisions to move
100 miles south to reinforce the Normandy beachhead. On June 9, the
Germans got a long message from London reporting that three fictitious
spies believed the Normandy invasion was diversionary and intended to
cause the Germans to throw in their reserves so that the massive forces
in east England could land in the Calais area. The Germans swallowed
this bait immediately. The next day, June10, the orders sending the seven
divisions to Normandy were countermanded and all divisions in north-
ern France and Belgium were put on alert. One has to shudder to think
of what could have happened if that force had been thrown into Nor-
mandy a few days after the landings.
The deception was. so good that when the Normandy invasion
plans were stolen by the Germans from the British Ambassador in
Turkey and General Eisenhower had to consider changing the whole
invasion plan, the decision was to intensify the signals that the invasion
would be at Calais and make the Germans think that the plans for Nor-
mandy stolen in Turkey had been deliberately leaked to cover up the
real landings on the Calais coast.
Later on, on the continent, Hubert Will and other X-2 officers
used half a dozen German agents captured in France to feed German
headquarters with tactical deception on the plans and movements of
General Bradley's forces. Three of these agents were so convincing that
the Germans awarded them the Iron Cross.
So you see, intelligence is a very uncertain, fragile and complex
commodity:
First, you have to get a report.
Then you have to decide whether it's real or fake.
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Then, whether it's true or false as you find out what other intelli-
gence supports or contradicts it.
Then, you fit it into a broad mosaic.
Then, you figure out what it all means.
Then, you have to get the attention of someone who can make a
decision, and,
Then you have to get him to act.
Because General Donovan understood all this, he scoured our
campuses and mobilized thousands of the finest scholars in America
to put together, assess and evaluate, and then analyze the intelligence
that came in from all sources. This unprecedented collection of scholars
gave Donovan enormous influence. For example, in 1944 there was a
fierce struggle between the RAF and the U.S. Air Forces over bombing
strategy. Donovan was able to produce a team of outstanding econom-
ists: Ed Mason, Walt Rostow, Charlie Hitch, Charlie Kindleberger, Chan
Morse, Emile Despres to dissect the German economy and make the
case that, by concentrating on oil depots and transportation lines, Allied
air power could most effectively prepare the way for the invading
armies. ?
Donovan's grasp of this elusive, multiple and yet crucial nature
of intelligence led to the CIA, over which Bill Colby presides so grace-
fully, becoming not merely a spy outfit but one of the world's great cen-
ters of learning and scholarship and having more PhDs and advanced
scientific degrees than you're likely to find anywhere else.
Well, we've gone around the room and fought Donovan's war in
Europe all over again. I haven't touched the men and ideas Donovan
unleashed in Yugoslavia where John Blatnik spent many months organiz-
ing resistance forces in Slovenia, or Thailand to which Nick Deak has
referred, or Italy where Milton Katz and Mim Doddario were leaders,
or Greece where Jim Kellis and Chris Fragos performed nobly, or China
and Burma where General Peers distinguished himself or Indo-China,
or North Africa. I have neither the time nor the knowledge to do so. It
only remains for me to again thank, from the bottom of my heart, the
Veterans of the Office of Strategic Services and all of you here tonight
for your generosity.
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.9o-Aotiez.4 .c/galezi
THE HONORABLE ALLEN W. DULLES
THE HONORABLE JOHN J. McCLOY
LIEUTENANT GENERAL WILLIAM W. QUINN
GENERAL OF THE ARMY DWIGHT D. EISENHOWER
THE EARL MOUNTBATTEN OF BURMA
THE HONORABLE EVERETT MCKINLEY DIRKSEN
J. RUSSELL FORGAN
THE ASTRONAUTS OF APOLLO 11
THE HONORABLE DAVID K. E. BRUCE
WILLIAM J. CASEY
The Veterans of the Office of Strategic Services will award the William J.
Donovan medal to an individual who has rendered distinguished service in the
interests of the United States and the cause of freedom anywhere.
