INQUIRY TOPIC: THE CIA

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP91-00901R000400080001-8
• Release Decision: RIPPUB
• Original Classification: K
• Document Page Count: 101
• Document Creation Date: December 19, 2016
• Document Release Date: October 17, 2005
• Sequence Number: 1
• Publication Date: June 30, 1983
• Content Type: NSPR

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USA TODAY
30 June 1983
r: APPEARED
10400080001-8
ounow Agency oesn t e
4601" just keeps secrets
TOPIC: THE CIA
William Colby, 63,
who was director of the
CIA from 1973 to 1976, is
the author of Honorable
Men ? My Life in the
CIA. He practices inter-
national law and has
joined the public debate
on nuclear arms as an
advocate of a freeze on
nuclear weapons. Called -
the CIA's
priest," Colby was inter-
viewed by .USA TO-
DAY's Barbara Rey-
nolds
SWIM
USA TODAY: Is it a policy
of the CIA toile to the Ameri-
can public as a recent con-
gressional committee im-
plied?
COLBY: No. The CIA does
protect some secrets that it is
required to protect, but beyond
that it does not actively lie to
the people.
USA TODAY: What types of
things should be kept from
the public?
COLBY: We are sworn to
Protect our sources. A law was
passed about a year or so ago
that said that anyone who con-
kiously goes out to reveal our
sources can be punished. I
think that was a very good law.
" USA TODAY: When are co-
vert operations against other
countries warranted?
COLBY: If there is a country
that is important to our country
engaged in a conflict between
a brutal dictator whom we
don't like and a ruthless terror-
ist who doesn't like us, there is
a course of action other than
choosing between those two.
That is secretly helping some
decent, moderate leadership to
arise in the country, an alterna-
tive to those extremes. Now,
that is exactly what we did in
the Philippines 41%4*F?' r
USA TODAY: Are there
William Colby
times when the overthrow of
a government is advisable?
COLBY: I pretty well object-
ed to that in most of the cases
that I recall being involved in. I
objected to the overthrow of
President Ngo Dinh Diem in
Vietnam. The value of covert
political action is when you are
building strength, not when you
are trying to attack somebody
else.
USA TODAY: Are there
other instances of the CIA's
deciding to overthrow a gov-
ernment?
COLBY: One time the magi-
dent of the United States told
the director of the CIA to do
anything he could to make sure
that Mr. Salvador Allende was
not ratified as president of
Chile in 1970. For six weeks the
CIA did what it could to accom-
plish that and then stopped its
program and had nothing to do
with the coup three years later,
which did overthrow Mr. Allen-
de.
USA ? TODAY: Didn't con-
gressional investigations
show that the CIA was direct-
ly involved in that overthrow?
COLBY: It was involved in .
an attempt in 1970, which in-
Oas% lanikelt1184Pairig-RDP9
. xene Schneider, com-
mander-in-chief of the Mean
army): There was a lot of other
activity in 1970, which was
stopped a very few months
thereafter. It didn't go on for
very long, and the subsequent
coup was conducted by the
Chilean military without the
CIA involvement.
USA TODAY: Congress has
reported that the CIA helped
plot the assassination of Bel-
gian Congo leader Patrice Lu-
mumba and conspired with
the Mafia in an attempt to kill
Fidel Castro. How large a role
do assassinations play in CIA
activities?
COLBY: None, Under presi-
dential directive, the CIA is
specifically directed not to en-
gage in assassination activities.
The Senate committee that in-
vestigated the CIA in 1975 for a
- full year looked into every cor-
ner of the CIA's activity. It con-
cluded that no foreign leader
had been assassinated by the
CIA. That was not for lack of
trying in Mr. Castro's case.
They included a contact with
the Mafia. It was stupid. The
action of Mr. Lumumba's
death came entirely without
any CIA connection. This was
stopped by the opposition of a
CIA officer before the action
ever got out of CIA channels.
USA TODAY: What about
I recent reports that President
Reagan wanted to overthrow
the government of Surinam
and our involvement in coup
attempts in Ghana?
COLBY: I don't know any-
thing about that. Charges occur
all the time, partly because of
the hysteria with which the
subject was discussed here in
America in 1975.
USA TODAY: IS it neces-
sary to hide CIA operations in '
the congressional budget?
1-00901 R000400080001 -8
-CO1V2'P,:r7r.
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rl Tr LE APPEARED .:k 29 June 1983
PAGE___E----.Z
00080001-8
CIA-backed rebels scarcely en
the Nicaraguan military machine
Mr. Casey ?subsequently denied having '
predicted this, but the story seemed to reveal
one line of thinking In Washington. Adminis-
tration officials speak of the increased
strength of the anti-Sandinista guerrillas,
placing their total number at 8,000 in the
northern, northeastern, and southern regions
of the country. ?
The largest rebel group, led in part by offi-'
cers of the old Nicaraguan National Guard
and known as the Nicaraguan Democratic
Force, is said to number about 6,000. Some
officials claim that the rebels operating in the
southern part of the country, who are led by
the renegade Sandinista Commander Eden
Pastora Gnmez, now number about 2,000. An
undetermined number of Miskito Indians are
fighting in the northeast, along the Caribbean
coast.
? But each of the three regions affected by
the fighting is relatively lightly populated and 1
among the least important to the country in
economic terms.
.Because of his personal popularity, Eden
Pastora's great hope had been to get .
Sandinista troops and militiamen to defect to
his side. But there is no evidence that they
have done so in any significant numbers.
In the drowsy capital of Managua, a city of
new parks and old shantytowns, diplomats
say that unless there are considerably
heavier attacks and much greater disillusion-
ment with the regime, the Sandinistas can
probably survive the type of pressure they
are now facing for years to come. ?
? Sources close to the contras predict that
they will break out of the mountains and
strike deeper inside the country in the coming
months. But for the moment, the amazing
thing is how normal much of Nicaragua
seems.
A drive northwest of more than 100 miles
toward the Honduran border from Managua
shows people in some of the country's most 1
Important towns and villages doing business 1
as usual Last year's drought and floods
damaged the nation's economy much more
than the contras have.
A year ago at Nicaragua's main port of
Corinth, 80 miles northwest of Managua, a
two-motor plane carrying rockets attacked
the gasoline tanks nekt to the port. The pilot,
who presumably came from Honduras,
missed the tanks by about SO yards, and his
By Daniel Southerland
Staff correspondent of ?
The Christian Science Monitor
Carrizales, Nicaragua ,
On the mountainous Nicaraguan border with
Honduras, life is harsh.
"We are short of food and water," says Cesar
Augusto Romero, the barefoot No. 2 in the Nicara-
guan militia in this small, dusty settlement.
In its battle with guerrillas backed by Honduras
and the United States Central Intelligence Agency, ,
Nicaragua is paying a severe price: Part of it
comes in the diversion of scarce resources to this
northern border region to support the fighters, and
part is to be found in the suffering of thousands of
displaced persons, such as Cesar, who have been
driven from their homes by the border war.
Nicaragua's Sandinista leaders acknowledge
that more than 500 people, many of them 1
militiamen, have been killed in this year alone by
the CIA-supported "counterrevolutionaries" ? or
contras as they are known here. Displaced persons
now number more than 40,000, evangelical church
officials estimate. -
But if one leaves aside the toll inflicted by the
contras in human suffering, it is probably safe to
say that the guerrillas have barely dented .
Nicaragua's Sandinista-led military machine. The
fighting against the contras has been done mostly
by the local militias and by reserve battalions
called up from other parts of the country.
The professional soldiers of the Sandinistas' reg-
ular, 22,000-man Army ? the men with the boots,1
good weapons, and lots of training ? have seen ,
some combat in the region. But most of them have!
been held in reserve.
Equally important, the vital economic heartland
of Nicaragua, the swath of territory stretching
along the west coast of the country from the city of
Leen down to Granada, has hardly been touched by
the contras' attacks. And that is the part of the coun-
try where many of the people live and much of the
cotton, corn, and sugar is grown.
Some people in the Reagan administration seem
to believe that more attacks, combined with unrest
inside Nicaragua, Will?bring the collapSe of -
the Sandinista regime. About five weeks ago,
on May 22, administration and congressional
officials told the New York Times that CIA
Director William Casey and another senior of-
ficial had predicted that the American-sup-
ported Nicaraguan rebels had a good chance
of overthrowing the Sandinista government
by the end of the year.
,CONTINUED
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UNITED PRESS INTEPNATIONA
28 June 1983
0080001-8
WA SHINGTON
Wright
House Democratic leader Jim Wright and other congressmen attended a White
House meeting Tuesday to "explore the possibilities" of achieving a bipartisan
approach to Central American policy.
Wright and several other Democratic and Republican congressmen were invited
to discuss the possible creation of a bipartisan commission to rally more
support behind President Reagan's policies. Reagan did not attend the meeting.
The Texas Democrat said the administration was represented by White House
chief of staff James Baker, CIA Director William Casey and Deputy Secretary of
State Kenneth Dam.
"They wanted to explore the possibilities of trying to achieve a bipartisan
approach to Central America," the Texas Democrat told reporters.
He said he told the White House officials "some Democrats (in Congress)
really don't believe the administration wants to achieve peace."
"I expressed that apprehension," Wright added, saying he told officials,
"You've got to demonstrate you really want to achieve peace."
The aim of such a bipartisan panel, Wright said, would be "to develop a
mutual approach to legislative and executive positions" in Central America.
"I think the general thrust of the conversation is that there is obviously a
need for negotiation ... to open up a dialogue" with Central American rebels ta
see if it is possible to arrange their participation in free elections, said
Wright.
He said he had no objection to Central American mediator Richard Stone
talking to the Salvadoran insurgents.
White House officials have acknowledged that recent polls show a decline in
public support for Reagan's approach to the problems of Central America.
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Approved For ReleaspgriliTOMaiRDP91-00901R000400080001-8
y MAUREEN SANTINI, Associated Press Writer
WASHINGTON
Reagan-Briefing Book
President Reagan's chief spokesman said Monday that a briefing book that
Jimmy Carter's former aides delivered to the White House appears to be a "more
sensitive" one than material Reagan aides used to prepare him for a 1980
campaign debate with Carter.
Patrick Caddell, who was President Carter's pollster during the 1980
campaign, had the briefing book delivered to the White House at the request of
deputy press secretary Larry Speakes.
Meanwhile, Speakes reported that the White House counsel's office has
received papers that were retrieved from "certain Reagan campaign officials'
files." He said the material was sent to the Justice Department, which is
looking into the matter. So far, no one has said how the Reagan campaign got
hold of the Carter campaign's material.
Speakes said that to facilitate comparison of the material forwarded to the
Justice Department with the material provided by Caddell, it would all be made
public "shortly," but apparently not before Tuesday.
Several hours after the papers sent by Caddell arrived, Speakes issued a
statement saying they were reviewed by White House Chief of Staff James A. Baker
III and others who were involved in the campaign, but did not appear to be the.
same material.
Besides Baker, Budget Director David Stockman, and presidential aide David R. ?
Geroen looked at the material, Speakes said, but did not have a chance to review
it thoroughly.
"In their view, their initial examination suggests that, while some of the
policy issue briefing material has similarities to what they recall having seen
during the campaign, it appears to be a more finished, more sensitive briefing
book than they recall," Speakes said.
"Further, the Carter briefing book includes strategic and tactical
information that they specifically do not recall having seen: more focused
debating points, recommended 'key lines' and 'first hand accounts,' questions
to ask' in rebuttal, recommended 'challenges,' etc.," said Speakes.
However, Speakes said that in a letter accompanying the material, Caddell
said that everyone concerned agreed "that the enclosed materials are the only
issue briefing materials prepared for and sent to President Carter for that
debate."
Earlier Monday, Reagan asked the Justice Department to pursue vigorously how
Carter briefing material turned up in the Reagan campaign, and the Democratic
Party chairman urged a special prosecutor be named.
CaNTINUTO:
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-E.P1711.E. APPEARED T!? ? 27 June 1983
Casey, Who Can't- Remember,
Berates Officials Who Read
Lou Cannon
1111111111111MNIMONIMINIMMINIMMINIft
REAcFA?)...
Central Intelligence Agency. Directorl
William J. Casey, whose memory ranges
from weak to nonexistent on unauthorized
disclosure- of President Carter's briefing
-books to the .1980 Reagan- campaig0Si
worried that fellow Reagaruites.are a. bunch...
of blabbermouths . . --
? Appearing before the senior, White.
House staff last Tuesday. and. reading -a:,
prepared lecture in a tone-described as"an'i
admonishing mumble," Casey fretted about..
the difficulties of keeping classified infor- ?
mation classified. 1.
? In the process, he gave several still-clas- ?
sified examples of "unauthorized discld;
sures" to staff members not normally au-
thorized to receive classified information of I
_
any kind_ '
Fortunately for the. security of the re-
public, Casey's examples included such pre-
viously rehashed events as the thwarted
Libyan invasion of the Sudan, the world-
publicized sending of arms to Afghan guer-
rillas and the open secret that the United .
States is assisting anti-government rebels
, in Nicaragua.
All of this was old hat. But some of the
White House staff members were startled
to hear Casey's report on care and feeding
of the National Intelligence Daily, the coin-
_
paratively low-level CIA analysis provided
daily to 150 U.S. government officials. A
legend on the cover of this document,
known as NW, says it is to he returned the
same day and not to be duplicated. _
According to Casey, a CIA check showed
that more than 100 of the documents were
not beim' turned, in and that some of those
returned came complete with handy nota-
tions instructing secretaries to copy them.
One responsive official, asked to return his
copy, supposedly gave back 75 photocopies.
As it ? turns out, there_ are remedies to
deal with such-carelessness. -
Casey mentioned'a few of them, such as
dismissal and. administering- lie-detector
tests to employes.who engage in "unautho-
rized disclosures...",, As- far: ats-*.known; he
would make an; exception-for briefing ma-
terial ---that4...mysteriously. aPpears on the
desk or campaign chairmen just before a
crucial debate;.'
Two days later,',- when. asked to provide
details of how the Carter briefing hook
wound up- in the Reagan camp, Casey gave
animpressive demonstration of what a CIA
directqr might do if he became- a prisoner
of wan- ?-? -?1 .
Although he provided his name and
rankVasey said he remembered nothing
whateverabout a briefing book that White
House ciiief of staff James A. Baker III re-
. ?
called Casey giving him. Casey's recollec-
tion has not.improved subsequently.
. Most Americans- would, of course, be
genuinely concerned 1)3/f:disclosure of real-
national-security secrets by those charged
-
with keeping them.. But somaia the White.
House believe that national security in the
Reagan administration would be served es-
pecially- well by appointment of a CIA di-
rector who starts with a greater presump-
tion of credibility._
That. is not Casey's long suit, as a couple
of jokes making the White House rounds
last week- attest. One, attributable to Alan
Abelson in Barron's,. said "CIA' really stood
for "Casey Investing Agairi,"4 reference to
the remarkable timeliness of the director's
successful stock-market investments.
The other, repeated on background and
presumably not classified, was a tongue-in-
? cheek assurance that Casey could not have
been the, recipient of the Carter briefing
hook.
"If Bill had received it," nne White
House official said, "he would have placed
it in a blind trust."
STAT
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ii-Erl? REPUBLIC
rAGB
27 June 1983
WHITE HOUSE WATCH-
ENDERS'S END
THE REPLACEIYENT of Thomas Enders as the State
Department's top policymaker for Latin America and
of Deane Hinton as ambassador to El Salvador have been
portrayed as Part of a move to "toughen" U.S. policy on
Central America, as a power grab by the White House
national security adviser, William Clark, at the expense of
Secretary of State George Shultz, and as a triumph of
hardliners such as U.N. Ambassador leane Kirkpatrick
and C.I.A. Director William Casey -over "soft" foreign
service careerists. Actually the -situation is both simpler
than all that and more .complex. Personality differences -
plaYed a big part in Enders's sacking. Hinton was riot
sacked at all. The personnel changes were not the result of
a change in overall policy toward Central America, but of a
determination by Clark that policy was riot being effective-
ly implemented. Clark has not executed a Kissinger-style
powei play, though; on the contrary, Enders was ousted
as part of a plan to shift operational control of Central
America policy from the White House back to State. And
at State, the new Assistant Secretary for Latin America,
Langhorne Motley, and the new ambassador in San Salva-
dor, Tnomas Pickering, are not noticeably harder-line on
policy than Enders and Hinton were. State's original
choice for the ambassador's job, iohn Negroponte, a ca-
reer diplomat who is currently ambassador to Honduras,
actually was rejected by the White House as having too
hardline a reputation in Congress.
NEVERTHELESS, the Administration's policy is in-
exorably becoming "tougher" as the military situa-
tion in El Salvador deteriorates and that in Nicaragua im-
proves. At least in the -short run, the new personnel
changes will do nothing to alter the general drift toward.
military solutions. Clark, instinctively hardline, has not
stolen power, but he has demonstrated that he has .it.
Shulm, more of a moderate, .has yetto showthat he can get
it back. Clark's fellow hardliners, including Kirkpatrick,
had lostsome major policy fights to Enders,- but in the end
they won his scalp, and tha tenhances their influence. One
of these days?after the 1984 election, if it can be put off
until then?there rriay be a decisive struggle dyer Central
America within the Administration, probably over wheth-
er or not to send U.S. combat troops or large numbers of
advisers to the region?to win it or stay out. At the mo-
ment, its likely that debate will continue over how best to
win while staying out and how best to handle domestic
opponents of Administration policyby conciliation and
persuasion or by threat and confrontation.
R000400080001-8
Thomas Enders's ?a-. 4./9-PG1 ICI IL caw
enemies among Democrats on Capitol Hill find it laugh-
able that he should be cast now as some kind of dove. Ten
years ago, as No. 2 man in the U.S. embassy in Phnom
Penh, Enders selected targets for secret U.S. bombing
raids in Cambodia, earning the respectful notice of Alex-
ander Haig, then chief of staff to President Nixon. As
Ronald Reagan's first Secretary of State, Haig intended to
pursue a high-tension polic-y againstLatin American Com-
munists, and he selected Enders to help carry out his aims
even though Enders had no prior Latin experience. (He
has since become fluent in Spanish, no mean feat while
working sixteen-hour days as a policy manager.) Haig
originally wanted a direct confrontation with Cuba, the
"source" of :trouble in Central America, but the Adminis-
tration instead chose quieter options?covert aid to anti-
government guerrillas in Nicaragua arid stepped-up mili-
tary aid to the government of El Salvador. Enders
supported both?and also backed a process of negotiation
with leftists and pressure for human rights reform in El
Salvador to an extent that aroused suspicion among the
Administration's hardest liners.
Enders's personal and management style did not en-
dear him to his adversaries. He is an imperious, icy man
who at six foot-eight acts as though he is used to looking
down at other people. One State Department official said,
"If Enders had done the same things he did, but had the
personality of George Shu2=, he'd still be here. The Rea-
ganites like to sit around comfortably arid talk about
things. You can't do that with Enders present." .Enders
also is described as "extremely turf conscious," unwilling
or unable to delegate authority, arid disrespectful of other
people's prerogatives. "The White House felt that Enders,
not Shultz, was running Latin American policy," one aide
said. "Enders really clicin't report to anybody." When
C.I.A. Director Casey wanted State to release new data on
Communist supply lines to El Salvador, Enders sat on the
information and deprecated it as "warmed-over -left-
overs." He got it into his head that Spanish Prime Minister
Felipe Gonzales could be brought into Central America
diplomacy and flew off to see him without consulting
anyone, leading the White House to decree that hence-
forth no one travels without permission.
From the standpoint of Enders's friends at State and
'elsewhere, the issues over which he was ousted transcend
-style and concern methods of implementing policy. They
say he wanted to conduct it as quietly as possible, so as riot
to arouse public and congressional opposition, whereas
:others,- including Ambassador Kirkpatrick, wanted to
cryst-alli.7e issues arid confront and defeat the opposition.
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Casey's advantage
J. Casey has an ad-
vantage over the average investor
''hose information generally is
limited to news reports and
whatever tidbits a brokerage firm
inay care to pass along. As director
af the Central Intelligence Agency,
Casey has access to secret data
about blobal economics trends that
OuId be worth a fortune in deciding
''hat securities and commodities to
Ivy and sell.
P
Nobody has accused Casey of us-
nag his inside knowledge in the pur-
ihaie and sale last year of stocks
ivorth millions of dollars: Nor has
be been accused of letting his in
-
Vestments influence his official
decisions as the nation's chief
loreigi intelligence officer.
But the mere fact that he refuses
to place his investments in a blind
tfust can make him the object of
suspicion and undermine his
credilility. Last year, for example,
Casey purchased substantial
amounts of stock in concerns that
nave foreign subsidiaries in nations
that are targets of current and
Potential CIA activity.
Casey's investments first became
an embarrassment to the Reagan
administration when it was disclos-
ed that he sold more than $600,000
Forth of oil stocks in 1981. That is
tjae year oil prices plunged due to an
eilglut. Casey was one of the few of-
ficials to see CIA estimates of
global oil prochicron and sales.
In an attempt to alleviate
ciriticism, Deputy CIA Director
John McMahon and CIA General
COunsel Stanley SPorkin began
reviewing Casey's investments.
THey are supposed to suggest that
he disqualify himself from any CIA
decision that could affect his fienn- ,
cial holdings
This is hardly reassuring. Casey
is under no obligation to accept the
-advice of his top aides and they
should not have to spend their time
? keeping track of his investments.
? Moreover, the director of the CIA
should not have to refrain from tak-
ing part in agency decisions that
President Reagan appointed him to
make.
Other government officials
realize they should avoid even the
appearance of impropriety-as well
as the temptation to use public of-
? fice for private gain. -
Casey's two immediate
predecessors at the CIA, Stanfield
Turner and George Bush, placed
their investments in blind trusts
managed by financial advisers
without their clients' knowledge. SO
have Mr. Reagan and a number of
Cabinet members with influence
over economic policy.
Casey ought to follow their
pro-
dent example.
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AAT I CUE L.re.c..=li
al root
BA LTIM CR E SUN
24 June 1983
1R000400080001-8
Excerpts from Reagan campaign aides
on Carter material
Washington Bureau 01 The Sun
Following are excerpts from let-
ters sent in response to queries on
how the 1980 Reagan campaign ob-
tained Carter campaign briefing ma-
terial.
From James A. Baker -
"In 1980:sometimeafter theRea-
?gan-Anderson debate and before the
Reagan-Carter debate, I do remem-
ber briefly seeing a iarge looseleaf
bound book ... that Was thought to
have been given to the Reagan camp
by someone with the Carter cam-
paign. But I do not believe this was
strategic material. It is my best rec-
ollection that I was given the book by
William Casey, with the suggestion
that it might be of use to the Debate
. _
Briefing Team. I should note, how-
ever, that I have recently checked
this recollection with him, and while
he has not contested my recollection,
he has no such recollection of his
own. It is my further recollection
that after briefly thumbing through
the binder. I passed it on to the De-
bate Briefing Team, headed by Da-
vid Gergen and Frank Hodsoll."
?o?
From William J. Casey:
"I have no recollection that I ever
received, heard of or learned in any
other way of a set of papers which
laid out the Carter debate plan or the
points which President Carter had
planned to make as described in Mr.
Barrett's account.
"Upon receiving your letter I
checked with my secretary during '
____ ?
the campaign, two of my special
assistants and five of the deputy
campaign directors and none of
them have any knowledge. that the
campaign ever received or had any
pape or information resembling
that described by Mr. Barrett."
?0?
From"David R ?Gergen:
? "1 do not recall 'ever receiving or
seeing a ''Carter debate book' or any
other notebook from the Carter cam-
paign ..... .
"It is possible that I did see some
pages of 'Carter material' for a brief
period, but I do not recall it.
"I do recall hearing that some
material from the Carter campaign
was present in the Reagan cam-
paign. To the best of my recollection,
the material was not described to me
as important or dramatic . .."
?o?
From David A. Stockman:
"My recollection of the 'docu-
ment' referred to in Mr. Barrett's
book begins with a package of ma-
terial that was delivered to my of-
fice ... from the Reagan campaign
committee... I believe this was Oc-
tober 23, 1980.
"... The documents dealt entirely
with policy issues ... and contained
standard arguments in support of
Carter Administration .initiatives
and policies.
"Due to the advocacy character
of these issue briefs it was apparent
to me at the time that they had in
some way come from the Carter
campaign.
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Approved For Release Utgil51k2ValSRCIT-9,10MCON134???
22 June 1983
JAY HARRIS
The CIA'
Today...
THE SPY BUSINESS has been around as
long as there have been people and govern-
ments who do not trust one another.
Which has been since the beginning of time.
That -keeping tabs" on one's enemies,- if not
friends, has been an:accepted wayof conducting
"foreign as well as 'domestic affairs few ?vildis-
pute. But, how it is done is another matter. .
.To Cel. Vincent Locithart,Rkt., and a vet;??
.eran of more thari-50 years service in the Na-
tional Guard and Ann), Reserve, along with ac-
tive duty in three wars, the business of having
one of the best intelligencesystemS in the world
is the business of survival.' -
- In- fact: the colonel, who spent 19 'years with I
the Central Intelligence Agency, argues such a,'
System is one of the nation's highest priorities:,
I 7
THAT WAS part-of a message the durrenttl
Paso soldier-writer. left in Lubbock thit week -in
a talk to South Plains Shriners and to us.
Col. Lockhart, a former Texas newsman, is
aware that the CIA; along with-the FBI and any-
thing else tharalevegaits of "spying"-are all high
on the target list of the liberal media aswell as
some politicians and do-gooders. .
Yet, he argues that of six major things nec.,.
-essary for this nation's survival, to have "the
finest intelligence system in the world" ranks at
the top. The CIA is working for America, not
against it. he argues in answer to those who ac-
cuse the agency of everything from spreading
dissension-to death. . .
-.As a matter of fact, I will simply tell you
that the CIA has never assassinated anyone.
and most of the charges against the CIA have ,
not had nor now have any basis in' fact," rthe
colonel says when asked about such charges.
The CIA has made some mistakes, some big-
gies. he readily admits, but is not guilty of most .
of the things of:which it is accused, he says., .
THOSE. AREN'T. the onlY misconcepcioni,
about thP. CIA, Lockhart says_ .: ?...,
In the first place. the CIA hasn't been around
since the days of Mata Hari. "Few people real-
ize Lockhart says, "but the National De-
fense Act of 1947. which created the joint Chiefs
of Staff concept. also created the CIA."
"Everyone says that it was started to pre-
vent another Pearl Harbor, but Pearl Harbor
had nothing to do with it," Lockhart says. ? ?
The nation was well into World War II .when
FDR felt he needed some sort of intelligence
setup on a worldwide basis which could central-
ize the vast amount of data pouring into Wash-
ington. He called on Wild Bill Donovan to set up
the Office of Strategic Services, OSS. which
played a key role in some phases of WWII.
After the war. the Central Intelligence Group
was formed by Executive Order, more as a
caretaker for records of the OSS than anything
else .But, then Pr?dent Truman accepted ad-
vice to expand the agency's role and pushed the
CIA as part of the defense legislation, Lockhart
says. HST persuaded Allen Dillies, who had
worked with the OSS, to get the whole thing un-
derway. It was in the early stages of the CIA in
the 1950's that Col. Lockhart, after a stint as
, publisher of The Canadian Record. and study at
rthe Staff and Command School, became in-
volv.e;d with the agency in?a tap-level position.- -?
.,??. ?
LOCKHART SAYS the CIA has been blamed
? for, and given credit for Many things' it should
not have been.
? Among :its . early ?notable- successes,'" -he
cites as 1953 when the CIA "stiffened the.back-
bone of the Iranian Army and helped the Shah of
Iran regain his thrOne against Mossadegh:" The
other had to do with aiding in the defeat of the
Communist regime which -sought to takeover
Guatemala in 1954.
But. despite the fact thatthe CIA was doing a
-good. solid job .athome and.abroad in taking in-
formation and 'making it into solid- intelligence,
the organization soon got in over 'tits 'head and
capabilities, Lockhart admits-. ? ?
"The Bay of Pigswasthe first great disaster
for -the agency,!"?.Lockhart Says. It ? failed, .he
says, because 1. Such an operation was beyond
the capability of the CIA, 2. Political 'reasons
caused a change in plans, and 3. JFK withdrew
critical U.S. air support at the last minute.
The Vietnam War'wat another 'dagger in
the side of CIA," 'Lockhart ? says. Again the
agency was called on to do things past-its cana-
1 bility,. "and when the unpopular war ended, the
( anti-war groups turned their vindictive -crit-
icism' against both the.CIA and the FBI."
. WATERGATE, WITH the 'involvement of a
',former CIA agent, and the baying of the liberal
media only added to the CIA's problems.
In the wake Of what Lockhart calls a "witch
hunt" ,by pongress, "grossly exaggerated
charges were Made in the media." Those
charges induded the claiint'that the CIA was
guilty of massive domestic spying; had assassi-
nated foreign leaders, and possibly even Presi-
dent Kennedy." The CIA has even been
torthe death of Marilyn Monroe.
But, Lockhart says that "the most damaging
'assaults on the CIA have been by a handful of
.former employes, mostly in the name of the
peoples' right to know." And while he thinks the
.government must answer to the people, Lock-
'hart argues "no intelligence system can operate
lin full view of theworld. The KGB doesn't!"
Lockhart says that Adm. Stansfield Turner
did more to "emasculate" the CIA as its direc-
tor under President Carter than anyone before
or since. But, under William Casey, he says
=things are looking up.
"I believe the CIA will return as a top-flight
organization," he says, "But I am just as sure it
will never return to the glorious days of ti6-liac-r
fifties and early sixties. Perhaps it .is jtrtt' '
1.. Well..."
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STAT
.1\io One of' th
learagnallS e plaintiffs. a Nicaraguan
health official named Dr. Mynra Cunning-
ham. came to New York City last week to
publicize the case and meet with lawyers
' at the Center for Constitutional Rights, a
New York-based public interest law firm:
She is regional health director for the
province of Zelaya.
sue to stop
u
?
-ii-Ts achy"
4:By Susan-.3affe
Spec
44SegmiiNicataguaniti-
zens,?./contendinkthe Llnited States )xe-
?sporialblelonsurtigoverninentiguerrilla-it-
lacksitn their country,:-ere4suing top Rea-
gan Administration officials.gisking
-million eacheindamages.
According to legal papers flied in feder-
al district court in Washington in Decem-
ber, the Nicaraguans represent various
other citizens who "have been murdered,
- mutilated.o.kidnaped and/or raped as the
re:sult of US-sponsored paramilitary ae-
' tivities' [which] violate fundamental
principles of human rights established un-
der international 4law --and the Constitu-
, -lion of the :United -Stateii.7 4n._atidition -.to
.,112 nn Icompensatory and :punitive
i:clairisigesplaintiffs :seek a:court
it;lorder,prelqdtb*FSAnterferrObetri
- 7. ?
I.'. ? ? -..ttgr?? - .
't.the suitarealegi.VIonaldDelkunSID-CallL)
isind twoRdiarrdsicients-whoelairn Flor-
?iicia's ;paramilitary -training zeampalor
*icaraguanveheis vioiate local laws. ?
'The Atiefendants include Secretary -of
Sta '
Feasey, - - ense :Secretary .'Caspar Wein-
terger anti ieaciers ot several mciied-Nicara-
Lg;uan paramilitary ...roily& ? ,
, Last week,. the US Justicepepartmerxt
k.responded,lo the a/gee "lvy asking 'US
;District.Aldge.lioward.Corcoran,in Wash-
ington to 'dimples the complaint
-A Justice ?Department spokesman,
:asked fat,commentcalleclAt linappropri-
-ate- for government defendants to be
sued. -The President has a right to con-
duct foreign affairs," he said.
