SYNFUEL CHIEF BACKS PEAT PLAN WITH NOTED GOP INVESTORS

Document Type: 
Collection: 
Document Number (FOIA) /ESDN (CREST): 
CIA-RDP91-00901R000400100001-5
Release Decision: 
RIPPUB
Original Classification: 
K
Document Page Count: 
23
Document Creation Date: 
December 19, 2016
Document Release Date: 
November 14, 2005
Sequence Number: 
1
Case Number: 
Publication Date: 
December 22, 1982
Content Type: 
NSPR
File: 
AttachmentSize
PDF icon CIA-RDP91-00901R000400100001-5.pdf2.38 MB
Body: 
_.. Approved For Release 2005/12/14: CIA-RDP91-00901 R00 THE WASHII`TGTON POST 22 Decer.ber 1982 Svnfuei Chief Backs Peak F am an With Noted GOP Investors By Martha M. Hamilton ua?htngwn PO tSLOT Writer been abandoned because of low oil chairman has endorsed federal back- , ..., Trig for a 3576 million synfuels ra Ina report six months ago, the p SFC staff concluded: lest. despite a staff opinion that this "Commercial experience with, peat _ kind of venture is economically "un- .resources would not, at this ' time, .- promising" and would not add sig.' appear to add significantly too the nificantl to the nation's energy ca- nation's capability to expand syn; pabilit,y. thetic fuels production rapidly or to The chairman., Edward Noble, is- a large scale in the future." The sued a "letter of intent" yesterday staff's position on this point has not approving !oar guarantees and price changed, officials said, although supports of up to 5465 million for more recent staff analysis has point- from -the theproject, sponsored by peat ed tootenttial id e sa. Me+,-~.anol Associated. PMA intends to produce methanol fuel from peat The project is expected to be in stripped from swampy North Car- operation by December, 1985, at a olina coastal land. Final approval by construction , cost of $576 million. The SFC has agreed to provide a the corraoratian board is required. _ __ ... for several plants. First Colony had been eliminated from the first competition for goy, ernmenc?,?unds and barely (by ,a 4- to-4S--vote) was included .among the Projects ,shat .the SFC chose to con- sider An..its second solicitation for proposals. Jt, av very difficult call," said SFf; member Robert A.G. Monks. '.Monks initially opposed the project but now supports it, saving it has been improved. . The project has drawn criticism from North Carolina ?environmentaj. ists and the Environmental Policy Institute. a non-profit researckVgroup that is a critic of the Synfuels Corp. "I really believe that the c orpora - The venture, known as the First toward the construction costs, with tion's selection of this project raises Colony Farms project, is backed by the total amount of loan and price issues which hit to the heart of the Some. prominent Republican invest- guarantees not to exceed $465 mil- most important debate of all-tile ors, including CIA Director William hon.., Synthetic Fu-e s Corp.. itself," said J. Casey and several former high- Tlie investors are expected to put 'Rick Young of EPI. "Who is it really ranking Ford administration offi- up between $135 million and $172 benefitting and what will we get-for. - ciais, and is also expected, to benefit million. the money?" . a powerful North Carolina landhold- The SFC also would guarantee a Critics also cite the potentially er and former shipping magnate, minimum price for the methanol costly Price guarantees. Although the Malcom McLean, whose land con- fuel produced at the plant, starting SFC would psarantee a minimum of at. S1.05 rains the peat. p ?1.05 a gallon in 1963 prices. rising per gallon in 1983 rides, a Although the project has powerful patrons. SFC officials said its attrac- tion is in being one of a very few synthetic fuels ventures reasonably close to production. The SFC is re- quired by law to see that a certain amount of synthetic fuels are actu- ally churned out, So far, the SFC has not been able to fund a single pro- :'1'he staff has also concluded that jest. and several of the biggest have Peat may be a valuable resource in the Southeast, where there is enough figure considerably higher than the current price of methanol, which ranges from slightly below 50 cents to about,75?cents a gallon. -Methanol is an alcohol that is re- ceiving.only limited uses as a gaso- line additive.and for petrochemical and,plysvood production. .The SFC says the prc jest will pro- vide . valuable experience with meth- arbl' ,conversion. that can be used with cod} -as well' es peat, -It also says ,the,; project will -,provide important izreari etiag experience with methanol, 'which may some day be a major ansportation fuel; a Percentage points above the in- flation rate every year, methanol can be bought on the Gulf Coast in bulk quantities for under 50 cots a gal- lon. However, SFC strategic planner James Harlan said methanol is likely to be used increasingly as a gasoline additive or substitute, which would boost its price considerably. "Any reasonable trajectory :.for methanol prices will result in no Price guarantees being expended by the SPC," 'according to Robert V. Fri, former chief of the Energy Re- search and Development Adminis- tration and one of the investors in the Energy Transition Corp (Etco) . Approved For Release 2005/12/14: CIA-RDP91-009'@I!Ft09A?1P6W9'Ip6rcrnt of the Approved For Release 2005/12/14: CIA-RDP91-00901 R0004 ST. L0 7:S POST-DISPATCH NO) 21 DECER 1982 A Loophole For The Resolution Gives Only The Appearance Of Restraining Covert Acts -1 Statement B. Ronald Brownstein (If The Ralph Nader Organization Historically, Congress has been extremely reluctant to meddle in Central Intelligence Agency affairs. Though the Church and Pike committees in the mid-1970s exposed a panoply of CIA improprieties and the 1976 Clark Amendment prohibited aid to rebels in Angola, Congress did not have the stomach for a lasting diet of such confrontation. No laws were ever passed to prohibit the kinds of covert foreign 1 ~. activities uncovered by i or the Church and Pike O pV c attitude aboutCongress covert inion actions has been almost o n indistinguishable Srom the view expressed by CIA Director William Casey in an interview earlier this year: "We have the authorization to do them as authorized by the president, we report them to Congress. But (part from that I don't talk about them, they don't exist." For Congress at least, that posture has been made increasingly difficult by the continuing press stories of covert CIA activity against the Sandinist government of Nicaragua. A trickle of stories that began in March became'a torrent in the past month, when a Newsweek cover story, followed by other accounts, laid out the scale of CIA assistance to former soldiers of deposed dictator Anastasio Somoza and other paramilitary forces harassing Nicaragua from bases in Honduras. These revelations have put Congress and the American public in, an extraordinary position, possessing detailed knowledge of covert