OFFICE POOL, 1985

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP91-00901R000400010001-5
• Release Decision: RIPPUB
• Original Classification: K
• Document Page Count: 53
• Document Creation Date: December 19, 2016
• Document Release Date: December 19, 2005
• Sequence Number: 1
• Publication Date: December 31, 1984
• Content Type: NSPR

E S' 1 SY
William Safire
office
Pool,
1985
WASHINGTON
ere, for the high rollers of pundi-
try, is the office pool in Cassan-
dra's Casino. Nobody ever gets
more than four correct, but when you
hit on a big one, all the predictions
that went awry are washed away.
1. White House chief of staff at
19c5's end will be (a) James Baker;
(b) Michael Deaver; (c) Richard
Darman; (d) Robert McFarlane; (e)
William Clark.
2. The juiciest political scandal of
19?5 will involve (a) illegal eaves-
dropping; (b) money under the table;
(c) leak-plugging lie-detection ex-
cesses; (d) sexual favoritism.
S. The real increase in defense-
budget authorization will wind up
(a) 7 percent or over, as President
Reagan seeks ; (b) a compromise be-
tween 4 and 6 percent; (c) under 4
percent for the first time since
Jimmy Carter.
4. The amendment that will pass is
the (a) balanced budget; (b) school
prayer; (c) anti-abortion; (d) none.
5. The Administration will succeed
in getting (a) funding for contras; (b)
substantial tax simplification; (c) big
cut in Medicare costs; (d) funding for
the MX missile; (e) none of these.
. 6. Economy at year's end will be
(a) recovering from recession; (b)
headed into recession; (c) recession-
free.
7. Mr. Reagan's most controversial
decision will involve (a) commitment
of U.S. troops abroad; (b) powerful
response to terrorist attack; (c) in-
ternational restraint that will be at-
tacked as failure of nerve; (d) hang-
ing tough for an aide who let him
down.
8. Biggest letdown of the year will
be (a) heart-transplant surgery; (b)
Halley's comet; (c) Wall Street; (d)
Flutie.
9. Democrat leading for Presiden-
tial nominee in the early surveys of
party officials will be (a) Gary Hart;
(b) Ted Kennedy; (c) Mario Cuomo;
(d) Joseph Biden; (e) Bill Bradley.
10. Israel will (a) have a new gov-
ernment; (b) adopt the austerity-
free market ideas that will trigger
massive U.S. aid; (c) neither; (d)
both.
11. The faction within the Reagan
Administration that will emerge as
predominant will be (a) Weinberger-
Clark-Casey-Kirkpatrick; (b) Shultz-
- drrige- c ar an e; (c)
Mike Deaver and Nancy Reagan; (d)
a continuing standoff among these
three.
12. The Strategic Defense Initiative
(a) will still be hooted at as "Star
Wars" and will not be funded; (b)
will be used as a bargaining chip to i
reduce Soviet land-based missile ad-
vantages; (c) will be the centerpiece
of U.S. defense planning.
13. The Soviet leader at year's end
will be (a) Chernenko; (b) Gorba-
chev; (c) Romanov; (d) Grishin;
(e) Ogarkov.
14. The People's Republic of China
will (a) make a surprise deal with
Taiwan; (b) dispense with chop-
sticks; (c) have a rapprochement
with the Russians; (d) continue on
the capitalist road; (e) have this dec-
ade's upheaval.
15. The new Justice of the Supreme
Court will be (a) Paul Laxalt; (b)
Robert Bork; (c) Antonin Scalia;
(d) William Clark.
16. The price of a barrel of oil at
year's end will be (a) at the current
level; (b) between $25 and $22;
(c) below $22.
17. The most significant book to be
published in the coming year will be
(a) David McCullough's biography of
Harry Truman; (b) Dominique La
Pierre's book about Calcutta;
(c) Arianna Stassinopoulos's biogra.
phy of Picasso; (d) the first volume of
Fred Cassidy's Dictionary of Amer-
ican Regional English.
18. Replacing Paul Volcker at the
Fed will be (a) Alan Greenspan, con-
tinuing anti-inflation policy;
(b) Preston Martin, modified supply-
side policy; (c) Walter Wriston, ex-
pansioniit; (d) nobody = Volcker
won't quit.
19. The ally to give the U.S. the
most trouble will be (a) Japan, refus-
ing to lower trade barriers;
(b) Spain, pulling out of NATO; (c)
West Germany, turning Green; (d)
010001-5
ECH
Mexico, dumping its citizens across
our border; (e) Pakistan, developing
the Islamic Bomb.
20. Leading the polls of registered
Republicans for 1988 Presidential
nominee at 1985's. end will be
(a) George Bush; (b) Bob Dole;
(c) Howard Baker; (d) Jeane Kirk-
patrick; (e) Jack Kemp.
My own choices, betting on many
longshots, are e,c,b,d,b,a,b,b,c,d,
d,c,c,e,b,c,d,b,a,a. (That should be
hard to read.) Next year, when you
send in those "And you call yourself a
pundit?" cards, be sure to include
your own selec.'.ons: If you d'Wt
play, you can't wi n.
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 MIAMI HERALD
"', TICLE APFEARE1jApproved For Releas
s: :1ORDP91-009
ON PAGE I E
Reng ground, or a rew ;CIA.; iiitIding
earlier this year,' -President Reagan had
warm words for the world's most publi-
tized.intelligencc.:agency:
". he,work.you do each day,:is:essential-ta?'the-
surviva ^and. to the 'spread of 'human freedom
`Ahd-he told the assembled?01A'persgiinel ri
t`You=xeinain the eyes and earls of the Free World;
yoq,,arie; the trip wire ,over...ttt.hich the forces of
toi lltailan rule, eim l`}k"'-In tfreir quest for global
,,
domination.,.
=x;,
The president's speech made it clear that-then
intelligence process is an important. and' serious'
business of government.-It :l's also blg"business.-The
U.S. intelligence community, of which the CIA is
not the largest but certainly the most influential
member, employs some 100,000 people at an annual'
cost in the $5-10. billion range.
Taxpayers are-entitled to ask if. they are getting
their- money's worth.' Just, how good is U.S.
,intelligence?....,-'. ,
:There is no simple ,answers .The work of our
intelligence -and. the results are as complex as. the.
world.itself.There is plenty of sunshine but there
are areas of deep shade, too. At all times - and this
is'in' the, nature of the business - there is morel
trumpeting about--the. failures than about the
successes, ;the very continuity of which depends on.
secrecy.:
In several vital areas the U.S.- intelligence effort:
is clearly excellent in terms of quality and quantity.
For example:
? ..The CIA has been ''generally correct in
reporting and assessing the. situation in the
industrialized countries. -
? The CIA's economic and agricultural reporting
has' greatly strengthened the.,LLS. government's
hand in International negotiations.
? -The CIA did well in Vietnam; even if it earned-
political unpopularity `tlvithPresidents Johnson and
Nixon in the process. .. ~...,
? American ' inteligence gave seven years'
warning on the development of Moscow's :antibal-
listic missile system: - .
American ?intelligence:~pinpointed4 Soviet-
intercontinentaY. ballistic?-missiles : and ? evaluated
their characteristics years before the 'missiles
became operational:.: ?: > w 't :?
? Major Soviet 'subinanne -programs were
anticipated well befarethe first boats slid down the
ways. Q ?.
A . U.S. intelligence reporting `on" Soviet troop
concentrations in 1979 and the interpretation of 1
those troop, movements as a signal of planned
aggression"against Afghan1Stan ,`were timely-,and
uncannily;Z"orrect. =
? :Several secretaries of defense and knowledge=
able senators stated that the United States could
enter armament limitation talks: with-the Soviets
only as long as they- had confidence that _ U.S.
-Intelligence -could m6nitor Soviet' compliance.-
Other great successes-include the-acquisition of.
Khrushchev'S,,, secret r:speech to -the 'Soviet Party.
Congress,' the intelligence contribution-- to'-. the
resolu'tiox., of the 'Ct4ban', missile crisis 'and. the
excellent record of monitoring and predicting trends I.
in world oil markets. . !
If the above were the complete story, CIA
Director William J. Casey would be fully justified in
claiming, as he did in October, that the intelligence
community has never been in better shape. Among
the good signs, he counted new buildings, bigger
-budgets and improved morale. ' The Intelligence.
community, he said, was fit, healthy and rededicat-
ed to the community-wide exercise of excellence.
-. Chiefs of American intelligence have often
"claimed that under their particular tenure "things
have never been better." This was a regular' refrain
when-. Richard Helms was director in the 1960s,
when it' might even have been true. In October
1980, Adm. Stansfield Turner,.Casey's predecessor
at the CIA,' was confident that American intelli-
gence was providing "the best quality of intelli-
gence" and took credit "for important procedural
and organizational accomplishments" affecting the
long-term health of the- intelligence community.
.At the same time, Lt. 'ben. Eugene Tighe Jr. -
then director of the Defense Intelligence Agency -
rw -ote that the health of .tile .~J.S. military,
-.Jntelligence structure has never been better.' Its
-work 'force.-, is more professional than at any:
.previous time'. ..The The traditional jobs are being done
well."
Nevertheless, each administration since the days
of President John F. Kennedy found itself dissatisf-;
led with . the: intelligence performance. . From
Kennedy through Reagan, each president dismissed
at least one CIA director.
n `November 1977, President Jimmy Carter
complained about the quality of political
intelligence rQaching him and sent his national
security adviser to the CIA with a list of some
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ContinueQ
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30 December 1984
Get Smart, CIA
WITH a sordid twist here and a
surreal turn there, the tale of the
CIA's primer on terrorism con-
tinues to unravel. CIA Director William
Casey and his subordinates have been at
pains to explain away the infamous
manual on guerilla warfare, prepared for
the edification of U.S.-backed rebels in
Nicaragua, ever since its existence
became public. Their performance so far
recalls the old Get Smart! routine in
which Agent 86, asked to account for his
latest miscue, tests a series of implausi-
ble excuses ("Would you believe...?")
before offering a credible explanation.
First came the denials, then the
protests that the manual's prescription
for "neutralizing" Nicaraguan officials
had been misinterpreted, then the disin-
genuous apologies for the excesses of
overzealous underlings. Would you be-
lieve Mr. Casey didn't ' know a thing
about it? The CIA's congressional over-
seers remained skeptical, as well they
should.
Now, in secret testimony before the
House Select Committee on Intelligence,
CIA officials have offered yet another
version of the guerrilla-warfare manu-
al's origins. Acknowledging that the
contras have committed atrocities
against hundreds of Nicaraguan civil-
ians, the agency now insists that the
manual was intended to moderate the
rebels' behavior.
In recent weeks senior CIA officials,
rebel leaders, and private organizations
that monitor human-rights abuses- in
Nicaragua have described rebel-instigat-
ed abuses as horrific as those committed
at My Lai. Their reports have included
accounts about groups of civilians,
including women and children, who
were raped, burned, dismembered, blind-
ed, or beheaded. One rebel official
testified that the Nicaraguan Democratic.
Force, the largest rebel group, has
documented "several hundred cases" of
rebel-atrocities against civilians.
Most observers perceive all this as
another CIA public-relations disaster and
a powerful argument against renewing!
American aid to the rebels. To the CIA's
twisted way of thinking, however, it's
just another demo.-istration of the need
for continued U.S. support. Think the
guerrilla-warfare manual's prescription
for assassinating elected officials, black-
mailing ordinary citizens, and arranging
the "martyrdom" of fellow rebels is
rough stuff? the agency's argument runs.
Well, wait and see what the rebels do
when we're not there to moderate their
behavior!
What bilge! It may well be, 'as one
rebel leader candidly has acknowledged,
that "it is very difficult to control an
irregular army," and the Sandinistas
may well have committed acts equally as
heinous. But it's insane to imagine that
either side may hope to win the hearts
and minds of the Nicaraguan" people
through a campaign of terror, however
well-disciplined.
The stabilization of Nicaragua can be
achieved only in negotiations. The
United States ought to expend more of
its energies on that front and less on
trying to refine murderous thugs into
disciplined terrorists.
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NATION
29 Dec. 1984-5 Jan. 1985
DISPATCHES.
0 UNITED STATES: Wick's Last Tapes
aside from Labor Secretary Raymond Donovan, the Ad-
ministration official who has caused President Reagan the
greatest embarrassment is Charles Z. Wick, director of the
United States Information Agency. In Reagan's first term,
the press reported that Wick had given jobs to the children
of Cabinet members, had secretly tape-recorded his tele-
phone conversations and had ordered the U.S.I.A. to main-
tain a blacklist of liberals who would not be sent abroad
under the agency's auspices (among those banned, Senator
Gary Hart and Walter Cronkite). _
Wick most likely will remain director during Reagan's
second term, even though the agency is "a shambles," as
one official there told "Dispatches." Wick's attitude is one
of the major problems, as revealed in the transcripts of his
dictaphone notes recently obtained by Scott Armstrong of
The Washington Post under the Freedom of Information
Act. The transcripts cover most of Wick's tenure in office,
and though heavily sanitized, they amount to a daily diary
of his misadventures. Here are some highlights:
? In April 1981 Wick noted that he had had a long talk
with Attorney General William French Smith about the "in-
ternal threat to our security" posed by "liberalism."
? Three months later, in all seriousness, Wick reminded
himself.to contact "Arnaud de Borchgrave pursuant to Al
Bloomingdale's [the late crony of the President] suggestion
that we should have a reporting system from the various col-
lege campuses, who are at the scene [sic] now of revolution-
ary cells being established."
? After Amnesty International issued a report critical of
human rights in El Salvador, Wick asked, "How can we get
some investigations of Amnesty International to see whether
they can or?should be discredited?"
Wick is convinced that criticism of U.S. foreign policy,
stems from clever Soviet propaganda and disinformation
campaigns. "My own view is that as one Southeast Asian
leader remarked `the Communists know how to use our
media better than we do,"' he told his dictaphone. It is easy
to understand why he thinks that way. As the transcripts.
make clear, Wick's world is largely inhabited by the likes of
Rupert Murdoch, William Casey, Axel Springer, Roy Cohn,
Richard.Mellon Scaife, the Heritage and Olin Foundations,
the Hoover Institution-a -veritable Who's Who of the
moneyed right.
STAT
^ SAUDI ARABIA: The Oil Money Runs Out
Since the 1950s, whenever dissatisfaction was brewing in
the kingdom, Saudi monarchs have sought to defuse it by
promising to create a representative body. to help them
govern. Now that the Saudis are facing their first recession
in thirty years and the political pot is beginning to perk,
King Fahd al-Saud has made the ritualistic pledge to
temper his absolute rule with an elected "consultative
assembly."
It is not necessary to be a radical to see room for prog-
ress and reform in the Kingdom," wrote the U.S. Embassy's
political officer in Jidda in a confidential Airgram to the
State Department dated May 21, 1979. The officer's anal-
ysis is as accurate today as when it was written. It and other
classified documents can be found in Volume 35 of Can-
tured Documents,~published by the lran~ans wig ek ed the
U.S. Embassy in 1979:
Recent measures intended to preserve the Islamic traditions
of Saudi Arabia are mostly ineffective attempts to 'stop. a ....
stronger and deeper current in the opposite direction.....`
The government has responded to these threats by a series of
temporizing measures which will not deal with the forces
for change but which will, it hopes, placate the 'religious
conservatives.
it will need to do much more than install darkened
glass on girls' school bus windows.
Some thoughtful Saudis are asking whether they (the Saudis),
should become a permanently unproductive class whose
main function will be signing checks for foreigners.
Corruption is still a problem.... it is not certain thaE the
[royal] family possesses enough internal discipline to control"
the acquisitiveness of some of its members.
.The letter was written at the height of concern among
U.S. officials that a wave of Khomeini-inspired radicalism
might sweep through the conservative states of the Persian
Gulf. That did not happen, but King Fahd's ability.to main-
tain the status quo has declined as the Saudi economic"-Die
has shrunk. In the last three years, his country's oil revenues
have fallen from $110 billion annually to $40 billion; and
several hundred Saudi companies have closed their
doors. With the economy sputtering, some of the "poorer"
princes, not,to mention millions of commoners, are sure to
look with increased resentment on- the immense wealth of
the few major business families. .
(Note: Volumes of Captured Documents.are on 'file
with the Washington-based newspaper Iran- Times and in
the Library of Congress.)
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29 December 1984 'L ~~~l TLE1 j
SHULTZ THWARTED ON PROPOSED NOMINEE FOR HONDURAS
WASHINGTON
Opposition by conservatives has thwarted an effort by Secretary of State'
George P. Shultz to appoint a key adviser on Central America policy as
ambassador to Honduras, U.S. officials say.
Shultz's suggestion that L. Craig Johnstone replace a fellow career diplomat,
John Negroponte, in Honduras had generated heated controversy, these officials
said Friday.
Among those opposed to Johnstone's nomination were Rep. Jack Kemp, R-N.Y.,
CIA Director William Casey and private conservative groups, said the
officials, who spoke only on condition they not be identified.
But one senior State Department official told a reporter, "I would fall on
swords for Craig Johnstone. More important, George Shultz would fall on swords
for Craig Johnstone."
Shultz' backing, however, was not enough to defeat opponents who believe that
Johnstone is too much of a "pragmatist" to be entrusted with a post as sensitive
as that of ambassador to Honduras.
The officials said Johnstone is expected to be appointed to an ambassadorship
"outside Latin America." He currently is deputy assistant secretary responsible
for Central America.
A number of American ambassadors in Latin America are scheduled to be
replaced or reassigned, and the Johns tone recommendation is not the only one by
Shultz that has drawn opposition from conservatives.
During Negroponte's three-year stay in Tegucigalpa, the United States has
developed close military ties with that country, reflected in numerous joint
exercises conducted by U.S. and Honduran armed forces.
Honduras also has served as a springboard for rebel groups fighting
Nicaragua's Sandinista government. The rebels received CIA funding until
last May.
Negroponte, who is expected to be nominated as assistant secretary of oceans
and international environmental and scientific affairs, is well liked by
conservatives.
Johnstone, 42, has come under criticism from some colleagues who say he has
not shown sufficient concern about the situation in Nicaragua. Johnstone's
supporters say he has no illusions about the Sandinistas.
Officials said a successor to Negroponte has been selected but they declined
to identify him.
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WASHINGTON POST
27 December 1984
4,
io in Medical Aid
Funne1ed to Central America
By Joanne Ornang
Washington Post Staff Writer
The Knights, formally called the
A private to humanitarian organi-
zation called the Americares Foun-
dation, working with the order of
the Knights of Malta, has channeled
more than $14 million in donated
medical aid to El Salvador, Hondu-
ras and Guatemala, over the last two
years.
vThe bulk of the supplies, worth
about $10 million, has gone to hos-
pitals and clinics in El Salvador, ac-
cording to Americares' founder and
president, Robert C. Macauley. But
part of $680,000 in aid to Honduras
went to l~iiskito Indians linked to
U.S.-backed rebels.fighting the left-
ist government of Nicaragua, ac-
cording to a Knights of Malta offi-
cial in Honduras.
Much of the $3.4 million in
Americares' medical aid to Guate-
mala has been distributed through
the aimed forces as part of its re-
settl ment program of "model vil-
lages" aimed at defeating leftist in-
surgents, said the official, Guate-
malan businessman Roberto Alejos.
Prominent in the U.S. end of the
operation are businessman J. Peter
Grace, head of the W.R. Grace con-
glomerate and chairman of the
American division of the Knights of
Malta; attorney Prescott Bush Jr.,
brother of Vice President Bush;
former treasury secretary William
E. Simon, and Macauley, a New
Canaan, Conn., businessman.
Among the 1,750 U.S. members
of the Kni hts are CIA Director
Wilharn . sev. former_ secretary.
of state Alexander M. Haig Jr. and
jormer secretarv of health, educa-
tion and welfare Joseph A. Califano,
t Pugh they apparently are not
inv)ived in the Americares effort.
j_r,rmer national security a fair
adviser Zbigniew Brzezinski is hon
oy chairman of Americares'
board of directors.
"Sovereign Military Hospitaller Or-
der of St. John, of Jerusalem, of
Rhodes and of Malta," was founded
in 1099 to aid the wounded and to
battle Moslems during the Cru-
sades. Based in Rome, the devoutly
Roman Catholic order has 10,000
members in 42 nations and is rec-
ognized diplomatically as the
world's only sovereign nation with-
out territory. It has ambassadors in
40 countries. Medical aid thus can
be moved through diplomatic
"pouches" into needy countries
without going through customs,
Grace said in an interview.
