DEMOCRATS: GOP IS FULL OF CORRUPTION

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CIA-RDP91-00901R000400050001-1
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March 30, 1984
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ARTICLE APPEA*Wroved For Rel 11/~8I ~~P91?117 1 OQ 0 001-1 ON PAGE 30 March 198 ~~ D Cc,; m, 0 % - c r a - 1. Q IS of corru- on By Ira R. Allen United Press International WASHINGTON - The Democrats have launched a broadside attack against the Rea- gan administration, releasing a new televi- sion commercial depicting "'more scandal- tainted officials than we've seen since Richard Nixon and Watergate." While White House spokesman Larry Speakes declined to repeat his challenge of last week that reporters compare the mis- deeds of the Reagan administration with those of his predecessors,. the Democratic Congressional Campaign Committee showed an ad opening with a color picture of Presi- dent Reagan, followed by black-and-white "mug shots" of eight top officials. A voice recites: "Sweetheart loans. Hidden financial deals. Abuse of privilege. Secret gifts. Insider stock trading. Mineral-rights giveaways. Blacklists. Perjury. More scandal- tainted officials than we've seen since Rich- ard Nixon and Watergate. This is moral lead- ership?" Rep. Tony Coelho (D., Calif.), committee chairman, said the collection of more than 50 cases of questionable conduct by Reagan aides had "the potential of doing significant damage to the President's re-election efforts ... because his is an administration that worships greed." "They believe that the profits of greed will trickle: down," he said. Coelho said the ads would start running this week in the Washington area and would be placed in various regions of the country later. Earlier, Speakes said he did not know whether the charges of improper conduct would hurt the Republicans. "It depends on what the Democrats want to do with it," said Speakes, who last week said the number of cases was not "inordinate." Coelho said that the current investigation of White House counselor Edwin Meese 3d's finances and his role in the theft of 1980 Democratic campaign information was a cata- lyst for the ad campaign. But he also said that he had been harping on what Democrats call "the sleaze factor" for almost a year. The officials pictured in the ad are Meese, CIA Director William J. Casey, who was em- broiled in the Carter brie ing-papers case and was found to have acquired stock. in companies doing business with the CIA; for- mer Veterans Administrator Robert P. Nimmo, who used public money to refurbish his office; former national security adviser Richard V. Allen, who resigned over conflict- of-interest charges after he accepted two wristwatches from Japanese friends; former national security staff member Thomas C. Reed; former Secretary of the Interior James G. Watt; U.S. Information Agency Director Charles Z. Wick, and former toxic-waste chief Rita M. Lavelle, who was found guilty of lying to Congress. A list of others is printed on the screen over Reagan's portrait: former Assistant Agri- culture Secretary John B. Crowell Jr., former Deputy Commerce Secretary Guy W. Fiske, former EPA chief Anne McGill Burford, for- mer Assistant Secretary of State James L. Malone, former Assistant Housing and Urban Development Secretary Emanuel S. Savas, for- mer Food and Drug Commissioner Arthur Hull Hayes, former Housing and Urban De- velopment Undersecretary Donald I. Hovde and former assistant EPA chief James W. Sanderson. Asked about a possible backlash from the unsubtle, negative tone of the ad, Coelho said, "I don't think the truth is negative campaigning. We're talking about moral lead. William J. Casey i,i briefing-papers flap Approved For Release 2005/11/28 : CIA-RDP91-00901 R000400050001-1 UNITED PRESS INTERNATIONAL Approved For Relea;eMM6 '1~1 : CIA-RDP91-00901R00040 BY LAURENCE McQUILLAN FRE Walter Mondale today said his constant attacks on Gary Hart are justified questioning of his rival's stands on major issues, but Republican National Chairman Frank. Fahrenkopf criticized the Democratic primary feuding, In Washington, Fahrenkopf issued a statement condemning a Democratic advertisement attacking President Reagan and his aides. He also criticized the Democratic contenders for bickering among themselves on the campaign trail. "Voters demand a higher standard than the Democrats recently have Evidenced,'' he said, adding that he does not think the public will tolerate " the recent attempt by the Democrats to sling mud on President Reagan and the Republican Party.'' The House Democratic Campaign Committee is running an ad showing mugshots of Reagan administration officials, including attorney general nominee Edwin Meese and CIA Director William Casey, who have been accused of improprieties. " It is interesting to note that for all the Democrats' self-proclaimed interest in compassion for society as a whole, they feel absolutely no hesitation from engaging in character assassination at the individual level, " Fahrenkopf said. "This lack of decorum is not only aimed at Republicans, " he said. ''The Democratic campaign for president has been dominated by personal attacks by one candidate against the other.'' EK.GE i PTF Y Approved For Release 2005/11/28 : CIA-RDP91-00901R000400050001-1 Approved For Release 2005/11/28 : CIA-RDP91-00901 R00040~050001 -1 ARTICLE LFFrJ, '= CHRISTIAN SCIENCE MONITOR OI FLG~._ __.__ : 30 March 1984 The M~ese case: law and politics PRESIDENTIAL counselor Edwin Meese III i should seriously consider withdrawing his name from consideration for US Attorney General. This is said with compassion for Mr. Meese, a loyal and dose aide to Mr. Reagan for many -years, and with- out prejudging the outcome of a special counsel's'inquiry into various allegations against Mr. Meese. The allega- tions fall generally into four categories: that Mr. Meese or his wife received loans or financial assistance which were not properly reported, that job. appointments may have been influenced by the loans, that Carter campaign documents circulated through his hands, and that be re- ceived a military reserve promotion he did not merit. Much of this questioned activity occurred before the Reagan administration's official startup. Mr. Meese is caught between two processes, the legal and the political. The legal, with the Justice Depart- ment's asking a three-judge federal panel to name a spe- cial prosecutor to conduct a broad investigation, will nec- essarily move forward to conclusions on the charges. Judgment on all or most of the questions should properly come through this process. The American system's pre- sumption of innocence should be kept in mind. The political course of Mr. Meese's case follows a dif- ferent set of forces. As a practical matter, administra- tions closely watch the public reaction when a nominee or a member of the team gets into trouble. This is no less true even when a president vigorously continues to back the individual, as Mr. Reagan has Ed Meese. A time comes for what is rather callously called "damage con- trol" - when an administration tries to preserve its po- litical capital and cut its losses. Perhaps if Mr. Meese's qualifications for the office were more pronounced and if the set of circumstances he finds himself caught in did not suggest a vulnerable if not culpable approach to responsibilities, Mr. Reagan could be expected to insist Meese tough it out in the political as well as legal arena. Even if more time remained before the presidential campaign heated up, the administration could invest more time in the Meese nomination. As it is, the nomination has become a lightning rod for rehearsing the list of Reagan administration appointees who have come under clouds, from National Security Adviser Richard V. Allen and CIA chief William J. Casey to Deputy Defense Secretary W. Paul Thayer. Of the dozen or more accused of various improprieties, -only Rita M. Lavelle, head of the Environmental Protection Agency's hazardous waste cleanup fund, was found guilty, and then of perjury. This line of attack now merci- lessly focuses on Ed Meese. The overriding responsibility of President Reagan in this matter is to ensure that the Justice Department be headed by an individual not only loyal to him, but able to command confidence on his own that he is qualified to run the highest law-enforcement office in the nation. The current attorney general, William French Smith, wants out. His staff is resigning. The department cannot drift until after the election or to the end of this term. Mr. Meese can still rightly seek vindication of his reputation if he steps out of line for the appointment at this time. STA Approved For Release 2005/11/28 : CIA-RDP91-00901 R000400050001-1 STAY ARTICLE APftgMed For Rel 2OB /iri S CIA-RDP91-00901 ON PAGES 30 March 1984 'U.S. Aides Say Iraqis Made Use, Of a Nerve Gas' Assert Lab Gear Came From West Germans By SEYMOUR M. HERSH Special to The itew York Time WASHINGTON, March 29 - United States intelligence officials say they have obtained what they believe to be incontrovertible evidence that Iraq. has used nerve ear in its war with Iran and i5 nneaarincompletion of er tensivesites for the mass production of the-lethal chemical warfare agent. Pentagon, State Department and in- telligence officials said in interviews this week that the evidence included documentation. that Iraq has been buy- ing laboratory equipment from a West German company, purchases that are believed to be linked to Iraq's nerve 1 gas production plans. The intelligence also shows, the offi- cials said. that Iraq has as many as five dispersed sites for the storage produc- don sembly of nerve gas- p- ens. Without intervention, these offi- cials said, Ira is estimated to be weeks or months away from the ability to mount major chemical attacks against Iran's far more numerous troops. Deep Underground Bunkers - Each of the sites, the officials said, has been built in deep underground bunkers, heavily fortified by concrete, that are reported to be six stories below the surface. Officials said the Iraqi concern appeared to be protection from an air attack. Neither the White House nor the