HOUSE CHAIRMAN BALKS AT ADMINISTRATION INFORMATION BILLS

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP91-00901R000400030002-2
• Release Decision: RIPPUB
• Original Classification: K
• Document Page Count: 111
• Document Creation Date: December 19, 2016
• Document Release Date: October 11, 2005
• Sequence Number: 2
• Publication Date: May 31, 1984
• Content Type: TRANS

Approved For Release 2005/141 Pb1-(%901 R
11 May 1984
HOUSE CHAIRMAN BALKS AT ADMINISTRATION INFORMATION BILLS
BY DAVID GOELLER
WASHINGTON
A key congressman is taking a "show-me" approach to two bills representing
the latest skirmish in the Reagan administration's battle to slow the flow of
government information to the public.
"Those who are- advocating change must prove their case," says Rep. Glenn
English, D-Okla., chairman of the House Government Operations information
subcommittee, which is considering the two bills to amend the Freedom of
Information Act (FOIA).
"The advocates of change have the responsibility to ... show that problems
exist, give good strong reasons. ... I have not heard testimony that would
justify significant change," English said in an interview.
The FOIA bills, part of a three-year administration effort that has included
a now-dormant proposal to make nearly half the federal workforce liable for lie
detector tests, passed the Republican-controlled Senate only after opponents
forced heavy rewriting.
One measure would allow the CIA to declare even more of its aupe -
files off-limits to citizen requests made under the The proposal has been
so reworked tha even the American Civil Liberties Union has stopped opposing
it.
The other bill, drawing a chorus of,opposition from publishers, editors and
public interest groups, seeks to make some 40 changes in the FOIA, which says
Americans have a general right to demand and receive information from
government.
The measure would extend from 10 days to 30 days the deadline by which
bureaucrats must acknowledge but not necessarily comply with an FOIA
request. For the first time, people seeking information would be charged the
cost of reviewing records, although fee waivers could be given to the news media
and non-profit groups.
Current law allows denial of FOIA requests if release of data would be an
unwarranted invasion of personal privacy. The proposed change would allow
withholding of information if an official believed release "could reasonably be
expected" to intrude on privacy.
The bill would also allow the Justice Department to shield more of its crime
records and permit businesses, not federal officials, to decide what data
supplied to the government will be subject to FOIA discovery.
Mark Sheehan, a Justice Department spokesman, says the bill is necessary to
recover the costs of processing tens of thousands of FOIA requests each year and
to ensure that sensitive law enforcement information is protected.
But critics contend the measure'is a step back from open government and that
teFOIA should be strengthened, not weakened.
SAT
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ARTICLE APPEAREA CHRISTIAN SCIENCE TIONITOR
ON PAGE ~I 31 May 1984
CIA covert action at what price?
By Stansfield Turner
ONGRESS faces an imminent decision on
C whether to continue funding the CIA's covert ac-
tivities in Central America. Over and above the
merits and demerits of the actions themselves, the Con-
gress should consider the potential impact of these activi-
ties on the CIA's future capabilities. I believe that con-
tinuation of whf.t is going on in Central America could
seriously damage the agency.
There are two dangers: that Congress may tighten its
controls over such activities unduly; and that the CIA,
which has rebounded nicely after suffering great criti-
cism following the Church committee's investigation of
1975-76, will be subjected to another buffeting.
Public attitudes toward the CIA are today being col-
ored by such reports as:
? A story in The Christian Science Monitor on May 8
charging that the CIA had helped organize, finance, and
train Salvadorean intelligence units that engaged in
"death squad" activities.
? A press release by Sen. Jesse Helms a few days
later accusing the CIA of covertly contributing funds to
the electoral campaign of Jose Napoleon Duarte for
president of El Salvador.
? A May 19 Washington Post story asserting that the
CIA attempted to circumvent congressional limitations
on covert-action funding for Central America by asking
the Saudi Arabians and Israelis to provide the money.
Accurate or not, these reports revive the distorted im-
age of the CIA as a "rogue elephant" which came out of
the Church committee,
The CIA should not have forgotten the serious dam-
age that criticism did. Whatever endangers public sup-
port for the CIA endangers the CIA.
It .should also be of significant concern to the CIA
when it and Congress have as sharp differences as they
have had in this instance. For example:
? In December 1982 Congress and the CIA were so
far apart that Congress passed an unclassified law re-
stricting these supposedly secret activities. With this
confirmation of supposedly covert operations, the CIA
could hardly continue them with any hope of secrecy.
? Last April the administration was forced to all but
confirm that the covert action had been expanded to the
mining of Nicaragua's harbors. Sen. Barry Goldwater,
chairman of the Senate's Select Committee on Intelli-
gence, complained bitterly that he had not been ade-
quately informed; CIA Director William Casey
apologized.
In this atmosphere Congress will likely legislate more
and more stringent rules governing the CIA. It has been
tightening its control over CIA covert activities since De-
cember of '74. Then the Congress required, through the
Hughes-Ryan Amendment," that the President notify it
"in a timely manner" of all covert actions. The Congress
was uneasy that "timely" might not be soon enough.. In
1980 it rewrote the law making it explicit that the Presi-
dent would notify it before the CIA's commencing any
covert action in all but the most exceptional
circumstances.
What the Congress has been saying to the President
and the CIA for 10 years, then, is something like: "We
are nervous about possible overuse of covert action. We
want you to proceed cautiously, preferably in consulta-
tion with us."
The next move by Congress could be to require that
the CIA obtain congressional approval for all covert ac-
tions, without exception. Such a move could impair the
CIA's capability to do covert actions. In my experience
several covert actions were highly desirable for the coun-
try, but could not have been undertaken if prior notifica-
tion of the Congress had been required. That is not be-
cause Congress is not trustworthy, but because it would
be unfair to ask individuals to risk their lives when more
than the absolute minimum number of people know what
they are doing.
Why has the administration accepted these several
risks to our long-term intelligence capabilities?.Because
it hopes this covert action will be so successful that ev-
eryone will cheer and forget the acrimony it has engen-
dered. That might have been the case in the World War II
days of the OSS, but not today when the country has cre-
ated a system of congressional committees on intelli-
gence to act as surrogates for the public in overseeing in-
telligence activities. It is a system that places restraints
on the executive department's use of the intelligence ap-
paratus, but in so doing brings intelligence as close to be-
ing part of our normal democratic process of government
as the inherent secrecy of intelligence permits.
Stansfield Turner is former director of the Central
Intelligence Agency.
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STAT
 CIA Director William J. Casey and his wife bought at least $1 million in
stocks and bonds last year and sold a similar amount in the nine months before
Casey established a blind trust for his holdings, according to his financial
disclosure statement released Thursday.
ASSOCIATED PRESS
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CASEY TRADED STOCK BEFORE CREATING BLIND TRUST
BY ROBERT PARRY
WASHINGTON
The report showed that Casey continued trading in stocks and securities right
up to Oct. 7, when the bulk of his multimillion-dollar holdings were put in a
blind trust beyond his control. In the two weeks before the trust was set up,
Casey reported between $690,000 and $1.6 million in transactions.
Prior to creation of the trust, Casey said day-to-day control of his stock
portfolio was in the hands of his longtime investment adviser, Richard Cheswick,
who has denied that Casey ever gave him information that helped in making
investment decisions.
Nevertheless, Casey aroused public and congressional criticism for keeping
ultimate control over his holdings after he became CIA director in January
1981. His two predecessors at the CIA, as well as other senior Reagan
administration officials with access to secret government financial data,
created blind trusts for their holdings.
Last year, facing a threat of congressional action to force him to create a
blind trust, Casey relented and agreed to establish one. Still, the arrangement
left Cheswick in charge of Casey investments worth at least $5 million and
possibly more than $8 million.
Exact amounts for holdings and transactions are impossible to determine from
the disclosure form because the figures are given only within broad ranges and
not in exact sums.
According to the form released Thursday by the CIA, Casey and his wife sold
between $1.2 million and $3.6 million worth of stocks and bonds in 1983, prior
to the Oct. 7 creation of the trust, and bought between $1.1 million and $2.6
million worth of stock and securities.
The Caseys also reported earning between $494,000 and $1.2 million in outside
income from dividends, interest and capital gains on their investments. As a
Cabinet-level official, Casey receives a salary of $69,800.
During his three years as CIA director, Casey has come under frequent
criticism for his financial dealings. In 1981, the Senate Intelligence Committee
criticized Casey for failing to list holdings fully on the financial disclosure
form he filed when he took office.
Subsequently, the form filed in May 1982 and covering 1981 showed that Casey
had sold more than $600,000 in oil stock as a glut developed in world oil
markets. At the time he began selling the stock, the CIA had secretly revised
an estimate, pushing back the date the Soviet Union was expected to begin
importing oil.