SF: zrz .?
The unusual lawsuit is based on the
Alien Tort Claims Act of 1789, which per
-
mils foreigners to sue in US courts for vio-
.*.latiorts of_Anternational law -banning ex-
ecution ,and ?torture. -The ,comept
-that such actsviolateinternationalprinci-.;:
p1es of1:mm9.n...rights was affInned in the
Nuremberg trisls after World Ayar.31.,
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ozir
20 J un e 1983
Pardon Me, But Am I That
'Hard-Liner' the Anonymous
Sources .Are Talking About?
Time wat, I believed a leak was the unau-
thorized disclosure of confidential information - ,Jeane Kirkpatrick
about actual events?such as, 'for example, .
conversations within the -executive _branch.
That, was before I understood ?thata leak- is
the weapon of choice in Wasttingtan'S unend-
ing internal warsitleally stiitect*spreadini
disinformation about fictive events....-7
Undocumented allegations and anonymous,
sources -link-private ambitions to public:policy:
in .labyrinthine webs of personal and'political
relations. Two or three well-placed -"sources"
working with two or three well-placed journal-
ists can create an issue, shape an interpreta-
tion, build, or destroy a reputation. From the
perspective of political science, it is fascinats
int. From the perspective of public office, it is
frustrating beyond belief.
How do you correct. the record when th'e
discussions are all confidential? My interest is
"In my memorandum to
the president . . _I took a
very hard line' on
hunger, malnutrition,
infant mortality,
illiteracy, economic
underdevelopment.-"
more than academic or personal. The paper
triangle that links symbiotically anonymous
and interested burealacratS and 'politicians
with dependent journalists is as much a :threat
to an informed, public as the "iron triangle" of
bureaucrats, politicians and the "Interests" is -
to honest government.
During the past month or two, much of the
US. national media have relied on undocu-
mented leaks and unidentified sources to con-
struct a political melodrama in which some
bad guys?the "hard-liners"?are pitted
a.;:aint some good guys?the "moderates"?
in -a contest tor control. df U.S. policy toward
? :El Salvador and th6Central :American region:
-:According to this-scetlario, the good guys sup-
-Port political solutioria;megotiationS,,regionali
dialogoeArpartisaraconsenstre!, and are -deeply
coneerited -about'underlying economic .and
sOcial'PrOfilemermllard-liners," we are told,
,oppose these goid things;-'they advocate mili?
tary solutions, and are dead set against ne-
gotiations,- regional dialogue .and bipartisan
consensus-building. Hard-liners prefer Toliti-
:cal polarization...
? In the current s.cenario, hard-liners are Ire-
quent thoug.h
sometimes they are called Casey, Weinberger,
'Stone or; even. Reagan. Their principal ac-
tivity is giving bad advice to the president.
? --Because 'my name, is also Kirkpatrick and I
hold almost none of the -views -attributed to
.that Kirkpatrick. I desire to clarify just what
kind of advice I have given in the weeks after
the president asked me to visit-Central Amer-
ica. I MiderstErnd that it iS not considered
sporting to introckice into these Washington
games verifiable facts or. on-the-record state-
ments of participants; but, then, I am not a
thoroughly seasoned player and have not lost
the predilections of my' regular profession.
Obviously. I sneak only for myself. I.:have
j not been present in most of the conversations
of other participants.- However, since I have
often been cast by '"sources" as the "hardest"
and "most militant" of the hard-liners, my
role seems relevant -to the -whole- dramatic
production, and the fact that my -actual views
-and recommendations bear almost no relation
to those attributed to me undermines,
should suppose, the credibility of this melo-
drama.
Interested persons might want to know that
instead of opposing attention to economic and
humanitarian dimensions of Central Amer-
lea's problems. bipartisan participation in
policy-making, the Contadora process and the
broadest possible participation in Salvador's
election's, I have consistently made oppasite-
recommendations. I have advocated greatly
expanded humanitarian and economic assist-
ance; bipartisan participation in formulating a
new policy; unambiguous support for the Con-
tedora process and regional dialogue: and
maximum efforts to secure the broadest pvsi-
, ble participation-in Salvador's elections.
In my memorandum -to the Pfesident .on re-
turning from Central America 1 took- a very
Thard line" -on hunger, malnutrition, infant
mortality, illiteracy, -economic- Underdevelop-
ment,
rougress" I wrote, "has -not provided the
resources or-support needed in ''part. at least,
'because We have not worked with them to de-
velop a bold, imaginative program which goes
beyond preventing Communist victory in the
very short run, to produce for the chronically
deprived people of the area the reality of pre-
sent progress and the promise of more to
come."
cited Congressman Mike Barnes' pro-
posed "one-percent solution" to the region's
problems (using one percent of the requested
defense budget to finance an adequate eco-
nomic effort). Iyecommended For inclusion in
the speech to the joint session a program "so
beneficial to the: terribly poor. mainouris;hed
people of the region that the American people
will be proud to support it . ." and also
recommended the establishment of "a na-
tional bipartisan commission [which would!
examine how we should apply our talent and
resources to foster health, growth, security
and democracy among our neighbors in Cen-
tral America and the Caribbean...." I further
explained to, the president that this was an
approach I had discussed with Sen. Jackson
and other Democrats.
Though current mythology suggests other-
Wise. new broad, bipartisan initiatives were re-
sisted by the "good guys" themselves. So were
efforts by the governments of Central Amer-
ica and thetontadora Four to get- under way
a process. of negotiations for Latins only.
President Herrera- Campins last week de-
scribed to the Venezuelan press the message
he asked me to deliver to President Reagan:
'!Don't let your government torpedo our con-
ference."
r .
CaKirtZTUED
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FAGE '17 June 19'33
14
CAMPAIGN TALK
Trashing the Palace Guard
President Reagtin.was said to be highly amused by the
Incident, but his chief:aides are steaming. Veteran cam-
paign strategIst F. Clifton White (he ran Barry Goldwa-
ter's 1964 presidential campaign) asked to meet alone with
the president recently and was granted an audience ? but
with a couple of Reagan aides, including Deputy Chief of
Staff Michael Deaver, in attendance. White had been
warned beforehand not to discuss the 1984 campaign, but
once he got Reagan's ear, began to trash everybody in sight,
including Deaver.
White told Reagan that
Deaver.was using his.White
House eposition to build? gip
clients for a political con-
sulting business and that
Chief of Staff James Baker
was an inept strategist iden-
tified with the losing cam-
paigns of Gerald Ford in
1976, George Bush in 1980
and Republicans generally
in the 1982 elections.
The only kind words
from White were for the
more conservative Reagan
aides: Edwin Meese, Wil-
liam Clark and CIA direc-
tor William Casey.
Deaver lectured White
after the meeting, but White's tirade apparently didn't
bother Reagan: According to Republican sources outside
the White House who've heard it, he's been retelling the
story with relish in recent days.
up
DEAVER: Didn't take kindly
to strategist's flak. ,
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ON PAGE /9---/ ? 124 June 1983
? the Contras.. But ine Official spoke cif
U.S. Officials Say An the problems as well: "More tension on
? the Nicaraguan-Honduran border, den-
Are Growing Stronger by the
By LESLIE H. GELB
sPedal WM, New Yarlerimes
WASHINGTON, June 13? Adrainiaa Panama, Mexico, Colombia and 1.rine-
tration officials say that the number of
guerrillas fighting the Nicaraguan Gov-
ernment has increased by about one-
third to 8,000 in the last two months and
61/Al
D?
ger of spreading conflict, less control by
er'
jf us, and therefore less ability to trade
peace it Nicaragua for peace in Salva-
? dor, should we ever choose to retake
such a deal."
zuela ? that has been working to find a
negotiated settlement of Central
American strife.. - -
?? But at least one key Administration
2,000 Reported in Pastore Group
The Pastora group, known as the
Democratic Revolutionary
operates in southern Nicaragua with
bases in Costa Rica. It has swelled at
the most rapid rate, increasing from 500
that the rebels have enough support in- ? official directiy, and another indirectly to 1,000 to ahnost2,000 in three months.
side the country now to continue fight- -questioned whether Washington-was A second group, known as the Nicara-
ingsvithout United States backhig. . ? 'now in a position to deliver the Contras guan Democratic Force, is led mostly
?
intelligence estinsates worked on by Inauch an arrangement-
by former officers of the National
on1,1 from several departments:a, - "We could not call them off even if we Guard of -Anastasio Somoza Debayle,
(MU wanted " nn effiCial vni,i "flier who was overthrown by the Sandinista, .
.This group operates in northern Nicara-
gua with bases in Honduras. Its force
now stands at 6,000, up by 1,000 in the
;last two months.
,
i agencies Predict 'that- -the larces'''''1" caseratiVes 'in the field tell us that Nice-
grow larger and that in six months they , raguana are Nat joining up, lint that
will control almost one-third of the we're recruiting them
population in rural areas and more than The officials also said there was in..
half of Nicaragua's 57,143 square miles -cieasing risk that the size and capabil- ' ? ' Miskito Indians are said to contribute
,of territory, othasais said. It could not jaity of the Contras in the north might about 1,000 rebels to each group's total.
be determined whetherthese were for- rSpark direct conflict between Nicara- The intelligence officials said it was !
mal estimates that had been presented t -gm and Honduras, although all of the their understanding that most of the
-officials were quick to add that they did 8,000 guerrillas were in Nicaragua. One
to President Reagan. official said this meant about two-
' not fear this outcome.
25,04ifiNicaraguan Soldiers ? The Sandinists have complained in thirds.
The offiriala did not specify the -recent days of stepped up fighting on
$4er
amount of territory now under the con- ibis.ethfront and of direct involvement by dillion in Direct Support
_
trol of the anti-Sandinist forces, except Hondnran Army. Foreign IdiaLster Mr. Reagan said United States sup-
Miguel d Escoto Brockman told a pub-
to say that it was a greater amount in itu m ? in managua nn Friday that port for the Contras began in March
the south than the north.
1981 with the avowed purpose of inter-
The- "thissituation that threatens to be-
so-called Contras ? those oP?? come a war, an armed confrontation be- dicting arms moving from Nicaragua to
posed to the Sandinist Government in :tween Honduras and Nicaragua." El Salvador. He broadened these opera-
s in N ovember 198. 1 to supporting
. Managua are already' larger and bet- asked about this today, an Adminis- ? and conducting "p and
ter-armed than the 6,000 leftist guerril- -tration official said Washington was olitical paramdanratt
las in El Salvador. The Nicaraguan 'aware of some step-up " in the 'light- .coaaTupply hues-T.M4tcaragust_ and ?
military consists of a 25,000-man army, lug-officials? visited elsewhere in Central America. The
- Honduran recently
plus about 50,000 militia members. ? - United States has spent about $40 mil-
Administration officials said in inter- -spoke of the -Washington to ask for more an and hen in direct support of the Contras.
- need for outside combat
views that they did not believe that the *support in the event of -open hostilities About six months ago, when the Con-
Contras would be able to overthrow the?...with Nicaragua. Administration offi- tra forces were less than half their
Sandinist Government in the foresee- asais have maintained that Mr. Reagan i present size. and beginning to set up
able future. "The Sandinists have the :would. meet United. States commit- ? bases inside Nicaragua, a number of
political apparatus to maintain control ? ments under the Rio Treaty of 1947 to legislators became concerned that the
of the population centers even with a help defend a nation underattack.
shrinking economy-and pre-glee:IMO
the countryside," oneofficial said.
It was reported several weeks ago
that William ?T. Casey, Director of Ceti-
/nal Intelligence, told members of Con-
gress that the Nicaraguan rebels had a
goad (+lance of overthrowing the-San-
- dinists by the end of the year. Mr.-Casey
subsequently denied having said this.
Cin April 78, Mr. Reagan told *a joint
Administration aim had gone beyond
interdiction of supplies and evolved into '
' Aid From Other Governments ? efforts to overthrow the Sandinists.
: The Administration officials also said ' a The Administration denied any such 1
1.
that the Contras were receiving mill- intent. But Congress has moved toward
tary and economic aid from sources be- exercising greater 'oversight of the 1
sides the United States. This aid is said operations. The House Foreign Affairs !
to be coming from several Central and Committee voted to terminate funds for-
Latin American governments and from the covert military onerations, but the
private sources. - - - Senate is not likelyao follow suit.
Eden pastora Gomez, a former San- Over a year ago, the C.I.A. reported
, to Congressional intelligence commit-,
i tees that the anti-Government forces in' i
'Nicaragua totaled a little over 1,000. By'
last December, the estimate was 4,000,
and the intelligence committees de-
manded a monthly summary of the .
i operations. ;
dunst commander and now a Contra
session of Congress: "We should not?,leader, spent a few months in Mexico in
and we will not ? protect the Nicara- early 1982 after leaving Nicaragua, and
guan Government from the anger of its according to intelligence officials, pri-
own people. But we should, through at. vete sources in Mexico have been
plomacy, offer an alternative." , providing him with "travel funds." This
The alternative, according to Admin- was confirmed by an ass?clate of fyrit'?
.
istration officials, has been for Nicara- Pastore in Mexico City.from these non-Washington
gua to cease support of the Salvadoran sources is described as not being large.
rebels in return for Washington's call- Administration officials were mostly
ing off the guerrillas in Nicaragua. The pleased .with_the _policy of _sapporting
-officials said this has also been-the aim
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:Nicaraguan revolt grows
From wire dispatches
U.S. administration officials said
yesterday that the number of guerril-
las fighting the Nicaraguan govern-
ment has increased by about one-
third to 8,000 in the last two months
and that they have enough support in
the country to continue fighting with-
out U.S. backing.
Intelligence estimates worked on
by analysts from several depart-
ments and agencies predict-that the
farces will grow larger and that in six
months they will controtalmost one-
third of the population in rural areas
and more than half of the nation's
57,143 square miles, officials said. It
could not be determined whether
these were formal estimates that had
been presented to President Reagan.
The officials did not specify the
amount of territory now under the
control of the anti-Sandinist forces,
except to say that there was a greater
amount in the south than the north.
The so-called Contras are already
more numerous and better armed
than the 6,000 guerrillas in El Salva-
dor. The Nicaraguan military con-
sists of a 25,000-man army, plus about
50,000 militia members. Administra-
tion officials said they did not believe
that the. Contras would be able to
overthrow the government in the
foreseeable future.
"The Sandinists have the political
apparatus to maintain control of the
population centers even with a
shrinking ? economy and pressure
from the countryside," one said.
It was reported several weeks ago
that William J. Casey, three tar of cen-
tral intelligence, told members of
Congress that the rebels had a good
chance of overthrowing the Sandin-
ists by the end of the yearaHe denied
having said this.
Meanwhile, Reagan left open the ,
possibility that his special envoy to
Central - America -might meet with
representatives of the guerrillas in
San Salvador, a White House spokes-
man and a congressman said.
The subject came up as Reagan
met with 'members of the Foreign -1
Operations subcommittee of the
House Appropriations Committee.
- Rep. Clarence D. Long:DM& the
chairman, said the guerrillas had ex-
pressed to him an interest in holding
? such a meeting and that he relayed
this interest to Reagan, who made no
specific comment.
But Larry Speakes, deputy press
secretary, said the proposed meeting
would be discussed with envoy Rich-
ard Stone when he returns today from
a trip to Central America and his
recommendation would be followed.
Long said Reagan indicated sup-
port for a two-track approach to a
solution in El Salvador: negotiations
intended to lead to elections plus con-
tinued - -financial support for the
military.
, "We were assured we now have a
two-track approach," Long said.
Support for such an approach could
indicate a shift in administration poli-
cy. The departure of Thomas O. En-
ders as assistant secretary of state
for Latin affairs and the removal of
Deane Hinton as ambassador in San
Salvador were reported to have
sternmed from their advocacy of such
a policy.
But Speakes said, "The president's
position remains the same. We've al-
ways favored dialogue leading to
elections" as well as support for the
military. ?
Stone, winding up a 10-nation tour,
met in Mexico City with Foreign Min-
ister Bemardo Sepulveda Amor to
review differences about area
conflicts.
Stone began his tour June 3 in El
Salvador. He also -visited Panama,
Colombia, Venezuela, Costa Rica,
Honduras, Nicaragua, Guatemala
and Belize.
Meanwhile, a Nicaraguan rebel ra-
dio station in Honduras said the army
has launched a major counteroffen-
sive in the northern mountains.
? The Sandinists confirmed that
heavy fighting continued near the
Honduran border, especially near Ja-
lapa, about 120 miles from Managua.
In another development, a Hondu-
ran army spokesman said that about
100 members of the U.S. Special
Forces will arrive today to staff a
center that will be-used to train Sal-
vadoran troops.
Col. Cesar Elvir Sierra said the
Green Berets would arrive by ship at
Puerto Castilla, where the center will
be established on an isolated stretch
of Caribbean coast about 150 miles
northeast of Tegucigalpa.
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? 13 June 1983
gy Christopher Hanson
WASHINGTON
Hawke
Australian Prime Minister Robert Hawke said today he had established a wirm'
personal relationship with President Reagan but had also aired differences on
several military and economic issues. .
Hawke met with Reagan and other senior officials for two hours at the White
House and later told reporters, "We now have a firm and warm personal
relationship."
But he said he had also expressed Australia's concern over possible American
subsidizing of farm products that he said might harm the Australian economy.
"I flagged very strongly to the president our concern about this matter," he
said.
On military matters, Hawke said he had told Defense Secretary Caspar
Weinberger that he could see no reason for Washington to bar the transfer of
certain sensitive military technology to Australia. He said he could see why a
nation such as Japan -- a potential competitor in this area -- might be excluded
but said Australia was not in the same category.
Hawke said he had received assurances from CIA Director William Casey that,
contrary to published reports, the CIA had never secretly interfered in
Australian politics.
He said he had also been assured there would be no interruption in
Washington's sharing with Australia of pertinent intelligence, despite a recent
leak to an Australian newspaper of classified documents containing information
provided by the CIA.
Hawke's government obtained a court injunction to prevent publication of the
documents, which were reported to have contained evidence supporting allegations
that U.S. intelligence was not sharing information with Australia.
Hawke said he had asked Weinberger to consider allowing an Australian
military liaison officer to be based in Washington to monitor the sharing of
intelligence.
EXC.ERPTEC
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.UNITED PRESS INTILITATIONAL
13 June 1983
'Hawke seeks secret sharing
ly JIM ANDERSON
WASHINGTON
Fla WKE
00080001-8
Australian Prime -Minister Robert Hawke said Monday the U.S. government has
agreed to studypis proposal for a peTanent.liaion office in Washington that
would give Austr4liaw more information about any U.S: miltiary alerts.
The agreement to study a closer military relationship is not a commitment by
the United States to accept such an arrangement, he said.
Hawke, at the end of the first full day of meetings with American officials,
said the main purpose "was to establish a personal relationship" with
President Reagan.
"We took that opportunity and as a result of our meeting we now have 'a warm
and firm personal relationship," he said.
Hawke told a news conference at the Australian embassy that, in his meeting
with Reagan and Secretary of Defense Caspar Weinberger, he reaffirmed his Labor
government's commitment to the ANZUS defense alliance.
He saihe suggested the alliance partners -- Australia, New Zealand-and the
United States -- perhaps should define more specifically the geographical
boundaries of their alliance in their annual meeting in Washington next month.
In the most sensitive area -- intelligence sharing -- Hawke said he told
Weinberger Australia wants to have a permanent military liaison office in
Washington who would have the specific responsibility of acting as a link
between the U.S. communciations and early warning bases at Pine Gap and
Nurrungar.
Weinberger, he said, agreed to study the proposal and it will be taken up at
a technical level. Hawke said he had expected nothing further than that in this
preliminary meeting on the subject.
Hawke also said that he discussed with Central Intelligence Agency
bi,rector William Casey the recent wholesale disclosure of U.S. classified
documents by an Australian newspaper. He said he made known his government's
intention to keep such information secret.
He quoted Casey as remarking wryly, "that sort of thing is not confined to
Australia." Hawke said he was assured U.S. intelligencg sharing with Australia
would not be affected.
Hawke also told Reagan i that Australia is deeply interested in trying to bring
the Republic of Vietnam out of its political isolation.
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ASSOCIATED PRESS
13 June 1983
By TERENCE HUNT
T-WASHINGTON
Reagan-Australia
1080001-8
Australia's new prime minister, Bob Hawke, tOld President Reagan on Monday
that there is no nation in the world the United States "will be able to rely on
more as a constructive ally than Australia."
Standing next to Hawke outside the White House, Reagan spoke warmly of the
'prime minister and called Australia "a great nation that plays a vital role in
regional and world affairs. It's a key ally upon whom we can count."
It was the first meeting between Reagan, a Conservative, and Hawke, a former
trade union chief whose Labor-Party came to power last March 5, toppling
conservative leader Malcolm Fraser.
Later, at a news conference, Hawke said Australia's goal is to "bring back
Vietnam into the wider community of nations," and that its policies toward Hanoi
will be guided by that principle.
On another subject, Hawke was asked about allegations that the Central
Intelligence Agency had a role in bringing about the downfall in the
mid-1970's of the previous Labor Party government in Australia.
Hawke said he received assurances Monday from CIA director William Casey
that such allegations were unfounded.
EXCER21.777);
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Approved For Release 2005/11/2811AWREIP91-00901R0004
13 June 1983
r'rr!LE APPEARED
ON PAGE -31
SURINAM
The CIA Vs. the Colonel
entral Intelligence Agency director
William Casey appeared before mem-
bers of the House and Senate intelligence
committees last December to deal with a
touchy problem: Lt. Col. Desi Bouterse, the
erratic new leader of Surinam, a former
Dutch colony on the north coast of South
America. The colonel had seized powerin
1980. In late 1982 he rounded up 15 of his
leading opponents and had them shot. To
make matters worse, Casey's dossier had
Bouterse flirting with Fidel Castro and in-
viting 100 Cuban advisers to his country. To
head of another Nicaragua, Casey pro-
posed an old-fashioned CIA solution: to
arm a force of Surinamese exiles and send
them back to toss out the troublesome
leftist.
The plan, disclosed last week by ABC
News, outraged committee members. Even
Republican loyalists called it "hare-
brained" and "preposterous." Most mem-
bers weren't objecting to the principle of
such an operation; but they demanded far
more evidence that Surinam represented a
threat to 'United States security. Still, the
CIA pressed on. To beef up its case, the
administration brought 'U.S. Ambassador
to Surinam Robert Duemling back from
Paramaribo to explain just how deeply Bou-
terse was being drawn into Castro's orbit.
Duemling reported that a high-level Soviet
diplomat was stationed in Surinam and that
Bouterse was spending a great deal of time
with Cubans at odd hours in the morning.
On the other side, there were plenty of
candidates eager for a coup. Dr. Henk Chin
A Sen, a former surgeon and leader-in-exile,
was spending a lot of time on KLM Bights
between the United States, where he works
JI/A1
00080001-8
ata Pittsburgh hospital, and Holland, where
he beads the Surinamese Liberation Move-
ment. The doctor had been president of
Surina.m for the first I 4 mon ths ofBouterse' s
regime. He was forced to resign when the
military leader blocked his plans for demo-
cratic reforms: Since then, the Dutch press
has reported Chin A Sen's attempts to or-
ganize a small army from among the 250,000
Surinamese in Holland. He has also pledged
repeatedly on the world broadcast of Radio
Netherlands that the "liberation" of Suri-
nam would be imminent. Bouterse ordered
his people n ot to listen to Radio Netherlands
after his men noticed that the streets of
Paramaribo emptied every evening when
the Dutch news came on. There have been
rumors in Holland about ties between the
former president and the CIA. But no one
has ever proved them.
Veto: The story of Casey's plan has sharp-
ened the debate on how much power Con-
gress should have over CIA operations. Un-
der present law, committees can reduce
funding for a coven operation they do not
approve of, but they can not cut
off the operation altogether. Taking full
advantage of those rules, Casey did not give
up his coup idea immediately after hearing
the congressmen denounce it. The plan was
killed, said a congressional source, only
much later, after administration officials
warned that it would complicate congres-
sional support for other CIA operations in
Latin America. Democratic Rep. Wyche
Fowler has scheduled a hearing next month
on his bill to give Congress an outright veto
over the CIA covert activities. But the
CIA's friends on the Hill are trying to turn
the Surinam debate to their own purpose:
even now they argue disingenuously that,
since congressional disapproval killed Ca-
sey's plan to topple Bouterse, Congress
doesn't need a stiffer law.
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Approved For Release 2005/11128 :NNA-RefratISOBDIP.000400080001-8
r/111,1 r rinnr,vrtrp 13 June 1983
,
0::
INTELLIGENCER
No Respect
For C.I.A. Chief
WHAT 'DOES F.B.I. DIRECTOR
William Webster think of
William Casey, " his con-
troversial counterpart at the
C.I.A.? Not much, accord-
ing to a source close to
Webster..
'Webster has called him a
'buffoon' a couple of times,"
said the source.
Another source who
knows Webster 'told New
York that the F.B.I. director,
a Carter-administration ap-
pointee with a ten-year
term, got along well with
Casey's predecessor, Ad-
miral Stansfield Turner:
'They were buddies from
Amherst. and they set up
procedures to combat an
underlying hostility between
the two agencies, forcing
them to cooperate," ex-
plained the source. With
Casey, "the cooperation is
steadily deteriorating," he
added.
Casey has been in the
news lately for having
traded heavily in the stock
market last year, after be-
coming C.I.A. director.
The F.B.I refused to com-
ment.
STAT
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STAT
41-1-171J. kPPEAREapproved-For Release 2005/11/28 : CIA-RDP91-00901R000400080001-8
DI' t' EtRLs
la ;tune 19E::.?
rust, Mr. Casey
ykoirs.:R is the director :of the ?wheelingand-dealing lastiall, Mr. Casey
-Centml . intelligence ;Agency bought ,neavily into electronics firms and
(MA). When he puts his ? chips into drug companies with Central Amer.
dawn.. it's a good loan subsidiaries. .It takes little imagina-
Only one man can4nake7that suat--. -.lion s=ise how the -CLA :director's
merit: William Cvsey.-kie-ds-the-direC---privilegescouc conven -Allis public -trust
?tor. of tineCIA.-51-le* As.aiso thrector:of --?-intopriltate..gain-in suchfields. ?
tfis dal trivestrnents.Lw - ?tt .. ? ? -?-?N owevittenceishows :that Mr ;Casey
:Case.P'enekekeitsziMleii.i?P'le ?REngtotat ecl aryraatC1:q"erilaPS tis:133 vestments
. stock marisetiast. year_S-IiSfirkalnia},dis. ..2re as 4ini-ainted ,2s _those .7:tof Tetired
-.:tiosuretforinkytPai -schoolmarms -in Kansas. The ? -issue
'lt -showi-tharmrieTtooirgtrfiand sold Axpto . conflicting public and private,.interesis.
S7 -millioniwortirof stoolstri,ait-ileast-'93 ? , however, =ad it must :be: addressed in
- ?compa.nies ?.over .26...days -terms -beyond .marrov,
-.the rnanket-scia.red."; - ":
?_Lotsof4cnvestorsinaitiebig=ionev-trur-" ?resident eagan. Vice ...President
ing the Iriaricei's boom. of -course. And Bush. ariC Treasury Secretary --Regan all
Mr. Casey -prObabiy. is la financial -established blind trusts upon taking of-
-after a long career as a Wall Street inSid7 f ice. Those accounts administer the pri-
er. But now that he heads the-CIA. he's a Vete finances of public men without
.different kind. -of insider -- andthere's, their direct personal knowledge Or in
-
the rub. volvernent. ? "rhe arrangement avoids
MI-. -Casey's information sources -now -even an -appearance ? of conflicting inter-
ere. of courst,--unmatChed. Does he juse ests. h is standard procedure ? for public
his access 10-classified intelligence from ?officials to4establish such mists in most
all over the world to tve inmself inslauces,. M.C.2sey's ?predecessor fol..
tages it his investments? -.lowed that procedure.
avoidabie.suspiclof,. Mr. Casey -refused .to do so. 'Yet, as.
In .3961, for :,example,'Mr.- Casey .un- 'bead of-theICI.A.:. the need -for-the Tredi-
loaded more than S600000 worth of biliry triarresniz.-f-Torn -such ati-an-ange-
? stocks. Oil prices were dropping because men: is perhaps MOM COEOpeillog .rhgt
of the global oil glut: Thie, many inves- 'for any ,otherfigure -it ,Crovenarnent.
.. -tors sold oil stocks for-the-same reasons. The Intelligence oversight r-ornmirtees
But no other investor had 'Mr. Casey's of. Congress -should scruririi7e Mr. Ca-
access to CD-', -economic analyses ? of .sey!s financial .practices. Beyond that.,-:
.Probable production and sales. Time- 'however.. the Reagan Administration
ly information is priceless. should require 1. Casey to. ?estAbiisb _a
:During his , 26 days ,-...of ? white.-hot blind trust..
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TAT
"PIE APPEARELApp-Yoved For Release 2005/11/28 CIA-RDP91-00901R000
Or! ?AU ;L-,,e- A MIAMI HERALD
soloswirr"---
11 June 1983
00080001-8
rust, Mr. Casey
mY BROKER is the director' ofthe wheeling and dealing last fall, Mr. Casey
,Central Intelligence -. -Agency - bought heavily into electronics firms and
(CIA). When he puts his chips into drug companies with Central Amer-
down, it's a good bet ."7:t... ican subsidiaries. It takes little imagina-
Only one man can ?makelthat state -tion tion to surmise bow the CIA director's
rnent: William J. Casey.--He is the-direC----aprivileges could convert bis public trust
-tor of the IA.'il-le4s-also the-director pf -into-privategaimin such.fields.
his own-fina.ncial?investments.%. ?5,-- No,evidenceshows that Mr. Casey vi-
Mr.- Caseylmade'W-Itilliiii playing-the!`.--olated:anyilaw.E,Perhaps his investments
stock market last year. His financial-dis- are as -untainted as those of retired
-:closure-toiM-AaS releaSed the other day: ,. schoolmarmi4n- ?Kansas. The. issue ? is
It showg-'that lie:bought-and sold up to conflicting public-and private interests,
$7 million worth - of -stock 'in.at least 91 however, ,and :it ;must ,be addressed in
- companies over 26 days last;fall .while terms-beyond -narrow legal -technicali-
-.the marketioired:: - -ties. - ? - -
Lots-dffinVestors made birmoney dur- ? President' ?:Reagan, Vice, _,Prisident
ing the market's boom, of course: And Bush, and Treasury Secretary Regan all
Mr. Casey probably is a financial whiz established blind trusts upon taking of-
after a long career as a Wall Street insid- f ice. Those accounts administer the pri-
er. But now that he heads the-CIA, he's a vate finances of public men without
different kind of insider?'and' there's, their direct personal knowledge or in-
the rub. volvement. The -arrangement avoids
Mr. Casey's information sources now even an appearance of conflicting inter-
are, of course, .unmatched. Does he use ests. It is standard procedure for public
his access to classified intelligence from officials to establish such trusts in most
all over the world to give himself advan- - instances. Mr. Casey's predecessor fol-
tages in his investments? It is ,an -.lowed that procedure.
avoidable suspicion: _ ? Mr. Casey refused to do so. Yet, as
In .1981, for example Mr Casey un- ? head of the =CIA, the need for the credi-..
loaded more than -$600,000,,worth of oil bility that results from such amarrange-
stocks. Oil prices were dropping because ment is perhaps more compelling than
of the global oil glut.' Tiue, many inves- for any otherfigure in Government.
.. tors sold oil stocks for the same reasons. The Intelligence oversight committees
But no other investor had Mr. Casey's of Congress should scrutinize Mr. Ca-
access to CIA economic analyses of , sey's financial practices. Beyond that,
probable oil production and sales. Time; -however; the Reagan Administration
ly information is priceless should require Mr. Casey to establish a
During his 26 days of - white-hot blind trust. ?