The Americares program is
among the largest of dozens of pri-
vate relief efforts in Central Amer-
ica. Under the Reagan administra-
tion, the U.S. Agency for Interna-
tional Development-is trying to en-
courage private involvement in for-
eign aid worldwide, partly to bypass
bureaucratic tangles in the receiv-
ing nation and partly to avoid the
strings that Congress often ties to
federal programs.
Alejos, co-chairman of the
Knights of Malta in Honduras, said
in a recent interview with freelance
reporter Peter H. Stone that "some I
of the [Americares] aid went to the
Miskito Indians" there. Congress
has banned U.S. aid to Nicaraguan
rebels, called "contras" and based in
Honduras. The Miskitos are divid-
ed, but several tribes have joined
the rebels.
Alejos said eight Honduran hos-
pitals have benefited, including one
in the Indian area called Mosquitia.
In Guatemala, Alejos told Stone,
the Guatemalan army delivers
Americares medicine to people in
the model villages, which are along
the Mexican border.
AleZos, a ma or su ar and coffee
grower, eat is uatemalan es-
tates to the Central Intelligence
eency fn 196 to train Cubans for STAT
the Bay of Pigs invasion.
But all officials contacted insisted
that neither the Knights nor Amen-
cares has any political involvement
in Central America. Both groups
have extensive- histories of chari-
table work, particularly with refu-
gees in Pakistan, Afghanistan and
Poland.
Grace said he started the medical
shipments to Central America in
1983 by calling Macauley and sug-
gesting that Americares and the
Knights of Malta work together
there. Bush and Simon, members of
the Americares advisory commit-
tee, help to raise funds and obtain
free medicine.
Grace, Bush and Macauley said
there is no link between their effort
and Reagan administration policy in
the region. '
Instead, they said, they "beg"
free or nearly free medicines and
equipment donations from major
U.S. companies and wangle cut-rate
shipping to Central America. The
aid then is distributed to civilian
hospitals, clinics and medical cen-
ters by local Knights of Malta mem-
bers, who generally are well-to-do
businessmen, lawyers, doctors or
others with such facilities as ware-
houses, trucks or planes at their
disposal.
Such people do not tend to be
sympathetic to leftest guerrillas,
and critics charge that medical and
humanitarian aid helps the Salva-
dorans and the Guatemalan govern-
ment fight the rebels by freeing
other money to buy arms.
"On that basis you'd never be
able to help anybody anywhere,"
Macauley said.
Medical companies whose offi-
cials have praised Americares as a
low-overhead, efficient operation to
which they donated medical sup-
plies include the G.D. Searle & Co.
of Skokie, Ill.; Sterling Drug Inc. of
New York; Merck & Co. Inc. of
Rahway, N.J., and Richardson Vicks
Inc. of Westport, Conn.
Macauley said his foundation has
received donations from the top 40
or 50 U.S. medical companies,
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ON PAGE ' pp 29 December Z9~4
"I am not an apologist for. this or any other administration-:"
By Wayne Barret Four days later Reagan dominated a
Archbishop John . J.' O'Connor has dinner that honors a Democratic gover-,
made God a registered Republican. nor but '.has become a rich Republican!
O'Connor registered as a Republican event. Sitting between Nancy and Ron-,
himself in October 1980, just, a month aid Reagan was industrialist J. Peter
before Ronald Reagan's first election, us-? Grace, the archdiocese's leading Catholic
mg his sister's home in Pennsylvania as 1Pyman, who is now spending millions on
his address. Checks with half a dozen the-baby-pays-for-the-deficit television
election boards in the cities where O'Con- ads to publicize his own fanatical, bud-
nor has lived and a protracted stirring of get-bombing conservatism. A matter of
O'Connor's vague memory suggest that some recent controversy because o Mis
the archbishop has, to the degree that corporate ties to a .Nazi war crimin and
be's been registered at all, stuck with his much publicized description of food
God's Own Party since 1946. Two weeks stamps as "basically s Puerto Rican pro-
after he caused such a fuss over Demo- gram, Grace has lone been associated
cratic vice-presidential candidate Geral-. with CIA linked enterprises like Radio
dine Ferraro's abortion position, he regis Liberty, Radio Free Europe, and the
tered in New York for the first time and agency's Latin American conduit, Ameri-
changed his party affiliation to can Institute for Free Labor Develop
independent. ment. Grace now chairs a commission-
'
thee President
s Private Sector Survey on
Cost Controls-that has undertaken
what Reagan calls "the largest effort of)
its kind ever mounted to save tax dol-
lars
On the Campaign Trail Next to the archbishop was Clare
The focus on the Ferraro flap has ob Booth Luce, the matriarch of the Catho-'
scured O'Connor's broader role in the na- lic right wing in America, a former am-
tional 'politics of 1984. In light of new bassador to Italy and a current member'
facts, that chronology merits a detailed of the president's Foreign Intelligence'
retelling:. Advisory Board, which oversees covert
operations. Grace and Luce were mem-
bers of a board chaired by O'Connor
since 1982-the PopC John Paul II Cen-
0 O'Connor's mid-October timing ter of Prayer"and Study for Peace. In~
could not have been better for the Re- addition to such prominent local Demo
publicans. A month earlier the archbish- trans as the governor and the mayor
op- had scheduled an October 15 major -O'Connor's head table also included cur-
address in New York, responding to Gov- rent CIA dire tor William Casey arid for
ernor Cuomo's Notre Dame speech and met reasu sec-etarv William Simon,
entitled, "Human Lives, Human Rights,"; one of the leading forces in the current
He could not then have anticipated that Catholic laymen's attack on the national
Walter Mondale would at that same time bishops' progressive pastoral letter on the
decline his invitation to the annual Al economy.
Smith dinner and ask that Ferraro sub- "It's clearly a biased dinner," said!
stitute for him. In view of what O'Connor Democratic historian Arthur Schlesinger
had already said about Ferraro, it- was no Jr. "When Cardinal Cooke was there it
surprise that the archdiocese's dinner . was a very nonpartisan thing. But Admi-'
committee declined to let her speak. The' ral O'Connor is clearly a Reaganite and
two stories broke the same day: O'Connor he's trying to transform a fairly nonparti-
made his strongest antiabortion pitch son event into a Reagan rally." In fact,
ever (87 references to abortion and 32 to the dinner had become increasingly Re-
the unborn in a 30-page speech) and the publican prior to O'Connor's arrival-
committee nixed Ferraro. Even the Post's GOP gubernatorial candidate Lew Lehr-
headline juxtaposition of the two events man got top billing at the 1982 dinner-
was justifiable. but the Ferraro rejection was the culmi-
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 1 ~
As Shultz Shuffles State llevart-.
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WASHINGTON POST
23 December 1984
Conservatives Suspicious Ptirge
Moderate Envoys, Policy Makers Risk Hard-Line Challenge
By John M. Goshko and Lou Cannon
Washington Post Staff Writers
Senior State Department officials
insist that it is nothing more than
?the normal: personnel reshuffle at
the start of a new presidential term.
But Secretary of State George P.
Shultz's plan to put a number of
new faces "in key embassy and policy
posts is threatening to cause a ma-
jor challenge from conservatives
who suspect he is trying to gain
total control over the administra-
tion's foreign policy machinery.
At issue is a projected series of
changes that would install new am-
bassadors in about one-third of U.S.
embassies. It also would enable
NEWS
ANALYSIS
Shultz to replace
roughly four to six of-
I ficials at the assistant j
secretary level, most of them po-
litical appointees inherited when he
took office 21/2 years ago.
The big question is whether the
conservative challenge can gather
enough steam to force Shultz into
-abandoning this ambitious round of
musical chairs within the State De-
partment. Whatever the outcome,
.Shultz seems destined to be marked
;.; by conservatives as an adversary.
,, - After meeting with' Shultz Friday,.
.President, Reagan appeared to come
.down on the secretary's side. :When'
--reporters asked about complaints
.,.that Shultz is "stacking the State
-Department-with -moderates," the
president replied:
"I have read all of that and, n6,- it'.
is not true. He and I have met and
discussed all of the changes that are
being made and most of these are
just rotations. The individuals are
going from one place to another. It
_, just isn't true .... There's a limit
to how long you prefer to leave,
particularly the career ambassadors
.in one ... place."
White House officials said the and replacing them with career
president's answer was in line with Foreign Service officers who have
his usual approach of delegating no special loyalty to Reagan and are'
considerable authority to his prin- more susceptible to the secretary's
cipal Cabinet officers and avoiding control.
becoming involved in how they run The charges and denials have left
their departments. a cloud of confusion. But conserva-
As a result, these officials said, it tives clearly perceive important
would be highly uncharacteristic for ideological issues at stake.
Reagan to countermand what are The controversy first broke into
essentially middle-level personnel public view. on Dec. 11 as Shultz
decisions. However, the officials was leaving to attend the NATO
also said that if the groundswell of meeting in Brussels. On that day,
conservative anger continues to syndicated columnist Joseph Kraft
build, the' president could be con- published an article saying that
fronted with a new ideological bat- Shultz intended to control foreign
tle between the conservative and policy with "professionals in the
pragmatic wings of his administra- State Department-not superstars
tion. from outside."
In discussing the shifts last week, Kraft detailed areas where Shultz
department spokesman John allegedly is determined to have his
Hughes= denied that the changes own people in charge. They ranged
have any ideological motivation. He from such top-priority subjects as
insisted that Shultz's "primary arms control and the Middle East
criterion . . is getting the best down through obscure corners of
possible people to carry out the im- State Department business and.
plementation of the president's for- even included a fist of assistant sec.
eign policy" retaries who "came to State from
But, in the view of conservatives, competing power bases" and who,'
,the secretary 's real, purpose is not Kraft concluded, were "good
to implement the hard-line policy bets . , to be leaving soon."
stances on which Reagan twice The people he mentioned as ripe
;campaigned. successfully for the for being purged are largely un-
presidency, but to bring them more known outside the department and
;into line. with the views of those foreign policy circles. But they
administration moderates with shared the common bond of iden-
whom Shultz is identified. tification as staunch conservatives,
' - --- and the Kraft column thus touched
In particular, the conservatives _ off a firestorm among like-minded
suspect' the so-called- Shultz faction figures in the administratiop"?and
of maneuvering to soften Reagan's Congress.
approaches to arms control and the In the ensuing days, while Shultz
threat of communist penetration in was in Europe, a counterattack was
Central America. mounted through private calls to
As a result, they have been com- the White House and a public re:
plaining privately to the White course to the press. Monday, a
House that Shultz's real aim is to, week after the Kraft report ap-
change not personnel but policies, peared, Rowland .Evans and Robert
by purging the State Department of Novak, whose syndicated column is
political appointees ideologically a popular outlet for conservative-in-
attuned to the president's '
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 Approved For Release 2006/01/17 : CIA-RDP91-00901 R000400010001-5 2.
spired leaks, wrote that Shultz, )
egged on by young Foreign Service
officers, was purging Reaganites
with a vehemence intended to, make
clear "that outsiders are no longer
welcome at the State Department."
"With Shultz now in the close em-
brace of the Foreign Service, the
president's diplomacy is likely to be
turned away from his own strong
ideological convictions on the world
struggle," Evans and Novak con-
cluded. Conservatives have ' since
been making abundantly clear to
other reporters their conviction
that-the ideological soul of the ad-
ministration's foreign policy,- is at
stake. . .
"This was a purge. from top to
bottom, not a normal personnel
'switch," said one important admin-
istration conservative in reference
to what his allies are calling "the--
Christmas massacre." He added,
"The impact of these moves would
be to change policy in Central
America by putting in moderates
who are opposed to the president's
policy and who would undercut it."
This source said that in the past
week "there have been lots of calls
I- in protest from personal friends of
the president and from congress-
men and senators." Among those,
who have been most vehement in
their protests, he said, were Sen.
Jesse Helms (R-N.C.), the dean of
Senate conservatives, and Rep. Jack
Kemp (R-N.Y.), the ranking minor-
ity member of the House appropri-
ations subcommittee that deals with
foreign aid.
An aide to Kemp confirmed that
"Jack has let the White House know
that, he has significant problems
with this." The aide said Kemp was
disturbed by the "entire panoply of
the changes,". As examples he cited..'
Shultz's intention to replace James
Theberge, the ambassador to Chile,
who advocates. coaxing the military
government there toward democ-
ratization through friendship rather
than confrontation, and John D. Ne
' groponte, who is slated to be'sup-
planted in the Honduras embassy by ' i
L. -Craig Johnstone,- deputy assist-
ant secretary in .charge of Central
American affairs;
Kemp "sees people who have loy-
. ally followed Ronald:, Reagan's pot
y'icies.being summarily dismissed and
replaced by others who do not sup-
port those policies. So he can only
conclude that Shultz has decided to
engineer a shift of our policy in Cen-
tral America,".Kemp's aide said.
Such charges have`caused both
consternation and bemusement at
the State Department, where . sen-
ior officials "scoff at the suggestion
that Shultz is masterminding a sur-
reptitious plot to delude Reagan
into changing his foreign policy.
While acknowledging that Shultz
"intends to be. in command of his
personnel situation," they insist that
the shifts have no purpose other
than'what'has been stated public.
,.ly-more,effective implementation
of Reagan policy.
According; to department offi-
cials the changes involving ambas-
sadors result from a number of con-
siderations, including a plan pro-
posed several months ago by Ron-
ald I. Spiers, undersecretary for
management, for more systematic
rotation at three-year. intervals of
the heads of missions abroad.
Ambassadorial changes will be
made because some individuals
have requested new assignments,
some 'have been in their posts for
several years-and some are serving
in countries `where local circum-
stances, such as changes in the po-,
litical climate, make it advisable for
the United.States.to be represented,
by a fresh face, officials said,
That, they noted, is the situation
in 'Chile, where mounting discon,
tent with President Augusto Pino?..
chet's government is causing the'
administration to reassess, the pol-
icies with which Theberge has been
associated.. .
Regarding Honduras the officials
pointed out. that Negroponte has.
served almost four years in what is
regarded as a hardship post and, far
from being cast.aside, is slated to
become-an assistant secretary.
The contention that his tentative-:$
:jy. designated successor, Johnstone;=
is being sent to Honduras to change
policy evokes -angry denials from
department officials. They point out
that Johnstone, as the operating
boss in- Washington of Central
America activities, has been closely
associated, with the same policies
for which the conservatives praise
Negroponte and has been criticized
frequently by liberals as an apolo-
gist for administration policy.
Department officials also insist
that Shultz's decision to get rid of
some political appointees was based
not on their ideological convictions
but on his feeling that they aren't
doing their jobs satisfactorily. By
contrast, they noted, several other
political appointees with strong con-
servative credentials, among them
William Schneider, undersecretary
for security affairs, and Edward J.
Derwinski, the counselor of the de-
partment, are given high marks by
Shultz and remain . firmly en-
trenched.
In hindsight, some department
officials. say the timing of the pro-
posed personnel changes was. un-
fortunate. It domes when the prob-
able departure of such hard-liners
as U.N. Ambassador Jeane J. Kirk-
patrick and counselor Edwin Meese
III will make it more difficult for
those conservatives who remain, .
such as Defense Secretary Caspar
W. Weinberger and CIA Director
William J. Casey, to influence White
House:policy.
Shultz's recent success in having
Paul A. Nitze chosen as his special
adviser for the upcoming talks with
the Soviet Union on arms control is
widely regarded in conservative
circles as the first signal of their
waning influence. They 'regard
Nitze as a Shultz agent, responsible,
to the State Department.
Shultz's essentially apolitical and
pragmatic approach to choosing
subordinates does not leave room
for an ideological litmus test in
making appointments. He has
shown a preference for bright
young officers from the career For-
eign Service and trusted old cronies
from the academic world.
"Shultz's predilection is for peo-
ple with a great deal of expertise in
their subjects, people who can staff
a problem, give him all the pros and
cons of the various options for a
solution and; once he's decided on a
course, 'So back and implement it,"
one department official noted. "He
doesn't ask if they're Republicans
or Democrats or who they voted for
in the last election. He figures that
ultimately it's him, not his subor-
dinates, who has responsibility for
ensuring that what's done conforms
to the president's wishes."
>r9rtirrt:~d
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 Approved For Release 2006/01/17 : CIA-RDP91-00901 R000400010001-5
Given the convergence of all support could be critical if conser-
these factors, it probably was inev- vatives like Helms, the committee's
itable that conservatives would see second-ranking Republican, try to
the personnel reshuffle as a sinister use the Senate confirmation pro-
grand design. And, some White cess to obstruct new appointees.
House officials say, ' privately, the Some administration sources said
State Department compounded the . Shultz also might find it expedient
problem by not showing sensitivity.. to soothe conservative anger by
toward conservative concerns. making a tactical retreat on some of
DuringShultz's absence in Eu- the proposed personnel changes.
rope, the officials say, Deputy Sec-' -But, the sources added, it seems
retary Kenneth W. Dam did not unlikely that Reagan will risk un-.
consult and reassure those in the dermining Shultz's authority on the
White House and Congress who eve of his Geneva meeting with So-
were most likely to be concerned. viet Foreign Minister Andrei A.
The result was'a barrage of conser- Grompko. 'Instead, they suggest
vative criticism. tliat..conservatives.who are furious
Since - then, Shultz has moved with the secretary will have to wait
swiftly to repair the damage. In ad- for a more 'opportune moment to
dition to meeting with Reagan, he try to rein in his authority.
talked G. Lug at er f length
R-Ind.) with , incoming nc Sen. Richard
ming hair-
man, of the Senate Foreign
tions Committee, to assure him that
the personnel changes will not
mean changes in policy. Lugar's
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 STAT 11Z 7, i A c roved For Release 20 1 RDP91-00901 R00
22 December 1084
...On Feb., 1944, the firs`i regitla,,
weekly issue of Hus1AN F\`E`\'TS made
the light of days,--and Ht'M A'`, -EVENTc
has not stopped publishing since. Tbc
core of the issue' was built around a
crisply reasoned essay written by prom-
inent historian and journalist William
Henry' Chamberlin, titled, "Stalin,
Pravda and Churchill" (see page 20).
A former Moscow correspondent for
the Christian Science Monitor, 'Cham
berlin was right on the button- about
Soviet perfidy, even at this early date.
then so many of America's intellectu-
als and policymakers were still infatu-.
ated with communism.
He-.accurately depicted Stalin's-cold'
and -cruel character, noting that even
,. Lenin had deeply distrusted him. Here
counted how Stalin feeling his oats
IiU'~7A!~ EVENTS came off the press
sharply challenging the "Soviets are
sweet" policy pursued by FDR and his
'State Department, but within' a few :
years it had also developed a reputation
as,aImore broadly based conservative` -
weekly. It was not only known for its
vigorous anti-Communist views, but its
[pro-free enterprise positions, its sharp
Wick's background -itself is inter-
esting. Born in Bowdle, S.D., on
May 11, 1897 - he was two years older
than "Hanighen' -- he embarked on a
lifelong career-in-the newspaper field
shortly after graduating cum laude
from the University of Minnesota in
Aside from owning with his.brother
Milton a number of small-town news-
papers, Wick had been editor of a
prominent Prentice-Hall newsletter,
had been active in Republican, politics
(he was on Gov. Thomas Dewey's 1944
presidential research staff) and had
even been enterprising enough to ob-
tain an interview by cable with Joseph
Stalin in 1952.