In the form submitted last year which covered 1982, Casey reported buying
stock worth $1.9 million to $4.5 million while selling stock worth at least $1
million and possibly more than $2.1 million. Most of Casey's stock transactions
occurred as the stock market began a mid-August rally.
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STAT
 UNITED PRESS INTERNATIONAL
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CIA'S CASEY LISTS HIS ASSETS
WASHINGTON
0
64
CIA Director William J. Casey, in a federal financial disclosure report
made public Thursday, reported assets that could be worth as much as $14
million.
The report, issued at CIA headquarters in nearby Langley, Va., revealed
holdings or trading in more than 70 enterprises and stocks and bonds, up to Oct.
7, 1983, when they were placed in a special trust.
Investments ranged from property and a health-and-sport club to airlines,
pharmaceuticals, television and communications, energy and hotels.
Casey also reported sales from January to October 1983 of investments whose
value was difficult to estimate and of Treasury bonds totalling up to $1
million. Last year he sold shares in Wendy's international that could be valued
up to $1 million.
The 24-page disclosure report showed that Casey had investments of "over
$250,00011 in each of eight enterprises ranging from Capital Cities
Broadcasting, MCI Communications, Phillip Morris, Prentice-Hall and a 15 percent
partnership interest in C & D Associates.
The disclosure form does not reveal exact figures -- only ranges, the
smallest of which is " $1,000 and under'' and the largest ''over $250,000."
A cursory tally of issues bought, sold or retained indicated Casey's assets
could have totalled as much as $14 million before last Oct. 7.
Prior to establisment of the trust, the 71-year-old intelligence chief had
been under congressional pressure and criticism for not following precedent and
putting all of his holdings into a blind trust.
Last July 19, Casey agreed to a trust to avoid criticism that his investments
might be with firms with which the agency does.business or that he might benefit
from ''insider'' information through intelligence facilities.
Documents obtained under a Freedom of Information Act last November showed
that Casey did have stocks in concerns with classified CIA contracts when he
took office early in 1981. The documents also showed, however, that agency
attorneys and government ethics officials found no conflict of interest.
The FOI documents showed that Casey was unhappy with allegations that, after
taking office, he disposed of more than $600,000 in oil holdings on the basis of
CIA estimates of worldwide oil production.
In a letter to the Senate Intelligence Committee last July, he denounced the
allegations as ''grossly unfair and inaccurate.''
The ''qualified diversified trust' established for Casey's assets last
October provides for screening of his investments by Deputy CIA Director John
McMahon and agency counsel.
A CIA spokesman said Casey's financial report still has to be reviewed by
an agency ethics office, which has 60 days in which to express its views.
STAT
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 BOSTON GLOBE
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ARTICLE APPEARED
ON PAGE A -I $"
U
CGE6
filling El Salvador out of the hat
ROBERT HEALY
WA UINU,PUN - Alter Ills speech to the House last
week. President-elect Jose Napoleon Duarte of El Sal-
t vador crossed to the Senate for a meeting with Sen.
Edward Kennedy and a handful of Democratic sena-
tors, some of the severest critics of the Reagan Admin-
istration's policies in Central America.
Duarte asked the Administration officials who had
iaccompanied him around Washington on his visit to
remain outside the meeting. He faced these lions of the
Senate with only his own aides present.
One observer described the meeting this way:
"They thought he should have a chance. They weren't
sold and some thought he would be back to his old
ways in a short time. He is not regarded as a strong
man, but someone who is ultimately controlled by the
military, and right now the military needs Duarte be-
cause they need the United States."
On Thursday, five former National Guardsmen in
El Salvador were found guilty of the murder of four
American churchwomen. It had been almost four
years since their murders in December of 1980.
6n the same day, the House of Representatives, ,
controlled by the Democrats, approved a $62-million
emergency military aid package for El Salvador and at
the same time rejected President Reagan's request for
$21 million to aid the rebels who are fighting the leftist
'Sandinista government in Nicaragua.
Reagan had lost his proposal for Nicaragua aid, but
he had won a stunning victory for his policies in El
Salvador. He won it by pulling out all the stops In the
election of Duarte. The Central Intelligence Agency, as
in days past, got involved in El Salvador to win friends
for Duarte.
Reagan pulled it off against serious odds. The polls
showed the nation is not with the president on Central
AAmerica. In a recent ABC News-Washington Post poll,
'about 60 percent of those polled said they' believe that
the president's handling of Central America is point-
ing the United States more toward war than peace.
The Catholic bishops have also opposed Reagan's poli-
pies in Central America.
Until a recent split to the House leadership, the
;Democrats were lined up almost solidly against the
resident on his Central American policies.
Charles Manati, chairman of the Democratic Na-
tional Committee, on Friday said the key issue in the
Fall presidential campaign would be leadership of the
nation, Reagan's handling of the "war and peace" is-
~Sue and the increase in interest rates. Manatt said the
financial crisis demonstrated by the "almost failure"
of Continental Illinois, one of the 10 largest banks in
the country, and the many farmer bankruptcies is a
prpduct of rising inte_restrates.
STAT
But when reminded of the President's victory in the
House'on El Salvador, Manatt said he had noticed that
the feeling in the party toward El Salvador was
V"mixed."
Reagan, for all his difficulties in the polls on the
ar and peace issue and for the potential problem of
sing interest rates, always seems to be able to pull it
t when he needs to. `i:
The China trip has helped: there is more to come as
be travels to Europe, and no one should underestimate
the victory which the President has managed with
great skill in El Salvador. He has avoided a disaster
'there, at least for the time being, and that is no small
thing. .
Where Reagan could be in trouble is in the "debate-
gate" scandal. A House subcommittee has just found
that there might be criminal violations in the theft of
-President Carter's briefing papers by the Reagan cam-
paign staff. and that this theft gave Reagan an unfair
advantage over President Carter in their first debate.
l Those who would equate this affair with Water-
gate, as Manatt did. are mistaken. Richard Nixon was
at the heart of the coverup conspiracy. Reagan does
not Involve himself in these kinds of details.
Where the President could be in difficulty is with
William Casey, the Central Intelligence director.
James Baker, chief of staff in the White House, said
Casey gave him the Carter debate papers.
Casey has been in hot water before on conflict of
Interest. He is insensitive. It may be worse than that if
there is anything to the House report.
Where there are similarities between this scandal
and Watergate is in the investigation by both the FBI
~and the Justice Department. Each, found no criminal
.violation in the debate-papers affair. If a special pros-
ecutor is appointed and finds wrongdoing, it will have,
a`all the appearance of another Watergate coverup.
Further, the President-acts as though Casey? inone
o the most sensitive jobs in the nation, is acceptable
so long as he is not convicted of a felony. The director
fof Central Intelligence should be better than that...
Reagan, then, has demonstrated great skill in man-
aging the big issues such as El Salvador.' Time and
again his opponents underestimate him.
But the big problem may be William Casey, for
whom he has demonstrated great loyalty. It could be
costly.
r Robert Healy is -chief of the Globe's Washington
.Bureau..
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ARTICLE AFFFAF
nN p A GE $ / 29 ldav 1984
Project Democracy Takes Wing
Labor Council, Asian American Free
By BEN A. FRANKLIN Ambassador Briggs was quoted as
scar to .L NVW York 7 um Labor Institute and American 1.nsti- saying in the cable: "It would be em-
WASHINGTON,' May 28 - Carl tute Through for Free these Labor Development. barrassing to the United States if the
Gershman, a former aide to Deane J. labor's s emissaries tried, or eexxampple labor institute's use of endowment
Kirkpatrick, the chief United States to organize South Vietnamese work- funds to support one side in Panama s
delegate to the United Nations, is set- ers during the war there sought to elections became public knowledge.
ting up shop here these days in a diffi- unionize farm workers in Grenada be- The Ambassador requests that this
cult new job. 1:. fore the American-led invasion last .Project be discontionued before the
He is head of the new National En- year and have been active in Brazil, U.S. Panama." Government is " furthercomps~rnised in dowment for Democracy, a federally Chile, -the Dominican Republic,
-Mr.
financed Gershman, reached in- New
pete in nanced the foundation worldwide designed to struggle com for - Guyana and El Salvador.
York today, said the Panamanian people's minds by financing "demo- Suspected of C.1-& Ties , issue "came up before I got the en-
cratic institution-building" in foreign the connection has been dowment." He confirmed that about
lands. The designated spenders of~~ $20,000 in Government funds had been
this public money are the American domed' they were sometimes accused used by the labor institute in Panama
Federation of Labor and Congress of for suspected of involvement with the to support the Barletta campaign, but
Industrial Organizations, abor the Cham- :Central Intelligence Agency. In El said: "I am not sure it was Ned
.:alvador in 1981, two American em- money, and in any case it ism un-
ber of Commerce of the United 1 ees of the American Institute for y
States, the Democratic National P oy j derstanding that this has all been
Committee and the Republican Na- Free Labor Development who had worked out to everybody's satisfac-
been accused of links with the C.I.A. tion - the Ambassador's, the State
tio~ Committeewere shot to death in the coffee shop Department's and the institute's."