State Department would formally com- ment today on the inte ence infor na- l If full-scale chemical war develops, one senior American official said, "the genie is out of the bottle." He added: "Arms control is down the drain. And we've got our forces completely at risk." The official warned that because of the nature of chemical weapons, huge doses of which can be transported in small canisters, it would be virtually impossible to effectively monitor the spread of such weapons to other coun- tries. In 1969 the United States reaffirmed. its renunciation of. the first use of chemical warfare, and it later reduced its preparations to defend against a chemical war. The United States has accused Iraq of using chemical weap- ons in the war with Iran, but Baghdad has denied the charge. A senior official said this week that the Joint Chiefs of Staff had been asked to provide what he termed a "prelimi- nary look" at the feasibility of an American air strike on the fortified sites, but, concluded there were not enough American aircraft in appropri- ate locations. This official went on to say that there were many in the Government who, re- calling the successful Israeli air attack in 1981 on what was determined to be an Iraqi nuclear plant, would like to see the Israeli Air Force attack again. Some sensitive high-level conversa- tions on the issue between the United States and Israel have already taken place, the official added. This information could not be con- firmed, although many American offi- cials, in interviews, volunteered their personal judgment that such an attack would be. one welcome solution to the problem. , A senior State Department official described his frustration over the issue. "It's not lack of knowledge at high levels," he said. "It's been in all the high-rollers' briefing books. The Iraqis appear to be ready to do any- thing. The question is what do we do? Should we cast a major air strike? That's a big move." The official ac- knowledged hearing "speculation" that the Israelis might be "ready to move," but added that such talk was in. his view only talk. The intelligence, which was provided from sources depict as mom" tier antnon-si e " as been repeatedly and orb c efit y Presented to President Rea- gan in the last week, the officials said, wit douse notyet providing policy guidance. Offycials saiittiat on three occasions within the week the Central Intelli- gence Agency, to dramatize its concerti over the intelligence, had emphasizeeed or "red lined," the relevant informa. tion on rap's chemical war abilities in the Preident's daily intelli ence brief, one of the most highl classified docu-. s >~ient in __e_Gover~. yTnet.ii5. inf9l- iaiaian rpar.~d 2yerRigliL by the C.I.A. and presented earleach morn- , Trig to the president: Praise for C.I.A. Director i One official, reflecting the frustra. tion o man~in t e Intel _igence iel3, pp raised William J. Casey, the Director I O PC liav`ing 't- e is to stari~ an i t addin "He's given the correct information to thWhite House ans up to fFem. The State Department said on March 5 that the United States had concluded that the available evidence indicated that lethal chemical weapons were being used by Iraq against Iran, in violation of the Geneva Protocol of 1925, which Iraq agreed to adhere to in 1931. At the time of the statement an Administration official said the chemi- cal weapon being used by -the Iraqis seemed to be mustard gas, a blistering agent. At that time Iran accused the Iraqis of using nerve gas and nitrogen mustard, but the Administration said there, was no evidence Iraq had used nerve gas. One reason for hesitation over the issue a White House official aclo-iowl- edged, is the traditional concern of in- telli ence o thcia s f or the protection of "sources and methods." The specific in' oation about the extent of Iraqi nerve gas deve oment is said to bavg been derived from unusually sensitive sources. A major diplomatic complication confronts the Administration, officials say. American intelligen_ cagencies. have identified Karl Kolb, a cit~Dtifjt and technical supply cornpi~ Dreieich~ West Germany,, as being re- sponsible for the sale and slip~of sophisticatedIaboratoN eguip>~iea~t t~fiat, intelligenceoff>cials saS'. has . bgen used - ap renlly.'~ithout thp ppmpanv's owledge - to aid the Ir_aai Goyergrz erJt tcclat_id=tile ability to develop a nerve as. Sales o equi me nt considered by American of- ficials to essential to itie Iraqi ort were said to have taken place over a period of at least two years with the ! cnemil com f~bg j export pany licenses obtaimng from the ~ West required German Government before shipment . - Evidence Presented to Bonn Sometime within the last month, offi- ciais said. -intelligence officials o tained evidence directly link-in the company's shipments to Iragi _eveTo tneAt of,J?er_Yez,as. The C.I.A. relayed some of its infor- mation and its concern directly to th e nited States Embassy in Bonn. an o ficia.l said, which in turn made a diplo- matic regresentatio to the W_esLG r Irian Government. The official Ameri- Continued STAT Approved For Release 2005/11/28 : CIA-RDP91-00901 R000400050001 -1 TA Approved For UNI BY JOEY LEDFORD WASHINGTON 1~RDP9=vU901 R0004000M Sen. Sam Nunn predicted Thursday that whoever is elected president in November will "spend the next two years asking the American people to sacrifice'' to deal with massive budget deficits. Nunn's comments came during a wide-ranging discussion of the issues wi.tir Georgia reporters in his Capitol Hill office. The Georgia Democrat said the current odds favor President Reagan in his bid for re-election "given a constant economy. " But Reagan's $200 billion budget deficits are spelling disaster for the future, he said. "I think we're playing Russian roulette with the American economy,'' he said. ' And Congress has given the appearance of giving enough bullets to fill the other chambers.'' Reagan, charged Nunn, "doesn't have any plan, to deal with the deficits. And both sides, including his Democratic colleagues, "are misleading the American public on the deficits.' ' Nunn said the Democratic presidential candidates are fooling themselves if they think they can deal with budget deficits by cutting only defense. ''It may be goad politics to ignore this issue in an election year, but it's poor government, " Nunn said of Reagan. ''The next president is going to spend two years asking the American people to sacrifice," he said. ''We're going to have some real disillusionment next year.'' Nunn said he had no preference among the Democratic candidates, quipping that he is "still thinking about giving a full endorsement to (Sen. John) Glenn.,, The Georgian also said American budget deficits pose a serious threat to the Third World, which has credit problems of its own. ''The U.S. deficits are sewing the seeds of revolution ... in some of the very countries that our military budget is designed to protect, '' he said. Communist takeovers could occur because of ''economic reasons.'' Continued Approved For Release 2005/11/28 : CIA-RDP91-00901 R000400050001-1 Approved For Release 2005/11/28 : CIA-RDP91-00901 R000400050001-1 +2 Nunn conceded cuts will have to be made in defense, but said the American public isn't aware that Congress ended up giving Reagan increases of only 3 to 4 percent in the military budget last year. The senator said he is "leaning against' ' the nomination of Edwin Meese as attorney general because of the ''habit of President Reagan to appoint people who have been running his campaigns to the most sensitive positions in government. " Ke likenP~ th~_r~eP~P nomination to that of William Casey, another former Reagan campaign manager, as head of the en.ra Intelligence Agency. Nunn also said he would probably co-sponsor legislation to open military spare parts contracts to small and medium-sized firms. He also supports the $60 million aid package for El Salvador. Nunn reiterated that he has no interest in being a presidential running mate and also said he would turn down the job of secretary of defense should a Democratic president come calling. '' I wouldn't give up the Senate for any cabinet position,'' he said. Approved For Release 2005/11/28 : CIA-RDP91-00901 R000400050001-1 ARTICLE APPA ON PAGE cued For Rele 14A . 91-00901 Ro00040 50001-1 A 29 March 1981. f j[j UUGI~ Candidates spar on foreign policy From Inquirer Wire Services NEW YORK - The Middle East and Central America were the dominant issues in the presidential campaign yesterday as the three Democratic candidates prepared for a nationally televised debate least night. The debate came just six days be- fore the New York primary, which, with its 252 convention delegates, is the biggest prize so far in the, topsy- turvy race. Walter F. Mondale, Sen. Gary Hart and the Rev. Jesse Jackson were in this nation's history in 'terms of A voice recited: "Sweetheart loans. presidential leadership demanding Hidden financial deals. Abuse of those who serve in high public office privilege. Secret gifts. Insider stock to meet the highest standards of eth- trading. Mineral rights giveaways. ics and commitment to public stew- Blacklists. Perjury. More scandal- p . tainted officials than we've seen ardshi "We have had for. 36 months a since Richard Nixon and Watergate. systematic message come out of This is moral leadership?" Washington from the highest levels. Rep. Tony Coelho (D., Calif.), cam- of public office, and that message is paign committee chairman, said the' personal greed: Take what you can, collection of more than 50 cases of however you can, in whatever way questionable conduct by Reagan you can," he said. "I think it is time aides has "the potential of doing sig- we had people serving in the public nificant damage to the President's CBS television and moderated by Dan Rather. In campaigning since last Tues- interest " _ __._ ~u uuauauauu aauvu ~ 4I1 .......yu greed." Hart called on Reagan to withdraw- "They believe that the profits of f White House coup- i ti h on o na e nom t greed will trickle down," he said. day's Connecticut primary, Hart has selor Edwin Meese 3d to be attorney Coelho said that the current inves- called his landslide