?" ?? - r - -- - - - ! 1955 and: under his influence HUMAN
Eitizel'ha or, its skepticism of the United.,
Nations, its abhorrence of the Socialist 'l EVENTS became even-more activist, and
.turn of the Democratic party, and its through his promotional. techniques,-
:adamant opposition to the federal -~ he -eventually lifted 'the : publication's
funding of the welfare state and circulation-to over 100,000, although
increasing federal intervention in state- much of this was "soft" circulation
And local affairs: that had been run up on "dollar trial"
'
That HUMAN EVENTS would become gimmicks.
a flagship for conservatives was not evi- Under''Wiick, HUMAN EVENTS held
during the ar had turned4hh&BtiUsh dent from the background and early semi-annual political: action. 'confer-
.-away from supporting in:igosiavia inclinations of ilk, founders. The mov- ences' in 1961-63 and- ran a summer
"the Monarchist;.General Miltai1=: ing spirit behind HUMAN EVENTS, Joumalism school. He expanded the size
ovitch" -to backing;-"the Communist;. Frank Hanighen, was a native of Neb-- of HUMAN EVENTS in 1963, :tut-ning it
1-2 raska and a graduate of Harvard in the from a newsletter into a.16-page tabloid
Marshal Broz [Tito] "
He showed howStalin vtas eager to 1920s. _that,eatured syndicated- columns and
devour Poland, accusing the ruler...of-' A tall, impressive-looking man, he "focused on political races
Russia of "treating Polahd?like a vassal;' co-authored a book called Merchants ,Both Hanighen and Wick died in
state." Stalin,:lienoted, "is ridinghigh of Death in the early 1930s, which lam- 1964; '.:and HUMAN :EVENTS was then
in this period of Russian military suc- : basted the American munitions in- temporarily run by Jim Wick's brother,
cess. Laying-~.plan s foi ::dependent; dustry and took several swipes at the lgi1 -In 1966, with an assist from
regimes in Poland, the Baltic andcapitalist system. There was even a ? '-
' fuzzy-minded now CIA Director William Case;% Tom
Balkan state . ts, he allowed, Just one.. pitch for world govern- inter,. the eattor, Allan
of his minor: reoccu ations,". ment in the book, and it was a work yskind, the
p - P s: ?. apito Hill. actor' and Robert K
e -
-- - -. -. ... !:' ~.?::raT'. flint T-Iani~han 1~imcalf ri:ri .~... h...~? ..{ .. p
HOMMAN EvE1--rS; :: can .be. considered - in his later years. Hanighen was asso-
remarkabl~;prescientabout the grow-= 'c'rated with a number of other liberal
ing danger;the:'Soviet Union, posed to ::'causes as -well:
lier
the West' .in-: this era. of.. an ear
= Robert .7-. Latha
"detente;" .:when the " U S; and the He had also, been a. foreign cor- m -joined. -the organi-
USSR were supposed to be bosom allies 1 respondent for the. old New York Eve- thnthe 1963, having
al Intelligence served:
.ping Post and the New York `Times in Agency
in the war against.Nazi Germany? the 1930s, and held down asimilar post- from 1947? until his employment. at I
This insight into the nature of tion.for the Reader's Digest during thew HUMAN EVENTS. Latham, who arrives
the Soviet. Union, an insight re- earl.yiyears of World War,I1 in his office at.6 a.m. every workday,
fleeted in many other significant , has a host of duties, including respon-.-,
articles, must be considered one of j In 1954, Hanighen asked Jim 'Wick
the paper's important contribu- _ to come to Washington to become
tions to history, for .there were executive publisher of HUMAN EVENTS.
fewer than a handful of publica- Because Hanighen ' had become con-
tions in this time period that accu- cerned over his health he had devel-
rately portrayed the aggressive im- oped signs of high blood pressure-- he
pulses of the Kremlin. .and Wick worked out-an arrangement'
EVER " rom the Wick estate:
~:r.3:::r?9;rd:9:~:ys:d:9:
The hard-working"-Managing Editor,
sibility for laying out the issue, proof-
reading, contacting authors and clean-
ing up mistakes -on the copy. Without
his daily presence, the issue would never
get out on time.
Approved For Relopsg12906f j/;killJl rbgpAV1 R000400010001-5
EVENTS should anything happen to
Hanighen.
 ON PAGE eA ...
ARTICLE AppEAREOpproved For Release 2006/ C DF~~400901 ROOq
Shuitz's rise as a policy-maker worries
right vying
ANALYSIS
By Henry Trewhitt
Washington Bureau of The Sun
WASHINGTON.- Slowly Secre-
tary of State George P. Shultz is
emerging at -the forefront of a more
flexible foreign policy - involving
both personnel and strategic deci-
sions - that conservatives regard as
a betrayal of President Reagan's
original goals.
A State Department official deep-
ly committed to the secretary cites
as evidence personnel changes that
have favored career diplomats at
the expense of political appointees.
An arms-control specialist sees Mr.
Shultz at the cutting edge - so far
- in preparing positions for negotia-
tions with the Soviet Union that
"more and more take into account
the interests of both sides."
The two issues are at the heart of
an intense internal struggle that is
not yet settled and, in some respects,
will not be for months, although Mr.
Shultz is moving confidently. So far
the public evidence is limited.
On the personnel front Mr. Shultz
has fired only one shot across the
bow of the right wing. It came in the
appointment this week of career
minister Morton I. Abramowitz -
who until then had been marking
time in a backwater of arms-control
negotiations - as State Department
director of intelligence and re-
search.
The appointment, a senior one
that does not require Senate confir- I
mation, amounted to open defiance
of1eitat9.r Jesse Helms (R, N.C.), a
co' s3ative pillar. Mr. Abramowitz
in' f et was exiled earlier after Mr.
H44blocked his assignment to a
drei A. Gromyko in Geneva next
month. The bypassing of Edward L.
Rowny, the negotiator favored by
the right wing, was described by one
conservative as "ominous."
As preparations for the meeting
continue, the secretary reportedly
heads a group that favors maximum
flexibility. That group would offer
the Soviets at least a token induce-
ment, a symbolic concession, to en-
courage serious negotiations and
soothe world opinion.
Edwin J. Feulner, Jr., president
of the Heritage Foundation, a con-
servative think-tank, worries that
President Reagan has given Mr.
Shultz too broad a mandate. The sec-
retary, Mr. Feulner says, "knows
this town as well as anybody" and is
exploiting that mandate to the full-
est.
For one thing, he argues, Mr.
Shultz is moving at a time when
some conservative officials are
otherwise engaged: Edwin W. Meese
III, the White House counselor, is
preparing for hearings on his nomi-
nation to be attorney general; De-
fense Secretary Caspar W. Weinber-
ger and CIA Director William Casey
"have been isolated."
Mr. Feulner is concerned that the
president. has given Mr. Shultz a free
hand in personnel , matters, telling
him, "It's your shop." Moreover, an
aide to Mr. Shultz says he believes
Mr. Reagan assured the secretary
that Jeane J. Kirkpatrick, a conser-
vative Democrat who is outgoing
ambassador to the United Nations,
would not reemerge in a position to
challenge Mr. Shultz.
There is no public evidence that
either Mr. Weinberger or Mr. Casey
feels he has been skirted. Only two
days ago Mr. Weinberger reaffirmed
total support for the president's
Strategic Defense Initiative (SDI), a
concept emphasizing space defenses.
Mr. Reagan has been "eloquent"
in favor of SDI, Mr. Feulner re-
marked. But he voiced concerned
.that Mr. Nitze, and perhaps Mr.
Shultz, "have less of a commitment
to it." In that light, he said, "the lit-
tle things become important," such
as whether it is Mr. Nitze or Mr.
Rowny who joins Mr. Shultz in the
pending negotiations.
On all these issues, he said, "Per-
sonnel is policy."
But Robert Hunter suggests that
Mr. Feulner may be prematurely
alarmed. Mr. Hunter was a foreign
policy adviser to President Jimmy
Carter and now is a scholar at the
Georgetown Center for Strategic and
International Studies.
"I wonder if we're not assuming
too much too soon," he says, in
ascribing success to Mr. Shultz "at a
number of things I would approve f
of." He acknowledged that "in Wash-
ington scuttlebutt the secretary
seems to be riding high."
But he forecast a severe test of
wills when Mr. Shultz's appoint-
ments go to the Senate Foreign
Relations Committee - of which
Mr. Helms is a member - and as
terms for negotiations with the Sovi-
ets are refined. He also foresees a
similar test when the administration
decides whether its goal is to over-
throw, or merely to contain, the left-
ist government in Nicaragua.
Mr. Shultz is widely assumed to
favor containment. Many conserva-
tives say that is not good enough,
and Mr. Feulner, for one, iscon-
cerned that pending personnel I
changes mean the adoption of the
softer line.
ne'ostor known for pragmatism,
to be`his `senior adviser when he
m?ets'~Sdviet Foreign Minister An-
ozis embassy.
'_. ~baPartment sources have
le c ;, word of other pending
c} 4 They will include the re-
pl e,ier t of Curtis Winsor, Jr., and
Jai D - Theberge, non-career am-
b.to Costa Rica and Chile,
by'reerForeign Service officers.
rirms control also, the most
vib sign of Mr. Shultz's approach
is movement of personnel. He
h of sen Paul H. Nitze, a veteran
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 wY
rove. For Release 2006I1 10111\ l"~ -00901R00
1\L1
21 Decerrber 1984
Conservatives Assert
State Dept. Changes
Imperil Latin Policy
By BERNARD WEINRAUB
Special to The New York Tines
WASHINGTON, Dec. 20- President
Reagan has been warned by some of
his conservative advisers of a potential
softening of the Administration's poli-
cies in Central America If plans by Sec-
retary of State George P. Shultz for
sweeping diplomatic changes in Latin
America take effect.
At least a dozen ambassadors,
mostly political appointees, are sched-
ules to be replaced by Foreign Service
officers, Administration officials said
today. The move, coupled with the
planned departure of key State Depart-
ment personnel who are also political
appointees, has stirred an angry re-
sponse from conservatives in the White
House and elsewhere in the Adminis-
tration as well as Congress.
'A Big Turning Point'
"George Shultz has decided to step
out to see how much control he has," a
ranking Administfation official said.
"It's really brutal. The President has
no Idea of the extent or depth of the
changes."
The official added that Mr. Shultz's
personnel moves were "a big turning
point" and. "a purge."
Another ranl',.ing official, sympa-
thetic to Mr. Shultz, said, "Shultz has
made a decision that he is going to run
his department."
"He's been saddled with a lot of the
Haig people and a lot of people Haig
was saddled with," the official added,
referring to former Secretary of State
Alexander M. Haig Jr. "I suppose
there is a lot of resistance from people
in." the White House but I don't believe
,its going to be successful." ~' .
Mr. Reagan is scheduled to meet Mr.
Shultz on Friday in part to discuss the
shifts and their impact on policy.-
Although the planned moves by Mr:
Shultz involve personnel'- at least a_
dozen ambassadors and three Assist.
ant Secretaries - conservatives in the
Administration and Congress view
them as marking a turn in foreign poli.
cy, especially in Central America, be-
cause many of the departing officials
are regarded as hard-liners who are
being replaced by career diplomats.
The scheduled departure of J. William
Middendorf 2d, the delegate to the Or.
ganization of American States, has
especially upset me cons tfv
'A Policy Purge,' Kemp Says
A senior Administration official
said: . "The President has talked to
many people on this. George Shultz has
spent all day today on damage con-
trol."
The official said that such Republi-
can members of. Congress as Senator
Richard G. Lugar of Indiana, chair.
man of the Foreign Relations Commit-
tee, Senator Jesse Helms of North
Carolina and Representative Jack F.
Kemp of New York were' especially
upset at the possible softening of policy
as a result of the planned moves.
"I've heard it called a personnel
purge and I call it a policy purge," said
Mr. Kemp, the ranking Republican on
the foreign operations panel of the
House Appropriations Committee. "I
view what's going on with serious con-
cern and alarm and if these changes
take place I think It'll jeopardize the
Administration's aid program."
Mr. Kemp said that his concern and
that of other conservatives "has been
conveyed to the President." One key
Administration official upset a55utt t re
rsonne moves, d William J.
Casey a ent~allntelll-
ence had voiced displeasure over
em an express concern about
cv. But aides said Mr Casey had not
voiced his concern directly to Mr . Rea-
An Ideological Dispute
Other Administration officials said
that Edwin Meese 3d, counselor to the
President, and Secretary of the In-
terior William . P. Clark, a personal
friend of Mr. Reagan and former na-
tional security adviser; had conveyed
their worries to the President. -
On one level, the dispute involves the
manner in which many of the political
-appointees are being removed from
their current jobs. '.'People were hear-
ing in the corridors that they were
being fired," an Administration official
said. "They requested meetings with
the Secretary and they were steered
away." . , ..
On another level, however, the dis-
pute is an ideological and political one,
centering on the impact of the changes
on policy'in Central America.
What especially concerns Adminis-
tration conservatives is the move to re-
place the Ambassador to : Honduras,
John D. Negroponte, considered a
hard-liner. with L. Craig Johnstone,
the Deputy' Assistant Secretary for
Central America. Mr. Johnstone, a ca-
reer officer like Mr. Negroponte, is
viewed, at least by some conserva-
tives, as expressing views "not very
tough" toward the Nicaraguan Govern-
ment. .
Mr. Negroponte is moving to the
relatively low-profile job of Assistant
Secretary of State for Oceans and In-
ternational Environmental and Scien-
tific Affairs. -
Sharply Divided on Policy
Over the last year the Administra-
tion has been s v vi over n-
fral Am erican po cv, w ME '`ures
aS Mr. Casey Ste - n~ a cants m
Dolicv that would withdraw diplomatic
reco~:lttion tram the sanauust cov-
extend ao t.
ernment of Ni and
tern Lionca a rebel
2ca ., .
rtes E-Al a an
p. y
n SI t-. 8,4 aS~'t1 Qr DV?LS1
ogOdi'-fomatic negotiations with the
-Sandinistas na rt ar y $
g_reSS re er to crnn xpgte aid to they
"The entire pattern of the way this
was done has stirred up concern," one
Administration official Said. "A lot of
the changes happen to be concentrated
in the Latin American and Central
American region and happen to affect
many of those ambassadors that have
taken a position in support of the Presi-
dent's policy. Hence the concern."
Although another Administration of-
ficial said the planned changes raised
conservative concerns about an accom.
modation with the Sandinista Govern-
ment - such as an agreement to halt
supporting the rebels if the Nicaraguan
Government agreed to "stop exporting
revolution" - State Department and
some Administration officials brush
-aside the notion of a shift in policy.
"I think this has gotten out of hand,"
said a senior State Department official.
"I don't see any policy implications in
this at all. With some people it's time
for them to rotate to other jobs. Others
_ are retiring or want to leave and with
others it's a question of competence."
A high-ranking Administration offi-
cial said: "Policy is not determined by
a few ambassadorial changes. We are
starting a second term and the remark-
able thing in this is how few changes
there have been until now. This is over-
.-due and does not mean a change in poli-
But another official, noting that at
least a dozen diplomats in Central and
Latin America are scheduled to be re-
placed shortly as wi l as several key
State Department officials, said: "Per-
sonnel means policy. Anybody who
doesn't see these changes as having an
.influence on policy has got to be very
nalve or crazy."
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^Fl;:? f, aEARED
kola .. l~(_L
WASHINGTON POST
20 December 1984
State Intelligence CiLlief, .e"n"k
Conservatives Fear Shultz Launching Departmental Purge
By John M. Goshko and Lou Cannon ant, and James L. Malone, assistant ting away from the interagency
Washington Post Staff Writers secretary for oceans and interna- method of making decisions and to
tional environmental and scientific personalize it by arranging things
`Career foreign service - officer affairs. '?` so that decisions will be made on an.
Morton I. Abramowitz yesterday The purge charges were denied informal, personal contact basis be-
was named the State Department ss -by department spokesman John tween him and like-minded White
director of intelligence in what Hughes. He refused to discuss the . House moderates such as chief of
some conservatives fear is the start'. status of specific officials, but said: staff James A. Baker III and deputy
of a drive b Secretary George P. "The primary criterion the sec- chief of staff Michael K. Deaver."
Shultz to purge the department of retary has utilized is getting the This official expressed con rn
its more ideological political aoooin- best possible people to carry out that the probable de arture from
tees, the implementation of the presi- White House policy councils of such
Department sources revealed dent's foreign policy regardless of hard-liners a U.N. Ambassador
last week that Shultz was planning where they come from, and he will Jeane 11. Kirkpatrick and counselor
extensive shifts of ambassadors do that." Edwin Meese III will make it more
abroad and policy makers here at Hughes also said that "in the rec- difficult for those conservatives
the. assistant secretary level. Con- ommendations made there is no who remain. such as Defense Sec-
servatives quickly discerned in this change at the assistant secretary retarv Caspar W Weinberger and
an-effort by Shultz and career aides level in the present career versus CIA Director William Casey to
to dump some of the more zealous noncareer ratio. As for presidential influence the process.
among the department's appoin- appointees, obviously the secretary Fueling the conservative anxiety
tees. makes recommendations to the was an article published last week
The conservatives, who voiced president. Those recommendations by syndicated columnist Joseph
their fears privately to the White are fully discussed in the White Kraft.
Horse staff, were especially fearful House and the president makes the It said that Shultz intended to
that Shultz had targeted for remov-
al ultimate decision on presidential control foreign policy with "profes-
"four political appointees with as- appointments." sionals in the State Department-
a! foot secretary rank. Despite the denials, several ad- not superstars from outside," and,
One Hu ph Montgomery a for- ministration officials outside the in detailing Shultz's preferences,
mer Central Intelligence A n v department said yesterday that specifically mentioned McCormack,
employee, is the official to be r _ they believe that as President Rea- Newell and Montgomery as those
placed by Abramowitz as head of gan prepares to begin his second on the assistant secretary level who
the bur by b imow tz as ed re- term next month, Shultz is maneu- are "good bets to be leaving soon."
search. veering to gain control over the for- In response, a State Department
The other three, whose status eign policy machinery by putting senior official said yesterday, "It
career foreign service officers re- certainly is true that George Shultz
remains uncertain, are Richard T. sponsive to his control in those po- intends to be in command of his per-
McCormack, assistant secretary for sitions most able to influence policy sonnel situation and has obtained
economic affairs and a former aide decisions. to Sen. Jesse Helms (R-N.C.); Greg- the president's approval for that."
One conservative . official who But, he said that the impending
ory J. Newell, assistant secretary declined to be identified said Shultz shifts are being made, not out of
for international organization affairs "seems to be trying to deinstitution- ideological considerations, but for a
and a former White House assist _ a.4e the policy machinery by get- number of other reasons, including
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K} : in~.~ 6.1' it,RED
7
r WASHINGTON POST
20 December 1984
Kirkpatrick i ghts Back
She Calls `Male Sexism' Her Real Foe
By Michael J. Berlin
Special to The Washington Post
UNITED NATIONS, Dec. 19-
Jeane J. Kirkpatrick today called a
claim by her White House foes that
she is "too temperamental to hold
higher office" a "classical male sexist
t -charge" of Victorian vintage.
The U.N. ambassador, whose role
in,the second Reagan administration
remains in doubt, told the Women's
Forum, a group that encompasses'
the female power elite within the
New York business and political com-
niunity, that "sexism is alive in the
U.N., in the U.S. government, in
American politics-where it is bipar-
tisan-but it's not unconquerable."
It was a speech described by aides
as the first she has devoted exclu-
sively to the issue of sexism. Mem-
'bers of her audience said afterward
that they detected a determination
to maintain her status as a presiden-
-tial adviser on foreign policy. Kirk-
patrick won a .spontaneous burst of
applause by saying:
-' -"I'm sure" [former secretary of
state] Alexander Haig . thought he
was going to wipe me out in the fast
nine months-and he didn't"
Haig, who resigned in ? 1982 fol-
lowing public personality. and policy
conflicts with Kirkpatrick and others.;
over such. issues as Poland, - Israel
and the Falklands invasion, was' the
only official she mentioned by name, I
but Kirkpatrick also has been critical of what she
said was the political sniping against her as "tem-
peramental," which initially was reported in News
week Magazine and attributed.to unnamed 'senior''
White House aides."'
'It has been reported by aM1number of syndicated
columnists as part of an apparent conservative
aign to keep Kirkpatrick in the administra-
ti6n that White House chief of staff James A. Bak-
er was among those lined up against her. In-
cluded also on those lists has been Secretary of
State George P. Shultz, Her conservative allies,
said to include Defense Secretary Caspar W. ..
Weinberger and Central Intelligence Agency Di-
rector William J. Casey, regard keeping her as
crucial to maintaining the administration's internal
Uzce of wer, accordin to these reports.
In an interview with The Washington Times
three weeks ago, President Reagan seemed re-
signed to her departure, saying he could not see a
foreign policy post available "that would be worthy
of her."
In response to a question today, Kirkpatrick
made no comment on her future plans, saying she
and President Reagan had agreed not to reveal the
`substance of their meeting on the subject last
week. She confirmed earlier this week that she
would stay at the U.N. until at least March or Ap-
ril, by which time a decision will have emerged
from a postinauguration talk with the president.