Despite confrontational positions of the San Salvador Sheraton.
here at home, the four groups are now But because it has gained long ex- The C.I.A. Obstacle
bound together in a commitment to a perience in its programs abroad, the One of the obstacles that Mr.
foreign mission: the encouragement labor movement is to get nearly a Gershman must overcome is the
of American-style pluralistic soci- quarter of the democracy endow- C.I.A.'s reputed secret involvement
eties abroad. They are also bound to- ment's largesse, or $13.8 million a in the past in a lot of what the Endow-
gether, of course, by the Federal year. merit for Democracy hopes to do in
money, about $62 million over the By comparison, the newly created the open: encouragement of political
next two years, that ~ has already "international institute" of both the . Parties compatible with United States
begun to flow from the offices of Democratic and Republican National interests, of vigorous labor unions
"Ned," as Washington's acronym ' Committees each is to get $5 million a and democratic press and church
mania has already named the new en- year, and the Chamber of Commerce groups and the publication of writings
dowment. - gets $2.5 million for its new Center for by pro-Western dissidents. As one of
But among the Congressional spon- International Private Enterprise. its first actions the Ned board voted to
sors of this so-called Project Democ- The Democratic and Republican in- forbid any employment of C.I.A. per-
racy - foremost among them Repro stitutes are modeled after the long-es- sonnel or covert C.I.A. agenda in its
sentative Dante B. Fascell of Florida, tablished practice in several Euro- Programs.
chairman of the House Foreign Af- peon countries, particularly West When Congress considered the
fairs Committee - there is a strong _ Germany, where the main political creation of the National Endowment
belief that private citizens, operating parties now divide about $150 million for Democracy last fall, the prospect
in the open, can be more effective a year in government grants for over- of a C.I.A. presence so worried Sena-
,than secret agents in spreading the seas encouragement of democratic tor William Proxmire, Democrat of
:seeds of democratic ideas. institutions and ideas: Wisconsin, that he persuaded the Sen-
The notion of a Project Democracy ate to bar from Ned anyone who had
first gained attention when President Criticism From Panama worked for the C.I.A. for the last 20
.Reagan mentioned it in a speech to Representative Hank Brown, Re- years. This, in'turn, so affronted Wil-
-the British Parliament two years ago. publican of Colorado, a critic of the Liam J. Casey, the Director of Central
,As later presented in a proposal to democracy endowment concept, said Intelligence, that he negotiated a
Congress, it would have been open- today that Ned-financed activities in co opeomifinal s adoption . Senator Proxmire,
sated by the United States Information Central America had already drawn of the bill.
Agency. But controversies surround- criticism from James E. Briggs, the "On behalf of the intelligence com-
ing the U.S.I.A. director, Charles Z. Ambassador to Panama. munity, I have agreed with Senator
Wick, inspired House Democrats, led Mr. Brown said he had obtained Proxmire that the National Endow-
by Mr. Fascell, to the alternative of merit for Democracy will not be used
an independent National Endowment ,from the U.S.I.A. a paraphrased copy, to conduct intelligence activities,"
for Democracy. of a cable that Ambassador Briggs Mr. Casey said at the time. "In addi-
sent to Washington in April complain- tion, I have reached a general under-
In the private sector's promotion of ' ing that the ' American Institute for standing that intelligence community
American values abroad, until now Free Labor Development, one of the personnel shall not be permitted em-
only the American labor movement, A.F.L.-C.I.O. affiliates, had been ployment by the National Endow-
through the Free Trade Union Insti- given funds by Ned to cover the ex- ment for Democracy except as jointly
tute it formed in 1978, has gone much penses of "activists" supporting the agreed in future negotiations with
beyond rhetoric. Largely with money Presidential campaign of Nicolas Ar- Senator Proxmire."
from the State Department's Agency dito Barletta. Mr. Barletta, the candi- -.
for' International Development, the date backed by the Panamanian mill- {~4tlU~
A.F.J.-C.I.O. has run programs over- tary, narrowly defeated former
seas under its African American Free President Arnulfo Arias Madrid in
the May 6 election.
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2
5 Senate[ Republicans Maneuver
no means univer-
senators to start out with the theory; by
'some
B Helen Dewar --. biggest chunk of committed or semi- sally.held, is that a decision to go
,
wamungton Post Staff Writer committed supporters but also with with Lugar would mean dominance
Bob and Pete, with a little help limited potential to cut into the of the Senate by the committee
from Jim, are working on their good- broad middle of the party in the ' .chairmen, who already hold consid-
government badges. Ted is giving Senate. erable power in the collegial leader
pep talks and trying to keep his tem- The most ' prominent figure is ship style of Baker.
per in check. Dick wants to make Dole, chairman of the Finance Com- So far, aside from an occasional
sure that they can come back and do mittee, whose show r ansh:'p and leg- elbow to the ribs of a rival and a lot
it again next year. islative skills rank among the best in of posturing, preening and jockeying,
Much as they may act the part, the Senate. the five have held their campaigns in
they're not a bunch of Boy Scouts in But some senators confess pri- check lest any infighting jeopardize
pursuit of merit badges. vately to misgivings about the im- the Republicans' chances of retain-
They're five of the leading Repub- pact of his presidential ambitions on ing control of the Senate.
licans in the United States' Senate- how he might run the Republican So Dole and Domenici, as chair-
Robert J. Dole of Kansas, Pete V. Party in the Senate and deal with men of two of the key fiscal commit-
DDomenici of New Mexico, James A. the White House, even if it remains tees, have been parading their skills
McClure of Idaho, Ted Stevens of in the hands of President Reagan, t as champions of deficit reduction,
.Alaska and Richard G. Lugar of In- whom Dole has shown no shyness with occasional needling of Domenici
diana-who are competing to be- about challenging. in the past. by Dole that has stretched but not
come leader of their pack by doing Some also question whether Dole broken the no-combat rules.
good deeds.
could afford to risk a loss in light of McClure won some points on the
With varying degrees of commit- his higher ambitions and wonder deficit-reduction scorecard recently,
went, they plan to run in a secret- why he would even want the job, 'too, with a compromise to shift
ballot election conducted among all which involves at least. as much funds from the synthetic fuels pro-
Republican senators next December drudgery as glory and tends to make gram to other domestic accounts
to choose a successor to the retiring its holder captive to the interests of that hastened passage of the Dole-
party leader, Howard H. Baker Jr. others. Baker, they note, is leaving it Domenici deficit program.
(R Tenn.). . to consider a run for the presidency. Stevens, whose red-hot temper is
It will be an odd-man-out mara- Domenici, chairman of the Budget ; almost 'a Senate legend, has been
thon that goes on until someone gets Committee, is well-liked but carries
a majority. If the GOP retains con- the scars of his seemingly endless stepping in recently as a voice of
trol of the Senate in the November budget battles Although seriously unity and conciliation in party coun-
elections, the victfir will be majority interested in making the race, he has cils.
leader; if not, minority leader. been somewhat hesitant about push- Lugar has perhaps been the most
The contest is "polite, dignified, ing his own candidacy, which some diversified in his activities recently,
understated and very low-key," said e--senators have interpreted as ambiv- even though he says he is not yet in
Sen. Warren B. Rudman (R-N.H.). alence, the race officially because of his
"Quite senatorial," said one of the -- - = - - - campaign chores. He has put togeth-
contenders, meaning clubby, courtly Many figure Lugar as a potential or a fat kitty to.aid Republican can-
and even a bit stuffy. t final-stretch compromise,' especially didates this fall, with aid as well for
As of now, it's generally agreed ; if his stewardahi of the', Senate senators running in 1986.-.
there is no front-runner or even GOP's campaign ommittee keeps In recent weeks, he has also
dominant set- of challengers,--and the party in control of the Senate by I- played statesman in helping to
some senators expect the field to a margin approaching the current solve -a fight between the Senate Se,
55-to-45 split. IectCommittee on Intelligence arid,
narrow before the race gets to the I Less ideological than McClure, CI1 Director G i iam J. Casey
final push. less threatening than Dole, more en was political point man in chal-
As the most conservative figure in even-tempered than Stevens and longing Democratic presidential can-
the race, McClure, currently chair- t..better positioned than Domenici., he didate Walter F.: Mondale on the
man of the Energy and Natural Re- cultivates the low-key, easy-going Chrysler bailout issue.
sources Committee ~ been to s
, A ~Sr a @f ~1~' bis I fi PA-0090' RQ( flE'~6' Md es. tart,
WASHINGTON POST
29 May 1984
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S
.And How Many Deaths Will It Take
TUt We Knb.w This Tim&
The Friday before Memorial Day, as the tieing persecuted by the Sandinistas.
cit "reared for the funeral of an un
Y P P ~~~ 1 {llt'@ MT Some raiders were fellow M;ak;tna f].,to_
lmown from the Vietnam war, three peas- man said she asked one, "Why are you do-
ants came to Capitol Hill with an account ins this to Your own people?" His response
of the war we are now engaged in. was to push her aside.