CIA activities against a foreign government while they were occurring. But actions last week indicate that even with such knowledge, Congress is still reluctant to act. When the first stories of the administration's controversial $19 million plan to "destabilize" the Sandinist government appeared in March, Rep. Michael Barnes (D-Md.), chairman of the House Inter-American Affairs subcommittee, introduced a resolution to bar U.S. covert actions against Nicaragua. Barnes' measure drew little support and did not advance. In June, Sent Claiborne Pell (D-R.I.) raised the issue again, by seeking to delete S21 million in funding the administration had sought for upgrading two Honduran airfields that could be used for strikes against Nicaragua. The improvements would make the airfields "accessible to U.S. aircraft limited airlift or for up to a squadron of tactical fighter aircraft," said Sen. Strom Thurmond (R-S.C.); the administration's floor manager on the bill. In August, Democratic Rep. Tom Harkin of Iowa offere Ap I~ ~Rty ~s1e~f@~defeaYc~(j'F g l The November Newsweek story revived interest and Harkin introduced a new amendment Dec. 8 banning the use of any CIA money to train or arm any paramilitary group -carrying out military activities in or against Nicaragua." Supporters of Harkin's resolution maintained the CIA activities violated the charters of the United Nations and the Organization of American States and "may lead to a violation of the spirit if not the letter of the War Powers Act." But Harkin, like Barnes before him, did not have the votes. A few moments after the debate began, Rep. Ed Boland (D-Mass.), chairman of the House Intelligence Committee, offered a more narrowly worded substitute amendment, barring only aid to groups "for the purpose of overthrowing the government of Nicaragua or provoking a military exchange between Nicaragua and Honduras." _ Boland's measure passed unanimously. After months of benign neglect, the House had apparently taken a bold step on what has been called the CIA's "secret war." Or had it? In the Boland amendment there may be less than meets the eye. One clue is the sponsor, Boland, who voted against the attempt to eliminate funding for the Honduran airfields and as chairman of the House Intelligence Committee has rarely challenged the CIA. Another clue is that the administration did not oppose the bill, freeing House Republicans to vote for it. Several House and Senate aides working on the issue say the amendment will have virtually no effect on CIA operations in Central America. "In the amendment there is a loophole," acknowledges an aide who worked on Harkin's proposed ban. "The line is hard to draw as to what activity is one whose purpose is to overthrow the government of Nicaragua. There are many activities that are borderline ... Since the Intelligence Committee is charged with oversight in effect (the amendment's impact depends on) how Mr. Boland would regard various activities under review ..." If the CIA says an operation is to interdict arms shipments - not to overthrow the government of Nicaragua - it can continue under the language of the amendment, maintains another Senate aide. Harkin's amendment, by contrast, would have stopped all paramilitary actions against Nicaragua. The vote may impel the intelligence committees to more vigorous oversight of the CIA operation. But its major effect is sure to be foreclosing any more restrictive House legislation. In the Senate Chris Dodd (D-Conn.), is seeking a more comprehensive prohibition,. but that is plainly an uphill battle. The House's action may turn out to be al nothing more than a jccollective~caongression the '-~ebff~i Po ~o~lt " 9n I,thing but rf9 '- appearance, the House Last week did not violate Congress' tradition of deference to the CIA. ppraved,For Release 2005/12/14: CIA-RDP91-00901 R0 '"7' WASHINGTON TIMES 20 DECEMBER 1982 Through the keyhole: A peek inside the CIA By John Nassikas SPECIA. TO THE WASH'NGTON TIMES 0 r. Aug. 7, 1981, I drove a final time along Dolly Madison Boulevard and left behind two armed guards and 10 weeks of work for the Central Intelligence Agency. As one of 40 interns in a summer graduate-stu dies program spon- sored by the CIA to assess poten- tial full-time employees, I had a chance to look inside the most secret U.S. government agency. Some things I can tell you; some things, by law, I cannot. I can tell you that at the end of every workday all typewriter rib- bons must be locked up or destroyed. I can tell you how self- important I felt the first time I read a document stamped TOP SECRET. And about the smile that came across my face at the end of -my first day when a secretary came into my office and asked L whether I had any "classified trash" I cannot tell you about my poly- graph test. Or why a "syndrome approximation test" was canceled in the middle of a two-day period of physical and psychological examinations determining my fit- ness for the job. I can, however, tell you about the time the field man in ci rge of my background inves- tigation erroneously came to my family ;s house in McLean, knocked at the front door, and said: "I'd like to know what you think about your neighbor the Nassikas boy." "I think he's an exceptional young man," my sister replied. 000 CIA. Everyone knows what -the initials stand for; the rest they imagine. I, for one, was not sure what to expect when I first entered the CIA compound. I shared the common suspicion that a normal person with normal problems did not work there. I imagined that the typical employee was coldly pro- fessional, even emotion- less, and led a life as charmed as James Bond's. I knew that there were taboos. The CIA had warned me as a pro- spective employee that, once I had worked for the agency, I could never join the Peace Corps. And I knew that 1 could. not be a practic- ing homosexual or become either an alcoholic or drug addict and expect to stay employed. In the months before I applied to the agency's graduate-studies pro- gram, 1 heard rumor after crazy rumor: CIA people could not marry non-CIA people; CIA people were ultraconservatives, fascists, communists, closet radicals, you name it. 1 was told that agency employees were not permitted to study at Cal-Berkeley or the Uni- versity of Michigan or to travel as tourists to the Soviet Union. I was not surprised later to find out these rumors were false. More- over, when I fgwtdout that the CIA hired people who drank alcohol, I simply nodded my head. But the 'CIA actually hired people who had smoked grass? Now that surprised me. (Needless to say, habitual users need not apply.) ? ? ? The first time I turned off Dolly Madison Boulevard onto the road leading to the CIA, I felt as if I were approaching Versailles. Flanking the road for 300 yards, tall trees stood like perfect sentries, and a regiment of daffodils marched in the shadow of the trees. At