victory there a . general. Meese's nomination has tigation of Meese's finances and role signal that "voters reject a foreign raised questions in Congress about policy of continued military . pres- his .financial and other dealings. in receiving documents from the ence in Central America, with the That theme of ethical misconduct 1980 Democratic campaign was a cat- possibility of the loss of American was hit even harder by the Demo- alyst for the ad campaign, but that. he lives." He contends that Mondale has ` cratic Party, which yesterday re- has harped on what Democrats call year. "missed the lesson of Vietnam" that leased a new television commercial The "the offisleazeciaalls pictured s for almost ai in n ta ad are the U.S. cannot resolve foreign poll- depicting the Reagan administration T the h Meese CIA director William J Casey cy matters through military involve- as containing "more scandal-tainted went. officials than we've seen since Rich- Hours before the debate, Hart had and Nixon and Watergate." a private meeting with French. Presi . White House spokesman Larry dent Francois Mitterrand in New Speakes declined to repeat his chal- York. The session was requested by lenge of last week that reporters Mitterrand, who is wrapping up his compare misdeeds in the Reagan ad- week-long visit to the United States. ministration with those of Its prede- In a speech to a Wall Street audi cessors. ence, Hart denounced the Reagan. The Democratic Congressional administration as "one of the worst Campaign Committee showed an ad opening with a color picture of Presi- dent Reagan followed by black-and- white "mug shots" of eight top offi- cials. former Veterans Administrator Rob- ert Nimmo, former national security adviser Richard V. Allen, former na- tional security staff member Thomas Reed, former Interior Secretary James G. Watt, U.S. Information Agency Director Charles Wick and former toxic waste chief Rita La- velle. A list of others is printed on the screen over Reagan's- portrait Approved For Release 2005/11/28 : CIA-RDP91-00901 R000400050001-1 Approved For Release 2005/11/28 : CIA-RDP91-00901R0004000 ARTICLE APPEAR. ON F.AGEr., NEW YORK DAILY NEWS 29 March 1984 S Washington (News Bureau)-Congressional Democrats yesterday unveiled a TV campaign commercial that seeks to exploit what former Vice President Walter Mondale called "the sleaze factor" of the Reagan administration. The 30-second ad, which will be aired only in the Washington area at first, charges the- administration is "riddled with scandal" while President Reagan offers only part-time leader- ship, It reviews allegations about Attor- ney General-designate Edwin Meese's "sweetheart loans" and the misdeeds of six of President Reagan's other aides, and concludes: "More scandal-tainted officials than we've seen since Richard Nixon and Watergate. This is moral leadership?" Rep. Tony Coelho (D-Calif.), head of the Democratic-Congressional Commit- tee, said the "sleaze" ad was designed to make Reagan accountable for the actions of his subordinates. Reagan's "is - an administration that worships greed, whether you're talking about the Reagan tax policy, the Reagan budget policy or the Reagan ethics policy," Coelho said. COELHO SAID more than 50 admin. istration officials had been charged with official. misconduct, abuse of pri- vilege, financial improprieties or other types of unethical behavior. In the ad, past and present adminis- tration officials are _ shown in snap. shots with their names listed under- .. neath as an announcer recites allega- tions against each. Besides Meese, others mentioned in the ad include: ? CIA chief William Casey, whose stock-trading, activities in 1982 and re- fusal until recently to put his multimil- lion-dollar holdings in a blind trust have raised eyebrows. ? Richard V. Allen, former national security adviser, who resigned after it was disclosed he had accepted gifts of watches and $1,000 in cash from Japanese reporters and failed to disclose them. ? Thomas Reed, who resigned from the National Security Council after he acknowledged he parlayed. a $3,125 investment into a $427,000 profit, re- portedly because of illegal insider stock trading. ? Charles Z. Wick, long-time friend of Reagan and head. of the U.S. In- formation Agency whose staff de- veloped "blacklists" of liberals who should not be allowed to speak or appear in USIA programs overseas. ? Rita Lavelle, former Environmen- tal Protection Agency official recently .convicted of lying to Congress. Approved For Release 2005/11/28 : CIA-RDP91-00901 R000400050001-1 Approved For Release 2005/11/28 : CIA-RDP91-00901R00040005 A.TICLE APPEAE:": ON PAGE__ A'-- / Lj WASHINGTON POST 29 March 1984 nLE?NLY - d em - ocrat-s' Attack Administration for iwshiping Greed' By Ira R. Allen United Press International The Democrats yesterday launched a broadside attack on an administration that "worships greed," releasing a new television commercial depicting "more scandal- tainted officials than we've seen since Richard Nixon and Water- gate." . - . While White House spokesman Larry Speakes declined to repeat his challenge of last week that reporters compare Reagan administration mis- deeds with those of predecessors, the Democratic Congressional Campaign Committee showed an ad opening with a color picture of President Reagan followed by black-and-white "mug shots" of eight top officials. A voice recites: "Sweetheart loans. Also in .New York, former vice president Walter F. Mondale charged that Reagan, more than any other modern president, "has turned his back" on_ the problems of work- I ing people and ? the vulnerable. "If you finally become hungry, he calls you 'hustlers.' If you're homeless, it's because you like it that way," he said. Rep. Tony Coelho (D-Calif.), chairman of the- Democratic cam- paign committee,. said the new ads will start running this week, in 'the Washington area,and will be placed in various regions of the country. lat He, said the -collection of more than 50 cases of questionable con. duct by Reagan aides has "the po- tential of doing 'significant damage to the president's reelection efforts .. because his is an administration that worships greed." "They believe that the profits of greed will trickle down," he said. Coelho said -tbe investigation of White. House counselor Edwin .Meese 111's finances and role in the theft of '1980 Democratic campaign information was a catalyst for the ad campaign, but that be has harped on what Democrats call "the sleaze fac tor" for almost a year. . The officials pictured in the ad' are Meese, CIA Direc r William J. Casey, former Veterans Administra- tor Robert Nimmo, former national" security affairs adviser Richard V. Allen, former national security staff member Thomas Reed, former in--' tenor secretary James G. Watt, U.S. Information Agency Director Charles Z. Wick and former toxic waste cleanup chief Rita M. Lavelle. A list of others' is printed on the 1 screen over Reagan's portrait: former assistant agriculture secretary John Crowell, former deputy commerce secretary Guy Fiske, former Envi- ronmental Protection Agency chief Anne. M. Burford, former assistant' secretary of state James Malone, for- mer assistant housing and urban de- velopment secretary Emanuel Savas, former food and drug commissioner Arthur Hull Hayes, former housing and urban development secretary Donald Hovde and former assistant EPA chief James Sanderson. Earlier, Speakes said he did not know whether charges of improper conduct would hurt the Republicans. "It depends on what the Democrats want to do with it," said Speakes, who last week said the number of cases is not "inordinate." House Speaker Thomas P. (Tip) O'Neill Jr. (D-Mass.) said, however, "I would say -it's going to be an issue. We're not trying to make it an issue. The American people make the is= sues" Approved For Release 2005/11/28 : CIA-RDP91-00901 R000400050001-1 Hidden financial deals. Abuse of privilege. Secret gifts. Insider stock trading. Mineral rights giveaways. Blacklists. Perjury. More scandal- tainted officials than we've seen since Richard Nixon and Watergate, This is moral leadership?" The announcement of the new ads, coincided with similar attacks on the administration from two of the three candidates seeking the .1984 Dem- ocratic presidential nomination. Sen. Gary Hart (D-Colo.) picked up the theme while campaigning in New York. "We have had for 36 months a systematic message come out , of Washington from the highest levels of public office and that message is personal greed: Take what you can, however you can, in whatever way you -can," he said. He.added that the . administration has been "one of the worst in this nation's history" in the. area of ethical conduct. CBS EVENING NEWS Approved For Release 200?t1YgBChCP91 CAMPAIGN '814/ PLANTE: This is political hardball. DEMOCRATIC PARTY DEMOCRATS COMMERCIAL (Voice of Announcer): He said he'd bring a new morality to government, but look at the list of charges. (Photo: Edwin Meese) Sweetheart loans, (Photo: William Casey) hidden financial deals, (Photo: Robert Nimmo) abuse of privilege. (Photos: Richard Allen, Thomas Reed) PLANTE: A new commercial from the Democrats, inspired by Ed Meese's problems, trying to make ethics a campaign issue in 1984 by attacking the Reagan administration's record of appointments. VOICE OF ANNOUNCER: This is moral leadership? Vote Democratic. PLANTE: Gary Hart and Walter Mondale, fighting for the chance to oppose Ronald Reagan, have both taken up the issue when they haven't been battering each other. GARY HART (Democratic Presidential Candidate): Day by day, with every new scandal, the president pursues his policy of making the world safe for hypocrisy. WALTER MONDALE (Democratic Presidential Candidate): Almost every couple of weeks, another rotten apple falls out of the tree, and it's just, it's kind of what I call the 'sleeze factor' that's going on here. PLANTE: It isn't just Ed Meese. There are more than 40 Reagan administration appointees whose ethics have been the subject of controversy. Those who have resigned include Richard Allen, national security adviser, who said he forgot to turn in gifts of cash; Anne Burford, Environmental