Kirkpatrick, who had been asked earlier about
the attacks in an interview with the Los Angeles
Times, said then that there may be a "resent-
ment of women in high politics in this country"
and that some attacks on her had been motivated
in part by that. But she refused at that time and
again today to specify the attackers.
Today,.however, Kirkpatrick elaborated on
this theme. She conceded that part of the oppo-..
sition to her'-stemmed from other factors, such
as being an "outsider", and a Democrat in a Re-
publican administration. "Still in all," she said, "I
feel quite sure a significant portion of my expe-
rience was shaped just because I was a woman."
Referring to her status as the only woman in
the Cabinet during the first years of the Reagan
administration, she said there were "expressions
of general male surprise and disapproval at the
presence of a woman in areas where it is neces-
sary for males to be assertive."
The reason that there are so few women in
"high .politics, Kirkpatrick said, is that the life
style is'"overwhelmingly male.". These behavior-
al patterns, she went on, "are peculiarly unat-
tractive to most women, and to me. A number
withdraw from. high politics by personal decision,
not because they can't hack it but because they
don't think it's worth it." Her ultimate message seemed to be, however,
`that "any woman adapts" to such a situation-"if
one can 11 getting angry and wasting one's
;energies on rage. If you .can hang in and prove
"..yourself,you can have good relations based on
mutual acceptance and respect with almost all
your colleagues." There was a detectable accent
on "almost."
Asked whether she had noted any moderation
in sexism in the younger generation, she said
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?` `. WASHINGTON POST
20 December 1984
p4e,w imported Soviet
Found Made Stave Labor
ITC Report Unlikely to End Dispute on Ban
By Stuart Auerbach Customs, which has since lowered its number
Washington Post staff water - I substantially. The ITC said the value of goods
The Soviet Union is selling few, if any, made by slave labor exported to the United
products to the United States that are made States would at most range from the new
by slave labor, the International Trade Com- Customs estimate of $10.9 million to one by
mission said yesterday in a report that the' the Commerce Department of $27.6 million.
Reagan administration is counting on to de- The major product in both estimates, how-
fuse a campaign by its conservative allies to ever, is refined petroleum products, in which
ban imports of Soviet goods.
"The ITC report suggests that the United labor amounts to as little as 2 percent of the
States is not importing large quantities of production costs.
goods made by convict labor" from either the "With labor comprising such a small part of
the total," the ITC said, "the amount of com-
Dole Soviet (R-UKan.), or who China, said requested the Sen. ITC Robert J. pulsory labor used rather than regular labor
study.
But it appeared unlikely that the report may be negligible." The ITC also found little likelihood that
would end the year-long dispute, in which the products made by forced labor in 22 other
administration was caught between its conser- nations, including China and South Africa,
vative allies who want strict bans on U.S. im- were being exported to the United States.
ports of Soviet products made with slave labor
The major export from China to the United
and the president's own desire to open new States, gasoline, "is believed to involve little
arms control and trade talks with Moscow, or no compulsory labor," the ITC said, al-
Conservative groups pressing for the ban though other exported
on imports said yesterday they would contin- products might use
forced labor. As for South Africa, the ITC
ue their fight, including a suit by the Wash= found no evidence but acknowledged "a po-
ington Legal Foundation to force the admin- tential" for American imports of farm prod-
istration to impose import bans under a rarely ucts and precious metals to be produced or
applied 54-year-old law. mined with slave labor.
Foundation attorney Paul D.- Kamenar, not- The issue of Soviet use of slave labor for
ing that Customs Commissioner William von export products emerged in 1982 with alle-
Raab ruled in September 1983 that as much ' gations that forced labor was used to build
as $138 million of the Soviets' $227.5 million the pipeline from Siberia carrying natural gas
in exports to this country were made by slave : for sale to Western Europe. The administra-
labor, said, "Von Raab made the determina- , tion,"however, has softened its stance since a
tion, and the State Department has been try- February 1983 report in which the State De-
ing to frustrate his carrying it out." partment said the Soviet Union operates the
"The law's the law," he continued. "The world's largest "forced labor system," with an
operative determination by Customs has been estimated 4 million workers in 1,100 camps.
made, and we are trying to get it enforced." A year ago, administration witnesses
The Justice Department, in its defense stressed to Congress that there was little
against the foundation suit, contended that no "specific evidence" of the Soviet use of Slave
determination on Soviet slave labor had been labor on exports. CIA Director William J.
made by a federal agency, and that none Casey reported last May that an intelligence
would be until the Treasury Department gets search failed to develop information " uffi-
the ITC report. cientiv precise to allow us to determine
Treasury Secretary Donald T. Regan orig- whether and to what extent the nrnd?1.ts of
inally supported von Raab's plan to apply the forced labor are exported to the United forced labor ban against 36 Soviet products, tates."
'but. backed off after being told of its repercus-
sions by Secretary of State George P. Shultz,
Commerce Secretary Malcolm Baldrige, Ag-
riculture Secretary John R. Block and U.S.
Trade Representative William E. Brock.
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USA TODAY
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. DN PAGE 9A
Topic: TIME CIA
William E Colby, 64,
was director of the Cen-
tral Intelligence Agency
in the 1970s. Born in Min-
nesota, he served in the
US. Army during World
War II, rising to major,
and then joined the Office
of Strategic Services, the
forerunner of the CIA. He
is the author of Honor-
able Men - My Life in
the CIA. Colby was inter-
viewed by free-lance j~ur-
nalist Phil Moss
William E Colby
venfy it If you get into an ar-
cane discussion of whether
verification means you can
an
identify the last quarter-inch of
means 1iJing risks
USA TODAY: Do you think
Iran was helping the hijack-
ers who took the Kuwaiti jet
to Tehran and murdered two
Americans?
COLBY: It obviously had
some relationship with the
group that did the hijacking.
But I don't think that group did
it on Iran's orders or even with
conspiracy. I think the Iranians
were less than helpful in the
way they handled It They
knew they had a basic sympa-
thy with the people doing it,
and they were slow to realize
they had an obligation to
straighten out the situation.
USA TODAY: Do you agree
with Secretary of State
George Shultz that the USA
should launch pre-emptive
strikes against terrorists,
even if civilians might be
harmed?
COLBY: Well, if I knew that
somebody was cranking up a
bomb and planned to move it
into the White House to blow It
up, I would take such steps as I
needed in order to stop that
from happerft armeant
that I had to bomb something
out of the air in order to. do it, I
would. The pieces of the plane
would have to land some place.
Somebody might get hurt. But I
would protect the White House.
USA TODAY: What can be
done to combat terrorism?
COLBY: I have no trust in
the Soviet Union. In 1962, the
foreign minister of the Soviet
Union (Andrei Gromyko), who
is still the foreign minister, lied
directly to President Kennedy
when he assured him that he
was not going to put any offen-
sive nuclear missiles into Cuba.
He said that at the very time he
was doing It I think we can
watch the Soviet Union; we can
tell through our own devices
whether they will be comply-
ing with . an agreement we
reach between us or whether
they'll be cheating on it
USA TODAY: If we can't
verify what weapons they
have, Is It worthwhile to
reach any kind of arms agree-
ment with them?
COLBY: It's not worthwhile
if we can't verify it But we can
the fin of some missile, then
you say no, it's not verifiable.
But if you approach verifica-
tion from what it really is,
which is the protection of your
country against strategic sur-
prise, then you begin to realize
that any kind of a strategic ac-
tion on their side would be tele-
graphed years In advance,
thanks to the intelligence tech-
nology we have with the satel-
lites, the electronics, the acous-
tics. If you have any doubts,
just look at what the Defense
Department publishes about
Soviet weapons.
is quite resolved to achieve
some kind of success in the
arms control area. I think earli-
er he was very uninformed in
it. But I think today he's re-
solved to achieve some results.
I think he's taken exactly the
right step of getting Paul Nitze
to become the leading man to
try to put together some kind of
an agreement I think the presi-
dent's interest now is in the his-
tory books, rather than the
next election.
By Susan Harlan, USA TODAY
USA TODAY: Before head-
ing the CIA, you served in
Vietnam. Why haven't we
been able to account for all of
our men who are missing in
action?
COLBY: The North Vietnam-
ese have been incredibly cyni-
cal in their use of the remains
of our people killed over there,
handing them out one at a time
to visiting delegations. I think
that our relations with the
North Vietnamese are going to
be very bad for a long time.
Whether there are any Ameri-
cans still living In Vietnam, I
just don't know. I think they
probably, in most cases, died of
natural causes or unnatural
causes, and the North Vietnam-
ese are afraid to admit respon-
sibility.
COLBY: One rule of terror USA TODAY: Are we ahead
ism is that if it gets serious, it or behind the Soviets in arms?
gets suppressed. It usually gets
suppressed through a combina- COLBY: Both nations have
lion of good. intelligence, good the ability to retaliate absolute-
security practices and public 1 against any use of nuclear
support because the terrorist nagainst them. We are
becomes the enemy of the pub- ahead of the Russians in some
lic. Then the public begins to weapons. They're ahead of us
help you to control it in some weapons, and the dif-
-USA TODAY: As director of ' ference is inconsequential.
the Central Intelligence i. _
.
Agency, you had to be some- USA TODAY: Do you think
thing of anexpert onthe Sovi- President Reagan really
et Union. Can the Soviets be wants an arms agreement?
trusted at all?
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_~" J U U. S S. NEI%'S F WORLD REPORT
17 December 1984
"Mr. Conservative" SizeslJJi
Cbailenges Reagan Faces
From trimming the cost of military weapons
to getting along with the Soviet Union, one of
the Senate's most respected members speaks
his mind in a wide-ranging interview.
Q You're on the Senate committee that oversees the Central
Intelligence Agency. How good is U.S. intelligence?
A We have the fourth-best intelligence system in the
world-behind Israel, England and Russia. We could do
better, and I think in a few years we'll move up to second
or third.
We've been lucky-most of our CIA directors have been
good ones. But I don't think that job should be politically
appointed. I want to see the next selection come from men
who have been in there 20, 30, 40 years and know their
way around.
Senator Pat Moynihan and I have a bill that would take
that office out of politics. Although Bill Casey is doing a
great job, I don't know whom the President would pick as
the next director. But it should not be political.
Interview With
Senator
Barry Goldwater
Barry Goldwater, Repub-
lican of Arizona, has been
an outspoken advocate..:
of conservative principles
in.the Senate for nearly .
30 years. As _the. GOP
presidential candidate -.in
-1964, he lost -to Lyndon
Johnson. Now 75, he has
announced.plans to retire
when his current term
ends in'two years.
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WASHINGTON POST
r1i" T Farrr';;tD -- 17 December 1984
rq r.nr
Oki 4 _2-?
Pr: _ ,------
Rowland Evans
And Robert Novak
Shultz
Plays
.His Hand
At State
George Shultz returned from Eu-
rope to confront senior administration
colleagues poised to counterattack his
State Department purge out of fear
that a policy takeover will follow the
secretary's takeover of personnel.
The counterattack may be too late.
Shultz has diligently cultivated Ronald
Reagan. He got the president's bless-
ing last month to replace any political
appointee he chose with Foreign Serv-
ice bureaucrats, few of whom share
Reagan's ideological . toughness. A
Cabinet-level Reaganite explained to
us: "Shultz told Reagan if he wanted
him to stay on, he must control per-
sonnel decisions at State." Not want-
ing a Shultz resignation, the president
agreed.
Reaganites high in the president's
confidence doubt that he fully under-
stood what he agreed to. Not until last
week was Reagan.made fully aware
that the immense power he had
awarded Shultz was being exercised
with a vengeance at the State Depart-
ment, purging Reaganite assistant sec-
retaries and ambassadors in prepara-
tion for the second term. "George has
overplayed his hand," a critical official
told us.
But it may be too late to prevent
Shultz from continuing to play that
hand. The question is whether old
Reaganites will really fight. Three of
them-presidential counselor Edwin
Meese III, CIA Director William
Casey and Interior Secretary William
P. Clark-were scheduled to meet at
the White House last Friday with one
of the purged officials: Hugh Mont-
gomery, director of intelhgence and
researc .
Meese in private has used uncharac-
teristically strong language in describ-
ing Shultz's sweep. Clark and Defense
Secretary Caspar Weinberger are also
angry and have let their views be
known to the president. Still, the hour
is late and the odds long.
A focal point of the charge that
Shultz is running away from Reagan's
policy is the prospective firing of Rich-
ard McCormack, a former aide to Sen
Jesse Helms, as assistant secretary for
economic affairs. Only last Aug. 8, the
president sent McCormack a personal
letter praising him as .'one of those
team players whose low-key efforts
have contributed to the-... success of
our policies."
The secretary's critics inside the
administration privately blame two
young Foreign Service officers on
Shultz's secretariat-Charles Hill and
Jock Covey-for playing a central
purge role,. partly by their control of
the paper flow. The fact that Daniel
Terra, a rich Reaganite who is the
unpaid ambassador at large for cul-
tural affairs, is on the purge list fuels
suspicions that outsiders are no
longer welcome at the State Depart-
ment.
But this is not entirely a Foreign
Service putsch. The esteemed John
Negroponte, a tough F.S. officer, is
being replaced as ambassasdor- to
Honduras, a key Central' American
post, by Deputy Assistant Secretary
L. Craig Johnstone. Reaganites call
Johnstone soft on the president's poli-
cies.
The real battle against Shultz may
come from Sen. Jesse Helms and his
right-wing Senate colleagues. Unable
to move in as chairman of the Foreign
Relations Committee. for home-state
political reasons, Helms is eager to
redeem his conservative credentials'
in the foreign policy area by blocking
Shultz's new choices for top jobs.'
.The next diplomatic nominee able to.-
win: Senate confirmation may be a
nesecretary of. state," an adminis-
tration insider told us, only half in'
That all this may have less to do,
with policy-as of now-than the
whims of George Shultz is suggested
by his personal request to hard-line
Undersecretary William Schneider to
stay.
The eventual policy impact can only_
be dimly perceived. But with Shultz?
now in the close embrace of the For-
eign Service, the president's diplo
macy is likely to be turned away from-
his own strong ideological convictions-
on the world struggle.
o 1994, News Group Chicago, Inc.
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mu 19 72.., 17 December 1984
rC i ng, Profile: Senator Barry Goldwater
Rattling the Pentagon's Coffee Cups
By BILL YELLER
special to The New Yo!t Tlmee
WASHINGTON, Dec. 16 - An old
aviator named Barry Goldwater re-
cently rattled the breakfast coffee
cups in the suburbs surrounding the
Pentagon. Military officials opened
their morning paper to read that Mr.
Goldwater, the incoming chairman of
the Senate Armed Services Commit-
tee, favored a freeze on their budget
and wanted the Reagan Administra-
tion to abandon the MX missile.
"I'm not one of these freeze-the-
nuke nuts,' Senator Goldwater said,
"but I think we have enough, I think
we have more than enough, and I
don't see any big sense in going ahead
building."
It was hardly the first sonic boom
from the senior Senator from Ari-
zona, who was the 1964 Republican
Presidential candidate and is the fa-
ther of Western conservatism, Mr.
Goldwater has enjoyed a resurgence
of public esteem and he seems to take
a perverse delight in being provoca.
tive and unpredictable, usually in
pungent language.
Dressing Down for Many
The Senator has dressed down Wil-
liam ase t e erector of entra
Intelligence up raid mi itarv con-
tractors an essu a stern mind-
your-own- usiness to politicking fun-
damentaiist preachers, all targets as
customad to more reverent treatment
mom conservatiy
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 t the
but 0& L Pmltioa of Phillip" "T ` 'a "
Ticara a `secret war' m s,
would be
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WlkinI L I UIV NUJ
16 December 1984
w POA Pme4 a senior nine the Marxist-led Nicaraguan "Somebody's got to look at the na-
It began with Sunday afternoon government- tional interest, not just CIA's inter-1
training in the Everglades, political ? controversy surrounding the est. And when the president and the
training in Miami condominiums management of the covert war has administration tell you to march,
and stealthy raids c former Ni- ought a renewed sense of vulner- You march, after having had your
caraguan National Guard officers .abniity within the agency after a pe- ~Y?
determined to rid Nicaragua fic its riod of relative calm in which many But much of the criticism of
there felt the CIA bad won a hard- Casey centers on how he used his
new Sandinista rulem f T. t.- C
h
I
a ises Unease in CIA t as happy to see secret wars
that aren't really secret go away.'
It was the president's judgment
ante by intelligence professionals, that it was in the United States'
U.S. military personnel and foreign interest to do it," said one senior
first of two articles service officers with firsthand intelligence official defending
By Christopher Dickey knowledge of the effort to under- . Casey's role in the operaton
HEWS
~kA1YSIS
e an - w mtelhgence professionals, eagan. He came to his present
Sandinista rebel move- - The debate also has left the con- position after serving as Reagan's
ment has grows into a tras
campaign.'manager in 1980.:
the men who do the fi
htin
,
g
.- .
g
,serious war pursued by thousands against the Sandinistas, fearful ' With ' such credentials; Casey's
of guerrillas in the mountains of about being dumped by the United critics in the intelligence commu-
their Central American homeland. States in the way Cuban exiles, nity contend he was in a good po-
Because money and advice from the Kurdish mountain warriors and An- sition to defend his bureaucracy 1
Central Intelligence Agency was galan rebels have all felt they were from ill-conceived administration
responsible for much of the trans- abandoned over the past two dec- pohde
formation, the rebellion also has adds when they became politically Instead, Casey is said to' have !
become an important item on the f inconvenient for the United States. embraced and defended a paramiI-
agenda for President Reagan's sec-. The contras and their concerns will itary program pursuing the vague,
and term in office. be' examined in a. second article protracted goal of "pressuring" the
The Reagan administration a>;- Monday. Sandinistas.
rently is wrestling with the question , "It was nickel and dime,* said one
of renewing official U.S. support for Csseys war* diplomat, speaking of the program
the supposedly covert war, which ;?hf you're going to overthrow as a whole and voicing a complaint
has become increasingly overt in anybody you have to do it pretty 'that seems almost universal among
part because the administration has quickly said one CIA veteran "of those people who worked with it. If
helped publicize some aspects of the Nicara it was going to be done, "it should
gun's "secret war.' "These have been serious from the begin-
operation in an evident effort to operations always unravel--unless icing. We should have put $100 mil-
intimidate the Sandinistas and their' they take over the country-and lion into it at the.start, not $19 mil-
Cuban supporters. Itbey always make a mess.' lion," the first amount Rea
This, as well as the general con- While Congress comes in for gaze uu-
duct of the war, have produced a thorized in late ;1981. -We should
p some criticism, many intelligence have pushed hard instead of draw.
sense of unease within the CIA. professionals point fingers at Direc- ing it out. But it was hubris; we
Moreover, the debate around the for of Central Intelligence William were going to knock off these little
agency's role in the conflict inten- j. Casey. . brown people on the cheap.' -
sided this month when members of. 'It's really Casey's war," one of When asked for comment, CIA
the House intelligence committee them said. spokesman George Lauder said the'
criticized it for exercising "ex- -Like other critics who have been agency was not giving briefings on
tremely poor management` in rain- involved in the operation, he spoke Central American questions at this
ning the program against Nicara an condition that he not be identi- time. After a point-by-point review
That criticism, which centrsed on i fied. But David Atlee Phillips, a of the criticisms raised in this ar- i
founder of the Association of For- tire, Lauder said that 'none of the
the production and distribution of a mer Intelligence officers and the senior officers of the agency share
psychological warfare training man- CIA's Latin America division chief the views of the anonymous critics.
ual for the contras, as the rebels are in the early 1970s, said that their Moreover, last week in the agen-
known, was a public echo of a grow- ganef concerns are shared by a cy's auditorium, Mr. Casey ad-
ii t:horus of similar criticisms and large part a ,f. the intelligence com- dressed an overflowing audience of
dp bts about the agency's perform- munity.. ( employes on such matters and re-
ceived a standingg ovatio "
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CYDtlunod
a
?Ug t t
e to regam as apoutical ""Y- sey is both CIA director and
Three years and more than $8p
nand- professional image, according a personal confidant of President
million later th ti
 V
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~ '~ f`~F 1 PEP4 ED CHRISTIAN SCIENCE MONITOR
r* 14 December 1984
Silmletz arts to w-sitioU
career pohcymakers
By Charlotte Saikowski
Staff writer of The Christian Science Monitor
Washington
As the second Reagan term gets under way,
Secretary of State George P. Shultz appears to be
working quietly to professionalize the making of
foreign policy and lay the groundwork for prag-
matic policies and solid achievements.