the guardhouse gate I pressed my CIA identification card against the windshield and was allowed to pass. The card has no words on the front, only a photo and a few letters and numbers. From a distance, as your car is rolling up, the guards see the card and wave you -on. If you don't have CIA idi`#jufidation, you had better have a good reason for wanting to drive past the gate. "I'm lost" or "Isn't this the road to Pizza Hut?" - favorites of local teen-agers looking for excitement on weekends - will not do. 1 know. As a teen-ager I tried them myself. Approved For Release 2005/12/14: CIA-RDP91-00901R000400100001-5 2. Approved For Release 2005/12/14: CIA-RDP91-00901R00040011QOKQ1-5 After parking my ca that first that would conduct "operations Rona eagan, with brief notes day in one of the lots surrounding abroad" but would have "no police and signatures. the headquarters building, I strode or law enforcement functions, The 499-seat auditorium is the through two sets of doors into the either at home or abroad" The only architectural anomaly-in the main lobby. Etched on the marble United States, in fact, is the only facade of the wall.on my left was a country in the world with a headquarters compound. On the biblical verse (John 8:32): "And ye bicameral intelligence system: the outside it resembles a geodesic shall know the truth and the truth CIA is responsible for intelligence igloo with silver shingles. Inside it shall make you free:' On the right abroad, the FBI for intelligence at resembles a planetarium, with was a memorial, flanked by U.S. home. 'I'he F111, of course, also has large acoustical discs clinging to and CIA flags, with this dedica- law enforcement functions. the vault. The one behind the tion: "In honor of those members From 1947 until 1961 the `CIA podium used to be white, but when of the Central Intelligence Agency operated out of 30 buildings in the President Jimmy Carter came to who gave their lives in service of Washington area, including River- make a televised address, the net- their country" Under the dedica- side Stadium, Arlington lower, works complained that the back- side were 38 stars. Curry Hall, "The Garage:' 2210 E ground was too bland. So the disc I got chills when I saw that 21 of St. and a headquarters complex at was painted presidential blue. the stars had no names beside 2430 E St. ?' ? them: 21 dead agents whose names y people have asked me how - in the interest of protecting During the 1950s officials real- Man "sources and methods," says the ized that the original charter for a many tennis courts there are at the CIA - could never be revealed. central intelligence agency, "CCC" (Clandestine Country "Your successes are unher- coordinating intelligence. to pre- Club). When I tell them none, they alded, your failures are trum- vent a recurrence of Dec. 7, 1941, scoff and assume that 1 am hiding peted:' said President John F. remained more a concept than a the truth. Early in the summer, I Kennedy when presenting the reality. asked a CIA official where the National Security Medal to Allen It was Allen Dulles who envi- tennis courts were. "Headquarters Dulles, retiring CIA director, on sioned and oversaw the con- was built before the fitness boom;' November 28, 1961. struction of the one-million- he said. square-foot headquarters building The CIA does have an indoor The art of intelligence has been on 219 acres of northern Virginia track, if that's what you call 83 practiced in the United States real estate that the CIA has occu- yards of basement corridor and a since the revolutionary days of pied si.tce 1961. And it was Dulles rubber running surface the shape George Washington. Ina letter to who told the New York architec- of a chopstick with curved ends. l. Elias Dayton, his intelligence tural firm of Harrison & The track is less than three feet Col h on July ton. his Washington tce Abramowitz - which also de- wide (101 "laps" equal one mile). c, . 1777, wrote, "The necessity of procuring signed the United Nations building Nearby is a fitness room with a good intelligence is apparent and - to projeci the atmosphere of a Universal weight set among its need not be further urged" Wash- college campus. Agency employ- equipment. Unfortunately, the ington, in fact, forced the surren- ees boast that there are enough Washington Color School never made it to the basement. der of Cornwallis at Yorktown in PhDs walking the halls of the CIA 1781 by deceiving the British into to found a major university. Until the directorship of George assuming his major assault would The building has seven floors, a Bush, male and female CIA be in New York, not Virginia. periodicals, nie library, with 1,700 employees vied for one locker In this century, Pearl Harbor is pe periodicals, and a historian who room, with women not allowed to what shocked the United States can tell you the first time the word use the facilities except during into recognizing the need for a cmole" was used in an espionage working hours. This was centrallycoordinated national context (1622, in Francis Bacon's inconvenient for the majority of intelligence service. As one CIA "The Historic o1' the Raigne of the women, who, like the men, King Ilenry the Seventh"). referred to exercise before or office director observes in retro preferred major corridors of the after work. spect: "Information was available buildings form a quadrangle but was so fragmented that there One day in 1976, Bush was jog- was no individual or group of peo- around a courtyard of grass, ivy, grog, stopwatch in hand and his dogwoods and magnolias. I never ple responsible for drawing what was able to find out why no one was female executive assistant close turned out to be a logical conclu- behind, when another woman sion... " permitted to walk in the courtyard, approached to complain about the Six months after the, Japanese' despite the swept serpentine paths arrangement. Within days the fit- bombed Pearl Harbor, President of beige and white stones. ness room had coed hours before A CIA fine-arts committee and and after work, with shower time Franklin Roosevelt created the Vincent Melzac, former director divided fairly. Office of Strategic Services (OSS), of the Corcoran Art Gallery, are to be headed by William "Wild' responsible for the loaned paint- Bill" Donovan. After a successful ings that brighten agency corri- like a suburban version of Club war effort, in which invaluable dors. The huge oil and acrylic Med. It is a lunchtime ritual to take intelligence was collected by canvases by Alma Thomas, Nor- a stroll, clockwise, on the side- agents (among whom included matt Bluhnt and Itoward Mehring, walks around the building. A few present CIA Director William among others, represent the Wash- renegades always weave their way Casey) who parachuted behind ington Color School, 'which counterclockwise. Some employ- enemy lines, the OSS was