(UNTITLED)

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP91-00901R000100300006-1
• Release Decision: RIFPUB
• Original Classification: K
• Document Page Count: 8
• Document Creation Date: December 19, 2016
• Document Release Date: December 9, 2005
• Sequence Number: 6
• Publication Date: April 8, 1982
• Content Type: OPEN

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APgartment of bstifc
FOR IMMEDIATE RELEASE AG
THURSDAY, APRIL 8, 1982 202-633-2007
Attorney General William French Smith said today
that a Department of Justice investigation found no evidence
that William J. Casey, Director of Central Intelligence,
violated the Foreign Agents Registration Act in his private
law practice in 1976.
The Attorney General said he had reported his findings
to the U.S. Court of Appeals for the District of Columbia
Circuit under the Special Prosecutor Provisions of the Ethics
in Government Act.
As required by law, the report was filed in camera
with the court Wednesday. It was accompanied by a request,
granted today, that the court permit the report to be made
public.
The Attorney General said the Justice Department
investigation began after a Washington Post story alleged last
January 7 that Casey, in 1976, had failed to file under the Act,
known as FARA, when he was a private attorney for the Indonesian
government on a matter involving oil production contracts and
tax issues.
Under FARA, the Attorney General noted, a person
seeking changes in U.S. policy on behalf of a foreign principal
must register with the Justice Department.
(MORE)
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The Attorney General said the Department's
investigation determined that Casey's representation of
Indonesia did not involve efforts to change U.S. policy.
Therefore, the Attorney General said, Casey was covered by
one of the FARA exemptions and was not required to register.
In his report to the court, Smith said:
"The evidence-developed in the course of the
investigation indicates that Mr. Casey's representation of
Indonesia was limited to efforts to obtain, as expeditiously
.as possible, an agreement with the Internal Revenue Service
as to the changes that would be necessary in Indonesian oil
production sharing contracts and tax code to ensure that
payments made under the contracts would be creditable under
the United States tax law. At all times, the fact that
Mr. Casey was representing Indonesia was made clear to those
officials with whom he was dealing. The evidence.does not
support a conclusion that at any time Mr. Casey sought to
persuade or influence officials to change any agency policy . . .
"Mr. Casey's representation of Indonesia was open
and above-board, and his disclosure of his client's identity
as required by the attorney exemption to FARA is evidence of
his good-faith efforts to comply with the requirements of the
Act."
The allegations against Casey are not supported
by the evidence developed in the investigation, the Attorney
General said, and it is unlikely that any evidence would be
developed during a further inquiry.
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"I hereby notify the court," Smith's report said,
"that I find this matter to be so unsubstantiated that no
further investigation or prosecution is warranted and that
no Special Prosecutor should be appointed for this matter."
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When did the Casey investigation begin?
A. On January 7, the day the article containing the
allegations against him appeared in The Washington Post.
Under the Act, the Justice Department has 90 days to conduct
its preliminary inquiry. The 90-day period expired on
'Wednesday, April 7.
Q. Does the Attorney General's report reflect a
unanimous view in the Department, or did some Justice
officials feel a special prosecutor should have been
appointed?
A. The report's findings reflect a unanimous view --
from the Criminal Division up to the Attorney General.
Was Casey questioned?
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Q. Does this end the matter, or could the court-order
a special prosecutor be appointed?
A. The Attorney General's report concludes the
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Q. What other Special Prosecutor matters have you been
involved in?
A. On December 1 and December 23, the Department announced
it was closing inquiries into matters involving Richard Allen.
On December 23, the Department announced that it had applied
to the Special Court for a Special Prosecutor in the Secretary
Donovan case.
Q. What is the status of the Donovan case?
A. You will have to ask the Special Prosecutor.
Q. How many people were questioned in the Casey
investigation?
A. In all, 29 persons--including Casey.
Q. Both in and out of government?
Q. Has Casey been notified?
A. A few minutes prior to our public announcement,
the Attorney General notified Casey, the Deputy Attorney
General notified the Counsel's office at The White House.
Calls were also made to members of Congress who were
interested in this matter.
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Q. Do you have any other matters involving Casey
under investigation?
A. No.
Q. Who conducted the Casey interviews?
A. The FBI and Criminal Division attorneys.
Q. Do you still favor changes in the Special Prosecutor
law?
A. Without regard to any specific case, let me say that
our position on that matter was expressed long ago--and still
holds.
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An additional Casey Q&A:
Q. Are you looking at possible violations by Casey
A. The Department has never had any specific information
of a violation under the Ethics in Government Act with regard
to disclosures. It's a closed matter.
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