The purpose of this award is to foster a tradition and spirit of the kind of
service to country and the cause of freedom which William J. Donovan ren-
dered in both his private and public capacities. He was the exemplar of the
citizen-soldier-diplomat who valiantly served his country and the cause of free-
dom throughout the world. This award, as a perpetual parallel, will be made
to an individual who, in his activities, exemplifies the spirit, the tradition and
the distinguishing features which characterized General Donovan's career. These
include a continuing concern for the world's security and safety, for the role
which the United States must play in the world, and for the rights, freedoms
and welfare of individuals in our society. Perhaps the most unique feature of
General Donovan's life was the continuing expression of these concerns in his
private life and activities as well as in public service.
Specifically, in General Donovan's career these features were expressed, as one
of America's leading citizen-soldiers, as ambassador, as intelligence chief, as
assistant Attorney General, as lawyer in the courtroom and in the office, as pri-
vate traveler seeing what he could learn for the benefit of his country.
The recipient of the Donovan medal will be an individual who has, in his own
career, outstandingly exemplified these features of Donovan's career. He will
be selected by a committee appointed by the President of the Veterans of the
0.S.S.
The award will take the form of a medal, carrying a likeness of General
Donovan.
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WASHINGTON STAR
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_g_ t
STATINTL
.
Cloak $ and dagger feats .
in the early days of the OSS
will be recalledtomorrow
evening when the veterans
of World War II derring-do
meet to honor one or their ,
own: In the ballroom of the
Washington Hilton, the
William t 3. Donovan Award
will: be presented to Wil- ,
riarn .t.Casey, President of
- the-Export-Import Bank.
In receiVing the honor
named after the famed
gpneral, soldier, diplomat,
attorney general, and
chief of 'the intelligence
service that preceded the
CIA, Casey joins the ranks
of such , men as David
Bruce ? the last recipient,
the astronauts of Apollo
Ii Earl Mountbatten,
,-President Eisenhower,
Allen Dulles, John J.
Mccloy, Sen. Everett Dirk
sen and Lt...Gen. William
Quinn. ?
Casey. is 61. He could be
a banker, a lawyer, and
author, and he has been all
three. His name appeared
most often in the paper
when he was head of the
Securities and Exchange
+ 1 IX
?
Commission which slap--;
ped a $224 million- fraud
suit on-Robert Vesco.
But the dinner prOgram
. tomorrow evening will tell
of his "lightning organiza-
1 tion of the radio teams he
. parachuted into Germany
to send back intelligence
on enemy positions," of his
help in designing the CIA
and of his personal cour-
age that Hemingway call-
- ed "grace under. pres-
sure." ?
Coming down for the
. dinner, and to give a party
at the George Town Club
afterwards is oil man John
Shaheen, former OSS
member and a man who
must have cgurage. He
plans to start a daily
- evening newspaper in New.
York ? the New York
tress ? early in 1975.
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aaatenionstellit4
2.7 MAY ;971
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Wizar
OSS
By Margaret Crimmins
Old spies, it seems, never
die. They just get bigger And
better jobs. ?
Last night's 'annual re-
union of the most clandestine
cloak and dagger boys of
them all, members of World
War Il's OSS (Office of
Strategic Services), included
a special counsel to the Presi-
dent, the SEC chairman, a
vice president of Interna-
tional Telephone and Tele-
graph Corp., the New York
Yankee's president, a former
circus k i a g,I bankers and
other financiers.
Ambassador David K. E.
Bruce, now chief negotiator
,at the Paris peace talks, was
awarded the OSS William J.
Donovan medal, named after
the intrigue-loving, Irish
organizational genius who in
1941 founded the CIA's fore-
runner.
"Those were very exciting
days," said Ambassador
Bruce, who said he came to
Washington for the event
and saw President Nixon
. briefly yesterday afternoon.
"Things have been very
dull since the OSS days.