dis- descended from the movement led ees jog. Some run across Route 123 banded in 1945. by Willem de Kooning and Jackson around the Potomac School Donovan then drew up a pro- Pollock in New York during the grounds, and back - a distance of posal for President Harry 11'uman 1950s. Along one corridor are oil about three miles. Others sun on that eventually resulted in the portraits of' CIA directors. Along the many benches and simulated 0661b es scattered throughout National SecurityAopro)Gedl9F6r Releasen2OQS /di4eiCkA4M 901R000400t' ?grounds. which established a new agency presidents from Harry Truman to Rain or shine, pWc tYt0;FAg elease 200513 c1u4+erCt u fi iii9tlipg941tR000400100001-5 down Route 123 every day, often floor is a small executive dining with trench coat and always with room for GS-16s and above. The green army pack on his back. A director has private dining space group of Maryland employees, for 10 next to his office. tired of traveling the long route Bread and butter used to be down and around Chain Bridge, served in the executive dining have come up with an iconoclastic room, but nowadays there is only commute. Every morning they an assortment of crackers in only park their cars on the Maryland wicker basket on each cloth- canoes, Potomac, step into covered table. According to lore, a canoess, , paddle the river and climmb the trail they have blazed to the past director thought phis super- agency The pioneers face only one grades were getting fat. modern obstacle - crossing the ? ?' George Washington Parkway. (Ini- I have already mentioned the tial plans to extend the Parkway to first time 1 got chills at the CIA. Route 123 were amended to The second time occurred when I include an extra mile providing a stood before the statue of rev- back access to the CIA.) olutionary hero Nathan Hale out- And then there are the softball side headquarters and read his last fields up the road, at the beginning words. While trying to slip out of of Georgetown Pike. Ever wonder New York, Hale waas captured by where all those people come from the British and convicted as a spy. every afternoon, and sometimes On Sept. 22, 1776, he stood on the gallows and said: "I only regret into the early night, with menacing that I have but one life to lose for bats and balls but, you can bet, my country." without their ID cards hanging from their necks? Soviet agents My alma mater, Yale University, who have defected, when asked has a similar sculpture of Hale - how they recognized CIA employ- an early alumnus and during my sec, have said, "They're so easy to four years there 1 often walked by spot; they're the ones with the his solitary figure. But I had never chains around their necks" Thus taken the time to read the the warning now at the exit of all inscription. (This article has been reviewed CIA buildings to remove badges. by the CIA to assist the author in 000 1 The CIA would not be able to eliminating classified information; Project a collegiate atmosphere however, that review neither con- without McLean, Va., and McLean material CIA outhentiftcation of would not do the business it does material as factual nor implies without the CIA. Forget about CIA endorsement of the author's local residents Charles Robb, Pat- views, rick Buchanan, Ethel Kennedy, The author is a second-year law Teddy Kennedy, Elliot Richardson student at the University of Vir- and Zbigniew Brzezinski; the CIA ginia Law School.) is what makes McLean thrive. Every weekday at lunchtime a horde of CIA employees descends on the restaurants of McLean for temporary escape from the con- fines of the agency as well as for food. Thanks to the CIA, the Mclean Family Restaurant, for example, regularly does full- house business. Other favorites include George's, Kazan's, Evans Farm Inn, and, for dessert, Baskin- Robbins. Favorite watering holes are O'Toole's and the Rough Rider Lounge in the Ramada Inn. Those who prefer to eat at the CIA can have breakfast, lunch or dinner at a number of dining facili- ties run by Guest Services, Inc. Because visitors are allowed to eat at the North Cafeteria, undercover employees use the larger South Cafeteria, where a glass wall enab- les them to keep an eye on the outdoors. On a balcony in the South Cafeteria is the Rendezvous Room, where $3 buys atptVky?Wdr yt Release 2005/12/14: CIA-RDP91-00901R000400100001-5 buffet and an aerial view of an J1,77-1 n r: AFTEAFARPp roved For Release 2005/4 4 : CIA-RDP91-0090 r~, 17 .~ T 20 D UEE l 1952 C 71! C7 MIDDLE LAST Trying to Break the Impassee ,Rea an expresses frustratiion, but no one has new ideas be sus, w-as rising over Washington whet. promptly at 7 a.rri, last Wednesdzs. Vice President George Bush convenes 2 special hi.gb-level meeting in the White House Siuiation Room. Na- uona] Security Adviser William Clark was there, along with CIA, Chief William C. asev. TJ? lease -Creta ;pa TveiL Bxrper and Special Envoy Philip Habib, who had been hastily summoned home from his diplomatic shuttle in the Middle East. The purpose of the ga.tbering: to find z -"ay to break the impasse in negotia- tions to sec are the: 6Vitbdrawa] of Israeli. Syrian and Palestine Liberation Organi- zation troops from Lebanon. The mock was somber. "Everyone in the. Ad.uiinic- tr~auor is angry," said a White House aide. "Tae President himself is as angry as everybody else over here." If Reagan was losing patience, it was bets,-- the failure to negotiate a with- drawal of Loops from Lebanon was be- corning a maior obstacle is the broader Middle Fast peace initiative he proposed on Sept. 1. According it, that plan, the Is- raeb-occupied West Bank would be linked i,: z loose confederation to Jordan. A)- though the officials who met at the White house last week agreed that the U.S. sJ')ouio pu. addition) pressure or Israel to get the stalled talks moving. they appar- ently de cidexi on little more than what a se.