Diplomatic observers see recent and prospec-
tive personnel changes as a sign that Mr. Shultz is
moving assertively to dominate the foreign policy
scene despite continuffig differences of view and
bureaucratic squabbling within the administra-
tion. He is managing to put knowledgeable people
in important posts and, according to State Depart-
ment sources, is planning further changes of
lower-level positions. -
According to administration officials,
Shultz has also established a close and ef-
fective working relationship with Robert
C. McFarlane, the President's national-
security adviser. While both must - still,
take account of Defense Secretary Caspar,
W. Weinberger and CIA Director William
J. Casey views, they now have more
-
weight in the decisionmaking process.
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ARTICLE APPEARED
LOS ANGELES TIMES
12 December 1984
Kirkpatrick, Reagan `Talk About Future'
By DON SHANNON, Times Staff Writer
WASHINGTON-U.N. Ambas-
sador Jeane J. Kirkpatrick met
with President Reagan on Tuesday
and "talked a bit about the future"
but failed to resolve the long
suspense over whether she has any.
future in the second Reagan Ad-
ministration..
After the half-hour session with
the President, Kirkpatrick told re-
porters that "we agreed to talk
further sometime after the inaugu-
ration" Jan. 21. But she declined to
be more specific.
Although Kirkpatrick has an-
nounced that she will step down
from her U.N. post, White House
spokesman Larry Speakes said he
assumed that she would still be at
the United Nations when she and
Reagan next meet.
Others Asked to Stay
The ambassador, who long has
made known her interest in playing
more of a policy-making role in the
Administration, originally had said
she wanted to discuss her job
prospects with Reagan after the
Nov. 6 election. In the interim,
however, Reagan, asked Secretary
of State George P. Shultz, National
Security Adviser Robert C. McFar-
lane and CIA Director William J.
Casey-whose jobs Kirkpatrick
most likely would prefer-to stay
in his Cabinet.
At a news conference last month,
the ambassador said she wanted to
quit after four years at the United
Nations and resume teaching gov-
ernment at Georgetown Universi-
ty. But she volunteered that she
had acquired a unique range of
experience in dealing with heads of
government and U.N. officials-
particularly those from the Third
World. And aides recalled that she
had said in a magazine interview:
"There are things I'd-like to see
done in U.S. foreign policy and, for
that reason, I would consider stay-
ing on."
But Speakes then disclosed that,
although the President is satisfied
with Kirkpatrick's performance at
the world organization, he believed
that no other job "worthy of her" is
available.
Percy Mentioned
Kirkpatrick's friends say pri-
vately that they believe she will
remain at the United Nations until
a successor is chosen and then
return to her Georgetown profes-
sorship, possibly in March or April.
A half dozen candidates for her job
have been mentioned in rumors,
including Charles H. Percy (R-
ill.), outgoing chairman of the
Senate Foreign Relations Commit-
tee, who last month lost his bid for
reelection.
Although Kirkpatrick remained
a Democrat even after she became
part of the Reagan Administration,
she. quickly became a popular
spokeswoman for the right wing of
the Republican Party, and her
tough foreign policy speech at the
Republican National Conveption in
Dallas last summer won a standing
ovation second only to the Presi-
dent's. But, in Washington, White
House aides see her as abrasive and
disruptive.
The ambassador professed puz-
zlement at the reasons for White
House hostility and, in an interview
that appeared in The Times last
month, she declared her confidence
that the President was unaware of
the criticism by his top aides.
`Special' Resentment
"I do believe that there still may
be some special. sort of resentment
of women in high politics in this
country," she said.
Meanwhile, State Department.
and White House officials said
Tuesday that U.S. ambassadors in
several key, Latin American na-
tions are scheduled for moves to
new diplomatic posts early. next
year.
Among those reported moving
are Thomas R. Pickering, envoy to
El Salvador for the last 16 months,
and John D. Negroponte in Hondu
ras, whose ardent support of rebels
fighting the Sandinista govern-
ment in neighboring Nicaragua has
brought criticism from the host
government. Pickering is expected
to become ambassador to Moscow,
while the officials did not know
what post Negroponte might get.
Other ambassadors involved in
the diplomatic rotation are Lewis
Tamb, Colombia; Edwin Corr, Bo-
livia; Curtin Windsor, Costa Rica,
and James Theberge, Chile.
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APITI"LE A;P? EARED
Oii P>:~'= A-
Joseph Kraft
WASHINGTON POST
11 December 1984
Shultz on the
Offensive
George Shultz plans to conduct most of the
arms control negotiation with Russia himself. If
obliged to delegate responsibility, in arms con-
trol or regional hot spots, he will look to pro-
fessionals in the State Department -'not super-
stars from outside. New appointments as am-
bassador to the United Nations and at the
assistant secretary level will be made in keep-
ing with that principle.
Those are gleanings from an interview with
the secretary of state the other day. Since
Shultz doesn't like to talk about personnel, the
ostensible subject was organization. But a read-
ing between the lines shows that Shultz is on
the offensive in the bureaucratic warfare that
lies at the heart of American government.
Early in the interview Shultz was asked
whether he would be spending more time on
Soviet relations and arms control business. "I
have to," he replied, Then he said:
"History. certainly shows that the major politi-
cal discussions of the subject have taken place
.above the level of the formal negotiations, and I
accept the fact that that's probably very likely.
We have said to Gromyko-the president has
said to Gromyko and to Chernenko, in effect-
that this is a presidential-level issue. He recog-
nizes that, agrees with that, and tends to weigh
in on it, and looks to me to spend a lot of time on
it, and I intend to do that, ..."
After the opening of talks with Gromyko in
.Geneva next month, to be sure, the secretary
may have to pass negotiation of details to a lower
level. But he wants an official clearly responsible
to the State Department. Hence the designation
of Paul Nitze as special assistant to Shultz.
Ambassador Nitze, an ex officio professional by
virtue of his long experience, had shared negoti-
ating duties with Edward Rowny, a general with
roots in the Pentagon. If the Russians accept the
president's proposal for "umbrella talks," as
seems likely, Nitze will be Shultz's man at the
head of a single American delegation. Rowny will
.
be downgraded, as will Kenneth Adelman, the
arms control director. While the Pentagon will
still carry weight, Assistant Secretary Richard
Perle will have to make his case without help
from inside the arms control community.
'that same model asserts itself in two 6th er
areas once dominated by everybody but the State
De: t..ment. in Central America the Pentagon,
the CLA and a commission headed by Henry Kiss-
inger were at one time all playing roles.
Now the main negotiator in
Harry Shlaudeman, a career Foreign Service offi-
cer and former ambassador to Venezuela. He has
been meeting regularly with Nicaraguan officials
in an effort to square the security of neighboring
states with the proposals of the four Contadora
countries. Of Shlaudeman's mission, Shultz says:
"He knows more'about the area than I do. . . al-
though there are times when I can help him' a lot
because I have a little more clout ...
In the Middle East, former defense secretary
Donald Rumsfeld was the chief negotiator be-
tween Israel and the Arab states. Previously that
job had been assigned to such notables as former
Democratic Party chairman Robert Strauss and
the former Panama Canal treaty negotiator, Sol
Linowitz. Now Assistant Secretary Richard Mur-
phy, a career diplomat, quietly makes the rounds.
The United Nations post lends itself very little
to full control by State. The U.N. ambassador has
had Cabinet status and a great theater for voicing
personal views. Several highly independent fig-
ures are being touted for the job, which will be
vacated by Jeane Kirkpatrick The list includes
Richard Stone, the former Democratic senator
from Florida, and Max Karnpelman, a former
aide to Hubert Humphrey who has been serving
as American delegate to the talks. on European
security in Madrid.
But Shultz acknowledges that "like all secre-
taries of state I would rust as soon" the U.N. am-
bassador reported directly to me " State has in
mind a candidate who would be more disci lined
even while continuing in the Kirkpatrick tradition
of standing up strongly arainst verbal abuse by
Third World radicals. He is Gen. Vernon Wal-
ters the linguist who s -ver President isen-
hower as translator and ,u- ',~ uentJv became a
roving ambassador for A exander Haig and
Shultz.
As tc. the assistant secretaries Shultz ac-
knowlecged room for improvement in three
places. He mentioned, int rnatmnal economic
policy, dealings with international organizations
and Participation in the intelligence community.
The assistant secretaries in those areas all
came to State from competing power ases
Richard McCormack, the assistant secretary
for economic affairs, had worked i:n the office of
Sen.esse Helms Greg Newell the aunt
secretary for international organizations came
out of the White House Hugh Mont sromerv,
the director of intelligence and research, is a
CIA veteran. A good bet is that all three will be
leaving soon.
During the Nixon administration Shultz was-
so skilled at bureaucratic warfare that he be-
came known as the Vacuum Cleaner. After a
sluggish start as secretary of state, the
Vacuum Cleaner is humming again..
,c 1984, Los Argeies Times Syndlcale
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WASHINGTON POST
11 December 1984
MARY McGRORY
Jilting the MX, Jolting Reagan
It is that memory that constrains the
joy of MX foes, who could hardly be
more pleased than if Defense Secretary
Caspar W. Weinberger had joined them.
"Will he stick with it?" both sides ask.
The most recent charge-and-retreat
episode in Goldwater's long history
concerns the CIA mining of Nicaraguan
harbors. As chairman of the Senate .
Intelligence Committee, Goldwater sent
a scorching letter to CIA Director
William J. Casey, pronouncing himself
"pissed off" by Casey's actions. But soon
afterward he voted against a resolution
condemning the mining and
subsequently has found public occasion
to speak kindly of Casey...
But according to Rep..Thomas J.
Downey (D-N.Y.), one of the organizers
of House resistance to the MX, "the
damage has already been
done-waverers can get cover by
saying that if MX is too much for even
Barry Goldwater, it's too much for
them. If he takes it back, he will look
senile."
Goldwater wasn't shooting from the
hip this time.
In other words,. Reagan wants the
MX no matter what the Soviets think, of
it. But with Goldwater walking out on
him, he might do better to put the thing
up for private funding. The "contra" war
in Nicaragua has been "privatized," and
if he made MX contributions
tax-deductible, he might be able to
deploy the full 100 he has in mind. It
might be easier than battling 'it through
Congress again.
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 9--
P t~ D
Ap,,Tl('LE
oil
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NEW YORK TIMES
11 December 1984
Sb ultz- Fein berger Discord Seen
In Nearly A11 Foreign Policy Issues
By HEDRICK SMITH
Spedel to The New York Timm
WASHINGTON, Dec. 10 - As Presi-
dent Reagan prepares for a second
term, his two top foreign policy advis-
ers, Secretary. of State. George P.
Shultz and Secretary 'of Defense Cas-
par W. Weinberger, are reported at
odds on virtually all foreign policy
issues, often to the frustration and con-
cern of the White House.
A proponent of Cabinet Government,
Mr. Reagan has often sail that he wel-
comes listening to top Cabinet officials
and other advisers argue out policy dif-
ferences to help him set the direction of
policy.
But senior officials in every major
foreign policy agency say thaf the dis-
putes between Mr. Shultz and Mr.
Weinberger have gone well beyond this
positive notion, causing stalemates in
the Government and feeding bureau-
cratic rivalries at lower levels.
In the last few weeks, the two secre-
taries have clashed openly with contra-`
dictory speeches on the proper use of
American military force abroad. Other
officials say that this issue is simply.
the most visible dispute between them
and that their disagreements touch vir-
tually all major aspects of policy, in-
ciuding arms control, terrorism, Cen-
tral America, the Middle East, and
how hard to press the Atlantic alliance
to improve its conventional forces.
The Areas of Dispute
On some of the key issues, this is how
Casey, the Director of Central Intell-
gence, advocated a change in Amer
Government of Nicaragua and extend
political recognition to Nicaraguan
rebels long backed by the Reagan Ad-
ministration- But Mr. Shultz and Mr.
McFarlane have argued for continuing
resent lit
and
ursuin di lomatic
negotiations
wit
the San anistas,
particularily while Congress refuses to 1
grant more aid to the Nicaraguan
rebels.
Technology - Mr: Weinberger and
other senior Pentagon officials have
had a running battle with the-State and
Commerce Departments over the sale
of American high technology to the
.Soviet Union and Eastern Europe.
After Rumania decided to take part 1ti,
the'Los Angeles Olympics; Mr. Shultz
.advocated granting a-licence for' the
sale of American'computers tb Ruma,
nia, but this fall, just before the elec-'
tion, Mr. Weinberger took the case to
President Reagan and blocked the sale,
officials said.
9Terrorism - Mr. Shultz has made a '
strong public case for this country to be
ready to launch pre-emptive strikes
against terrorists and to retaliate
against terrorists even if it led to the
killing of American servicemen and in-
nocent civilians abroad. Mr. Weinber, '
ger, siding with Vice President Bush,
has urged restraint.
******
The Use of Force
In two major speeches, last spring,
and on Sunday night, Secretary Shultz
argued that the United States had to be
ready to use its military might to give
leverage to American diplomacy and
that it was "the burden of statesman-
ship" to be ready to use force even
when there was no guarantee of public
support.
In an address to the National Press
Club on Nov. 28, Mr. Weinberger gave
his view, openly sounding "a note of
caution," reflecting the views of many
senior military officers since the pub.
lic's disillusionment with the Vietnam
War.
Despite such contradictory lan-
guage, high Administration officials
say there is no situation now where Mr.
Shultz is advocating sending in Amer-
ican troops while Mr. Weinberger
refuses. Indeed, both men are said to
back such displays of American power
in the third world as highly visible mili-
tary exercises in Central America or
sending Awacs reconaissance planes to
Saudi Arabia.
Occasionally, some officials say, the
policy frictions between the two Secre-
taries have taken on an air of personal
tension.
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A ;;jOi G APPEARED 10 December 1984
F R E ?41
INSIDE WASHINGTON
BY NILES.LATHEM
WARM words from President Reagan last Friday
about the Treasury. Department's tax plan headed off
a resignation by Treasury Secretary Donald Regan.
Furious at the way"he
'had been treated ` by
White House staffers
since he presented his
blockbuster tax reform
plan, Regan was ready
to quit
But when word of his
frustration reached the
Oval Office, the. Presi-
*dent broke a two-week
silence to say that the
.Treasury plan is "the
best proposal for chang-
ing the tax system that
has ever occured iq my
:lifetime."
,The Treasury Secre-
tary had been upset by
the surprisingly hostile
reaction from Reagan's
-staff to his proposals to
-reform the tax code..
He had been ordered
"by the President to for-
mulate the proposals
.and went public with
the plan two weeks ago
'thinking that he would
have support of the
White House.
But the day before his
big announcement,
'White House aides
`leaked the plan to the
. Aides then apparantly
`convinced the Presi-
'dent not to endorse the
package until political'
reaction to it had been
gauged.
This left Regan alone
=to battle the increas-
ingly large numbers of
special-interest groups
who lined up against it
Associates say the
Treasury Secretary felt
he had been "hung out _
;to dry" by the -White
. House. He was so ang-
=ered .that he secretly
got word to the Presi-
dent that he was ready
to resign
,e an's strate2y. was
,similar to that of CIA
Director William Casey.
when he was under fire
from the White House
over his agency's ac-
tivities in Nicaraeua
And UN Ambassador
Jeane Kirkpatrick is also
trying, although less suc-
cessfully, to get another
administration position
by blaming her current
troubles on White House
backstabbers.
press with a series of
scathing criticisms of it i
and :of Regan. _
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 NEW YORK POST
Ft[T; ,pp~R pprbved For Release 2006/01'd1?eeC&;gpP8~-90901 R00
n!,l ;
Time reagan cried halt
to his staff's backbiting
Reading newspaper and magazine als ever seen in-presidential politics -
reports about President Reagan's fled for the private sector.
Cabinet these days is a little like Not one of them wanted to take a job
being back in San Francisco at the in Jim Baker's White House.
Democratic National Convention. "It's a snakepit," said one. -
We read that United Nations Am- Even the President's son, Michael. is
bassador Jenne Kirkpatrick is "too not immune from the sharp tongue of
right wing," too easy to anger and too _ the ubiquitous White House aide.
dlificult'to get along with to receive When news of the family feud broke
the promotion she both covets and de= over Thanksgiving, instead of being
serves. discreet, one aide, who insisted of
we read about CIA Director William course on remaining anonymous, re-
Casey being a "cowboy" who Is run- marked that the President's son,
ning an operation in Nicaragua that is needed "therapy" Michael, - with
dangerously out of controL some perception, replied:. "They're
Y read about Elefense Secretary treating me like a Cabinet guy, they
Caspar Weinberger spending all his are trying to ease me out."
time trying to sabotage President Rea- While all this makes rather titillating
gan's main objectives - arms control reading and gives the Washington
and reducing the deficit. cocktail circuit something to chatter
We read about poor old Don Regan, about, it is doing incredible harm to
the Treasury Secretary, who was ord- the Presidency.
ered to formulate a tax reform plan to It harms Reagan's efforts to reform
cut tax rates and tax loopholes - only' the tax code when the details of his
to find out that he messed things up Treasury Dept. plan are selectively
and proposed a plan that could never, leaked out a day early with appropri-
ever, get through Congress. ate quotes from within the White
It would be one thing if these reports House saying it will never work
were generated from those Democrats It is equally harmful when an articu-
in San Francisco. After all, last July late, forceful spokeswoman like Jeane
they were trying to win an election and Kirkpatrick is trashed by aides who
While disagreements are common in
any administration, they are being
highlighted and magnified as Reagan
approaches his second term.
Reagan, of course, with his detached
managerial style, is uncomfortable
dealing with these issues.
But - just as he took control of the
budget process these last few weeks --
it is time for him to step in and stop the
sniping and the backbiting and gain
control of his staff before more harm
is done. And before his talent pool is
completely depleted.
could be expected to be unreasonably . know next to nothing about foreign
negative.... policy.. .
But nowadays it isn't the Democrats - Jeane Kirkpatrick for the last four
who are singing that siren song. In' years has been more of a symbol of
fact, House Speaker Tip O'Neill said in this Administration's determination to
a speech to A he Center for National stand up to the Soviets and their Third
Policy the other night: World. counterparts than an other
"If the President is willing to reduce member of the Administration.y
the growth of defense spending, then:.:- Now, when the U.S. is about. to sit "
he will find that we will be helpful ... if down with the Soviets to talk about -
the President is sincere in his desire to' arms control -when the same kind of
make the tax system fairer, we will firmness of voice and - purpose is
help him do it." -needed more than ever - she is being
No. The reports are not coming from railroaded out of the Administration.
the Democrats. They are coming from How's that for. sending the wrong sig-
the not-so-anonymous cabal of aides in nal to the Kremlin the White House led, by White House . It is a little over a month since Ronald
Chief of Staff James Baker, who is still Reagan was reelected with one of the
trying to "consolidate" his power, even. most impressive .and far-reaching man-
though there is no one there left to. dates In history. In that short time the
challenge him. They are coming from things that Ronald Reagan promised,
his deputy Michael Deaver, who ap- - the values that he so forcefully articu-
pears to be doing little more these days. ; lated during the'campaign,-all are being'
than playing tennis and throwing hand slashed to bits by a staff that thinks it
grenades at members of the Cabinet knows better than everyone else what'
After the campaign, (staffers on Rea- direction the nation should be going in.
gan's reelection committee - perhaps
the most. talented group of profession-
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 Y
ARTICLIAMYuBtEdiFor Release 2006/1/: &4NP91-009
ON PAGE__ 10 December 1981+
Restrain Casey
0 F COURSE the CIA's manual,in-
structing guerrillas how to assassi-
nate Nicaraguan officials violated
Congress's ban against U.S. attempts to
overthrow the Sandinista " regime. That
conclusion, now reached officially by the
House Intelligence Committee; is only
slightly gratifying, since it idnly- states'-
the obvious.
The committee concludes that the CIA
murder manual was the product of
"negligence" by senior CIA officials,
who should have prevented it but were.
unaware of it. CIA Director William
Casey acknowledged as much. Having
concluded the obvious, the committee
now says that the matter is over.
It is not over, not by a long shot. As far
as this murder-manual imbroglio goes,
Mr. Casey should be held accountable; .it
is yet another example of his negligence.
Last spring Mr. Casey neglected ; to
inform the Senate, as law requires, that
his' agents were mining Nicaragua's
harbor. He got away with that too.