They shivered at the witness table of the ~ Kennedy has written CIA Director WE-
' liam J. Case to ask him to watcS Senate Foreign Relations Committee: their Her brother-in-law and two cousins were ee rave, Y iehtened witnesses. over e
cheap, gaudy clothes were no match for the. kidnaped, i
Senate's icy air conditioning. They were In all, five people 'were killed, 15 wound- What they described sounds like a state
l
.a
so afraid of what will happen to them,
when they go back to Nicaragua, for having
given Congress a victims'-eve view of the
"It would be better if they killed us all, administration officially inveighs against.
The Democratic-controlled House has three
"secret" hostilities we sponsor there. so we wouldn't suffer any more," Hammer times voted to end the "secret" war. But
At 4:30 a.m on April 17, some 150 "consaid. the Republican-controlled Senate stands tras," anti-Sandinista guerrillas organized And how does she feel about the United firmly behind
it- and supplied by us, stormed Sumubila, a States? The. question was asked by Sen. Sen. David F. Durenberger (R-Minn.)
settlement of 3,000 people on the northern ward M. Kennedy (D-Mass.), who had once made an eloquent speech against ac-
called the forum and found the witnesses tivity counter to our values, but he votes
through the Center for Constitutional - for it in the Senate intelligence committee,
down the health clinic, which is their sig- Rights, -a New York-based .human-rights So does that committee's vice chairman,
nature outrage, and then began shooting organization. Daniel Patrick Moynihan (D-N.Y.), who
into houses. They captured 39 young men, t x. He added that his committee voted $21 million for aid to the contras, the
rebels who are fighting the Marxist-domi-
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ON PAGE__ ' 7 May 198I
After the humiliation in Lebanon, the United States might
at least have allowed a decent interval to pass before again
making itself foolish in the eyes of the world. Yet we were
back at it again with the Nicaraguan mining fiasco, a mis-
adventure from its clumsy conception through its abrupt
demise. And again, the display of incompetence was bi-
partisan, initiated by the Republican Administration and
compounded by members of both parties in Congress.
The C.I.A. apparently could not resist going beyond its
role of providing assistance to anti-Sandinista rebel
groups fighting in Nicaragua. It had to get its very own
piece of the action, so it concocted schemes ' to involve
itself directly in raiding a Nicaraguan port and then in
laying mines in Nicaraguan harbors. The operations
risked discovery, risked accusations that the United States
was violating international law, risked arousing the indig-
nation of countries whose shipping might be damaged.
Yet the C.I.A. persuaded the President's national security
adviser to walk its ideas into.the Oval Office for approval,
and he walked right out again with Mr. Reagan's O.K.
Congress's two intelligence oversight committees
should have warned the Administration to drop its plans,
but they didn't. Both were informed-in the case of the
mining, the House's committee was told in January, the
Senate's in A4arch-but if the members were listening to
what they were being told, they did not focus on the
implications of a direct C.I.A. operation. Senators Barry
Goldwater and Daniel Patrick Moynihan protest that out
of more than 130 pages of hearing transcript only two
sentences referred to the mining, and did not mention the
C.I.A.'s role. The Administration counters that its written
submissions-as opposed to oral summaries-desaibed
and justified the operation in detail. If the C.I.A. was
hiding, the Senate was not seeking. After Murphy's Law
ti^'as.fulfilled with its customary reliability in matters covert
and American, Congress panicked-much as it did when
the going got rough in Lebanon-and not only con-
demned the mining operation by lopsided margins in both
Houses but also threatened to cut off funding for aid to the
contras entirely. That move, if actually carried through
STAT
when Congress returns from recess, would be at least as
mindless as the mining itself.
We do not support aid to the contras with any relish.
And in many respects we do not support the-Reagan
Administration's goals and methods in supplying aid. For
example, the bulk of U.S. assistance goes to the rightist,
Honduras-based Nicaraguan Democratic Force (F.D.N.),
many of the field commanders of which were officers in
Anastasio Somoza's brutal and justifiably detested Na-
tional Guard. A far better prospect for winning the sup=
port of Nicaragua's people is the Democratic Revolution-
ary Alliance (ARDE) headed by the former anti-Somoza
guerrilla leader Eden Pastora ("Comandante Cero"). Mr.
Pastora's force has just captured a coastal town in south-
ern Nicaragua, has been bolstered (according to news
reports) by the defection of an entire battalion of Sandin-
ista soldiers, and is planning to set up a government in
exile. ARDE apparently does now receive C.I.A. help, but
much less than the F.D.N.
The Administration's purposes in aiding the guerrilla
groups are also suspect. ARDE has proposed a plan where-
by antigovernment military activity would cease if the
Sandinistas agree to hold fair elections this November-
that is, if opposition candidates are guaranteed security
from Sandinista toughs and the right to have their views
heard free from censorship, and if the election is interna-
tionally supervised. The Reagan Administration has failed
to endorse the ARDE proposal, leading to the suspicion
that democracy in Nicaragua is not one of its primary
goals. Indeed, there seems to be a split within the Admin-
istration over Nicaragua much as there was in Lebanon.
One group, said to include Secretary of State Shultz, be-
lieves (sensibly, in our view) that aid to the contras should
be designed to pressure Nicaragua into halting subversive
activity against El Salvador and into entering serious peace
negotiations with its neighbors. Another school of
thought within the Administration-reportedly led by
Secretary of Defense Weinberger and the C.I.A. director,
William Casey-regards the very existence of a leftist
Nicaragua as an intolerable menace to vital interests of the
Continued
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 NEWSDAY (NY)
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The Most Powerful Lier:
.
William Casey of the
HEN Martin Van Buren got
to be President - the first
from New York State -
you can imagine the elation in the
Hudson Valley where he grew up. Clos-
er to home, I recently met an elderly
lady from Oyster Bay who vividly re-
members the neighborhood's pride in
its famous summer cottager, Theodore
Roosevelt.
We haven't had a locally born presi-
dent, but there is a Long Islander right
now at the very center of America's
leadership. The CIA's William J. Ca-
sey, who grew up in Elmhurst and Bell-
more and has long resided in Roslyn
Harbor, probably ranks higher in gov-
ernment than any native, full-time
Long Islander of the past. That should
make him our celebrity of celebrities.
Unfortunately, since Casey's special-
ty is secret warfare, the public can't
really judge how powerful he is. We
can't even be certain whether to be
proud of him, since the CIA's victories
are mostly secret even if some of its
failures aren't.
Let's leave the latter judgment to the
historians. On the first question,
though - that of Bill Casey's stature
in President Reagan's Cabinet - the
evidence is fairly conclusive. After
.Reagan himself, Casey may well be the
single most powerful individual in
Washington these days.
You can measure this in several
ways. One is by a process of elimina-
tion. Has Ronald Reagan been taking
the secretary of state's advice on the
Middle East? The Council of Economic
Advisers' advice on the deficit? The
budget director's advice on defense
spen The Congress's advice on
anything?.
Compare these negatives with Bill
Casey's string of positives on increased
funding for the CIA, global expansion
of covert activities and the fixing of
priorities in foreign policy. Another ap-
proach is to note where the action is in
Projecting American power abroad. By
every appearance, Casey and his face-
CIA finish the job, and no broad national
consensus even to begin it. ,(It's said
less spymasters are replacing the Joint t the Navy's highest brass wasn't even
Chiefs of Staff and the Pentagon as the consulted before Nicaraguan harbors
central actors where decisions of war were mined by the CIA - and this
at a time of deep concern lest others'
and Peace are made.
Through no particular fault of ' eiaanger our snips in the Per-
their
services rind the themselves virtually The view of,these military profes-
ry weapon, ems will sthat ubmit only to economics d
useless the nuclear warhead, l
by common agreement incapable of political measures, not military ones
winning wars, able only - maybe SO here we have a President who be-
to deter the. e lieves in action, a Pentagon that has
But our conventional forces are hob-
bled, too: Since Vietnam, it has been
a canon of Pentagon planners (a
loose canon, the- hawks might say) to
avoid military involvement unless as-
sured the full support of the Ameri-
can public. That support is seldom
forthcoming. And in any case neither
the American public nor our allies
will invest in the kind of convention-
al forces it would take to balance the
Soviets.
Some of the President's advisers ridi-
cule the new caution as "Vietnamiza-
tion." Actually, it's a rule of
generalship as old as war itself; in the
4th Century BC, the Chinese strategist
Sun Tzu demanded to know if "the peo,
ple [are] in harmony with their lead-
ers" as the first of his "five
fundamental factors" in calculating the
odds of victory.