- tior diplomat described as renewed U.S. pt>sr coupled with a very strong and very sincere expression of presidential frustrauort" Added the official: "There are not really new ideas or proposal's"" The current impasse is in pan the re- stilt of an Is:,aeli demand that Jerusalem and Beirut be the sole venues for direct L- a.eii-Lebanese talks. The Lebanese.. who have aireacy mane concessions on several procedural points., refuse to meet with the Israelis in Jerusalem on the grounds that to do so would be to recognize Jerusalem's status as the capital of Israel, something even the U.S. has not done. White House officials seem increasingly convinced that Israel is deliberately ;imposing impossible conditions in order to prevent the talks from beginning. This. in turn, would post- pone consideration Of Reagan's broader plan, which the government of Prime Minister Menacbern Begin opposes. Any delay in addressing Reagan's Sept. I plan wound also enable Israel to pranced with the expansion of .1ew h settlements on the West hark, thereby gradually making any form of Palestinian sovereifnty more difficult to accept The Administration was also angry last week about a Senate: Appropriations Subcomrnilice amendm ~yOF .add 5.475 million to the pro T 3 bil r lion in U.S. economic and military aid to Larne) in 1983. Fearing that such an in- crease in aid would signal that the U.S. Was unable, or unwl?lin.g. to exercise any pressure on Israel, the White House lob- bied hard against the proposal, Israeli Foreign ).riintst.e? Yitzhak Shamir said last week that this White House action, which be labeled an "unfi)end)v act," would be "detrimental to Mideast peace." In response. Witte House Spokesman Lary Speakes said that the A.dininistra- tion was ..puzzled that Israel am call into Question our good faith." He noted that the Adininisuation aic request for Israel alreadv represented an increase of 21% more than the amount spent in 1982, and that any further increase could come only at the expense of other allies. "It was a give Hu ein the necessa- mandate. Says a sere. L.S. diplomat , The P.L.O. today is findiat it incredibly .t-'cu1; In make the simplest decisio>-" I-n Israel, rricanwrji :login was still concerneci with the corn: --i:sion of inquiry Lnvestif:ation into the rn:.~.stcre of an esti- rnatrc 900 Palestinian by Lebaraese Christian militiamen _, two :refugee camps in Beirut last Sepi-mbeI.. Although Begin hac been warned he was "lia- ble in be harmed" by commission's finds. to declinec to xcrcise his right to reappear before toe F rel. In a three- page letter be argued tie had in his appearance before the c,rnmissicin five weeks agu, that Israel crrces in Beirut "never imagined" tha be Lebanese Christian force enter as the camps .`would want to--or be hit io--perpe:. tSZLe a massacre." The urgency o' rem.:,ving foreign forces horn Lebanon wa pointed up Iasi. Reagan and Middle Last -'iegotiator Philip Habib exerfer at the %Wte Har e Trig President hinuelfi.s as angry ac everybody else over here. I J etreful}v arrived at figtu.e. and we think it week whet Israeli and l etaanese troops should be no more, no less." he said. clashed directly for the ---mi time sins Asked if the Administration sought to Isr.-el's invasion in Jut . One Israeli send the Israeli government a political or was wounded, and two Li nanese soldiers an economic message, Speaker said` were killed Meanwhile. v oarnee between "Both." lndexx1 the idea of putting some Druze fighters and Chris an militiamen sort of economic pressure on Israel is continued in the hilly C ho.,t region tioutb- gcin~ ink ground in Washington. Said a east of Beirut Lebanese officials con. White House aide: "Ab&olutely do not dis- plainexi that the Israeli fo xs in the area count the threat of an aid cutoff.'" were preventing the Labs Ar,e army it= moving in to defuse the sit aaiion mr be U.S. is not rtservuig all its anger ' - With King Hussein d ,r in Washing- ! for Israel. Officials in Washington are ton next week to discuss x cagan's everts becoming increasingly disappointed by initiative directly with h,_-:: for the first the P.L.O.'s inability to find a way to join time, it has become all the none mgemt .for the Middle Bast peace process. Washing- the U.S. to persuade the Brach gcrverv- ton hope that the P.L.O., which %-v-as not meni to begin negotiatint a withdrawal invited to participate in the talks pro- from Lebanon. As a senio' c plornat said: posed by Ream, 'will ask Jordan's }Ung "Even the nest s a'.e got only a R IL t20 1 C 1~6~9etRDP93sD096rF~40Q, ?1;~Ar of e is getting titan in any negotiations. Torn between n- shorter by tine day. _...E . s...a C M . val factions within the P.L.O., Chairman Aepwrtrd b> D O U S U S s b?,... ,,,,,,,,,4-no, a Ya_SSer Arafat has So far been atnahae to Approved For Release 2005/12/14: CIA-RDP91-00901R00 e ~?. diA L tiLLi~:~ ON Pr;G U. S. NEWS & WORLD RE 20; DECEMBER 1982 Interview With Vice Adm. Bobby R. Inman, Former Deput U.S. Intelligence Agencies "Still Suffering From Scars" It has taken a severe buffeting in recent years, but the nation's intelligence community now is bouncing back, says a top authority In this size-up of the Central Intelligence Agency's strengths and weaknesses. Q Admiral Inman, the American Intelligence community Is emerging from a decade of turbulence-scandals, investigations' and other embarrassments. Just how does It stand today? A We have not yet recovered from all the buffeting of the last 10 years. We are still suffering from the scars. If one only had to worry about the central front of Eu- rope and the danger of massive hordes of Soviet troops crossing that line, then our intelligence is good. Not just good-superb. But if you believe, as I do, that the next decade will be dominated by competition for raw materials, markets and influence in unstable Third World nations, our capabilities are very marginal at best. Q What do you now see as major strengths and weaknesses of the intelligence community? A We're at our best in picking up warnings about a major use of Soviet force outside their borders. We under- stand Russia's military establishment. We can count what they have, understand how they operate it, how they train, how they use it. That, essentially, is the good news. Q And the bad news? A When you turn to the rest of the world, we are very restricted. We're reasonably good in parts of the world where there's been conflict for a number of years-the Middle East, Korea. But when you move away from there, to our allies or neutral countries, our knowledge is very thin-at times pathetically thin. Q What specific example of this weakness can you cite? A If we had known in more detail the economic situa- tion confronting our allies, the government might have handled the Siberian-natural-gas-pipeline problem some- what differently. The intelligence community did not know enough, or speak strongly enough, about the econo- mies of France, Germany, Britain, which were going to dictate their reactions. You've got to get detailed informa- tion in front of policymakers before a decision is made. Trying to block the pipeline was a sound idea but one that should have been pushed three years ago- before contracts were signed, equipment produced and ships ready to sail. We did not have the in-depth knowledge to prompt smart decisions. Q What is the administration doing to remedy prob- lems at the Central intelligence Agency? A When the new administration came to office in Vice Admiral Inman, 51, resigned from the CIA in June. Before holding that post, he directeru~l~a Agency. During i areer he also ea Y ed naval intelligence and was vice direc- tor of the Defense Intelligence Agency. was that he didn't see these things and that it The investment rang tine human intelligenc various technical appro in the technical-espiona failure, we won't-suddenly lose all capability. We are emphasizing