This murder-manual scandal is loathe-
some, but attention should not- focus
excessively upon it. To focus on ' the
manual is to focus on the flea; attention
instead should dwell upon the dog- the
CIA's "covert" guerilla war against
Nicaragua.
On the same day that Congress.
troubled itself with its dismissive report
about the murder manual, Mr: Casey's,.'
guerrillas ambushed a truck in. Nicara-
gua and killed 22 civilian coffee pickers.
This is now the favored tactic employed
by Mr. Casey's thousands of guerrillas in
their war against the Sandinistas. In an
effort to cripple Nicaragua's economy
further, they attack coffee farms and
trucks carrying humble coffee pickers.
They hope--thereby to cause an uprising
that will topple the Sandinistas.
When leftist guerrillas employ such
economic warfare to try to topple El
Salvador's government, America con-
demns the immorality of the violence
and can't send enough millions to crush
the insurgents. Yet in Nicaragua the
CIA's rightist guerrillas do the same
thing, and Americans evidently are not
supposed to object.
Americans - particularly those in
Congress. = must object.. The United
States is not at war with Nicaragua.
Congress ordered Mr. Casey not to try to
overthrow the Sandinista regime, yet his
contras clearly are trying. - Nicaragua
alleges that 7,000 of its citizens have
been killed fighting the contras. If . true,
that is a higher proportion of Nicara-
gua's population than America lost in
Vietnam.
If Nicaraguan exiles mount a war,
that's` their business, but for America to
underwrite it and train their guerrillas is
immoral.-Mr. Casey did that, a fact that
the .manual merely underscores. He -must
be restrained, and if he again breaks his
leash, Congress should do all: in its
power to persuade the President to
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 ON PAGE_____- ---- NEW YORK DAILY, NEWS
ARTICLEAfproved For Release 2006/01/17 : CIA-RDP91-0090180004
fiffla
bvlklifest hipi" ck offers
limitecl possibil~tffEes
operates out of the eastern
By BARBARA REHM ' Bekaa Valley in Lebanon, the
United States still has op.
Washington (News Bu- tions, the official said.
reau}-The ability of the For example, when the
United States to retaliate United States received word
against terrorists such as the that terrorists, identifying
hijackers of the Kuwaiti themselves as the Islamic
jetliner in Tehran is 1i- Jihad, planned. to strike a
mited-but not impossible. major American target in
In the view of administra- Lebanon before the Nov. 6
tion officials, "There is a U.S. elections, the adminstra-
growing consensus" among tion moved quickly to de-
Americans for retaliation. _velop a "menu of targets" for
against terrorists who attack retaliation.
U.S. citizens or property. Among them were sus-
"Depending on the depth Syriann-held Bekkaacamps in the
. The Unit.
of Iranian involvement in the ed States sent word that it
crisis, the U.S. can respond would retaliate, and no
in several ways;" a U.S, offi terrorist attack was mounted.
sial -, said, ? We'.6an even re- "That menu still exists,"
spond, I think,- if the finger-? said the official. "A strike
prints aren't as clear as we there may be our best op-
might like." tion:"
If Iran has collaborated But is retaliation an effec-,
with the terrorists, the Unit- tive response?
ed States will push for in- CIA DIRECTOR William
ternational . ' isbiation of C-asev sat m a recen m er-
Ayatollah- - 'Rhollah' Kho- yiew. "There's a question of
meini's regime--"politicall',, cTe-terring terrorism by send-
economically and diploma- :in a message-that, if the
tically," the official said. terrorists attack. there wIT
But Iran still wields con- be reta i-Tat on.
siderable economic clout "It's not necessarily a mat-
with its oil revenues and it is ter of striking back direct y
unlikely that Japan and at terrorists ... I think you
Western Europe, dependent will see more ... retaliation
on Iranian oil, will agree to against facilities connected
drastic sanctions. with the state sponsoring t o
IF THERE is evidence l terrorists or retaliation that
that the hijackers were just hurts the interests of
trained and paid through the countries which sponsor
-Iranian terror, network that errorism.
But even the Israelis have
their doubts. Brig. Gen.
Yehoshua Saguy, former
chief of Israeli intelligence,
says the danger in retaliation
is that "it always leads to
escalation. You have to hit
back a little more vigorously
each time." It becomes a war
of attrition. But, he adds
quickly, terrorism must be
fought.
The 'drama on the ground
at Tehran airport under-
scored just how difficult re-
taliation, -much less a rescue,
can be.
"LTNDFR those circum-
stances, given the logistics,
any rescue attempt is virtual-
ly impossible," said a State
Department official. "Not
even minimum conditions
exist."
He stressed that the hostil-
ity of the Iranian govern-
ment precluded any coopera-
tive or joint mission. Tehran
is 700 miles from any feasible
staging ground. Even the
spectacular 1976 Israeli raid
on Entebbe in Uganda in
East Africa to rescue Israeli
hostages was easier, the off i-
cial said.
"In the case of Entebbe,
there was a hostile govern-
ment, all right, but the hos-
tages were being held in a
building--not aboard a dyna-
mited airliner. Even the
flight and refueling logistics
were simpler," he said.
The only option open to
the United States was Presi-
dent Reagan's personal pleas
to leaders in the Middle East
to exert pressure on Kho-
meini. It was of little avail.
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 _ WASHINGTON POST
For Release 2006/01/1lb: b1A P=311t&0
Firm Allegedly"
Claimed Ties to
By Howard Kurtz
W-Wnzac Post sine writer
A Washington consulting firm has
solicited business from several U.S
Indian housing authorities by saying
it has ties to top officials in the.Rea-.
ganadministration and can -obtain
federal housing grants for its ` 6hI
ents, according. to Indian ~ officials
the firm has approached...... -
The firm is called Gnau, Carter..,
Jacobsen & Associates. Its partners '
include President Reagan's 1980
campaign chairman in Michigan and
a former chairman of the District of
Columbia Republican Party.
In a letter to one Indian housing
authority in Minnesota, the firm'.
cited as references IA-,,Directors
R' m J. --Casey-,r.- White House
counselor Edwin Meese III and dep-
uty . chief of . , staff . Michael K.
Deaver, Housing and Urban Devel-
opment Secretary" Samuel R. Pierce
Jr.; Air Force Secretary Verne Orr,
and U.S. Information Agency Direc-
tor Charles Z;Wick'
Gnau, Carter did not ask the In-
diari tribes for a. fee. Instead, sev-
eral Indian housing officials said,
the firm urged them to hire one of
`its clients, the =John': Cooley..' Con-
struction Co.,,-to build the. federally
financed housing: ;: .,It Lrv
In --one'. case, HUD"9fficialsEZm
Washington awarded .$600,000 in
supplemental grants to a Michigan
reservation;" Keweenaw Bay,-.that
,' ha'd ~.. retained ' Gnau Cart".: - The .
'..consulting-firm later took cr tot
this ' in?its ,letter. to? the M' to
reservation, ,'saying "that,,,.
firm
has directed' housing 'units''froh
HUD to the -Keweenaw Bay Indian
Community."`:ti,'z r ~;3'^< l; r t'
:., The General Accounting Office is
investigating. Gnau, ` Carter's_:in-
volvement with the Indian housing
program, according to officials.fa-
miliar with the case:.:
A seniorTHUD official said last
w
"
eek that it was
absolutely unt
that th% firm . had L?XF Iir
the company had nothing to iio' with
awarding Indian housing grants.
Gnau, Carter officials said last
week that they. never meant to im-
ply that their firm had special_influ-
ence with, HUD and that they. never
promised,;'Indian authorities that
they. could deliver federal grants.,-
Casey, Meese, Deaver, Pierce,
Orr and Wick said thrcugh spokes-
men that they had not given per-
'-mission for the firm to use them as
references. .
The Indian agency 'in Minnesota,';
rthe Fond du Lac housing authority, '
was first contacted by Gnau, Carter
'last spring. Minnie Porter, its ex.
?ecutive director, said she was called
by Gerry Blanchard, then a vice
president of.Gnau, Carter.
Blanchard said "he could get me
25 homes if I would come down to
Washington to see him," Porter'said
:'in an interview. She recalled that
'.Blanchard said his firm "had been
4 given this allotment of 400 homes'.
l... by HUD in Washington."
E f`: In an April 1.8 letter to Porter; '
-Blanchard said his firm was formed
j;ia'March-1981, and that "the part-
'hers and associates have advised
and assisted presidents of the Unit-
ed States, Cabinet secretaries, sen-
.ators and members of the House of
'Representatives, governors, - for-
.. eign governments, national' trade
associations and major. Fortu_ ne 500
"companies."
An attached resume said that,
company chairman John R. Gnau
"has enjoyed a personsl'relationship
and friendship. with.the-president. of.
the United States and his key aides
and advisors for many years." It
said Gnau chaired Reagan's .1976
campaign in Michigan; .he also was
chairman in 1980.
-Roy T. Jacobsen, company. pres-
ident, was described as a political
consultant who "drafted the original
strategy for President. Reagan's
06/01/17 aRDPM WAR000400010 G1 i11L2~
Administration .
 :2-
Approved For Release 2006/01/17: CIA-RDP91-00901 R000400010001-5
Robert S. Carter was described
in the. letter as manager of the 1980
Republican convention, chairman of
Reagan's transition team on the
arts, head of the 1981 Presidential
Inaugural Concert Committee, and
the current secretary of the Pres-
ident's Advisory Committee on the
Arts. He is a former chairman of
the D.C. Republican Party.
Blanchard is an Indian from
Michigan who was formerly on the
staff of Rep. Robert W. Davis (R-
Mich.).
Blanchard's letter said the firm
worked with federal agencies and
Congress for clients ranging from
Continental Airlines to the Haitian
government to John Cooley Con-
struction.
Cooley Construction also sent
Porter a letter that included "an
agreement and letter of intent" for
the firm "to assist in the procure-
ment of housing units" and to build
the housing. The letter from Cooley,
vice president Dale N. Scrace said'
that "working with the Department'
of Housing and Urban Development
I believe we can be of great assist-
ance to your tribe in your effort to
secure housing units."
? Jeffrey T. Wallace, an attorney
for Fond du Lac, told HUD in a let-
ter last April that Gnau, Carter had
.-proposed to "acquire additional
housing units for Fond du Lac Res-
ervation above and beyond the nor-
mal allocation .... As I am sure
you are aware, federal law prohibits
Fond du Lac Reservation Housing
Authority from entering into any
contract of which a fee, gratuity or
other consideration is being paid for
in return for the delivery of federal
funds.
"This linking ... of a contract
with John Cooley Construction Co.
and the receipt of additional 20
units by the Fond du Lac Reserva-
tion Housing Authority is in viola-
tion of the federal law."
Wallace's letter also noted that
Cooley Construction had asked the
authority to sign a contract that had
not been put up for competitive
bids, as HUD regulations require.
Wallace said in an interview that
when the reservation insisted its
own construction company should
handle the job instead-HUD reg-
ulations allow reservations to. give
preference to their own firms-
Gnau, Carter suggested that Cooley
Despite this dispute, Porter later
agreed to meet with Blanchard and {
Jacobsen in Washington. She said
Blanchard told her that "I'd better
hurry because the homes were be-
ing given away."
At the July 17 meeting, Porter
said; the executives pressed her to
sign a contract and did not satisfac-
torily answer some of her questions
about the arrangement. She said
she left the meeting and had no fur-
ther contact with the firm.
HUD neither began an investi-
gation nor took any other action
against Gnau, Carter on the basis of
Wallace's letter, department offi-
cials said last week.
Officials at four other Indian
.housing' authorities .say they re-
ceived similar letters in which
Gnau, Carter offered to help them
obtain federal housing grants and
urged them to hire John Cooley
Construction as their developer.
Only one, Keweenaw Bay, said it
hz. retained Gnau, C rter.
The $600,000 in grants for Ke-
weenaw Bay came from a special
discretionary fund controlled by the
HUD secretary. The department
has set aside 400 of the program's
2,000 housing units' for discretion-
ary awards this year, more than
twice as many as in 1982.
Gnau, Carter officials said they
made no improper representations
to the Indian authorities.
Jacobsen said it had been "bad
judgment" to use administration
officials as references and the prac-
tice had been stopped.
He said that although Blanchard
handled most of the discussions
with Indian officials, "We ' never
promised anybody anything. You
can't guarantee anything in Wash-
ington." The firm's role, he said,
was "'to bring people together ...
to do the paperwork, to find out if
there .was a problem-the normal
representation that one would do if
one is in Washington."
Jacobsen said the firm never
charged the Indians and that "as far
as I'm concerned, it's a marketing
effort that didn't take off." He said
the firm is being dissolved.
Blanchard said he never prom=
ised Indian authorities that he could .
deliver HUD housing. He said he
Construction and the reservation
could enter into a joint Appyeds Ior Release 2006/01/17 : CIA-RDP91
told them that he had "been suc
?cessful in the past" and that it was
"logical" to assume that he could
succeed again, but that he "can't
guarantee anything."
Blanchard said it was "unfortu-
nate" that he had claimed in writing
to have directed housing units from
HUD, and. that he was disturbed to
hear that several Indian officials
believed that he had promised he
could deliver the grants. .
"I will take the blame that obvi-
ously something was interpreted
that way," said Blanchard. "Obvi-
ously it must have come across a
certain way that I didn't mean ... I
didn't explain it clearly."
Blanchard also said he told John
Cooley Construction to send pro-
posed contracts to Indian author-
ities because he mistakenly be-
lieved that the housing could be
built without competitive bidding.
"It's an honest mistake that any-
body can make," he said.
After learning of his error, Blan-
chard said, he asked Indian officials
only that Cooley Construction's bids
be carefully considered. "It was
never a condition" that Cooley be
hired, Blanchard said, although he
hoped that his efforts would make-it
more likely that Cooley would "be
favorably looked at."
Scrace of Michigan-based Cooley
Construction declined to be inter-
viewed.
Other Indian officials said they
also had. received letters in which
Gnau, Carter offered to help them
obtain federal housing grants and
asked that they hire John Cooley
Construction:
^ Nate Young, formerly counsel to
the Cherokee housing authority in
Oklahoma, said: "They made some
strong' allegations that they could
do some things for you, that they
had a special pipeline in with the
secretary [of HUD]. They alleged
that they're strongly wired in with
the administration." Young.said he
threw the letter away.
? George Nolan, director of the
Sault St. Marie Tribal Housing Au-
thority in Michigan, said the firm
appeared to suggest "that they
could guarantee discretionary hous-
ing funds, that they could guarantee
you 25 units .... It looked like
they were circumventing the pro-
cess the rest of us have to go
-0090 4 ?O0? Q11Q 1 Q f 1-9he : firm
"backed off' after he questioned
Blanchard extensively.
Crntntled
 Approved For Release 2006/01/17 : CIA-RDP91-00901 R000400010001-5
^ Brenda Welsh, executive director
of Keweenaw Bay Housing Author-
-ity in Michigan, said her agency
retained Gnau, Carter about a year bit, saying we can get you 50 units
ago. HUD officials in Washington if you hire Cooley."
later awarded her agency 15 dis- Deragon said he met twice with
cretionary housing units. Blanchard last spring. HUD later
Welsh said Blanchard told her awarded the authority 50 discre-
that "if it wasn't for him, we tionary housing units.
wouldn't be getting this money Deragon said he does not credit
I can't understand how come Gnau, Carter for the funding, but
we had never been-able to get into that Blanchard told him, "Just re-
this program, and all of a sudden 15 member who got the units for you
units were placed in our lap." when it comes time to pick a con-
Welsh said that local firms did not tractor." According to Deragon,
have much information about the Blanchard also said that "if Reagan
project and that Cooley Construc- gets reelected, this could be an on-
tion submitted the winning bid. But going thing. We will always hive'
she said Gnau, Carter "was being so these discretionary units at our
pushy" that key HUD requirements hands."
were not met, and that HUD has Blanchard said he did not try to
directed her agency to seek new take full credit for the Bad River
bids. and Keweenaw Bay awards.
^ William Deragon, executive di- Warren T. Lindquist, HUD's as-
rector of the Bad River housing au- sistant secretary for public and In-
thority in Wisconsin, said Blanchard than housing, said the discretionary
told him that through the firm's awards are based on such factors as
"political maneuvering in Washing- special needs and cost-cutting ef-
ton, they had 300 units at their dis- forts.
cretion." Blanchard said "We can "Nobody has any kind of an inside
help you out in getting the units" track," Lindquist said. "The allega-
and "offered us 40 to 50 units," ac- tion that some consultant could pro-
cording to Deragon. . duce HUD units ... is just abso-
After receiving a proposed con- lutely untrue. I can unequivocally
tract from Cooley Construction, say that nobody has any kind of an
Deragon said, he felt that he "was arrangement at all to peddle units
being pressured. They were dan- . that might be available from my
gling the carrot in front.of the rab- reserve fund."
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 Approved For Release 2AMQV;, 'h,7AZGtA 9JAQQ9O1 ""J
9 December 1984
CIA's manual
Casey's charmed life slips him loose from responsibility
CIA Director William J. Casey and other high
agency officials have slipped neatly from the noose
of a troublesome manual for Nicaraguan rebels.
It's amazing how the CIA escapes responsibility for
its escapades.
. Back when CIA employees showed the Nicara-
guan counterrevolutionaries (contras) how to mine
harbors and hand made the devices to do it, CIA
officials tried to wriggle out of that too. At first,
President Reagan tried to minimize the damage by
claiming the mines were homemade. Then admin-
istration officials had to admit that the 'CIA had
made them.
America's super-spy agency got so far out of
hand earlier in Central America that Congress
passed a law in 1982 specifically barring the agency
from trying to oust the Sandinista government in
Nicaragua. But the administration kept winning
money for its so-called "freedom fighters," the
contras, until Congress had to cut it off.
Then came the infamous manual prepared by a
CIA employee in Latin America. It instructed
rebels in Spanish how to assassinate selected gov-
ernment officials, hire criminals to arrange the
murder of fellow rebels in order to create martyrs,
and blackmail Nicaraguan citizens into joining the
rebel cause. The manual not only violates the Bo-
land law, it also violates a 1981 order by Reagan
that bans CIA participation in assassinations.
A House Intelligence Committee last week veri-
fied the manual's illegality but found it came about
through CIA "negligence, not intent to violate the
law." The committee refrained from accusing
Casey and said it planned no further action.
Earlier, five mid. and junior-level CIA officials
were disciplined over the manual and its author
was allowed to resign. It's difficult to imagine how-
no higher level officials knew about the caper since
all 3,000 copies of the book were printed right at CIA
headquarters in Langley, Va.
Casey and company lead charmed lives. The
zealous excesses of employees under them only
reflect the kind of misplaced instruction they're
getting from their bosses. That takes the blame
right back where it belongs - with Casey.
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 Approved For Relei 9MMP W&4 *901 R000
9 December 198
By HARRY HOWE RANSOM
ONCE again the Central Intelligence
Agency is in trouble.
In 1981, Ronald Reagan issued a
directive confirming earlier chief exec-
utive orders prohibiting CIA participa-
tion in foreign assassinations. In 1982,
Congress passed a law barring any CIA
effort to overthrow Nicaragua's govern-
ment. Last Week, the majority on the
House Intelligence committee reported
that the CIA-sponsored manual for con-
tra rebels violated both prohibitions.
THE HEART of the House Intelli-
gence Committee's report was that the
CIA training manual for Nicaraguan in-
surgents was prepared with unintention-
al disregard for federal law. The com-
mittee also pointed to a lack of CIA
command and control procedures. The
agency was charged with "negligence."
Many Americans may be wondering
whether the CIA is a "rogue elephant"
after all, or whether the Reagan admin-
istration is pursuing a secret foreign pol-
icy with the agency as fall guy.
After a decade of efforts by presi-
dents and Congress to restrict its activi-
ties and bring it, within the law and the
Constitution, the CIA still shows signs of
being a state within a state. CIA accoun-
tability remains elusive. With regard to
recent Central America escapades,
Reagan appears to evade responsibility
and CIA Director William Casey contin-
ues to live a charmed political life.
WHY IS the CIA perceived ? as the
problem child of American government,
the juvenile delinquent of American for-
eign policy? As a long-time academic
observer of the CIA, I suggest the follow-
ing answers: serious organizational mis-
takes at the beginning of the CIA's de-
velopment, presidential misuse of covert
operations, congressional timidity in its
watchdog role and recent tendencies to
politicize the CIA.