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THE MIAMI HERALD
10 June 1983
. ?Ar'PEAR7D
rt.lr:nz
Editing by Enders
oleo. ,
as -last straw'
. , ?
By -ALFONSO CHARDY.. ,
Herald Washington Bureau '
WASHINGTON A few days before.being ousted
. as the State Department's senior, specialist on .Latin
America, Thomas Enders ordered a softening in the
tone of .a.zeport on. left-wing-insurgencies in.Central
? Ameri9?.according talrs.. military and intelligence
? sourctisa-e- . ? ..;:i-ear- ? _?? :
The 'original paperilbeToreft'swas .presented_to the
:press:49.4th -State Department Inodifications,-had- been
? ' prepacidaay the CentralIntelligence-AgencY.and the
.Pentagon.. _ ? - , a ? ?
?AlthoUgh the changeswere-noi.substaiitial and did
not Vrer-th e essential.trust of the17-Pagellocument,
? ? theyalideanger CIA DirectorWilliam Caseyand ,Penta-
gon officials who helped , prepare
the report.
The episode has been cited as
-the last straw" in Enders' abrupt
replacement May 27, the same day
that the report ? entitled "Back-
ground Paper: Central America" ?
was issued at a press briefing by
State and Defense Department offi-
cials.
Reporters who attended the ses-
sion sensed something was amiss
when Enders, who usually conduct- '
ed briefings related to Central
America. did not appear. Journalists
were told that a shift in schedules
had-prevented him from attending. ?
A few hours later. Secretary of
State .George Shultz ? traveling
with President Reagan aboard Air
Force One from Washington to the
Williamsburg economic summit ?
announced that Enders was being
replaced as assistant secretary of.
state for inter-American affairs. ?
The sources, familiar with the
original material drafted at CIA
headquarters In Langley, Va., and at
the Pentagon's defense intelligence
unit, say the changes ordered by
Enders resulted in the removal of
- the equivalent of at least three
pages in the report.
The sources said Enders also
had at least three sections in the
document dealing with Cuba, Nica-
ragua and Guatemala partially edit-
ed to reflect more neutral language.
A comparison of some of the
original material made available to
The Herald with that contained in
the public report hadieates only sub-
tle differences in the two docu-
ments.
In the Guatemala segment, for
example, the 'change involved two
lines and 10 words in _the opening
paragraph.
? The original document said:
"In Guatemala,- although there
.4was increased guerrilla activity in
the months preceding the elections,
this violence failed to disrupt the
national elections of March 7, 1982:
A widespread,- but unconfirmed,.
perception extensive electoral
. fraud_ by. the -government led to .aa
junior officer Copp on March 23,
1982." . ? -
'The final document, with the
change noted (italics added by The
Herald), read:
"In Guatemala, although there
was increased guerrilla activity in
the months preceding the elections,
this violence failed to disrupt the
national elections of March 7, 1982.
widespread, but unconfirmed,
perception of extensive electoral
fraud by the government together
: with pervasive and excessive gov-
ernment corruption and interna-
tional 'isolation led to a junior, offi-
cer coup on March 23, 1982." ?
The sources said the change was
designed to "placate" congressional
critics who believe that the human
rights situation in Guatemala is
grim. They said that in some in-
stances the word "terrorist" was
replaced with "guerrilla" or "insur-
gent." ?
Officially, the State Department
had no comment on the complaints,
? but a State Department source ac-
knowledged that changes were
? made. ?
This source, intimately familiar
? with how policy documents - are
drafteda-defended :Enders' -role -in-
the matter, saying changes were
-logical because the document was
going to -be issued jointly by the
State Department and Pentagon.
Therefore, the source said, the
State Department felt that its ideas
also should be reflected in the
paper, not only those of the Penta-
gon and the CIA.
The source also denied that the
changes were made to cast military
regimes in an unfavorable light or
to improve the image of the guerril-
las.
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CONE
.THE CHICAGO TRIBUNE
? 10 June 1983
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SAT
? ? ? and Congress' me
If -the Reagan administration's Central Amer
lean policy is poverty-ridden, it still is better
than the non-policies that come out of Con-
gress. One of the most burdensome legacies of
the ' Watergate era .has been the second-gues-
sing and grandstanding in foreign affairs
matters by congressional committees.
It' may be difficult to fault Congress for.
keeping a close watch on -an administratior
whose foreign policSrisaffected by such inexpe-
rienced and often ?wrong-headed officials as
CIA Direc' tor. William J. 'Casey and William
Clark, the adviser on national security affairs.
But many of the congressional watchers. are
even less experienced and more muddled than
the watchees.
The Houte and Senate intelligence corn- -
inittee,s are notorious for leaking sensitive se-
crets. The committees dealing with foreign
relations quibble over whether 55 advisers or
125 advisers is the right number for training El
Salvadoran soldiers, as if it makes a differ-
ence. Rather than offering rational and
forthright critiques of administration foreign
policy, the committees reduce appropriations
or stall or leak.
It was Congress that helped get us into the
Nicaragua mess in the first place by holding up
appropriations for aid that was badly needed
for the country to recover from its civil war.
While Congress dawdled, the Cubans and
Soviets delivered their strings-attached aid and
helped the more extreme elements of the San-
dinista coalition. to gain power. But now that
Marxists-are in--control in-Managua, Congress
is hemming arid hawing .over administration
attempts to oppose them.
, It seems that Congress can do nothing right
in foreign affairs. Maybe it should stop trying.
?
mg
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Approved For Release 2005/11/28 : CIA-RDP91-00901R00040
SAN DIEGO UNION (CA)
9 June 1983
t4155 )01?5,71-,CLA551FIED
REPORIDuTLIRE511? UKELy
!PACT OF MIDEAST TEN5ION5
ON IRE U.5.011.-INDU5TRY!
080001-8
STAT
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STAT
ART' 77 "77:7'-rD TH&E7SHINGTON PC ST
t..
nr.oP
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Capitol Punishment
Casey
Stocks
By Art Buchwald
It. has just been revealed that Wil-
liam J. Casey, the CIA director,
bought and sold millions of dollars
in stocks and other securities last
summer as the market took off.
' A lot of people might think there
is some conflict of interest in doing
this sort of thing when you're'head-
ing up one of the most sensitive or-
ganizations in the United States. But
I'm not one of them. Casey is still a
private citizen and can invest his
own money as he sees fit.
? -I admire anyone who can run a
superpower's intelligence agency and
also have time to keep his finger in
the stock market.
can just imagine how he did it.
' An aide comes in with a top secret
cable.
"Our man in Havana saYs that
Castro ' is shipping concrete to
Grenada to build an airfield."
"Let me see that. Do you know
what this means?"
"War?"
'Not yet. It means if Grenada
goes ahead with its airfield, we'll
boycott them, and there will be a ;
nutmeg shortage in the United
States."
"Do you want t6 sped - to the
president?"
I "No, Lwant to speak to my broker -
at E.F. Hutton. I have to iind out
what company bandies nutmeg in -
the U.S."
?"This is just in from TokyoThe.
Japanese are coming out with4bew.
micro computer chip which ecould
blow California's Silicon ValleT off
the face of the Earth." - -
"I' was afraid of this. If the Soviets
can "get their hands on Japanese hi-
tech, they can -go ahead with their.
SS64- missile and we'll have to de-
yelp a Pershing III." -
"What's the answer?"
"I'm going to get out of Hewlett
Packard and into Sony-American.
Tell our station chief. as soon as the
first microchip comes offthe line I
want to hear about it. We can't af-
ford to be caught napping. What else
have you got?"
"One of our undercover agents in
Libya says that Qaddafi is planning
to overthrow the royal family in
Saudi Arabia."
? "This could mean the end of the
oil glut:I better get back into Stan-
dard Oil of New Jersey right away."
"Should we do anything to pre-
vent the coup?"
"What do you suggest?"
"Get word to Qaddafi he's a-dead
man if he ever tries it." -
"Good idea. I'll hold off on Stan
darci Oil until we get his reply."
008/401 8
"By the way, the White" House
called and wants to know if we have
anything out of Israel concerning
their work with lasers. It could be a
big factor in our new `Star Wars'
strategy." ?
"They haven't come up with any-
thing yet. If they did I would have
bought United Laser, which is put-
ting up the money for the research.
Tell the White House if they see-
, some heavy trading in United Laser.
then the Israelis will have made a
breakthrough.". ?
"Our man in East Germany says
. his mole indicates the East Germans
have developed an infrared instant
camera which Moscow is going to -
issue to all KGB agents in the fall."
"It doesn't bother me. I've been
out of Polaroid since last summer.
, How are the Soviets doing with their
-gas line to West Europe?"
"They're on schedule."
. "I was afraid of that. -Thar means
the Baton Rouge Shipping Co. is
going to be stuck with 20 liquid gas
tankers the-West Germans ordered."
"I'm sorry about that, sir." -
"No one can call every stock right.
Did you find out the names of the
subcontractors on the MX missile
yet?" r ?
"The Air Force is being very cagey
about giving 'out any names."
"Oh .they are, are they? Get me
Cap Weinberger on the line right
away. How can I run a decent intel-
ligence operation if our own people
are going to keep secrets from me?"
1083. Los Angeles Times Syndicate '
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STAT
Approved For Release 20051inta3: CiArR,DP91-99901R000
E June 1983
400080001-8
STAT
Me incredible Mr. Casey
President Reagan, Vice President Bush,
Treasury Secretary Donald Regan and nearly
the other major figures in the administra-
tion put their financial holdings into blind
trusts upon tAking office, being well aware that
in public life the appearance of probity is every
bit as important as'probity itself..
The bitable -exception to this *az been.Ck._
Director William 3 Casey,--who has continue?
to play the stock and securities markets like a
gambler on II roll. -
According to his .financial fdisclosure
..sttement. the CIA director pitmged -$1.5 mil-
lion into-the markets between last Aug. .26 and
Sept. 20 alone, running that up to $2..2 nainion in
less than .a -month.
Mr. Casey sees nothing wrong in this noting
that be has assigned Deputy CIA Director John
McMahon and other staff to alert him the
moment his investments present a conflict of
interest.
Re decided on this arrangement only last
year, after a public scandal resulting from his
?sale of $600,000 in oil stocks in 1981, just in time
to avoid heavy losses from the developing
world oil glut. That Mr. McM.abon and his
associates have more important things to do
than keep track of Mr. Casey's portfolio may
seem a small point to some, but even if they
work at it, -24 hours a day, they are never going
"..
to be able to remove completely the appear-
ance of conflict.
There is more at stake here thwr embar-
rassment. The President is laboring mightily to
'persuade House and Senate oversight com-
mittees of the seriousness of-several threats to
the nation's -security. His success greatly de-
pends on congressional acceptance of adminis-
tration intelligence data. but during Mr.
Casey's tenure, the CIA's credibility on Capitol
Hai .:has declined "dangerously.
Al first, he seemed to be passing.on only that
intelligence which agreed with the then new
administration's ideological party line. Then he
infuriated congressmen and CIA careerists
alike by hPrning.sewing machine salesman and
Republican fund raiser Max Hugel as his head
spy. Oversight committee members who used
to hang on former Deputy CL4. Director Bobby
Ray Inman's every word would not now believe
Mr. Casey if he was reading the transcript of
one of Mr. Inman's presentations.
Many on the Hill are going . to view the
disclosure of Mr. Casev's stock profits as about
the last straw. If he values the iaation's.sectirity
and the success of his own policies as much as
he says he does. Mr. Reagan ought to view it
that way, too, and make Mr. Casey clean up his
act or get off the stage.
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kPEARE.D
DrPk.E7 ?
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Tin l':1.12s:1. i-17-7,..4.,:...r
E jUDE 2 9E:
lief Spook Is All T
By SAD' GR.ADY
1,:rarr.!-Ricoe, tvelespcprn wrar
A REPUBLICAN insider was.
Pi. asked coupie of years ago,
N.;thy Ronald Reagan 'chose
'bVilliam .1. Casey to be his chief
spook "at the ?Ci,Pttrai .Intelligence
Agency (CIA):
"Because:" said _the -Republican., ,
only -half-joking, '-thfit seenieti the
:Pei: place ron hide him:" . ?
At the time the jest Made -sense.'
Reagast .laweci :Casey something for
being -the- norninal manager of is
980r election victory. But -even :the
Reagan advisers didn't went Casey,
al; Ina:Tit:LI/ate public figure who
hat spent a career trading on Wall
Street. J.:5 a spotlighted Cabinet jot.
St .the seenie a sale niche.
The President's chief spook doesn't
ha VE IC, ra.E.4:E. speeches 07 answer
questions on Mee: the Press. When
he talks congressiona.1 commit-
tees. it is usually behind lacked
Open.. _
PUTTING Casey in charge of the
levers at the CIA's Langley, Va.,
headquarters seemed to be the per-
feet payoff . Casey, who had some
intelligence experience..coule -run the U.S.. spy empire
? with no public fanfare.
If they wantet to hide Casey, the
Reagan learn might have been be.
ter 'off putting him in c'nesge of
COnlinerCe 07 Agriculture 07 one of,
those other?bu.reaucratic mazes.
At the CIA., he's been as discreet.
?ty reclusive as a r.):-ring circus,
complete with clowns and jugglers.
Casey has repeatedly shown E
blazing ? gift for making the wrong
kind of headlines.
The Senate Intelligence Commit-
tee. especially Sen. harry Goldwa-
ter, doubted Casey's ability from
?the firs: because of his stumbling,
amateurish answers about the MA's
covert nians..
-Casey is the first ClA director
who doesn't need a telephone
scrz.:r.bier." one senator joked. a)-
to Casey's mumbling style of
speech.
BLTI.as.the President's No. 3 spy,
Casey showed a wonderful flair 107
slipping on banana peels.. He named
Max.Hugei, a political operator, ES E
top aide; Hugel had to quit because
of oki scandals. Then Babbay Inman,
the most respected spook .= Wash-
ington':ouit the .CLA-- And Casey's
own sharp finaricial.clealings nearly
cost_laiat his job.
? - Thermenators !gave 'him a grudg-
ing OK 'with the ball-hearted line,
**J30t unfit to serve.'
Now Casey is again 6=ms:rat-
ing his talent for creating the kind
-of hews the Reagan ..iieihainiS=atiOr
doesn't need.
Casey's financial-disclosure 107=
shows he bought ant sold as much
as 57 million worth of stool: it a
26-day splurge when the STOCk
mar-
ket was zooming in the late sum-
mer of 19E2.
Sc' far nobociy knows whether
C.asey,a 7&-year-old millionaire.
broke Erly laws on his stoCk-mazket
spree. Unlike many.other-top Rea-
gan officials, G,:a.sr-iirat earlier re-
fused to put his holdings in a blind
uc
"SM:Cie Of US are jeer" of the way
Casey operates," said a Senate In-
telligence aide; -but be's tree to buy
. and sell or his own."
But there's at least a chance that
_ .
Casey -could have used his CD: in-
side knowledge to make a fev,,
bucks on the market.
Several of the drug companies
in which Casey invested heavily
have subsidiaries in Cen=a1 Ameri-
can hountries where the CIA flour-
ishes.. Casey also bought chunk.s of
smock in electronic firms that could
have Government conn-acts. -
-We'll review ft for conflicts of
interest," said Bob Flynn, a spokes-
man for the Office of Government
-We'll see If be (Casey) had
advance information about situa-
tions conducive to the stock market
advancing."
.Bv.en if . C.asey's market shenani-
gans are pure, though, there is
'something unsettling about a CIA
director frantically juggling stocks
STAT
Visible
at the same time 'ne's pait to run
the country's spy machinery.
Casey's behind-the-scenes clout is
immense. he's the operator of the
agency's biggest covert opera-
tion it years. the CIA's secret war
against the Sandinista government:
Nicaragua.
Because of a Reagan executive
artier signed in 1961, Casey is the
first CIA ..director who has the
power to spy inside the United
States.
Casey is ,also running 'a number
-of 6ml-end-Unger capers around
the world, .inciuding opm-ations. in
'-'i-londu.ras and El Salvador. getting
E:777..S to Afghan rebels. and clandes-
tine activity in the Middle. Lan.
EVEN Washington critics
that so far Casey's CIA has not been
snake: by major leaks or intelli-
gence flops. But it's still early.
-You never know LOOM a CIA
Disaster until Atte7 it's blown up in
VOIZ7 face." t a a man with the
your
Intelligence panel. "Casey
Doesn't even give the senators mud)
of a handle on what he's doing."
One thing Casey is obviousiv
Doing is feverishly playing the stock
market. His other knack is for
ciothig public pratfalls ? he's the
Spy Who Keeps Coming in Frorn
.the Co).
If his string of blunders con-
tinues, Casey could raatc.it Jiro Watt
as the Cabinet member most likely
to be fired before the 1954 election.
What Casey depends upon, of
?course, is his trientiShip with Rea-
gan.
"1 sl) call him Ronnie," Casey
'bas said smugly.
The Waite House probably has its
own name for Bill Casey, their
spook who can't ray invisible.
Bad News .Casey.
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STA
. THE MIAMI HERALD
"Ti LE kPPEARFAIpproved For Release 2005/11/XigINIWP91-00901R009
ON PAGE
?
400080001-8
Chief Spook Is All Too '(-`61.ale
' By SANDY GRADY
Knight-Ridder Newspapers Writer
AREPUBLICAN insider was;
asked a couple of years ago.
why Ronald Reagan chose
William .J. Casey to be his chief
spook at the Central Intelligence
Agency (CIA).
"Because,"; said the Republican,
only half-joking, "that seemed the
best place to hide him."
At the time the jest Made sense.
Reagan 'owed 'Casey something for
?
being the nominal manager of his
? 1980 election victory. But even the
Reagan advisers didn't want Casey,
an inarticulate public figure who
had spent a career trading on Wall
Street, in a spotlighted Cabinet job.
So the CIA seemed a safe niche.
The President's chief spook doesn't
have to make speeches or answer
questions on Meet the Press. When
he talks to congressional commit-
tees. it is usually behind locked
doors.
PUTTING Casey in charge of the
le verS at the CIA's Langley, Va.,
headquarters seemed to be the per-
fect payoff. Casey, who had some
World War II intelligence experi-
ence, could run the U.S. spy empire
with no public fanfare.
If they wanted to hide Casey, the
Reagan team might have been bet-
ter off putting him in charge of
Commerce or Agriculture or one of
those other bureaucratic mazes.
At the CIA, he's been as discreet-
ly reclusive as a six-ring circus,
complete with clowns and jugglers.
Casey has repeatedly shown a
blazing gift for making the wrong
kind of headlines.
The Senate Intelligence Commit-
tee, especially Sen. Barry Goldwa-
ter, doubted Casey's ability from
the first because of his stumbling,
amateurish answers about the CIA's
covert plans.
"Casey is the first CIA director
who doesn't need a telephone
scrambler." one senator joked, al-
luding to Casey's mumbling style of
speech.
? BUT as the President's No. I spy,
Casey showed a wonderful flair for
slipping on banana peels. He named
Max Hugel, a political operator, as a
top aide; Hugel had to quit because
of old scandals. Then Bobby Inman,
the most respected spook in Wash-
ington; quit the CIA. And Casey's
own sharp financial-dealings nearly --
cost him his job.
- - The-senators gave him a grudg-
ing OK with the half-hearted line,
"not unfit to serve."
?
-
Now Casey is again demonstrat-
ing his talent for creating the kind -
of news the Reagan Administration
doesn't need.
Casey's financial-disclosure form
shows he bought and sold as much
as $7 million worth of stock in a
26-day splurge when the stock mar-
ket was zooming in the late sum-
mer of 1982.
So far nobody knows whether
Casey, a 70-year-old millionaire,
? broke any laws on his stock-market
spree. Unlike many- other. top Rea-
gan officials, Caserhad earlier re-
fused to put his holdings in a blind
trust.
"Some of us are leery of the way
Casey operates," said a Senate In-
telligence aide, "but he's free to buy
and sell on his own."
But there's at least a chance that
Casey could have used his CIA in-
side knowledge to make a few
bucks on the market.
Several of the drug companies
in which Casey invested heavily
have subsidiaries in Central Ameri-
can countries where the CIA flour-
ishes. Casey also bought chunks of
stock in electronic firms that could
have Government contracts.
"We'll review it for conflicts of
interest," said Bob Flynn, a spokes-
man for the Office of Government
Ethics. "We'll see if he (Casey) had
advance information about situa-
tions conducive to the stock market
advancing."
Even if. Casey's market shenani-
gans are pure, though, there is
' something unsettling about a CIA
director frantically juggling stocks
at the same time he's paid to run
the country's spy machinery.
Casey's behind-the-scenes clout is
immense. He's the operator of the
U.S. agency's biggest covert opera-
tion in years, the CIA's secret war
against the Sandinista government
in Nicaragua.
Because of a Reagan executive
order signed in 1981, Casey is the
first CIA director who has the
power to spy inside the United
States.
Casey is also running a number
of cloak-and-dagger capers around
the world, .including operations in
-Honduras and El Salvador, getting
arms to Afghan rebels, and clandes-
tine activity in the Middle East.
EVEN Washington critics admit
that so far Casey's CIA has not been
shaken by major leaks or intelli-
gence flops. But it's still early.
"You never know about a CIA
disaster until after it's blown up in
your face," said a a man with the
Senate Intelligence panel. "Casey
doesn't even give the senators much
of a handle on what he's doing."
One thing Casey is obviously
doing is feverishly playing the stock
market. His other knack is for
doing public pratfalls ? he's the
Spy Who Keeps Coming in From
the Cold.
If his string of blunders con-
tinues, Casey could match Jim Watt
as the Cabinet member most likely
to be fired before the 1984 election.
What Casey depends upon, of
course, is his friendship with Rea-
gan.
"I still call him Ronnie," Casey
has said smugly.
The White House probably has its
own name for Bill Casey, their
spook who can't stay invisible.
Bad News Casey.
.4
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? REUTERS ?
Approved For Release 2005/11/2E?:i317WRW931-00901R000
WASHINGTON
BY JAMES VICINI
STAT
400080001-8
Ivory Coast President Felix Houphouet-Boigny met with Agriculture Secretary
John Block and members of Congress today to discuss agricultural trade and the
political situation in Africa.
Houphouet-Boigny, on his third official visit to the United States, saw
President Reagan yesterday and will conclude his trip to Washington tomorrow by
conferring with Treasury Secretary Donald Regan and World Bank President Tom
Clausen.
* * * *?* ..*
The Ivory Coast leader..also discussed the political situation in Africa with
-,senior members of Congress at a House Foreign Affairs Committee luncheon.
Houphouet-Boigny, during his White House meetings, has called for faster
progress on Namibian independence from South Africa and expressed concern about
Libyan activities in Africa.
William Casey, director of the Central Intelligence Agency ( CIA) y
also met with the veteran Ivory Coast leader. Both sides declined to say what
topics were discussed.
:EXCERPTED
?
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Approved For Release 2005/11/28 : CIA-RDP91-00901R00040 080001-8
vvrLE kPPEAKta, 4-
C111 PAGE_g----44'
ATLANTA CONSTITUTION
7 June 1983
Have we got a coup for you...
? Did CIA Director William Casey ever have
a proposition for Congress' intelligence com-
Mittees!
Here was this small, Georgia-sized South
American country called Surinam (formerly
Dutch Guiana), which fronts on the Caribbean. ?
- Independent from the Netherlands since
1975, Surinam's legally elected government
Was ousted three years ago by a sergeants'
coup, which has ruled harshly ever since, forc-
ing 16,000 of Surinam's 400,000 citizens to
flee, many to Holland and the United States..
* Worse still, the local tyrant, Desi
Ron-
terse, had been throwing in with bad company
? Cuba, Grenada, Nicaragua and Libya, coun-
tries of that ilk_ ?
For a small [LS. expenditure, Casey told
members of the committees last December,
the CIA could recruit and equip Surinam
exiles to stage a countercoup ? and install a
Western-leaning bastion of democracy. The
master plan was all set, Casey averred., and
had President Reagan's approvaL No sweat.
By a stroke of good luck, Casey was in-
forming House and Senate intelligence panels
in advance of the Surinam rniccion. Rules gov-
erning congressional oversight of covert
operations require only that the panels' mem-
bers must be apprised of ongoing secret ac-
tions, not necessarily before the fact.
The reaction of those House and Senate
members let in on the scheme was near-unani-
mous: Shocked opposition.. 'Casey's so-called
evidence of Cuban penetration was ?frirrycy and
-unconvincing, congressional sources told ABC
News 'Nightline" last weeL-
--Although the Demoantic-citiminated House
panel had rejected the plan, Casey was pre-
pared to-follow through with it. But-then the
Senate committee, chaired by GOP Sen. Barr,
Goldwater, voiced its :own; thunderous .distp-'
provaL
At that point, the project was- scrapped,
and congressional sources report they are
. reasonably confident that Case-bas -kept his
word about that
What lessons are to be drawn from the
near-fiasco in Surinam?
For one, that the despite the taattifest
dirAfters for .U.S. interests which resulted
from such quixotic CIA ventures in the past.,
Reagan and Casey are disturbingly keen to
play with the. dirty-tricks toy.
The United States has absolutely no busi-
ness authorizing the forcible removal-of sover-
eign governments, no -matter how despotic or
disagreeable, unless as a means of last resort
against a direct and verifiable threat to our
national security. The present administration's
Castrophobia notwithstanding, Surinam clearly
does not meet that test.
? For. another; the Surinam case points up
the wisdom underlying Atlanta Rep. Wyche
Fowier's legislative proposal recut:ring ad-
Vance notice of all covert operations and giv-
ing the intelligence panels the jointly shared
power to scrub them if they seem unwise. We
can't always count on mere congressional
disapproval sidetracking Reagan's or any fu-
ture administration from pursuing a hare-
brained rniQcian improbable.
t4
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STAT
Approved For Release 2005/11/2i-i--g1X--FiltiP?coati4k600.43450E0001-8
7 June 1963
Durwood McAlister
Congress should investigate Casey
tic ,commercial operatioris and intrude into the
: .lives of private citizens.
. stock- _ Writing specifically -about the .superseret
National .Security Agency, but describing .1 a
capabilitysharedby the CIA, be said:
il-iket.theat cornered athin 4-finteciStates;rzhe
..ccogress mirding g.,:jp-arictbrivral.:.:1"-ir_ee.'to pull into its -massive ,vacuum -cleaner!
-rjla3IL. Casey,. xrxting:;tto`--Bo telephone iand-image.-.entering!
ranext:gtiamowsiktaimsaptincL, Zesivingtortra.nsitingithe4country,sislong-asatis_
taisomethinganteres,ting2iiiiiiii_ -2k - 44- .1kaDne.73LierDWaY.:41n. terPePOonlf...dtra.:'=the,
. -not sure what.to.oesvith':ic stgency =an ,progran;zits -ligh-speed -Computers
..,revelation..-Ahat,..the 7,;and 22,000-linerper-minute printers to ?kick:out
:Ztntral ;intelligence Agency
. "-telegram -or telex containing the-word
boss iought.a.nci,sOldrsome-
- toe.-Nword ?Democrat, wXIije woice?ianal!tsts,
- million worth. of ...stoCksan . ?fscan-guides in hand, listen attentively to eCie,ry
hectic 6-da period last year
phone call between Washington .and London,
2y '.:??
-
when the market was rising recording for later dissemination those contain-
is not ?the ?sort of thing that ing the targeted subjects."
n be ignored. William Casey may not have used ...the
ca
But it the -potential scan-
information gleaned by such awesome eaves.-
dal is IC* big to he swept ,under .the _rug --and dropping tnetriods to makea killing in the mar-
forgotten, it is too well hidden to be dug out ket.
without considerable pain. But the possibility that he did would seem-
There is no -question that Casey's position- to softer ustification enough for Congress to
. gives hum-access to a remarkable -amount of in-L. tackle the porcupine and try to get some -n
-gide' knowledge on-the-firms -in swinich'iie swers-
vested. But, in order to show that he :used that ? ? _ ?
-knowledge to feather his own nest, .z'tns -neces-
sary to penetrate -the-shield of secrecy which
surrounds the nation's intelligence agencies. '
- }my...attempt :to -do -that is sure 'to bring
cries :from the Reagan -aciministratiim- that the
. -nation's securityAs heing -put at4-isk.
--B615.7.1yzin, ,/ spokesman for tbe.4Off ice of
Government Ethics, his.rsaid his aoffice rj
examine...the case; but that is not ike1yt.toay
to
? the questionto rest-
. investigation-lyy,a vongrw-
siorai-OVersight committee rnight"..beble'ioget
?at-tliepUth. There have been no;indications so
_fai,..boWever, that such lurinvestigation.isbeing
, ,consiclerea_:
-.A -fietsist- ent Selia-.Abzug;wsichlirnmaxixi a
liouse subcommittee on Government anforma-
?;6on .71:Tied 42 ?nirrii1-17
probe Of .the intelligence...agencina9.75..She
ran into a government stone wall:and,,eventu-
ally. the draft report prepared by her staff was
uietly -buried. ? ? .
-Enough is known now,, however, about
intelligence agency operations to suggest that a
full-scale -investigation by Congress may be
timely and necessary. - .
In his book, The Puzzle Palace," investi.
gative reporter James Fiamford has recently
documented the extent to which the intelli-
gence agenciApitirosit:41..Ftbitelleittits02G13514V28 : CIA-RDP91-00901R000400080001-8
STAT
Approved For Release 200fit11g?iA-BppEvrep9p1g900 00080001-8
7 June 1983
HE REGISTER'S EDITORIALS
The shameless investor
When William Casey sold
$600,000 worth of oil stocks last
year just before oil prices took a
plunge, eyebrows were raised.
Casey, as director of the, Central',
is2z.....4=s in a
unique .position to taste advantage
of the -vast storehouse .of interna-
tional economic information..
-7 Not :that -Casey .is an to
'worry about appearances, as his
long and tangled list...of:question-
able .business practices -attests.
.But ...the .S.enate :Intelligence
Committee, for one, was embar-
rassed ? and with good reason,
for it had never bothered to look
into the substantial stock
holdings of the man it confirmed
in one of the nation's most
sensitive positions. And Casey
had blithely refused to put the
holdings into a blind trust, as his
two predecessors and other
wealthy figures in this adminis-
tration had done.
Pressed to deal with the
situation, the CIA came up a year
ago with a bizarre solution:
Casey would be required to notify
two of his CIA underlings about
stock transactions; in -turn, they
would tell him whether be should
be excluded from making partic-
ular decisions.
So how has this solution
worked? On the one hand, it is
hard to say. The CIA declines to
comment .on whether Casey has
disqualified himself from any
decisions because of it. On .the
other land, it seems to be
working wery weDor Casey::Be
bought between 41.9 million and
$4.6 million of stock in -$1
companies last year, doubling the
number :of transactions he was
involved in the year before.
It is impossible, in this veiled
operation, to know precisely how
? or if ? Casey benefited from
his unique situation. But there is
no -.question about his having
broken the government prohibi-
tion of any action "which might
result in or create the opportuni-
ty of using public office for
private gain."
The CIA, operating ix secret, is
not accountable to the public or
Congress in any way except
through the oversight function of
the .Senate Intelligence
Committee. The public is still
paying the price for that commit-
tee's inexcusably poor job of it.
And Casey ? by all apnearances
? is still reaping the benefits. _
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A!..-?er
FAT
Approved For Release 208g1G192-8,Tk1PERUIS9
7 June 1983
WASHINGTON
CONGRESSMAN PROPOSES BLIND TRUST FOR CASEY
1-00901R000400080001-8
s'
The chairman of a House panel proposed Tuesday that blind trusts be required
for CIA director William J. Casey or the head of any major U.S. intelligence
agency who has more than $100,000 worth .of -stocks or other securities.