analysis of information more than collection of it. You can collect all that you want, but, ultimately, it's the number and quality of analysts in CIA and the other agencies that are going to make the differ-, ence in whether you really can provide high-quality, fin- ished intelligence to leaders. This rebuilding cycle is going to take a long time, simply because you do not have skilled analysts waiting out there to be hired. They must have great in-depth knowledge on countries all over the world, with language abilities to read the local press. You have to develop that kind of talent, and it takes years. Q Are you concerned about charges that the Reagan admin- istration Is drawing the CIA too deeply Into what are essentially political matters? A I think we have to run the risk of politicization to make certain that the intelligence being produced is rele- vant to the critical issues we face. If you leave it to its own devices, the intelligence community will write scholarly tomes that can fill your walls. The political leader has to be pretty critical of what he reads; otherwise, CIA reports will become longer, more abstract, more academic and thus have little value. So I'll run the risk of having a very close dialogue be- tween the decision maker and the one who is going to produce intelligence. You have to have faith that the CIA's professionals are strong enough to make straight calls. Q Some say that CIA Director William Casey is practicing an- other form of politicization-pressuring analysts to tailor reports to support positions already taken by political leaders- A I've seen the charge, and it's just false. I never once saw any effort to force the analysts to go back and redo their analysis to fit some view picked up somewhere else. Bill Ca- sey is a man of strong views, and on any given day he may well arrive at the office with a strong view on an issue from having read something the night before. He will ask: "Is this right, or is it not right?" If the report comes back saying, "That's not right; here are the actual facts," his view changes. Q What do you think of assassination, overthrow- ing foreign leaders or milder forms of covert action? A The CIA performs three functions: Foreign intelligence-espionage in other na- tions; counterintelligence-blocking some other nation's espionage effort, and covert action. I have no difficulty: with the first two functions. But the po 1 Rd WCy Wfj.rert action is greatly overemphasized and problems tend to be neglected. I am not an enthusiast. Cl. What are your objections to the use Approved For Release 2005/12/14: CIA-RDP91-00901R0 NEWS4%TEEK 20 December 1982 CENTRAL AMERICA Congress and the CLA: Reinin~.g In a Secret War After the Reacan administration author- ized its major covert operation in Central America last year, Congress was told that the only objective was to cut the arms trail from Nicaragua through Honduras to reb- els in El Salvador. Now congressional sources say the CIA is no longer denying reports that the operation evolved into a campaign designed to harass and destabi- lize Nicaragua's Sandinistas (NEwSWEEK, Nov . 8). Last week the House of Represent- atives signaled its intent to tighten the CIA's reins. By a vote of 411-0, the House adjusted an appropriations bill with an amendment barring the CIA and Pentagon from spending funds "for the purpose of overthrowing the government of Nicaragua or provoking a military exchange between Nicaragua and Honduras." And the House Intelligence Committee summoned CIA di- rector William Casey to a secret hearing this week to explain the agency's operation in Central America. The House amendment was a watered- down alternative to a tougher version pro- hibiting use of the money for any military activities in Nicaragua. The compromise language did not endanger the CIA's fund- ing for approved operations. But its warn- ing could not be ignored. Some Intelligence Committee members suspect that in the past the CIA has offered less than candid briefings on its aims in Honduras. Casey will face a House committee heavily loaded with congressmen who oppose on principle any covert attempt to overthrow standing governments. Their mood suggests that the agency will have to make its case for covert action more explicitly-and to keep secret wars under closer control. Approved For Release 2005/12/14: CIA-RDP91-00901R000400100001-5 E ArPEJR 'D Approved For Release 7DW/1v44Y:OM--11-009 C j: va+_ --- I n r-nr.L' rrT-r] 1 nQn Background Noise on Covert CIA. Plo By PHILIP TAUBMAN WASHINGTON -- In the 1950's and 1960's, the Central Intelligence Agency, had license to do pretty much what It pleased. Generally, the White House didn't want to know the details of the agency's covert paramilitary and politi- cal action operations, the better to preserve the Presi- dent's "deniability"; Congress didn't really care; and rigorous secrecy kept the public in the dark. Lately, after news accounts of the agency's wide. ranging operations in Central America, senior intelli- gence officials in the Reagan Administration have prob- ably looked back at those earlier times with some envy. William J. Casey, the Director of Central Intelligence, and his aides have been reminded that for a variety of rea- scros this is an era of limits for covert operations. Mr. Casey, a veteran of Allied intelligence operations during World War II, took office determined to increase the use of such activities. Mr. Casey and other national security officials in the Administration felt that the United States, by not mount- ing more paramilitary and political action operations, was missing a chance to further its interests in regions where conventional diplomacy wasn't successful and the Adm. Bobby R. lnman, Mr. Casey's top deputy until he quit earlier this year, partly over differences about policy, was struck by the doubts in the 18 months he helped run the C.I.A. "Concern about the ex- tent of covert operations is found in substantial depth among intelligence profession- als, " he said in an interview earlier this year "They are overwhelmingly concerned about the quality of this comi. try's foreign intelligence, and they worry that secret opera. lions, especially when they are exposed and criticized, impact adversely on the more impor- tant job of foreigrs intelligence collection and analysis." Debate about undertaking the Central American opera- tion was intense within theaa- C:.:"A iv,-il_,-D open.use of military force was unacceptable. The Administration chose Central America to test the approach. A year ago, according to national security offi. cials, President Reagan approved plans to develop and 51 Wort at least one paramilitary force in the region that would be used to interdict the flow of aims to guerrillas in El Salvador. The C.I.A. reported that Cuba and the Soviet _ Union, with assistance from Nicaragua, were providing weapons