Two other complications can be cited.
One is constitutional. The United States
is the only nation that attempts to man-
age secret operations by separating ex-
ecutive and legislative institutions while
having them share authority.
This invites presidential-congressional
conflict over who is to determine policy
and control secret operations.
A second problem is that America is
perhaps the only major nation that takes
its ideals seriously In the realm of for-
eign affairs. Americans are uneasy in
peacetime with the secrecy, deception
and illegal actions inherent in clandes-
tine operations. These may be indelible,
so we must look to those parts of the
system that can be repaired.
BETWEEN 1948 and 1952 separate
organizations existed for foreign
espionage, clearly a CIA role, and co-
vert action, which Congress never di-
redly assigned to the CIA.
A separate "Office of Policy Coordi-
nation" was created in 1948 and con-
trolled by the State and Defense Depart-
ments to carry out secret foreign politi-
cal interventions Incompatible with
diplomatic and military practices.
Espionage and covert action were com-
bined under the CIA roof in 1952 to
avoid duplication. That was a mistake.
Clandestine activities became the CIA's
dominant function. Intelligence analysis
suffered.
The CIA takes its assignments from
the National Security Council on which
only one person has a vote, its chair-
man, the president. In reality, the CIA is
the president's secret weapon, to be
used at his discretion.
SOME presidents, notably Lyndon
Johnson, Richard Nixon and Reagan,
have misued the CIA as an expedient,
usually in the absence of foreign policy
consensus. The hope was to evade pub-
lic and congressional debate. On occa=sion, the CIA has even been directed to
violate its legislative charter prohibiting
'domestic spying. And presidents have
ordered the CIA into foreign interven-
tions that Congress would not approve.
Controversies that have ensued from
exposed covert actions have politicized
the CIA. Jimmy Carter made the CIA a
major issue in his 1976 presidential cam.
paign. He was the first President to treat
the CIA directorship as a partisan ap.
pointment in his incoming administra.
tion.
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 Y
Approved For Relea
e b1~ 90901 R0004
Did the CIA's Casey hoodwink Congr
In clandestine intelligence or covert action against
another country, the doctrine of "plausible denial"
is cardinal. Plausible denial means that if the
activity is uncovered, links to the United States
must be tenuous enough that national leaders can
deny responsibility. People and governments famil-
iar with the situation may, suspect that the United
States is involved, but no one must be able to prove
that. The doctrine was intended to deny enemies of
the Unite ates an advantage in the court of
world opinion. But in the case of the CIA training
manual prepared for Nicaraguan rebels, a variant
of plausible denial seems to have been used effec-
tively on the U.S. House Intelligence Committee.
Last week, after a closed-door session with CIA
director William Casey, the committee issued a
statement on the manual episode. The committee
found that the manual violated U.S. law by advocat-
ing the overthrow of Nicaragua's Sandinista gov-
ernment. - The.., committee -said that the manual's
reference;:to, "neutralizing" Sandinista officials
"would suggest assassination" and that the man
ual's comments about "shooting civilians trying to.
leave captured towns, blackmailing others to work
for the contras (rebels), and endangering innocent'
people by inciting violence in mass demonstrations
.-raise the issue of whether (these activities) are
consistent with U.S. policy."
Nevertheless, the committee concluded that "negli-
gence, not intent to violate the law, marked the
manual's history," because "CIA officials up the
chain of command either never read the manual or
were never made aware of it."
The committee's conclusions read like plausible
denial atwork. If senior officials were unaware of
the manual, why did such strong, uncharacteristi-
cally public reactions come from several junior
CIA employees who were disciplinea over it: iney.
said they were made scapegoats for higher CIA
officials. Maybe the junior employees were unwill-
ing to admit that only they were at fault. But if
their finger-pointing were a lie, the agency would
have fired them. It hasn't.
Another reason to suspect that Casey has plausibly
denied responsibility is his aversion to congression-
al oversight. The most dramatic illustration was his
failure to adequately inform the Senate Intelli-
gence Committee of CIA involvement in mining
Nicaraguan harbors. Suspicion arises, too, because
of Casey's ethical lapses in both business and gov-
ernment. The man appears to believe that be is
exempt from normal rules of conduct.
Even if the House committee was right in finding
negligence rather than deception among top CIA
officials, that conclusion is nothing to celebrate.
Another conclusion is equally distressing: -So .long
as Casey remains CIA director, Congress is unlikely
to monitor the CIA effectively. Sen. Barry Goldwa-
ter called for Casey's resignation more than:-a year
ago. Sen. Dave Durenberger, who will succeed
Goldwater as head of the Senate Intelligence Com-
mittee, last month strongly criticized CIA involve-
ment in covert activity against Nicaragua. That
involvement, Durenberger said, damages both the
intelligence process and congressional oversight.
We agree.
Rep. Norman Mineta, a member of the House
Intelligence Committee, dissented from that panel's
gentle judgments of the Nicaraguan manual epi-
sode. "It's time for Casey to resign," Mineta said.
"Mr. Casey's stewardship is doing more damage
than good in terms of what the goals and the
character of the CIA are." We agree with Mineta
too.
I
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9 December 1984 YQILE MR,
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=Much ado abou# what?
eating assassination of public officials That raises questions about the presi-
al1d the overthrow of the Sandinista dent's judgment in siding with the con-
_government in Nicaragua was illegal. tras in Nicaragua. That's the same
That's in' addition to what was al-. group accused of ambushing a carload ti
ready known about the manual: that it of coffee bean pickers in northern Ni-
,. was an embarrassment.to the Reagan caragua the other day and leaving 20 of
,."administration, that it undermined- them dead by a roadside. Any U.S.
credibility in. the United States' efforts manual recommending further
to stabilize Central America and that it bloodshed in Nicaragua, it seems to us,
was just one more sign of the utter con is much` ado about everything that is
?A;fusion that. seems to pervade the Rea- going' on in that country-
'-gan administration foreign policy in The House Intelligence Committee
..Latin America. 4' firmly disagreed with the president's
The manual, .which surfaced in Octo- position Committee ChairmanEdward
her, recommended that Nicaraguan .._Boland, who sponsored the law.j
-"rebels resort to "selective violence" to prohibiting American personnel from
"neutralize" leading figures of the left- trying to overthrow the Sandinistas,
;;ist Sandinistas.. It also suggested..creat-. was highly critical of the CIA manage-
,ing martyrs `by_ killing =certain rebel ment, and a committee report called the
allies in -orchestrated,' violent demon document "repugnant" and an em-.
trations. 'So much for the moral high - barrassment to the United States."
ground. Boland also said it raises questions
about the judgment of the CIA's leader-
f, ? Not least of the problems with the ship in allowing its employees to come
Manual was the fact that it directly vio-
fated a U. S. law forbidding U. S. per- up with recommendations for violating
sonnel to participate in any effort. to U.S. laws. As one committee member
put it;' "We're allowing them,(the CIA),)
overthrow the Nicaraguan government.
to pick and choose which laws they I;
So much for the legal high ground, too. want. to obey.".But the committee did
The C was quick to say that the not recommend any specific actions
pamphlet--was written by a low-level against CIA employees, including CIA
contract employee, and , had not been Director. William Casey; who nominally
formally approved for use in the field accepted responsibility for the manual..
But copies of it found: their. way to the So that pretty much leaves the Rea
administration-backed Contra rebels -. .'gan administration and the CIA free to
and into the world news, too..
continue doing what they want to do in
President Reagan at first vowed to Nicaragua. But the central question
'-hold the CIA responsible ?forthe man= should be, what is the administration
-ual, but after reviewing it the president doing. there? And why?
has Concluded that a CIA manual advo about nothing."
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 Approved For Release 2009/0174IAZ14OP9i01 RO00400i
In from the cold
he Central Intelligence Agency has
gotten off the hook of the Nicara-
guan "contra's" guerrilla-warfare
manual on a sort of technicality it can
hardly consider a vindication. The Demo-
cratic-majority House Intelligence Com-
mittee has concluded that the CI,. had "no
intent to violate the law" and was guilty
simply of incompetence - "negligence"
was the diplomatic term.
The law is the 1982 Boland amendment.
to a measure financing CIA support of the
Nicaraguan rebels; it forbade the CIA to
attempt thereby to overthrow the Marxist
Sandinista government of Nicaragua. Vio-
lation carries no penalty, and the commit-
tee did not call for any punishments
beyond the CIA's disciplining of five
lower-level officials (some of whom have
reacted sharply against what they consider
'being made to take the rap for higher-ups).
The whole hair-splitting argument over
the contras has been something out of
"Alice in Wonderland." The Re,oan
administration's explanation is that the
contras e ar interdicting Nicaraguan aid to
the Salvadoran guerrillas and putting
pressure on the Sandinistas to stop
exporting leftist revolution and moderate
their dictatorial manner in Nicaragua. But
the contras are anti-Sandinista Nicara-
guans whose basic interest is not securing
El Salvador or forcing the Sandinistas to
behave, but. throwing the Sandinistas out
- a consummation, whether officially
admitted in Washington or not, that is
devoutly to be wished.
But let that go. The CIA now stands
congressionally accused of as serious a
charge as can be leveled against an intelli-
gence/espionage service: hamhandedness.
Few in the agency, but its author
apparently paid much attention to the
writing, printing and distribution of the
manual, although it is axiomatic in the
trade' that one does not write down any-
thing one does not want the other side to ,I
read and reveal. The manual incident, said
the committee, "illustrates once again ....
that the CIA did not have adequate com.
mand and control of the entire Nicara
guan covert action." .
The committee forbore to call for the-
removal of CIA Director William J. Casey,
for while he "ultimately probably would be
responsible," it would be unfair to expect
him to know about all agency activities.-
That is a reasonable judgment. But one'i
member did call for Mr. Casey to resign,
saying, "Mr. Casey's stewardship is doing
more damage than good."
How well an intelligence director 'is"!
doing is impossible for anyone not privy to
his secrets to judge, but one could well sus-
pect that Mr. Casey could be a liability in
this particular area of operations. His
gruff, Sly Old Fox manner seems to alien-
ate even many - most crucially, in Con-
gress - who support his goals. One thinks
wistfully of Mr. Smooth Bobby Inman, the
former deputy director who should have
been offered the directorship and cajoled,
into accepting it. We doubt whether he~<
would have mined Nicaraguan waters or;
let a how-to-kill-them manual be distri=;
bated in the field. His reputation among
the congressional overseers was for candor,:
and credibility.
But let that go, too. The agency and '
Congress are now more or less back to zero'
on the subject of Central America. Mr..'
Casey and the CIA are in from this spell of
cold, and the next time they go out we
hope they button up their trenchcoats.
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D,____
I98
7
ber
control''
'Lack of
.
Central Intelligence Agency director William,,Casey
continues to represent disaster waiting to happen, as is made
clear by what may be the final chapter in the case of the noto-
rious CIA manual for fomenting, counter-revolutionary
terrorism in Nicaragua.
The House Intelligence Committee this week concluded
that the manual which, -among a.host of other'dirty tricks, ad-
?vwas
vocates the assassination of Nicaraguan officials,'-.
prepared without regard for federal law. The committee cited
CIA negligence, lack of command and control and "extremely
'Poor management." Committee Chairman Edward Boland,
,D-Mass., found it "incredible" that no one in authority at the
CIA read the document before'its publication one year.ago.,.,.
Casey himself was spared direct criticism, although,,. his management of. 'the .CIA's entire:' Nicaraguan operation
reportedly has further eroded his support among members of
both political parties in Congress. Well it should. The erosion
process is long and uninterrupted.
Last spring Casey acknowledged failure to inform,
Congress of the CIA's sponsorship of the mining of,
Nicaraguan harbors, an ineffectual exercise that has
embarrassed the United ; States before the World Court.
,Earlier in his tenure as CIA chief Casey 'has been in and out'
of hot water for various financial shenanigans, including
involvement in millions of dollars of -stock transactions while..
having access to the government's most sensitive economic
data, and failure to, disclose fully his financial holdings at.the',
time of his appointment. .
Casey's far-reaching financial and political connections.
seem to make him impervious to calls for his removal from
CIA leadership, and President'" Reagan has remained
unbendingly loyal to his appointee. Loyalty is a commendable
trait up to a point, but it needs reassessment when bestowed I
upon a loose cannon capable of .serious damage not only to the'
Reagan administration but also to the nation at large.-
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Teaching rebels
The Central Intelligence Agency has long been helping'
anti-government' rebel forces in Nicaragua in various ways,
some plainly illegal.
Now there are persuasive indications that the CIA has
even gone so far as to coach rebels on lobbying members of the
'United States Congress.
Such-interference. in our domestic political affairs cannot
be tolerated. If allegations about what the CIA is up to prove
accurate, Congress should insist on strong isciplinary ac-
tion-and that might very appropriately include the dismissal
of William J. Casey as 'Director of Central Intelligence.
There`is a convincing air of plausibility about the reportsK
thus far. Judgment.must be reserved, however, pending in
'vestigation of what has been going cn.
Such an inquiryhas been called for by Sen. Daniel Patrick.'
Moynihan.of New York, the vice chairman of the Senate In-
telligence Committee. This comes very soon after Sen.
Moynihan's scornful branding, as a veritable whitewash, of.
the agency inspector general's report on the CIA-produced in-
surgency manual used in Nicaragua.
That venture in teaching the rebels the uses of blackmail
and murder in their fight against the Sandinista government
makes-it all the more urgent that the full story of CIA lobbying
instruction be made public.
For such conduct by. the nation's primary foreign in
telligence apparatus would run counterto law in two respects:
it. would constitute an illegal domestic operation, and it would.
flatly'violate the legal requirement that Congress be kept in-
formed about any "significant" CIA activities.
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ON PAGE. C-10 NEW YORK DAILY NEWS
7 December 1984
THE BIG and high y unpubli-
cized Christmas party for the White.
House administrative staff was the one
tycoon Roy Pfautcb gave last week with:'
a famous mystery.. Santa Claus The
k. latter;, turned out to -.be.il>Casey~:
J4 rector_of 'the-CIA;_and he kept-insist=;
his bearded a e.
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ra, pm 117 App
IA-R91I~01RQ00400010001-5
r?ved For Release 209~- 1/j
.., 4QLAL~r.1 ~~
.
6 December 1984
CIA manual
flouts law,
panel says
T
By Alfonso Chardy
Enqutrer Washington Bureau
WASHINGTON - The House intel-
ligence committee concluded yester-
day that a CIA manual for U.S.-
backed Nicaraguan insurgents
violated a 1982 law prohibiting at-
tempts to overthrow, the Sandinista
government and revealed a lack of
"adequate command and control of
the entire Nicaraguan covert ac-
tion."
In a one-page report,..the committee
said preparation of the manual,
which referred to "neutralizing"
Nicaraguan officials, was marked by
negligence, incompetence and confu-
sion. But it said there was no inten-
tional violation of either the 1982 law
or a presidential prohibition against
promoting assassinations.
Boland (D., Mass.) said the panel
would not seek further action
against the CIA or its director, Wil-
liam J. Casey, but insisted that Casey
bore indirect responsibility for the
manual.
Last month, President Reagan con-
cluded an internal investigation by
ordering formal reprimands of six
mid-level CIA employes for their role
in overseeing the manual.
" One can say that Casey ultimately
probably would be responsible for
it," said Boland, "on the basis of the
fact that the progratn was poorly
managed and run very unprofession-
ally."
However, at least one committee
member, Rep. Norman Y. Mineta (D.,
Cal.), called for Case s resignation
and blamed the panes refusal to be
"tougher on the agency" on its desire
to preserve "good relations" with the
CIA.
Another member, Rep. Wyche
Fowler Jr. (D., Ga.), stopped just
short of demanding Casey's dismiss-
al, declaring that the CIA director
had admitted the agency was "negli-
gent" in failing to properly supervise
preparation of the manual.
The report concluded two days of
closed-door hearings on the 90-page
manual, titled "Pyschological Opera-
tions in Guerrilla Warfare." The doc-
ument's existence was revealed in
the news media in mid-October, caus-
ing a pre-election furor.
The manual advocated the "selec-
tive use of violence" to "neutralize"
some Nicaraguan officials, and one
segment also contained the word
"derrocamiento," which is Spanish
for overthrow. Administration crit-
ics argued that neutralize was a eu-
phemism for assassination.
The document was written by
someone using the pseudonym "Ta-
cayan," who later was identified as
an American named John Kirkpat-
rick, a CIA contract employe. Howev-
er, it is not clear if- that is his real
name.
The report said that the manual
"was written, edited, distributed and
used without adequate supervision.
No one but_ its author paid much
attention to the manual ... " -
"The entire publication and distri-
bution of the manual was marked
within the agency by confusion
about who had authority and respon-
sibility for the manual," the commit-
tee said. It added that the manual
illustrated. "once again to a majority
of the committee that the CIA did not
have adequate command and control
of the entire Nicaraguan covert ac-
tion."
The committee said it also learned
that high-ranking CIA officers, such
as Casey, never reviewed the manual
- a fact that Boland termed "incred-
ible" - and that not all CIA officers
were aware of the existence or sig-
nificance of the 1982 law prohibiting
efforts to overthrow the Sandinistas
or even Reagan's own prohibition
against assassination.
"The committee believes that the
manual has caused embarassment to
the United States and should never
have been released in any of its vari-
ous forms," the panel report said.
But, it concluded, "Negligence, not
intent to violate the law, marked the
manual's history."
Boland said that Casey disagreed
with the committee finding that th..
CIA had violated the prohibition
against attempts to overthow the
Sandinistas, which is contained in an
amendment Boland himself spon-
sored.
"He read into the Boland Amend-
ment that the agency had to have the
intent to overthrow the Sandinista
government and that that is not the
intent of the United States," Boland
declared.
However, he said, the existence of'
the manual reinforced the commit.
tee's belief that the Reagan adminis.
tration was seeking to topple the
Sandinistas, and he repeated his call
for Congress to cut off all U.S. aid to,
the insurgent contras when the issue
came before Congress again next
month.
cc-,t`1uT.
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Untied Press international
Casey arrives at the Capitol for a closed hearing on the manual
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 m 901 8000400010001-5
Pk"VCLE APPS oved For Release 2006/01~ Dec IA p
More than a squabble over the First Amendment: An end to truth in the skies?
Peon Versus Press
When it comes to manned missions, NASA has always fol-
lowed a policy of freedom in space-allowing reporters almost
unlimited access from liftoff to landing. But the era of truth in the
skies is coming to an abrupt halt with the space shuttle's first
overt military mission-a Jan. 23 flight designed to place a
sophisticated spy satellite into orbit. Last week at a NASA press
briefing, Air Force spokesman Brig. Gen. Richard Abel declared
that reporters would be allowed no contact with the crews, no
audio or video signals from the shuttle in orbit and no informa-
tion whatsoever about the cargo. Defense Secretary Caspar
Weinberger, Abel said, had already intervened with three news
organizations to suppress stories on the shuttle's payload. Abel
also threatened to investigate if the press even speculated about
its significance. "It was like waving a red flag in front of a bull,"
groused one top Reagan official. Sure enough, two days later The
Washington Post cobbled together what it could on the satellite.
And on national television, Weinberger bitterly denounced the
newspaper for "giving aid and comfort to the enemy."
The fact that the Defense Department was putting a highly
classified cargo aboard shuttle flight 51-C was no secret. Avi-
ation Week (sometimes referred to by the Air Force as Aviation
Leak) had reported as early as last April that the Pentagon
planned to launch a device known as an Inertial Upper Stage
(IUS) from the shuttle. Since the IUS has only one use-to put
heavy payloads into high, stationary orbit along the equator-
that fact alone revealed that the shuttle would probably be
carrying a spy satellite of some importance-probably able to
tune in on a wide variety of Soviet radio, telephone, microwave
and satellite transmissions. In a way, the new satellite is the son of
the Iranian revolution. The fall of the
shah cost the United States a top-secret
mountaintop monitoring station that for
more than a decade stared right into the
heart of the main Russian test range.
Since then, U.S. intelligence agencies
have invested hundreds of millions of
dollars in developing the new generation
of spy satellites, of which the shuttle
cargo is merely the first to go into orbit.