Protection administrator, who allegedly played industry favorites in toxic. waste cleanup; Michael *Cardena, Small Business administrator, for alleged improper grants. He was later cleared. J. Lynn Helms, Federal Aviation administrator, while under investigation for improper business practices before he came to government; Matthew *Geld, deputy director of the CIA, because of stock deals before he took office; Rita Lavelle, assistant administrator of the EPA, convicted of perjury; Robert D. Nimmo, head of the Veterans Administration, because of government funds used to decorate his office; Thomas Reed, deputy at the National Security Council, accused of insider stock. trading before taking office; Paul Thayer, deputy secretary of defense, who is fighting charges of insider stock trading. Other Reagan appointees have remained in office following allegations of improper conduct. William Casey, CIA director, traded millions of dollars in stock while in office, now has placed his assets in a blind trust. Char es is U.S. Information Agency head, secretly taped his telephone conversations for a time, at first denied it; he later apologized. And now Ed Meese. Not that this Continued Approved For Release 2005/11/28 : CIA-RDP91-00901 R000400050001 -1 Approved For Release 2005/11/28 : CIA-RDP91-00901R00040005 ARTICLE E-PPEARED 'i'!1 I~ 1 ON PAGE_A WASHINGTON POST E ~ 27 March 1984 James J. Kilpatrick Meese s, Hard-Luck Story It has become a truism in our town that perception isn't everything. To paraphrase a famous football coach, it's become the only thing. There are times when ,reality hardly matters, and that's where we are right now in the tribula- tions of presidential counselor Ed Meese. A perception has grown that Meese, the president's nominee for attorney general, is a wheeler-dealer. That perception, in my judgment, is wrong. The reality, unless I am sorely mistaken, is that Meese is an able and decent human being, devoted to his president, who has suffered unduly from 1) a piece of hard luck and 2) an oversight in filling out a certain form. If reality governed our public affairs, Meese ought to be speedily confirmed. Absent the most compelling reasons, a president-any president.-is entitled to confirmation of his Cabinet nomi- nees. But because perception counts so heavily, my unhappy thought is that Meese ought to withdraw his name. He has become the fourth embarrassment to the Reagan White House, and four is too many. The piece of hard' luck involved Meese's heavily mortgaged home in California. He put the house on the market after the 1980 election, when it. was apparent that he would be moving' to. Washington, and the house didn't sell. Meese is not a wealthy man. The move strained all his resources. He had to acquire a second home near the capital. He ran 15 months behind in payments on one house and four months behind on the other. This would have drawn little attention but for one thing: two officials of the mort- gage company got government jobs, Edwin Gray became chairman of the Federal Home Loan Bank Board, and Gordon Luce served as an alternate. delegate to the United Nations. The oversight involved Meese's fail- ure to report an interest-free loan of $15,000 to his wife in 1980. The loan came from Edwin Thomas, who later was named regional director of the General Services Administration in San Francisco. There were two other matters. Meese borrowed $60,000 from a Cali- fornia trust headed by John McKean. The loan was unsecured; he paid no in- terest on it for nearly two years. In July 1981 McKean was named to the board of governors of the Postal Service. Sale of Meese's house in California involved an old friend, Thomas Barrack, who ostensibly lost money on the deal. Bar- rack wound up, with a job in the In- terior Department. This cynical city perceives a pattern. No one has stopped to inquire if these several appointees were qualified for their positions. No one has bothered to recall that in every political situation, friends of friends naturally are pre- ferred for patronage. This is the way the system works. There is nothing crooked about it. I am not at all disturbed by the loans and jobs. As for the undisclosed loan to Ursula Meese, I find it hard to understand why Meese failed to report it, but 18 years in.Washington have taught me something of the almost.un- bearable strains of life at the highest levels of the White House. It was a mistake, but it was not a mistake of sufficient magnitude to justify rejec- tion of his nomination. played Nevertheless, games must be by the rules, and politics is a body-con tact sport. Reagan's administration. al- ready has suffered from a CIA director with a fondness for playing the market, Ja ln8 anal_Kcuri_ director wife a fault' memo of ten $100 bills, and an attorne general, with an a e- m rom of frien s in ornia. The realities ma well be that Bill Casey is a shrewd investor, thAt c Allen y o erg t You money" from)tea anew fiends, and that W' am French Smith had earned the generous payment, It is the percep- tion that counts. Reagan has enough heavy baggage to carry into the coming campaign. He surely does not need the burden of a long and distasteful battle for confir- mation of Ed Meese as attorney gen- eral. It may be unfair-it surely will be painful-but no wise man ever said that life is fair. Step aside, Ed, and let the president name a clean-as- a-hound's-tooth nominee, such as Wil- liam Webster of the FBI, in your place. 016B4. Universal PreaSyndicate Approved For Release 2005/11/28 : CIA-RDP91-00901 R000400050001-1 -- ----- WASHINGTON-P-05T EQLC uEL 27 !4arch 1984 Officials' Limousines Encoun By Howard Kurtz and Pete Earley Washington Post Staff Writers Attorney General William French Smith's repayment of $11,000 for his wife's use of a government limousine puts him at the top of a growing list of senior Reagan administration of- ficials. who have run into problems with one of the government's favor- ite perks. Defense Secretary Caspar W. Weinberger and Treasury. Secretary Donald T. Regan are among those who have allowed their spouses to use government cars for such person- al reasons as trips to restaurants, museums, luncheons, art galleries and social events. Cabinet officers are among the 190 federal officials who received door-to-door chauffeur service to their homes in 1982 at a cost of $3.4 million, according to a survey by Sen. William Proxmire (D-Wis.), a frequent critic of the practice. Hun- dreds of other officials can call. on their agency's carpool for official. trips, but not for commuting. "It's a real status symbol when an official comes into his neighborhood with a chauffeur and gets out of his car," Proxmire has said. "When we try to take the limousine away, they just buck like steers. I think they'd rather lose a billion-dollar program than a limousine." In addition to Smith, whose re- payment was disclosed yesterday, these officials have been criticized for questionable 'use of government carte ? Regan's wife, Ann, has used a government car on 75 occasions over a 20-month period, mostly for per- sonal reasons.. According to government records, Ann Regan's regular driver, James Tippett, has picked her up at her Virginia home or the Treasury Building and taken her to such places as the F Street Club, Ken- nedy Center, Smithsonian Institu- -VO ' tholes tion, Corcoran Gallery, Woodrow Wilson House, Dumbarton House, Sulgrave Club, National Airport and the Washington Hilton, Shoreham and Mayflower hotels. On one after- noon, the records -show, the driver was instructed to' wait while Ann Regan finished lunch at Maison Blanche- A Treasury Department spokes. man said yesterday he did not know whether Regan had repaid the'gov- ernment for his wife's use of the car. ? Weinberger last year repaid $205 after the. Federal Times dis- closed that his wife and ether family members made 20 trips in Pentagon- cars over a six-month period to visit libraries, tourist attractions and, in one case, a beauty :parlor. Eleven other defense officials had to repay $386, including one official who had a government car dispatched to pick up his babysitter. Donald L Hovde, while under- secretary of the Housing and Urban Development Department, repaid $3,100 for improperly using a gov- ernment car and driver to commute from his McLean home and for per- sonal errands. Hovde's car and driver were used to take his wife downtown, his neigh- bors to the Kennedy Center, his daughter to school and his parents on a sightseeing trip to the Capitol. Hovde, now a member of the Fed_ eral Home Loan Bank Board, also used the Buick LeSabre to attend a wedding, pick up a suit, visit his car dealer, pick up laundry and dine at private homes and restaurants. . a Nancy Harvey Steorts, chairman of the Consumer Product Safety Commission, used a government driver to take her on at least five trips, to the. hairdresser, deposit money in her bank, pick up dresses and draperies at downtown stores and drive her daughter to the White House to visit friends, according to the driver, Michael A. Hager, who -no longer works for Steorta. Hager said that friends also chipped in to buy him a suit after Steorts ordered him to get a chauffeur's uniform and hat or risk being fired. Steorts declined to comment at the time. Former Veterans Administration head Robert P. Nimmo repaid $6,441 for using his chauffeur to drive him to.and from his Virginia home. He also-agreed to terminate a $708-a-month lease for a 1982 Buick Electra that he had requested in place of the compact cars provided for most agency, heads. The contro- versy helped lead . to Nimmo's res- ignation in 1982. The busiest car, according to Proxmire's 1982 surve was used. b CIA- Director William J. ' Casey, whose driver got $26,000 in overtiEnS ' pay on top of his $20,000 salary. Approved For Release 2005/11/28 : CIA-RDP91-00901 R000400050001-1 WALL STREET JOURNAL ~" 1"Lc Jt"; Ufa iproved For Release 26O15MR8193VA-RDP91-00 QR MEM..