and ammunition to Salvadoran Insurgents. The plan also called for identifying and helping Nicaraguan political leaders who could galvanize opposition to the leftist Sandinist Government in Managua. Doubters Within the Agency But Casey and Co. Perhaps did not anticipate the en- trenched resistance to secret operations that developed in Congress and even in the agency's own bureaucracy fol- lowing the disclosure In the mid-1970's of past intelligence abuses, most of which involved activities. such as assassi- nation plots and attempts to overthrow foreign govern. ments. Within the agency, a whole generation of young of- ficials moved into senior posts convinced that covert operations, no matter how sound and necessary they might seem, should be used sparingly tv protect the agency from further embarrassment. Approved For Release 2005/12/14: CIA-RDP91-00901R000400100001-5 Approved For Release 2/13 : fEl.RP,~9)l -00901 R0004 17 December 1982 By NILES LAT'HEM VVAS} NGTON - CIA Director William Casey is on the slicis and is expected to be the first casualty of a reshuffle of Cabinet members and aides by ]'resident Reagan,'lie Post learned last night.. k'hite House and in. telligence officials claim no formal deci. sion has been made on any staff and cabinet changes. But they note that the 7&yea- old Long Is- land lawyer has lost the confidence of Rea. gan and the all-impor? tart "old boy network" I of intelligence profes sionals. Among the reasons for Casey's impending departure, say the sources, are: ? 'Incompetent" han. filing of intelligence in. formation by agency - officials. ? The apparent way the CIA's covert war against Nicaragua has gotten "out of eontroL" What originally was supposed to be a police action to stop the flow of arms from Nicara- gua to guerrillas in, Ed Salvador through Hon. duras is now on the verge of starting a full- scale war, say sources, and has enraged Secre- tary of State George Shultz. ? Casey never recov- ered from the Senate Intelligence Commit- tee's probe of his busi- ness practices and his appointment of Max Hugel, a _ man with a questionable business past, as director of cov- ert operations. ? The political fall- out from Casey's de- mands for a CIA role in domestic spying in his presentation of the ad- ministration's intelli- gence charter to Con- ^WockNed CL4 DIrecf+a Makarn Case r nay Pnt victitnt of President Reo9on's res ff Casey, known as a has been chose., so far, political operative more white House officals than as an intelligence said. specialist, is an out- sider in the Reagan cir- cle who joined the cam- Ahgn in 1950, replacing Reagan's chatrmaa John Sears. The CIA ,Job was a political re- ward. Nomrooeasor to Casey But the opening would give Reagan an oppor- tunity to put. an end to the war betwo his top advlsCrs, thief of staff James Baker and counselor -llydvtz Meese. Baker is krxwn to covet the top Mkjotx Approved For Release 2005/12/14: CIA-RDP91-00901R000400100001-5 Approved For Release %O1~ N 00901 F ERTI= 16 DECEMBER :1.982 ON ?AGE14 Nicaraguans warn Honduras on aid to rebels By Oswaldo Bonilla LMwed Free -nre.nalfonW MANAGUA. Nicaragua -- Nicara- gua yesterday accused Honduras of aiding rightist commandos staging attacks acrossti;the border and warned that a "more open conflict" could erupt between the two.;coun- A Foreign Ministry statement*sent to Hondura6 and broadcast by radio stations here said "many wounded counterrevolutionaries" were being treated in Honduran hospitals..-., "We only can call it open complic- ity by Honduran military and-civil- ian authorities in the border zone," the statement said. "They threaten to unleash a more. open conflict, with consequences tliiat cannot continue to be ignored:". .The statement, signed by Foreign -Minister Miguel d'Escoto and sent to Edgardo Paz Barnica. Honduras' for- eign relations minister. said rightists had been retreating into Honduras after staging attacks on Nicaragua, which is ru)ed.by a leftist junta. "They regroup their forces Iin Hon- duras) and prepare to launch new., aggressions, with neither the Hondii ran military nor authorities of your illustrious government taking any steps to control and limit these crim- inals." the statement said. The statement said there had been seven attacks recently by the right- ists, the latest staged Monday ,near the Nicaraguan border -hamlets--of Cerro Nubarrones and Cerro de Je- sus, both about 115 miles north of Managua. -The -statement= said the rightists suffered at least 26 casualties, while seven Nicaraguan soldiers were kdlled. and 11 wounded in the two attacks. Michael Ratner, director of 'the left-leaning US. National Lawyers-.. Guild, said during a news conference here Tuesday that his 7.000-member group -had filed a suit on behalf of Nicaraguans wounded in attacks al- legedly backed by the United States. Ratner, on a fact-finding mission to Nicaragua. said ?the suit was filed against President Reagan, CIA Pirec- /, torr William Casey,, U.S. Ambassador to Honduras John Negroponte .and several other officials in Washing- ton. He said the suit, filed in federal district court in Washington, called for the United States to pay damages to Nicaraguans wounded by the rightists. 'Nicaragua has accused the .United States of funding the rightist guerril- las who operate out of camps in Hon- duras. Approved For Release 2005/12/14: CIA-RDP91-00901R000400100001-5 Approved For Release 2005/12/14: CIA-RDP91-00 ,t, ART.L. L_r._t A: Cii 16 DECEMBER 19 as Congress Doesn't meant to K' h Our I)irtv. Little mar in Public Last week, Rep. Edward P. Boland (D- Mass.), chairman of the House Permanent Select Committee on Intelligence., promised to give the "dirty little war" in Nicaragua his personal attention. "I can say that the committee certainly does understand its obligations to rein in activities which can get out of control or which could threaten to involve this nation or its allies in a war," he told his colleagues. That was enough for the House. It passed by 411 to 0 a Boland amendment that prohibits the CIA or the Defense De- partment from using taxpayers' money "for the purpose of overthrowing the govern- ment of Nicaragua or provoking a military exchange between Nicaragua and Hondu- ras." But it is a year since The Washington Post disclosed a $19 million administration plan to subvert the Marxist government of Nicaragua. In all that time, Reagan offi- cials, including the president, never have denied the plan or its purpose and have kissed off all queries about it. If the House Permanent Select Commit- tee on Intelligence was exercising its watch-. dog function, we have no evidence of it. Under the "reform" of the intelligence over- sight system on Capitol Hill, the CIA re- ports only to two select committees, whose members promise not to tell anyone what they have discovered about covert opera- tions. They can't even say that CIA Direc- tor