NBC radio reporter Jay Barbree, who
has covered NASA since the 1950s, may
have been the first newsman to decipher
the shuttle's secret mission. Barbree was
ready to air his scoop in mid-November
but was forced by the network to wait
almost two weeks so his counterparts in
television could prepare a story of their
own. When NBC Pentagon correspond-
ent Fred Francis called the Air Force on
Nov. 28 for a routine confirmation of
Barbree's exclusive, he triggered a major
damage-control operation. The network
agreed to quash the entire story after
Weinberger phoned Lawrence Gross-
man, the president of NBC News. According to Grossman,
Weinberger stressed that "this was a matter of utmost national
security." The defense secretary's apparent reasoning was that
the more information the Soviets had, the more easily they could
track the shuttle launch and the satellite. CIA Director William
Case also made a separate plea to NBC executiv .
Cooperation: A senior Pentagon official compared the next few
days "to trying to keep a chicken-house quiet next to a busy
highway." Weinberger interrupted a meeting with West Ger-
man Chancellor Helmut Kohl to dissuade CBS News from
running the story. Top Pentagon officials won similar coopera-
tion from The Associated Press. NEWSWEEK decided not to
print details about the shuttle mission at the request of senior
administration and military officials. The Washington Post had
not been tracking the story at all-and had not even sent a
reporter to the Abel briefing. "What we really did was put it
together from what was known," says executive editor Benjamin
Bradlee. "It [gave] a semblance ofhot news, but it wasn't, really."
So had the Post actually harmed the national security?
No, says Bradlee-and Senate Intelligence Committee vice
chairman Daniel Mo n an agrees: "In my judgment and in
[committee c airman] ] Barry Goldwater's judgment, there is
nothing in that story that was not already public knowledge."
That in itself puzzles many in Washington. The volume of leaks
on the shuttle has been so great, in fact, that some speculate that
the Air Force itself may be responsible-perhaps trying to
discredit NASA in order to win support for its own new fleet of
unmanned satellite launchers. Whatever the truth, it is hard to
believe that so many could know so much about a "secret"
without the Soviet Union's knowing most of it, too.
WALTER SHAPIRO with KIM WILLENSON in Washington and
LUCY HOWARD in New York
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pEARE~
+ 1t'!.F
_
n 1 ? R R ~
WASHINGTON lIMES
$ December 1984
MERRY LITTLE
to ~ wiL 2E
weaver ticxiec the ivories
onstage, again. Charlie
Wick led the carolling, again.
Warbling elves were Sue Block,
Joan Clark, Carolyn Deaver,
Ursula Meese, Jean Smith and
;Mary Jane Wick, some again.
(Midge Baldrige, wife of the Com-
?merceSec, was to warble along.
But Mac had cut his hand roping
calves, and had to flee home in
pain.) Maggie Heckler, the HHSer,
read from St. Luke; White Howe
Personnelmeister John Herrin-
ton did "Ni
Christmas;" And there, darlings,
stood the pride of the CIA, Bill
sey, in full Santa get-up
and mega-beard, giving ifties to
the Administration's goo boys.
(White House counsel Fred.
Fielding said he'd. meet the bad
ones at Yankee Stadium.) It was, of
course, superlobbyist Roy.
Pfautch's third annual Christmas
dinner for his intimate chums. (He
,now has 430'of them, so it had to
be in the Departmental Audito
rium.) New this year: "Four More
Years" sung to the tune of "Jin-
,gle Bells;" and everybody at Ear's
table ate his very first star-fruit.
(L'here's always some kind of First,
darlings no matter, how long we
ng around Washington Tbtnor ,
grow something newt
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M11"LE * APPEARED nit
WASHINGTON POST
5 December 1984
.Panel Starts
Hearings on
CIA Manual
House intelligence committee
`members yesterday began two days
of dosed-door hearings on whether
:a CIA-produced guerrilla warfare
manual for use by rebels fighting
the leftist government of Nicaragua
violates an executive order banning
assassinations.
The committee was given a staff
briefing on the matter, after which
one Republican member said it ap-
peared that some versions of the
90-page manual, which advocated
the "selective use of violence" to
"neutralize" some Nicaraguan offi-
cials; violated the executive order.
But he said few copies of that
version were distributed to the reb-
els fighting the Sandinista govern-
ment. Most received a more strictly
edited edition.
The panel is expected to hear
from, Central Intelligence Agency
Director William J. Casey and other
agency officials today.
An- investigation by the CIA in-
spector general concluded that the
manual did not violate the executive
order or a law that prohibits the
CIA from trying to overthrow a
., ;government.
The inspector general's report,
-.however, said six employes in-
volved with the manual had shown,
bad judgment and should be disci-
plined.
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 :asey's reign o:f error
Approved For Release Pt3LI% IRBP(9L 00901 R
5 December 1984
From the beginning, CIA-Director mining of Nicaragua's harbors - a
:William Casey has been an nbarrass- questionable policy decision in itself.
nien't to the Reagan administration. The decision provoked world criticism
Now, Casey is more than., "an embar- and landed the United States in front of
Tass'ment and 'Ne` sho iln be` asked .`to the World' Court. Last week, the court
resign. ruled the actions were illegal.
Controversy- has dogged Casey What -made Casey's authorization
-since he was appointed in 1981. Late in worse still was that he did so.without
the summer of that year, questions notifying members of the Senate Intelli-~
;about Casey's business dealings sur- gene e panel, including senators who
_faced during a Senate Intelligence pan-. were firm supporters of- the Reagan,
.el investigation of Casey's decision to administration's policies in Central
appoint the clearly unqualified Max America. It was:_a major political gaffe
Hugel as his No. 2 man. and it revealed. that Casey had little
Hugel's hasty, and forced- departure regard for e the ,proper channels of gov-
and some charity toward the Reagan emment:
`administration from Sen. Barry Gold- Now comes news that Casey autho-
!.water kept Casey's financial dealings, rized the CIA-prepared "terrorist" man-
:from becoming a scandal at that time, ual to help the - Nicaraguan rebels _fo-
but questions about them were to.arise ment unrest and unseat the
again and again. Sandinistas. Casey probably was not
Not three months later, Casey was aware that the manual would evolve
accused of conflict of -interest when he into a primer on murder and other
.refused to put his multimillion-dollar violent terrorist measures, but he
`stockholdings in a blind trust. After a should have been. He authorized its
`good deal of political pressure, Casey preparation and publication and he
'.'first agreed to make-his financial hold- should have known what was going
sings public and, after nearly two years- into the manual. If he had seen the
and a series of, accusations that he was final copy, he should have stopped
using CIA information to pump up his publication, immediately. He did not
bank account,, he finally put his hold- and he must assume responsibility for
ings in' a . blind trust. Even then, there it.
:were. accusations and denials - that ` The President has already men-
Casey still was manipulating-the trust. tioned 'a fair penalty for Casey's mis-
But no proof.. take. _In the second presidential debate,
These unsavory incidents cast a President Reagan promised to fire who-
:shadow over Casey's personal integrity ever was responsible for the pre-para-!
and should have been reason enough Lion and distribution of the manual. 1
for his resignation. Yet he wasn't The President should' hold himself
forced to resign. to his promise.-In his time as director;
Now, on the basis of two Casey of the CIA, William Casey has damaged'
decisions within the past year, he his own credibility, that of the CIA and;
should be. that of the United States. It is time for'
In January, Casey, authorized the him to go.
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 Approved For Releasf g0(YRJ4j17,7RftSP 'PP991 c19 40 ~n1
4 December 1984
1-low, the Ciao, Casey
sacrificed the truth
She came in early to our offices on
a Monda3morning to talk about the
American role in Central America.
She represents U.S. Out of Central
America - USOCA -- a group based
in San Francisco with offices
,,throughout the country and spon-
sored by several well-known Ameri-
can liberals. The woman's point was
-=two-fold: The problems in Central
America are -caused by the extreme
poverty of the region
and the United States
should withdraw its
=military aid from El
-Salvador and from the
contras trying to over-
-throw the Nicaraguan
government.
We share her basic
analysis, except for
`one important point.
We do not believe citi-
zens of those countries
would necessarily
-solve their own prob-
lems if the United
ful Americans that the U.S. govern-
_ment is the real threat in the hemi
sphere. The administration has been
only too eager to play the role of
aggressor
Consider, also, the guerrilla man-
ual, prepared by a CIA employee and
distributed to contra fighters. Some
versions advise political assassinations
and terror, and the CIA already has
admitted. the production of the man-
uals was a mistake. A
few weeks ago, CIA
director William J.
Casey ordered 'six
mid-level employees
of the agency disci-
plined. Now, it devel-
ops, Casey himself
was reportedly
involved in the early
planning that led to
the manual.
Again, the conduct
of our government
has reinforced the
view that the United
William J. Casey
States got out altogether, which seems
to be the view of USOCA. But where
does the notion that the American
government is behind many of the
problems in Central America come
,from? The answer is, in part, from
'the American government.
An excellent case in point is the
,conduct of the CIA. Without express
congressional approval, it aided in the
mining of Nicaraguan harbors. The
Reagan administration refused to
honor the request of the World Court
to justify the mining historically
regarded as an act of war. Only a
furor over the incident in Congress
put an end to the mining.
It's easy to see why Nicaragua has
persuaded some reasonably thought-
States is the preeminent troublemaker
in the region.
For our part, we would still like to
believe that the Reagan administra-
tion is committed to a peaceful, demo-
cratic solution to the conflicts in both
El Salvador and Nicaragua. We stillbelieve the administration simply is
mistaken about the best way to
achieve that solution.
But we also understand those who
believe the administration is not act-
ing on good faith, that it's really
interested in U.S. dominance in Cen-
tral America, not a trade and cultural
relationship of free nations.
Casey and the CIA have strained
U.S. credibility severely. It's time for a
maior. fundamental chanae_ ..
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 ASSOCIATED PRESS
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CASEY REPORTEDLY OK'D NICARAGUAN PSY-WAR PROGRAM
ROBERT PARRY
WASHINGTON
The decision to hire a psychological warfare expert
manual for Nicaraguan rebels emerged from a mid-1983 m
officials, including Director William J. Casey, accord
officials.
But the officials said the initial decision by senior o ficers is not
examined in a still-secret CIA inspector general's report that recommended
disciplining six'mid-level agency officials, some of whom claimed they were
being made "scapegoats."
The government officials also said that investigations into the manual have
found no evidence that Casey or other top CIA officers specifically ordered
that a booklet be written or knew about its advice on the "selective use of
violence" to "neutralize" Nicaraguan government officials.
The officials spoke only on condition that they not be identified by name.
But one official said some of the punished CIA officials contend the manual
reflected a "command-and-control problem" and that some blame should fall on the
"people who recruited (the expert) and dispatched him" without adequate
guidance.
According to that view, the decision to conduct a psychological warfare
program represented a poorly designed, high-level order given to an overzealous
operative to carry out, the official said.
The inspector general's report, however, concluded that mid-level officials
were to blame for failing to properly supervise the psychological warfare
expert, known by his pseudonym John Kirkpatrick, and production of the 90-page
manual, entitled "Psychological Operations in Guerrilla War."
After being recruited during the summer of 1983, Kirkpatrick wrote the manual
in October of last year. Besides the "neutralize" section, the original version
called for hiring professional criminals to carry out "selective jobs,"
creating a "martyr" for the cause, and coercing Nicaraguans into carrying out
rebel assignments.
The House Intelligence Committee has scheduled a hearing Tuesday on whether
the manual violated a presidential executive order barring U.S. involvement in
assassinations or a 1982 law prohibiting the CIA from trying to overthrow the
leftist Nicaraguan government.
Four government officials, who discussed the steps that led up to
Kirkpatrick's hiring, said the decision came out of a June 1983 meeting in
Tegucigalpa, Honduras.
The officials said the meeting, chaired by Casey, also involved deputy
director John McMahon; Duane Clarridge, then head of the CIA's Latin American
Division; and senior officials of the agency's International Affairs Division,
which oversees oaramilitarv operations.
None of the high-level officials reportedly involved in the decision to hire
a psychological warfare expert was disciplined, and CIA spokesman George
Lauder said cone of ahem would comment publicly on the manual. Codaued
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 Approved For Releacm 2006/01/17: CIA-RDP91-00901
ARTEt'LE APPEARED.
Q PAS - WASHINGTON POST
2 December 1984
Joseph Kraft
Leadership
That Isn't
:There
Here's a scenario for quick relief from the coun-'
iry's most acute foreign and domestic problems:
Start with progress on arms control. Easing of
tension with Moscow frees Congress to do what it
wants to do anyway-cut the defense budget. Re-
' ductions in military outlays make it fair to cut so-
dal spending. With social and military spending
being chopped, taxes can be raised as a measure of
last resort in closing the deficit.
A main problem with that formula happens to be
the president. Ronald Reagan wants to reduce the
deficit almost exclusively by squeezing social
spending and thus restricting the role of govern-
ment. He opposes cuts in military spending and tax
-hikes with a zeal approaching dottiness.
? But Reagan is a special kind of president. He is
laid back, at times even inert. He pays little atten-
tion to detail. His skills as an actor enable him to
play almost opposite roles. He can 'be General
Custer one day and Sitting Bull the next.
Moreover, he cares about ideology. Like others
with that bent, he sustains his purity, when unable
to get his way, by backing utopian schemes. For
example, since he can't stop abortion by statute, he
goes to the never-never land of a constitutional
amendment.
Finally, Reagan's right-wing followers are
themselves divided. Inside the ' conservative
movement, traditionalists (such as Barry Gold-
water) war with populists (such as Rep. Jack
"Kemp) on practically all issues except ideology.
So in dealing with real-life problems, there is
scope within the administration for people who
are not ideological soul rhates of Ronald Reagan.
Indeed, by a process easier to feel than to under-
stand, moderate problem-solvers have been ris-
ing to the top of the administration on the very
morrow of the Reagan landslide. -
In foreign policy, Secretary of State George
Shultz and the national security adviser, Robert
'McFarlane, have asserted new primacy. Both favor
a serious approach to Moscow on arms control,
They kept the subject warm during the campaign,
and Shultz will take it up anew with Foreign Minis-
ter Andrei Gromyko in early January,
. ? The Shultz-Gromyko dialogue, now shaping up,
provides a good forum for making progress. Al-
ready the elements of a deal are obvious-trading
,U.S. restraint in anti-missile defense in space for
Soviet restraint in offensive nuclear weapons. A
summit in, say, May is a distinct possibility.
Even as Shultz and McFarlane take charge,
those more ideologically akin to the president
find themselves doing less business. Jeane Kirk-
patrick is resigning as ambassador to the United
'Nations. William Casey has got himself, and the
year's warvvith the State Department on send-
ing troops to Lebanon.
. -A similar pattern works in domestic affairs.
Moderates prepared to close the deficit by both
spending cuts and tax hikes have taken the com-
mand posts in the Senate. Bob Dole of Kansas, the
new majority leader, put. through the tax increase
of 1982 over White House opposition. He is a Sen-
ate man with -a healthy worry about deficits long
'before he is an ideological ally of Ronald Reagan.
He knows how to work with the Democrats-both
across the aisle and in the House.
Most of the other new Senate Republican
-leaders-Alan Simpson of Wyoming who is whip;
John'Chafee of Rhode Island, the Policy Commit-
-tee chairman; and John Heinz of Pennsylvania,
the chairman of the campaign committee-fit
the same mold. So does Bob Packwood, the Ore-
gon senator who will replace Dole as chairman of
-the Finance Committee.
But those in closest sympathy with the Reagan
outlook find themselves away from the action. Sen.
:James McClure of Idaho went down on the first
ballot in the contest for majority leader. Treasury
Secretary Donald Regan had hooked himself and
his department on fundamental tax reform. What-
ever the merits of the case, that approach is not
-going to reach pay dirt for a long time. .
A dim aura now envelops the process of govern-
ment in America. A bold leader with a master plan
and a brain trust in the background is not making
.things happen. On the contrary, the recent devel-
opments have not been orchestrated or choreo-
graphed or structured in advance. They are a su-
preme example of events taking charge, of music
.being made without a Toscanini.
For precisely that reason, to be sure, the mod-
eratesmay not succeed. A lot of things have to fit
themselves together in a complicated way. The
odds are against an early fix of the big problems.
When it comes to easing tensions with Moscow
and dosing the deficit, Shultz and Dole and their
backers may well arrive with too little too late.
But at least there is a gleam of hope, a way out.
Sensible people-and Democrats-will stop moan-
ing about the leadership that isn't there, or the tax
"reform that won't happen soon. Instead,'they will
'lend themselves to the process in the hope the pro-
,gress that is possible will be allowed to happen.
?1984, Los Angeles 'rimes Syndicate
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 f. Ti"&h?Elr Release 2006/II1f1Tb96-f 1-iQp901R00 400010001-5
ON PA"R 2- - December 1984
Too often, we have seen the enemy'
technology and it is ours.
BY EDGAR ULSAMER
SENIOR EDITOR (POLICY & TECHNOLOGY)
HE MOST productive, booming Soviet industry
bends no metal and engages in only one kind of
engineering, "reverse engineering," meaning the art of
figuring out how somebody else's weapon systems are
being produced and integrated. The sole function of this
"industry" is the systematic, no-holds-barred acquisi-
tion of US and other free-world technologies with direct
or indirect military application. Orchestrated by the
Kremlin's all-powerful Politburo, this massive, parasitic
dragnet employs untold thousands of Soviet and other
East European agents, hundreds of ostensibly legitimate
business fronts, and hordes of Western collaborators
whose commitment to the profit motive is not swayed by
laws, loyalties, or even logic.
Sen. William Proxmire (D-Wis.), hardly an alarmist on
defense matters, thundered at a recent Senate commit-
tee hearing that "I will not quietly accept a situation in
which we spend tens of billions [of dollars] to develop
critical technologies and then, through feeble export
controls, allow the Soviets to obtain these technologies
for next to nothing." Sen. William L. Armstrong (R-
Colo.) was also dead serious when he complained that
the US economy is "groaning under the strain of financ-
ing two military budgets--our own and a significant
portion of the Soviet Union's."
The bitter irony, according to senior intelligence and
other government experts, is that major portions of US
defense spending are required just to offset Soviet weap-
ons made possible by US technological breakthroughs.
The CIA's Deputy Director, John N. McMahon, be-
moans the demoralizing effect on the US intelligence
community "when we spend a lot of our effort to find out
about Soviet weapon systems [only to discover that they
are actually] ours."
The purloining of Western technology is deeply root-
ed in Soviet doctrine and history. Vladimir Ilyich Lenin
ments will shut their eyes to the kind of activities on our
side ... and will in this manner become not only deaf
mutes but blind as well. They will open credits for
us.... They will supply us with the materials and tech-
nology which we need for our future victorious attacks
upon our suppliers. In other words, they will work hard
in order to prepare their own suicide."
CIA analyses stress that Moscow's piracy of Western
technology started to mushroom in the years immedi-
ately following World War II, when the Soviets stole
Western nuclear secrets that led to the development of
their own nuclear weapons. At about the same time, the
Soviets copied a US bomber in its entirety and put it into
production as their Tu-4. The pattern has remained the
same since then: To achieve major improvements in
their military capabilities quickly, they resort to a com-
bination of espionage, stealing, and copying Western
systems.
A $100 Billion Heist
Conservative estimates presented to Congress indi-
cate that what is euphemistically called "technology
transfer," meaning the overt and covert hemorrhage of
Western technology to the Soviet Union, has demon-
strably saved the Kremlin far in excess of $100 billion in
military research and development costs. According to
the CIA, the acquisition of these technologies is well-
organized, highly centralized, and under the direct su-
pervision of the highest organs of the party and the state,
including the Politburo of the Communist Party and the
Council of Ministers. The CIA's congressional testi-
mony suggests that primary control over technology
acquisition and exploitation rests with the VPK, the
Soviet Military Industrial Commission. This organiza-
tion-which has been around in one form or another
.since the 1930s-is meant to ensure that the Soviet
bragged with c ad~( a 1 res e ce mo than sixty military gets the resources it needs.
years ago that Z` lis~rs ~e~ ~kAp/RJ417n. CIA -Fip 1jiQ0$ 0QppiZliQOOAt-Sd a steadily growing*
lr~iltlt ie0 -_
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AR i 1.E AP?EARED ---.~--
G' E
WASHINGTONIAN'
ir's Notes,
Best moves President Reagan could make
early in 1985: Bring in Drew Lewis as White
House chief of staff, send Jim Baker over to
run the CIA, and retire Bill Casey. Then
bring Jeane Kirkpatrick back from the UN to
run USIA, and retire Charlie Wick.
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