In a letter to the Office of Government Ethics, Rep. Donald Albosta, D-Mich.
asked for comment on the proposal, which Albosta said he might offer as an
amendment to the 1978 Ethics in Government Act.
Last week, Casey, who has nearly unparalleled access to secret government
economic data, reported that he sold several million-dollars worth of stocks and
other securities in 1982. Casey, unlike his two predecessors at the CIA, chose
not to put his holdings in a blind trust, which prevents an official from
knowing which of his stocks have been bought or sold.
Albosta, chairman of the House Post Office and Civil Service Human Services
subcommittee, said his proposal "would require the director of each of the four
major intelligence agencies _ the CIA, the FBI, the Defense Intelligence
Agency and the National Security Agency _ to establish a blind trust if they
hold securities worth more than $100,000.
"This amendment would prevent the peculiar advantages of their positions,
such as access to inside information, from affording them the opportunity to use
their government positions for personal gain. ... This approach would recognize
the ironic truth that these agencies have the greatest access to sensitive
information and are subject to the least oversight by the public, the press and
the Congress of any agencies in the government."
Last week, Casey's investment adviser, Richard R. Cheswick, said he makes the
day-to-day decisions on buying and selling stock for Casey and denied that the
CIA director ever gave him information that helped in making those decisions.
Cheswick, however, did not say that Casey never ordered him to buy or sell
certain stocks.
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Approved For Release 2005/11/28 : CIA-RDP91-00901R000
"TV REPORTS, IN
4701 WILLARD AVENUE, CHEW CHASE, MARYLAND 20815 656-4068
FOR
'PUBLIC AFFAIRS STAFF
PROGRAM Crossfire
DATE
SUBJECT
June 7, 1983
..4111
I
' ? 1
400080001-8
STATION LANIv Iv
730 P.M. cIIY Atlanta, Ca.
Covert Action in Central America
ANNOUNCER: From Washington, Crossfire. Tonight, covert
action in Central America. The hosts for Crossfire, on the left,
Tom Braden; on the right, Pat Buchanan. In the crossfire,
Stansfield Turner, former Director of the CIA.
PAT BUCHANAN: Yesterday Nicaragua, the government of
Nicaragua expelled three Americans, accusing them of being CIA
agents who attempted to murder the Foreign Minister of Nicaragua
by planting a poisoned bottle of brandy in his cabinet. Today
the United States called that a cock-and-bull story, retaliated
by expelling 21 Nicaraguan diplomats and closing down all six
consulates in the United States.
To talk about that with us tonight, Admiral Stansfield
Turner, former Director of the Central Intelligence Agency under
President Carter.
TOM BRADEN: Admiral Turner, in the light of the
poisoned cigars of the past, the dirty tricks that were perpe-
trated during the time before you took over the agency, is it
conceivable, conceivable, that the poisoned-brandy story is true
and that some of the people have reverted -- some of the people
up there in Langley have reverted to their old habits?
ADMIRAL STANSFIELD TURNER: I don't think it's at all
conceivable, Tom, because President Ford, witp George Bush as his
CIA Director, issues a direct presidential order in February of
1976 prohibiting anyone in the CIA from even planning assas-
sination, let alone carrying one out. President Carter reaffirm-
ed that order. President Reagan has reaffirmed that order. It's
just against our rules.
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OFFICES IN: WASHINGTON D.C. ? NEW YORK- ? LOS ANGELES ? CHICAGO ? DETROIT ? AND OTHER PRINCiE,Ai CITIES
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AF,TioT
os -
WA FHIN G TON TIMES
June 1q83
Casey's choice
If his 192 financial disclosure statement
means anything, Bill Casey, a.k.a. the boss
of America's prime foreign economic and
political intelligence-gathering agency. the
CIA, is one of this country's most successful
money managers. Successful enough to
raise eyebrows among enemies of the
administration if not elsewhere.
is there anything moreatissue here. than
.azhance for people who tlontlike the CIA
to o arbEee the agency hy -raising questions
-about the .integriry of ...the man at the top?'
We're afraid so. ? -
?
Some of...the personal investments that .
-have earned .Casey so many hundreds of
. thousands .of :dollars have gone TO compan-
ies -with subsidiaries in Latin America. a
part of the world where the CIA is under-
standably active these days. Companies
affected by world events also figure in the
Casey portfolio?afterall. what stock listed
on the New York Stock Exchange isn't
affected by world events?
It could be that Casey is able to keep these
two parts of his life strictly separate. Maybe
he doesn't take advantage of his inside
information when he makes an investment.
Maybe he's not swayed by .the possibility of
financial gain when CIA. policy decisions
come Up. But it doesn't require malice to
find the situation a bit unseemly
It's the more unseemly in the light of
Casey's .answer to the appearance of con-
flict of interest. When the CIA director was
riticized for his.profitable sale of ?600,000
worth of ? oil- stocks as the first signs of a
world oil glut appeared, he set. up a
screening committee to tell him when be
shouldn't participate in CIA ..decisions
because his investments might be affected.
in .other words, the director of the Central
Intelligence Agency :arranges to bow out of
a large part of the job Ronald Reagan hired
him to do because it might complicate -his
personal financial dealings.
There was.an alternative, of course ? he
could have put his investments in a blind
trust for someone else to manage. But Casey
refused to do that.
Much has been made of th.e sacrifices
_demanded of people in the public service
and of the way conflict-of-interest rules
keep talent out of government. There are,
indeed, requirements that amount to no
more than harassment. But recourse to a
blind trust isn't exactly the same as taking
a vow of poverty. It doesn't seem too much
to ask of -a man in a position as
extraordinarily sensitive as Casey's.
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..KASP,VILLI: TUNES .S.E1.2,: (-27)()
6 June 2983
SLI
t-;
op-ri
4.igeone or IiaJ.
I Intel-
..zseyticiarbe. as President Eisenhower
was fond 1:11 Sayitg, "'clean -as atound!s
too.'; but :they to-tend saise Some
. 000:
80001-8
for Mr. Casey
And, certain .officials now review his
stock transactions for possible conflict
*f interest. That came about after Mr.
Casey sold3600,000 insollstocks in 1981
-- perhaps-coincidentally-just as the oil
' ? --glut developed in the -woad-market But
- ? ? ..saL islhe
.According t&txs ftnncaI ktisclosure .director, and another is its
Stategeent, obouglit4ind asokltmitriral tzunsel---!
er . I
* -
V.
tet
vor-
liet.,Ansobaganajorastrvancemsi -fficialstiave placed financial noldingsln
theclayfperiod,26.10-sept,a :blind _Artist, including President
20,1drittasey:boughtzfran:1;13:inillion-eagannd :Vice president Bush. Why
Inizoorethart T2:2?Trill1ioirAn.i.tocks :and .r.Casey chose nottoisn't-clear:
otherse=ritieslrarticularly_in?electron-
ics and drug companies.
? .? ?
'Since financial disclosure statements
arelairly.broad as to detail, it is virtual-
ly impossible to -gauge the_profit or loss
of Mr. Casey's extensive transactions.
- ? ?-?,,
- Still, there the 'fact that .1Vir:4Case,y
beads-the CIA and that agency :is pre-
'slimed ? to now practically everythiag
bout- the -most secret .,_economic, data,
;riot only _in --theA3S.:Arintaeisewhere:5t,is
Pretty
good,-so it issaid, -in lorecasling
econoraic=ancl other trends. So the sztic--,
tionmaturally -aris,wriether Mr."Casey
is able-to-use -insider" :information to
gxidels investments, -or -whether ,:lae..
just has :remarkably. goodanvestrfient
_
-counsel V
'
:Sea. Carl :Levin, D-Niich., a senior
Democrat on a Senate subcommittee
with jurisdiction over 'government eth-
ics, has urged President Reagan to re-
quire Mr. Casey to set .up a blind trust
"It seems clear -that the repeated stock
transactions by -Mr. Casey while be re-
ceives ?information on an on-going basis
4ms. director of -the CIA ?creates the ap-
pearance of using.public -office for pri-
vate gain.," wrote Senator.Levin in -a Jet-'
ter to Mr. Rearnn,21--T-,r-esideritild
Mr. .Casey decline, the -senator said he
Ziatroduce,legislation to force him
islioped the:senator doesn't have to
-;-go tharfar. Surely Mr. Casey is awarre
that avoiding even the appearance of
conflicrf :interest -iiirriportant enough
for lairnztowoluntarily .choose to put -his
Iinancial7dealings ma blind trust.
- _ -
Day-to-clay managementr;of bis port-
hanctsmlaprivate-adviser. -
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ARTTLE APPEARED. -)
O PYIE -26
NE WS WEEK
6 June 1983
Reagan's Hidden Agenda
The U.S. strategy is to split Nicaragua's leadership.
By JOHN WALCOTT, Chief Diplomatic Correspondent
What future does the Reagan Pchrink-
tration have in mind for Nicaragua?
Despite all the rhetoric about merely trying
to harass the Sandinigtas or halt the flow of
arms through Nicaragua to rebels in El
Salvador, the unstated but obvious goal of
U.S. coven aid to the contras is a change in
Managua. As departing Assistant Secretary
of State Thomas Enders has said for a long
time. U.S. officials want to "get rid" of the
Sandinistas.
?Senior L.T.S. officials concede that even
with offensives under way on both
northern and southern fronts in
Nicaragua, the contras are unlike-
ly to defeat the far superior Sandi-
nista Army on the battlefield and
march into the capital. Instead,
what American policymakers are
? hoping for is some combination of
the following: ?
? Mass desertions from the Nica-
raguan Army to theaontras, espe.
cially on Eden Pastora's southern
front. How much fantasy tinges
this scenario ramains to be seen.
Contra leaders. like Alfonso Ro-
belo and other officials from Pas-
tora's Democratic Revolutionary
Alliance (ARDE) have told U.S.
officials that only Commander
Zero, with his mystique, can in-
spire such defections. His force al-
ready includes a number of former
saraiinista soldiers and pilots.
? Mass disgruntlement with the
Managua regime in the country-
side. Sanelinista economic poli-
citc?especially food rationing?are un-
popular, and the junta's ill-mannered
treatment of the pope during his recant visit
provoked anger among die deeply religious
peasants.
a Continued support for the contras from
Honduras and, at least tacitly, from Costa
Rica and Panama as well. '
a Rifts among the Sandinistas under pres-
sure of contra attacks in the n orth and south.
The last element is the crucial one.. 7o
sonic American diplomats and intelligence
officials, the history of the shrinking direc-
torate suggests the Sandinistas are low on
solidarity. U.S. officials apply a sliding scale
to the Sandinistas. The hardest cases?
those whom the samiaictrati on thinks abso-
lutely have to go?include Tomas Borge,
Daniel Ortega, Enrique Ruiz and Bayard?
Arca. Minister of Agriculture Jaime Whee-
lock and perhaps Defense Minister Hum.
bet-to Ortega and Foreign Minister Miguel
D'Escoto are thought to be salvageable.
What the administration is really after,
then, is a combination of external and inter-
nal pressures which will set off another
earthquake in Managua. toppling the hard-
line leftists and clearing the way for a
coalition government that would include
members of the present regime, some pri-
vate-sector types and contra leaders. That
vision is shared to some extent by ARDE,
some Pastora aides claim, but it is unclear
whether the Nicaraguan Democratic Force
(FDN) in the north has the same goals.
Some U.S. officials fear that the FDN's goal
is another blood bath, followed by a right-
wing revival, perhaps even involving Anas-
tasio Somoza's son. FDN leaders, of course,
deny any such impure thoughts.
STAT
000400080001-8
Caaanattle= What are the acids that any of
, this will come to pass? There were disputed
reports last week that CIA chief William
Casey saw success by the end of the year.
That seemed unlikely. U.S. officials have
been heartened by the contras' support in
the countryside and by its early military
credibility. But they note that so far the
Sandinistas have-mainly thrown the ragtag
Sandinista militia, not main-force Army
units, Again gt the insurgents (in part because
the Saniiinistas hope local casualties ? will
spur opposition to the contras). They also
say that additional Soviet or Cuban aid,
especially helicopters, could change the
odds drastically. "Frankly, we've been sur-
prised at bow well the insurgents seem robe
doing," says one U.S. officiaL "But
nobody with any brains would bet
any money on them right now."
The American strategy, itself,
has had one serious defect. Instead
of fracturing the Sandinistas, out-
side pressure, especially from for-
mer supporters of the Somoza dic-
tatorship, is likely to inspire
Nicaragua's leftist rulers to set
aside their differences. If the Unit-
ed 'States increases aid to the con-
tras, Nicaragua's "freedom fight-
ers" will also look more like
American puppets, both to other
moderate Latin American gov-
ernments and to ordinary Nicara-
guans. It will be difficult for the
insurgents to find the wherewithal
to take on the Nicaraguan Army
and still keep their image as the
spearhead of a popular insurrec-
tion against Sandinismo. 'That
particular Catch-22 could hobble
the counterrevolution long before
it brings anybody down. '
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Approved For Release 205111128 : C
6 Jime 1983
UP & DOWN --
WALL STREET
By ALAN ABELSON ?
How naive can you get? We always thought
those initials stood for Central Intelligence
Agency. But now we know. better. They really stand
for Casey Investing Again. Thanks to the compulsory
disclosure of our leading civil servants' finances, we
can report that Mr. Casey, -director of the CIA, in
other words, the nation's Supersleuth, loves to trade
stocks and bonds. What's more, he's very good at it.
His timing particularly is great. Last August, for?
-example,- he was among_Alfe first _toliear the mighty
roar of the bull, and they didn't-have to ring the bell
-more than once. From -August:2.0 through the end of
:that memorable, fantastic month, he made no fewer
than 16 buys, in the process -pouring something be-
tween S410.000 and over $1 million into the market..
Moreover, be also snatched up three-quarters of a _
million bucks worth of Treasurrbills. So much for the-
sneerers and scoffers who objected to Mr._ Casey's
appointment on the grounds be lacked commitment.
He'd have made an even greater commitment if he
hadn't run out of dimes calling his broker. .
What's more, Mr. Casey grabbed the bull by the
horns and rode its wonderful charge all the way up,
continuing to buy vigorously right-through December.
In that critical stretch from late August to late Septem-
ber. he put something in the range of S1.5 million and
5.2.2 million into the market. That's the kind of fellow
we want running the spy store:, nerves of steel, no
shivering and shaking, no tremulous trembling before
the threat of nuclear war or a .100-point correction_
. We've not a scintilla of doubt that the small-
minded souls in Washington, those cocktail-party
cynics, who are always selling America Short. will carp
that Mr. Casey can't tend his portfolio with such
diligence and still discharge his obligations as head
of the CIA. Well, we just wish they'd stop squawking
long enough to think it through.
To begin with, in his job, Mr. Casey is, of course,
intimately involved with the country's security; so
? why shouldn't he be intimately involved with the
country's securities? And, too, his trading activity
IA-RDP91-00901R000400080001-8
STAT
reflects 4 blUe ci MT. Lasey tnat the general pdblic,
rarely glimpses. To the overwhelming majority of the '
citizens of this -great nation, he's a tough-minded,
hard-nosed, strong-armed, two-fisted., iron-stomached,
sure-footed man. But there's a touchingly sentimental
strain in Mr. Casey as well. Remember, he was for-
merly head of the SEC, and he still has warm feelings
for-the many friends- on Wail. Street he made while in
that post. Every chance he gets, accordingly, he tries to
throw a little business their way. And, in turn, he's a
beloved figure on the Street, where he's affectionately
known as Churner Casey.
All told, Washington Editor Tom Donlan reckons,
Casevkiid 136. separate transaciions last year in securi-
ties. As you might.expeet_foranyone_connected with a
spook agency, he's -very much interested in -technol-
ogy. Hence his -purchases of , MCI _(the CIA in the
normal c.ourse?Taf business does a lot of phone tapping,
so it's natural that he'd be attracted to that feisty outfit
that's giving AT&T a run for its money). No surprise,
either, what with the world going to pot, a global
guinshoe like _Mr. Casey would have a weakness for
drugs, ..and his portfolio was chock full of- Abbotts,
Meisks .and Bristol-Myerses. Nor was he put off by
the Tylenol scare?he -knew
from secret reports that the epi-
sode wasn't, as widely rumored,
part of an international conspir-
acy, so he bought Johnson &
Johnson.- - _ .
CIA people, of course, are
always sending out messages to
the far corners of the earth from
little radio transmitters tucked
away in the fillings in their
teeth, so Mr. Casey's apprecia-
tion for communications is also
no mystery, and, 'we're pleased
to report, he made a very pretty
penny in Capital Cities. And, of
course, motels -and motor inns,
every addict of spy stories
knows, are favorite drops for
secret weather forecasts for
Newark, Miami and other ex...
otic places. Which explains why
Mr. Casey picked up some
shares of La Quinta Motor Inns
and good old Marriott. Com-
puters are big these days in the
Company, for simulating wars
in Central America and
playing chess while -waiting for
crises to erupt (there are slow
stretches at the CIA; sometimes
you can go for days without a
crisis erupting,- and,.. then,
wouldn't you know!, you get
three-four at a time). Hence his
.holdings of Digital Equipment.
Mr. Casey also was a buyer
of Paradyne, a company that's
subsequently come under some-
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2x4..
hRTIcLE EARTIB3roved For Releawler20,05/11 1 fala OAADE9/1.0 0 901 RO 0 NIA)
ON pE3 6 June ?1983
Asides
The Acid Test
Sen. Levin of Michigan has written
President Reagan urging that CIA Di-
rector William 3. Casey. be required
to put his securities holdings in a
blind trust to avoid any appearance of
impropriety in his stock-.dealings. Mr.
Cakey's latest financial disclosure
form had revealed that his account,
actually handled by a financial ad--
viser, saw a lot of .action last year.
critics werett..placated much by
a -.statement from the adviser, re-
leased through the CIA, that?said Mr.
Casey had never provided any infor-
mation or special analyses that could
be used ..in making _investment deci-
sions. ..
Of course, Sen. Levin's concerns
about using public office for private
gain are justified, so much so that we
would like to see them applied to leg-
islators as well as bureaucrats. On the
other hand, a case could be made that
the director of the CIA, of all federal
officials, should not only be allowed to
trade securities on the basis-of the in-
formation he has, but actually be re-
quired to do so. In the vernacular, it's
called putting your money where your
mouth is.
STA
080001-8
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Approved For Release 2005/14118NRIATIM91-
6 June 1963
0901R000400080001-8
STAT
ASC's Carl Bernstein reports that a Rouse Foreign Affairs Committee is
expected to vote tomorrow to cut off funds for covert CIA aid aimed at crippling the
Sandinista government. Senate committees already have voted a simliar cutoff by
September 30, but Bernstein reports that cdagressmen respomsible for overseting the
CIA are skeptioaa about today's charges by Nioaragua.
BERNS7ZIN: Despite heightened congressional concern about the CIA's activities in
Centraa Amerioa, those coagressmen most familiar 1...ith the agency's operaticas, members
ci the House and Senate latelligeace Committees, have expressed skepticism that the
ageacy would engage in any assassiaation plots. Such action, they mote, is forbidden
by law, and the danger to the CIA, if it was fouad to" be secretly plotting murders of
NicaragUan leaders, would he enormous, interaational embarrassment, a- probable cut-off
funds Eor dozens of covet operations arouad, the world., .Ear?reachiag
-investigations, and for the Reagan admiaist.ration extensive political damage. but
among members of Coagressioaal -intelligence Committees, as well as members of the
intelligence gatheriag community there was. little doubt expressed that officials of
the embassy staff in hanagua have exteasive contacts 1-ith the Sandiaistas' political
oPposition. at of the S19 million in covert operations against the Nicaraguan
regime is earmarked icr building popular support for an opposition f-70mI in the
country, but there has been no suggestion by congressional sources that these plaas
incluoe assassination attempts. CIA Director William- Casey, say members of Congress,
has become increasingly angered by questions raised on Capitol Hill about covert
activities in the hemisphere, leahing to a recent outburst in whicn congressmen say
Casey .shoL:t.ee at then, quote, 'Who lost Cent:-La AmeriCE is goiag to he the big issue
in the next presidential election. This is C.ai tein for Nightline in
Washington.
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ART' CI Jr?::. _
r.a.= ,t4
1-00901R000400080001-8
STA"
WASHINGTON POS1
6 .7 tine 1983
LETTERS TO THE EDITOR
Mr. Casey's Portfolio ,
The front-page story June 1 .
misrepresents William ti. Casey's
recent investme*t activity and
.needs to be-corrected. ? --
-I have provided. Mr. Casey
.and his faniily with professional
investment- counsel services for-
approximately 20 years:During
this time, I have had discretion
? to manage his investment with-
out consultation with him. -
Investment changes that -were
? ?made by .me in his accounts were
based on our firm's judgments -
that were consistently applied to
our other clients' portfolios. There
- have been no instances whatever
.during MT. Case's service as di-
rector of the Central Intelligence
-Agency when he has provided me
with any information that could I
have been used as an aid in mak- .
ing these decisions.
, In the third quarter of 1982. a.
large sale was made of a security
Mr. Casey had held, for over 30
years. This sale was made to im-
prove the safety and diversifica-
tion of the portfolio. Approxi-
mately 40 percent of the proceeds
were used to purchase other
stocks and 60 percent to buy
bonds. This activity made for a
large dollar value -of transactions.
but. much of this simpiy reflected
the rolling over of temporary
short-term securities. The stocks
and bonds selected by us were
deemed as appropriate for his
family's investment, objectives.
RICHARD R. CHES WICK
eneswick, Gillespie and Co
Greenwich, Conn.
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Approved. For Release 2005/11/28 : CIA-RDP91-00901R000
ARTICLE. 1. ..._ ?
!I_
WASHINGTON TIMES
6 June 1983
SOCIETY / Betty Beale
Ardeshir Zahedi, America's
greatest host while posted here as
the shah of Iran's ambassador,
blew into town for two days, saw
friends at the State
Department and in the Senate, vis-
ited his former social secretary
Jaleh Yazdan-Panah of the ?
prominent Iranian family, who lies
seriously ill at Georgetown Uni-
versity 'Hospital, and attended the -
-OSS dinner at the Washington
-1-111tori,where former CIA director -
andambassador tairanRidhard '
Helms was honored with.the Bill
Donovan Award..
Zahedi, looking even more full ? ?,
of health and vitality than on his '
?last yisit, also attended .Henry Kis-
-singer's birthday bash in New :
York. At the OSS-dinner he was the
guest of noted oilman John
Shaheen. We all
remember Shaheen's efforts to
start a newspaper in the Big
Apple, the New 'York Press, and
the divine eight-day voyage to
Bermuda he threw aboard
the Queen Elizabeth 2 to publicize
the venture, as well as that other
time he chartered the QE2 to take
1,200 friends to the dedication of ?
his oil refinery in Newfoundland. c
Those were the glamorous days.
Honoree Helms spoke for only
10 minutes at that dinner, but
devoted all that time to America's
need for in-depth institutes to
study and understand Iranian, ,
Soviet, etc., leaders and methods.
"It's open knowledge in our gov-
ernment that we do not know how
the Saudi royal family arrives at
its decisions. The same applies to
the Russian leadership," he said.
400080001-8
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ARPCLE APP
ON PAG
roved or Release 20101411Wia-VA-MDIES1-00901R00040
5 June 1983
:
. -
EN1114136L,*147:t..:4'
LLC
?
-
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ARTICLE
ON PAL
?
By ALFONSO CHARDY--
1- Herald Washington Bureau, .
Approved For Release 2005/1E&ICATM91-00901R000400080001-8
APPEARED 5 June 1983
olicy
rale, ..et to
Preparation. of ? a - reluctant
V V
American public for increased U.S.
--military involvement in Central
America, perhaps even including
the dispatch of U.S. combat troops.
? An -end to the interagency
ASHINGTON president
T T Reagan and his inner-circle
of advisers have taken di-
:: rect control of -U.Sapolicyxin Ceti,
tral America in a move that may
- toughen the administration's role in
the turbulent region. -
?1 A hardened position would be
clearly in tune with recent Reagan
_rhetoric about the priority he places
on stopping Marxist subversion, in
Central America. Since March, the
President -has made six major
speeches that touched on the issue,
including an exceptional . appear-
ance before a joint session of Con-
gress April 27 in which he warned
. that the region's violence could
threaten "the safety of our home-
' land."
? Speculation that the tough 'Rea-
gan position will get tougher gained
currency May 27 with the ouster of
Thomas O. Enders as the State De- leftovers.' At the same time,-ad-
ministration officials announced--apartment's chief Latin American !
decision to send 100 additional U.S.
'military advisers to Honduras and
leaked a proposal to send 20 or 30
-others to Guatemala.
Some State Department officials
said these developments could re-
flect a desire on the part of some
White House officials to prepare
public opinion for an escalation of
US. involvement in the region.
Hard-line White House and Pen?
tagon officials contend that only an
increased and more active U.S. mili-
tary presence in Central America
would check the advance of leftist
guerrillas in El Salvador and the
growing military buildup in Nicara-
gua.
Privately, these officials say they
believe that only a dramatic in-
crease in the number of US..mili-
tary advisers in El Salvador --from
the present 55 to 100 or .200 will'
bring about victory.
feuds-on Central American policy
. that sometimes -created the impres-
sion 'both here and abroad that the
United States was confused on how
to deal with Central America.
? New tactics in dealing with
Congress, which has failed to enact
Reagan's Caribbean Basin Initiative,
cut part of his requests for military
assistance to El Salvador and tried
, to curtail CIA assistance for anti-
Sandinista guerrillas.
-? More personnel changes.
The day.,Enders'_ departure was
announced. the Pentagon and State
Department released a strongly
worded background paper on Sovi-
et-Cuban-Nicaraguan ? meddling in
_Central America. Enders was said
, to have opposed it as "warmed-up
specialist. Administration officials
. said Reagan personally ordered En-
^ ders' dismissal.
. Reagan has since stressed that
Enders' dismissal as assistant secre-
tary of state for inter-American af-
fairs did not mean a change in poli-
cy. "Contrary to some reports...
we are not changing the policy
outlined to the Congress," he said
Wednesday.
? But interview! With half a dozen
State Department and White House
officials indicate that Enders' re-
moval could result in any or all of
these developments:
? ? More active arid overt support
for pro-American governments in
Guatemala. El Salvador, Honduras
and Costa Rica, as well as the CIA-
backed rebels fighting Nicaragua's'
leftist regime.
Approved For Release 2005/11/28 : CIA-RD
? Some of the Pentagon experts
also argue that .a limited number of
.advisers should be given permission
to accompany 'Salvadoran units on
combat operations in guerrilla-con-
trolled areas.
This differs sharply with Enders'
formula for El Salvador. He sought
not a military victory, but only
enough U.S. military aid to help the
local government hold of the rebels
while it pressed for social, political
and economic reforms to eliminate
the roots of the conflict.
Although some of Enders' friends
believe his removal does not spell
any major change in policy ? "It
can't go any further to the right
than it already has," quipped one of
them ? many say that his depar-
ture clears the decks for harder
US.initiatives.
. A State Department source sym-
pathetic'. to Enders said that "cir-
cumstantial evidence" suggests that
Reagan may be considering deploy-
ing U.S. combat units in Central
America ? not necessarily in the
actual conflicts of El Salvador or
Nicaragua but on the periphery, -
perhaps Honduras ? to act as a de-
terrent force.
',Pentagon sources said that such a
deployment would only be likely in
the event of war between Nicara-
gua-a.nd Honduras or a dramatic in-
crease in the number of Cuban mili-
,tarY personnel in Nicaragua.
? A legislative aide to an influential
Democrat on the Senate Foreign
Relations. Committee commented
that Enders' removal and a Reagan
statement May -27 "clearly indicat-
ed" to him that the White House
was considering deploying U.S.
'troops.
Although Reagan had steadfastly
ruled out the possibility of sending
combat troops -to Central America,
he seemed to change his stance in a
chat with reporters just before the
Williamsburg summit at the end of
P9VM0901R000400080001-8
CON171Vrn-n
Approved For Reletsfyyp5k111/UADC-FpPrcilip990 400080001-8
5 June 1983
Casey still wheeling
Casey wcinrair accept a blind
trust last year to handle his $3
million worth of stock in two
dozen corporations when he
was on the national carpet for
dubious market wheeling-and:-
dealing, there- isn't much
chance that he will, clean up
his act after mere reports -of
new high-rolling.
Casey isn't like any other
bull or bear in the market He heads the Central Intelligence
Agency and is positioned to receive secret and sensitive infor-
mation With economic implications. His predecessors es-
tablished a blind trust for their private investments so there
would be no hint of conflict that they were parlaying secret
government information into stock market bonanzas.
But not Casey. When the heat was on his stock transac-
tions, he set up some Mickey Mouse arrangement that put a
couple of CIA subordinates in the position of watchdogging
his market activities. Imagine a CIA underling telling his boss
not to pounce on a possible market fortune for the sake of
ethics. That likely didn't happen when Casey joined the bull
market last year with transactions worth a few million. Asked
whether Casey subordinates ever waved him off a stock deal,
a CIA spokesman wouldn't say because such information is
available only to congressional overseers of the agency. How
convenient.
Casey, formerly President Reagan's 1980 national cam-
paign director, got his CIA post on the basis of the spoils sys-
tem. While little was expected of him because he lacked
knowledge in the intelligence field, the people at least might
expect his appearance of serving them more than himself.
There simply can be no blind trust in Casey until there is a
blind trust for Casey.
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Approved For Release -5
5 June 1983
William Casey's ethical myopia
William Casey's :private business dealings have
caused repeated trouble during his tenure 25 CIA
director. 'Within 'months of assuming the post, he
was accused of failing to reveal numerous business
,dealinr in a required disclosure statement. The
-Senate Intelligence - Committee investigated and
Confirmed many .f the, allegations:. Casey lailad to
.report invesinnen1s4oldnore than3250,00D, debts of
.early S-501400, four :lawsuits;r,servicp. ..on the
..boards of corporations and foundiatikandenore
lithan '70 legal clients. ?Nonetbeleisibe -committee
included, 'Casey was not ?-imfit'' o serve. Taint
-Faise That, iii.ittrerhapS still too Itind in light of:
more recent Inforinalloh7--- ?
? tr
-Casey's position gives tim aceessaidssonie-ioVItih
most cicsely-beithinformation onlhe "World ?econo-
my. But unlike his -two :predecessors, Casey de-
'dined to put his investrnents in a blind trust. In his
disclosure statement tor 1982, reported last week,
.Casey .revealed that be had sold and purchasid
_millions of dollars in stock, during 1982,' including
securities in sensitive indussi.sucla as oil, com-
puters and airlines. - _ ?
TAT
1R000400080001-8
The appearance of conflicts of interest ? and the
damage it does to Casev's credibility ? is obvious,
except to the director and his aides. His associates
say they help. Casey avoid :ethical problems by
screening hi., public dutieS.?They steer him clear of
decisions ttliat would create .a conflict of interest
Frith tiS stock hole. ingc
Now thars siovel: a public officialiahoiding public
.ciuties that might conflictiohtti pilvatetiusineg:.
which he refuses to xielinciiiishespeaki.aiazi:.,z,
'uncommonmtrogance
oun-
tQsseynis imperiouitirmi
?
Wnalaime.*?-?.,?
Casey has turned The ethics and -philosophy of
government service upside down Bevintered
life witlinEty knowing it wouid recpare.Anancial
sacrifice. His appropriate -courseis To do what
others have done ? employ a .blind trust or other
mechanism to avoid private dealings that conflict
-with .public duties. if Casey 1s unwilling to make
:that comnfittnenc-he is unfit to serve, and should
leave public life. .