William J. Casey went before them to testify on Nicaragua the other day. It was for that reason that Rep. Tom Harkin (D-Iowa), a liberal leader in the House, introduced an amendment that for- bade the CIA and Defense from carrying out any "military activities in or against Nicaragua." . Unlike the Boland amendment:, which only prohibited the overthrow of the Nicaraguan government, not all military activities, Harkin's amendment had little support. It's dicey to be seen as defending a communist regime, even against illegal U.S.: activity. What we are doing in and to Nicaragua we learn from the press. Newsweek had a cover story called "America's Secret War," in which our am- bassador to Honduras, John Negroponte, is depicted as the generalissimo of the coun- terrevolution that keeps the government of neighboring Nicaragua in a constant state, of nerves and military alertness. Negro- ponte, according to Newsweek, deals direct- ly with the commander of Honduras' armed forces, Gen. Gustavo Alvarez. The CIA, says Time magazine, now has 200 agents in Honduras organizing follow- ers of Nicaragua's despised former dictator, Anastasio Somoza, for border raids, bridge bombings, kidnapings, village burnings and other exercises that the Reagan adminis- tration condemns when other countries en gage in them. Supposedly the Boland amendment was acceptable because it protects the CIA's, cover story, which is that its goal is to in- terdict the flow of arms from Nicaragua to the rebels of El Salvador. That requires "military activity." If Boland's intelligence committee in the past year tried to "rein in" the operation, it has failed. The press reports stepped-uv violence in the area. Did Boland ever won- information-and doubts--with their col- leagues. If they succeed in shutting down the dirty little war, we won't even know that der if the situation was getting out of con- trol-something he now promises is his committee will not permit-to happen? We don't know. He and his fellow com- mittee members break their own rules if they tell. They are sworn to secrecy about the secrets they hear. They cannot share The Somocistas boast to reporters of their imminent invasion of Nicaragua, and the bloodbath that will follow. Does the House Permanent Select Committee on Intelligence ask the CIA about things like that? Possibly, we will learn something about what is going on in court. Seven Ni- caraguans who claim to be victims of U.S. policy have brought suit against the Rea- gan administration. Among them is Dr. Myrna Cunningham, a half-Indian Ni- caraguan health official who says she was kidnaped and raped a year ago by Miskito Indians, trained as counterrevolutionaries by U.S.-backed Somocista guardsmen. Three British members of -Parliament, who recently concluded a tour of Central America, came through Washington this week to tell the administration as "candid friends" what a mistake it is to write off the government in Nicaragua, which despite its flaws is addressing the concerns of the people. When they called on J. William Midden- dorf II, the U.S. representative to the Or- ganization of American States, Stanley Clinton-Davis, a Labor MP, asked him di- rectly if U.S. policy is to overthrow the Ni- caraguan regime. Middendorf replied, ac- cording to the Englishmen, that "person- ally" he would be delighted to see it hap- pen-although, he added, it is not govern- ment policy. Middendorf, through a press aide, denies the statement. Most people think that overthrow is the Reagan policy. With a stonewalling admin- istratagn and a gagged oversight committee, it's hard to find out-and even harder to McGrory Approved For Release 2005/12/14: CIA-RDP91-0090-1l 000400100001-5 A roved For Release 2005/12/14: CIA-RDP91-00901R00 ARTI= AP BOSTON GLOBE ON PAGE ___. 15 DECEMBER 1982 Is US fighting a secret war in southern SAMMY ADELMAN continent, and there is much evi-: week before the attack on Lesothc, On the night of Dec. 9, South Af= dente tosupport such zlaitnts: e ~- .especially when there appears to be -r ican commandos entered Maseru. - Apart from its illegal occupation an identity of interests between -the capital of Lesotho, and killed 42 of Namibia and much of southern Washington and Pretoria in a -people. Most of these alleged Angola. South Africa has launched number of areas, such as the link- "terrorists " .'were in bed at the attacks against Mozambique _and ' In of the withdrawal of "Cuban time. = Zimbabwe. It has carried out g troops from Angola (there to defend The Lesotho government, in bombings and assassinations - frc against trust -such attacks as oc- condemning this violation of its Swaziland. Mozambique, Botswa- curred last week) with Namibian sovereignty. pointed out that all na and Zimbabwe, and 'its agents Independence, and a common art-- those killed - including women and have bombed and burgled ANC and tulle toward a perceived Soviet --hildren - were refugees from SWAPO offices around the-world.-., : threat in the area. apartheid. Mozambique and Lesotho have The fact that both countries are The attack on Lesotho was the claimed -that rebel groups aimed at- so keen on creating a "cordon sang- latest in a long line of what South overthrowing - their governments taire ar and South.Africa is an Africa calls "pre-emptive strikes" are :being- based and trained In -indication of the -growing threat against states harboring guerrillas South Africa. Indeed, on the night the ANC presents to both white r n'- from the outlawed African Nation- the South Africans 'attacked nority and American interests i-n al Congress (ANC), South Africa's Lesotho, rebels blew up an oil refin- the region. :major national liberation organiza- erg' in Beira which supplies Harold Macmillan's "winds of xion. Mozambique, Zimbabwe and - change" have finally blown to the Black states in the region claim. Malay __the Reagan tip of Africa, vet after the n er an Admiriistra- tion. with Its policy of "construc likes of Somata in Nicaragua and Sammy Adelman. a South Afri- the shah in Iran. America seems can - student who was banned tive engagement" toward Pretoria.. not to have learned that continued from that count is now stud ~- there. has been a dramatic increase. ~' b in support for the white minority support for unjust and repressive ino at Harvard Law Scirtregimes is ultimately inimical to its regime: Besides supporting South own Interests. Africa in the United Nations and With President Reagan having the international Monetary Fund, stated that the United States will the Reagan Administration has not abandon "a country that has sought ways of circumventing em- stood beside us in every war we bargoes against the export or mill- ever fought," his Administration tarn and nuclear hardware and rapidly seems to be embroiling technology: high-level military sin'- America in yet another unjust, nr- t.acts have been reestablished after win situation. