CIA MISREPORTED PAPAL SHOOTING

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP91-00901R000400030001-3
• Release Decision: RIPPUB
• Original Classification: K
• Document Page Count: 72
• Document Creation Date: December 19, 2016
• Document Release Date: October 11, 2005
• Sequence Number: 1
• Publication Date: June 29, 1984
• Content Type: NSPR

Approved For Release 29{111YG2$6tCYk&M~-OA)1 ROO
29 June 1984
dome station Chief Sacked
The CIA station chief in Rome has been
prematurely removed from hisjob because
of the station's misreporting of the Bulga--
rian connection in the .;hooting of the
Pope CIA officers in Rome have been '
privately accused of spreading "black pro-
paganda" tending to exculpate east bloc
intelligence services
.
The identity of the top Agency man
moved out from Italy is not to be revealed
but Administration officials say-he' was
responsible for inaccurate reporting to
CIA headquarters in Langley Virginia and
for spreading false propaganda to jour-
nalists investigating the story. -
It became clear earlier this year to the
US Administration that there was over-
whelming evidence of a central role by the
Bulgarian secret service in the-;May 13
1981 assassination attempt against the
.Pope, afterjournalists'and writers had-proa
uc a wea~tb of information on the crime
implicating Bulgarian secret service offic-
ers. Italian authorities also privately told
=U$ officials it was an incontrovertible
fact, whatever might be provable in a court
of law, that the Bulgarian service, and
hence Moscow, was behind the attempt on
the life of the Pope. Vatican officials have
said this for more than two years.
CIA Director William Casey received:
many representations over the pastyear to
clean up his operation in Rome. Casey did
not act precipitately. Indeed he has been
criticized for his slowness to act, but has
apparently seen the problem as part of a~
widespead mindset quite pervasive in the
Agency that tends to give the benefit of the'
doubt :to communist regimes, and shies,'
away from searching investigation of com-
munist state supported violence.
The removal of the station chiefin
Rome may turn out to lie only the'
beginning-Administration officials
STAT
STAT
uce reports exculpating East Bloc in brother spy outfit, the KGB. -
telligence agencies from involvement in- Administration officials and Congress-
terrorism,. reports which' subsequently men alike complain bitterly that the Cen-
prove false tral Intelligence Agency has performed
There has been endorsement by Ad- lamentably in failing to develop in
ministration officials of the report in the, telligence on the Bulgarian connection to
Washington Times of 'a CIA "gentlemen's ? the Pope plot, or to face up to the broader
agreement" with the Soviet KGB. This consequences of the crime. They say that
tacit arrangement has emerged from in- CIA briefers and written submissions on
vestigation here into the CIA's steadfast the subject have constantly stuck to the
refusal to accept the Bulgarian connection
(and hence a' key Soviet role) in the shoot-.
ing of the Pope. ice role. in the affair, whereas Italian in-
Italian state prosecutor, Antonio Alba vestigators, journalists and other western
no is now seeking the indictment of three block services have produced a mass of
members of the Bulgarian secret service in credible evidence that has not been re-
connection with the attempted murder of futed.
the Pontiff, having concluded after a two According to the high source quoted by
year investigation that. it was an East Bloc'` the Washington Times: "The CIA has an
assassination conspiracy.. absolute fixation on the gentleman's
In his formal report Albano only men agreement with the KGB about who you
tions that "some political figure of great shoot and who you don't shoot.
power" who saw the Pope's role in sus- "The old ground rules were very clear.
taming the Solidarity protest in Poland, Both sides could piay around however
decided he should be killed. In an in-' they wanted in Africa or Asia, but there
terview obtained by an Associated Presswas complete immunity on persons of
reporter in Rome however Albano went political importance to each side.
further and said it was his "personal opin "I would have thought this included the
inn" the %0-mans
ld
L
--a__2
wou
not
ve
in such an issue without Moscow.-..
phraseology that "There is no credible
evidence..." of the East Bloc secret serv-
. Pope."
Any attempt on a major western per-
sonaIity w
ld b
"
"
ou
e a
New York Times and Washington Post to,momentous event
for the CIA because it would constitute a
the Italian State Prosecutor's report pinn- breech of the agreement between the great
ing the Bulgarian communist secret
serv-i
power secret servces,
ice with responsibility for the crime. The cn?ti
c
t
con
inues.
Administration officials complain the
y? -"I think they (the CIA) don't want to
have been plagued by misleading in= think about it. I assume they are shaken,
telligence on the matter and they blame l~. concerned that the old rules have shifted,
this on a CIA concern to protect the reputa- , worried about what this really means in the
tion of the KGB. world of international intrigue"
There is acute embarrassment and con- - - - . .
cern about the role of the CIA in what some Continued
describe as this "whitewashing" of its
Major coverage has been given in the
hope-of a series of mo 5VWV~E_Release 2005/11/28 : CIA-RDP91-00901R000400030001-3
influence of softliners in f Agency.
Questions are being asked about a num-
h.-r of nffirprc in the'TA wlhn rnnctnt1v
 Approved For a e
~05/11/28 :CIA-RDP91-00901R01
~
ARTICLE
ON FAGj~-~WASHINGTON POST
29 June 1984
CIA's Sporldn Nominated
'~Co District ;Curt bench
Washington Yost Staff WrIter
President Reagan yesterday nom-
inated CIA general counsel Stanley
it: Sporkin to be a judge on the U.S.
District Court here.
If confirmed by the Senate, Spor-
kin, 52, will fill a seat vacated earlier
this year by Judge June L. Green.
F. Sporkin's nomination had been vir-
tually `assured since early April,
when a top-level White' House and
Justice Department screening com-
mittee -recommended him for the
lifetime appointment.
_ That recommendation came de-
spite some opposition --to Sporkin
within the committee because of his
controversial tenure in the 1970s as
By Al Kamen
Reagan transition team report, reflect-
ing that conservative opposition, four
years ago recommended that Sporkin
be replaced at the SEC.
. But Sporkin's longtime friend,
CIA Director William J. Casey, per-
sonally lobbied the administration
and President Reagan to secure the
nomination, according to informed
sources.
Knowledgable sources say Spor-
kin's nomination may face some op-
position from Senate conservatives
chief of the enforcement division of
the Securities and Exchange Com-
mission.
Conservatives and business groups
have criticized Sporkin for being over-
zealous in enforcing securities laws. A
and from Democrats who object 'to
the CIA's activities since Sporkin
joined Casey there in 1981.
But it appeared yesterday that an
unusual coalition of Democrats and
Republicans would back the nom-
ination. Sen. William Proxmire (D-
Wisc.), whose Senate committee
oversaw Sporkin's SEC activities,
called the non- ination "the best
thing Reagan has done since he took
office." Proxmire called Sporkin
"marvelous" and a "completely hon-
'est" person who has the "admiration
of everyone."
Some sources said that the nomi-
nation may be coming too late in the
year for the Senate to act on it. One
source recalled that in 1980 some Sen-
ate Republicans made a policy of
refusing to confirm nominations after
the national political conventions
started and blocked all but two of 13
Carter nominees whose names were
submitted between the conventions
and the election.
That source said it was unclear
whether the Democrats "will be more
generous" this year.
But Proxmire and another source
said they doubted Sporkin's nomi-
nation would be blocked .by time
constraints. "I don't know of any
policy by the Democrats of holding
up nominees," Proxmire said, adding
that he thought it unlikely that the
nomination would be held up by
Democrats.
STAT
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 ARTICLE A
ON PAGE
ed For Rel 208S/1I12 2*Y C DP91-00
29 June 1984
IA shuffle
reau)--CIA general counsel
Stanley Sporkin was nomin-
~ated for a federal judgeship
`yesterday, continuing a shuf-
fle of the intelligence agency's
top ranks.
Spokesman Dale Peterson
said that Sporkin's expected
'departure, announced by the
White House, was unrelated to
0
four job shifts disclosed on
Wednesday.
John Stein, former head of
clandestine services, is to be-
come the CIA's inspector gen-
eral; Clair George, head of
congressional liaison, will suc-
ceed Stein; Charles Briggs,
CIA executive director, re-
places George, and James
Taylor, currently the inspec-
~intees
tor general, replaces Briggs.
CIA DIRECTOR William
Casey and Deputy ' Director
John McMahon were not
affected by the moves.
Peterson said that the
changes were routine, and de-
nied that they were related to
controversies Involving CIA
support for Nicaraguan guer-
rillas.
STAT
STAT
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 Approved For Release 2005/11/28: CIA-RDP91-00901R00040
ARTICLE APPEARED
ON PAGE' 1Z 1
CIA Shift-Returns
erattons
etertin `t0 PoSt
By Charles R. Babcock'
WASHINGTON POST
29 June 1984
Washtneton Poet Statt Writer
In. his shift of four high-level officials,
CIA Director William J. Casey is returning
a veteran clandestine operative to covert
operations after a controversial one-year
f stint as Casey's liaison with Congress.
Clair E. George, 53, who will be the
CIA's deputy director for operations at 'a
time when Congress is balking at further
funding of the covert war against NiCara-
gua's Sandinista government, is a graduate
of Pennsylvania State University..
According to the State Department's---
Biographic Register, George has served in
Hong Kong, Paris, Mali and India. During
the 1970s he was CIA station chief in Bei-
rut and Athens. He took the latter post in
-4976 after the assassination of Richard S.
Welch. George was the assistant director of the
clandestine service before moving to the
legislative job last summer. He has become
a lightning rod for congressional distrust
of Casey's candor on secret operations,
such as aid to the "contras" fighting the
Sandinistas.
} In April, when members of the Senate
. Intelligence Committee were irate over
K Casey's failure to brief them fully on the
mining of Nicaraguan harbors, committee
staff director Robert R,. Simmons said
. George had "the same mindset as Casey,"
who ran secret operations in World War
H. "That match is a prescription for disas-
ter," Simmons said.
A senior committee staff member said
yesterday that he thought George was be-
ing moved because of such dissatisfaction.
The aide noted that a normal CIA tour of
duty, even in hot spots overseas, is 18
il--months. "I can't believe that dealing with
" Congress is that obnoxious he could only
last a year," the staff member said.
A senior CIA official, however, said that
George was not being replaced because of
displeasure in Congress. As head of covert
operations, "he'll have to go to testify, so
1,. it's.hardly an effort to get Clair out of the
['!Fay of Congress," this official said.
He said that when George took the leg-
-islative job, Casey promised him that the
assignment would last only one year. Sev-
eral months ago, the outgoing head of co-
vert operations, John H. Stein, 51, asked
to be moved to another position, the of-
ficial added. Stein will become the agen-
cy's inspector general.
George will be replaced in the legislative
i' job by Charles A. Briggs, 57, currently the
agency's executive director, the No. 3 job.
The current IG, James H. Taylor, 45, will
become executive director.
STAT
STAT
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 By NILES LATH EM
Bureau Chief
WASHINGTON -? An
angry CIA Director Wil-
liam Casey has removed
the agency's top spy in
Italy for trying to sabo-
tage the Italian investiga-
tion into Soviet bloc links
to the plot to kill the Pope,
The Post has learned.
Senior U.S. intelligence
and Congressional
sources said last night
that Casey decided this
month to replace the CIA
~_statlon chief ,in Rome In
the wake of the Italian
prosecutor's report,
which provided evidence
of a Bulgarian connection
to the assasination at-
tempt
Sources said that Casey
was "embarrassed" by
the revelations from Italy
because reports com-
ing from his own field
agents ?argued against
Bulgarian involvement in
the assassination at-
tempt
The removal of the sta-
tion chief, whose name
FIA-RDP91-00901 Rb00400030001-3
cannot be revealed be-
cause of new laws prohib-
iting the disclosure of
identities of U.S. agents
overeseas, is part of a
massive shakeup under
way at the CIA. -
Casey, sources say, be-
lieves there are too many
"liberals" in key positions
in the agency, who are
putting roadblocks in
many operations - In-
cluding - the "contra"
operation in Nicaragua--
Earlier this week .five
top agency officials in-
eluding the CIA's chief That is because the CIA
Congressional lobbyist - has consistently thrown
and the head of clandes- cold water on the allega-
tine operations were re- tions and according to
placed and given' new some reports went out of
jobs because of the failure its way to derail the Ital-
of Congress to renew fan investigation.
-funding for Nicaragua. But in the wake of the
For the last two years Italian prosecutor's re-
the entire Reagan admin- port, which concluded
istration has been virtu- that there was detailed
ally silent on allegations evidence that Turkish
that the plot to kill the gunman Mehmet . All
pontiff was hatched in the Agca was hired by the
Soviet Union and planned Bulgarians, Casey be-
by the Bulgarian Secret came enraged and trans-
-Service. ferred the CIA station
chief-
Sen. Alfonse D'Amato, a
WILLIAM CASEY
"Embarrassed."
fellow Long Island -Re-
publican, had repeatedly
complained to Casey
about the station chiefs.
"sabotage" of the investi-
gation and charged that
other agency officials in
Italy were planting "dis-
information" in the West-
ern press to derail the
Italian probe.
It is unclear what ef-
fect D'Amato's com-
plaints had on Casey
and the New York Re-
publican was not im-
mediately available for
comment last night.
STAT
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 Approved For Release 2005/11/28: CIA-RDP91-00901R0004
CHICAGO TRIBUNE
29 June 1984
0
transfers 4, deni~iffli
covert operations
By StorQr Rowley
Chicago Tribune
WASHINGTON-The CIA is trans-
ferring its controversial chief legisla-
tive liaison and replacing him with
the agency's third-highest official, a
CIA spokesman disclosed Wednes-
day.
Clair George, installed last sum-
mer by CIA Director William Casey
as head of the agency's congression-
al liaison office, will become director
of clandestine operations, spokesman
Dale Peterson said in a rare dis-
closure of four key personnel
changes at the agency.
Charles Briggs, now executive di-'
rector of the agency and in charge of
its day-today operations, will re-
place George un the liaison position,
which has become highl ' sensitive
because of recent strains in the rela-
tionship between the agency and
Congress.
Some members of Congress ex-
pressed displeasure with the CIA last
April, claiming that they were not
adequately informed of the Meagan
administration's involvement In the
secret mining of Nicaraguan har-
bors.
PETERSON SAID the four moves
were unrelated to administration
concern over Congress' rejection
Monday of President Reagan's re-
quest for an additional $21 million to
finance covert operations against the,
leftist government in Nicaragua.
Rather, Peterson said, the moves and announced internally at that
are part of a "routine rotation" of time, to become effective Sunday.
high level CIA personnel in which The CIA does not routinely make
the current director of clandestine public such changes. -
operations, John Stein will become The agency's, disagreement with
inspector general and the current Congress last April was quieted
CIA inspector general, James Tay- when Casey personally apologized to
lor, will become executive director, the Senate Intelligence Committee
A eongressionalintelligence source
said " tI 's rather difficult to tell
' whether or not this is a smoke
screen" because "there are person-
nel char ges at the CIA every year
about this times 11 But he Qairi
and the CIA started last summer against the Sandinista regime in Nic-
"I really think there's "a direct aragua.
correlation-although it would be' SEN. BARRY Goldwater [R.,
terribly hard to prove-that a lot of Ariz.], committee chairman, de-
these problems are more intense scribed the CIA-directed mining as
STAT
since I t,
astcAugus" the source said.
George, he added, "can't be held up "an act of war," and Sen. Daniel
to blame for all this [but) he shares Moynihan [D., N.Y.] resigned for a .
a good deal of it," along with Casey. time from his post as committee vice
PETERSON, IN a telephone inter- chairman in protest.
view Wednesday night, said: "This Committee officials claimed then
is not to be consderany kind of a that the difficulty of getting informa-
d tion about covert CIA operations in-
chake u N bod . b
15
d t
p.
e
e
nn emo .
These are all high-level positions,
and they're moving from one posi-
tion to another."
and promised to give notice of signif
icant intelligence activities in the
future. But the highly publicized dis-
agreement that led to the apology
claimed headlines for days and
brought the glare of public attention
tensified after Casey installed
George a 30-year CIA veteran, as
head of the congressional liaison of-
of-
summer, shortl before
y
fice last
Nia
However, Peterson acknowledged stepped-up
covert activity
f
that "certainly the appointmetit o Briggs to the liaison position is an "Now, prior to that we had a good
indication of the interest in [and) working relationship " said a staffer,
high importance of that position. adding that since tken staff mem-
He said the moves were approved hers seeking information to carry
by Casey and the deputy CIA direc- out their oversight duties had been
tor, John McMahon, two weeks ago "maligned, mistreated, even yelled
at."
STAT
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 UNITED PRESS INTERNATIONA
Approved For Release k0iifW281? A-RDP91-00901 000400030001-3
CIA SHIFTS TOP OFFICIALS
BY HELEN THOMAS
WASHINGTON
FOUR TOP LEVEL CIA OFFICIALS HAVE BEEN SHIFTED
TO KEW POSITIONS STARTING JULY Is IN WHAT A SPONESMAU MISTED STAT
OEDNESBAY WAS A 'ROUTIHE RDTATiON? RECD NOT RELATED TO AGENCY ACTION
11 CENTRAL :AMERICA.
CIA SPOKESMAN DALE PETERSIK ERE D CONTRARY To REPORTS t THE SHA&E-UP
MRS KGT DUE TO ANY 'OISSRTISAFACTION OVER CENTRAL RPIERICAk POLICY.'