So the Joint Chiefs of Staff refused to
-endorse military landings in Lebanon;
they possessed neither the resources
nor public support to carry the oper-
ation to success. The landings were or-
dered anyway.
Today significant elements of the
military establishment oppose Rea-
gan's commitments in Central Amer-
ica, too. Once more there is the per-
learned to be supercautious, and a se-
cret warrior who says he can get done
whatever it is the President wants, if
not one way, then another.
Little wonder Bill Casey has the
President's -ear, and little wonder
Congress exploded the way it did a
couple of weeks ago over the Nicara-
guan mining. Radical change is over-
taking both the form and substance of
warmaking. The change is perhaps
inevitable, dictated by external
events, but that makes it no less trau-
matic for a free society. And the ar-
chitect is William 'J. Casey.
In a speech a year ago at Georgetown
University, Casey came pretty close to
saying publicly that secret war has al-
ready become more important than the
familiar kind for which our govern-
ment was structured and our public
educated. 't'he media does extensive
reporting and analysis on the Soviet
missile and conventional military
threat which we spend hundreds of
billions of dollars to counter," he
said. 'ut the big story' out there is
the possibly more lethal frroceess of
creeping imperialism by subversion
and insurgency . . ." The question, I
guess, is whether creeping war is
really the answer to creeping imperi-
alism. ^
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 APTI.,LE r,P roved For Reled' W260417 $ tIA-RDP91-009
ON PAGE 6 may 1954
Japanese Investment;
Debate mounts
over factory
ventures in U.S.
By WINSTON WILLIAMS
i L
CHICAGO
AST fall , President Reagan issued a
policy statement on foreign in-
vestment in the United States. In
generous terms, he declared that such
investment is always welcome, as long
as it is based purely on economic con-
siderations.
Maybe so, but when it ? comes to
Japan, , that view is not shared-by
everyone in the Administration. Last
Ynon'fh, to ac , lam J. Casev,
chairmantne Central Intelligence
Agenc~'denounced-3apan's big stake
in American computer companies as
"Trojan horses.", a said over-depend-
ence on Japanese technolcould tin-
derminehis countrv__' "acensetting
skills in the U.-
Mr. Casey's remark was one. of.. the
more dramatic in a ..new debate over
commerce with Japan, While the big
issue'-of_former years was how tolieal
with mushrooming Ja~anesgt ts,
the more troubling concern emereine
today is the long-term ecancmis_im-
pct of the increasing Japanese owner-
ship share in perican-factories.
This new aspect of the Japanese
presence in the United States is being
welcomed - even wooed - by many
Americans. as a source of needed capi-
tal and valuable technology. But as the
Japanese expand into join: ventures
with Americans in basic -industries
such as steel and autos, their economic
presence has taken on a double edge.
The worries vary from group to
group. For labor leaders, the para-
mount question is whether the Japa-
nese investment will save jobs - and,
if so, whether they will be union jobs.
The business community is primarily
concerned about the immediate threat
posed by Japanese competition for do-
mestic sales. That issue came to the
New WOrry
fore last month with Nip-
pon Kokan's new invest-
ment in National Steel 7
an investment that is
likely to make National a
more ? competitive sup-
plier of steel to United
States auto makers.
Economists, for their
part, have a more long
'term worry: that United
States industry will be.
deprived of capital if the
Japanese take home the
profits from their Amer-
ican operations, some.
thing they have not yet
done in - significant
amounts.
But for all the words of
worry, there have been
as many or more wel-
coming the new Japa-
nese investment strat-
egy. "It's funny how
many companies cling to
the notion that the Japa-
nese do what they do
with mirrors, that they
just are not fair," says
Thomas M. Hout, vice
president of the Boston
Consulting Group.
"When you get the Japa-
nese bringing in new pro-
duction and manage-
ment techniques, it makes the chal-
lenge more tangible. American indus-
try will have to shed its lethargy."
Japanese investment in Americar
business is not new, of course. It ha:,
been trickling to American shores for
more than a decade. Indeed, Matsushi
ta's Quasar television plant in subur
ban Chicago is celebrating its 10th anniversary this year, as is the Join l
manufacturing venture between Alu .
max and its Japanese partners, Mitsui
and Nippon Steel. And Sony's chair-
man, Akio.Morita, will arrive in San
Diego this week to greet the five mil-
lionth television set to roll off the com-
pany's 12-year-old assembly line there.
But what is new about Japanese in-
vestment here is its size: In recent
months aggressive Japanese comps-'
vies - frustrated by stagnant markets
at home, and eager to find a way
around the import controls that have
stifled their American sales - have
been pouring yen into American busi-
nesses.
half of National Intergroup's
only the most recent manifestation of
the trend that last year pushed Japa-
nese investment in the United States
up 20 percent from 1982's level - to
$10.5 billion. Other sizable recent
deals have included Toyota's $230 mil-
lion joint venture with General
Motors to make subcompact cars at
an idle G.M. plant in California and
Fuji Bank's $425 million purchase of
Walter E. Heller, a Chicago-based
financial services firm that special-
izes in loans to small and mid-size
businesses.
The $10.5 billion stake in American
business makes Japan the fourth-
largest foreign investor in this coun-
try, just behind Canada in the value of
total holdings, but only half the size of
the. Netherlands and Britain. Never-
theless, the Japanese are far ahead of
the $8 billion that Americans have in-
vested in Japanese business. The
turning point came in 1981, when
Japan's American investments
reached $7 billion.
The Japanese are following a simi-
lar strategy in other countries, and if
the trend continues Japanese invest-
ment abroad will multiply from $32
billion in 1980 to $150 bi lion by 1990 -
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STAT
 r Ti CLE APPEA -Approved For Relea a 2005/11/29: CIA-RDP91-00901 000400030002-2
Las P2-,G=ES TII?S IR
TAT
S
ON PACE 1,Sec. IV 6 May 1984
'rhe CIA Is
ari ineffective
i mrd t orce
`By Thomas Powers
soum ROYALTON, VT.
Tow what was that all about?
In March, six different vessels,
including the Russian oil tanker
Lugansk, struck mines seeded along the
approaches to Nicaraguan harbors. Dam-
age was light. Protests followed from
'Britain and France, among others. The
contras; fighting to overthrow the Sandin-
ista ;regime in Nicaragua from bases in
Costt Rica and Honduras, claimed credit
for the mining.
But everyone knows that the contras are
financed by the Central Intelligence
Agency, and everyone knows-or _surely
ought to know by now-that Operational
Rule No. 1 for the CIA in ventures of this
sort is control.
There -is not a micron of daylight
between the contras and the CIA. The tail
does not wag the dog. That is a given. No
one had-or should have had-to tell the
Senate Intelligence Committee that the
mining. was a CIA operation from start to
finish, just as no one should have had to tell
the committee there is no daylight be-
tween the CIA and the White House. If the
CIA is doing something, the President
wants it done. That is another given. So
why the big flap in April, settled only after
the CIA's director, William J. Casey,
apologized to the Senate Intelligence Com-
mittee for not having kept it "fully and
currently informed" as required by law?
There are two answers to this ques-
tion-one narrow, one broad, both inter-
esting.
The narrow answer is that Casey had
something to apologize for. The CIA had
tried to slip one by the senators-the
significant fact that the mining operation
was not only conceived and directed but
actually carried out by the CIA, using its
own paramilitary officers on a "mother
- -i} " outside Nicaragua's 12-mile limit
nd specially trained commando teams. of
"Latin Americans"-so far unidentified-
v, ho placed the mines. The contras played
only a walk-on role, dutifully "claiming
credit" as directed by their case officers.
This is not a distinction without a
(ifference. The operation marked a signifi-
cant step toward "Americanizing" the war
a.nd the CIA deliberately fudged the point
its briefings because it knew the
senators would balk. The Administration
wants to win the war in Central America,
with Americans if necessary. The Con-
gress wants to stay out. The fiction of an
arm's-length relationship to the contras
represents a working compromise between
the White House and Capitol Hill, Hence
Senate Intelligence Committee Chairman
Barry Goldwater's famous "pissed off"
letter to Casey when he learned the
agency (and of course the Administration)
had tried to put one over on him. -
But it's the broad answer that really
ought to-interest us in this episode, because
it helps to explain why U.S. Presidents
have called so often upon their CIA's
covert operators since the agency was
established in 1947, why the agency-feel-
ing heat from the White House-tends to
be so impatient for results in the field and
why the CIA is failing in Central America
as it has so often in the past. The CIA
was set up to prevent a repetition, of Pearl
I l arbor, by providing a central location for
p~ ocessing intelligence from all sources.
"gat within a year or two it had taken on
t ., o.additional jobs: intelligence collection
through its own assets and covert opera-
tion's. It was the latter that captured the
j.-nagination of Presidents and their advis-
e rs.
Secretary of Defense Caspar W. Wein-
berger recently claimed that there is no
corner of the world so remote, no nation so
insignificant, that it does not represent a
vial interest of the United States. This is a
broad claim, but not a new one. American
policy has been global in scope at least
since the 1948 Berlin blockade, and the
CIA offered American Presidents a tool for
backing up U.S. interests with bite-some-
thing between a diplomatic note of protest
and sending in the Marines. Accordingly,
in addition to many other tasks, the CIA
was directed to support and sometimes
COnblived
STAT
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 roved For ReleasbbO/:(/2&*EIA-RDP91-00901
Central American Worries
Some tough battles with Congress loom in the next
few weeks over Mr. Reagan's requests for funds for the
t MX missile and the production of chemical warfare
weapons. Both are in trouble because of doubts on Capitol
Hill about the Administration's strategy of building up
the American arsenal as an incentive for Moscow to ne-
gotiate. But the foreign polity area that the White House
~~ 1~ e Presideftt fears most is Central America. Mr. Reagan's aides are
wrestling with the question of how much to inject the
Flies President into the coming dispute over milt
ance to El Salvador and to the 'Y assist-
Their concern has been shy, in Nicaragua. 4
ain
trati ed bL.hat AdyF
sa are fresh int ence its that a
ma or
k- D
u an-s nso em a nsive`
is
in E1 Salvo thi
o
^
r s s11 tznn for the height of
{-` the .erican election cam
i
na
I3e talk in th Adi
vemn-
istration has xurned to fears that El Salvador could go
01- '"down the-drain, as a White House aide pat it last week
unless military aid is drastically increased, and soon. In
~"` the glow of Mr. Reagati's triumph in China, the question
at the' White
b l m- S House is whether he should e
chaag the sub-
1 j ect 4o quickly. "My own feeling is that I'd rather get it
out/of the way now; -said a : Presidential aide. "That's
preferable to having the situation blowup, presenting the
By STEVEN R. WEISMAN . President with a real crisis In October,"
Caution would dictate not pushing El Salvador back'
WASHINGTON to the top of the agenda,.and James A. Baker 3d;-the
AVORING the rave reviews of his trip to China,', White House chief of staff who is knost~ for his caution, is
president Reagan retreated from stage for said to believe that in the past Mr. keagan's cries of
rest Camp David, His top from the had g for a : alarm over Central America have drawn as much opposi.
lusuy.They immediately began plans n tlon as support. But White House aides also said that Rob-
on re- an next opelu ur the imme election a road show in for tch for the. ert C. McFarlane, the national security adviser, was
phere of optimism and wariness. The President, several said, f rr aodrie ooblame theme are be if El a lvdor is
aides say, is performing so well politically that it is eerie. set back for lack of military support, if El Sat Salvador is
starting with a pos-
In spite of a bitter stalemate with the Soviet Union, a loss sible television address thiweek.
of American influence in the Middle East, immense con-
troversy over. Central America and a worrisome surge in White House aides are h' st that the results of the
interest rates, his approval ratings keep climbing.. . Salvador ection t ay 1 Ater their .But the
White House aides say the main reasons for Mr. Rea- concede that tt,eir se ling a fort is _Arder because b.
gan's popularity are the economic expansion and the J).d ps hec : C~st~ar . Weinberger and William J Lwev President's continuing ability to project an image of lead i e DC ecto* of Central s -ybea use of his l te _
t 'tol ership .and statesmanship.On the agenda of a White credibility on Ce Cov n w Mr, Case W bemuse an of his state gout e COth- vert t?ar zri~~ir an_ ham; ",rein-gu.
content of television cam ai cause
house political strategy meeting last Thursday was the berger be of his hard line oa -military *p gn spots to be aired starting (Pentagon budget cutting, page 3.) The White pe House,
May 21. Not surprisingly, they are to emphasize general
meanwhile, of firmness of resolve and confidence in America into the , finances cof Whit be use cou elo by the iM ese
under Mr. Reagan. Commercials with footage from the d' Mr. Rof hine House counselor Edwin Meese
China trip concluded last week and the meeting with. But Administration nominee for Attorney they aeeap
Pope John Paul II in Alaska are to come later in the year., vitality of Mr. Ragan tir. Reagan's re-election siiy hey are pleased
J. R the Rs re rectocampaign.
The White House's instincts are to be cautious. The with
time has long past for bold budget initiatives. The caution' gether Edward d what olinof lls, the solid campaign organization, has there is
will be vindicated if," as expected, Congress to be a solid organvatia, and there is
"down ngress enacts a i talk of surpassing the early projection of enrolling more
payment on the deficit consisting of modest ! than two million new voters to counter the Democratic
spending cuts and tax increases. According to White
House officials, the President is also said to be planning a registration
Houses banking on a season oaf pageantry. The
cautious strategy on nuclear arms talks with the Soviet Presidential cavalcade is embarking June 1 on a trip to.
Union. "Arms control is on the shelf until the Russians the Reagan ancestral home in Ireland, an economic sum_
decide to take it off," said a Presidential aide. "Either mit in London and a celebration of the4Oth anniversary of
way, it's not a political problem for Reagan."
DD
h
ay on t
e beaches of Nod Ski
-rmany.peang of the
China trip, Michael K. Deaver, the White House's chief
image-maker, said last week, "We've really got our work
cut out for us to top this one in Europe."
STAT
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 1~ ` ICI~E ~' yet Approved For ReleasUT25/TTMW,13CIA-RDP91-009011000400030002-2
ON Pb.(zE._._. 5 May 1 98l
9lil?llllllT
the Bonker measure passed by a voice x ore last
shI g ton year.
The Garn-Heinz bill, on the other cane, would.
tighten controls over trade that would asist the
Communist bloc, transferring enforceme it from
Commerce to Customs and giving the Dep,mment
of Defense far greater authority over what high-
tech items should be sold to Western companies
which, in turn, might be eager to illegally divert
such goods behind the Iron Curtain.
What is astonishing is just how much the Soviets
are getting because of various Administration ef-
forts to promote - or failures to contain -
East-West trade. In a remarkable, but little
noted speech before the Commonwealth -'tub in
California on April 3, CIA Director William
Casey painted a scarifying picture of how the So-
viets were obtaining Western technology to build
up their awesome military system. The following is
a small excerpt from his speech:
"'During the fate 1970s, the Soviets got about
30,000 samples of Western production, equip-
ment, weapons and military components, a.,d over
4(X),000 technical documents.. both class.ifie.d and
unclassified. The majority was of U.S. origin, with
an increasing share of our technology obtained
through Western Europe and Japan.
"This truly impressive take was acqui ed by
both legal and illegal means, including esp,onage_
We estimate that during this period, the k,GB and
its military equivalent, the GRU, end their surro-
gates among the East European intelligen e ser-
vices, illegally stole about -10 per cent if the
technology., most significant to Soviet n ilitarv
Casey'sEye-Opener
flow The Soviets
fret Our Technology
Senate and House conferees are still struggling
over which version of the Export Administration
Act should pass: the House version, authored by
Rep. Don Bonker (D.-Wash.), one of the most
liberal lawmakers in Congress, or the legislation
largely co-authored by Senators Jake Garn (R.
Utah) and John Heinz (R.-Pa.).
The Bonker bill, as HUMAN EVENTS has
previously reported, radically weakens restrictions
aimed at preventing liigh-technology items from
winding up in Communist bloc countries. "The
KGB is happy, but I am autgry," said U.S. Com-
missioner of Customs, William Von Raab, when
equipment and weapons programs.
-The Soviets had our plans to the
before it flew.
--The Soviet trucks which rolled into A e,han-
istan came from a plant outfitted with $1.5 'illion
of modern American and European machin:-r' .
"-The precise gyros and bearings in their latest
generation of ICBMs were designed by us.
--The radar in their AWACS is ours.
-Their space shuttle is a virtual copy of or,rs_
-And the list goes on and on.
Continued
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STAT
 Approved For Release 2005/11/28 : CIA-RDP91-00901 R000400030002-2
"Just how do the Soviets get so much of our
technology?
"First of all, they comb through our-open
literature, buy through legal trade channels,
religiously attend our scientific and technological
conferences, and send students over here to study.
Between 1970 and 1976, the Soviets purchased
some $20 billion of Western equipment and
machinery, some of which had potential military
applications. In addition to exploiting all open,
legal channels, they use espionage.
"There are now several thousand Soviet bloc
collection officers at work primarily in the United
States, Western Europe, and Japan. And as. I
stated before, your firms here in Silicon Valley are
at the very top of their list. The Soviets especially
pinpoint and target small, highly, innovative com-
panies in the computer and microelectronics field,
not only because they are at the leading edge of the
technologies that Moscow is most in' need of, but
also because such. firms' security procedures are
usually inadequate to protect against penetration
by a determined, hostile intelligence service.
"They also use sophisticated international diver-
sion operations. We have identified some 300 firms
operating froni'more than 30 countries engaged in
such diversion schemes. And there are probably
many more that remain unidentified. Most diver-
sions occur by way of Western Europe, which is
why we have made such a strong effort to enlist the
help of our European allies in combating illegal
trade activities.