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Approved For Release 2005/1-11280:p?14,-Epp91709901
? 5 June 1983
R000400080001-8
.???
Casey on Wall Street
'There's a disturbing entry in the financial. disclosure
. :report filed the other day b3.:S.1ire.ctor-Willipm Casey. It
turns out nation's intelligeocetideft.mas doing-a lot
more last year than-supervising our network ,of spies abroad.
/was .extremely-'busy On4.-Vall Street, -Ibuying,.and selling
tocks valued.ateseveral inillionidollars .and, ending -the -year
ith-as.setslued at *meth/y=3re than382 'nil lion.
tirnillionairesareinutaaarity.intiieisiteaganadrninis-
,
ti??? onporany.:previous tration torthat -matter. Most.
op-officials-comefrom big.Mry jobs in 'private life -and"
--take-a-sharp pay cut when they enter government service.
But the general practice is for cabinet-level -officers to put
? their wealth in.trtusdtrusts over which they -have no control,
-as long as they are working for Uncle Sam, to avoid any
-conflict of interest
Not so with Casey?and he's one official who is wide open
for such conflicts, given his access to secret economic
information that could give him the inside track on what
stocks to buy or sell. The CIA assures us that it is keeping
tabs on Casey's dealings and that everything is above board.
Sorry, but such in-house scrutiny of the boss in a closely knit
outfit like the CIA doesn't impress us. Casey should keep his
hands out of the -stock market and concentrate on the job for
which he is being paid.
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Approved. For Release 2005/11/28 : CIA-RDP91-00901R000
Bi.Tril,10 NEWS (NY)
5 :lune .19E3
STAT
400080001-8
'Self-Policing at CIA
in 1981, it was revealed that Cen-
tral intelligence Agency Director VB.
liarn J. Casey had not placed his pri-
vate investments in a "blind 'trust"
when be took over the leadership of
the agency. President Reagan and
other high offirin'ts with access to
sensitive information have set..up-sucb
trusts to avoid:any-appearanceof.con-
flicts -of interest. -
in spite .of valid '=.c"iticism,
Casey and his -wife 'bought stocks
worth between ;:a.9 -million and 44.5
million. Their outside :income was at
least '2478,600 and possibly Z159,1380,
mostly from dividends and capital
gains
Ivir. Casey is one of a handful of
people to have access to the world
wide monitoring system of the CIA_
He would be one of the first persons in
the world to know of developments
that might .aflect the stock market ?
for example, an oil glut or shortage,
crop disasters or revolutions. In
Mr. rav.Py sold $600,000 worth .of ail
-stocks, a move that proved to be per-
ceptive as the oil glut developed and
the price of oil stocks :plunged. Mary
other investors, of course, saw the oil
glut developing and sold out in time,
and it is not known whether Mr.
Casey had any inside information. But
the situation carries an obvious.possi-
bility of a conflict of -interest.
?
Vhile Mr. 'Reagan and others have
set up blind inists, such a course is
unfortunately not demanded of mem-
bers of the administration. in a ges-
ture toward regulaticm., the CIA has
now established a "scregning" mr-
tangetnent -under which senior :Ca
offirils check over-Mr. Casey's stock
'tr &inactions .for any
of interest.. .
This, dioweve% 'Is a kind of -self-:
policing -that -would be considered
Inivekable if it -were allowed :in privi-
ate corporations. .Corporate drams
are barred from tr-tMing stock trans-
actions based on "insider" informa-
tion, and their actions are reviewed
by an independent agency, the Securi-
ty and Exchange Corrtniccion.
Mr. Casey, of course,- is not sup-
-posed to use any information not in
the -public domain for his own private
gain, and we are not suggesting that
be is doing so. But with the worldwide
network of the CIA at his finger-rips,
Mr. Casey -must have just about The
-best stock advisory service in the
? world. To -avoid ? any appearance of
using the CIA as his own private -pre-
serve, Mr. 'Casey should follow the
example of his predecessors as direc-
tor and of other members of the
administration and place his invest-
ments in a blind trust beyond his di-
rect contra
- . ? ?
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Approved For Release 2005/11/28 : CIA-RDP91-00901R000400080001
LINCOLN JOURNAL 6, STAR (NE)
5 June 1983
+4????1??????
,?Error by the Mighty Casey
?ratably ncrhe of us knows enough to Nevertheless. Casey apparently insisted
pass fair judgment on the professional per- on keeping personal control of his own in-
for-mance of Reagan campaign chairman vestments, and President .Reagan foolishly
William J. Casey as director of the C.,e.nir..21_. allowed ? and yet allows ? him to get
Intelligence Agency. He may be doing a Away with it Two of Caser's subordinates
great job, or he could,hentien: Li. the CIA are supposed to stop him from
Bin anyone with 41- Eck of ordinary An. .making decisions that would create .a con- ?
sight }mows Casey snointrei .beahowedl.n.; of interest. 'Tlaat'S rich.
-.Because there is mo aaw or regulation
Nestment portfolio-whilegoccupying.Suchmequiring, the CIA chief to turn .control of
,sensitive national intelligence position. ins.investments over to a blind trust. the na-
tion:having relied on .pastexecutives to do
President Reagan .and several cif Its ac1:7-?
74.he.zight.,.and honorable thing, -we suppose
minisTation'S top .,associates-who make. _.
onomic policy nuickly established blind there's no alternative now but to peg such a
ec a
trust for the management of their private "w to the hooks'
investments. So did Casey's two immediate Michigan Sen Carl Levin Friday said
predecessors at the CIA. Both ? Stansfield he'll introduce the appropriate legislation. if
Turner and George Lush were well aware 'President Reagan ?fails to get Casey to see
that whoever is the nation's. intelligence .1h e.light propriety.701
czar has access to a wealth of secret inf or- Levin should prciceed regardless. The
mation on which private millions could be Congress needs to protect Casey from him,
made. self.
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TEMPLE TELEGF...4,..M (TX)
5 June 2983
STAT
0400080001-8
,CIA Chief Shouldn't Play Market'
'Government officials should not ing a profit; our system is based on it.
profit financially from their public .But there is something wrong with
positions. At anytime when there is a trading stocks on inside information
conflict of interest between public re- gained from employment by the gov-
sponsibility .and private proEt, the eminent.
government 'official should either As CIA director, Casey sees all
put the public interest first or resign kinds of secret documents regarding
before -reaping the_private :reward. sensitive negotiations and contracts
Central intelligence Agency Dire-. that .could influence stocks. Anyone
ctor William Casey has -released a who has traded in stocks knows that
financial .statement that shows he it is difficult to remember when such
traded heavily in stocks and tither information, buried in the memory,
securities in 1982. Casey is a former may surface as a hunch to buy this or
chairman of the 'Securities and Ex- sell that stock.
change Commission. lie was a Wall The problem. at minimum, is the
Street lawyer. He has the stock mar appearance of conflict of interest
ket in his blood. Casey's two immediate predecessors
Last year. when the stock market as CIA director. Stansfield Turner
began to move upward. it would have and George Bush. put their portfolios
been hard for a man who followed the .in blind trusts. Casey should follow
ticker tape by instinct not to buy and their example or. if he prefers to play
sell. There is nothing wrong in Mak- the market, do so as a private citizen.
- ?
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ieF,TIC-LE APF
.ftEproved For Release 211111A641-RDP91-00901R000400080001-8
5 ?June 19S-;,
Central America: Point of Ui
tiorward or backward,
our belly will hurt
By TOM POLGAR
In 1964 I had the privilege of talking
about Vietnam with the late Sen. Rich-
ard Russell of Georgia. then chairman
of the Senate Armed Services Committee.
Russell said the situation of the United
States in Vietnam reminded him of a
scene he once witnessed back in Georgia.
that of a cow hung up on a picket fence.
The cow could not go forward. she could
_
- not go backward, and all the time the
picket was hurting her belly.
Some 10 years later, as -I was climbing
to the roof of the American Embassy in
Saigon for the helicopter ride that would
terminate my service in Vietnam and end
two decades of intensive U.S. engagement
in that distant part of the world. I recalled
the words of the late senator from Geor-
gia.
Now in 1983 the United States again
seems to be hung up on a picket fence.
this time closer to home. in Central Amer-
ica. We cannot go forward and seek to
clear up the situation through a massive
military intervention. because Congress
and public opinion would not accept such
a solution. We cannot go backward and
disengage from El Salvador, because we
have elevated that small country into a
test case of U.S. prestige and resolve and
into a symbol of U.S. determination to re-
sist the spread of Marxist-Communist re-
gimes in Latin America. In the mean-
while. while we are seeking a politically
acceptable settlement of the civil war, the
pickets are hurting our belly and the pain
may be a continuing one.
The recently announced transfers of
Thomas Enders. assistant secretary of
state for inter-American affairs, and
Deane Hinton, U.S. ambassador in San
Salvador, and their replacements by peo-
ple without experience in their respective
new areas indicate the administration's
dissatisfaction with the progress in reach-
ing a solution to the problems of El Salva-
dor through diplomacy. Unfortunately, it
suggests also that the professional objec-
tivity and caution of the career Foreign
' Service officers will not be allowed to
stand in the way of attempts to resolve
the situation through more direct and less
conventional means, including use of
what the press likes to call covert action.
That is covert action? A pragmatic
/definition of covert action is this:
A government effort to fulfill na-
tional policy objectives abroad through in-
telligence channels.
While the term "covert action" may be
new to much of the American public, the
concept is as old as written history. It is
one of the several means available to a
government for the implementation of its
objectives. No major power would ever
preclude the use of covert action as a mat-
ter of principle.
The "Trojan horse" ? the introduction
of Greek soldiers into the fortress town of
Troy by hiding them in a large wooden
horse, ostensibly a gift to the town ?
was an early example of effective coven
action.
More recent examples on which there is
considerable literature, as well as contro-
versy, include the-British-American oper-
ation to oust Prime Minister Mohammed
Mossadegh of Iran in 1953; the 1954 CIA
project to remove from power the elected
president of Guatemala, Jacobo Arbenz;
the Israeli rescue of hostages in Entebbe;
the Soviet manipulation, through numer-
ous front organizations, of the anti-war
sentiment, particularly in Western Eu-
rope, and the CIA's "secret war" in Laos.
The Bay of Pigs project remains as are-
minder of all the things that can go wrong
when an operation is based on false as-
sumptions.
Perhaps because many people confuse
covert action with "dirty tricks': ?
which can but need not be part of a spe-
, dine covert action project ? or perhaps
because they are opposed to the objectives
1 that the government seeks to attain
! through covert action, there appears to be
' a certain amount of opprobium attached
to the concept. Many, whose patriotic and7
anti-Communist 'motivation cannot be
questioned, feel uncomfortable about cov-
ert action and are concerned that its use -
invokes difficult questions of morality, in-
tegrity and perhaps also of law.
Perhaps so, but in these respects covert
action is no different from other means of
policy implementation, 'The biblical com-
mandment, "Thou shalt not kill," is re-
flected in all of our religions and is firmly
anchored in the criminal laws of all coun-
tries. Yet there are many circumstances in
which killing is excused, tolerated. al-
lowed. encouraged. ordered and praised.
It cepends on who does the killing, on the
circumstances, on motivation and a whale
series of other factors. On the other end of
the scale. sexual activity, the source of
life, is clearly encouraged and tolerated in
certain circumstances while deemed inde-
cent. illegal or prohibited under others.
Covert action is not immoral or illegal. It
is neutral. It is an age-old technique by
which governments seek to influence
events and alter conditions in their favor.
The policies being implemented by covert
action ? and the specific covert action or
actions being utilized ? may well be im-
moral or illegal' or both.
The 17th-Century British poet, John
Dryden, wrote:
"Treason never prospers.
"What is the reason?
"Why, if it prospers
"None dare call it treason.-
lt roes something like that with covert
action, too. If it is successful. there are
few complaints ? except from the de-
feated side. If the covert action fails, or
goes on too long, or reaches dimensions
that preclude secrecy, then it will attract
controversy and condemnation, with op-
ponents caring little whether they are
beating the donkey or the saddle ? that
is. the policymaker, the operational con-
cept or the executing agency.
.,c0A.,10-Urap,
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ARTICLE APPEAlifiloroved For Releasei\tiCiag1WiK41A-RDP91-00901R000400080001-8
ON 'PAGE /C,.. 5 June 1983
CL4...-deepen,s,
U.S. iiii6:610:*er4.-
By ALFOSO CHARDY
And JUAN 0. TAMAYO
' Herald Staff Writers
WWASHINGTON ? They were?
known as the CIA's "Fami-
?I ly Jewels," the private 'sins-
whose public airings virtually -de-
stroyed the agency's ,capacitrIfor
covert action in the mid-1970s.
Eight plots to assassinate .+Fide1:3
Castro. -Destabilization !of Salvad9r,
'Allende's administration in -chile:
The Bay of-Pigs. The overthrow,bf
the Diem regime In Vietnam-.
Snooping on , American students.
Opening U.S. mails. ? '
Throughout the late.11970s. -the
'CIA's strong-arm specialists :moped.
retired early or were fired ,as a
'post-Watergate Congress shined the
bright light of morality on the dark
corners of the spy underworld.
But now many of the CIA's cov-
ert action experts have come in
from the cold, lured out of inactivi-
ty by President Reagan's vows to
pull up America's socks in a world-
wide contest with the Soviet bloc.
? Reagan's "new" CIA has
launched at least 11 covert cam-
paigns since -he walked into ?the
White house, by far the highest
number since the agency's salad
-days in the 1960s, U.S. intelligence
sources say.
The biggest of them ? in fact,
the biggest CIA operation since the
Bay of Pigs ?is in Central Ameri-
ca, where Reagan sees leftist sub-
versions being fueled by Nicaragua.
Cuba and the Soviet Union.
And now;, public disclosures of
the Central American ccvert opera- ,
tion have brought new criticism, of
the CIA. The controversy has
'grown into one of the most heated
in Washington today.
Liberal congressmen want to
squash the CIA campaign. There
are fears that it could help trigger a
war between Nicaragua and Hon-
duras. There are high-sounding ar-
guments that the world's leading
democracy should not stoop to
international skulduggery.
? .,Administratiotrof ficials adaman
defend the covert operation, say-
ing it is an essential part of a three-
legged campaign to stem-the spread
of Marxist insurrection in the re-
gion between -the Panama Canal
and Mexico's oilfields:
- "The iatiwitign cornbines U.S. mil-
itary aid .to US.-allies fighting lef I-
;1st- sutiversionALS;economic aid to
:erase-the .social 'Inequities that fuel
revolutions, and :CIA' funds to at-
-tacrtlielperc6ved roo'ficif much of
"the" trouble '-.-7z.XIcaragua's leftist
SandiniSta-government.,.
In the past-two years, Reagan has
pumped more than41.11illion in eco-
nomic aid and $218 -Million in mili-
tary assistance' into-Central Ameri-
ca ? not counting the 819.5 million
for the CIA operation.
The number of U.S. military per-
sonnel stationed in Honduras will
soon :rise to about 300.-Fifty-five
U.S. military advisers--are stationed
in E1,Salvador, and Reagan is re-
portedly considering *ending up to
'least 50 cithers-to Guatemala. Even
Costa Rica.; which doesn't have an
army, 'has received U.S, military
The. economic ..aid requests have
"hid easier,sailinIhrougn-Congress
than proposals:for, military assist-
ance.' While agreeing largely on the
Marxist threat to Central America:
members of Congress dissent heart-
ily over Reagan's-accent on military
assistance.
Unwilling to face future charges
that it "lost" El Salvador, Congress
grudgingly -approves only part of
the Reagan requests for military aid
? and wraps them in a spider's
web of demands for progressive re-
forms by the Salvadoran govern-
ment..
In recent weeks, the dispute over
Reagan's approach to Central
America has spilled over into the
executive branch, essentially pitting
the National -Security Council
against officials in the State Depart-
ment.
NSC chief William Clark and the
U.S. ambassador to the United Na-
tions Jeane Kirkpatrick, both hard-
liners on Central America, are now
said to have the strongest voices on
policy.
Deane
tee as am
on his wi
a career
U.S. amt
named T
Also on i
Enders, t
state fot
who wa
leaked:tie
negotiatic
rebels: HE
home (Tc
litical apr
bassador
Ironica
.pervised
covert op
the link
bombing
1973, wh
the U.S. r
Keepi:
Reagar
usefulnes
in the th
rebels in I
have come
who read the GOP 1980 campaign
platform.
The platform vowed Reagan
would "seek to improve U.S. intelli-
gence capabilities for technical and
clandestine collection, cogent analy-
sis, coordinated with counterintelli-
gence and covert action."
It also deplored Cuban and Soviet
intervention in Central America and
"the Marxist Sandinista takeover of
Nicaragua." More significantly, it
promised to "support the efforts of
the Nicaraguan people to establish a
free and independent government."
Reagan had been campaigning
for the GOP nomination as Central
'America virtually went up in
flames. In mid-I979, Sandinista
guerrillas toppled Nicaraguan Presi-
dent Anastasio Somoza. Six months
later, Marxist insurrections explod-
ed in neighboring El Salvador and
Guatemala.
Congressional sources with ac-
cess to intelligence information say
that a few days after the GOP
adopted its 1980 platform, several
former CIA officials began forging
the framework of a covert program
to restore the agency's "strength"
arouncl5the world.
These former CIA officials were
described as "old-timers." some of
them covert action specialists dis-
missed by the hundreds in the
1977-1978 housecleanings that fol-
lowed congressional investigations
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so-called Family Jewels.
.CONZINAZD
'
Approved For Release 2005/11428 i.W3ILFt9L-80rM)R4.119
5 June 1983
771:1'716"4';Z7,77't?,;7t7, .5'NtPlIrktie;"
? ? .
asoy.s stoc dettlin
. - ? - ?
.Every_ administration_seema.;to
ave , one or more officials
whose.personal financial wheel-
rigs and dealings teeter alone
the edge of impropriety and
.4sometimes slip -over ? to the
.4embai7assment of the _president.
, 'Ciirrently--in'Alie.:newa4s.ilitin-
-;ald lieagan's former ?cisuPaign...i-
..:imanager, William J. Casey,-whb,.-:
'..'lis now director of -central intelli-
gence."
4 ? . . . ? - ?
'CASEY IS the 'fellow 'Who
won ? the "not -unfit to erve"
designation from the 'Senate
intelligence committee after
?
questions were raised about his
previous financial and legal ac-
tivities and his hiring a friend
-with no experience to direct
CIA clandestine operations.
.Now Casey's mandatory finan-
cial 'disclosure statement shows
him dealing heavily in stocks
and securities last year ? with
twice the transactions .s.of the
year before especially in the
oil. computer, airline and drug
industries.
..This is noteworthy,because as
CIA.,-,director, Casey one of
only a handful in -,government
With -access to secret informa-
tion on world economic trends
(such as oil production and sales
figures).
? -Arse Unlike his two predeces-
sors at the CIA and unlike a
number-of other top administra-
? tion officials, Casey has not put
his 'stock holdings into a blind -
tru,ct.
tAy-td-dar, decisions on his
portfolio are made by a financial
-adviSer,r4but. Casey .knows _what
is bought arid .sold-..A- reasonable
persorrzmight wonder what
? Casey, :the CIA director learns
might not, sometimes influence
what-Casey the venture capital-
ist does:...,
And while a screening corn-
mittee.at.the CIA is supposed to
prevent Casey from making
decisions that would create a
conflict Of interest with his
holdings, the secretive nature of
the -agency makes it impossible
to know if or how well that is
working. Again, there is reason
for reasonable doubt.
TELE ISSUE, then, is the
need for government ;officials,
and especially high -ones in
influential positions, to avoid
even ?the appearance of Possible
Ampropriety or conflicts of inter-,
..est.
With , Casey, the appearance.
and the attendant insensitivity,
, is disturbing.
coA.M.7,,ri
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Approved For Release 2005TV/1281-301ZROlga1LOG9MIZO4U
5 :Tune 1983
Sr.
asey s stock dealings
'Every administration seems. to
,have one or more officials
kwhose personal financial wheel-
?
pngs and dealings teeter along
'..he edge of impropriety and
isometimes slip over ? to the
:Pembarrassment of the president.
'Currently n the news is Ron-
ald Reagat's former campaign
? manager, William J. Casey, who
is now director of central intelli-
gence. .
CASEY IS the fellow who
won the "not unfit to serve"
clsignation from the Senate
intelligence committee after
questions were raised about his
previous financial and legal ac-
tivities and his hiring a friend
with no experience to direct
CIA clandestine operations.
?.Now Casey's mandatory finan-
cial .disclosure statement shows
him dealing heavily in stocks
and securities last year ? with
twice the transactions of the
year before..? especially in the
oil, computer, airline and drug
industries.
..,This is noteworthy ,because as
CIA--director, Casey is one of
only a handful in government
With access to secret informa-
tion on world economic trends
(such as oil production and sales
figures).
-AXso unlike his two predeces-
sors ? at the CIA arid unlike a
number of other top administra-
tion officials, Casey has not put
his stock holdings -.into a blind
tril
bay-td-day decisions on his
portfolio are made by a financial
adviser, but Casey knows what
is bought and sold:-:A reasonable
person might wonder if --what
Casey, the CIA director learns
might not sometimes influence
what-Casey the venture capital-
ist does.,
And while a screening com-
mittee at the CIA is supposed to
prevent Casey from making
decisions that would create a
conflict of interest with his
holdings, the secretive nature of
the agency makes it impossible
to know if or how well that is
working. Again, there is reason
for reasonable doubt.
THE ISSUE, then, is the
need for government officials,
and especially high ones in
influential positions, to avoid
even the appearance of possible
impropriety or conflicts of inter-
With Casey, the appearance.
and the attendant insensitivity,
, is disturlping.
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adpti6oved For Release 2005M Med( CIAIRDPOEP00901R00040008
"TIN E AP 5 June 1983
-Casey on Wall Street
There's a disturbing entry in the financial disclosure
- report filed the other day by CIA Director William Casey. It
turns out that the nation's intelligence chief was doing a lot
more last year than Supervising our network of spies abroad.
He was extremely busy on Wall Street, buying and selling
stocks valued at several millio.n dollars and ending the year
' with assets valued at possibly more than 18.2 million.
-Multimillionaires are not a rarity in the Reagan adminis-
tration, or any previous administration for 'that matter. Most,
- .-top officials come from big salary jobs In private life and
take a sharp pay cut when they enter government service.
But the general practice is for cabinet-level officers to put
their wealth in blind trusts over which they have no control,
???as long as they are working for Uncle Sam, to avoid any
-conflict of interest- ,
.? Not so with Casey---and he's one official.who is wide open
?for such c6nflicts, given -his access to secret economic
information that could give him the inside track on what
stocks to buy or sell, The CIA assures us that it is keeping
tabs on Casey's dealings and that everything is above board.
Sorry, but such in-house scrutiny of the boss in a closely knit
'outfit like the CIA doesn't impress us. Casey should keep his
hands out of the stock market and concentrate on the job for
which he is being paid. '
.00
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ON FIG -
ARTICLE APP' REappiroved For Release 2dlit/1P224:: EDVRDP91-00901R00
5 June 1983
Shultz Replaced Latin Aides as
of a Reagan Pact
By BERNARD D. GWERTZMAN
&poen to Tbetier York Times
WASHINGTON, June 4?. Secretary
of State George P. Shultz agreed to re-
place his two chief advisers on El Salva-
dot as part of an arrangement he
'worked out with President Reagan 10
days ago to regain control of day-to-day
management of Central American poli-
cy, well-placed Reagan ?Administration
officials say.,
?The officials added ?;:the
'Thomas 0. Enders, Assistant Secretary
of State for Inter-American Affairs, and
Deane R. Hinton,: the Ambassador to El
Salvador, were also dropped in an?effort
to end a bitter fight over that policy that
had spread throughout the Administra-
tion,
in interviews in recent days, the offi-
cials said Mr. Enders and Mr. Hinton
were replaced after a meeting between
Mr. Shultz and Mr. Reagan at the White
Rause. They said Mr. Shultz sought the
meeting after Mr. Enders complained
that the appointment by the ,White
House of Richard B. Stone as a special
envoy to Central America had raised
further questions over whether the
?State Department was still in control of
? policy.
Dual Approach Reaffirmed
? The main question, Mr. Enders re-
portedly said, was whether the Admin-
?istration was committed to a dual ap-
proach of aiding El Salavdor militarily
while ear:pureeing the start of a dia-
logue among the various countries and
factions involved or whether, looking
for a quick solution, it would place
much more emphasis on military suc-
cess
According to aides to Mr. Shultz, the
President told him that he remained
committed to the dual approach pub-
licly stated in his speech on Central
America of April 27. The approach was
long favored by Mr. Enders and Mr.
Hinton, who have argued privately and
publicly that it will take considerable
time and patience to see any results in
El Salvador. But interviews with ?M-
c-inn in various agencies indicated that ?
. there are many who believe that a more
dramatic approach by the President is j ?
needed to turn the tide.
.1
According to a Shultz aide, Yin Enn ?
ders also acknowledged that his own
personality may have contributed to
feuds with White House, Defense De-
partment and Central Intelligence,
Agency officials. One official noted that
Mr. Enders had said it might be time ,
for him to move to another post.
Mr. Shultz, in his Obnversation with ?
Mr. Reagan, came to the conclusion
that he had to "sacrifice" both Mn En-
Approved For
STAT
0400080001-8
Oars and Mr. Hirrton, who for diffitent ? Mr. Enders himself has declined to be;
masons bad run afoul of the White interviewed since his transfer was an-
House, in order to re-establish the lines flounced.
; of policy, a senior State Department of. The dispute over Mr. Stone was more
I ficial said. ? significant than the white paper, offi-
.,; "The Secretary told the President," cials said. The idea of appointing a spa-
an aide said, "that we havtto have a cial envoy had originated with Repre-
clear policy. Thereare too many people sentative Clarence D. Long, Democrat
Involved. We have no have the manage- --Of Maryland, who is chairman of a key
meat of Central American policy ran House -Appropriaticins -subcommittee.
%Irma:111)e AssistantSecretarynotheSeen Re made _his approval of the A.dminis-
retanyof State tothePresident:" V tratiacearequest to transfer military
nirThe nPresidere ;agreed nwith the .aid earmarked for other ceuntries to El
thesis;".the aide wentonn"Bixt part of Salvador-conditional on sending a Bps-
the agreethent involved the personnel cial negotiator there.
- -rnenges of Enders and Hinton.' But when the White House decided to
The 'eleenges, first announced last name 'Mr. Stone as Ambassador at
-weekendndramatized theltensions that Large -fir :all of Central America, the
'bad 'arisen in recent months -between move was perceived by Mr. Enders ?
Mr..Enders and the National Security and eventually by Mr. Shultz ?as an ef-
.-Council staff, headed by William P. fort by the White House to cirrarcevent
Clark, as well as between Mr.. Enders the State Department. Mr. Shultz has
and certain senior officials in the C.I.A. now reached an understanding with the
and in the Pentagon. White House, an aide said, that Mr.
Much of the problem, officials from Stone will report to him and that his ac-
tions will he monitored closely by the
department.
Mr. Enders's policy problems began
last year, his aides said, when he
backed Mr. Hinton's efforts to persuade
Salvadoran politicans not to allow the
right wing to take power after it did sur-
prisingly well in elections. Be telt that a
government led by Robert d'A.ubisson,
the rightist leader, would not obtain
enough Congressional backing in Wash-
ington.
This approach had the White House's
her of American advisers there. ? barking in jese, nut as the State Dettann
As an example, aides cited the meat began to press for more democra-
dent?of the recent White paper on Cam-' tization in El Salvador, some criticism
mtmistsubversion in Central America. began to he heard of Mr. Enders in eon-
They 'said the C.I.A. produced the servative publications, his aides said.
paper many months ago with the ide.a I And when Mr. Hinton gave an address,
that it would be made public by the supported by Mr. Enders, attarking the
? State Department. State Departmentrear- t "death squads" in El Salve-
dor, White House officials said they had
not cleared the speech. This, officials
said, undercut Mr. Hinton's efforts in El
Salavdor and caused severe friction be-
tween Mn Clark and Mr. Enders.
all agencies agreed involved personal-
? inn clashes, Mr. Enders, at six:Mon]
eight, is an imposing- and sometimesj
dominating figure, physically and intel-,
? )eCtuzilly. Close aides said he felt that
=any other Reagan officials did notnm-
i derstanci what was going on in Centred
'America and failed to realize that Con-"
? gress would not supporta major
- tary mili-
and economic commitment to Eli
; Salvador, particularly one that could
; lead to the involvement of American
? -forces or a major increase in the num-
officials said Mr. Enders and his staff!
? 'decided that not only did the paper pro-1
? vide nonew information of consequence
but that it was written in -too tenden-
tious a manner
"Tom decided to just sit on it," one of-
ficial said. After several months, Wil-
liam J. Casey, director of Central Intel-
liegence, complained, astici Mr. Clark.
State Department Yields
A majordispute broke out two weeks
ago over the issue, 'with the State De-
partment finally giving in to the C.I.A.
and White House and making public a
revised version on May Z7r. a few hours
before 'Mr. Shultz announced that Mr.
Enders was being replaced by Lang-
horne A.. Motley, the Ambassador to
Brazil..
Release 2005/11/28 : CIA-RDP91-00901R000400080001-8
ARTICLE APPEAR
ON PA2E
proved For Release 2405/11428:: taisilSOP91-00901R000 00080001-8
June 1983
WASHINGTON ',HAILS '?
- . ?46.,----i---.6-fi-ii-,.,-,kkeiit.......,...,,,,vis. tural agreemen an a joint move to
..----?, -
, . ..trov.:757.7. ui;xdotts, earth: tatseting
on. open new consulates in Kiev and. New
York, and the Agriculture Department
ANDROPOV APPEAL ,-,:."?A CrucialVatersbed': ' - was reopening lon,g-terni grain negotia-
tions with Moscxrw.
Righ_rahking AfirniniqtratiOn offi-
FOR WARMER 11E ?,.. presidential qadvisers 42ave cials disclosed, moreover, that some
- .---. - .
,,,
. -- - _
S argued that bolding:esti:main meeting er 3d, the White House chief of Staff,
idential advisers, such as James A.
Iwitha3bnited agenda would be neither and Michael K. Deaver, the deputy
wisexior,,possIble-These advisers, of& chief of staff, have privately advo? cated
cialsealti,Srant-to see how Moscow re- e Reagan-AnthdPav summit meeting
1U .S AS A 'READY TARTNER' .'sPancistp2biltiilltbeAdrairfildratirel next sPling.
. ;?_ , . ,,,,-?,.,_,_ .. ? ,. , -Strategii*3313,4eripoSia,,a0rtie ;kCif Their arilirnach tcork?ld be to 'seek
,.,,... ,-Nonnhareduejurapprovalbytnepseair.. ;agreements ,on issues like grain trade,
-cultural exchanges and ccmsulates, but
State Dept.SoysItt'Zen.'ottilritei-iiiiiattateas?"1"etr-cioi's.The-i---7-t -:
,.. sidestep the .dittnult issue of arms
-.-..t. . 1' II ? over Avilich the two 'Govern-
- ..-' ' ..: '-" -- :- ' - - ii'?f=ile-,Taosiet.iespobaaaiciuld ents have !been ideadlocked through- ;
thatlitfililoWirigaili$tiviet 2.-- ..
------:,klaNsilitia. abati,timos-Whitealoosead5- the Reagaa.Administration.
?----;.,-..- -;,--.:.A. -,..z....a..?4--iiwa. ...!+ -..- - - -
4'21' - Jt klaiaiir"'Webk11-waltaciseefif ?,,,
Rem-- aticsto- arnmari '.z.-.'---1,..,..,...,------,.,,,,---. ,,.....?......abe7.4.,.., - AMator7dolivaiion .1 7'7-
, " '''`,.. ':-2 ?1."?'__ . L ;Officials :said a major motivation
L*'. i""' - '''''''-' - '-'1"2'4,Ai? I trar21re_ ... _ ?gnaling ,,ve'llioutdve 'te- T5', would be to help President Reagan In a
---- 3.'-' ...- ' p.,;;;,...........----.--;sj-T-%fittr.-:--2,7i.,',.:! j VobakitgagnartneYseelOreedYandwill campaign for re-election by easing ID-
r-DYLLF-1"`"41'mn-lajm-Pi'44':'-'"17)-:1 qiesiitiainaar=theresthemossittitity of - ternationaLtension. A drop in tension
,
Taii.,._ ..,...?._ ..,.. ..e.,_ ... ..4.7.t.,...,--. T1 temopedne"..i. _ ... ..__ - 4-;-;-,.. _ :,--:t--;-- --: --, ,...:, - =would forestalloriticism, as one official
AsNG
'-.--!f--me ,73inciat3 ?Me Slate , -Y"-Tensices-lbetween Washington ,axid Ixitit, that the President was "too much
Department today welcomed-an appeal : :_Moscovotbave-tiuitt :-,N) -putt, 1.5 acold;varriand oruntabo SitIe todorragith the i
!fromzuri. V.,-Andropoli-lor improved sharplyssirice the Soviet intervention in 7 R
-e-lations and asserted that if Moscow Adglisnistenizi December DM :merits with Moscow.
was ready "to take concrete steps" It --, _ Inaulidition, the Reagan Adtministra- ,I4 secietaryCltber op dr=s.,ilsinFelAgg-1:retens; wile. I
would "find a readY_Pattner" -lb the tita,7-L Zathte71h2g. 4-4L12e4..,,...w.A.,,,,S*viet-eaccittraged,,,,,,,?1 tarn P. ciark, the President's national I
ateagan Attministration.-,-6-;? , :? 7"--:. . :,. repression-''''?" `"` - ?-??? ""''''''''''''''''' ..---' security adviser; `William J. Casey, the I
-"For our part, the T.I.S. approach to : Solidurtyp: Poland, sought to impose: :Director 0/ caltrai Intelligence. and 1
?relations with the Soviet 'Union is seri:: ' anembargoonequipment for the Soviet , . Teene j. ,.,..,..., 1 /
ous and seeks to explore lealistieways ', matuntlystspipelineto Western Earape. riiaies deieWt7t-0-7-'e UnitedNations 1
rod cooperation to mutual Quivainta,ge, alliertremItraccused the White Mouse were reported In be resisting this tip:-
I:Alan D. ROMberg, li. State .Department 1 of viagigreconomic,warhire.'" ':-. - . .11 proach.
Spokesman, said. "Crux-diplomatic dia-"! - president Reagan and ler-Andropov 1 'The Weinberger-Clark-Casey group
logue with the Soviet Union on all out,-;', have -alto clashed Several times this I was generally said by high officials to
standing issues is intensive and toom;t. spring overthe Soviet arsenal Cl- 55-20 be contending that ,the public -would
prehenstve?and will continue*.' ,,-.1: .?;.!:', medinmeange . - missiles targeted inevitably expect ::President Reagan
On Thursday Mr. Andrnpcv, tjaki,44: against;Westarn ',Europe, and Western and Mr. AndroPov to deal with arras
with W. Averell Harriman, e :former. Plans-Ic)dePk`Y 'American 'Pershing 2 ' sTiarpntrt'lly disappointed ifrarsurentlwituintetbe-
United States Ambassador-to Mascow -' contbmingand cilheatthealles.dispumlate13:tdsve liaredYear; trverer ing (lid nor yield some positive results in
Central America, Angola and luta= These cffiripis were said to fear that,
rights issues. . . - - . no matter how much advance effort
Mr. Reagan, who has - said that he '. was made to lower expectations, a polit-
would accept - a surcuriit meeting if it ical backlash might develop in the
could be properly prepared to . insure ,United States and Western Europelf a -
concrete- ..results, predicted Tuesday 'summit meeting did not produce agree-
that there would be an improvement In !pent or substantial visible progress-on
Soviet-American :relations -despite 'arras issues.
-sharp `!thetoriC:"13ut he gave no expla- ! For that reason, officials said; Mr.
nation tor making that forecast at a 1Clark and others regard the forthcom-
tme whentnany spedalists said Soviet- ling round of strategic arms talks to
American -,Telatices ' were Unusually i :Geneva as a particularily important
strained. --, . ...-.... ,.:-'_ -.. t test of Soviet intentions on the ground
Privately, however, officials said the ; that President Reagan is planning to
and a longtime specialist -on Soviet al-
lairs; said the Soviet leadership was
'"ready and interested in -seeking joint
initiatives" that would improve rela-
tions with Washington.; -
A SI:dft From Polemics -?'
--The public exchange marks a shift
-away from 'the sharp polemics between
i-Moscow and :Washington in
[weeks. it came as senior Reagan-4kt--
.mtn' -officials, told by Western
*es lhat the - new Soviet lee.dership
was interested ins top-level meeting,
Fwereprivately discussing the prospects , State Department vas exploring with !alter the Administration's .strategic
;43i3d conditions jor possible meeting 340scupf-Ahre_phssibilities of a neW itt* 1 arms proposal proposals.inws tht will move it
closer
o s
In addition, Mr. Clark is understood
to be looking for some Soviet restraint
in Central America to improve the cli-
mate for a Reagan-Andropov summit
meeting.
He has told others that he was partic-
ularly disturbed at Moscow's delivery
of five shiploads of Soviet military
equipment-at Ni ports in the
Approved For Release 2005/11/28 : CIA-RDP9k03~R00040T8tibgil-d
rbetsvegla president Reaganandinz
! droPdv? ?
But such a meeting would haVezotY .
!pass the current-stalemate in armi ?
The- talks Aiwa-been:leen
deadlocked. tbroughout thiikeagai:t Ad- 1
mirdstration. -
Approved For Release 2oopaimipciEkcmgri -?or R00040
June 2 9 8 3
0080001-8
Mr. Casey Serves Two Masters
?ks;iirector of the CIA, William J. Casey is a
verylbusystodltbrokl.T.
?.;41ficcording to a financial tlisclosurestate-
meth. for 198Z Mr. Casey .bought .and sold
millions of dollars of stock in the course of the
year. DO doubt fea.thering his nest nicely for
the day he leaves his government' job. That's
the job -which the Senate intelligence COLD-
minte once said, in brilliantly deadpan lan-
guage, that Mr. Casey is "not unfit" to hold.
The report raises again the question of
the fitness of a CIA director continuing to
manage his own stocks through his financial
adviser, despite the fact that be is privy to an
sorts of secret information that could affect-
their value. Mr. Casey's two precedessors at
the CIA established a blind trust for their in-
vestments while in the office.
To rninirnire the appearance of conflict
of interest while Mr. Casey keeps his hand in
his financial affairs, the CIA established a
. complicated, high-level bureaucratic screen-
ing system to prevent Mr. Casey from getting
:into trouble.
But there is no justification whatever for
putting the agency in the awkward position of
having to police its own director's financial
affairs. The CIA director should not be mak-
ing decisions for his agency, sometimes using
secret information about world economic
conditions, while also making decisions about
his own stock portfolio.
No screening system can erase the ap-
pearance that Mr.. Casey is using his highly
sensitive position in government ? however
obliquely, even unconsciously ? to advance
his personal fortune.
Mr. Casey ought to either put his invest-
ments in blind trust, or seriously consider de-
voting all his time to them. without the
distraction of CIA responsibilities.
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Approved For Release 200p1N1.-'631)clik6P794-uu trIrtiltrzfiMUOVUU
J une 1983
ARTICLE .
ON ?LC.: -7..8
CIA Director
The former director of the Central Intelligence Agency in
the:Carter administratioa,.,Adm. Stansfield Turner, says he
cannot :recall seeing information that would have been use-
ful-14r-private investment purposes. ?
- Nevertheless the extepsive_activiity ofl the stock market of
,the4cutlen.ttplA,director;_Villiam ?Casey, is .disturhing.
Caseys position, after tall, does make available .to him a
vast range of information, some of it secret. If this informa-!
. .
USD; 4S? ,not in fact useful in managing his investments, that
far:051'4ot evident to the public The suspicion persists that
:Ciikiiciuld take unfair.iidvantage:of .his position to 'feather
itis-nett:
.-Arty?Iprn.has been set up to screen Casey's transactions to
privent..him from making decisions that would create a
confiict-of interest. But this system is within the CIA and is
operated by Casey's subordinates ?.hardly the most satisfac-
torY;ariangement. _
It would be far better If the CIA director, like his immedi-
ate-predecessors, placed -his investments in a blind trust to
avold.i.he possibility ofa conflict of interest. The present
? situation is an ?obstadle to the CIA's efforts to gain public
corrficiente.
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ARTICLE IL
ON PILC2.
e
Approved For Release 200W/WRI:JWAIk15139414)01515#40Uki)386
4 June 1983
--g
CliS Director
The former director of the Central Intelligence Agency in
the.rier administration,.,Adm. Stansfield Turner, says he
caniof:recall seeing inforinatiop that would have been use-
ful-Ur:private investment purposes.
Nevertheless the extensive.activIty on the stock market of
."*Acuttentclk-director;.:Williani tafty; is..tlisturhing,
'position, :nfter '7'a, does 'make 'available to him a
vast range of information, some of it secret. If this inforrna-
?tiii0;IS?znot in fact useful in managing his investments, that
faitlfliot evident to.the-publie. The suspicion persists that
esiie?i'..,C'buid take unfair?.iailvantage.of .his position to feather
his-nest? )14-
A system.has been Set UP to screen Casey's ? transactions to
prixent....him from making decisions that would create a
confiict-of interest But this .system is -within the CIA and is
operated by Casey's subordinates :hardly the most satisfac-
tory;iiiingement? , .-
Itywculd be far better. if the CIA director, like his immedi-
atepredecessors, placed.,his investments in a blind trust to
avoid.rilie possibility of a conflict of interest The present
situation is an obstacle to the CIA's efforts to gain public
contidente.
1/A1
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ARTICLE APPEApoved For Release 2NE'1X19F? ?
r3june 9
ON PAGE ,0Y?
hDP91-00901R00040
8
C.I.A. Chief's Assets Studied
WASHINGTON, June 3 (Reuters) ?
! Senator Carl Levin said today that he
would propose a law requiring William
, J. Casey, Director of Central Intelli-
gence, to put his assets in a blind trust if
Mr. Casey did not do so voluntarily.
The Michigan Democrat made the
statement in a letter to President Rea-
gan.
Mr. Casey reported in a required
financial disclosure statement this
week that he bought 56 stocks this year,
many in August and September when
the stock market began its current rise.
? ? -
Senator Levin told Mr. Reagan a spe-
cial committee of the Central Intelli-
gence Agency, set up to screen Mr.
Casey's investments to prevent a con-
flict of interest, must have trouble keep-
ing abreast of his stock market invest-
ments.
"An even greater problem," Mr.
Levin said, is that "there is no provision
to prevent Mr. Casey from using infor-
mation he has obtained from his unique
position as director of C.I.A. to buy, or
sell stocks and securities for his per-
sonal gain."
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Approved For Release 2005/11/28 : CIA-RDP91-00901R0
SI-11 DIEGO TRIBUNE (CP_7
3 June 1983
00400080001-8
/CIA chief shouldn't play stock market
GOVERNMENT OFFICIALS :should not profit system is based on it. But there is something wrong
financially from their public positions. At any time with trading stocks on inside information gained
when there is a -.conflict of interest between. public from.employment by the government.
responsibiLity ..and private profit ,-the government As ZIA direcLor, Casey sees all kinds .of 'secret:
official should either gmt-the public_interest ftrs.t.tu.. ;documents :regarding ..ensitive Anegotiations and
. resign before reapins4he .privatereward. ..:rcontiracts.dhat 'could .anlauenerstocks:432yone cho
'Central Intelligence,: Agency.. Director ArZlikui.?:-..-lasAraded -43175tocks*DDTCS
Casey :has rele nciaLsta.ernentinafihn.is---'7erritylbef*herkluilii5tformntiaii,-Anniesi
:44.etzaded & urface asaiuncb?to
Casey SeCtiffitiesthat..stoCk.e-- ? " ?
andExchange-C?niissionzlietwasta4Vall treet herob1em.at munmurn, as the appearance ?of,
'lawyer. Be has thestockanarket nInsblood? -conflict -.1:d Interest "Casey's two immediate Trade-
;Last year, vallen4.he stock -market:began to znove cessors as =CIA -director Stansfield 'Turner and
upward, it would-have been lard for a man .who George Bush. put their portfolios in blind trusts.
followed the ticker tape by instinct not to buy .and Casey should follow their example or, if he prefers
sell. There is nothing wrong in making a profit; nur? to playtbe market, do so as a private -citizen.
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Approved For Release 2005/11/28 : CIA-RDP91-00901R00040
ART I CL3
. SHIN C T ON POST
ON PI=
3 tin e I98.-
-Urges Casey
t ol s m Trust
By orixr
SI
080001-8
SfAT
?
:*ind MO. .
..Meissrerngtor_ters'
1: Carl ;Levin -4D4tiliab.) 'ester--
ti-4Zilind-trOi.,c4335;ingtbit Casey's
hettv.31i iltradireiri-pthekfgnarket
1a"..-J:seii.creates,4be appearance of
kiiing public ciffice-for private,gain."
Levnwas-respondingthe -re-
!. 'lease ,of Casey's 1.94 financial udis-
dosure :statement, iwhic?t -showed
that Casey bought arid ;sola millions
kffdolIarinn stocks ,end other aecu-
it,es stock:mar. ,
4(et was beginning:a majoneclvance.
? '; -CaseyboughtS3.8 millionzz, Triore
than S7.8 million -.'istocks, :bonds
, ?and other securitiesitast year, selling
?off -other ;holdings to -invest heavily
electroni -and Airug stocks', some
Of which have increased significantly
:in value. H ?
Casey's longtime financial adviser,
Richard .Cheswick, said : yesterday
that he "had discretion to manage
[Casey's] investments without con-
sultation by;him."
in .a statement issued at -Casey's
..irequest, Cheswick, a member of a
Connecticut investment- firm, said,
? "There. have been no instances what-
ever during Mr. Casey's service as
director cf. the Central intelligence
...Agency that he has provided -rne
anr information or 'special an-
alyses Avhich -could be .used as an aid
making.these decisions.Cheswick
that,similaradvice was Szonsis-
-tently al)plied -tO our .other clients'
? portfolios . . :The stocks - - and
-bonds selected ns. were ?cieemed
? epprepriate for his family's invest-
.- ment,objectives."
. ,4evin told President Reagan in a
letter that unless Casey agrees to
place his holdings in a blind trust, as
:several senior, government officials
have -done, he will introduce legis-
lation to require Casey -to' -do so. A
blind .trust is an account that is
managed by an adviser without the
Investors knowledge.
A CIA spokesman has said that
two other CIA officials review
? Casey's investments and recommend
vihether. he should excuse himself
from any matters because of possible
conflicts of interests, but that such
advice would not be made public.
Levin questioned how the two of-
ficials would "know just what issues
might? affect a particular company,"
adding, It seems clear that the re-
peated stock transactions by Mr.
Casey while he receives information
on -an ongoing basis as director of
the CIA creates the appearance of
using public office for private gain.'
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61/Al
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LOS ANGELES TI1S (a)
3 June 2983
No:'Hi Road for Casey
:From the founding of the Republic, two attitudes
.aboutconduct in public office havecontested for the
souls of its Officeholders. Some public servants have
used public office to get -what they could while the
getting was good, and others have -held to the simple.
pri*ple that. Zhe lonor,cd.public*ervice should not
be -sullied :by,privatiancibitionjpitrate .business or
rpritatepicfit:7, ?
Slich tine points ksf acriiPukruS.Itebavior have
elbdet: -William J. Casey, -.director of central
intOrigence. . -
Casey, whose .positiori gives him-access to great
amounts of seCret j/i.f.oraiation on global economic
.trends, bought and sold .several Minion dollars
worth of stock in 1.982. President Reagan and
several Cabinet officers whose positions affect
economic policy put their holdings in blind trusts on
1g.office; so did Casey's two predecessors at the
Nct Casey.
0080001-8
Not required by law to establish a blind trust,
he announced that he would not, but would, rather,
Continue to oversee his investments, -and would
-rely on two Officials of the agency to prevent him
-from .making any decisions that would create a
Conflict .of ..interest vith his stock iioldings..That
- pecilliAnarrangement;raised the .possibility .-of his
being ,Tprevented by 'his private interests drom
Trialring decisions that be is paid by the people to
make.
Even if Casey got no more information through
the,g14?than any canny -investor could -get from a
close reading of -the newspapers '( and -who will
know?), the appearance of impropriety would
remain. As Commerce Secretary Malcolm -Baldrige,
another rich Man, said of his blind trust, "It's not
how I see it; its how ,others see it. In government,
you're held to a higher standard." It seems to be too
high for Mr. Casey.
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ST.. LOUIS POST-DISPA,TCE (MO)
3 June 1983
Private Gain From Public Post?
By ignoring the conflict of interest rule
followed by other senior Reagan
a6minictration officials, ClA .. Director. .
William Casey is continuing t?'-..o give .the
impression that he is using his government
position for personal gain. Unlike other top
officials and .unlike this irnmedine CIA
;predecessors, ?Mr. ,Casey .neither sold this.
stock .boldings or put 'them in a blind =rust
' when he assumed 'office ? although .he has
access to the government's most secret
economic data. In 1981 'Mr. Casey made a
. rofitable sale of more .$600,000 in
s..tor,
. at a time when CIA Teporrs indicated a
dropping oil market. Now it turns out that
Mr. Casey traded heavily in the bullish 1982
stock market that started in August.
Figures on Mr. Casey's stock transactions
were revealed in the financial disclosure
statement that he, like other top officials, is
required to file with the Office of
Government Ethim Last year he bought and
sold several million dollars worth of stock
and other securities .(the listing of exact
amounts is not required). Who knows
whether he profited from government
information that other investors didn't have?
The mere raising of the question is enough to
suggest why the CIA director should not -be
allowed to make his own rules.
After Mr. Casey was criticized for
disregarding conflictof interest standards, a
screening system ?was set up that was
supposed to separate his job -from his
investments. Under it, a committee made up
-of senior CIA officials was .to monitor Mr.
Casey's stock transactions and certain
designated officials would either exclude the
director from a policy decision that might
affect his investments or allow him to excuse
himself.. A member of the Senate Intelligence
Committee rightly labeled the scheme a "fig
leaf' that would do little except waste the
time of the officials involved. The latest
disclosure statement offers no assurance
that the fig leaf does any good.
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BALTIMORE SUN (C)
3 June 1983
I CIA OPERATION
BAY OF PIGS
ZURINAM
C41
.
WoviVIE VS,AW.SUALf.? //// /
? 4, Ar, 07)=7
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ART I Cal hr.'
..0 wA CTON POST
3 :June 19E3
y
STAT
0400080001-8
'THIS IS THE HOT LIRE ?iTS TO
HIS STOCK BROKERs*
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A p REPORTS,
For Release305/11/28 : CIA-RDP91-00901R000400080001-8
RADPI6
INC
4701 WILLARD AVENUE, CHEW CHASE, MARYLAND 20815 656-4068
KA PUBLIC AFFAIRS STAFF
PROGRAM The Today Show
DATE
SUBJECT
STAT
gnioN WRC-TV
NBC Network
June 3, 1983 7:15 AM ow Washington, DC
William Casey's Finances
JUDY WOODRUFF: In the CIA, the Director makes
millions on Wall Street that raises questions.
We'll look at those 'questions in a moment.
BRYANT GUMBEL: CIA Director William Casey made
millions on the stock market in 1982. This information was
revealed in his financial disclosure statement.
With me James Needham, former Chairman of the New York
Stock Exchange, and former SEC Commissioner. In Washington,
Howard Kurtz, the Washington Post reporter who broke the story
yesterday, and he has details of Casey's stock transactions.
So, let me start in Washington with you, Mr. Kurtz.
How much did Mr. Casey play, and how much did he make?
HOWARD KURTZ: Well, it's impossible to say exactly
how much the CIA Director earned on the stock maket, Bryant,
because the financial disclosure form, which I have here,
reports transactions only within broad ranges, which is the way
the Congress set it up. However, we do know that he was quite
an active player during 1982, making 136 separate transactions
buying and selling stocks and securities. He bought between
four and eight million dollars worth of stocks, and apparently
he invested quite shrewdly.
Appfoveci For Release 2005/11/28 : CIA-RDP91-00901R000400080001-8
OFFICES IN: WASHIN(510N D.L. ? NEW YORK ? LOS ANGELES ? CHICAGO ? DETROIT ? AND OTHER PRINCIPAL CITIES
Matertal supplied by Radio TV Reports, Inc. may be used for the and reference purposes only. It may not be reproduced. sold Or OlihriCIV Clerrnmtrotcarr or 1,(hilnitar!
Approved For Release 2005/11/28 : CIA-RDP91-00901R000400080001-8
2
GUMBEL: Howard, why was he allowed to keep his stocks
and play them rather than place them in a blind trust as so
many other Administration officials chose to?
KURTZ: Well, there's no law requiring Casey to place
his holdings in a blind trust, which -- which would put to rest
any questions about whether he is having access to information
in his sensitive position as the Intelligence Director, and he
has chosen not to do so.
Furthermore, the CIA, in departing from its usual "no
comment" stance, says that two senior officials are reviewing
his holdings and transactions to make sure there's no conflict
of interest. But we -- we, the general public, are not being
told what the results of that review are. So, the CIA is
saying trust us.
GUMBEL: Mr. Needham, the general public's not allowed
to trade on inside information. Do you think something's wrong
with what Mr. Casey is doing?
JAMES NEEDHAM: Well, based on the facts available to
me, and I poke last night with the General Counsel of the CIA,
Stanley (?), who is the former Chief Enforcement Officer
at the SEC, I'm not quite sure I understand what the fuss is
all about.
First of all, no one broke a story. The one you're
referring to appeared for the first on Wednesday in "USA
Today," and, secondly, I think I ought to mention that Mr.
Casey and I've been good friends for over 25 years.
GUMBEL: Don't you think some fuss should be brought
about as a result of a man who's in a sensitive position privy
to all the intelligence that he is privy to and is tradino in
the active manner that he is? Is that not trading on inside
information?
NEEDHAM: Well it depends on what you mean by fuss.
I think the press has a responsibility to examine these
publicly filed documents. That's one of the reasons why
they're filed. And if the press decides that they want to
inquire into them, I think that's part of their judgment, not
mine.
But, based on the facts that I've seen and -- the
comment was made that there was an ongoing investigation or an
inquiry at this time -- as I understand the procedure, Mr.
Casey had his assts in a blind trust, which he's now required
to do. And, incidentally, a blind trust doesn't assure anyone
of anything, because trustees can talk to the person who placed
the assets in the trust. And, secondly, Mr. Casey's transact-
ions were ?reported daily to the Office of the General
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3
Counsel of the CIA. A member of the staff would go through
that information and inform the division heads....
GUMBEL: Rut is that really an adequate safeguard when
you have your own subordinates going through your materials and
saying, "Hey, tell me when I'm wrong?"
NEEDHAM: Well, I am with the government now, and I
was with it for three years. And what you're suggesting is
that the career Civil Service employees are beholding to their
immediate supervisor, and I can assure you that they're more
loyal to the government of the United States than they are to
an particular individual.
GUMBEL: Mr. Kurtz, in Washington, Mr. Needham seems
to be willing to downplay most of this. What was the congress-
ional reaction?
KURTZ: Well, there's been some glances cast askance
on Capitol Hill, and all we have done in the Washington Post is
raise questions about this. And Senator Carl Levin has been
the most vocal critic. He says that the active trading, which
I should mention began last summer when the stock market took
off and Mr. Casey apparently was shrewd enough to be part of
that rise, raises the question, which we can't fully answer
because we don't have all the information, of whether Casey is
using his office for private gain.
And some of the drug company stocks, and electronic
stocks that Casey invested in have gone up as muah as 38
percent since last summer. Some of these companies have
subsidiaries all across the world, in places like Central
America, and the questions that are being asked in Washington,
which is a town that is very concerned with the appearance of
any conflict of interest, is whether or not it is unseemly for
the Director of the CIA to be such an active player on Wall
Street.
The joke around town now is that when Bill Casey
talks, Wall Street people listen.
GUMBEL: Final note, Mr. Needham. [Laughs]. Final
note. If what Mr. Casey did was not illegal, not unethical,
should he have been beyond reproach? Is this something the CIA
Director should be doing?
NEEDHAM: Well, you know, you're going to skip right
over some very interesting remarks made by this gentleman that
are totally inaccurate.
And all I can say is that the press has a right to
look at it, but I don't know what Bill Casey did that was
wrong. I think I would know.
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GUMBEL: James Needham, Howard Kurtz, in Washington,
thank you both.
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LR T I CLII
F14.Gil
ved For Release 20bVill C1ttIRDP91-00901R000400080001-8
3 June 1983
Canadian Fashion Takes
A Bow in Washington
By BERNADINE MORRIS
Special to The Nee; York TImes
WASHINGTON, June 2? "I didn't see a sequin
before I -came to Washington," said Sondra Gotlieb.
"I never thought about fashion ? in Ottawa everyone
always dressed down." ?
But when she came to live here with her husband,
Allan E. Gotlieb, Canada's Ambassador to the United
States, she discovered that "fashion designers play a
big role in social life ?we're always invited to parties
for Bill and Oscar." Canadian newspapers began to
criticize her for not dressing well enough, until she
turned up in a dress by Maggy Reeves, a custona de-
signer in Toronto. It was in wine and pearl-gray silk,
it had floating panels and everyone told her it was
sensational.
"We have designers in Canada too, but nobody
knows about them," she said. "I thought we might in-
troduce them."
She called her friend Beverley Rockett, who is
fashion and beauty editor of City Woman, a magazine
published in Toronto, and asked her to arrange a fash-
ion show. The presentation took place at the embassy
residence today. Miss Rockett made it clear that she, I
not the Government, was responsible for the selection;
of the clothes.
"I thought, why not do it big?" Mrs. Gotlieb re-
called. So she planned two shows, one for store buyers '
and the press at lunch, and another for social and
political Washington at a dinner-dance.
"We're calling it an extravaganza rather than a
fashion show, because we don't want to scare off the
men," she said.
Apparently she didn't. The guest list for the black-
tie evening, a sit-down dinner for 120 with dancing be-
fore and after the show, included William J. Casey,
Director of Central Intelligence; ben. Alexander M.
Haig Jr.; Charles Z. Wick, Director of the United
States Information Agency; Sargent Shriver, and
Gerald Rafshoon, a former assistant to President
Jimmy Carter, plus their wives. The 12 major design-
ers and several accessories designers were at both
shows.
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ARTICLE APPEARED: "Plpproved For Release 2005/11/28 : CIA-RDP91-00901R00040
ON PAGE .7,z- NEW YORK DAILY NEWS
3 June 1983
0080001-8
STAT
he:CIA' gold mine
s3-7 znillion and S7.3 million. 'It is
Ampossible? to tell -whether or Dot he.
=lade _a profit 'from these deals?but
aie -reported an :income, ? above his
government:sal/last year, ,of
7tween S.500,000 and S1 million.
Lars?Zlik
'course; the government --has
? =posed 'conflict-of-interest rules to
nestrict Casey's actions. Butthe rules
. .---a.:situation arises in iwhicli -!his
"---5-11211110=1=1111111111111111 "perianal -::.:financial -holdings !are
, Nelson -penalize thexavernment?not 'Casey.
? ?
? " affected, hels supposed to disc:gm-iffy.
.....it. ..... himself fronLtalang part in the gay-
/?
'till'g iirc:;.; iei'endl'n, 1:,*r S .` . ?ernment' deliberations 'His proper-
-Fu Manchu at the center of -u' comes itrst
afar-flung spicierweb of -public, pri- ''.??? A CIA spokesman yesterday
-quoted - ey's firtanical advi,ser,
vete and clandestine intelligence,
Cas
with advance access to virtaally Richard Cheswick, as saying that be
ane his decisions about Casey's
thing that can he 'Imcma: OPECnil-
stock .holdings . with no -advice or
production plans, impending African' - ?
special analysis from the CIA direc-
coups, looming banxite shortages,
potential Soviet crop failures, reli-
gious unrest in the Persian Git.Lf?
even a possible World -War III
Imagine -too that you have -the
security ,cif a high-paid government
job, and :thousands of confidentiAl
agents at your disposal. Imagine,
again, that you are perfectiy free to
use any and all .of 'this government-- -not by an -impartial outside agency
gathered inside informationfor your but .by two .of .-Casey's subordinates,
own gain . on the stock market_ .Deputy Director John McMahon. and
This dream, which -would make:- CIA General Counsel Stanley Spar-
many . drool with greed and envy, -is ?kin. Ironically, Sporkin was once
the daily reality _for William . Casey, chief of enforcement for the Secur-
director. of the Centhal Intelligence -dties.and 'Exchange Commission, and
Agency. For Casey, while serving as vigorously pursued corporate execu-
bead of the CIA., has been a heavy tives guilty of insider trading. ?
player in the stock market During Other -Reagan administration offi-
1982, according to a statement he has - dials are also millionaires with ad-
filed, he bought between $3.8 million vance access to confidential inform&
and'S7.8 million in stocks, bonds and..., titan.. Defense, .Secretary Caspar
other ? .securities. :pie sold -hetlyeen :,:Tieinberget, tor example, reports :.a
tor. Cheswick appeared to be clRim-
,ing that Casey haci effectively estab-
lished a 7blind :trust" for his hold-
ings, but -still the appearance .re-
'Main ed that ..the -nations top intPlli-
gente officer is able to profit tram
-Imowledge.
Possible conflicts are screened
-worth -between:S1.5 million and S1-9
?minion. Secretary of _State Shultz is
-worth between .= million and S3
million_ Both liaveaccess to the daily
-take" of the intelligence agencies.
-Both lmow where in the world it is
safe to invesn.and4where a prudent
husinessmaiaznightrcut back on his
holdings. ? ? -
-But the 'standard p' -
practice.
llred of all top government offi-
cials apart from _Casey, is that they .
either set .,up -a blind trust--so that ?
they have no Imowledge of how their
holdings are bought and sold?or
divest themselves -of .any property
that could conflict with their job.
-The standards for Casey were set
up by the CiA. last year, following
-disclosure that -he had unloaded
more than S&C)0.000 in oil stocks just
before the bottom fell out of the
market_ The CIA had been predicting,.
until 1981. that the Soviet Union
:would start to run out of oil in. the -
mid-1980s ? adding to worldwide
shortages and boosting prices.
B'UT IN 1g81, the CLA.changed its
mind. The Soviets are still ex-
porting oil, OPEC is in disar-
ray, there is a worldwide oil glut and -
prices -may sink .even further. Wil-
liam Casey is safely out of oil stocks.
.He has done nothing illegal.
According to CIA .spokesman Dale
Peterson, when Casey sees a possible
conflict of interest between his job
and his financial holdings, "If he
decides he wants to continue making
decisions in that area, he will sell the'
stock" If he'd -rather make the
money, he can simply take the day
? off: .
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Approved For Release 2005/11/Fakii1Offi:Ogi)R0
:?lune 8
Artc LE A7PpiPSO
ON PAU t
STAT
00400080001-8
CIA chief's investment policy
is defended
By Vernon A-Guitiry, Jr. ?
Washington Bureau of The Sun
Washington ? CIA Director William ..1 -Casey'
-hasn't given his private investment -counselors any-
informatiOL_ secret or otherwise, to guide their.
handling of his mane, according to.the
expert who has handled his investments for 20
-years.
The statement by Mr. Casey's.counselor. Rich-
ard Coeswick, was issued yesterday by the Central
Intelligence Agency itself, a day 'after the agency
released Mr. Casey's 1982 financial disclosure re,
,poin which listed stock and bond transactions worth.,
' hundreds of thousands ? perhaps reinions ? of.;.
dollars. Most of the transactions occurred last sum-
mer.
Mr. Cheswick said in the-statement:that he has
the authority to make changes in Mr. 'Casey's hold-
ings without. consultation and dOes-so-hased OD the
same information used on behalf of other clients.
"There have been ;Do instances whatever during
Mr. Casey's service is direetor of the Central Intel-
ligence Agency that be has providedme with any
information or special analyses which could be
used as an aid in making these decisions,- Mr.
Ctiwick's statement read.
Mr. Cheswick said the large stock sales of the
third quarter Of 19E2 were-made "to improve the
safety and diversification of the portfolio. Approxi-
mately 40 percent of the proceeds were-used to
purchase other stocks and 60 percent to buy bonds.
This activity- made for a large ? dollar value of
transact jonS but much of this simply reflected the
rolliagiver of temptirary short-term securities."
his? be-Jr allegedoleCsers
pare but- his conduct with respect to his large finan-
cial holdings has been a matter. of controversy:
When be took office, be declined to place his bold-
jugs in a "blind trust," which his Two predecessors,
Adm. Stansfield Turner and Geor?e Bush, had done.
Bis 1981 finaneial disclosure statement -showed
that he sold more than $600,000 in oil stocks. That
year, oil stock prices plummeted when a worldwide
oil glut developed. "
"-Critics at that time said that no matter bow in-
'I Docent Mr. Casey'sstock dealings had been, hestal
opened himself to the suspicion that be had been
using for personal CiliitrAigrellalltitiR4teeigelitilT15/11/28
as one of the few men in the nation privy to all U.S.
intelligeDce.
In response to the 1981 controversy, the CIA es-
tablished a screening process for Mr. Casey's hold-
ings.'A.t the time. the CIA's general counsel,-Stanley
Sporkin, -told reporters: "I'm not going to let-him
get himself into trouble."
? In practice, however, the screening process examines only instances in which CIA financial deal-
ings, such as contracts, might involve a conflict
with Mr. Casey's holdings.
According to Kathryn Riedel. an agency spokes-
woman. lists of Mr. Casey's holdings are circulated
to CIA officials. When they spot a potential conflict
? most typically a contract about to be awarded to
a firm in which Mr. Casey has an interest ? they
notify Mr. Sporkin and John McMahon. the CIA's
? deputy director.
These two then decide whether the matter is of
sufficient import to be brought to Mr. Casey's at-
tention. If it is, .she said, be can decide whether to
recuse himself from consideration. .
The CIA declined to say when, or even whether,
the screening process had been put into practice.
Ms. Riedel said she could say only that the sys-
tem was "fully implemented and serving its intend-
ed purpose."
A 1981 Senate Intelligence Committee investiga-
tion of Mr. Casey's financial disclosures found that
be was "at a minimum inattentive to detail."
The investigation found that in reporting to the
committee on his business and financial dealings,
be neglected to mention nine investments valued at
more than $250,000, personal .debts and liabilities
of nearly $500,000, a number of. corporations or -
foundations on whose boards he -served, four ciVil
suits in which be was involved and more than 70
clients be had represented in private practice, in- -
eluding the South Korean and Indonesian govern-
merits.
At the White House, a spokesman said Mr.
Casey's current practices had been-approved by the
appropriate agencies.
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(---
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ARTI .L.:_AE 17
1?11:L"
WASHINGTON POST
2 JUNE 1983
00400080001-8
Casey Traded Heavily in Sipe is in
By Howard Kurtz
and Mary Thornton
tvashirigton Post Stan Writers
CIA Director William J. Casey
bought and sold millions of dollars
in stocks and other -securities last
summer as the stock .market was
beginning a major advance, accord-
ing to his financial disclosure state-
ment. ..
In. a 26-day period from Aug. 26
- to Sept. 20. Casey bought from $1.5
million to more than $2.2 niillion in
stocks and other securities, partie- '
ula:rly in electronics and drug. corn-
panies.
Casey's heavy trading coincided
with a broad advance in the Dow
Jones Industrial AVerage, which
stood at 892'on Aug. 26, peaked at
1,232 in early May and -was at 1.202
yesterday.
While it is virtually impossible to
gauge the profit or loss of Casey's
? extensive transactions during 1982,
an examination of three of the stocks
in which he made sizable invest-
ments shows that they have in-
creased in value by 16 to 38 percent
since August.
If Casey still owns the three
stocks, he apparently would have
paper profit of between $104,000
and $250.000. ?
Casey has declined to place his
financial holdings in a blind trust
' voltintarily, as many -other senior
? government officials have done, in-
cluding President Reagan, Vice Pres-
, ident Bush and Treasury Secretary
-Donald T. Regan.
? Instead, CIA spokesman Dale Pe-
terson said, Deputy Director. -John
McMahon and general counsel Stan-
ley Sporkin review all of Casey's fi-
nancial transactions to determine
whether there is any conflict be-
tween his private holdings and his
public role as the nation's chief in-
telligence officer. ?
If the two find such a conflict,
? Peterson said, they will advise Casey
to disqualify himself from decision.
Approved For
1
making on matters that could affect the value of
his holdings. -
,Peterson called the arrangement "the director's
.ineans of _assuring there would be no conflict of
interest," but he would -not disclose whether
McMahon, and -Sporkin had found conflicts An
Gasey's financial dealings. He said the information
would be available upon request to. congressional
oversight committees.- ?
The new policy was adopted last year after
Casey's previous financial disclosure statement
showed that he had sold more than $600,000 in oil
company stocks during 1981 as a glut developed
in World oil markets.
"The system' that was set up [last year] is func-
tiOning and will remain the -way it is,". Peterson
said. 'There is no season under the law?why
ICaseY] has to put 'his finances into a blind trust."
He added that the investment decisions generally
.aie made by Casey's private financial adviser,
Richard Cheswick.
:Congressional staff members said they are not
:aware of .any findings by-the-CIA officials review-
iiig
.Casey's transactions. "While some of our mem-
hers:don't like the way Casey does business, he is
,free to buy and sell anything he wants." an official
.With, the Senate Select Committee on Intelligence
, Several of the drug companies in which Casey
bought substantial amounts of stock?including
Abbott Laboratories, Bristol-Myers, Merck -and
Co.,..Johnson & Johnson and Pfizer Inc.?have
.foreign subsidiaries, including several in Central
,America. Abbott, for example, has subsidiaries in
El Salvador, Argentina, Chile, Venezuela, Guate-
pale and Mexico.
Casey also bought considerable stock in elec-
-tronics firms such as Digital Equipment Corp. and
,MCI Communications Corp.
Casey apparently financed his purchases last
summer by selling off large amounts of Treasury
bills and oil-company stocks, although he contin-
ued to buy lesser amounts :of Treasury securities
.throughout the year. For all of 1982, he bought
from $3.8 million to more than $7.8 million worth
of stocks, securities, bonds and Treasury bills,
?while -selling holdings worth from $3.7 million to
more.than $7.3 million.
While Casey may have lost money on some'
stocks, three of his larger investments have done
well. From Aug. 26 to last Tuesday, for example)
Abbott-stock rose from 333/4 to 433/8 a share, an
Increase of 30 percent; Digital increased from
WI 40 111 ,or 38 percent, and Merck rose
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Approved For Release 2005/11PASPGYMIDPVIE1?6901R0004
3 June 1983
WASHINGTON
CASEY INVESTMENTS
Sen. Carl Levin, D-Mich., today urged President Reagan to require William J.
Casey to set up a blind trust to avoid the appearance of impropriety in the
CIA director's stock dealings.
"It seems clear that the repeated stock transactions by Mr. Casey while he
receives information on an on-going basis as director of the CIA creates the
appearance of using public office for public gain," Levin said in a letter to
Reagan,
Levin, senior Democrat on a Senate subcommittee with 5uri5diction over
government ethics, said while there is no' evidence that Casey used CIA
information to decide what stocks to buy or sell, "there is also no specific
evidence at this time that he did not."
If Reagan and Casey decline to set up a blind trust in which Casey would not
know how his investments were handled, Levin said he would introduce legislation ;
to force him to do 50.
At issue are transactions reported in required financial disclosure
statements made public by senior government officials this week.
On Thursday, Casey's chief financial adviser said the CIA chief received no
special treatment.
The adviser, identified by the Central Intelligence Agency as Richard
Cheswick, said in a statement that he had made changes in Casey's accounts of a
nature "consistently applied to our other clients' portfolios."
Casey's financial disclosure form, made public on Tuesday, showed that he had
traded millions of dollars in securities as the bull market in stocks got
started in the last half of 1982.
. The CIA refused to answer questions Tuesday about the report. On Thursday,
the CIA issued a rare statement, in Cheswick's name, which spokesman Dale
Peterson said Casey had cleared for release. Peterson said he could answer no
questions about the statement.
"There have been no instances whatsoever during Mr. Casey's service as
director of the CIA that he has provided me with any information or special
analyses which could be used as an aid in making these decisions," the statement
said.
During 1982, Casey bought stock and other securities worth between $1.9
million and $4.5 million, according to his disclosure form.
Cheswick said much of the trading activity was the result of rolling over
short-term securities bought with the proceeds of a single sale of security that
Casey had held for more than 30 years. He did not identifiy that security.
CONTINUED
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gag? ,
Casey is the only senior member of the Reagan administration not to put his
holdings in a blind trust, that is, a trust in which the trustee must make
investment decisions without reference to the beneficiary.
The CIA said last year tha a group of senior officials reviews Casey's
stock transactions for possible conflict of interest. That review panel was
established after Casey's disclosure fort showed he had sold $600,000 in oil
stocks in 1981 as a glut developed in the 'world oil market.
Peterson said he did not know where Cheswick lived or the name of his firm,
but believed it was in Connecticut.
There was no listing for Cheswick in immediately available telephone books
for Connecticut consulted in Hartford. Those books included listings for
Fairfield County near New York City, where many people involved in finance liLie
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r7irkpp
OK FAG
proved For Release 2005/1i4)`12#9tliAl:01513b11166401R0
2 June 1983
DI I
400080001-8
?The fine art of spying
-was quoted as -saying he did not believe the CIA ought to engage in.
, _ activity over against
,,..;
any covert operations. Taxed as to
?ran-ant of public exposure Of that
activity. He concluded that the latter exceeded the former, and that there-
.
had to - weigh the value of covert
embarrass-
for an agency to keep secrets, and
that under the circumstances one
. exactly why he thought this, he
?,
answered that it was simply not
There should bi.no covert activity if
possible, in a political democracy,
HLINE: '. -"CASEY ASKS -.lore there should be no covert activ-
EAD
PANEL: WHO SAID THE ity. To which Machiavelli might add:
CIA. LIES'?" William Casey,
the director of -the Central Intelli-., there there Is _ any reasonable
gence Agency, can be a very cool cat,. 4:possibility that it will be exposed.
but occasionally his Irish is dan,-...-That is to say something a -little bit
dered, and the other day it was. A
William F.
Buckley Jr.
member of a congressional commit-..
tee was anonymously quoted as -
saying, apparently with resignation,
"The CIA lies to us anyway." This
drew from Director Casey a corn-,
munication that is scorching by the
standards governing exchanges - be-
tween executive agencies and con-
gressional committees. What Mr.
Casey wrote, one-half gut-anger, one-
half euphemism, was:
"While I have less than complete
confidence in the accuracy of press
reporting, that comment has
offended our entire organization and
impugns the integrity of our fine
employes: In obligation to them I
feel that I must pursue its accuracy.
' The possibility that any committee
member harbors the thought that
CIA lies to the committee is so
? appalling that I feel obliged to deter-
_ mine if any member of the committee
actually feels that way and, if so, to
seek the particulars. The confidence
between the agency and the commit-
tee -essential to make the oversight
process work requires that any such
impression be addressed."
A few years ago, George Kennan
different from what Mr. Kennan was
saying, but that difference is vital.
In the past seven or eight years I
have written five spy novels in the
course of which 1 have attempted to
conjugate a theme. Not a mysterious
theme, but not one that is entirely
easy to expound. It is this, that the
counterespionage,discipline is some-
times the transaction not of a law,
but rather of an art. I mean by this
that there is written into the inexpli-
cit mandate of an intelligence
organization an ambivalence that
simply can't be wrung out by the
conventional processes that go into
the codification of most of a free
._ society's laws. .
Let us take a .hypothetical situa-
tion. Our CIA agents in Uganda smell
something big. Very big. An atom
bomb. Never mind for the moment
how Idi Amin got an atom bomb, but
there it is, about the size of the
Hireshima bomb. What in the' name
of God does he propose to do with it?
Well, he intends, -exactly three hours'
'from now, to dispatch a plane_from
his little air force and drop the bomb
..:over Jerusalem, in retaliation against
01111111k
the Israelis' Entebbe raid. Idi Amin is
scheduled to go to the air base
personally to wave off the bomber on
a mission that will mean the ex-
termination -of an entire city and not
inconceivably the beginning of a
third world war. The mission could
be aborted by a sniper who, properly
'situated, can end the career of this
madman before his bomber takes off.
But isn't assassination -wrong?
Yes,- assassination is -wrong. But
can't one say that assassination is
wrong, but that there -are ?worse
things than - assassinations? Like
death for a quarter million people,
and perhaps-a war? ?
Yes, one can say that.
Question: Is there-machinery that
can act nn such a moral calculus?
Answer: Depends. Depends on the
built-in resiliency of the appropriate
mechanisms.
Sir: Are you saying that the CIA is
entitled to lie* to a congressional
committee?
NO, I AM NOT. I am saying that
there are worse things imagin-
able than the -CIA lying to a
congressional committee.
? Do you doubt that Mr. Casey is
telling the truth when he insists that
the CIA does not lie to congressional
committee's?
No, sin not saying anything of
the sort.
What then are you saying?
I am saying that circumstances
hypothetically exist in which the di-
rector of the CIA would need to
choose between 1) lying, or b) expos-
ing a deed the exposure of which
runs a risk of collapsing a vital organ
of a free society, and that the prudent
way of steering clear of such schema-
tic- collision courses is for both par-
ties to just cool it; just don't talk
about it; just let it go.
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Approved For Release 2oi1isig4T?1403PER1-00901R000400080001-8
Office of the Press Secre.
PRESS BRIEFING
BY
LARRY SPEAKES
June 2, 1983
The Briefing Room
12:33 P.M. EDT
INDEX
SUBJECT
ANNOUNCEMENTS
PAGE
Presidential Personnel 1
Presidential Schedule 1
FOREIGN
Visit of Ivory Coast President 1-2
U.S. Medical Team in El Salvador 2-21
DOMESTIC
William Casey 19-20
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MR. SPEAKES: Pat?
? Do you expect stepped-up military activity on the
?
part of the Salvadoran government, and is that one factor in sending
these --
MR. SPEAKES: Pat, I do not know.
? You've talked about -- the President has always
said he was not going to send combat troops to El Salvador, he had
no plans to or do not need it -- what about groups that are not, in
sort of an offshoot of what Mike was asking, that are not necessarily
a rifle battalion, but Seabees, motorpools
MR. SPEAKES: Bob, I don't know the specifics or any
plans for --
? Don't know of any plans like that --
MR. SPEAKES: I do not know.
Bob?
? Larry, getting back to the killing of our own guy.
Is the timing of this in any way to demonstrate our increased resolve?
before then.
MR. SPEAKES: No. This has been well underway since
? No connections at all?
MR. SPEAKES: No connection.
Bob? Yes, I'm trying to.
? Casey.
? Casey Jones --
MR. SPEAKES: You're going to be disappointed when I
ccet there. (Laughter.) Let me get Bob back there.
-- let me be disappointed right now then.
? Did Casey's broker know what he was saying, could
he understand him, or did he just get lucky. (Laughter.)
MR. SPEAKES: How does he know when he said "buy or sell"?
(Laughter.) -- had to do with Casey.
Bob?
? According to the New York Times, there are two
Supreme Court decisions, one in 1935, one in 1958 that say that -- says
that the President cannot legally remove members of the U.S. Civil
Rights Commission. My question is, was this research -- was the
legality researched in the White House? If so, who did it? And, what
was the finding?
MR. SPEAKES: Hand me Casey -- I don't know what I did
with it. I would check with -- I got it. I would check with the
Department of Justice on that.
Casey. Mr. Casey's financial arrangements were probed
in 1981 by the Senate and by the Office of Government Ethics and by
ethics officials at the Central Intelligence Agency.
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Approved For Release 2005/11/28 : CIAffP91-00901R000400080001-8
Last year the CIA, with the approval of the Office of
Government Ethics, added a screening-spanel to further protect against
inadvertent conflicts of interest --
? Against any --
MR. SPEAKES: Against inadvertent conflicts of interest
in Mr. Casey's stock transactions. The White House does not become
involved in any review of Mr. Casey's transactions.
interest --
? Sell Air America.
? Has there been any new review of conflicts of
MR. SPEAKES: No.
-- inadvertent, or otherwise?
MR. SPEAKES: Not at the White House. You'd have to
check the Office of Government Ethics to see if there have been any
how they operate, how the ethics officer at the CIA operates.
? Can I ask a question?
MR. SPEAKES: Yes, Butch.
? How about the appearances here? How're you doing
how about the question of appearances?
MR. SPEAKES: I can't pass a judgment on that, but the
point is that he's been approved by the appropriate agency -- the
way he does business has been approved by the appropriate agencies, so --
? Hey Mort --
? Why are you locking William Casey in such a firm
embrace? (Laughter.)
MR. SPEAKES: You found out anything? You may speak.
? Mort's got natural sidearms. (Laughter.)
MR. ALLIN: The unit is expected to operate, for the
most part, in San Salvador. They are not expected to have sidearms
or 91sto1s there; however, as Mr. Timberg Pointed out, that when they
are out in the country, if the Ambassador were to determine it were
necessary, they could certainly carry sidearms and pistols -- pistols
for self-defense purposes. But, it is not anticipated that they will
do so, while they're in, at least in the San Salvador area. And the
rest would be up to the Ambassador and his rules whether they're --
? So the Ambassador could send them out?
MR. ALLIN: They will -- they could be doing some
assessment of conditions elsewhere, but not in combat zones. It will
be the same rules that are in practice for the other, for the military
trainers who are there.
? When will they arrive?
MR. SPEAKES: That hasn't been determined. Check DOD
for specific schedules.
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Approved For Release 2005/11/28 CIA-RDP91-00901R00 rmson?1-8
COI,NERCIAL APPEAL (TN,"
2 June 3.983
Assigh'thent. (Memphis
g,s0,-cpuld Serve By Sharing
Market Secrets
?
By LYDEL siks
The world being whatitis,some-,-;
people are sure to get hot -under-,
the collar about the _n.e-ws..of WI
CaseYsiLeav-y4idegliriton
the stock market 7?
Casey.is director of thelUirl'he
CIA.kaows everything --:wrati?
most everything ? about the gov-
ernment's most secret economic:
.data...11.anything is about to hap-
pen anywhere that might .affect
the stock market, Casey is likely
to know about it.
Sc, these chronic complainers
are going to say, he shouldn't be
allowed to buy and sell stocks for
personal gain while he holds his
office.
But he is. And a good thing. too,
in my book.
WORD ABOUT THE dealing
came from his own financial dAs-
-closure form, which was released
the other day.
Last year, it showed, Casey had
great confidence in the American ?
economy, or at least parts of it. He
bought stock worth from S1.9 mil-
lion to S4.5 trillion, valued-at the
date of purchase.
We can all feel encouraged by
that, can't we?
On the other hand, he showed
less confidence in some portions
of the American economy, selling
stock worth from Si million -ao
possiblymore than 52.1 million. It
might be helpful to.know wlaat he
bought and wlaatlie sold, but then
we can't .have everything.
Casey didn't make these -deals
all by himself, you understand.
Day-to-day management of his
portfolio is in the hands of a ph-
2. GuARANTEED
INSa+E -
INFORmATIoN -?
- -
?26r.d.
? .17to,k
The 7,
'STOCK
WRITS-
-46eLci
vate investment adviser, but I sup-
pose they do talk from time to
time.
.A.11.i.n..a11,-it strikes me as a sign
of a growing economy from a very
high source indeed. And if it gives
all of us a surge of .optimicii., sure-
ly we aren't going to complain If
he happens to make a few dollars
on his deals.
_ _
COMPLAINTS WELL COME, all
the same, Critics will point out
' _that his two predecessors in the
top CIA job put their own port.
folios into blind trusts.
But any impartial observer will
have to admit precautions have
. been taken.
Those precautions were set into
: effect after last year's disclosure
? form, which -showed Casey sold
; more than .S600,000 in oil stocksas
a glut was developing in world
markets.:Zo 2he CIA itself, ever
vigilantao avoid even the .appear-
ance of :impropriety, set up a
"screening arrangement" for
Casey.
Underitsprovisions, certain of-
:ficials now-review his stock trans-
actions regularly for possible con-
flicts of interest.
And who are these officials? Ca-
sey's deputy director and other
subordinates in the CIA, that's
who. they can't be counted on to
-police their own boss, I don't
,ciw who can.
IN FACT, IT might help the
country if the whole thing were
allowed to go a step further.
Think how we all could benefit if
Casey himself started publishing,
a weekly market guide for inves-
tors in his spare time.
That's not likely to happen. But.
meanwhile, consider what a great
slogan the situation offers for CIA
recruiters.
Remember the Navy's great old
pall, "Join the Navy and see the
wqrld"?
Row about -Join the CL4, and
play the stock market"?
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Approve
or e ase 2005/11/28 : VI5FbP91-0090 0004
2 June 1983
80001-8
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ase 2005/11/28 : CIA-RDP91-00901R000400080001-8
Approved For Release 2005/11/28 : CIA-RDP91-00901R000400080
FEw .10-L7RNAL-COI7RIER (CT)
2 June 1963
Casey continues trading
The heavy stock trading by 0,1:A....Director William J. Casey is
open to questionind. ft has been spotlighted in the financial disclo-
sure forms filed by Casey, along with other government officials.
And eyebrows are being. raised since the CIA director is privy to
government secrets that can give him an advantage ? and possi-
bly influence his judgment in matters of public interest..
Release of Casey's disclosures 'torn last year showed how he
can take advantage of confidential information he pets in his sensi-
tive post. He sold .more than S600,000 in oil stock as a 'glut de-
veloped in the world markets in 1981. So the CIA set up a .
"screening arrangement" with the aim of preventing him from tak-
ing official .actions for personal pain. The new system permitted
him to continue buying and selling stook, but required that the
deputy CIA director and other senior officials of tne agency review
his stock transactions regularly for possible conflicts of interes'..
The arrangement acknowledged the problem, but doesn't 'seem
tight enough to win the confidence of the public. Casey's two pre-
decessors in the CIA post did what was necessary to win such
confidence as did other top Reagan administration officials with
access to similar confidential economic data:They placed their
extensive stock portfolio into a blind trust or sold off stook as
COndltiOn of employment. Casey not only refuses to do this but
doubled the number of his transactions in 1982 compared with the
previous year.
1/A1
001-8
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3
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Ann= irrra.lz;..,)
rAiss -
PlION11?0?1?????????
Casey Traded
Heavily in Stock
CIA Chief Has Access to
Global Economic Secrets
By WILLIAM J. EATON
and ROBERT L. JACKSON,
Times Staff 'Writers
WASHINGTON?Central Intelli -
gence Director 'William J. Casey,
whose position gives him access to a
vast range of secret information on
global econornic.trends, bought and
sold millions of- dollars worth of
stock in 1982, according to his
financial disclosure statement.
C-asey bought securities worth at
least $1.9 million and perhaps as
much as $4.5 million in 61 firms last
year, including stock in the oil,
computer, airline and -drug indus-
tries, the report indicated_ He sold
stock worth at least $1 million and
possibly as much as $2.1 -million in
30 firms in 1982.
Including purchases and sales of
Treasury securities, the CIA -direc;-
tor engaged in 136 transactions last
year, compared with 67 transactions
in 1981.
It is not possible to pinpoint the
exact amount of stock that Casey
bought and sold, because the re-
porting form used by the Office of
Government Ethics lists stock val-
ues and other transactions only in
broad -categories, such as ranges of
$50,000 to $100,000. Casey's state--
LCS ANGELES TI1VES
2. Tune 1983
? nierdiiiireleasedit?uesday. .
_ Casey ,Amlike his two immediate predecessors at the
tIA,?prefers to retain control over his own investments
rather than -establish a blind trust President Reagan
? and, several Cabinet members in the economic poli-
cy-making field .pat their investments in blind trusts
when they took office.
'For-example, CommerceSecretary Malcolm Baldrige
said he Iciecided to remove his Investments from his
personal ?control and place them in a blind trust to avoid
eventheappearance of any conflict of interest.
"It'snot Mow I see it; it's how others -see it," Baldrige
told a reporter. "In government, you're held to a higher
-standard,;''
. s-tasey 4ong been heavily Involved in securities
-transactions. :During his -confirmation hearing; he
thsclosedAhat lie bolds :a ? vast 'portfolio and said he
intended-to *maintain control -over it while- serving-as
CIA director. :
:?'CLA-spokesman Dale Peterson said Wednesday that
twonopagency ,officials screen Casey's transactions to
prevent'llirn -from tmaking -any '? decisions' that would
reateeconflict f interest with-his stock holdings.
? Dats-Givea Only to Congress
?'When -asked if Casey had disqualified himself from
any iCIA-;decisions result of this ? arrangement.
Petenson, said, "We would not 'comment on that." Such
.information, 'be- added, is available only to theSenate
and House intelligence committees, which monitor CIA
siCtivities;
'Phe screeningsystem was established May 28. 1982,
after"Casers disclosure report-for 1981 indicated that he
Solchnore -than 1600,000 'worth or stocks when oil
priceSplunged that year because ;of a worldwide glut.
? Caserisone of a-relatively small number of U.S. officials
Who ---have access to CIA estimates for world oil
prodtictionand sales. - ' ? ? "
CaSey's -two immediate 'predecessors at the CIA?
' 'Sta.nt fielt Turner and George 'Bush?both placed their
ifivestritents in blind`trustS.So have Secretary of State
GeorgeT:ShultzTreasury Secretary Donald T. Regan
and William E.-Brock, the U.S. special trade representa-
"There is no 'law or regulation that requires him
;Casey)'to Put his holdings into a blind trust?Peterson
' ' ? .
'CaSey has afinancial' viser *he makes the decisions
to buYn:ir ;sell, but the CIA director is aware of 'them,
_Peterson added. screening arrangement," he said,
"aistireethatthere?willberib conflict Of interest:"
Dozen' ? Have Blind Trusts -
-Robert "Flynn, assistant director of --the OffiCe cif
Government Ethics, - which receives the financial .re-
portsnsaid,"Very 'few people have-blind trusts?maybe
?adozen'in this'Adthinistration:"? ?? -
'.Casey's report indicated that he bought stocks heavily
during the early days of the bull market last August, On
Ang:26; he acquired eight Stocks worth .at least $285,000
'and pcistibly as much as $700,000. His statement Showed
thebe'!bought-at 4east-$750,D00 worth of J.S. Treasury
-bills live days' later 'but 'apparently sold them in late
Septemberto finance a purchase of more stock.
?- Casief 'bought stock in Hewlett Packard, a major
-defente ;contractor, 'at--well -a in -such companies as
Approved For Release 200
IMV?
. ?
Ile
? NS
Alls:1
AbbottLaboratories, Bristol-Myers and Merck.
e-
CHICAGO TRIBUNE
2 June 1983
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.,TrIE APPEARED
ON PAGE
William Casiijf
dii?
reports big
eals
From Chicago Tribune Whoa
WASHINGTON Central Intelli-
gence Agency Director William J.
Casey, who has access to thegovern-
ment's most secret economic data,
traded heavily in the stock market
last year, buying and selling several
million dollars worth of stocks and
other securities, according to 'his :fi..
nancialdisclosure form released
Tuesday. ? ;,,?
According to the form, Casey
bought stock worth from $1.9 million
to $4.5 million, valued at the dates of
purchase, while selling stock worth
at least $1 million andpossibly?more
than $2.1 million. Casey apparently
financed his stock purchases by.sell-
ing U.S. Treasury bills, the -form
showed. i
Exact amounts :for his investments
were impossible to*determine be-
cause government- disclosure forms
list the values within broad ranges.
Unlike his two CIA predecessors.
and otherlop.Reagan administration
officials ?with,access to similar con-
fidential economic data, Casey did
not put extensive stock portfolio
into trult,or any stock_as..
wwnvism gpse ZUUW11/28 : CIA-RDP91
a c
STAT
0400080001-8
FOLLOWING RELEASE of last
year's -disclosure form, which
showed Casey selling more than
$600,000 in oil stocks as a glut devel-
oped in world Markets, the CIA es-
tablished a "screening ar-
rangement" aimed at preventing
him from taking official actions for
personal gain.. ? 4- ,
The new system permitted
to continue buying and selling stock,
but required that deputy CIA,xlirec-,
tor John *McMahon and other senior
CIA officials regularly review
Casey's stock transactions for -,possi--
ble conflicts of interest.
Asked .whether that screening ar-
rangement had been triggered byl,
any, of ?Casey's transactions, 'CIA
press aide Kathtyn Riedel said,
"The arrangement is ?fully,. im-
plemented_ and _serving its intended
purpose." She _refused 'further,mom-
ment on the prilicedittre.41'
The form shows that Casey
dropped most of his remaining4h012.,
dings in the oil industry last-,year:'
stock which just two years ago &int- 7
noted his portfolio. Many of Casey's
new purchases :Avere in computers,-
electronics, drug manufacturing,.
restaurant and hotel chains and
air-
lines. ? . -
CASEY BOUGHT large amounts of
shares in such firms as Abbott Labo-
ratories, Bristol-Myers Corp.
Johnson
? Johnson & Johnson Corp., Digital
Equipment Corp. and Schlumberger
Ltd., all firms with extensive inter-
national operations.
During 1982, Casey Sold U.S. Trea-
sury' securities worth at least $2.4
million And possibly more than $3:7
n while buying federal obliga-
ti? orth at least $1.3 million and
posy more than $2.1 million.
ncial disclosure statements
al owed that two of President
Re n's top economic officials--
Trs-ury Secretary Donald Regan
andqvCommerce Secretary Malcolm
Ba e---made More in outside, in- -
co n they did from their go-
ent jobs m 1982.
ever, their incomes were con-
aid bly lower \ than in 1981, when
bot ere still receiving substantial
pa ts from former employers.
?
STATEMENTS also showed a
nge from 1 1 for Agriculture
John Block, whose liabili-
,ti ? ew by at least 40 percent since
his t report.*%, ?
same time, the value of
Bl. P. S assets, primarily in his Illi-
corn and soybean farm and
oth real estate holdings, have re-
ma Stable ranging from $3 mil-
li 13.8 million.
k's liabilities- ranged in value
.1 million to $9.9 million at --
the -of 1982, two to three times
the ue of his assets. At the end of
198 showed liabilities of 15 mil- -
-Oh 46.8 million. -14
000400080004
Approved For Release 2005/11/28 : CIA-RDP91-00901R0004
.ARTIOLS
on FAXI
WASHINGTON TIMES
2 JUNE 1983
CIA's dh?ector
during bullish
Associated Press
iwA Director William J. Casey,
whb sees the government's most
seret economic data, traded heav-
ily in last year's-bullish stock mar-
ket, buying and selling several mil-
lion dollars worth of stocks ,and
other securities, according to his
financial disclosure statement.