'WE ARE CALLING IT A ROUTIkE kOTATIUN OF HIGH LEVEL OFFICALS WHICH
YAS ANNOUNCED TO OTHER AGENCY EMPLOYEES ABOUT A WEEK AND A HALF RGOP'
ME SAID.
HOWEVERr SEN. PATRICK LERHYs O-VT., SUGGESTED ONE OF THE MOPES WAS
A REWARD FOR "ROT TELLING RHYOJIE IIN COt4GRESSI ANYTH[UG.' ..
THE CIA HAS RECENTLY COnE UNDER FIRE FOR COVERT OPERRTIQlfs IN
1IICRRAGUA IHCLUDIk6 FOR THEIR ROLE IH ASSISTING REBELS III THE MINING
IF HRRSORS.* WHICH RESULTED IN DAMAGE TO NEUTRAL SHIPPING.
.THE CIA HAS ALSO BEEN ACCUSED OF MEDDLING IN EL SALVADOR'S
'ELECTIONS TO THE BENEFIT OF RECEkTLV ELECTED PRESIDENT JOSE NAPOLEON
DUAR TE.
DUARTE DEFEATED RIGHT-WING LEADER ROBERT'] D'RUBUISSONs WHO HAS
REEMI ACCUSED OF HAVING LINKS TO DEATH SQUADS. THE RERGRU
ADM INSTRRT I till HAD PREFERRED DUARTE, A NODERATE9 OVER D' RUBU I SSOh.
PETERSON ANNOUNCED THAT CLAIR GEORGE t DIRECTOR OF THE OFFICE OF
LEGISLATIVE LIRSItINS, WILL BEGONE DIRECTOR OF OPERATIONS IN CHARGE OF
CLANDESTINE COLLECTION OF IMF ORKATION MW COUNTER-IWTELLIGEiiCE.
CHARLES BRIGGS, CURRELTLI EXECUTIVE DIRECTOR OF THE DRY-TO-DAY
OPERATIONS OF THE AGENCY HILL BECOPIE THE NEu DIRECTOR OF LEGISLATIVE
LERSONS REPLACING GEORGE.
JOHN STEENi DIRECTOR FOR OPERATIONS, WILL BECOME THE INSPECTOR
SEHERt1L, REPLACING JAMES TAYLOR.
TAYLOR s INTURN, RILL TAKE OVER BRIGGS' JOB AS DIRECTOR OF
DRY-TO-DAY OPERRT[ONS.
CIA DIRECTOR WILLIAM CASEY RI HIS DEPUTYP 10HN NCPIANL WILL REMRII
IN THE TWO TOP POSITIONS IN THE CIA.
SEN. DANIEL NOYN IHRHI Gt U. 4. i RFiiii. i N~ DEP,OCRR i UN THE SENATE
IPTELLIGENCE CDMNITTEEs CALLED GEORGE'S ht;'iE "A PRUN TIOIN."
NONE CAN ALWAYS THINI, THAT SOME ELUSIVE PURPOSE IS INVOLVED,' HE
ADDED. "I'M PREPARED TO THINK THAT FOUR SEASONED PROFESS IONRL PERSONS TAT
HAVE BEEN MOPED ABOUT JUST ON THE GENERAL PRINCIPLE THAT I T IS GOOD
TO DO SOMETHING ELSE.'
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 Approved For Release 20055ffff8P-0
28 June 1984
CIA SHUFFLING TOP OFFICIALS
BY ROBERT PARRY
WASHINGTON
C
1'y ~y `HE Y - y , F AC I NG M 0UNT NG C T O COVERT R ID FOR 4 I C 1 R A G Y A1\ REBELS, ? 5 TRANSFERRING O UR T G r - V L{ 11L L
STAT
OFF :C:A,..c, 'INCLU0:9G TXE HERD 017 :TS CLRNDEST'NE O' ERR',:ONS FIND Cr,c='
CAP-4710L ---LL LOE--SY.ST.
HE SHIFTS, SCHEDULED TO TA;{E EFFECT ~UtiDRY, WERE OESCR:BED ^Y A
.
SPOKESMAN RS R 6 kROUT:NE ROTATION.'' ..UT THE MOVES COME AS SUPPORT IN
CONGRESS FOR DRES:oENT REAGAN'S RID TO RNTI-GOVERNMENT REBELS
[CONTINUES TO ERODE AND SOME RO~!.~{JTRATION OFFICIALS CONCEDE
ADD i T I O N A L A c L D T141 H I S ? S L. U N L i H E L Y .4 //''~~ \
Y-A SPOrtESNNF4t )RLE 1ETERSON SAID ?EDNEEDR't NIGHT THAT JOHN STEIN,
DIRECTOR OF CLRNDEST:ME OPERRT DNS, WH:CH OVERSEES COVERT ACTIONS,
WILL. BECOME THE SPY AGENCY'S :NS ECTOR GENERAL. STEIN MILL BE
REPLACED GYM CLR-:R rEORGE, CURRENTILY HEAD OF SG:1L~A":Vi i:A.SON.
:N R00:T:Dsi, DHAiRCES R:GGS; THE AGENCY'S EXZCiUTIPE DIRECTOR, eh:
BE MADE THE '_'',r { CHIEF CONGRESSIONAL LOBBY 1ST,AND THE AGENCY{''
'.`:SPEC, OR GENERFAL5 1 FA JAMES RILOR, 1%.LL MOVE TO EXECUTIVE D1RECT{./Z,?.THE
AGEN:C, 1 S O. V V,. COB, PETERSON SAID.
~ETERSDN DESCR:BED THE CHANGES AS A i OUT:NE ROTA.':ON, MOVING
PEOPLE FROM ONE H:GH-LEVEL POSITION TO ANOTHER, 3 3 AND HE DENIED THAT
THE SHIFTS RESULTED FROM CONCERNS ABOUT THE AGENCY'S CENTRAL "-MES CAN
ACT.ViT.cS.
-c SAID THE DECISION TO TRANSFER THE FOUR HIGH-LEVEL OFFICIALS
HAS MADE ABOUT TWO WEEKS AGO 21 DIRECTOR '=ILLIRM J. CASEY AND
DEPUTY. 3'1 RECTDR ,'GAIN CrAHON.
3G-1 ONE CONGRESSIONAL OFFICIAL, WHO INSISTED ON ANONYMITY, SA10 THE
MOVES STEMMED FROM A STRING OF SETBACKS TM S YEAR THAT HAVE
UNDERMINED SUPPORT FOR THE s AID TO REBELS FIGHTING TO OUST
N ICRRRGUA' S LEFTIST GOVERRNMENT ?
CONGRESSSIONAL OPPOSITION HAS INCREASED AGAINST THE~C~i-YEA i-OLD
PROGRAM AMID DISCLOSURES THAT THE Y-`? DIRECTED MINING OF N-CSRAGUR'S
HARBORS, CONGRESS:ONRL COMPLAINTS THAT OVERSIGHT COMMITTEES WERE NOT
ADEOURTE~Y INFORMED AND A F:ND:NG BY THE WORLD COURT CRITICAL OF THE
,. 5 ACTiCtNS.
- A,`?t 00-.. VOTE. rD*NDAY, THE SENATE SHELVED t'EAGANN IS REQUEST FOR 5
Aow
MI ":ON MORE FOR THE COVERT ACT:ON TH:S YEAR, PROMPTING CLAIMS FROM
`OUSE DEMDCRATLC LEADERS THAT THE PROGRAM IS EFFECTIVELY DEAD.
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 N1 wcu rUl ",=m.a ........
c
ON PAGE --Z 2 June 1
Covert Lessons
ABROAD AT HOME
ril .. By Anthony Lewis _.-
4:-, O TON, June 27 - When a popu- by capturing Government supplies:
j lar President wraps a policy in anti- And a former C.I.A. analyst, David C.
ommunist rhetoric, he does not MacMichael, said he had seen no con-
~often lose in Congress. So it was an
event when the Senate this week
Joined the House in voting against fur-
ler support for the covert war on
caragua. President Reagan lost,
and it is important to consider why.
The immediate reason the Senate
aswitched, after repeatedly voting for
the operation, was political. The $21
million for the Nicaraguan contras
was fn an emergency spending bill
Wong with summer job funds that
many members wanted, and the
-House would not take the bill with the
covert aid included. But even that
tactical point reflected deeper causes.
The Administration deliberately
tied the funds for its covert war to the
summer jobs program, believing that
the House would retreat from its op-
position rather than lose the jobs. The
Reagan people got it backward, as it
turned out. They did not understand
the strength of feeling in the House
Against the covert operation - or the
:.lack of conviction among some of the
'senators who had voted for it. In the
.-end it was the Senate that blinked.
wincing evidence of a substantial flow
from Nicaragua since the spring of
1981.
As to the effectiveness of the con-
tras, they have failed to capture and
hold a single Nicaraguan town since
they began raiding from across the
borders in 1981. And some descrip-
tions of their activity sound like plain
terrorism, troubling a number of Re-
publicans who wanted to support the
President.
In May, for example, Senator Ed- ?
ward Kennedy held a meeting at
which three Nicaraguan Indians told
about the contras raiding their town.
Though it had no military objective,
and no Government force was in the
area, the contras killed 7 people,
wounded 15 and kidnapped 39. Chil-
dren were among the casualties.
All these elements - doubts about
the need and effects of the contra
operations, the Administration's
blunders - helped to bring about one
particularly important political shift
over the last few months. That was in
the views of Senate Intelligence Com-
There was a lot of official miscalcu- - mittee members.
,;lotion - or stupidity, to put it less po- When the Senate on April 4 defeated
litely. Two blunders had especially an amendment to kill the money for
'bad effects in Congress, both following the contras, only 2 of the Intelligence
,-from the decision to have the C.I.A. Committee's 15 members favored it:
plant mines in Nicaraguan harbors. the Democrats Joseph Biden and Pat-
'? First the Director of Central Intelli- rick Leahy. When a similar amend-
-gence, William Casey, was less than ment was offered last week, six of the
candid with the Senate Intelligence committee's seven Democrats, in-
Committee about the mining opera- cluding vice chairman Daniel Patrick
,-tio'n. Or so both Republican and Moynihan, voted for it. So did one Re-
1?emocratic members felt. publican, William Cohen. Thus only a
'file mining story exploded in the bare committee majority, 8 to 7, was
newspapers at the beginning of April. still for the contra operation.
A few days later the Reagan Adminis- As a practical matter the United
tration made its second blunder: the States cannot pursue a covert policy
.trove to escape a Nicaraguan lawsuit of this kind today without a consensus
'by withdrawing from the jurisdiction in Congress. Even though the Admin-
of the World Court. Added to Senate istration won that last test last week,
. feelings of having been misled by 58 to 38, the consensus was shattered.
C.I.A. spokesmen, there was now un- Too many of the best-informed sena-
ease at the picture of the United tors no longer believed in the policy.
States running from the rule of law. Too many worried that it was actu-
Underneath, there was a larger ally harming the Central Intelligence
point. The Administration acted like a Agency, and the country.
lawyer who has a weak case. It blus- There is a painful footnote to the
-tered, it talked about the Red Menace, story. Some Republican Senators ex-
but it never produced hard evidence'on pressed doubts along the way, but
the need for the Nicaraguan operation most toed the line in the end. Voting
or the effectiveness of its methods. for the contra operation last week
The President, for example, told an were such "moderates" as Chafee of
Irish television interviewer that the Rhode Island, Percy of Illinois,
mining of Nicaraguan harbors was Boschwitz and Durenberger of
needed to stop "a flood" of Soviet Minnesota, Heinz and Specter of
arms flowing through Nicaragua to Pennsylvania, Gorton and Evans of
the guerrillas in El Salvador. But offi- Washington. So much for the idea that
cial reports say that the guerrillas re- Republican moderates are the ones to
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ON PAGE 25 June 1984 u Q~~1 . ~L) STAT
WAS
first three years, President
Reagan proved to bean adept
ringmaster of Congress.
But a judgment on his suc
cess during the 1984 session
awaits the outcome of what Is
known as the, deficit"down
payment" -,-= a pad age of
spending cuts and tax hikes
expeci ed to reduce the feder-
sl deficit by as much as 1140
billion over three years.
Rouse-Senate negotiators
have agreed 11 on a compro -
anise package of nearly. $50
billion In tax increases and
about $l1 billion in spending
cuts, the House and Senate
now must vote on whether to
accept the compromise.
In his first. three years, by
using his 1980 election man-
date, a GOP--controlled Sen-
ate and a coalition of Republi-
cans and conservative "boll
weevil" Democrats in the
House, the president over-
whelmed early resistance to
his economic; proposals. .
Reagan vas `forced to
change !hese strong-arm tac-
tics somewhat after the 1982
elections, when his working
majority in the House was de-
sroyed by the low of 26 seats
But by shifting to a more cr-a-
ctilatory, bipartisan approach
for, promoting his policies,
Reagan continued his mas-
tery of Capitol Hill.
But in 1984, the bipartisan
nature of this relationship
was severely tested; by events
at home and abroad,
With Congress nipping at
his heels, Reagan agreed to
withdraw VS. Marines from
Lebanon before ordered :to
dog
Reagan's relations with
Capitol Hill suffered another
serious setback as a result of
his handling of the covert war
against Nicaragua.
At a time when the admin-
istration depended on biparti-
unship for Its Central Ameri-
can program, Reagan unwise
ly. criticized Congress for
MADE SENATE ANGRY.
CIA's Casey xW Nicaragua'
,refusing to support him.
t' that Congress had no business
1z criticizing a president about
1" his foreign policy once ii.S.
.i troops had been deployed.
gleamed that CIA Director
.William Case had been dis-
hones' wmakers about
U.S. Involvement In 'the co-
vertwar against Nicaragua,
an aced Senate rebuked
Casey
Presidential "politics has
made further complications.
"Compared to 1981, 1982
and 1.98.3, there hasn't been a
lot of significant legislation,"
says former Reagan adminis-
stein, noting that the legisla-
tive lethargy is typical for a
presidential election year.
"in a presidential year that
is mostly composed of rheto-
ric," he says, the administra-
tion has been able to pass a
and spending package
"that the president's critics
said couldn't be: done."
Other than the "down pay-
ment," the major achieve-
ment of Congress this year is
likely to be the immigration
bill, which is still subject to
House-Senate negotiations.
On the domestic front, the
troubled nomination of White
House counselor Edwin
Meese to be attorney general
has been delayed until after
the election.
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 ARTICLE AppEARRproved For RQJese 5I 1 q 1 - p1-0096 T AT
00.2 PAGE 25 June 198l
ry:s Special Report
Covert actions, such as mining of
Nicaraguan ports, make the headlines. But
developments elsewhere in America's secret
spy agency are even more far-reaching.
After a four-year program to beef up the Central Intelli-
gence Agency, the results can now be seen-a spy service
with new muscle and influence to match.
Flush with money and manpower, the CIA is back at
work worldwide, operating on a scale not seen since the
Vietnam War.
Even its mission has been expanded. On top of espionage,
intelligence analysis and covert operations, the agency has
joined the wars on terrorism, international drug traffickers
and Soviet theft of U.S. technological secrets.
One thing has not changed. CIA involvement in covert
operations still stirs passions and controversy. Congress is
threatening to bar funds to finance the "secret war" agaipst
the Sandinistas in Nicaragua.
The turnaround, pushed hard by President Reagan and
CIA Director William J. Casey, has elevated the spy unit
from a state of disrepute during the 1970s to a newfound
position of power and influence on foreign policy.
Central to the agency's changing fortunes is Casey,
whose close political and personal ties to Reagan give the
CIA the kind of White House access-and credibility-it
has not had for years. The despair that gripped the organi-
But some critics fear that the revitalized agency is be-
The effects of this
being felt around the
^ In Afghanistan, I
support for Moslem i
tion forces. Annual a
the like-now is said
^ In El Salvador, ti
political groups in the
Jesse Helms (R-N.C.) c
in the victory of Jose Napoleon Duarte.
All told, says one official with access to inside informa-
tion, the agency is engaged in about half a dozen large-scale
covert operations overseas. The CIA may conduct as many
as 50 minor secret projects. That number, while far smaller
than in the CIA's peak years, nonetheless marks a signifi-
cant increase in covert action under Reagan.
Far and away the most eye-catching operation is in Nica-
ragua. Under Casey, officials report, some 73 million dollars
has been spent to build up anti-Sandinista contra forces to
12,000 rebels.
The CIA has coordinated airlifts, planned attacks and
built a sophisticated communications network for the larg-
est paramilitary action since the Vietnam War-activities
that have sparked charges that the agency's covert opera.
tions have gotten out of hand once again.
But Senator David Durenberger (R-Minn.), a member of
the Senate Intelligence Committee and a frequent critic of
the CIA, says: "The question is: Did Reagan leap in to start up
operations? And the answer is no. While the inclination to use
covert operations is stronger, there's still a great deal of care
coming too influential and that Casey has too much say in Even within the staff at Langley, Casey's enthusiasm for
the shaping of U.S. policy. Others warn that ? CIA- Director Casey on Capitol Hill for hearings on secret operations.
covert actions %=r;)1 Aron Ame
i
int
b
r
ca
o com
at
Congress, while attempting to keep a tight
rein on the CIA
actually be
an
ushin
th
,
g
p
g
e
buildup of the organization even before Casey
took over and has strongly supported it since.
This backing stems in part from a need for better.
intelligence about a growing Soviet military ca-
pability. The CIA is also seen as providing Amer-
ica with a means of intervening in world crises
without sending in combat units.
Headquartered in the Washington suburb of
Langley, Va., the. supersecret agency, with up
to 18,000 staffers, has long been embroiled in
controversy. While most concern has focused on
covert activities, these are by no means the
most important part of a broader mission.
Clandestine Wars Return
Nowhere is Casey's influence more apparent
than in the revival of covert action--mission
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P,rEI'. S11'EEK
25 June 1984
PERISCOPE
A Welcome Wagon for Defectors
Neglected Soviet-bloc defectors to the United States now ha- ;a
friend: the recently established Jamestown Foundation, which
supports and finds work for them once they have passed through
the CIA gantlet. Defectors-even those with secrets to tell-always
learn the bitter lesson of American immigration: the streets aren't
paved with gold. First, the CIA wrings the refugees dry of informa-
tion. Then, with a new name and a handshake, they usually are sent
off alone. The lack of resettlement aid is due in part to bureaucratic
bungling-but also to lingering CIA fears of victimization by
double agents. To the rescue: the Jamestown Foundation, set up by
a group of Midwestern philanthropists with a wink and a nod from
CIA Director William Casey. Run by Washington lawyer William
Geimer, the foundation helps people like former U.N. Under
Secretary-General Arkady Shevchenko (who defected from the
Soviet Union in 1978) and former Polish Ambassador to Japan
Zdzislaw Rurarz (defected 1981) by arranging speaking engage-
ments and publishing contracts. Foundation supporters are also
hoping that its Welcome Wagon approach will encourage other
high-level Eastern European malcontents to come on over.
STAT
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ON PAGE 1-- 25 June 19811. JUSTICE
H
U.S. forces too often fight each other in a secret
war against the Golden Triangle's heroin suppliers.
Once more the United States is fighting a
seemingly endless war in Southeast Asia.
Despite successful American-sponsored of-
fensives, the enemy has grown steadily more
intractable. And as before, the American
effort has been hobbled by dangerous and
self-defeating bureaucratic battles among
the federal agencies responsible for the
struggle. But the ultimate aim of the
war in the notorious Golden Tri-
angle of Southeast Asia is irre-
proachable.. to shut down the
opium fields and heroin refin-
eries located in the high-
lands of Burma, Thailand and
Laos. This area-controlled by
independent warlords rather
than organized governments-
is fast becoming the heart-
land of the international her-
oin trade. `Elaine Shannon of
NEWSWEEK reports-
T he Trail of the Horse
begins high in the moun-
tain jungle on the Burmese side
of the border. There, most of
the Golden Triangle's opium
crop-700 metric tons a year,
according to U.S estimates--is
refined into heroin. Then it is
moved by horse and donkey
caravans into northern Thai-
land. From there, transporta-
tion to Bangkok is easy, thanks
to a network of modern roads
the United States built during
the Vietnam War. And after
Bangkok comes the world: her-
oin produced in the Golden
Triangle now accounts for 20.
percent of the American mar-
a bumper crop in Burma, the wholesale price
of top-grade No. 4 heroin is at its lowest level
in years. And drug officials warn that the
Mafia has begun to join forces with Chinese
crime families who have long controlled this
bountiful harvest.
Meanwhile, America's war in Chiang
Mai all too often takes the form of a three-
cornered bureaucratic struggle, producing
assault on the heroin refineries in the
nearby jungle. In early 1983 the CIA dis-
patched a commando mission into Burma,
searching for one of the DEA's most-wanted
men-an elusive Chinese refiner named Lao
Su. Thai Army commandos failed to find
Lao Su, but the operation com-
plicated DEA plans to trap Lao
Su on his next trip across the
Thai border. A week later the I
DEA's own call for help in cap-
turing Lao Su was answered by
overzealous Lahu tribesmen,
who brought the refiner. to the
border-and heaved his bullet-
riddled body into a Thai bor-
der-patrol helicopter.
Ambush: The most chilling
bureaucratic blunder occurred
last October when the CIA sta-
tion chief in Chiang Mai appar-
ently placed a higher priority
on secrecy than on the safety of
a DEA agent. Both agencies
were organizing raids on the
same drug transaction: the
planned sale of 42 kilograms of
pure heroin in the Thai frontier
hamlet of Pha Ni. But the CIA
station-chief kept his own plans
secret, even after the DEA
agent told him that he would be
accompanying the Thai border
patrol to Pha Ni. Only a last-
minute phone call from Wash-
ington-where the CIA and
the DEA had better liaison-
prevented the drug agent from
driving into the CIA-spon
Thai fanner with ripe poppies: A cash crop too good to give up
ket, double the figure of just three years ago.
Chiang Mai, a northern Thai trading cen-
ter adorned with glittering temples and vil-
las, is a principal way station on the heroin
highway from Burma to Bangkok. With the
encouragement of the friendly Thai govern-
ment, Chiang Mai has also become the com-
mand post for America's latest war in South-
east Asia; and the news from the front is
decidedly mixed. Heroin seizures in Thai-
land are at record levels-more than 1,200
pounds so far this year. Yet drug agents
readily admit this is just the tip ofamountain
of w bite powder. About 100 pounds of high-
quality heroin a week leave Thailand on
trawlers bound for Hong Kong and Europe,
much of it'destined for America-ii~ ppa~~~~to rum
replace a shortfall fror>nMPYfFr.C &8fi@W e4?%
chaos, waste and needless endangerment of
American lives. The principal antagonists.
are the Drug Enforcement Administration
-(PEA) and the CIA. Theirs is the classic
philosophical and tactical fight between
cops and cloak-arm digger operatives. The
DEA believes in classic aboveground police,
work, helping the Thai border patrol to
arrest and win convictions of major drug
refiners and wholesalers. The CIA actively
entered the fray in 1981, in part because its
director, William Casey, believed that the
opium trade in Southeast Asia would be
used to fund communist plans for regional
takeover. Working in close conjunction
with the Thai military, the CIA has been
J or t CD.IR09P14, NO ost succesful antidrug
e e n marred by unintended
sored ambush.
In early December, prompted by the Pha
Ni incident, DEA Administrator Francis
(Bud) Mullen hammered out a formal con-
cordat with John McMahon, the deputy
CIA director. According to a CIA source,
McMahon acknowledged that "Bangkok
was being a little twerky" with the DEA-
and he ordered the Thai contingent to "get
in a more cooperative state of mind." So far,
the new arrangement, which gives the DEA
a voice in plans for border raids, has been
successful. Relations between the two agen-
cies in Thailand are now correct if cool-
probably all that can be expected, given
their differences in style and tactics.
niled
 ARTICLE APPved For Release 2005/11/28: CIA-RDP91-009
BALTIMORE SUN
0I1 PAGE ~~.. 24 June 1984
Document
traces
Latin aims
By Alfonso Chardy
Knight News Service -
WASHINGTON - President
;Reagan, in a secret directive
signed earlier this year, authorized
against Nicaragua and diplomatic
pressures on Mexico to force both`
governments to moderate their poI,:
icies in Central America.
The directive also instructed
Secretary of State George P. Shultz-
once again to warn the Sovie!
Union, Cuba and Nicaragua that
the United States "will not tole'r.
ate" the deployment in Nicaragua
of advanced combat aircraft vox'
Cuban troops. - - -'Z
It also ordered the PentagonYtp
activate plans for more -military
.maneuvers in the region this year
to deter any military activity bt.
Nicaragua against its neighbors
and maintain "steady pressure" on
the Sandinista government of Nicer
ragua. Although administration ON
ficials privately have ascribed suzi-
ilar purposes to the exercises, pub;
licly Mr. Reagan has denied theZ
had any special meaning.
"I think these maneuvers ark
something we've done before," Mr
Reagan said in an April news con?
ference. "They're not something
unusual or aimed at anyone' dowp
there. . . All they are is war
games." I c'
Approval for the admonitions to
Moscow, Managua and Havana and
pressures on Mexico and the San-
dinistas was contained in a Nation=
al Security Decision Document
signed by Mr. Reagan in February,
Portions of the document, stamped
"Top Secret-Sensitive," were examined by
Knight News Service.
A White House official, asked to confirm the
contents of the document, had no comment.
The directive was approved after a National
Security Council session at the White House in
which the president and his chief advisers re-
viewed objectives and options for U.S. policy in
-Central America during 1984.
All the objectives, the document said, would
'be coupled with an escalation of U.S. "public di-
plomacy" in Latin America and Western Eu-
rope. That would be designed to counter a "Sovi-
et-Cuban-Nicaraguan propaganda campaign"
against U.S. policy in Central America, particu-
' larly in El Salvador, according to the document.
"Our diplomatic and communications efforts
should seek expanded political support for El
Salvador from non-Communist governments," it
said.
The segment on Nicaragua asked policy-
makers to "review and recommend such eco-
nomic sanctions against Nicaragua that are
likely to build pressure on the Sandinistas." The
directive ordered the preparation of an "Action
Plan" on these sanctions that was to have been
delivered to the National Security Council by
March 1. That document remains secret.
The document did not specify any concrete
sanctions being considered against Nicaragua,
but an administration source said one possibility
was a ban on Nicaraguan agricultural products
still entering the United States. It is unclear
whether this option was dropped or is pending.
A State Department official said no further
sanctions against Nicaragua are about to be an-
nounced.
Already the administration has succeeded in
denying certain international loans to Nicara-
gua, has reallocated its sugar quota among U.S.
allies in the region and has reduced to a mini-
mum the amount of trade with the country.
A one-paragraph section on Mexico author-
ized officials to "intensify ... diplomatic efforts
with the Mexican government to reduce its ma-
terial and diplomatic support for the communist
guerrillas [in El Salvador] and its economic and
diplomatic support for the Nicaraguan govern-
ment."
The directive said pressure should be applied
"bearing in mind overall U.S. interests and rela-
tions with Mexico," apparently to avoid damag-
ing diplomatic ties between Washington and the
government of President Miguel de la Madrid
Hurtado in Mexico City.
It instructed the State Department to pre-
pare a study "of ways in which we can supple-
ment our persuasive efforts" with Mexico. That
report, which is still secret, was to have been
delivered to the White House on February 24.
Continued
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 Approved For Release 2005/11/28 : CIA-RDP91-009011 000400030001-3
ARTICLE APPEARED.
ON PAGE -2 '~ WASHINGTON POST
23 June 1984
,Judge Refuses CIA Request
To Dismiss Employe lawsuit
By Lena H. Sun
Washington Post Staff Writer
A federal judge in Alexandria yes-
terday denied a request by the Cen-
tral Intelligence Agency to dismiss a
lawsuit by a former covert case of-
ficer against the agency and six of its
officials, including Director William
J. Casey.
The woman, identified only as
"Jane Doe" in the suit, still works for
the CIA. She is accusing CIA offi-
cials of attempting to fire her after
she reported abuses she said she dis-
covered overseas on a special assign-
ment in July 1981.
The suit, which accuses the agen-
cy of violating her civil rights and its
own regulations, seeks reassignment
to her former undercover position
and unspecified damages.
While overseas on an assignment,
the woman was told that her former
supervisor at that location may have
been misusing official funds for per-
sonal uses, the suit said.
After she returned to the United
States and reported the alleged im-
proprieties, her next overseas assign-
ment was canceled, she contends.
She was placed on administrative
leave and forced to take a "fitness
for duty" examination in retaliation
for reporting her complaints, accord-
ing to court papers.
Thomas Peebles, a Justice De-
partment lawyer who handles law-
suits against the CIA, yesterday told
U.S. District Judge Richard L. Wil-
liams that the CIA's decision to
transfer the woman to another de-
partment was a personnel action not
subject to a court review.
In addition, in asking for the dis-
missal of the suit, Peebles said CIA
officials are immune from personal
liability for actions they are alleged
to have committed while exercising
their discretionary authority.
But Sara Johnson, the lawyer for
the employe, argued that the trans-
fer was not merely a personnel ac-
tion.
"I cannot.imagine any other issue
more important than whether gov-
ernment officials are misappropri-
ating taxpayer dollars," he said.
"The CIA cannot. throw up a
smokescreen ... just because the
plaintiff works for the CIA."
STAT
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 Approved For Release ~ 11AR%9 P91-00901R00040
22 June 1984
STAT
&so
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Keeping posted
in parlous: times
Post doesn't mention this. Now do you see why
we need a second paper in Washington?
Updates and Ululations: Have you met David
C. MacMichael, "a former CIA analyst" who is
the liberals' latest pinup poster boy? He was
featured prominently in the pages of The New
York Times and The Washington Post because
he's saying the Reagan administration is "mis-
leading" Congress, that there isn't any
"credible evidence" of a substantial flow of
arms from Nicaragua to El Salvadoran guerril-
las since the spring of 1981. Not so, say Secre-
tary of State George Shultz and CIA Director
William Casey. But, The Post notes: "Neither
Shultz nor Casey provided any evidence to
refute MacMichael's challenge" Real slick. Mr.
MacMichael, of course, also provides no evi-
dence to -refute Mr. Shultz or Mr. Casey, but The
 ARTICLE AppE -oved For ReleMW 711LWSCIA-RDP91-00901R 0400030001-3
ON PAGE 21 June 1984
Brevity Serves' to soothe the C. LA.
By MARTIN TOLCI{IN
S,pedal to The New York Times
WASHINGTON, June 20-This is a
town of proud people and institutions,
where political grudges are often held
for years and where peace treaties
are rare, especially after a public
fracas. But in recent weeks the Sen-
ate Select Committee bn Intelligence
and the Central Intelligence Agency
.have quietly concluded a new work-
ing agreement inspired by their worst
rupture in memory.
It was only in April that committee
leaders had scorned the agency for
not informing them of the C.I.A.'s
role in the mining of Nicaraguan har-
bors, in violation of the Intelligence
Oversight Act of 1980, which requires
the agency to keep the Senate and
House intelligence committees "fully
and currently informed" of any "sig-
nificant anticipated intelligence ac-
tivity."
Senator Barry Goldwater, the Ari-
zona Republican who is the commit-
tee chairman, castigated William J.
Casey, Director of Central Intelli-
gence, as initiating "an act of war."
Senator Daniel Patrick Moynihan,
the New York Democrat who is vice
chairman of the committee, resigned
his post in protest.
Moynihan recalled- "If we didn't
come through that crisis with some-
thing changed, the system would
have failed."
Anger and Recriminations
In the cold aftermath of the anger
and recriminations, the committee
leaders pressed for a new under-
standing between the committee and
the agency, reduced to writing, ap-
proved by President Reagan and
signed by Mr. Casey and the commit-
tee members. Where 200 pages of
laws bad once been propounded to
specify what the agency could not do,
the committee leaders now sought a
simple agreement that described
when the agency, and indeed all Gov-
ernment intelligence agencies, was
required to notify Congress of a cov-
ert operation.
Few anticipated that the negotia-
tions on such a change would be
smooth, according to several partici-
pants. But a memorandum of under-
standing was achieved a mere four
weeks after the negotiators first met.
"The mining was a crisis," Mr. tive was to form guidelines for a new
the members of the Senate commit- approved an early draft," Mr.
tee placed their signatures on a two- Mayerfeld said, "and the final piece
page agreement, approved by Presi- of paper. was just some fine-tuning
dent Reagan, that specifies those cir- and language-honing."
cumstances in which the agency is re- ; Mr. Casey brought the agreement
quired to brief the senators. The crux to the senators to be signed, then "we
of the agreement is that the senators signed them, and he disappeared,"
are to be informed of any operation, Mr. Moynihan said. Ten days later,.
such as the mining, that requires the with Mr. Casey nowhere to be found,
President's approval. The agreement Garrett Chase, the Senate commit-
also requires the agency to inform the tee's counsel, was dispatched to go to
committee whenever it changes the the agency and get"the Director's sig-
objectives of a covert operation. nature. "We said, `Don't come back
The context of the negotiations was. without it,'" Mr. Moynihan said.
established at a meeting April 26, in According to Mr. Mayerfeld, Mr.
the aftermath of the Nicaraguan min- Casey had been away on a trip. "He
ing fiasco, when Mr. Casey came as signed it the day after he came
close to an apology as anybody ex- back," Mr. Mayerfeld said.
pected, Mr. Moynihan rescinded his Is the Agency Laughing?
resignation and the committee and One Senator on the committee said
the agency announced their joint in- he believed that the ease of the negoti-
tention to develop new procedures. ations reflected not that the agency
The next day, the Senate commit- had been chastened, but that the
tee staff met with Ernest Mayerfeld, document was meaningless. "It was
deputy director of the C.I.A's Office simply a face-saving device for the
of Legislative Liaison, and other committee," said the Senator, who
agency officials, in the committee's asked not to be identified. "The
security-proofed ` quarters on the agency people are probably laughing
fourth floor of the Capitol. The objec- at us, and will carry on as before."
working relationship.
"The process was devoid of any
acrimony," Mr. Mayerfeld recalled.
Senator Moynihan attributed the
harmonious spirit to the agency's
recognition that new procedures were
imperative. "The career people knew
perfectly well what a disaster we had
had," he said. "They knew that it was
in their interest to have the system.
work."
Within three days, Mr. Mayerfeld
and his aides came up with a set of
principles. The committee staff
sought to translate those principles
into a detailed set of directives, Mr.
Moynihan said. But the , Senator,
aware that the agency had previously
operated under a long set of prohibi-
tions, insisted on brevity.
"We had a shouting session here in
my office," he said. .-Bureaucracies
around here feel if it's longer it's bet-
ter. I think if it's shorter it's better. I
said, `Get it down to two pages.' "
Once this brevity had been
achieved, the document was quickly
and senate
Indeed, leaders of the House intelli-
gence committee, despairing of
reaching a meaningful agreement
with the agency, intend to press for
new legislation that spells out the
agency's obligations-in some detail.
Although Mr. Moynihan is pleased
with the new agreement, he says it is
not nearly as important as the actual
relationship between the agency and
Capitol Hill.
"What is needed is a relationship of
mutual confidence based on mutual
interest," the Senator said. "Absent
that, rules don't help much. When the
rules work, it is a sign that the rela-
tionship works."
STAT
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 Approved For Release 29 5II1~;8 iRR -RDP91'-00901 ~
GIApf?ospers under
Despite the critical rhetoric about
the reckless abandon with which the
Reagan administration conducts its
foreign policy, Congress continues to
support, to a large extent, activities
)f the CIA,
Under former President Jimmy
Carter the CIA slipped to the low ebb
of an intelligence comparable to the
'
.
Oklahoma Highway Patrol..:
.
We ' are not in agreement with
everything done by the current ad-
ministration, but we applaud its sup agency under Casey Makes one real.
port of the CIA. Under the, new proud of the national purpose. We
leadership of William Casey, a WW recommend you read th
e article.
Ii intelligence operative, the CIA In this world in which we live it
has grown in stature and influence. must be recognized there's a 'lot of_.
U S: News has a cover story in-the devilment ' out there. `Turning: the;
current issue on effectiveness of the other cheek works fine in some in-
eagan
stances. But not in dealing with'peo-
ple whose aim is to undermine our:
form of government.
Counting on love and respect to help)
one in dealing with the comma^ts
is like turning the food stamp pro=
gram over to Marie Antoinette.
STAT
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 ARTICLE APPEA -oved For ReIIaSe 2a4?1ffi/28)R121AHMM-00901 R000
ON PAGE 18 June 1984
Washington 'MhokpQ~~
***
All the flaps over CIA Director Wil-
liarn Casey-covert war in Nicaragua,
his investments, any role in the theft
of Jimmy Carter's debate papers-
have not eroded his support where it
counts. Senate Republicans still ad-
mire Casey for rebuilding CIA morale
and for his expertise in espionage.
STAT
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ARTICLE APPEARED
ON PAGE
esident
By David Hoffman
Washtngtori Post Staff Writer
UNIONDALE, N.Y., June ' 17-
President Reagan today blended the
symbols of international and domes-
tic politics in a ceremony opening
the 1984 International Games for
the Disabled.
After passing an Olympic torch
from one athlete to another' at
Mitchell Field . here, Reagan paid
tribute to the 1,800 disabled athletes
from 53 nations participating in the
games as "a group "of indomitable
men and women,"
'
The Soviet Union and Cuba are
boycotting the games, being held in
the United States for the first time.
The Soviet delegation of 18 blind
athletes and 10 team officials with-
drew June 6, but other East-bloc
nations, including Poland, Hungary,
Yugoslavia and East Germany,' have
sent delegations to the games, also
known as the Special Olympics.
Reagan, who offered the Soviets a
conciliatory gesture on a possible
superpower summit, last week, made
no mention today of the Soviet walk-
out at these games and the Los An-
geles Summer Oly=mpics.
The president, who plans to at-
tend opening ceremonies for the
summer games next month, said
they would attract "athletes from all
over the world." .
Eleven nations, including the So
viet Union, have said they will boy-
cott the games.
The president's afternoon foray
had reelection campaign. overtones.
Reagan's advisers have sought to
schedule events for him that would
demonstrate his sensitivity and com-
passion for those who are less fortu-
nate in American society, and his
appearance amid the bunting and
flags of the games seemed to fit that
goal.
Reagan reviewed a lengthy, ?color-
splashed procession of the competing"",
teams, with many athletes waving
WASHINGTON POST
18 June 1984
FILE QH
)pens International .Games:
for Disabled
hats in his direction, snapping pho-
'tographs and offering flowers.
Under cloudy skies, Reagan was
joined by New York Gov.. -Mario
Cuomo, Sen. Alfonse M. D'Amato
{R-N.Y.), 'CIA Director William J.?,
Casey and about 12,000 spectators.
pping from the podium to a
track, Reagan passed an Olympic
torch from runner Tim Towers, 12,
of Seaford,-N.Y., who is not hand-
icapped, . to Jan Wilson, 21, of
Winston-Salem, N.C. Wilson, an am-
putee, is a swimmer in the games.
In brief remarks, Reagan told the
disabled athletes, "By competing in
these games each of you is sending a
message of hope throughout the
world. You are proving that a dis-
ability doesn't have to stand in the
way of a full and active life."
The games include athletes who
are suffering from cerebral palsy and
other motor handicaps or who are
blind or amputees.
The athletes are to compete for
two weeks in track and field, table
tennis, swimming, basketball, soccer
and other events.
Reagan applauded the skills of
athletes like Arnie Boldt, who lost a
leg above the knee.
"When he high-jumps, he can take I
his body farther into the air than
most people are tall," Reagan said.
STAT
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ARTICLE APPEARED
ON PAGE
}Theater
WASHINGTON POST
15 June 1984
By Mary Jordan
Sargent Shriver says he goes to the theater to es-
cape politics, but that's practically impossible in, Wash-
ington. Last night, at the opening of Jerry Herman's mu-
sical revue, "Jerry's Girls," Carol Channing sang the ver-
sion of "Hello, Dolly!' that opened the 1964 Democratic
convention-"Hello, Lyndon." The audience loved it.
At the peaty after the show, Charming said she'd
been approaphed to'sing at this year's Democratic con-
,.Mention. "Oh, oh, you know I'm a Democrat. Of course,
1!d love to sing 'Hello, Walter' in San Francisco."
Channing continued, as she always does, nonstop:
"You know, I was at the top of the
Nixon hate list." Why, she was asked.
"Because there were no A's or B's."
. Earlier, at intermission, federal
Judge John Sirica had also mentioned
former president Richard Nixon. The
judge, who presided over the Watergate
trials, said he didn't know whether it
was longer since he had seen a musical
or the president he had helped out of
office. `The last time I saw Nixon, I
was swearing in William Casey as head
of the SEC [Casey now heads the CIA].
We were in the Oval Office and I spoke
with Nixon for a few minutes after-
wards" The 80-year-old judge noted
that was the last time he was invited to
the Oval Office.
Leslie Uggams and Andrea McArdle,
who with Charming brought the Ken-
nedy Center crowd to its feet for a
standing ovation, said they too were
registered Democrats. "Maybe that's
why we all get along so well," Uggams
said at the post-show party.
McArdle, now 20 and the original
Broadway "Annie, said she would like
to get.involved in politics someday. "I
always thought I would go into politics.
Maybe when. I get more stable in my
career," she said. "The first thing I
would do is ban smoking everywhere."
en,
Composer-lyricist Jerry
who just won a Toz'iy for "La Cage aux
Folles," said he was planing on taking
the summer off NO rest until I start
wig again in the fall" But Herman
said he would interrupt his rest to ac-
company Charming to the San Fran-
cisco convention. "If she is asked, sure,
I'll be right there with her."
Herman and his recent success with
what he calls the "return of the hum-
mable Broadway tune" were the main
topics for the 150 people who joined
the cast at a light buffet following the
show. The Shrivers didn't make it over
to the Georgetown Hotel party, but
among those who did were Wolf Trap
founder Catherine Shouse, Kennedy
Center chairman Roger Stevens and,
radio personality Larry Krug'
l
hopeful
tic presidentia
Democra
Walter Mondale was on the guest list-
b`. Lead went to Houston for a" _
furser titled "A Salute to Lloyd'
Bentsen," the Texas senator frequently
mentioned as a possible
King nonetheless offered him some
advice. "If I were Mondale, I would do '
something unconventional at the con
vention. It would take everybody's:.
mind off Reagan if all the attention -
went to, say, a woman vice president"
And even Shriver, on leaving the'
Kennedy Center with his wife Eunice,'
gave in to Washington's current preoc-
cupation with who will be Mondale's -
running mate. "Yeah, I think Hart will
take it, don't you?"
STAT
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 SALT LAKE CITY DESERET NEWS (UT)
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In.
a
'on
What role for the CIA?
It's a lasting question
- a view did not
apologized last week to the Senate In- prevail 10 years go, but the formerly
telligence Committee for failing to "ad- unfettered CIA did find itself with
equately" inform committee members many new restrictions.
about mining of Nicaraguan harbors, Obviously, how well the "'system
he reduced some of the congressional works depends on who is president, how
heat on the spy agency, much the CIA leaves out of what it tells
But the - apology, and vows by the to Congress, and how many clandestine
committee to tighten the rules on fu- "adventures" the U.S. is trying to carry
tore disclosures, have not quieted the out.
debate over the role of the CIA, particu- At the moment, the future. looks
larly when it comes to so-called "co-
bleak for covert operations. Too many
vert" operations. things have backfired or failed in past
No one is arguing that the nation actions. Even when the CIA succeeds in
doesn't need a secret agency dealing in a covert operation, the agency and the
espionage and counter-espionage. U.S. have been heavily criticized.
Gathering of information goes on at a Why.,does the U.S. come in for so
variety of levels, from satellite photos much censure because of CIA activities
to. cloak-and-dagger spies inside the So-when the KGB, which is far. bigger and
viet Union itself. does far more, escapes relatively un-
The disagreement comes. dyer the scathed? Are their agents better than
propriety of the CIA moving from spy- ours? Not really. The Soviets have their
ing to engaging in what are called share of failures - witness the nearly
"dirty tricks" - assassination,-"desta- 100 Soviet KGB-diplomats kicked out of.
bilizing" of unfriendly regimes, support various countries this past year for
of certain guerrilla movements, and clumsy spying.
even paramilitary actions of its own. Part of the answer is that - fair or
The Soviet Union and its own spy not - the world, including Americans
agency, the enormous KGB, engage in themselves, holds the U.S. up to higher
all these things and 'then some, on a standards of behavior than they. do the
massive scale. The question is whether soviets.
that justifies the U.S. fighting back in
the same way. ;_r.':. Another reason is that the. is an
open society, where it seems sooner or
Are such activities compatible with a later almost everything is made public.
democratic society? If they are al- However,.that penchant for telling all
lowed, who should decide? What limits is a contradiction of what the term co-should there be? Who should be told and vert means: concealed, hidden, dis-
how much? Should members of Con- guised. ` As a result, succeed or fail, a
gress have a veto? How can secrecy be covert act usually ends up being politi-
maintained with such a leaky and polit- cal ammunition for somebody..
ically-motivated body as . Congress
involved? r As long as our enemies use covert
These are questions with no easy an- operations against us, it's hard for the
savers. A similar debate took U.S..to avoid similar activities at least
place to a limited extent. And as long as
about 10 years ago as a variety of sto- America remains an open and pluralis-.
ries on CIA deeds - and misdeeds - tic society, the CIA had better be re- `
became public. p
pared for periodic debates about the
Some argued then that all covert op- need for such operations and the guide-
erations should be banned, a cry being lines under which they, should be
raised again in, the aftermath of the conducted.
When CIA director William J. Casey Nicara a miuin Th t
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ON PAGE 39 15 June 1981+
Conzress Skeptics Bilk at Nicaragua hvid.on.en
?-/ .4 . v ? STAT
. tuff Reporter of T HE WALL STREET JOURNAL
WASHINGTON-The Reagan adminis-
tration recently showed House members
1tt best evidence that Nicaragua is supply-
Ing arms to leftist guerrillas in El Salva-
dor: color slides of pack mules and dugout
c4noes it said are used to transport mili-
tary equipment.
When the closed-door session ended,
snickers rippled through the committee
room. "They hurt themselves with a fairly
amateurish presentation," says Rep. Bob
Edgar, a Pennsylvania Democrat who at-
tended the briefing by Central Intelligence
Agency Director William Casey, Secretary
of State George Shultz and Gen. John Ves-
sey, chairman of the Joint Chiefs of Staff.
"To see three mules on a path with boxes
.on their backs doesn't confirm Nicaraguan
involvement, at least not in my mind."
President Reagan portrays Nicaragua's
Sandinista government as the major con-
duit for Soviet and Cuban arms shipments
to guerrillas in the region. And, during the
past few years, he has justified a policy of
putting economic and military pressure on
the Sandinistas as the most effective
means of slowing the arms traffic.
.But now the quality of the evidence is
taking on renewed importance. The White
House is trying to persuade a reluctant
Congress to approve an additional $21 mil-
lion in aid for Nicaraguan insurgents,
known as Contras, who are battling the
Sandinistas. Although some legislators are
unalterably opposed to supporting the Con-
tra attacks on Nicaragua, strong proof of
the arms flow could help sway undecided
members, administration officials say.
An Angry Shultz
The issue of the evidence has becom E,`0
sensitive that Mr, ultz expressed outrage
over recent comments by David Mac i-
gency emp oyee,'that the arms flow as
sto "It is inconceivable that an in-
orm , honest person would make that
statement," Mr. Shultz said. "The evi-
u e y cony nc-
dence is totally and absolute
i
There is widespread agreement on Cap-
itol Hill that Nicaragua is providing some
help to rebels in neighboring El Salvador.
The issue is how much military equipment
the Sandinistas are supplying and whether
significant guerrilla activity in El Salvador
could continue without the help,
The extent of the assistance is in dis-
pute because most shipments are small
and much of the evidence comes from
communications interceptions and reports
from sources that are difficult to con-
firm.
An April intelligence report from a
source in Nicaragua., o e ample, savs
that light planes are flying across the Gull
of onseca "at extremely low levels and
icing out bundles of arms and ammuni-
tion at pre-selected beaches (in El Salva-
dor) without lap ing." According to a re-
p r , "much o e ammunition is being
cached in preparation for the arrival of 1,-
000 soldiers from Nicaragua," a reference
to Salvadoran guerrillas who are being
trained by the Sandinistas.
Source of Frustration
A U.S. intelligence source blames the
lack -of tangible evidence of the arms flow
sm.,the.Salvadorgn mili);arv. which savs.
doesn't respond to intelligence reports
quickly enough to stop shipments. : g
know-Ws going on but the,frustrating thing
is that dye can't seem to interdict any-
thing." the intelligence source says.
An administration official adds that
most of the current shipments from Nica-
ragua consist of ammunition, which is
more difficult to detect than weapons. And
he says the shipments are widely dispersed
and small, as there are only about 6,000
full-time and 6,0D0 part-time guerrillas to
supply. "It isn't like Vietnam. You have to
adjust your sense of scale to the conflict,"
he says.
The administration is having similar
problems convincing a skeptical Congress
that Cuba and Nicaragua are planning to
supply the Salvadoran guerrillas for a ma-
jor fall offensive. The offensive,.the admin-
istration says, is designed to influence the
U.S. presidential elections by showing that
the guerrillas' strength is Increasing de-
spite Mr. Reagan's policy In the region.
A Soviet Role?
The White House says it has evidence
that the guerrillas have kidnapped about 1,-
5D0 young Salvadorans in recent months in
an effort to expand their forces for the
planned offensive. One intelligence report
says the guerrillas also are iding under-
ground caches of mortars, es machine
guns and grenade launchers. Another re-
made in Bulgaria have been found among
captured guerrilla munitions in an__T~~VI' el
rovince. Analysts say is Soviet bloc
equipment is filtered through Nicaragua to
the Salvadoran guerrillas.
The administration is linking these ac-
tivities with the need to fund the Contras
and keep the pressure on Managua. White
House officials are telling Congress that
the Contra attacks "distract" the Sandin-
istas, thereby reducing the flow of weapons
to El Salvador. And they say that if this
pressure is increased, the Sandinistas
mightn't be willing to keep paying the
price of supplying the Salvadoran rebels.
Within Congress. though, Mr. Reagan's
assertions based on what some members
consider flimsy evidence is further eroding
the administration's credibility concerning
its Central America policy. In a recent
speech, Mr. Reagan implied that huge
arms shipments to Nicaragua were being
funneled to El Salvador. Rep. LeeHamil-
ton (D., Ind.), an influential member of the
House Foreign A airs committee. savs e
"intenigence communes" couldn:t"s,ip-
port the claim." Mr. Hamilton concluded
President Reagan s statement was
clearly misleading and ouy to be nubliciv.STAT
corrected."
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Obl PAGE I 14 June 1984
Moynihan calls
Managua arms
role unproven
From Wtre Se vic s
WASHINGTON The Senate
:Intelligence Committee never has
been given "conclusive informa-
tion" to back up administration's
rcharge that Nicaragua is sending
arms to El Salvador, committee
1 vice chairman Daniel Patrick
Moynihan (D, N.Y.) said yesterday.
Mr. Moynihan also disclosed
that the committee had reached
written, formal agreement with the
Central Intelligence Agency about
when and how the CIA is to notify
Congress about cov`erf ' operations.
He said the agency has asked that
the agreement be kept secret, but
he spoke about its major points.
The existence of an ongoing
cross-border flow of arms has been
the major justification for the ad-
ministration's highly controversial
three-year-old "secret war"
'against the Nicaraguan govern-
ment.
The issue was raised again this
week when a former CIA analyst,
David Maclllichael, said such
claims are based on outdated infor-
mation, and that administration of-
ficials are misleading Congress.
Mr. MacMichael, 56, worked on
intelligence estimates on Central
America for the CIA's National In-
telligence Council under a two-year
contract through March, 1983.
State Department and CIA offi-
cials have rejected Mr. MacMi-
chael's claims but have not' re-
leased evidence that arms flows
are continuing.
Secretary of State George P.
'Shultz angrily said, "It is inconceiv-
able that an informed, honest per-
son" could deny the arms supply
from Nicaragua to the Salvadoran
guerrillas.. .
"The evidence is everywhere:'
.I've looked at a lot of it and I think
it is totally and absolutely convinc-
ing that the direction and the sup.
ply of the guerrillas in El Salvador
comes from Nicaragua:"'
CIA Director William J.. Casey
said Mr. MacMichael's charges
were "just one man's opinion."
Mr.. Moynihan said his. commit,
tee, which oversees intelligence
operations, "has not been presented
with any conclusive information"
to document the arms flow.
Mr. Moynihan, a consistent sup-
porter of aid to the anti-Sandinista
rebels, predicted that disclosures
challenging the administration's
GG I think it is totally
and absolutely
convincing that the
direction and the
:supply of the guerrillas`.
in El Salvador comes
from Nicaragua"
GEORGE P. SHULTZ
repeated assertions that Nicaragua
is "exporting revolution" will
prompt Congress to halt aid to the.
"contra" guerrillas,
Senate and House leaders have.
been trying to work out a compro-
mise on funding that will at least
give $6 million to $8 million more
to the contras to help them wind
down their operations. But House
leaders have said that recent dis-
closures about the lack of proof
about Nicaraguan involvement in
the Salvadoran civil war mean no
new aid will be voted by the Demo-
cratic-controlled chamber.
The Senate and House intelli-
gence committees monitor the ac-
tivities of the country's intelligence
agencies. Moynihan almost re-
signed his vice chairmanship over
a flap with the CIA last April, when
he accused agency officials of with-
'holding information about their
role in the mining of Nicaragua's
harbors.
That incident led to a new over-
sight agreement that be said was
signed last Thursday by Mr. Casey,
committee Chairman Barry Gold-
water (R, Ariz.) and Mr. Moynihan.
The new secrecy agreement re-
quires that Congress be informed of
"significant anticipated activity"
in spy operations, Mr. Moynihan
said.
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 Approved For Release 2005MIEW: U=~DPI1 [RWQ4
O'NEILL: OPPOSITION TO NICARAGUA AID GROWING
BY ROBERT SHEPD
WASHINGTON
STAT
Speaker Thomas O'Neill said Thursday House resistance to giving CIA -backed
Nicaraguan rebels more money is stiffening, partly because of doubts about
administration claims that Managua is the funnel for massive arms shipments.
A former CIA analyst said this week there has been no evidence of arms
shipments from Nicaragua since 1981, but Secretary of State George Shultz, CIA
chief William Casey and other administration officials strongly disputed the
assertion.
O'Neill said doubts remain about how much equipment ''if any,, is flowing to
the Salvadoran guerrillas.
Chief deputy whip Bill Alexander, D-Ark., also said administration evidence
of the shipments ''is very, very thin.-
The House and Senate are deadlocked over President Reagan's request for
another $21 million this year to support rebel operations against the
Marxist-led government of Nicaragua. Reagan has justified covert U.S. aid for
Nicaraguan insurgents on grounds that Managua has been shipping communist arms
to El Salvador rebels.
The House wants to close down the operation, but the Senate generally
supports it and the Senate intelligence committee has approved another $28
million for the covert war next year.
"The will and feeling of the House is that they are not interested in the
$21 million or the $28 million,'' O'Neill said.
"Those opposed to covert action in the House seem to be gaining strength,"
he said.
O'Neill has been urging that the $21 million in aid to Nicaraguan rebels be
separated from the summer jobs program in a spending bill, but Reagan said he
wanted the bill kept intact during a news conference Thursday night.
" I want both these programs, " he replied. "I want jobs for the young
people, summer jobs and I want the Nicaraguan aid. "
Alexander, who has visited Nicaragua and El Salvador, said the
administration's evidence of arms shipments " is very, very slim if any and that
as a justification (for the covert program) is inadequate. "
The administration insists it is backing the Nicaraguan rebels to pressure
the Sandinista government to halt its support for the rebels in El Salvador.
CIA officials confirmed to the House intelligence committee Wednesday the
covert operation is just about out of money -- the reason the administration is
pressing for approval of another $21 million for this year.
Conlin
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 ARTICLE Ayp.ed For ReleascN~V0NPt2R~1Gi`k-kb'f91-00901R00040
on >r1a ~} 14 June 1984
No proof of Nica arms
to Salva: Pat'
By HARRISON RAINIE
and BARBARA REHM
Washington (News
Bureau)-Sen. Daniel P.
Moynihan (D-N.Y.), vice chair=
man of the Senate Intelligence
Committee, insisted yesterday
that the Reagan administra-
tion has failed to provide "any
conclusive information" about
massive weapons shipments
from Nicaragua to leftist re-
bels battling the U.S.-backed
government of El Salvador.
The existence of an ongoing
cross-border flow of arms has
been the major justification
for the administration's highly
controversial, three-year-old
"secret war" against the Sandi-
nista government of Nicar-
agua.
Moynihan said his commit-
tee, which oversees intelli-
gence operations, "has not
been presented with any con-
clusive information" to docu-
ment the arms flow. HIL.%tate-
ment appeared to lend som
C ce o asserions ,ffor-
~er ana s a~D vid Mae'
Michael that the Reagan ad-
ministration is misleading
Congress and the e blic about
Nicaraguan activity in hi Sal
va or.
-? IN A SERIES of interviews
published yesterday and over
the weekend, MacMichael, who
worked for the CIA from 1981
to 1983 as a contract employe
dealing with Central American
Intelligence estimates, said the
administration has lacked
credible evidence of a substan-
tial flow of weapons from
Nicaragua to El Salvador since
the spring of 1981.
But Secretary of State
Shultz angrily disputed the
MacMichael charges. "It is in-
conceivable that an informed,
honest person" could deny the
arms supply from Nicaragua
to the Salvadoran guerrillas.
"The evidence is everywhere.
I've looked at a lot of it and I
-think it is totally and absolute-
ly convincing that the direc-
tion and the supply of the
guerrillas in El Salvador
comes from Nicaragua."
Shultz, at a luncheon with
diplomatic correspondents, ex-
pressed astonishment at being
questioned repeatedly on the
issue and suggested that Mac-
Michael "must be living in
some other world."
CIA DIRECTOR William J.
Casey said that MacMichael's
charges were-just one man's
opinion." Neither Shultz nor
Casey provided evidence to re-
fute MacMichael.
Moynihan, a consistent
supporter of aid to the anti-
Sandinista rebels, predicted
that disclosures challenging
the Reagan administration's
repeated assertions about
Nicaragua "exporting revolu-
tion" will prompt Congress to
halt aid to the "contra" guer.
rillas fighting the Nicaraguan
government.
Senate and House leaders
have been trying to work out a
compromise on funding that
will at least give $6 million to
$8 million more to the contras
to help them wind down their
operations. But House leaders
have said that recent disclo-
f
sures about the tack of proo
about Nicaraguan involve.
ment in the Salvadoran civil
war mean that no new aid will
be voted by the Democrat-
r controlled chamber.
MOYNIHAN also disclosed
that the Senate Intelligence
Committee had reached writ-
ten, formal agreement with the
CIA about when and how the
agency is to notify Congress
about covert operations. He
said the CIA has asked that the
agreement be kept secret, but
he spoke about its major
points.
The agreement requires
that Congress be informed of
"significant anticipated activ.
ity" in spy operations, Moyni.
han said. He acknowledged
that there might be loopholes
in the document, because "you
cannot devise a fail-safe sys-
tem." But he called it "the
most important" development
in congressional oversight
over intelligence operations
since Congress revamped the
law in 1980.
STAT
STAT
Approved For Release 2005/11/28 : CIA-RDP91-00901 R000400030001-3
 ARTICLE APPEARED
AipJAr o g _e 200 t W_pil-00901R000400
Million B~cke
28
l
For' A
J By Margaret Shapiro
Washington Poet Staff Writer
The Senate Intelligence Commit-
tee yesterday tentatively approved a.
request. from President Reagan for
$28 million in continuing aid next
fiscal year to the "contras" seeking to
overthrow the Sandinista govern-
merit of Nicaragua. .: " .
Congressional sources said the
committee action came in the form
of an 8 to 4 vote against an alterna-
tive, a proposal 'by Sen. Joseph It
Eiden Jr. (D-Del.) that would have
allowed the money to be used only
to stop movements of arms from
Nicaragua to rebels in El Salvador
and to other Latin American coun-
tries.
Biden's proposal also would have
left the committee the power to cut
off the funds to the contras if it
found that the Nicaraguan govern-
ment had stopped shipping arms.
Biden, two other Democrats and
William S. Cohen (R-Maine) report-
edly voted for the plan.
It was unclear who the two other
Democrats were, but committee Vice
Chairman Daniel Patrick Moynihan
(D-N.Y.) seemed supportive yester-
day. He complained publicly that
the committee has been given no
"conclusive information" to back the
Reagan administration's claim that
Nicaragua is shipping arms into El
Salvador.
The issue is important because
the stated basis for administration
intervention on the contras' side has
been to -stop such shipments.
A former CIA analyst, David C.
MacMichael, said earlier this week
that the administration lacks -creel-
able -edidence of substantial arms flows to El Sal-
vador. from Nicaragua.
His claims were quickly contradicted Tuesday
by Secretary of State George P. Shultz and CIA
Director William J. Casey.
Aid to the contras, is the, most controversial as-
pect of administration policy in Central America,
Republican-controlled Senate approved it.
A House-Senate conference committee then
deadlocked on the issue, `and the $1.1 billion
spending bill to which the aid was attached has
been held up as a result.
The spending bill includes $100 million for a
summer jobs program for youth, as well as funds
for maternal and child nutrition programs. House
Speaker Thomas P. (Tip) O'Neill Jr. (D-Mass.)
f yesterday called on Senate leaders to separate the
money for the contras from the rest of the bill so
that funds for the other programs could be freed,
.for passage.
However, Senate Majority Leader Howard H.
.Baker Jr. (R-Tenn.) said after a White House,
meeting that "I -would not propose splitting out
Nicaragua and dealing with it separately. We just
need to work out an agreement"
In a related development, CIA officials ap-
House Intelligence Committee-
th
f
e
ore
peared be
to-respond to charges by members that the agency
'has circumvented the" congressionally approved
$24 million cap on - expenditures for the contras
this year.
According to committee sources; the CIA has
gone around the limit by charging personnel. costs
to other accounts and by borrowing Defense De-
partment equipment for use by the contras.
After meeting with the C officials, who
sources said were the agency's director of opera-
tions and its comptroller, the committee released
a statement that said the CIA had exceeded the
$24 million cap by "less than $1 million."
However, the statement said, "a majority of the
believes that the statute is unambig- -
t
t
ee
comm-
uous and that such expenditures should have been
included under the cap."
On the other hand, the statement also said
"nothing the committee knows suggests that the -
agency's failure to include these expenses was an
attempt to evade the law."
According to committee sources, the CIA offi-
cials told the committee that they disagreed with
a committee' staff assessment. 'They think they
are completely within the law and they have not
exceeded the cap," one source said.
Disputes between the committee and the CIA
have led several members of the panel, including
outgoing Chairman Rep. Edward P. Boland (D-
Mass.) and Rep. Lee H. Hamilton -;(D-Ind.),
Boland's likely successor, to begin drafting legis-
lation or new committee rules to impose stricter
reporting requirements on the agency.
ase 2005/11/28 : CIA-RDP91-00901 R000400030001-3
and a likely, major issue in the fall campaigns. The
Democratic-controlled House has voted no further'
aid after this year.
ThB House and the Senate also are locked in a
dispute over'$21 million th Reagan 1 (]ki i
STAT
year. The House voted down the money but the
 ARTICLE l~~ t d For Release 2OMTU= l4 91-
ON PAGE13 June 1984
Balance incIeferse,speiidii1iirge
yy Walter Andrews
'B
Tt1 W' SMMIOTON nMES
The United States needs ,to move
toward moderate but sustained growth
to defense spending and away from the
.sharp swings of recent years, two con-
gressional defense experts said yester-
iday.
-Sen. Sam Nunn, D-Ga., and Rep. Les
Aspin, D=Wis., said the public'dnd Con-
gress have to move toward a' sustained
growth in defense spending of about 5
percent annually after inflation has
been accounted for.
Mr. Aspin noted that several years ago
the public and Congress favored a
defense buildup. This year "everybody
is for arms control," he said.
"It's terribly, terribly debilitating to.
have these swings in public opinion ...
If we're going to get something going on
defense, we're going to build a middle
ground," he said.
He criticized the Reagan administra-
tion for initially submitting a 1985
defense budget request increase of 13
+percent when the mood in Congress,
.concerned about budget deficits, was
against such a large rise. -
The respective members of the Sen-
ate and House Armed Services commit-
tees made their comments at the sixth
annual American Stock Exchange
Washington Conference held at the State
Department.
Zbigniew Brzezinski, former national
security adviser in the Carter admin-
istration, called for a "deliberate effort"
by both political parties to move toward
bipartisanship in foreign policy and
away from the confrontation that has
marked recent years.
He told the conference that the Rea-
gan administration made a major mis-
take in 1980 when it failed to name
former Sen. Henry Jackson, D-Wash.,
its secretary of defense.,
Noting that Mr. Reagan was favored
to win in November, the one-time White
House aide said that the upcoming elec-
tion could be a "watershed" in terms of
.bipartisanship.
The former national security adviser
-said the present tension between the
United States and the Soviet Union is
:due largely to internal problems of
Soviet leadership. He said the new
Soviet leadership is neither very
dynamic nor "very intelligent"
Mr. Brzezinksi said he came away
"unimpressed" from a meeting with
=Soviet leader Konstantin Chernenko.
Relations with Japan are bad, and the
Approved
Soviets have become isolated from the
Islamic world, he commented.
"The Soviet Union is probably as iso-
iiated in the world today as it was in the
`worst days of Stalin;' Mr..Brzezinski
xsaid. ,'
Sen. Nunn also accused the Reagan
[administration of tilting the defense
budget toward the procurement of
weapons, which is making the defense
budget more difficult to control.
A smaller percentage of the money
approved for weapons purchases is
spent in the year Congress approves the
appropriation, and the money backs up
.s approved but unspent authority, the
senator said.
? , This approved but unspent authority
has gone from $96 billion in 1981 to
$239.9 billion currently, he said. Sen.
Nunn said the percentage of the defense
-outlays uncontrollable in a given year of
congressional approval has gone from
28 percent four years ago to an esti-
mated 40 percent next year.
He also criticized European allies for
not holding up their end of the defense
of the NATO alliance, specifically the
European airfield shelters for the 1,600
warplanes for which the United States
spent $50 billion.
He charged the allies with building
shelters for only 300 planes and failing
to build up ammunition stockpiles for
sustaining 30 days of combat. Unless the
allies agreed to correct both situations,
the senator said the United States
should make major reductions in the
number of troops it has in Europe.
Former Gen. David Jones, who
retired as chairman of the Joint Chiefs
of Staff last year, said a major reduction
of U.S. forces in Europe at this time
would be "counter-productive." He
agreed that the problems in the NATO
alliance are "quite severe."
Retired Admiral Elmo Zumwalt con-
curred with Gen. Jones, commenting
that a withdrawal of U.S. forces would
play directly into the hands of the Sovi-
ets, whom he accused of trying to "Fin-
~landize" Europe.
Central Intelligence Director
William J. Casey and Sen. Daniel Pat-
rick Moynihan, D.-N.Y., the ranking
minority member of the Senate Intel-
'ligence committee also addressed the
conference.
Mr. Casey said the threat posed
Soviet missi ee anT su marines still
dominates the intelli ence community's
.tnterest s. He ssatrr aceC ntly
seen ra ar deDloyments and the testing
printerce for missiles that uld rrive
iNe o5vietsa"cup pgstag y
For Release 2005/11/28 : CIA-R t 9AAS mMMeaty
Cmlting b$1jSy~3jscilQ defenses- Continued
STAT
 OAKLAND TRIBUNE (CA)
Approved For Release 2005/M28 :1Q -RDP91-00901R0
match what they do
Like an elephant on the rampage, f,1A
covert operations can be embarrassingly
tough to corral once unleashed on the world.
The House Intelligence Committee must
come to grips with that grim fact today as it
meets with CIA director William Casey to
discuss evidence that the agency has kept
Congress rather than Nicaragua in the dark
over its funding of anti-Sandinista rebels in
Honduras and Costa Rica.
Congress authorized the CIA to spend no
more than $24.5 million on the contras in the
current fiscal year. Administration pleas for
a $21 million supplemental appropriation
have twice been turned down this year in the
House.
Now disturbing reports suggest that the
agency is simply skirting the law to carry on
its dirty war against its undeclared enemy.
An even more disturbing question is whether
Congress can discover the facts and bring this
kind of lawlessness under control.
The CIA ran amok in the 1950s and 1960s,
running secret wars in Cuba, Laos, Congo, and
other exotic locales. Funds were hidden in
mysterious "black" budgets; paramilitary op-
erations were financed through profit-making
front companies and even illicit enterprises.