"U.S. microelectronics production technology
is the single most significant industrial technology
acquired by the Soviets since the end of World
War II. Silicon Valley and your firms are the
12
primary target of Soviet and East European Intel-
ligence Services. In the late 1970s alone, Moscow.
acquired several thousands of pieces of Western
microelectronics equipment worth hundreds of
millions of dollars in all of the major processing
and production. areas:
"-Wafer preparation,
"-Circuit mask processing,
"-Device fabrication, and
"-Assembly and test equipment, which they
are most in need of.
"With these.gains, the Soviets have systematic-
ally built a modern microelectronics industry. For
example, the. Zelenograd ' Science Center, the
Soviet equivalent of 'Silicon Valley, was equipped,
literally from scratch, with Western technology.-
All monolithic integrated ciruits are copies of
U.S. designs. They even copied the imperfections
contained in some of the U.S. samples!
"The West must organize to protect its military,
industrial, commercial, and scientific commu-
nities, keeping two objectives clearly in view. First,
the West must seek to maintain its technolog;cal
lead time over the Soviets in vital design and manu-
facturing, know-how. Second, manufacturing, in-
spection, and, most importantly, automatic test
equipment, which can alleviate acute Soviet defici-
encies in military-related manufacturing areas,
must be strictly controlled."
The hemorrhaging of our technology to the
Soviet Union may be difficult to stem, but it is cer-
tain to continue-and, indeed worsen-if the Con-
gress ends up embracing anything like the Bonker
measure.
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 --~/' 4 May 1984
Letters to the Editor
Soviet-Cuban gains in Central
America (presumably Nicaragua,
particularly) than 'about reports
that his agency has supervised the
mining of Nicaraguan harbors.
He makes the point that the
rebels seeking to overthrow the
Sandinista regime in Nicaragua,
who only number "perhaps 15,000
men with rifles scattered around
the open, unpopulated parts of the
country..." are likely to fail.
"They can't go ' into the cities,"
he says, "which the government is
protecting with tanks and 75,000
men in the army, the militia and
the security forces."
I wonder if Mr. Casey forgets,
or merely ignores, the fact that the
recent Salvadoran governments
which we have been vigorously and
at great cost supporting have been
responsible for driving out of their
own country. all or most of the
800,000-odd citizens who have al-
ready fled El Salvador and settled
in Mexico, other Central American
countries, the U. S. (about 500,000)
and Canada.
lieves the American public is more
concerned about the wave of immi-
gration that would follow new
Central America It appears to me that the ex-
treme right wing governments that
Editor: Central Intelligence we usually support often create far
Agency director William J. Casey's larger waves of immigration than
logic escapes me. He says he W,4 some governments of the left.
If the anti-government forces in
Nicaragua can muster only 15,000
men who are willing and able to
fight, as against 75,000 who fight
for the government,. maybe we
should rethink which group is more
legitimate by virtue of which real-
ly owns the hearts and minds of the
people.
As with Vietnam, Chile and
elsewhere, I suppose we shall nev-
er learn to, stay out of other coun-
tries' elections and civil wars .(or at
least to pick the right side if we
must be foolish and intervene).
We usually always listen to the
hawks who cry out slogans such as
"possible - Communist takeover"
and "domino theory" and the like!
Why are we so easily led down
the "garden path?"
Irwin H. Desser.
Baltimore.
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STAT
 Y
ON SAGE e4 - 4 lfa& I of
coed For Release 2QQ5/~Y?
? DP91-0
!1z, ~!'. 1.L.I~:~.IJ
REAGAN MAY PRESS
FOR SALVADOR AID
Aides Expect the President to
Give TV Address and Put
Blame on Congress
By STEVEN R. WEISMAN
speciiltDTWNewYorkTtma_...`._.,?
WASHINGTON, May 3 White
House officials, alarmed about the
military situation in El Salvador, ex-,
pert President Reagan to give.a tele-
vised address this month charging that,
Congress will be to blame if the Salva-
doran Government is not given the
military aid he says it needs.
"It's extremely important that the
President lay it out for the American
people so they know what's involved,"
a senior White House official said
today. 'Me people should know that if
El Salvador goes down the tube, it'll be
the result of the failure of appropria-
tions by Congress."
Tne soi:.rce of concern among White
House aides was said to be. recent intel-,
figence reports that a ma`ot r Cuban-
s cored gilerri la offensive is being
Manned in Ell Salvador this fail, timed
for h~etnt of the American elect2on
aamuati.
McFarlane Said to Be Worried
A White House official said Robert C.
McFarlane, the President's nationalI
security adviser, had become ex-
tremely concerned that El Salvador
could go "down the drain" unless there
was a drastic increase in military aid.
He said Mr. McFarlane had been
pressing since before Mr. Reagan left
for China last month for a speech to a
joint session of Congress appealing for
his military aid package, which is fac-
ing major difficulty in both the House
and the Senate.
Earlier this yeadr, Mi .. Reagan asked
for $93 million in military assitance to
El Salvador.. The Republican-con-
trolled Senate approved only $63 mil-
lion. After the House wtnild not approve
any money before its Easter recess, the
Administration channeled $32 million
to El Salvador under the President's
emergency powers.
White House aides suggested the
Three officials said both James A.'
Central America situation was the big-
Baker 3d, the White House chief of
gent difficulty Mr. Reagan faces now
staff, and Michael K. Deaver, the
thathe is back from what China.
deputy chief of staff, had opposed hav-
The President, exhausted from thel
ing a speech to a joint session of Con-
trip and a one,-day stopover in Fair-1
gress. But one official said Mr. Bakery banks, Alaska, to see Pope John Paul,
favored some kind of a televised ad-; II, flew to the Presidential retreat at
-dress, perhaps from the Oval Office. Camp David, Md., for the weekend.
Several officials said Mr. McFarlane ! White House aides said he would prob
was supported in his concern by Secre.- ably receive a recommendation on the
terry of State George P. Shultz, Defense format of the
speech this weekend.
d
Secretary Caspar W. Weinberger an Wiliam J. Casev Director of Central
~nteiligence. .
`Need to Show It in May'
The White House is understood to be
debating waether Mr. Reashould
go c to congress an as for the
on inarz ai ii1 on n tare asstggI
ance, given the latest intelligence re-
nts of the situation in El Salvador.
The amount Mr. Reagan plans to re-
quest is said to be unresolved.
Some Frustration Reported
Several White House aides said there
had n some tivrorig tsp.
members of the President's staff oven
A White House official said; ,"The na- tale performance o both Mr, H
c&y
ard
tional security community believes ?Mr. Weinberger ' or aid in
that we need to show commitment, and
we need to show it in May `because of y said both officialc had lost c~ed-
the problem that is coming in Septem. ibiiity beca?ce aj ~, it d ~lin.g w;th
her and October." - members of Congress on various issues
Another official, however, said Mr.' = f,~ase`v because of his statements
Baker and Mr. Deaver, the leading about covert assistaag- t c ?
strategists at the White House for Mr. Nicaragua and Mr. Weinberger be-
Reagan's -re-election campaign, were cause of his fights over the military
concerned that a major push on Central budget.
America could cost the President pout-! Key officials said the degree to which
ical support. Mr. Reagan pushes for a military aid
"Right now, we get heavy negatives package to El Salvador is likely to be a
on our Central America policy," a .test of Mr. McFarlane's influence in
White House aide said, alluding to pub- , the White House. Mr. McFarlane was
lic-opinion polls. "But it's not very high: named national security adviser last
in the public's consciousness. The con-1 October, succeeding William P. Clark,
cern is that if we make a big deal out of who was named Interior Secretary. .
it, we won't change anyone's mind and Mr. Clark was known in the White
we'll just invite people to dump on us." House for taking a hard line on aid to
He added, "The staff is at odds over Central America, and he fought Mr. 1
what's the payoff for a big push by the Baker and Mr. Deaver on this and
President." - other issues. 1
i
' "Bill Cl
ark was somebody whould
Preserving Democracy
co Another official, however, said Mr. go in to the Oval Office, close the door
and say to the Pm idpnt that ho 1. A t.,
a
ree at majo
g
- " ` i do this," a White House aide said. "Itt
drive on behalf of the military aid pack-II remains to be seen if Bud is able toll
age was in order. He said Mr. Baker 1 "
felt that Central America was an un-. have that sort of clout
avoidable political issue and that it
could be won if the President put it in
terms of "the issue of preserving
democracy.".-
STAT
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 Y
Oh' PAGE L-/p l+ May 1984
ARTICLE APPS roved For Release M?JW~? : 1-RDP91-00901R09
congress failed to check
CIA
in study past, says
WASHINGTON (AP) - Con- after William J. Casey, the CIA di-
gress made "virtually no effort" to rector, acknowledged last week
check on the Central Intelligence that he had not adequately briefed
Agency's activities in Southeast the panel about the agency's super-
Asia during the years that led to vision of the mining of Nicaraguan
U.S. ? involvement in the Vietnam - ports.