__.' Medal, Man, Mission: Cherne and the Refugees By JOSEPH P. DUGGAN In a White House ceremony today, President Reagan will honor 14 people with the nation's highest civilian award, the Medal of Freedom, Among the recipients will be Leo Cherne: economist, sculptor, whiz kid of industrial mobilization during World War II, executive director of the Research Institute of America, honorary chairman of Freedom House and, for.the past 30 years, chairman of the Interna- tional Rescue Committee. Mr. Cherne is a lion of courage and commitment to human freedom, which is another way of saying that he is unexcep- tional. He is simply characteristic of the thousands of brave and brilliant women and men who have served in the IRC dur- ing its half-century of operation. The IRC was formed as America's re- sponse to Albert Einstein's foresight in or- ganizing aid for the first refugees from Hitler's Germany. From its inception, the IRC has been non-ideological and nonsec- tarian. Its aims have been to recognize major threats to life and liberty in various parts of the world and to help victims of persecution escape. From the beginning,.IRC officials, even field officers in war zones or under condi- tions of severest political repression-in Vichy France, for instance-have had to contend not only with the menace of the oppressors at hand but also with the deter- mination of many victims not to believe what was happening to them and around them. That was the experience of Varian Fry, the young New York literary editor chosen by the IRC in 1940 to assemble and operate an underground railway for refugees through Marseilles. Fry's activities, remi- niscent of Raoul Wallenberg 's courageous operations to rescue Jews in Budapest, are described in Aaron Levenstein's "Escape to Freedom: The Story of the International Rescue Committee," Greenwood Press, 1983. "Not the least of Fry's difficulties," Mr. Levenstein writes, "was the unwillingness of many among the refugees to believe the Nazis would really descend to the ultimate depths of inhumanity. The German Social Democratic leaders Rudolph Breitscheid and Rudolph Hilferding argued that their world-wide reputations as political leaders. in pre-Nazi Germany would protect them. Repeatedly, they deferred their departure despite Fry's anguished pleas. When sym- pathetic Vichy police got word to Fry that the Gestapo was coming for the two men, they agreed to go. But it was too late-they died in Nazi hands." And the story has been repeated, in Berlin, Phnom Penh, Kabul, Budapest and Saigon, among other places. The will to disbelieve in totalitarian evil has claimed many victims. Despite this, the !RC has performed some near-miracles of-massive rescue. For example, the committee operates the Joint Voluntary Agency in coordination with the American Embassy in Thailand, processing refugees from Vietnam, Cam- bodia and Laos who pass through Thailand on their way to the U.S. Had it not been for the public pleadings of Leo Cherne and IRC Vice Chairman Bayard Rustin, through their Citizens Commission on Indo- chinese Refugees, the already belated American response in 1980 to the Cambo- dian holocaust and mass exodus might have been delayed further; hundreds of thousands more deaths might have oc- curred. The Citizens Commission also spoke out effectively against the'.sugges- tion that some "boat people" were mere "economic" immigrants and thus ineligi- ble for asylum. Messrs. Cherne and Rustin reminded the world of the 1980s that "eco- nomic migrants" was a euphemism Hitler used in his campaign to have the world disbelieve the gravity of the plight of flee- ing German Jews. . Diplomats may have declared peace at certain times and places during the past haft century, but the IRC never has had respite from the commitment toiy tims of war, civil conflict, displacement- andersecution. The IRC, in the person of Mr. C erne, was present in Budapest dur-. I fns the 1956 uprising; and when the Soviet ilnion ? in 1968 invaded anot1e "ally" -Czechoslovakia- Mr L31emg and William J. Cas then the IRC's resident % at entere at country and assessed lie situ ioz-. Finally, they were stopped by Soviet tanks outside Bratislava and were 'ermitted" to drive back to Vi enna. Today, IRC medical units are aiding the three million Afghan refugees in Pakistan. Mr. Levenstein, the IRC's historian, is not reluctant to describe the world refugee rate as "communism's fever chart," but the committee also aids victims of rightist or ideologically indeterminate dictator- ships. As sub-Saharan Africa has suffered the various post-colonial pangs of tribal conflict, home-grown tyranny and Marxist revolution abetted by Cuban expeditionary forces, the IRC has been on hand to aid refugees. The IRC is an organization, like the United Nations High Commissioner for Refugees, that wishes it could lose its rai- son d'etre. But unless the coming decades are an exception to the terrible patterns of human pain that have marked our century, the IRC will labor on, with laborers of the character of the "unexceptional" Mr. Cherne. Mr. Duggan writes speeches for U.N. Ambassador Jeane J. Kirkpatrick. For- merly, he was Ambassador Kirkpatrick's adviser on refugee affairs. STAT Approved For Release 2005/11/28 : CIA-RDP91-00901R000400050001-1 ARTICLE APPS NEW YORK TIMES ON PAGE__,.i -*Proved For Releas 29111 j/2 IA-RDP91-0090 ? cepted by President Reagan in June Haig Says He Urged Reagan and Foreign Policy," which Pressure on Cubans will be published in a month by Mac- millan. Time Magazine will publish the first of two installments of excerpts on Over'Salvador in' '81, Sunday. By BERNARD GWERTZMAN SpaiW to rim N*W yWkTLM" WASHINGTON, March 24-Former 'Secretary of State Alexander M. Haig Jr. says in his forthcoming memoirs that he advocated bringing maximum political, economic and military pres.. sure to bear on. Cuba in IM "to force" ,.the Issue early" in El Salvador, even if It brought a Soviet response. In excerpts from?the memoirs Mr ministration, despite his lack of sup- port, Mr. 'Haig nevertheless began a highly publicized campaign to focus at. tention on Cuban and Soviet support, through Nicaragua, for insurgents in El Salvador. He-said in the memoirs, that this had the effect of alarming Fidel Castro's Cuban Governraeat and i- ?,1 raised with him the question of of leading to a brief tapering off in sup. ] transshipment of Soviet arms through plies to the Salvadoran guerrillas. Nicaragua to the insurgents in El Sal- Mr. Haig's point, which be makes in vador," Mr. Haig said. Mr. Dobrynin the memoirs, and which he made pri-~ responded, "All lies," be said. vately at the time, was that a mores ""Photographsdon't lie,4Ireplied." Tce fo fur l d~ i i ' ev trcefutness found no in the tuall-- ? mented that this was not the way to support Lo_ y approved, would have led to an; start a new relationship. highest nOUncils of the R eagan Admen- early resolution of the problem. "How) start a ne a asked, should the U.S. and istration. He ? named Vice President. The memoirs contain sharp criticism + tbe Soviet Union begin to develop a din. Bush, Defense Sereta* ;and unflattering remarks about almost` ;-logue?" Mr. Haig went on. _rector of William J,~se~,,^ chy arlyfthe ate House ad- 41 "I said, It is not acceptable to talk nectar of the C ti;il in ence visers,.Mr. Meese, Mr. Baker and Mr.peace while acting differently,' "Mr. --- en and the senior t H d ' s n u stra Lion poucy instead 1 He said thaj -Mr:._ Dobrynin corn. Haig said, however, that his call for of the modest program that was I o s - ouse Deaver. The style is straightforv6?ard Haig said. visers- Rdwin Meese 3d' J a Bke_r,~Iviichael Deaver?and, ichard V. Allen, then the national security ad. W~'?~j leL _flazA." "I:was virtually alone'in the other camp,' which- favored giving military and economic aid to E1.Salvador while i bringing the overwhelmjng economic I strength and political influence of the U.S., together with the reality of its military power, to bear on Cuba in order to treat the problem at its source," he said., 1.11n my view that the potential strate- gic gain - from this combination 'of measures far outweighed the risks, and that the U.S. could contain any Soviet , countermeasures, I was isolated," he,,' said: ! . _ Mr. Haig said the other top officials were so copeer that c r , nam" would sap public support for tats 1 to.the most audacious ideas. I had to m ' Reagan Ad inistration s domestic, program that the o - ,ed his_Prc.1 posaland preferred modest aid to to EI , Salvador and covert action in 'there. .e_o_n_Ne was_not emlirit.inhic mc+m.' oars on what specifjg options he hg_JXL+ minnd_towai d~Cuba.' Mr. Haig, whose resignation was ac. and terse. A publishing source said that Mr. Dobrynin, the memoir contin- the book. had been ghost-written by ues, said that "it would be very unfor- Charles McGarry, the author of "Tears tunate if the Soviet leadership formed of Aiitumri"wandother novels dealing -the impression that'the Reagan Admin- with espionage themes. istration was hostile to the U.S.S.R. be? fS117CP ff,-~t cynical action could even be consid- ered." Mr. Haig said be had told the group it was a pledge of American honor to re- turn the money. The President, he *said, made no statement, just listened. In the end, Mr. Reagan agreed that It should be honored. - The former. Secretary said he had been so deeply worried about Commu- nist subversion in Central America that his first meeting with Anatoly F. Dobrynin, the Soviet Ambassdor, was ~_~T "" `. '"' Mr. Haig said fie responded that the meeting at the White House United States was not hostile, but "of- hear that at a many of Mr. Reagan's aides dwanted to cancel the agreement. that fended by -Soviet excesses." He said had just been negotiated on returning that he constantly raised "our concernfrozen Iranian funds for the release of with Cuba's role as a Soviet proxy." the American hostages in Iran. The hostages had been freed on Inaugura. tion Day. . "This amazing.proposition'won the support of'many in the room," he said. "Insofar as Jim Baker's reaction could be interpreted, he appeared to be in sympathy. So did Deaver, The Presi-. dent did not seem to be surprised by.the 4 suggestion; evidently he was prepared, in his remarkable equanimity to listen i STAB Approved For Release 2005/11/28 : CIA-RDP91-00901 R000400050001-1 STAT ASSOCIATED PRESS Approved For Release 2005I1l/z2 a R4-'1 -00901 k4 MON'DALE SAYS THERE"S A 'SLEAZE FACTOR' IN REAGAN ADMINISTRATION LOS ANGELES k(@! Walter Mondale, on a money-raising swing through through Southern California, says there is a "sleaze factor" in President Reagan's administration and vows to "establish a standard America can be proud of again." "For nearly three years, almost every couple of weeks, another rotten apple is falling out of a tree," Mondale said at a $100 per person fund-raising event Wednesday night. Buoyed by his Illinois Democratic presidential primary victory Tuesday over rivals Sen. Gary Hart of Colorado and the Rev. Jesse Jackson, Mondale cited a string of controversies surrounding Reagan's administration. He listed last year's turmoil in the Environmental Protection Agency, the .current furor over the nomination of presidential counselor Edwin Meese for attorney general, the sale of federal lands at "fire-sale prices," and CIA director William S. Casey's much-criticized ties to Wall Street. "It's what I call the sleaze factor," he said. "The one thing that's consistent is nothing but silence from the White House." Approved For Release 2005/11/28 : CIA-RDP91-00901 R000400050001-1 Approved For Release 2Q05~17/2RGIrRDP91-009518000 MEESE BY JUDI HASSON WASHINGTON The Justice Department began an investigation Monday into a $15,000 interest-free loan Edwin Meese failed to report, and a key Democratic senator urged President Reagan to withdraw the ''tainted'' nomination of Meese as attorney general. "I believe the president would be better off if he solicited someone who was not shrouded in controversy, " said Sen. Dennis DeConcini of Arizona, a moderate Democratic rhember of the Republican-controlled Senate Judiciary Committee. Deconcini spoke with reporters after meeting with Reagan at the White House on another topic. When asked how badly Meese has been tainted, he replied, " I wouldn't say tainted beyond repair, but tainted, yes.'' The senator also said Reagan has made ' 'some outstanding appointments," but also has " made some lousy ones. " 'The ones who are lousy are usually shrouded in controversy, " DeConcini said, citing CIA Director William Casey and Charles Wick, head of the U.S. Information Agency Approved For Release 2005/11/28 : CIA-RDP91-00901 R000400050001-1 Approved For Release 2 5 aMpl 1I 4 W OA MEESE BY JUDI HASSON WASHINGTON The Justice Department began an investigation Monday into a $15,000 interest-free loan Edwin Meese failed to report, and a key Democratic senator urged President Reagan to withdraw the '' tainted " nomination of Meese as attorney general. ''I believe the president would be better off if he solicited someone who was not shrouded in controversy, " said Sen. Dennis DeConcini of Arizona, a moderate Democratic ihember of the Republican-controlled Senate Judiciary Committee. DeConcini spoke with reporters after meeting with Reagan at the White House on another tbpic. When asked how badly Meese has been tainted, he replied, " I wouldn't say tainted beyond repair, but tainted, yes." The senator also said Reagan has made "some outstanding appointments, '' but also has " made some lousy ones. ''The ones who are lousy are usually shrouded in controversy,'' DeConcini said, citing CIA Director William Casey and Charles Wick, head of the U.S. Information Agency. . Approved For Release 2005/11/28 : CIA-RDP91-00901 R000400050001-1 1 Mar hh~ ~~qq 44 of PAGE . OAptaroved For Release i00511~/28 : CIA-RDP91-00901 sde Look at those E1te eiigious Groups Their ranks are small, but a handful of key societies count as members some of the most influential Americans. While the Rev. Jerry Falwell's Moral Majority draws most of the public atten- tion, other religious groups are quietly trying to influence the nation's elite. Their names are unfamiliar to most Americans-the Knights of Malta, Opus Dei, Moral Re-Armament, the Christian Reconstructionists. Yet their principles, which include strict adher- ence to Christian values, are the guid- ing force in the lives of some of the most powerful people in the U.S. Despite coming from different faiths, members share a common belief that a small number of dedicated peo- ple can indeed change the world. Still, these groups aren't without their detractors. Outsiders often ques- tion the recruiting methods and veil of secrecy surrounding some of these or- ganizations. Critics contend, too, that these societies are as much bastions of conservative politics as they are religious in nature. Knights of Malta. a Roman Catholic organization that dates back to the time of the Cru- sades when members fought Moslems in the Holy Lan. With headquarters in Rome, the group is recognized by some 40 countries as the world's only landless sovereign nation: In that role, the Knights mint coins, print stamps and issue pass- ports to their diplomats. American network. The U.S. mem- bership of about 1000-70 percent men-accounts for one tenth of the worldwide total. Nearly all are promi- nent in business, government or profes- sional life and include such well-known figures as Chrysler Chairman Lee Ia- cocca and Central Intelligence Agency Director William Casey. At least two U.S. senators also are members: Repub- licans Jeremiah Denton of Alabama and Pete Domenici of New Mexico. Other members active in conserva- tive politics include former Secretary of State Alexander Haig, former Trea- sury Secretary William Simon and col- umnist William F. Buckley. can branch is J. Peter Grace, chairman of the W. R. Grace Company, which provides a national focus for the orga- nization by, including seven other Knights on its board. The main purpose of the Knights is to honor distinguished Catholics and raise money for charity, especially hospitals. But the close personal ties among members contribute to what some ob- servers call a potent old-boy network of influential decision makers dedicated to thwarting Communism. The annual induction ceremony for new members at St. Patrick's Cathedral in New York City is the only function of the U.S. chapter open to nonmembers. Because man Kni his and recipi- ents Mtge order's honors have worked in or around the CIA critics sometimes suggest a link between the two. But members eny any connection. nQ a.t the attern of conservative m m- ers with overseas ties em izr, natu- rally from the order's role as an_inter- national defender of the church. Pope John Paul II also has praised the work of the Knights in a special procla- mation, just as he has another some- times controversial group called Opus Dei-Latin for "the work of God." Founded in 1928 by a Spanish priest, Josemaria Eseriva de Balaguer y Albas, the group's central tenet is that all hu- man work should be done "with the greatest perfection possible" to "help shape the world in a Christian manner." By JAMES MANN with KATHLEEN PHILLIPS EXCERPTED STAT The presideAj*r&vddifgbrsRetemte 2005/11/28 : CIA-RDP91-0090.1 R000400050001-1 STA Approved For Release 2005/11/28 : CIA-RDP91-00901R00040005 ARTICLE AP ON PAGE WASHINGTON POST FRE ONLY -jc, 16 March 1984 FitzGerald's Shamrock Shebang ;ByDonnie'Radcliffe Mondale scramble "good,-news for the Democrats" Reprinted Aramyesterdey'slate editions ;because it promotes interest in the party and the is- George McGovern came within an Irish country sues. mile of endorsing Gary-Hart Wednesday -night-sort Asked whether he thought Gary Hart resembles of. John F. Kennedy" or any of the Kennedys, the senator "I know Gary," McGovern said of his old campaign snapped: "Well, I'm not going to talk about something manager. "I think he'd make a good president." like that," Sen. Edward: M. Kennedy was more circumspect Besides the "Super Tuesday" talk, there was bier- when it came.to such tWk:'I think we need new o ney about. Ireland-and the Irish. "This glittery occa sion started out as a. very modest idea;" said Irish Am- pie in this party people who are supporting Jesse bassador Tadhg,O'Sullivan. "We thought there'd be Jackson , Gary Hart, Fritz Mondale, George 'McGov em,: any of the others" 30 to, 40 of the. taoiseach's rime minister close McGovern was one of Wednesday night's. brightest friends, but we underestimated his friends." Those stars at a gathering of Irish Americans for a sumptu friends included all of the .towns best-known Irish ous dinner given by Irish Prime Minister Garret Fitz-. Clark, namw like ..Moynihan, Cochran, Casey, Donovan, Gerald for'Vice'President Bush, who admits to being Clark, Kirkland; Shultz and Kissinger. Texan but not Irish. One of the town s top. Irishmen, House Speaker The former senator 'from *South Dakota, who Thomas- P. (Tip). O'Neill,, didn't make it. But here's bowed out of the-race for. president early Wednesday what some who did had to say. Kissinger: "My wife's north Irish and last after coming in third in Tuesday's Massachusetts prr y Henry year I told FitzGerald's predecessor she was Irish, but -mary, drew almost everyone s attention. Bush was one from the. wrong part. He said, `There is no wrong of thefrrstto commend`McGovern on the race he ran; per; "You look Eke it didn't hurt you any," Bush told hun. Barbara Bush::".Everybody's Irish at heart.e 'My God, you look in fightpig trim." Labor Secretary Ray Donovan, a third-generation The way McGovern explained it later. "He said 1. Irishman: `"When we visit there, everybody seems to handled myself with grace and dignity." look like us." And as for how McGovern felt the night after the CIA Director William Case teasin 1 said Secre night before: "I feel great I really do. You know, Ivey of fate George was "nisi lucky" to be won a lot-of campaigns, but I never felt any better .marine ?to rn Irishwoman. about the ones I won than I have this one. Shultz told of a trip to Ireland during the Nixon "I said exactly what I . had on my mind--some administration and a stop at Dromoland Castle. A bought it and some didn't. But it gives you a. good man taking them around asked Helena Shultz what feeling to say what you think," said McGovern. her maiden name was. When she said OBrien, he said "You can't come in second, third. or, fourth too, this was her ancestral home. "There must have been a many times. without realizing you're not going to go hundred portraits of O'Brien hanging on the castle the course. I made my statement, I got a fair hearing; walls," Shultz said. So after greeting FitzGerald here, the press was kind to me, and I have no complaints." he told him on the way into town that his wife was On his erstwhile campaign foe, Gary Hart, McGov- Irish. The prime minister, Shultz said, replied, "Gee, em said, "I must say, he doesn't seem to have made .. that makes me feel badly. I'm only 6 any mistakes so far. He understands modern cam percent." FitzGerald, who was accompanied c byhis wife, paigning, knows what its all .about, and works well Joan,. later explained that his family name was Nor- with the media"' man, that some of his family were Ulster Scots, some Kennedy, one of several Kennedys in the crowd of were Germans and only a great-grandmother on his about 250 at the Shoreham Hotel, Called the Hart- mother's side was Irish. Approved For Release 2005/11/28 : CIA-RDP91-00901 R000400050001-1 S"TAl Approved For Release 2005/11/28 : CIA-RDP91-00901R00040 ARTICLE APPEARED ON PAGE WASHINGTON POST 15 March 1984 ' -Casey Pushes CIA Aide For Seat on U.S. Court By Al Kamen washtagron Post Stan wdkr CIA Director 'Wiliam J. Casey has asked President Reagan to nominate CIA general counsel Stanley Sporkin to a seat on the US. District Court here, administration sources said yesterday.:. _ - , In addition, Casey has either writ- ten or called senior White House and Justice.. Department officials urging Sporkin's nomination to the seat vacated earlier this year by Judge June L Green, according to one source. "Casey's - pushing him hard,". that source said, adding that Casey's efforts began more than a month aga A spokesman at the CIA said' nei- ;ther Casey..nor Sporkin, who has .made no secret of his desire to be a - _federal judge, would comment. Sporkin rose to prominence here ;as the' highly visible and often con troversial head of enforcement at the `.Securities and Exchange Commis- .lion in the late .1970s before going to the CIA to work for Casey, a long- .: time friend. The possibility of the 52-year-old Sporkin's nomination to the federal. :bench already has sparked a lobby- -ing- campaign against him among some detractors who criticize him for being overzealous" in enforcing fed- `- 'eral securities lawn. One GOP attorney said yesterday that he, was organizing opposition - 'among GOP 'leaders in the business and legal community who he hoped would oppose the possible nomina- `-tion because of Sporkin's ,enforce. -.ment decisions. A Reagan transition team report, reflecting some of the opposition 'to Sporkin, had' recom- mended that Sporkin be replaced. Sporkin saved Casey from Water- gate disaster in the early .1970s by advising Casey, then SEC chairman, to ignore. pressure from the Nixon White House to head off the agen- cy's investigation of Robert Vesco. Sporkin was picked by Casey in April 1981 to be the CIA's top legal officer. Sporkin, whose name .was synon- ymous with tough securities law en- forcement, waged. a . famous cam- paign against questionable foreign payments in the '.70s when some 600 companies made voluntary disclo- sures rather than face criminal ac- tion at a later time. 'His ''influence with' Casey :hag made' him a key policymaker at the agency, although at tunes he has been criticized 'for -spending consid- erable time defending Casey's per- sonal business practices. - The administration's. -screening committee for potential candidates for the federal bench is expected to make a recommendation in a few weeks for the opening. - Other candidates for the judge= ship include former assistant US. at- torney Alexia. Morrison, 'who is now in the enforcement division at the SEC; Washington attorney Stephen Trimble, and- D.C. Superior Court Judge George E. Revercomb. Although the White House has been under considerable pressure as the election approaches to appoint a woman to replace Green, one in- formed source said he doubted that pressure would preclude nomination' of a qualified male. - ' Sources would not say yesterday whether Sporkin `was the leading candidate for the job. One source called Sporkin "a viable candidate." Approved For Release 2005/11/28 : CIA-RDP91-00901 R000400050001-1 ARTICLE A3`PEAR.ED THE LISTENER (UK) ON PAGE droved For Release MO?1M? 81` M-RDP91-00901R000400 Gavin Esler CIA mischief in Hawaii .Investors ,lose a forLune. in firm, operated br the CIA Gavin Esler tells the story of a CIA operation in Hawaii which could serve as a storyline for an episode in Hawaii Five? 0, except that there is no scope for its squarejawed hero., Police Chief Steve McGarrett, to clandestinely to Taiwan. The story links together three CIA station chiefs, an Ameri- can four- and a three-star general and one of the ten richest bankers in the world, a Fili- pino called Enrique Zobel. On the sidelines are 400 investors who provided the cover for CIA ' operations and have now lost their money. Ron Rewald came to Hawaii in 1977, from Milwaukee, Wisconsin, with. a bankruptcy behind him and a conviction on a minor charge. He had one qualification: in the 1960s be. had played a minor role in illegal CIA spying on American students involved in pro- tests against the Vietnam War. By 1983 he was being entertained by generals and CIA station chiefs, running a fleet of limousines and playing polo with sultans and princes. The transformation began in 1978, when Rewald and Wong set up Bishop Baldwin in luxurious offices in the heart of Honolulu's business district-Rewald even had an indoor waterfall behind his desk. In a sworn affidavit Rewald says that to complete the cover the CIA wrote a phoney history for the company, saying that it had operated in Hawaii since ike any other upmarket financial consultancy, the Hawaiian firm of Bishop, Baldwin, Rewald, Dillingham and Wong had a company photograph taken. In the front row sit the chairman, Ron Rewald, and the president Sunny Wong. Mr Bishop, Mr Bald- win and Mr Dillingham are not in the picture because they do not exist. These are what Hawaiians call 'kamaaina' names-old- established family names in the islands used as part of the company name to give it spu- rious credibility. Bishop Baldwin, which collapsed into bank- ruptcy last August, with 522 million of inves- tors' money allegedly gone missing, could have been a simple swindle: the chairman, .Rewald, cheating naive investors. Instead, it was a major CIA intelligence front-what ,CIA Central Cover Staff at headquarters in Langley, Virginia, would call a 'proprietary'. It was a functioning company of some 40 or 50 people engaged in legitimate business acti- vities to provide a cover for around ten CIA agents. How the operation fell apart and come to be mistaken for a confidence trick is a tale of lies and deceit which reveals how the new CIA under its direc- tor, William Casey, operates, and how covert operations are organised not, as is widely assumed, mainly through American embassies, but through private busi- nesses. Newsnight has un- covered hundreds of pages of documents and tape-recordings relating to Bishop Baldwin which show how it was used to spy on the President of the Phil> oMedtE0Ir high-technology plans from Japan and sell arms Jack Kindschi with Ron Rewald 'territory days'-before Hawaii became the 50th state in 1959. The CIA also printed a false degree certificate for Rewald to hang on his office wall, and ensured he was listed as an 'old boy' in university records. Such was the CIA fiction but inevit- , , ably, the truth was even stranger. Bishop Baldwin's staff sound like extras from a motional literature as an Continued Agar2pjvc FA~e 2005/11 /28 : CIA-RDP91-00901 RO ON PAGEr, ,_..._ WASHINGTON TIMES 15 March 1984 Under Bill Casey,. the" 1A is back in business William J. Casey, a tall, erudite man in his early 70s, has been director of Central Intelligence since the Reagan administration took office. During the last three years, it'has been a rare day that his reputation and character have not been attacked, sometimes from the right, most often from the left. The attacks have focused largely on financial matters which oc- curred long. before he took .his present post and most recently. the so-called "Briefingate" affair in- volving Carter strategy documents allegedly obtained by Reagan elec- tion officials during the 1980 cam- paign. While no crime has ever been spelled out, ethical violations have been charged. So Mr. Casey, who enjoys Cabinet status, has been a storm center since 1981, accused of all manner of deviltry having to do with everything except what kind of director of Central Intelligence he has been and how has intelli- ?gence, fared under his direction. This short report, based on an informal study, will argue that Mr. Casey has done the best job of any CIA director in the past decade. In one sense, he took on the job at a time when the prestige of the CIA was so low there was no way to.go but up. Mr. Casey's Predecessor, Admiral Stansfield Turner, rightly or wrongly, had a low opinion of the agency he was assigned to adminis- ter by President Carter. The United States and its allies paid the price of poor intelligence and, *most im- portant, insufficient and even unre- liable national estimates so essen- tial for_ decision-making policy executives. In addition, before Mr. Turner's appointment, there had been a revolving door sequence of CIA directors - William Colby, James Schlesinger and finally George Bush, now vice president, all in one year, an event hardly cal- culated to restore confidence within the organization. Under Mr. Casey, a numberof im- ARNOLD BEIC MIAN poi;tant steps to rebuild U.S. intelli- gence have been undertaken under the continuing scrutiny. of two con- gressional select committees on in- telligence to which Mr. Casey must report regularly, particularly about any proposed covert actions ap- : proved by the president. In other words, CIA secrets must be shared with sdme 30 congressmen in both houses and their congressional staffs, a risky but now legalized procedure. Thus far, congressional oversight has worked fairly well, according to all reports. Whether the accountability system will con- tinue to work in future congresses as the composition of the Select Committees, changes, is another matter. ..Under Mr. Casey, the intelligence budget "has gone way the hell up;' as one knowledgeable source puts it. In fact, the overall total for intel- ligence is at the highest level it has ever been, having risen steadily each of the past three years. Since the budgetary totals are classified, no statistical comparisons can be made. However, to have been able to obtain increased appropriations means that Lhe-congressional go-m-_ mittees are sufficiently satisfied with CIA activities. Second, the CIA is back in the covert-action business, an area from which it had virtually with- drawn during the Turner. directorship. Covert. action is a form of. intelligence activity in- tended to effectuate by secret means the aims of U.S. foreign policy. Overt action encompasses diplomatic activity' and negoti- ations and, when these break down, war itself. An example of covert ac- tion would occur if Britain, tar- geted by Libyan terrorists, were to seek out and support Libyan exile dissidents in order to help over- throw the directing genius of con- Third, there has been a large increase in the number of national estimates sent to intelligence con- sumers, from the president on down. The whole point of intelligence-gathering clandes- tine collection and covert action - is to put together the information collected in some logical order so that recommendations for actions can be made and meaningful policy decisions undertaken. Analysis and estimates are the third - and per- haps most crucial - ingredient of an intelligence system. Fourth, there has been a massive attempt to rebuild human intelli- gence - HUMINT - resources. In the pre-Casey period, great reli- ance was placed on ELINT - elec- tronic intelligence-gathering by "spy-in-the-sky" technology. While much of the instrumentation is in- genious and even startling in its capabilities, the instruments them- selves lack one essential attribute: They cannot look inside a man's head - say, a member of the Soviet Politburo - to determine what. So- viet policymakers plan to do. HUMINT was once part of the an- swer and it is now being restored to its essential place in -the. intelli- gence panoply. Fifth, an attempt has been made to rebuild the last and perhaps the most important ingredient in the in- telligenre schema - counterintel- ligence.' This ingredient is the guard set up by any intelligence agency to prevent the enemy "mole or even the double agent, from penetrating the inner sanc- tum. Kim Philby, the British-born So- viet agent, ran British counter- intelligence until he became suspect and resigned. Therefore, during the time he was in charge of British CI, British intelligence ex- isted only in name. The various con- gressional investigations of CIA .and their repercussions within CIA during the mid-1970s led to a wholesale dismantling of Cl a dec- temporary terrorism, Libya's dicta ade ago. Whether or not CI hasbeen tor, Col. Muammar Qadaffi. successfully rebuilt, no one can Approved For Release 2005/11/28 : CIA-RDP91-00901R000400050001-1 ConbnuEo ARTICLE APPEARED rr Q1Y PAGE For Relef ~: `CR rR )91-00901 R000 Gavin Esler CIA mischief in Hawaii Investors lose a fortune in firm operated by the CIA Gavin Esler tells the story of a CIA operation in Hawaii which could serve as a storyline for an episode in Hawaii Five-O, except that there is ' no scope for its square-jawed hero, Police Chief Steve McGarrett, to make everything all right. ike any other upmarket financial consultancy, the Hawaiian firm of Bishop, Baldwin, Rewald, Dillingham and Wong had a company photograph taken. In the front row sit the chairman. Ron Rewald, and the president Sunny Wong. Mr Bishop, Mr Bald- win and Mr Dillingham are not in the picture because they do not exist. These are what Hawaiians call 'kamaairna' names-old- established family names in the islands used as part of the company name to give it spu- rious credibility. Bishop Baldwin, which collapsed into bank- ruptcy last August, with $22 million of inves- tors' money allegedly gone missing, could have been a simple swindle: the chairman, Rewald, cheating naive investors. Instead, it was a major CIA intelligence front-what CIA Central Cover Staff at headquarters in Langley, Virginia, would call a 'proprietary'. It was a functioning company of some 40 or 50 people engaged in legitimate business acti- vities to provide a cover for around ten CIA agents. How the operation fell apart and come to be mistaken for a confidence trick is a tale of lies and deceit which reveals how the new CIA under its direc- tor, William Casey, operates, and how covert operations are organised not, as is widely assumed, mainly through American embassies, but through private busi- nesses. Newsnight has covered hundreds of pages of documents and tape-recordings relating to Bishop Baldwin which show how it was used to spy on the President of the Philippines. steal high-technology plans from Japan and sell arms Approved 'territory days'-before Hawaii became the 50th state in 1959. The' CIA also printed a false degree certificate for Rewald to hang on his office wall, and ensured he was listed as an 'old boy' in university records. Such was the CIA fiction, but, inevit- ably. the truth was even stranger. Bishop Baldwin's staff sound like extras-from a James Bond film. Jack Kindschi. listed in pro- motional literature as an Jack Kindschl with Ron Rewald 'outstanding consultant'., For Release 2005/11/28 : CIA-RDP91-00901R000400050001- clandestinely to Taiwan. The story links together three CIA station chiefs, an Ameri- can four- and a three-star general and one of the ten richest bankers in the world, a Fili- pino called Enrique Zobel. On the sidelines are 400 investors who provided the cover for CIA operations and have now lost their money. Ron Rewald came to Hawaii in 1977, from Milwaukee, Wisconsin, with, a bankruptcy behind him and a conviction on a minor charge. He had one qualification: in the 1960s he had played a minor role in illegal CIA spying on American students involved in pro- tests against the Vietnam War. By 1983 he was being entertained by generals and CIA station chiefs, running a fleet of limousines and playing polo with sultans and princes. The transformation began in 1978, when Rewald and Wong set up Bishop Baldwin in luxurious offices in the heart of Honolulu's business district-Rewald even had an indoor waterfall behind his desk. In a sworn affidavit Rewald says that to complete the cover the CIA wrote a phoney history for the company, saying that it had operated in Hawaii since tinned STM Y Approved For ReleaseA3g0j8TtS)bA-I.M'#.0901 R0004 13 March 198+ NICARAGUA/ JENNINGS: Some other'news now. President Reagan may get U.S. his way on aid to those forces fighting the government of Nicaragua. The Senate Intelligence Committee today got a closed-door briefing from CIA Director William Casey and then voted to approve $21 million in emergency aid for the contras. Approved For Release 2005/11/28 : CIA-RDP91-00901 R000400050001-1 Ap. Fe 2005/11 /28 : CIA-RDP91-00901 R AFpareiit Bunllng Bo By Joanne 0mang . w.mll Latln iuci neque Washington Post Staff Writer The Reagan administration appeared to, bungle its Central American policy so badly on Capitol Hill last week that : both critics a clever plot. With the track record of victory this White House has on the budget, on unpop- ular program cuts, on so many things, they say, it just could not be that inept? tunding through a -legislative:loophole, said a Admittedly, this was only a tactical skir- moderate Republican member of Congress mish, but. the way it was handled bodes ill who is an administration critic on this issue . for inioortoat battles scheduled this week The loophole would allow up to $250 mil - . over the administration's request for $1.2 lion in military aid to be provided upon a billion in economic and military aid to the presidential declaration of crisis, with no re. region, according to key Republican& payment required for 120 d "That's no emergency..They're, just afraid they won't get another nickel after the elections," said a key liberal Senate aide. If right-wing former major Rober- to D'Aubuisson is elected president, the aide said, members of Congress ays _ -who believe D'Aubuisson is linked to It was a total rout: the Senate Approort- Those citing political motives noted that death squads are likely- to move to. ations Committee, controlled by Republi. last week President Reagan said it-would not- -'cut off all aid immediately: But, the cans,, refused President Reagan's personal be "responsible" to .vote against his -aid re- t:.-source added, if D'Aubuisson's chief request to tack $21 million for rebels in Nic- quests, and Defense` Undersecretary.Fred C. rival, . former President Napoleon` aragua onto one bill and postponed 'until Ikle warned that an aid cutoff would unleash-Duarte, is elected,"stiff 'right-wing Tuesday his request to add $93 million for a bloodbath... by El Salvador's right-wing EI Salvador to another. death squads:.' ;.-opposition to him -could' lead to $: Nobody in the administration thought to 'State Department officials, asked what in an aid coup..Lhat could also result id cutoff. notify the chairmen of three vitally con they -would do if?Congress refused to coop- " - ... F if}har way tha alw, inn manna'-. cerned committees, two of them friendly Re- publicans, until the day before the vote.-No body lined up the usual allies, and the whole ? thing looked like a sneak end-run play. The reaction, especially from Republicans, was; amazingly blunt. ground (in Central America) in 31/2 years ' `. But only $11 million of the pco-: and so they come up here with a wacko idea posed $9$ million emergency aid is' the k ill b y now w omb, and Reagan can then . for ammunition and $16 million for go into the elections saying the policy failure. spare parts, according to aState De- - is all the fault of Congress," a liberal Senate partment fact sheet for Senate mem committee staff opponent theorized. - i bers.'he rest is for new helicopters,: Nnw they can press ddi d . a tional.-braining an troop ma- and it and it didn'twork, so they can go ahead with -