Congressional reforms in the mid-1970s put
checks on such practices. But if the latest
reports prove true, those reforms may need
substantial strengthening.
"The story is that they have overdrawn,"
one House Intelligence Committee member
told The New York Times. "They've been
transferring accounts in order to be sure that
the insurgents could continue on for the rest
of the year."
One congressional source told us that the
"basic sense is that the CIA has violated the
law" by busting its budget ceiling.
The Times reported in May that the ad-
ministration was using "accounting proce-
dures and circuitous arms transfers" to "dis-
guise both the value and quantity of military
aid the United States has sent to Central
America to support ... Nicaraguan rebels."
One method involved Pentagon transfers
of ships, planes, guns and other equipment to
the CIA at below-market rates, as well as free
transportation for CIA arms to the region.
The Pentagon spent more than $200,000
fixing up an air base in Honduras, then turned
it over free of charge to the CIA for use in
shipping supplies to the rebels. And members
of Congress suspect that the CIA didn't ac-
count properly for the cost of maintaining the
"mother ship" used to direct the mining of
Nicaraguan ports.
The contras may be receiving supplies
through even more obscure conduits. Under a
deal worked out with Argentina's military
junta, the new government of President Raul
Alfonsin has shipped them $2.5 million in
arms, according to The Washington Post. The
transfer was part of a $10 million deal to sell
to Honduras arms intended for the rebels.
With the debt bomb ticking away, Alfonsin's
regime was in no position to turn Washington
down.
The CIA reportedly has also asked the
Saudis and Israelis to back the rebels with
arms. Though the Saudis apparently refused,
and the Israelis deny acting as a surrogate,
the Post reports that Israel has in fact sent
several million dollars worth of aid through a
South American intermediary.
Casey and other CIA officials have denied
knowing anything about what is fast becom-
ing public knowledge: The end run around
Congress has already begun. Similar decep-
tions have been documented in the case of aid
to the government of El Salvador.
More frightening even than the prospect
of the CIA lying to Congress is the argument,
recently advanced by Justice Department
attorneys before a federal appeals court in
San Francisco, that a president may simply
ignore congressional aid restrictions without
fear of legal sanctions.
The CIA doesn't seem to comprehend -
nor does its boss in the White House - that
war isn't a game of hide and seek. Congress
placed a ceiling on the rebels' funds for sound
reasons of international law and practical
foreign policy. It must act with determination
to plug the leaks in that ceiling now - or
prepare to pay the bill for a constitutional
rupture of historic proportions.
STAT
Approved For Release 2005/11/28 : CIA-RDP91-00901 R000400030001-3
 Approved For Release 2005/11/28: CIA-RDP91-0090'
p.RT T CT:E APPEAREI?
WASHINGTON POST
13 June 1984
Ex-CIA Analyst Disputes
ES. Aides on Nicaragua
Ry Don aberdorfer
and John M. -Goshko
Washington Post start writers
A former ? CIA analyst charged
yesterday that the Reagan admin-
istration is misleading Congress and
the public about Nicaraguan activity
in El Salvador. He was contradicted
immediately by Secretary of State
George P.'Shultz and CIA Director
William J. Casey.
David, C. MacMichael, who
worked on Central American intel-
ligence estimates as a CIA contract
employe from 1981 to 1983, said the
administration lacks credible evi-
dence of a substantial flow of arms
from Nicaragua to El Salvadoran
guerrillas since the spring of 1981.
The existence of a continuing
cross-border flow of arms, -which
President Reagan described last
month as "a flood" of Soviet weap-
onry, has been a central feature of
the justification for the U.S. "secret
war" against the Nicaraguan govern-
ment that began late in '1981.
MacMichael said he questioned
the lack of 'recent intelligence - to
back up U.S. claims of a massive
Nicaragua-to-El Salvador arms flow
during an interagency :meeting in
September, 1981, and in subsequent
memoranda to his superiors at the
CIA. . - :
In an interview with The Wash-
ington Post, MacMichael said that
although he had a top-secret clear- measure from the support.that is
j ance and other authorizations to see provided them from Nicaragua,
highly confidential data, colleagues Cuba and so on."
and senior officials of the agency Neither Shultz or Casey provid
could produce only vague and out- ed evidence to refute MacMichael's
dated responses to his questions. tf challenge. The State Department,
Rather than showing communist 3 `which has been asked repeatedly by
origins or Nicaraguan complicity, ,--reporters in recent months to. make
MacMicifiael said, weapons captured 1 public its evidence that the illicit.
from Salvadoran guerrillas' "in the arms are flowing, has not provided
last year or so have,originated with
such information.
Salvadoran government sources." Shultz said publication of another
Shultz, questioned at a luncheon administration "White Paper" on
meeting with diplomatic correspon- external support for the El Salvador
dents, said, "It is inconceivable that guerrillas is not being planned but
an' informed, honest person" could that "I'll go back and examine the
deny the arms supply from Nicara.
issue" of making public the admin-
gua to El Salvadoran guerrillas. "The istration's data.
evidence is everywhere. I've looked MacMichael, 56, said he joined
at a lot of it and I think it is totally the GIA in March, 1981, under a
and absolutely convincing that the two-year contract to be an "esti-
direction and the supply of the guer- mates officer" for the National In-
rillas in El Salvador comes from Nic-
aragua." telligence Council, which produces
national and interagency intelligence
At another point Shultz expressed ,estimates, and that he spent more
astonishment at being questioned so than half his time on Central Amer-
persistently on this point, and sug- ica.
gested that MacMichael "must be His contract was not renewed
living in some other world." when it ran out last March. MacMi-
Casey told an American Stock chael, an ex-Marine with experience
Exchange meeting here, in response as an analyst in Southeast Asia, said
to a question, that, MacMichael's a' superior told him he was "not a
charges were "just one man's opin- [ match" with the CIA.
ion." Casey acknowledged that Mac- I. ' After leaving CIA employ, he
Michael had been a contract em- made trips to Nicaragua in August-
ploye of the CIA but insisted "there
and March-April
1983
tember
` Se
,
,
,
p
I
is ample evidence" that "the activ-
., . ?11. _ _r ~t- 1984, "to see for myself" because he
in El Salvador to threaten the -Sal - ??"? " ?""" ' ~~ ? --~ ~_ __________
wadoran government springs in large tion within the government and a.
. seeming lack of interest in finding
out, MacMichael said.
STAT
Approved For Release 2005/11/28 : CIA-RDP91-00901 R000400030001-3
 Approved For Release "1b1e~198 1A?-bb9
Jun
BY HENRY DAVID ROSSO
WASHINGTON
Former CIA analyst David MacMichael, who has disputed President Reagan's STAT
assertions about a massive flow of arms from Nicaragua into El Salvador, says it
is up to the administration to provide proof of the arms shipments.
''The evidence does not support the administration's claim of massive
continuing arms flow from Nicaragua into El Salvador for the use of the
insurgents,'' MacMichael said on the ABC "Good Morning America" program
Tuesday.
''We had abundant evidence of this, as is accepted by everyone, from roughly
the fall of 1980 until the spring of 1981 and since that time the evidence, the
seizures, which once were commmon, completely ceased,'' MacMichael said. " As a
matter of fact, there's been no seizure of an arms shipment in the past three
years. "
Top administration officials, including Secretary of State George Shultz and
CIA chief William Casey, Tuesday rejected MacMichael's assertions.
Shultz, during.a luncheon appearance Tuesday, showed a touch of irritation at
repeated questions about MacMichael's assertions.
"It's inconceivable to me that an informed, honest person could make that
statement. I've looked at the evidence and it's totally, absolutely
convincing, " Shultz said. MacMichael "can say what he wants, but it's not
correct.'
MacMichael said there has been a "pattern in the same three years of the
administration continuing to charge that Nicaragua does it and Nicaragua
continuing to deny that it does it. It seems to me that it's incumbent upon the
person who brings the charge to bring forth the evidence.' '
MacMichael, who was employed from 1981 to 1983 by the CIA, said he put out
a report while working as an agency analyst that said the extent of the arms
flow to El Salvador has been misrepresented by the administration ' 'to justify
its efforts to overthrow the Nicaraguan government. "
But the report was never circulated within the Central Intelligence
.Agency and his contract was subsequently not renewed, he said.
Reagan has spoken of a massive flow of Soviet-bloc arms from Nicaragua to
justify U.S. aid to anti-Sandinista rebels, but Congress is holding up his
request for $21 million in emergency assistance for the CIA -backed guerrillas.
CIA Director Casey told reporters at an American Stock Exchange conference
Tuesday that MacMichael "was a contract employee for a short period of time,-'
whose relationship was severed maybe a year ago.
CDnffnucd
Approved For Release 2005/11/28 : CIA-RDP91-00901 R000400030001-3
 Approved For Release 2005/A4RM1LT RDR93gJ0901
13 June 1984
BY ED McCULLOUGH
WASHINGTON
The Senate Intelligence Committee never has been given "conclusive
information" to back up the Reagan administration's charge that Nicaragua is
sending arms to El Salvador, committee vice chairman Daniel Patrick Moynihan,
D-N.Y., said Wednesday.
The issue was raised this week when a former analyst for-the Central
Intelligence .agency, David MacMichael, said such claims are based on
outdated information, and that administration officials are misleading Congress.
"The intelligence committee has not been presented with any conclusive
information on the subject," Moynihan said.
State Department and CIA officials have rejected MacMichael's claims, but
have not released evidence that arms flows are continuing.
"The federal intelligence agency has an obligation to answer Mr. MacMichael
with facts," Moynihan said.
MacMichael, 56, produced intelligence estimates on Central America for the
CIA's National Intelligence Council under a two-year contract through March
1983. The contract was not renewed.
Moynihan has supported the use of U.S. funds to arm the rebels who are
attempting to overthrow Nicaragua's government. He has based his support on the
premise that Nicaragua is a threat to other Central American governments.
The committee said the panel had evidence that convinced him the limit had
been exceeded by charging expenses of the mining to an a considered poor.
Moynihan declined to give his assessment of the prospects of continued U.S. aid
for the rebels.
?"Let?me just leave it there, will you? This may all break out pretty quickly
now," he said. "It's awful ... not knowing what you really responsibly can say."
The Senate and House intelligence committees monitor the activities of the
country's intelligence agencies. Moynihan offered to resign his vice
chairmanship over a flap with the CIA last April, when he accused agency
officials of withholding information about their role in the mining of
Nicaragua's harbors.
That incident led to a new oversight agreement that he said was signed last
Thursday by CIA Director William Casey, committee chairman Barry Goldwater,
R-Ariz., and himself.
"The key to it is? If the president must approve (a CIA action), the
committee must be informed," Moynihan said.
"In terms of congressional oversight ... it's the most important event since
the Intelligence Act of 1980," he said. "We have a set of rules now which put
into a specific routine the' requirement of the statute that we be kept currently
informed of. any 'significant anticipated activity.'
.Approved For Release 2005/11/28 : CIA-RDP91-00901 R000400030601-3
 Approved For Release 2@ i i YR8W_066iC6000 j
STAT
Remarkable Remarks
Following his address to the second National Conference on
the Dislocated Worker, U.S. Steel Chairman David Roderick
says he rejected a bid by Chicago Cardinal Joseph Bernardin
to save the South Works steel plant:
"Now the cardinal asked me,/Why can't we keep it going
longer even though we might suffer some minor losses?'
Well, we kept it going for $324 million in losses. ... We are
not a welfare agency. In a corporation, the surest way to
destroy jobs for everybody is to sit there and try to operate
something that in effect is not competitive in the market-
place."
In a speech to an American Stock Exchange meeting at the
State Department in Washington, CiO Director William Casey
calls for more effective use of investment to block Soviet
expansion in underdeveloped nations:
We have to find a way to mobilize and use more effectively
our greatest asset in the Third World, which is private
business ... The Soviets are helpless to compete with this
private capital and this advanced technology that we can
make available."
Approved For Release 2005/11/28 : CIA-RDP91-00901 R000400030001-3
 WIV$ proved For Rel,~un~e1CIA-RDP91-009
ONTPICLE AGE A_
Arms Con trol: Election-Year. Press ure
By HEDRICK SMITH
Special to TbiNewYork Timm
WASHINGTON, June 12 -- For
months, President Reagan has kept the
issue of arms control largely on the
political sidelines by arguing that it
was the Soviet Union that walked out of
the nuclear arms negotiations last
November and is still
blocking their resumption.
News But suddenly today,
Analysis with the President just
back from his European Moreover, the debate is expected to
trip and Democrats no ? broaden to other arms control issues
j longer preoccupied with Presidential later this week as the. Senate takes un
i
pr
maries, it is apparent that he will other provisions of the military author-
have more trouble now in fending off ization bill and the Democratic Party's
pressure from both Republicans and platform committee works through for-
Democrats for some move to break out eig i policy issues in a separate forum.
of the diplomatic stalemate with Mos- 'This Is Arms Control Year'
cow. Democrats like Senator Sam Nunn of
Mr. Reagan's political election p year, Democrats uloeraeility ty sense Georgia assert that most of the major
arms control, and dtical some e Congressional al amendments that have been ro ed
revolve around arms control rues
Republicans worry that they, too, could be hurt if such as curbing development of antisa-
pear c the White enHouse ough. does Beyond not cep that, tellite weapons, reducing planned de-
igns of liatory both eh pa as. ies express , ployment of MX missiles, limiting
growing unease i politicians
uat relack f some top- President Reagan's request for financ-
level contacts reduce the risks of in research on a strategic defense sys-
confrontation the Kremlin. risks of tem and a resolution endorsing the 19
confrontation with th 72
An important political symptom of strategic arms control agreement.
growing impatience came in a com- "This is arms control year," Repre-
mencement address at Dartmouth Col- sentative Les Aspin, Democrat of Wis-
lege Sunday from Howard H. Baker consin, told several hundred executives
Jr., the Senate majority leader, who at a conference sponsored by the
called for a Soviet-American summit American Stock Exchange. "Every-
meeting this year or next. "Direct, body is for arms control. We have more
regular, genuine, face-to-face, give- arms control amendments on this bill
an d-take communications between the than defense amendments. There is a
two most powerful people on earth is an very, very strong interest in arms con-
imperative of our perilous time," he trol?',
declared. For many Democrats, the focus on
An Appeal to the President arms control represents something
they have wanted to use to challenge
Today, reinforced by Senator President Reagan for months but have
Charles H. Percy, the chairman of the
Foreign Relations Committee, Senator
Baker made his appeal for regular
Soviet-American summit meetings di-
rectly to Mr. Reagan, who has declined
to engage in any summit encounter un-
less it is well prepared in advance and
holds sure promise of success.
Acknowledging that he had now
shifted away from the White House
view, Mr. Baker told reporters today
.that Soviet-American relations had be-
come so tense that American condi-
tions for a summit meeting should be
relaxed. "When you have changed cir-
cumstances," he said, "you ought to
change your strategy."
on Reagan
In a parallel development, the Senate
went behind closed doors to debate a
move by Democrats and some Republi-
can moderates to link money for test-
ing American antisatellite weapons to
a requirement that President Reagan
make an immediate effort to open ne-
gotiations with the Soviet Union on ban-
ning or imposing strict limits on such
nedy and Johnson, 'Mr. Manatt as-
serted that the Democratic Party was
"united in policy and in dedication to
act to halt the dangerous provocation of
defensive weapons in space."
With public opinion polls showing
majorities in favor of arms control
measures, some Republicans 'facing
re-election say they have felt they j
could be damaged politically it the pub-
lic becomes too frustrated with the
present diplomatic stalemate and
blames the Reagan White House.
Reagan-Trudeau Exchange
Beyond that, aides to Senator Baker
suggested, Republicans as well as
Democrats in Congress shared the pub-
lic uneasiness about the' hardening
stalemate with Moscow and the lack of
high-level contact, though politicians in
both parties blame what Zbigniew
Brzezinski, national security adviser to
President Carter, called "the neo-
Stalinist leadership" now ruling in
Moscow.
So far, neither the President nor
other top Administration spokesmen
show any signs of relenting. At the re-
cent -Western economic conference in
London, Mr. Reagan reacted rather
testily to urging from Prime Minister
Pierre Elliott Trudeau of Canada that
something more be done to promote
better relations with the Soviet Union
and to get arms talks going again. .
Today, Defense Secretary Caspar W.
Weinberger urged the reversal of a ban
on ? testing of antisatellite weapons
voted last month by the House of Rep-
resentatives, contending it would put
the United States at "a very consider;
able disadvantage" because Moscow
ons ' A:.
has already tested such wea
p
ca a
th
the right moment.
' ., " "
Soviets have has the capability of, iii ef-
Manatt Accuses Reagan fect, Putting out our national eyes," lie
said.
With the Presidential election now Another wan-ling of the dangers 'Of
less than five months away, the heat of s~-
wfinccan wen rs d
yef
the primary battles over and Walter. F. meet came I rom William `sey.:I7
Mondale an outspoken advocate of rector of Central Intellignce, who saiSi
regular summit meetings and a nu- .in a speech t_-hatJthere were "alarutirlg
clear freeze, the military authorization signs" of Soviet radar d@ploypgemts:g3W
bill now before the Senate has given![ iestin _ of interceptors that would g y
at a news conference this morning by treaty limiting missile defenses.
Charles T. Manatt, the Democratic ' In short, the Administration meets
Party chairman, who accused Presi- its critics with the argument that On,
dent Reagan of the "radically provoca- tisatellite weapons and space-based de.
five" step of having "precipitously fenses must be developed to prevent
committed America to prepare for war falling behind. Politically, the White
in space" with his request for financing House is content to argue that Amen-
research on a space-based defense. cans must have enough stamina and
With similar statements from Mr. patience to wait out what officials call
Mondale, Senator Gary Hart, the Rev. Moscow's current diplomatic "hiibei-
Jesse Jackson, former Ambassador W. nation" without offering the Kremlin
Averell Harriman and Jerome B. Weis- unwarranted concessions.
I ner, science adviser to Preside tsKe
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 ARTICLE A proved For Relent 231 k/S+CIA-RDP91-00901
ON PAGE --Z-S 13 June 198l
__
C~ntro7CIAT.
ouse Panel to Seek ,Stringent
By MARTINTOLCHIN
SpedeltolbeNewY 1nee
;of the House Select Committee on Intel-
ligence said today that they planned to
Tess for stringent legislation that
d require the Central Intelligence
cy to inform Congress. of a broad
grange of covert activities.
. he House Intelligence Committee
T
staff has recommended a nine-point
:plan that far exceeds the agreement
;signed last week between William J.
tee leaders said they might also seek Representative Norman-Y' Min-eta,
such h memorandum of understanding, i Democrat of California, who is also a
but one that exceeded the Senate-C.I.A. senior member of the committee, said,
agreement. "It would be very helpful if there were
Under the current law, the agency is some standardized, stricter reporting
required to keep "fully and requirements placed on the C.I.A."
currently informed? "significant an- The committee staff report, which i
ticipated Intelligence activities." was classified until Monday, recom-
According to the staff report, "Clear- mended that the agency be required to i
ly, the committee's concept of what is notify the committee of any activity ap-
'significant' has not been shared by key proved by the President. This recom-
intelligence officials." mendation was the crux of the agree-
The Senate Intelligence Committee
complained recently about nCoto being in-
formed of the agency's role in the
ing of the Nicaraguan harbors, and the
; House Intelligence Committee said
that the agency had failed to provide
notification of its role in the Salvadoran
elections.
Representative Lee H. Hamilton,
Democrat of Indiana, said in an inter-
view that he and Edward P. Boland,
Democrat of Massachusetts, planned
to offer a package of legislation in-
tended to place strict controls on the
agency
Mr. Hamilton, a senior committee
member, has been desigrhted by Rep-
resentative Thomas P. O'Neill Jr., the
Speaker of the House, to succeed Mr.
Boland as chairman of the Intellieence
Committee at the end of the current I toe be notified of the use of C.I.A. staff
session, !'or contract employees or "unilaterally
'A Certain Set of Mind'
"You have a certain set of mind in
the C.I.A. unlike any other I've encoun-
tered in the bureaucracy," Mr. Hamil-
ton said.
He said that although the legislation
was needed, "the problem is attitudi-
nal, not legal."
"If you have a spirit of consultation
and they look upon the Congress as
partners and not an adversary," be
said, "these problems won't arise."
The legislation was initially proposed
by Representative Wyche Fowler Jr.,
-Democrat of Georgia, who said it en-
joyed some bipartisan support because
experience had shown "that the legal
apparatus is inadequate." ,
ment between Mr. Casey and the Sen-
ate Intelligence Committee. \~
In addition, the House committee
staff recommended that the committee
be notified on these matters:
IAny transfer of United States mili-
tary equipment that could alter the na-
ture of American relations with the re-
civient country.
9Tbe use of any means, speciticatty
including but not limited to the employ-
ment of force, that departs from the
scope of the program putting into effect
a covert action finding.
Material changes in the objectives
of a covert action program.
9The use of United States military
personnel or equipment or other non-
C.I.A. personnel or equipment in cov-
ert action programs.
controlled U.S. persons or foreign na-
tionals in the support or conduct of
paramilitary operations."
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STAT
STAT
 ARTICLE APPEAR roved For Releli 2 11i/21 EMIA-RDP91-00901 R00040
ON PAGE 12 June 1934
WASHINGTON TALK
Briefing
The Sporkin Nomination
AJudicial screening committee of
senior officials at the Justice
Department and the White
House has recommended that Presi-
dent Reagan nominate Stanley Spor-
kin, general counsel of the Central In-
telligence Agency, to a seat on the
Federal District Court for the District
of Columbia. The nomination is on
track despite the opposition of some
conservatives and members of the
business community who remember
Mr. Sporidn as a tough enforcer of se.
cuiities laws when be was chairman
of the Securities and Exchange Com-
mission in the mid-1970's.
Mr. Sporkin, it turns out, has a
powerful ally in his bid for the judge-
ship. William J. Casey, Director of
the C.I.A., has spoken directly to the
President in behalf of his longtime
friend. His high regard for Mr. Spor-
kin is understandable. In the fall of
1972, Mr. Casey, then chairman of the
S.E.C., followed the advice of Mr.
Sporkin, an agency enforcement offi-
cial at the time, and rebuffed re-
peated pressures from the Nixon
White House to slow a sensitive inves-
tigation into the business dealings of
Robert L. Vesco, the financier who
later became a fugitive.
Phil Galley
Marjorie Hunter
STAT
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 Approved For Release -P8~~Oki_&96~mo~
How covert is too cover:
The most bothersome part of President Rea-
-gan's reorganization of the decision-making
'group that proposes and considers covert opera-
tions is its underlying intent. As the New York
`Times reported recently, the public rationale was
a need to promote secrecy, which is a reasonable
one. Covert operations have, at times, been ham-
..strung by information leaks that jeopardized both
their utility and their security.
But the effect of reorganizing the oversight
group into a tight, high-ranking cadre of presi-
dential appointees and White House staffers has
been of far greater impact. Since the Carter
;,administration, the number of ongoing covert
operations has increased fivefold, and many of
the new operations have been engendered without
the benefit of expert advice-without career
diplomats and policy-makers to debate, in real
terms, the positive and negative aspects of any
given operation. The president's plan, apparently,
vas to reduce the number of people telling him
why an action should not or could not be done.
The president deserves wide latitude in
determining what covert actions are essential to
;national security. But it is a dangerous proposi-
ion for the president to shield himself from nay-
sayers. If it is true, as some ranking officials
suggest, that CIA Director William Casey consis-
tently advocates clandestine operations, and if it
is true also that Reagan and his staffers are
"fascinated" by covert operations and confused
by intricate diplomatic assessments, then it also
is true that their enthusiasm may dilute the credi-
bility of the CIA with regard to clandestine acti-
vities.
The White House is right to be concerned
about security leaks, but wrong to be so con-
cerned that administration experts are excluded
from the process of assessing and implementing
clandestine proposals. Indeed, the risk is com-
pounded by the extreme security measures even
within the group. Working proposals are not
submitted to members prior to the meeting, and
because the president frequently makes his deci-
sion on the spot, not even his carefully selected
advisers have the luxury of thinking about the
wisdom of the proposal in advance.
The purpose of working groups to study pro-
posals for clandestine operations is to avoid the
grievous intelligence slips that have haunted
other administrations, from Iran to the Bay of
Pigs. Reagan's desire to circumvent opposition to
various proposals heightens the risk of re-enact-
ing those debacles.
STAT
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 Approved For ReleasWW1~s dMT-MWI866'14000400030001-3
CASEY
WASHINGTON
._STAT
DESI 1101fiv PRI 'ATE Bi3S 1i1ESS AS ' 0ilit I;REATESI'
RSSET IN THE THIRD -lt: RLO"} C[ FL DIRECTOR tt I LL IRN CASE.' CALLED TUESDAY
FOR MORE EFFECTIVE USE OF MIES'i PEEN T TO BLOCK SOVIET EXPfitIS IOf IN
UftUEit-DEVELOPED t AT IONS .
IN R SFEEtH TO Rt fiitERICfltt STOCK ERCHRLGE ttEETItil AI' .THE STATE
i3i.:t'FIRTHEPLTi CRSEV Sftf Ct: "ME HLT'4E I0 FIk:C' R wt~t'i 'Ili MOBILIZE Atl Ct t1:;E
BORE EFFECTIVELY OUR GREATEST ASSET Its THE TH I [:C' u0RLD i i H ICti IS
PR1Yft E BUSINESS.'
HE SR 11D THE LENS-DEVELOPED +:OUHTR1ES 'siEED IFWESrflEIIT ft u YttO[ --Ht;1R
FROM OUR COUNTRY.* OUR MOTO ALLIES, JAPRt ARi:' I]'IHEA DVt FtliC: COWiRiES
OF OSIA ffiCt Lt$ I IH RrlEMA."
'THE SOVIETS ARE HELPLESS 10 COnPETE wI'IH THIS PRI VfITE CAPITAL Rui
THE'-:'g ROVANCE.O TECHHULOCW THATE : i t1RKE AVA ILAELE " HE SAID.
' [NVESt TINT N THE VEY TO E C DRL-11 I'll IC SUCCESS [ THE 't HfRct W111-ILU. t` CASES
SRiDl
i:}i5E tutiO SELDOM tlf .. z ii `S~ C A' ' LE V 1 H E L L .r ti! ': S- it r`4t-LltFEL
:'t 1?.E::~ .? i' t. w ls L
t
hA 111fNS OF THE W0M ''NE PRIM INAL u.3.- O`+`II:?I 21II LEtiRODUth FOR
EA t 11 CUNE 0 11 I uAOEU t HRI I HE t;ti i i LE BE F Ow ii T 0111 t`t1Jt-i~i I L I i ARY
V TERMS
.
`'t.w THE LITh[i RUN, ECUtilif i.Ci F iNAfiLLALt SC IC-Cl 1FICi TECHIU 1CAL Atti1
CUL1Ui::AL EXCHHNIjES H?i tRfiCt fH i CIAif'iHIN CLOSE REL61IONSHL"PS WITH
THOSE THIRD WORLD 1.OUMIR ES FAR l'CRE EFFECFIVEL` 'IHhfi MIERELV RILITAR''
SUPP119 t 3 " CRSL' SHitl. ' t HE KREMLIN CHMH'HU I COMPETE 'in THESE AREAS..!
C ASEY ALSO 11fiD1CR11'ECt THAT IIOAE CORK IS t EEI3ED TO KEEP THE S[IIJ3.k:I' s
it`fIi tlvht?s I tit.S
rI#13tT1 RCO.UIRING U.S. TECHNOLOGY. HE RE ERRED TO ESLItk I. 1t
ILLEGAL SUIL INS i OF tHELR Ci'It+1AuILIIV1 Hktl:Iii'?i WHICH Kit, t.t1.1-ti
.'
W ITii OUR 01411 TECiiNGL00V AnD OUR 0k N RESEPJ CH A1tIt OE'4, ELUP,hE10'
SH't'1f`iG U.S. 11N1 ELLt1aEt 1.t HAS HAD 'A FAIR tiUl6,E,ER: Ijt- SUCCE SES'
t RU TRA t ISO H t I'Lflt' i S I I.I STEAL ArtER I I.ti11 t Et;tt} 1.~L1113't` 1 CASE V i`.l t 1:11111_U 16
N1.IOEN T S OVER THE POST YEAR wHEt1 WEST GERi RN AND SwEC' I Sii CUSimS
OFFICIALS SEIZED SE.IERRL KNFmCE0 CUtiPUlEM%S tlfltt :3t1 TOn;S OF RELAIIED
LOU 01IIEn t .
CASEY SKID THE E0U IPtiEttt AS BEING SttUOLLEC' TO THE SOVIET UNION BY
"A NOTORIOUS ILLEORL TRFtt't:R AHED KILLER." "wE CAUGHT THA T s " HE SAW, "F'-UT 'THIS' WAl O LY THE TOP OF THE
ICEBERG. OUR EVIDENCE SHINS' 'tHFt1 Tnw H Lt iiGER Isuuni ITIES 1-11-- LurrPUI'LnS
RND ELE C t .1+t I1. I- OlPtli:t#T Ht't I E BEEN, SUi,Ot,.~`:~f 1. Li_f 0 IVER-'ED TO tit:
U.S.S.R. THROUGH H E fi TI'I'I i IES OF I HE ruLLER FIP.Tii O IHERS LIKE ET+
FIND WESTERN t'tfittUFACTllRER:S WHO HAVE E" h` t t4I t H i HESE OOU T t i t:3."
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 Approved For Release 2005/11/28 : CIA-RDP91-00901R0004
Translation of article in 10 June 19.:4 issue of DIE wEL;.'L t,I,1 3
A leading official of the CIA of many years' standing examint2 s
future of tIe American intelligence service..
THE 'HISTORIC CH04CE OF 1qILLI }1 J. CASEY
STAT
For thirty-five years the author of the following article was a member of the U.S.
intelligence service. He last held leading positions in Asia (Vietnam until 1975),
Latin America and Europe. Currently he advises private enterprises and t he U.S.
Government.
By Tom Polgar
.4ashington.
The mining of Nicaraguan harbors has moved the covert operations of the Central
Intelligence Agency (CIA) again into the focal point of public attention.
Covert operations are nothing new in history, in fact they are as old as history.
The current activities in Central America are, however, unusual that is in the sense
that secret military actions against souvereign natiobs are being pursued as part of
national policy and admitted-to by high-ranking representatives of the T.S. Goverbment.
In an interview with DIE WMT A i SOII TAG (see issue of 6 May 1984) Jeane Kirkpatrick,
U.S. Ambassador to the United Nations, stated very openly that the U.S. ~:as usin; covert
activities to support m$asures against the goverbment of Nicaraoaa. This was done to
avoid a legislative conflict which could result were the president to request a declaratic
of wax.
President Reagan's security adviser, Robert McFarlane, declared on 13 May 1984 in
a television interview that oovert actions were increasingly necessary to afford the
United States an alternative to war or doing nothing. In other words, a t'.jird option.
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 Approved For Release 2005/11/28: CIA-RDP91-009011 0Td0
4y + t : ~'.: Y
,"TIN F MNi ET 0 TIT tF
AFGHANISTAN
Caravans on Moonless Nights
How the CIA supports and supplies the anti-Soviet gue
T he Soviet army's seventh and most
punishing assault on Afghanistan's
Panjshir Valley this spring was in many
respects an exercise in frustration. Mos-
cow was determined to bring down Ah-
mad Shah Massoud, 30, a resourceful
leader of the mujahedin. who have been
defying the Soviets ever since they invad-
ed the country in 1979. But only five days
before the beginning of the Soviet opera-
tion, code-named Goodbye Massoucl, the
mujahedin commander suddenly slipped
away from his headquarters and went into
hiding. The following week the Soviets
claimed Massoud was dead. Within
hours, the rebel leader's voice crackled
over the Soviet army's secret radio net-
work, accurately describing the weather,
the Soviet positions and their casualties
that day. Meanwhile, in whatever direc-
tion Soviet tanks turned, they ran across
rebel-laid land mines. According to West-
ern diplomats in the Afghan capital of
Kabul, casualties were so high that grave-
diggers at the local cemetery worked
overtime to bury up to 40 soldiers a day.
The mujahedin had some special help
that enabled them to resist the formidable
assault so well. Three weeks before the
Soviet tanks began to roll, American spy
satellites detected movements that al-
]owed agents to warn the rebels of the im-
pending attack. Massoud's radio perfor-
mance was made possible by the use of
more than 40 CIA-supplied portable
transmitters. In response to a specific re-
quest from Massoud. the CIA also ar-
ranged to send hundreds of land mines by
plane, ship, truck, camel and pony across
three continents and through several in-
termediaries, so that they got into rebel
hands just before Goodbye Massoud be-
gan. Says a Western diplomat: "Nothing
would make the Soviets happier than
breaking the back of the CIA pipeline in
Afghanistan."
The thwarting of Goodbye Massoud
was the most recent, and perhaps the
most daring, success of the CIA's opera-
tion to assist the embattled guerrillas.
Like most of the world, the U.S. was out-
raged when the Soviets invaded Afghani-
stan and proceeded to transform it into a
puppet state. That shock, together with
widespread sympathy for the mujahedin,
has not abated as Moscow has tried to
consolidate its tenuous control over the
nation by resorting to carpet bombing,
chemical warfare and outright massacre
took credit for setting up the arms flow to
the Afghan rebels in 1979. Shortly before
his death in 1981, Egyptian President
Anwar Sadat acknowledged that the U.S.
was using Egypt to ship weapons to Af-
ghanistan. During a visit to Pakistan last
year, Secretary of State George Shultz
went so far as to tell several thousand Af-
ghan refugees. "You fight valiantly, and
your spirit inspires the world. I want you
to know that you do not fight alone. I can
assure you that the United States has.
does and will continue to stand with you."
Sources in Asia, the Middle East and the
U.S. have given TIME some details of how
the aid pipeline works. Used selectively,
the information sheds light on this opera-
tion without exposing individuals and
organizations.
The CIA spends around $75 million a
year supplying the rebels with grenades.
RPG-7 rocket launchers and portable sur-
face-to-air missiles. as well as with radio
equipment and medicines. Although the
guerrillas have their own stock of rifles.
which they replenish with weapons cap-
tured during ambushes or taken from the
Soviet dead. the CIA sends ammunition
for AK-47s. together with machine guns
and sophisticated snipers' rifles. Ship-
ments of these goods arrive every few
days. sometimes in the arms of messen-
gers. but most often on caravans that
travel on moonless nights to evade the
powerful searchlights of low-flying Soviet
helicopters. As a senior Western military
attache told TIME. "Getting the material
they need in to the mujahedin must be
one of the most hazardous and difficult
supply tasks ever undertaken in modern
military history."
Politically the CIA's main challenge
has been to avoid linking its operation to
the government of Pakistani President
Zia ul-Haq. Burdened by the inflow of
more than 3 million Afghan refugees, Zia
has actively tried to negotiate a settle- i
ment to the war in the face of Soviet in-
transigence. He has also repeatedly de-
nied Soviet charges that his country was
directly supplying the Afghan rebels in
any way. Evidence to the contrary would
not only compromise the talks, which are
being conducted through the United Na-
tions, but could even give the Soviets a
pretext for moving into Pakistan's North-
West Frontier province. "We're going to
keep Zia's hands clean," CIA Director
William Casey told a top aide early on.
Says a senior intelligence official: "Ideal-
S
the
i
t
f
i
li
o
ex
s
ence o
a CIA p
pe
ne to
the mujahedin has long been an open se- ly, the pipeline had to be invisible, pass-
ing through Pakistan without the Paki-
a result, much of the operation is handled
with the help of Saudi Arabia. which
grows increasingly alarmed as Soviet
airbases draw ever closer to its oilfields.
The Saudis' support for the guerrillas is
by no means covert: only six weeks ago.
Crown Prince Abdullah encouragingly
assured Afghan refugees in Pakistan.
"Your struggle is a jihad [holy war) be-
cause you have taken up arms in defense
of Islam. We will continue to assist you as
we did in the past. We will always remain
on your side."
The CIA pipeline to the guerrillas.
initiated by the Carter Administration,
was stepped up by Casey soon after Presi-
dent Reagan's election. The new director
wasted no time in ordering his station
chiefs in Europe to look for Afghan exiles
who might make good recruits. The CIA
men began by poring over lists of students
and teachers, compiling dossiers on likely
candidates and placing them under sur-
veillance. Those who seemed thoroughly
reliable and unquestionably pro-
mujahedin received casual invitations to
lunch from a visiting American professor.
or a priest. perhaps. or even a Saudi busi-
nessman. All were undercover CIA agents.
While the CIA was recruiting some 50
such Afghans in Europe, it was also, with
help from the FBI. gathering a similar
group in the U.S. Though most of the re-
cruits were students. one was a Manhat-
tan taxi driver. another a millworker
from Ohio, a third a judo instructor from
the Southwest.
For nine months. the 100 Afghans
underwent training at CIA schools
around the U.S.. where they learned
about shipping. running travel agencies
and sending large containers overseas. At
last, in the spring of 1982, Casey sent
his fresh graduates into the field, armed
with code names. passports and generous
subsidies.
Some 30 Afghan agents took up posi-
tions in Saudi Arabia, working for small
companies that handled the shipment of
cargo to Asia. There they were put in
ContinQed
cret. President Carter s a
1j ~eleas*2Nfg$4lt26tJlCIA4WPgrr-00061ROO0400030001-3
Adviser, Zbigniew Brie` f( ',? 5I icf
 ARTICLE APPEAR proved For ReleasOg2ft-RDP91-00901R00400030001-3
ON PAGE 11 June 19$4
In From the? Cold and Hot for Truth
By PHILIP TAUBMAN
Spedal to The New York Times
WASHINGTON, June ? 10 - A year
ago David C. MacMichael worked for
the Central Intelligence Agency ana-
lyzing political and military develop.
ments in Central America. Two
months ago, Mr. MacMichael, no
longer a Government employee,
marched in front of the United States
Embassy in Managua, Nicaragua, to
protest C.I.A. support of rebels op-
posed to the Sandinista regime.
Mr. MacMichaei's metamorphosis,
the sort that intelligence officials
dread, has led him to challenge one of
the foundations of the Reagan Admin-
istration's Policy in Central America:
,the assumption that Nicaragua is
spoiling to export revolution to its
neighbors.
"The whole picture that the Admin-
istration has presented of Salvadoran
insurgent operations being planned,
directed and supplied from Nicara-
gua is simply not true," he said in re-
cent interviews. "There has not been
a successful interdiction, or a verified
report, of arms moving from Nicara-
gua to El Salvador since April 1981."
The First Defection in Years
Mr. MacMichael, the first C.I.A.
analyst in recent years to make a
public break with the agency, said
that before he left the C.I.A. last July
he had access to the most sensitive in-
telligence about Nicaragua, including
arms shipments to El Salvador.
Based on that, he said, he concluded
that "the Administration and the
C.I.A. have systematically misrepre-
sented Nicaraguan involvement in
the supply of arms to Salvadoran
guerrillas to justify its efforts to over-
throw the Nicaraguan Government."
The charge, like the accusation that
American commanders in Vietnam
distorted data about the numbers of
`lthe enemy's forces, is likely to pro-
voke more heated debate. Since the
Administration began focusing atten-
tion on Central America in 1981, Con-
gress has questioned giving funds to
the C.I.A. for support of Nicaraguan
rebels. At first it asked whether the
United States was indirectly trying to
overthrow the Sandinista Govern-
ment. But, after disclosures about
C.I.A. roles in the mining of Nicara-
guan harbors and other questions in-
volving the verification of arms ship-
ments, the debate has become a ques-
tion of whether the United States
should support the rebels at all. The
House has voted twice in the last year
to cut off aid to the rebels.
'From the Soviet Bloc"
In his nationally televised speech
on Central America in May. Presi-
The New York Times/George Tames
David C. MacMichael, a former Central Intelligence Agency analyst.
dent Reagan said: "Weapons, sup- "It is true we do not have ship-
li
d f
p
es an
unds are shipped from the
Soviet bloc to Cuba, from Cuba to
Nicaragua, from Nicaragua to the
Salvadoran guerrillas. These facts
were confirmed last year by the .
House intelligence committee."
The committee, which suggested
the United States no longer support
. " Nicaraguan rebels as a way to stop
the arms shipments, said in a report
that "a major portion of the arms and
other material sent by Cuba and other
Communist countries to the Salvado-
ran. insurgents transits Nicaragua
with
the S diinnis-ttss.""ion and assistance of
Well aware that the weight of offi-
cial
opinion runs contrary to his oon-
tentions, Mr. MacMichael insisted
that the House report and Mr. Rea-
gan's comments were based on old in-
telligence information.
While it is impossible independ-
ently to verify Mr. MacMichael's ac-
count, both Administration officials
and members of Congress familiar
with Intelligence data on Nicaragua
suggested that the issue of arms ship-
ments to El Salvador was susceptible
to differing; interpretations.
ments we have interdicted," one in-
telligence official said. "But we do
have numerous sightings, we do have
intelligence showing beyond question
flights at night by small, unmarked
planes from Nicaragua to EI Salva-
dor, and we have tracked boats cross-
ing the Gulf of Fonseca. We know
from monitoring radio communica-
tions that these planes and boats
carry weapons."
'It's Hard to Believe'
Mr. MacMichael argues that such
intelligence information falls short of
definitive proof. "It's hard to believe,
if we know so much about all these
shipments, that we haven't been able
to capture one plane or boat," he said.
"It's even hard to believe that in the
last two years one of the planes hasn't
crashed or one crate of guns hasn't
been dropped mistakenly into a tree.".
W&M
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ON PAGE 8 June 1984
Casey agrees
to notify panel
of CIA plans,
As3bdated Treq - i
WASHINGTON - The Senate intel-
ligence committee said yesterday
that CIA Director William J. Casey
had agreed to give the committee
prior notice of significant intelli-
gence activities, in the hope of avoid-
ing a repetition of the recent furor
over CIA-backed Mining of Nicara-
guan harbors.
A three-paragraph announcement
said agreement was reached at a
closed meeting Wednesday and was
designed to ensure compliance with
a law requiring that the House and
Senate panels be kept "fully and cur-
rently informed" of all intelligence
actitivites including "any significant
anticipated intelligence activity."
It did not give details of the agree-
ment.
"This is an important development
which should reduce the chances for
a repetition of the kind of problem
and misunderstanding which was re-
cently encountered in this area," the
annnouncement said.
After the committee learned in
April of the CIA's role in the mining
of Nicaraguan harbors, chairman
Barry Goldwater, (R., Ariz.), wrote
an angry letter to Casey, and Sen.
Daniel Patrick Moynihan (D., N.Y.)
threatened to resign.as vice chair-
man. Both said the committee had
not been kept informed.
Moynihan withdrew his resigna-
tion after a meeting of committee.
members with Casey, at which the
CIA director agreed to work with the
panel on new procedures.
STAT
Approved For Release 2005/11/28 : CIA-RDP91-00901 R000400030001-3
 ARTICLE APFEAJpproved For Relesu~'8-8IA'hD~91-00901R0004
M arc Cooper
Weekly: The most recent issue of your
magazine disputes the Reagan administra-
tion claim that the U.S. had no in-
telligence operatives in Grenada before
the time of the invasion. Do you continue
to stand by that claim ?
Schaap: Absolutely. It's enough to just
look at some of the statements from the
new interim government. We know for a
fact that there were many CIA agents on
Grenada for a long time prior to the inva-
sion. Newsweek reported that one of the
agents worked at the medical school. The
New York Times ran a piece on a secret
meeting between CIA Director William
.Casey and a group of senators, in which
Casey confirmed that a large number of
the CIA agents on the island were re-
moved during the flights that returned the
medical students to the United States.
Not only had the administration always
advertised its desire to get rid of the
Grenadian government, but in addition it
is a country that is very easy to infiltrate.
There were a number of retired Americans
living there. There were a thousand
students at the medical school.
Weekly: Do you think there may have
been some agents among the students?
Ray: We know so! In the Newsweek arti-
cle we mentioned one agent is named -
Jim Pfeister. And older medical students
told the other students that he had been a
U.S. consul in Laos during the Vietnam
War but had tired of the State Department
and wanted to learn a new profession. But
when the invasion happened the students
saw Pfeister using a walkie-talkie to ac-
tually direct the American troops.
Covert Action
Information Bulletin
he Covert Action Information
Bulletin is perhaps one of the
most important little magazines in
the country. It comes out. only two or
three, sometimes four times a year. It's
well laid-out but has no color and virtually
no advertising. Its circulation is well under
10,000. Its name is rarely mentioned on
the news, and other reporters make a
point of not attributing it as their source.
But it has so frightened the CIA that the
agency persuaded Congresto virtually
outlaw the magazine. The new law had the
opposite effect. Today, Coven Action In-
formation' Bulletin's circulation is larger
than ever before, in spite of the Agent
Identities Protection Act, which was in-
tended to knock the publication out of
existence.
The goal of the magazine is simple: to
relentlessly expose the activities of the
CIA, its affiliated organizations and its
operatives. Started just five years ago in
the apartment of its editors, The Bulletin
now occupies modest offices in
Washington D.C.'s National Press
Building. Not a day goes by in which one
or more major news organizations doesn't
call The Bulletin to get the "real story" on
this or that suspected operation or in-
dividual. And hardly ever does the
magazine get its due credit for helping out
the megabuck-backed Big Media that so
often relies on its help.
Two of the magazine's three editors, at-
torney William Schaap and writer Ellen
STAT
STAT
to the coup in Grenada, or can we assume
that the fall of the Bishop government was
strictly an internal division?
Ray: No, it's more complicated. In fact,
we have so far determined that Vice Presi-
dent George Bush was in the Barbados the
day after Bishop was killed. He was
meeting personally with Prime Minister
Tom Adams. It may be Bush was there
before, but we cannot yet document that.
But at that time Adams was already telling
reporters that Bush had proposed a so-
called rescue mission for Bishop, who had
been under house arrest.
Schaap: It seems very clear that the U.S.
and the CIA wanted Bishop killed. One of
the things we learned by studying Grenada
is that the four years of U.S. destabiliza-
tion attempts had not worked. From
Carter through Reagan they had tried
everything: economic pressure, media
campaigns, violent attacks, bombings -
but nothing had worked. It is clear that in
the early days of the Reagan administra-
tion it was decided to work toward the
direct overthrow of the government. They
had to invent an excuse that would justify
an invasion, and, of course, it also meant
that Bishop would have to be killed. We
know that the CIA had agents infiltrated
into the upper levels of the Grenadian Ar-
my and the ruling New Jewel Movement.
Weekly: How can you be certain of that?
Ray: I think a reading of the New Jewel
Central Committee documents seized by
the Pentagon will show that. Of course, of
Continued
Weekly: Is there any information to in-
y,
y
n
os
nge
es. They
spoke with the Weed pp>c~t ~~d lelRelease d /'F% `' &i-R65 9 t0`V?t5~600400030001-3
Ra
were recentl
i
L
A
l
 ARTICLE Al9- l+d For Release 2095=08TPQIliltfl P91-009(
ON PAGE 5, Sec. 1 8 June 19814
Senate panel tells CIA accord
From Chicago Tribune wires
WASHINGTON-In the latest
flare-up of congressional concern
about the CIA's covert activities in
Nicaragua, the House and-Senate
Intelligence Committees have Invited
Director. William Casey -to-answer
questions about whether the agency
has exceeded spending limits im-
posed by Congress.
The committees,' meeting sepa-
rately behind closed doors Wednes-
day, discussed charges that the Cen-
tral Intelligence 'Agency has gone
over the $24 million limit approved
by Congress for fiscal 1984 aid to
rebels fighting Nicaragua's Sandinis-
ta government, spokesmen for the
committees said.
Committee sources said Casey
would be -asked to appear early next
week.
On Thursday the Senate committee
said Casey had agreed to new pro-
cedures to give the ppanel prior notice
of significant intelligence activities,
in the hope of avoiding a ppee
of the recnt furor oer CIAAbacked
mining of Nicaraguan harbors.
The three-paragraph- announce-
ment said the agreement on covert
activities was designed to ensure
compliance with a law requiring that
the House and Senate panels be kept
"fully and currently informed" of all
intelligence actitivites including
"any significant anticipated intelli-
gence activity."
It did r)ot give details of the new
procedurds but said that the commit-
tee and the Executive Branch had
"agreed on several important propo-
sitions concerning the meaning of
this section" of the law.
On Wednesday, the Democratic-
controlled House committee and Re-
publican-controlled Senate commit.
tee appeared to disagree over the
accuracy of charges that fundshave
been overdrawn and that the agency
used unusual accounting practices.
The House committee staff con-
cluded that the agency did use unor-
thodox accounting to get around the
limit, according to the New York
Times.
THE SENATE COMMITTEE, how-
ever, "has no reason at this point to
believe anythin at all is wrong," a
spokesman said. A Senate leadership
aide said the dispute is "an ar-
gument between accountants," but
one member. of the Senate commit-
tee told the Times that "it had to be
so obvious that they were overspend-
ing when every month they said they -
were running out of funds."
STAT
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 A,AppO dA 4QWAe 2005/11 /28 : CIA-RDP91-00901 R00040
ON PAGE_,;,,,- CHRISTIAN SCIENCE MONITOR
8 June 1984
STAT
CIA chief faces questions
on anti-Sandinist funding
Washington
Congressional intelligence commit-
tees said Wednesday they will ques-
tion -CIA Director William Casey
about reports that his , agency
overspent its'S24 million 1984 budget
for anti-Sandinist . rebels in
Nicaragua.
Based on data generated by com-.
mittee staffs, members and aides said
questions have arisen about whether
the Central Intelligency Agency vio-
lated a strict spending limit imposed
by Congress last year.
"I don't think anyone has accused
the CIA of deliberately exceeding
that amount" but there are questions
about whether the CIA may have
overspent "inadvertently or negli-
gently," said Michael O'Neill, legal
counsel of the House committee.
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 Approved For Release 206i/?T@j`1491-00901 R0
ARTICLE APPEARED 8 June 1984
ON PAGE
Senate Panel
And CIA Agree
*n Notification
By John M. Goshko
and Charles R. Babcock
'* - Wuhhngton Poat8taft Wrt-en
'he Senate Select Committee
ort Intelligence and CIA Director
William J. Casey have agreed on
new procedures intended to en-
sure that, when the agency en-
gages in such major intelligence
actions as the recent mining of
Nicaraguan harbors, the commit-
tee will be fully and clearly in-
formed in advance.
Announcement. of the agree-
ment, intended to prevent repe-
tition of the controversy about
whether the panel had been told
of the mining, came as a House
subcommittee voted yesterday to
deny President Reagan's request
for an additional $117 million in
military aid for El Salvador.
The House Appropriations sub-
committee on foreign operations
rejected Reagan's argument that
the money is needed to keep Sal-
vadoran troops supplied in their
fight against leftist guerrillas.
Instead, it voted to accept the
recommendation of subcommittee
Chairman Clarence D. Long (D-
Md.) that no further increase in
security assistance for El Salvador
be made in the current fiscal year
and that Reagan's requested pack-
age of $197.3 million in military
paid for Central America be cut to
$24.75 million.
The Senate intelligence panel
issued a three-paragraph announce-
ment about the agreement reached
Wednesday by Casey, committee
Chairman Barry Goldwater (R-
Ariz.) and Vice Chairman Daniel
Patrick Moynihan (D-N.Y.).
The announcement did not give
details. But committee sources
implied that the procedures are
designed to restrict 'severely
Casey's ability to be vague or se-
lective about what he tells the
committee concerning CIA oper-
ations. When the CIA's role in the
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