War, a congressional report said The study, prepared for the For-
yesterday. eign Relations Committee by Li-
The Senate Forei R I ti
n e
b
g
a ons
Committee's issuance of the study
coincided with a meeting of the
Senate Intelligence Committee to
tighten its monitoring of the CIA in
Central America and elsewhere.
The report also came amid ris-
ing concern in Congress that the
Reagan administration's policies
for combating communism in Cen-
tral America could lead to a Viet-
nam-style war in the region.
The Intelligence Committee
called yesterday's closed meeting
rary of Congress researchers
,
highlighted both similarities and
differences between congressional
oversight of the CIA now and in the
1950s. I
"Although the agency's role in
Indochina was and continued there-
after to be very active, there was
virtually no effort made by Con-
gress during this time to examine
what the agency was doing or the
consequences of its activities, or to
exercise any control over those ac-
tivities," the report said.
STAT
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 DTI~t~ 'ap oved For Release,, 5&.J#A?r q#jRPJP1-09~170
ON PACE F / 4 May 19B4 J II
Duarte Victory Could Help
Reagan Effort to Salvage
Central America Aid Plan
By DAVID ROGERS
Staff Reporter of THE WALL ST'REE:T JOURNAL
WASHINGTON - Jose Napoleon
Duarte's likely victory Sunday in El Salva-
dor's presidential election poses a double-
edged sword for President Reagan in his
own war at home with Congress over mili-
t.ary aid to Central America.
Mr. Duarte's moderate, democratic im-
age is a crucial asset for the Reagan ad-
ministration in its struggle to win addi-
tional aid for El Salvador. Yet Air.
Duarte's flexibility toward negotiations
and his credibility among liberals and
moderates in the U.S. Congress also serves
as a reminder of what critics contend is
missing in Mr. Reagan's policies in the re-
gion.
"Duarte has met and talked on policy
issues with more members of Congress
than Ronald Reagan," says-Re-p.- James
Leach (R., Iowa). "The President has
shaken more hands, but Duarte has really
been around."
And even as Air. Reagan seems on the
verge of winning new aid forEl Sahador,
mistrust of the Central Intelligence
Agency's cover war in Nicaragua has
hadh undercut support for that separate
operation. The president has never been
weer or, that second front. The Demo-
cratic--controlled House seems prepared to
force a confrontation, and Air. Reagan is
pitted against a House Intelligence Com-
mittee that commands unusual personal
and institutional ties within the chamber.
Mindful of this, senior Republicans are
urging the President to use the Salvador
elections-and a Duarte victory-as an' op-
portunity to insert himself more directly in
the debate by delivering a major address
on Central America.
"Bring out the map and just get down
to the dang fundamentals," says House Mi-
nority Leader Robert Michel (R., Ill.). Air.
Reagar's close friend. Sen. Paul Laxalt
(R., Nev.), has made the same point in pri-
vate talks with the president. "I think he
has to get out and explain the policy," says
Mr.' Laxalt. "We politicians think that
what we say is so profound that, once the
bet] rings, it rings forever. The interest
span is short out there."
Recent debate has been clouded by the
internal politics of congressional appropri-
ations committees. The effects of the Sal-
vadoran elections may start to become ap-
parent next week when the House leader-
ship is expected to bring the 1985 foreign.
aid authorization bill to the floor. This will
provide an opportunity for votes on El Sal-
vador aid. And though this bill itself may
never clear Congress, the debate will help
determine later action on spending legisla-
tion.
The House Appropriations Committee
Senate before the first round of Salvadoran
elections, the number was cut to $61.8 mil- 1
lion. Now, when the president has a chance t
to get more money, he finds the debate has
been defined in terms of only a third of his
.-original request.
voted Wednesday to ignore a Senate-
; passed bill providing 561.8 million in mili-
tary aid for the Salvadoran regime. But if
Mr. Duarte is elected, Democrats are con-
fident of winning approval for these funds.
Mr. Duarte's effectiveness in El Salvador
has been mixed, but to the U.S. Congress
he remains one of the best-known Central
American leaders and a man capable of
coming to the Capitol and building constit-
uencies for his country.
The debate seems certain to focus less
on the level of aid and more on what condi-
tions will be attached, with critics contend-
ing that conditions are needed to
strengthen Duarte's ability to carry out a
land redistribution program and end hu-
man-rights abuses.
The administration's real frustration is
that, in its rush to win quick approval of
some increased funding, it allowed the
amount to be whittled down substantially
from what Air. Reagan first requested. Af-
ter asking for $178 million, the State De-
partment came in for a down payment of
$92.8 million in March. To buy peace in the
e. prospects are bleaker on funding
for the CIA-backed war in Nicaragua._The
disclosure re in last mmionnth of the agency's di
ing -
oa icaraguan har-
bors hurt ilie-aamintsfration adIy- hY
while CIA Director9Tlia asey has
patched up differences with influential sen-
ators; h_ e and the entire operation are
viewed with more sus icion.
^iF ea rs ~;o a n a enate won't re-
peat itself," sans Sen. Daniel Inouve (D_
Ha_waiii, who played a key role in securing
both the El Salvador money and $21 mil-
lion for the CIA operation "It won't be v
the same margin."'
e House voted twice last year to cut
off funds for Nicaraguan rebels, and ap-
pears determined to enforce a $24 million
ceiling for the current fiscal year ending
Sept. 30. The CIA can't legally spend above
this level, and the issue Dortends a con-
frontation between Congress and thei)resi-
dent.
" "The available funding may be stretched
out until next month, but unless some com-
promise is reached U.S. support for the
Nicaraguan operation \will have to be
ended: Air. Casey, in closed-door congres-
sional testimony yesterday, indicated that
contingency plans haven't been made for
ending U.S. assistance; but the remaining
aid is estimate at less t an 1 mt ton, ac
cording to intelligence sour s;
It is a striking contrast ron, El Salva-
dor. where congressional opposition always
has been more vocal than real, because of
fear of being blamed for a Communist
takeover. In Nicaragua, the mining and
CIA-supervised attacks on oil-storage
tan Ts an a a vadoran suer rtllradio sta-
tion cast the U.S. as the aggressor. a much
less comfortable role for Congress.
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 Approved For Release 20 1W8 QUA F 400030002-2
4 May 1984
ALEXANDER SAYS ADMINISTRATION LIED TO CONGRESS
BY JEFF NECESSARY
LITTLE ROCK, ARK.
CIA director William F. Casey and other administration officials have lied; STAT
to Congress about American policy in Central America, Rep. Bill Alexander,
D-ArK., said Friday.
Alexander, a Democratic leader in the House, recently returned from a
congressional tour of Central America. He said Casey should be removed from the
top spot in the intelligence agency.
The administration has not revealed its plan to Congress," Alexander said
in a Little Rock news conference. ''In fact, Bill Casey and other members of the
administration have lied to Congress about what the policy is. Bill Casey should
be replaced.''
Alexander, who toured the region last week along with Georgia Democrat Wyche
Fowler and Ohio Republican Ralph Regula, said President Reagan has not stated a
clear policy for the region and has bungled his efforts at '"gunboat diplomacy "
through military force.
Alexander suggested a five-part program to bring stability to the region:
An immediate " stand down' ' of all armies.
Installation of a peace keeping force.
The end of all arms shipments from the outside.
-- A summit meeting of Western Hemisphere nations to discuss the existing
problems and work on solutions.
" if our policy is to overthrow the Sandinista government in Nicaragua, "
Alexander said. ' 'we are fighting the wrong enemy. The enemy is not communism.
The enemy is poverty, hunger and years of oppression. What is needed in Central
America is a comprehensive policy to deal with those problems that foment
discontent and cause people to take arms against their government. "
"The Central American leaders say, 'Do not escalate the war in Central
America, the congressman said. ' 'Military policy has failed in Central
America.
Alexander said his discussions with Edgar Chamorro, a leader of the
U.S.-backed Nicaraguan Democratic Force revealed that the CIS, alorto wig
previously revealed covert operations on land and sea, has a secret air force
that is bombing Nicaraguan targets using Salvadoran pilots
" The CIA is managing a war that's too big to hide and too hot to handle, "
Alexander said, adding his belief that the intelligence agency was put in charge
of tn;e Central American operation because the Pentagon wouldn't touch it.
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 ApprovdAfkaLR
;PN PAGE
By Joanne Omang and Don'Oberdorfer -
w~nt
,acst~r whc
e~
Rep 'William F. Goodhng{R, P&), amem
her of the House untelligenceCOmniitte _e, yes
' td:wed foh
eray-r te -resignation "of CIA h -
rector' Wtllram = Casey{