, There were as many in the
OSS as there were Ameri-
cans killed in the Vietnam
war," said the 73-year-old
ambassad or.
Mrs. Bruce, who was with
OSS in London, also talked
about the "excitement" of
those days. She joined her
.amsband in Washington yes-
terday afternoon. "I had to
? stay in London for a special
ceremony. ' They named a
new rose after me" (an apri-
cot-colored plant named
Evangeline Bruce).
There was a certain- nos-
talgia among the amain:a-
mately 500 in the predonii- _
sota congressman and now
special consel to President
Nixon, reminisced about the
clays when he was in the
China-Burma theater with
.Earl Mountbatten CO win-
ner of the Donovan Medal)
and Gen. (Vinegar. Joe) Stil-
well. ..
"We were sludging
through the jungles in Bur-
ma, in the middle of the
monsoon, with _rain coming
down a mile a minute, and
all dirty in Army-issue
clothes. Mountbatten showed
up in dress whites. We
threw some K-rations in the
mud for him to stand on. IIe
gave a long speech about
patriotism. Stillwell turned
to me and said, 'That's the
goddamnedest story I ever
heard,'" related MacGregor.
SEC chairman William J.
Casey joked, "OSS stands for
Old Soldiers' Society," and
added "if you keep quiet you
can hear the arteries harden."
M. Preston Goodfellow, 79,
who calls himself the "old-
est surviving OSS member"'
and is now president of
Overseas Reconstruction, re-
called looking for a "China-
man to do some smuggling
in Burma. We used him, and
he always said, 'If you ever
want anyone bumped off, let
me know.' I haven't gotten to
that yet."
Henry Ringling North, of
circus fame, and New York
Yankees' peesident Michael
Burke, were two of the nat-
tiest men there, both in ruf-
fled white shirts.
"Those were the days,"
said North, who served in
Italy. "Derring-do was a
great fellow," said the long-
haired Yankees' president of
OSS founder Donovan. '
Some of the most dra-
matic speeches were made
by European Resistance
leaders Maj. Gen. Andre
Guerisse of Belgium, who
founded the International
Prisoners' Association while
he was imprisoned in Da-
chau, Germany; Kurt H
w au-
kelid, of Norway, who was
among, paratroopers and
skiers. who dynamited the
,Norsk hydroplant, which
was the source of power
for a German atomic weap-
ons laboratory and Svend
Truelsen of Denmark, pri-
marily responsible for move.
nantly Republican (and
white-haired) audience at
the Staler Hilton Hotel
dinner. Nostalgia for the
days 30 year ago when a
war was popular, when
there was a worship of min-.
tary heroes, and even per-
haps when surveillance was
a more glarnAneceaa _aria 1
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criticized neMMIM
Dinner,chairman
'MacGregor, former Mune-
'over one weekend.
ing 8,000 Jews into Sweden
President Nixon sent a
special message praising
Ambassador Bruce for his
"enduring contributions to
national security and to.
world peace."
Other guests included Rep..
John Blatnick (D-Minn.), who
-was OSS. intelligence liaison
with .Tito and Allied- forces
in Yugoslavia; CIA Director
Richard Helms; presidential
assistant William Sa fire;
House Minority Leader Ger-
erald Ford (R-Mich.); and
Mrs. Donovan, widow -of the
founder.
The U.S.. Army Chorus
sang such songs as "The
Last Time I Saw Paris" and
"Those Were the Days." ,
Raymond L. Brittenhame
senior vice president of ITT,
is president of the Veterans
of 055. The Rt. Rev. Ed-
ward J. Carney, a former
national chaplin of the,
American Legion, gave a
long, emotional invocation,
saying about Ambassador
Bruce "God knows he needs
our prayers," and asking the
Almighty to "descend upon
ais and give us help." Be al-
so in his invocation stressed
-the need for a new organie
ration. similar to the OSS to
"fight the ravages from