Casey joined' thousands of other
investors in buying large amounts
of stock in the weeks after the
major bull Tally started in mid-
August, his annual statement
-shows, On one day alone, Aug. 26,
Casey bought stock in eight com-
panies with the purchases totaling
from $335,000 to $765,000.
All 'told, in 1982 Casey bought
, stock worth from $1.9 million to
$4.5 million ?much,in the electron-
ics and drug industries ? while .
selling stock worth at least $1 mil-
lion and possibly more than $2.1
million, the form showed.
? He apparently financed his stock
purchases by selling off large
amounts of U.S. Treasury bills.
Exact amounts for his sales and
purchases were impossible to
determine because -government
disclosure forms list values within
broad ranges.
Unlike his two CIA predecessors
and other top Reagan administra-
tion officials with access to similar!
confidential economic data, Casey
did not put his extensive stock port-
folio into a blind trust or sell any
stock as a condition of employment.
But following release of Casey's
disclosure form last year, which
showed he had, sold more than
$600,000 in oil stock as a glut devel-
oped in world markets in 1981, the
CIA established a "screening ar-
rangement" aimed at preventing
him from taking official actions for
personal gain.
The new system permitted Casey
STAT
00080001-8
ra ed millions
,82 market rise
arket
to continue buying and selling stock
but required that deputy director
John, McMahon and other senior
CIA officials regularly review.
Casey'? stock transactions for pos-
sible conflicts of interest.
Asked whether that screening
arrangement bad been set in
motion by any of Casey's 1982
transactions, CIA spokeswoman
Kathryn Riedel said, "The arrange-
ment is fully implemented and
serving its intended purpose."
Riedel Added that day-to-day
management of Casey's portfolio
remains in the hands of a private
investment adviser, Richard Ches-
wick, although Casey retains ulti-
mate control.
Disclosure forms for Casey and
many other high-ranking adminis-
tration officials were released
Thesday.
? Secretary of Labor Raymond
Donovan listed outside income of at
least $130,000, possibly as much as
$211,000. He had reported outside
income of at least $562,874 on last
year's form.
? U.S. Trade Representative Wil-
liam Brock made at least $51,000 in
addition to his government income
last year, nearly all of it from a blind
trust he aet up.
? Senior White House aides ac-
cepted cigars, airline travel, a clock
and a crystal ashtray as gifts during
1982.
According to the disclosure
form, Casey doubled his number of
transactions in 1982 compared. with
1981. He listed 136 sales and--pur-
chases last year and 67 transactions
his first year in office.
Some of pharmaceutical firms
that Casey bought stock in ---
Abbott Laboratories, Bristol-Myers
and Johnson &Johnson = have sub-
sidiaries in Central America, an
area where the CIA has taken an
increasing interest and is conduct-
ing clandestine activities aimed at
countering leftist revolution.
The form shows that Casey and
his wife earned at least $478,600
and possibly more than $959,600 in
outside income in 1982,. mostly
from dividends and capital gains on
their investments. As a -Cabinet-
level official, Casey also receives
Approved For Release 2005/1fgic:m36744d'Oa-ob901R000400080001-8
Charles E. Wilson
Chief, Public Affairs
Approved For Release 2005/11/28
Central Intelligence Agency
Washington, D.C. 20505
[phone]
2 June 1983
FYI, note pp 11 and 12. This information
was briefed an hour after I asked the White House
not to go beyond "not our policy to comment on
allegations of intelligence activities."
STAT
Attachment
0901
000400080001-8
retai
PAGE
2-3
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3-4
4-5
6-10
12
#722-6/1
Approved For Release 2005/11/2L819A-ECIPAHR)01R00040
2 June 1983
A 0TMLEAPPEARED
. - ?
New; York Timm Nokombe
WASHINGION:--.Tbe-- Reagan ?ad?
ministration' dropped --a plan this
year to sponsor the overthrow of the
government ..of Suriname, a former
Dutch colony in South America, after
congressional committees objected,
administration .officials said Tues-
day. -
The plan, the officials said, Called
for the formation of a-small:paramil-
itary force -composed mainly of
Suriname exiles. ,?oppodedi Xi) `the
authoritarian government of U. Col.
Desi Bouterse. The 'force was to
infiltrate the capital, Paramaribo,.
? and oust Bouterse, the officials said.
Bouterse, who seized power in a
military coup in 1980, is.viewed by
? administration pffihials as an unpre-
dictable leader with procommunist
sympathies. Last December, his go-
vernment rounded up 15 .leading .op-
s' ea o
:trti??
unname coup
.?.?
ponents, including 'prominent
citizens, and summarily executed
them, according to the .Administra-
tion.
Whether the plan to overthrow
Bouterse called for his arrest, depor-
tation' '.or .other action was unclear.
The assassination of foreign leaders,
formally prohibited by President
Ford, also was 'barred by President
-Reagan in an executive, order .on
inteidgence activities issued in 1981.
? THE PLAN WAS?sponsored bythe
Central Intelligence Agency, accord?
ing to House Intelligence Committee
members. ? ? -?-??
The .CIA was reported to have told
congressional committees ? that the
ouster . of Bouterse .would eliminate
the possibility that the Soviet Union
And , Cuba could use?-Surtiame .as a
-base for-expanding their influence in
South America
',?;wif? ? ?
; A CIA spokesman said late. Tues-
day that we can't ,comment ?
these kinds of 'allegations." .
? Several members of ,the House and
Senate Intelligence Committees said
they had objected to the acheme
because they,felt the administration
had not demonstrated that Suriname
posed a threat to U.S. interests. The
nation, on - the northern .coast of
'....South America, .is bordered by
French Guiana, Brazil- and 'Guyana,
? a former. British colony. ?
? . Committee., members :aaid they.
were not opposed in principle to an
attempt to overthrow. a -foreign go-
vernment. But they criticized the
CIA for advocating what a House
Member called "the most ?extreme
measure?' before -less severe
methods were used, to -try ,to- steer .
Suriname -away from Soviet and
Cuban influence.' ? - ? ?
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?
STA I
Approved For Release 200115f1.168pka-RER2ir
0040008 001-8
2 June 1983
WASHINGTON
CASEY
BY DANIEL G. GILMORE
CIA Director William Casey, who once wrote a book titled "Tax Sheltered
Investments," traded millions in stocks and securities last year while
directing the spy agency, his annual financial statement shows.
The 70-year-old intelligence chief, a multimillionaire before his CIA
appointment by President Reagan in 1981, bought up to $5 million in stocks as
the market began to boom. He also sold stock worth at least $2 million and
disposed of a considerable amount in U.S... government securities.
Casey, whose CIA salary is $69,800 a year, tooK 17 pages to list his
income, investments and interests in property as required by the Office of
Government Ethics.
Unlike Reagan, Vice President George Bush and many other elected or appointed
officials, Casey has declined to voluntarily place his holdings into a blind
trust to avoid any conflicts of interest.
Instead, after considerable controversy over his 1981 declaration, Casey now
has..to submit his annual financial report for screening by CIA Deputy Director
John McMahon and Stanley Sporkin, the agency's general counsel.
"Presidential appointees are required to establish suitable screening
arrangements to assure they avoid participating in particular matters which may
affect their specific personal financial interests," CIA spokesman Dale
Peterson explained.
The White House had no comment on the matter. Presidential spokesman Larry
SpEakes said the screening process for Casey's financial transactions was
approved by the Senate, the Office of Government Ethics and the CIA. "The
White HOUSE does not become involved in any review," Speakes said.
This sceening policy for Casey began following disclosure in his 1981
statement that he had sold more than $600,000 in oil stocks as supplies began tO
become plentiful and prices dropped.
Exact figures are not included on the disclosure report, only valuations
which start at $1,001-$5,000 and end at "Over $250,000."
Casey had three separate listings for U.S. Treasary Bonds, one for Treasury
Notes and one for U.S. Treasury notes with valuations listed at more than
$250,000 each. Eleven of his investments, stocks or property were also listed as
more than $250,000.
He held municipal and state bonds in New Mexico, Alaska, Georgia, Illinois,
Minnesota, Connecticut and Florida and held stocks or shares in companies
including Bristol-Myers, MCI Communications Corp., Marriott, Philip Morris,
Wendy's, International American Express, IBM Canada, Sony and Hewlett Packard.
Casey declared a limited partnership worth between $15,000 and $50,000 in
Racquet Ball Courts.
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ARTipFtveidYnr/gliase 2005/11/28 : CIA-RW91-009 1R000400080001-8
.[JARDLAN (Up/
1 Jane 1983
SuperSecret Army ?um
Central Anferica
_
By JACK COLHOUN -._ - Vietnamese. The new spy agency, has also . Louis Wolf, an editor ot t-overtAction
Guardian Bureau ---- , -been involved in Africa and it aided in the Information Bulletin, told the Guardian, I
WASHINGTON, D.C.?The Pentagon has .re'ieite of Army Brig._ Gen. James Dozier, The ISA appears to be part and parcel of the r.,
who was kidnaped by, the Red Brigade in , expansion of special operations activities by 1
a new spy agency?the Army's Intelligence. Italy. . .-- the military services." Wolf said the pace of I
Support Activity (ISA)?for worldwide-covert -Elsewhere around the- world. . . the' unit the integration of intelligence operations and
operations and?n
inielligence,gathering-activi- ..
- as provided military -equipment to foreign "the military picked up during the Carter
ac we in
ties. ..:-- ? . - - - --?-'.-- ? ? , ,- '-iforces :and deployed servicemen using false -, administration. But it Was given a big boost, 1
The supersecret;ISA is currently operating identities to oollect intelligence," the New ? be added, by the Reagan administration's '
in Central America, --but if also has been york Tunes reported. enthusiasm for interventionism and covert t
involved elsewhere in the third world -and The
. . ISA was 'tasked" by CIA Director
operations.
Western Europe since it was-set-up in 1980. William Casey to undertake operations in Ralph McGehee, authorOf -Deadly Deceits:
-
For-at least its -first year, -.the ISA acted Central America, which still continue. An My 25 Years in the-CIA," said in an interview
illegally, circumventing the congressional .
unknown -number of ISA operatives, using that "it is not -surprising" that the ISA
-oversight process -regarding clandestine 2.u.:s. military cover,- are reported to be "popped up" in Central A-merica at this time.
operations. . ? gathering intelligence data in El Salvador. "There were so many military intelligence
The ISA' s existence has been disclosed at a And the new military intelligence outfit also units in Vietnam. it was hard to keep track of
time of growing -opposition to covert U.S. .is involved in .theCIA's war against them,- McGehee commented.
warfare against Nicaragua. In a related Nicaragua. - -?
Another factor in the development of the
development the -Reagan administration's According to the-Miami Herald, the "CIA ISA is the Reagan administration's opposi-
figleaf claim that this activity is not intended , and u.e..... militarv?operatives" have "as-_ tion to legal restrictions regarding covert
to overthrow the Managua government.- - --- - - operations, which officials complained limited
became even less credible last week. The -"gamed virtual day-to-day control" over the
the:41tei-tiveness of U.S. intelligence
New York Times, citing congressional right-wing cOntras' war to topple'the
'
'sources, reported that both CIA chief William Sandinista government. The Herald 'said'U.S. Operations. The Activity was an intentional
entfru. n around the congressional Oversight
Casey and Assistant Secretary of State intelligence agents -confer (Jar with the
process developed during. the mid-1970s,
Thomas Enders have recently told members - counterrevolutionaries to plot military stra- - - . . _ ..._
of Congress that the 'U.S.-directed "contras" tegy and to pinpoint attacks. Jay Peterzell, a Center for National
have a good chance of toppling the Sandinista . The covert operations against 'Nicaragua Security Studies analyst, pointed out that the
government by the end of
denied the report the next day. ? Negroponte, U.S. ambassador to Honduras.
John ISA "has been responsible for a number of
the year. Casey -are coordinated from Honduras by Jo
illegal clandestine activities conducted with-
"The Activity," as the new military Most of the U.S. personnel in Honduras are
out either a presidential finding or a report to
intelligence group is known, was started intelligence operatives, including "50 or 60 the
before the failed attempt to rescue IJ.S. U.S.-military officers--all in plainclothes-and 'congressional) intelligence commit-
tees." In fact, the Activity was unknown to
hostages in Iran. One knowledgeable official many of them of Puerto Rican or Cuban the intelligence committees until 1982, and
explained-to the Los Angeles Times that "the descent. ... ," the Herald observed,
military decided that they needed their own The CIA and U.S. military operatives are some members don't believe they've gotten
outfit to collect intelligence on. areas where responsible for the daily contact with the /he full story vet.
they are asked to fight." . contras, including debriefing them upon Under the congressional oversight system
- The Central Intelligence Agency, the return from raids into Nicaragua. The U.S. a presidential finding must be issued
opera-
official said, was unresponsive to the intelligence agents also analyze raw data explaining the necessity of a covert -tion. The administration also is required by
militarv's requirements because it had gathered in extensive spy operations focused
becorne too preoccupied with maintaining irs on Nicaragua. _ law to report to the House and Senate
intelligence committees regarding proposed
presence and -assets in Iran to be ablet to: The driving force behind the creation of the
actions. Committee members cannot veto
supply intelligence and equipment for Desert secret Pentagon intelligence unit appears to; ,
. 1. the 1980 aborted U.S. rescue mission. be retired Army - Gen. Richard Stilwell, secret operations, but the oversight process .
gives members an indirect influence and ,
Other officials added that the Defense deputy undersecretary of defense for policy.
Intelligence Agency- (DIA), the Pentagon's The Army established the Activity as part of allows them to ask questions. The only way .
for Congress to stop a covert action, however,
? official spy unit, was too well identified to be - its Intelligence Directorate, currently com- ,
to cut off funds for it.
effective. .,.._ mended by Maj. Gen. William .Odom. is
? Since 1980 the ISA has undertaken at least Although the -whereabouts of the ISA So far, Congress has failed to respond ,
decisively to the CIA's secret war against the
10 missions. The Activity reportedly helped . headquarters is . unknown, "some of its
Sandinistas, an operation in -bold violation of ;
1
former Army Special Forces officer James- operations were run out of Fort Bragg N.0 , international law and the so-called Boland :
(Bo) Gritz's clandestine foray into the jungles
apparently as an extension of the Ai-, my:s Capitol Hill lawmakers have to date been
of Laos in search of missing U.S. military
Special Forces [headquarters) there" the Amendment. Thus it is no great surprise that ..
'
personnel allegedly held captive by the Ne,' York Times reported. silent about the Pentagon's new spy unit and
its activities in Central America.
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li '
Approved For Release 2005/1N8iS*113B111-0090
1 June 1983
1R000400080001-8
KOPPEL: The White house had no comment. The CIA had no
comment, and the State -Department went only a hair further. 'We
don't comment on intelligence activities,' said state, 'but as a
matter of policy, it is not the policy of the government of the
United. States to overthrow the government of Suriname.' That
was all in response to a report by Carl Bernstein on this
broadcast last night. In that report Bernstein quoted
Congressional sources as claiming' that CIA Director William
Casey told the House and Senate intelligence Committeeslast
December of a covert. CIA plan to overthrow the government of
Suriname. in the face of heated congressional opposition, the
plan was reportedly dropped. Today the New York Times reported
that its independent sources had 'confirmed that story and
Bernstein reports that other cqngressional sources have now also
oonfirmed it. A little later in this broadcast we will talk
with henry -Kissinger, Richard Allen and Stansfield Turner about
the pros and cons of covert activity. But first, Fred harte,
leader of the Council for the Liberation of Suriname. hr.
hate, the conditions in your country?you claim they are eve=
worse than we have heard. how bad are they? hARTE.: Well, Ted,
they are very bad because to look at the Suriname situation, one
should view then on two levels. The first is the level of the
national unit in which we have to do, we are confronted with
armed. bands in a fragmented state which are terrorizing the
majority of the people of Suriname. Now, 99Z of the Suriname
people are against these armed bands, and it is a matter of fact.
that conditions ate far worser, worse than we've, you've heard
here.
KOPPZL: Ead you heard,,let me just ask you first of all whether
you had heard, and 1 mean has the CIA for example, been in touch
with you .or any of your collegues, about providing assistance?
?SAME: No, we don't, we know nothing whatsoever about CIA and
CIA contacts. We are trying to liberate Suriname from
(inaudible) in fact criminals, and we are determined to to tha
and we have -embarked on this course.
STAT
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Approved For Release 2005/11/28 : CIA-RDP91-00901R000
NBC - Nightly News
FINANCIAL
DISCLOSURE/
CASEY
1 June 1983
400080001-8
STAT
MUDD: The financial disclosure forms from the Reagan Cabinet
were released this week, and all members appear either to have
sold any holdings that would create a conflict of interest or
have put their holdings in a blind trust. The one exception is
CIA Director William Casey who has retained his extensive stock
portfolio. Economics correspondent Irving R. Levine reports the
details of Casey's disclosure form.
LEVINE: When Casey, who headed the Reagan election campaign,
was confirmed by the Senate as CIA chief, he asked for and got
unusual White House permission to Continue to buy and sell stock
himself, not through a blind trust, even though the CIA has
access to secret economic information. And Casey's financial
disclosure form shows him a heavy trader in the stock market
last year, including in companies with holdings in foreign
countries where the CIA gathers information. On August 26
alone. Casey bought stock in these companies. (Abbott
Laboratories, Bristol-Myers, Harland, John E. Co.. Johnson &
Johnson, La Quinta Motor Inns, MCI Comm. Group, Scotty's Inc.,
Sensormatic Elec. Corp.) purchases amounting to between $335,000
and $765,000. The disclosure form is no more specific than
that. On September 20, purchases amounting to as much as
$800,000 in these stocks. (Bristol-Myers, Digital Equipment,
Johnson & Johnson, MCI Comm. Corp.., Paradyn* Corp., Scotty's,
Inc.) Most have gone up considerably in price. In all, Casey
bought stock last year worth as much as $4.5 million and sold
stock for up to $2.1 million. A Casey predecessor at the CIA,
Admiral Stansfield Turner, was required to put his holdings in a'
blind trust, but Turner doesn't believe CIA information
necessarily would help in stock trading. ADMIRAL STANSFIELD
TURNER (Former CIA Director): I don't recall any situation
where I learned something that would have been useful in a
personal financial sense. I think the issue here is one of
appearance as much as it is a fact.
LEVINE: Administration officials point out that Casey's stock
trading is periodically reviewed for any conflict of interest,
but that review is done by Casey's subordinates at the CIA.
Irving R. Levine, NBC News, Washington.
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Approved For Release 2005/11/28 : CIA-RDP91-00901R00040
NBC - Nightly News
1 June 1983
REAGAN/ MUDD: The CIA refused today to comment on a report that
SURINAME Director Casey, with the President's approval, had planned a
covert operation to overflow the government of the small South
American country of Suriname, but congressional sources
confirmed the plot and said Casey backed away only when the
Congress balked at the idea of using a paramilitary force of
Surinamese exiles to depose the government, which Casey felt was
coming under Cuban influence. Suriname was a Dutch colony until.
it got independence in 1975.
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Approved For Release 2005/11/28 : CIA-RDP91-00901
? CBS Evening News
1 Tune 1983
.000400080001-8
REAGAN/ RATHER: CBS News today confirmed reports that President Reagan
suiNkmr last December authorized and then abandoned a secret plan to
overthrow the government of Surinam. CIA Director Casey backed
that plan, believing that Surinam's government was drifting into
the Cuban orbit, but after a briefing, Senate and House members
objected to the plan, and it was finally dropped.
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ARTrr
proved-For Release 201Thrin218( : CIA-RDP91 -00901 R0004000
1 JUNE 1983
rtrrr
CIA chief
very active
on Wall St.
Special for USA TODAY
WASHINGTON ? CIA chief
William J. Casey, who has ac-
cess to the government's confi-
dential economic data, traded,
several million dollars worth of
stocks and other securities ia
the stock market last year, ac-1
cording to financial disclosure
statements released Tuesday. r
Casey bought stock worth
from $1.9 million to $4.5 mil-
lion, while selling stocks worth,
at least $1 million to $2.1 mil-I
lion, the form showed., I
After release of his 1981 dis-
closure form last year, which
showed Casey had sold
8600,000 in oil stock as .a world
market glut developed; the CIA
established a new rule. A17
though Casey would be allowed
to continue to bade on the mar-,
ket, it required that Casey's'
stock transactions be reviewed
to assure against -possible coni
flicts of interest.
STAT
30001-8
The 1982 form shows that
Casey and his wife earned at
' least $478,600 to $959,600 in
outside income.
For three other Cabinet
members ? Treasury Secre-
tary Donald Regan, Commerce
Secretary Malcolm -Baldrige
and Labor Secretary Raymond
Donovan ? 1982 was a verY,
good year financially, though!
not as good as 1981.
The record shows:
'Megan, former head of
* Merrill Lynch & Co., made at
least $113,000 in outside in-
come last year, most of it ema-
nating from a blind trust set up
, when he took the Treasury.
post. He reported income of at
least $715,000 in 1981.
^ Balclrige received be-:
tween $198,800 and 1270,006
1 from -outside the government
last year, including $108,813 in ,
pension payments from Scovill
Inc., the Conrieclicut firm he
headed before joining the gov-
ernment. He listed income of
at least $1.6 million in 1981.
? Donovan listed outside in-
come of at least $130,000 in
1982, compared with1562,874
in 1981. He listed assets of
$483,000 to $2.45 million.
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Approved For Release 2005/11/28 : CIA-RDP91-00901R000
kRTI CL Imre=
n.cz.47. iATA SHIN G T ON P OS T
1 JUNE 1983 ?
400080001-8
CIA Targeted
Suriname,
ABC Reports
United Press International
President Reagan author-
ized covert CIA actions
aimed at .overthrowing -the
government of Suriname last
year but. backed off because
of strong congressional ?. op-
poition, ABC News reported
last night. -
ABC said the rationale of
Reagan and the CIA was
that Desi Bouterse, military.
leader of the South American
state, was moving toward
close alliance with. Cuba
White House spokesman
Anson Franklin said last
night,'"It is the administra-
tion'spOlicS, not to comment
on -any reports of cOvert
tivities."
Rep. Edward F. "Boland
(D-Mass.),. chairman -cif the
House Permanent Select,
Committee ?on Intelligence,
said, don't discuss any
matters of that committee.'
? ABC reported that CIA
Director William 3. Casey, as
required by law, informed
Boland 's panel and the Sen-
ate Select Committee on In-
telligence of the plan to
cre-
ate a paramilitary force of
exiles from Suriname.
In the face of overwhelm-
ing bipartisan opposition, the
administration reportedly
reconsidered. Several weeks
after Casey's appearance on
Cattitol Hill, he told the.com-
mittees that the plan was
being withdrawn, ABC said.
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TAT
Arica AppEketproved For Release 20ritliggpp6RE2DR91-00901R0
1 June 1983
LIN PktIE
0400080001-8
Reagan OKd bid to oust
Surinam chief, ABC says
Washington (AP) ? President
Reagan last December authorized the
Central Intelligence Agency to try to
overthrow the government of Suri-
nam in secret.,, but the administration
? -dropped -the idea -after objections
- from Congress, ABC ;News said last
night. . ? --
CIA spokesman ?- Dale Peterson
said: "We can't :comment on these
kinds of allegations." -
According to the report prepared
for the "Nightline" program, a -tran-
script of which -was 'released in ad-
vance, CIA Director William 3. Casey
told the Rouse and Senate intelligence
committees that Surinam's ruler,
Desi Bouterse, -was leading the coun-
try into the Cuban-orbit.
The CIA plan reportedly called for
the formation of a paramilitary force
of Surinamese exiles to topple. the
Bouterse government.
But committee members of both
parties objected that there was no ev-
idence that Cuba was "manipulating
? the government in Surinam', or gain-
ing a military foothold in the coun-
try," the network said. -
After the Senate committee
weighed in with objections, Mr. Casey
dropped the plan, it was reported.
Mr. Bouterse, who as a lieutenant
colonel commanded Sminam's army,
? took power in a coup in February,
Unned ress Internanonar
DESI BOUTERSE
. Surinam's military leader
1982. Last fall,-.as -opposition mount-
ed, be -rounded up 'dissident leaders,
including journalists and labor lead-
ers. Fifteen were shot to death, ac-
cording to the government account,
while trying to escape.
After that, the Dutch and U.S. gov-
ernments suspended aid to Surinam, a
Dutch colony_until 1975.
More than 1,000 people reportedly
have fled the tiny country on the
northern coast of South America.
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Approved For Release R295/y101g8./TARRPA111.2R01g
1 June 1983
SURINAME
p. S. DROPS PLAN TO OVERTHROW GOVERNMENT OF SURINAM
BY PHILIP TAUBMAIC
00400080001-8
STA
WASHINFON - THE RERGRN ROMINIETRRT3ON DROPPED R'PLRii TH1P, YERR
OVERTHROW THE GOVERNMENT OF SURIWPME5 THE FORMER DUTCH COLONY 3N
SOUTH AMERICRf PFTEF: CONEREESIONRL COMMITTEES OtJECTED5
RDMINISTRPTION OFFICIRLS SAID TUESORY.
THE PLRN5 RCCORD1NO TO THE OFFICIRLS5 CRLLED FOR THE FORMRTION OF R
SMRLL PRRRMILITRRY FORCE COMPOSED PIR2NLY OF SURINRMESE EX3LEE OPPOSED
TO THE R1THOR2TRRIRN GOVERNMENT OF LT. COL. DEE: BOUTERSE. THE FORCE
WRE SUPPOSED TO INFILTRPTE THE CRP2TALs PRRRMRRIBOs RHO OUST THE
GOVERNMENT5 THE OFFICIRLS SR3D.
BOUTEkSE WHO SEIZED POWER IN P KILITRRY COUP IN i9S0.5 IS VIEWED BY
RERGPN ROMINIETRRT2ON OFF3C1fiLS RS RN UNPREDICTRtLE LEROER WITH
PRO-COMMUNIST SYMPRTH/EE, LT DECEMtER HIS REGIME ROUNDED UP
4r
LERDINC OPPONENTS INCLUDING PROMINENT CIT2ZENS5 RND HRD THEM
SUMMRULY EXECUTED! RECORD3NE TO THE POMINISTRRTION.
WHETHER THE PLRN TO OVERTHROW BOUTERFE CRLLEO FOR HIS FIRREST OR
DEPORTRT2ON OR OTHER RCTION RGRINFT HIM WRS UNCLERk. THE
RSERSEINPTION OF FOREIGN LEROERS FORMRLLY PROHIBITED tY PRESIOENT
FORO WFS RLSO tPRRED PRESIOENT RERGRH IN RN EXECUTIVE ORDER ON
INTELLIGENCE RETIVITIES HE 1SFUED 3N 19B1.
THE PLRW WF F SPONF.ORED BY THE DENTRRL 3NTELL7GENCE RGENCY5 PCCOROING
TO HOUSE /NTELL2GERCE COMMITTEE MEMtERS. THE PURPOSE NPR. TO OVERTHROW
D.OLONEL BOUTEREE, THE CIA WRS REPORTED TO HRVE TOLO CONGRFF-52ONRL
COMMITTEES THRT HIS OUSTER WOULO EL3M3WRTE THE POSFIE:3LITY THRT THE
SOVIET UNION AND CUE:R ROULD TRY TO USE SUR3NRME PS P ERSE FROM WHICH
TO EXFPND THEIR INFLUENCE IN SOUTH RMERICR.
SEVERRL MEMEERS OF THE HOUSE RHO SENPTE INTELLIGENCE COMMITTEES SAID
TUESDRY THRT THEY HRD DE7ECTED BECRUSE THEY FELT THE ROMINISTRRTZON
HAD WEIT DEMONSTRRTEO THRT SURINAME f'OFEO P THRERT TO UN:TED STPTEF
INTERESTS, SURINPME5 ON THE NORTH COST OF SOUTH RMER2CR, 3E tORDERED
BY FRENCH GUIRNR! BRPZIL RHO 6UYPNR5 R FORMER BRITISH COLONY.
WHILE NOT OPPOSED IN PRINCIPLE TO THE IDER OF RTTEMPTING TO
OVERTHROWING P FOREIGN GOVERNMENT COMMITTEE MEMBERS SR1D THEY HO
OR172C1ZED THE CIA FOR ROVOCRTING WHR7 ONE HOUSE MEMtER CRLLED "THE
MOST EXTREME KERE" BEFORE LESS SEVERE METHODS WERE -USED TO TRY TO
STEER SURINPNE RWRY FROM SOVIET RHO CUBRN INFLUENCE.
TO
CLA:ELVDED
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ARTICLE APPEA
r/ed For Release 2005Ell4ZaL (NALROJD9-1)0042,:1R00040
PAG
1 June 1983
CIA Chief's Stock Trades
Were Heavy During 7-982
WASHINGTON (AP) ?The director
of the Central Intelligence Agency, Wil-
liam J. Casey, bought and sold several
million dollars of securities in 1982, ac-
cording to his financial disclosure form
released yesterday.
Mr. Casey bought stock valued at
11.9 million to $4,5 million, according to
the report, and sols1 stock with a value
of at least $1 million and possibly more
than $2.1 million. The form indicated
that the CIA director apparently fi-
? nanced some purchases by selling Trea-
sury bills. = ? . ,
-Exact amounts for his investments -
-were impossible to determine because
government disclosure forms list values
within -broad ranges.
Unlike his two CIA predecessors and
other top Reagan administration offi-
cials, Mr. Casey didn't put hisrextensive
stock portfolio into a blind It-6st or sell
any stock as a condition of employ-
ment. -
Following release of last year's dis-
closure form, which showed Mr. Casey
selling more than $600,000 in oil stocks
.as a glut developed in world markets,
.the CIA established a "screening ar-
rangement." The arrangement permits
Mr. Casey to continue buying and sell-
ing stock but requires that Deputy CIA
Director John McMahon and other se-
nior CIA officials regularly review Mr.
Casey's stock transactions for possible
conflicts of interest.
The report shows that Mr. Casey
dropped most of his remaining holdings
in the oil industry last year. Many of his
purchases were in computer, electronic
and drug-manufacturing concerns, res-
taurant and hotel chains and airlines.
1
0080001-8
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AopTzed For Release 2ox5$1 2terconzoR91f-oo9o1 Roo?Zoom:mai-a
ARTICLE APP RtD
ON PAG JUNE 1983
WHO'S WHO in the Administration
No one may ever again attain the mastery over White
House perks and status badges that Bill Gulley demon-
strated during his long reign as director of the White
House Military Office under Presidents Johnson, Nix-
on. and Ford. But Gulley's counterpart in the Reagan
administration, presidential assistant Edward V.
Hickey Jr., appears to be upholding the legacy. If you
want a beeper, a White H ouse phone in your home, a TV
in your office, or a car or plane to dispatch you to your
destination, word in the White House is that you first
have to clear it with Ed. .. .
Behind the enmity within the Reagan administration
for the James Baker/David Gergen /Richard Darman
faction lies a lot more than jealousy and personality
differences. For al: their considerable talents. these men
are viewed by ideological conservatives as part of the
"survive tomorrow" side of Washington. motivated not
by the hope that the right cause will prevail, but by a
desire to wake up the next morning with one's power
? undiminished. Anyone who's worked in government
for idealistic reasons knows that nothing grates on a true
believer more than members of the "survive tomorrow"
crowd, who often come to be perceived as the worst
enemies of all.. . .
Around the halls of the CIA. director William Casey
is famed for his frequently unintelligible pronounce-
ments. Indeed. Casey is referred to as the first CIA chief
who acts as his own scrambler....
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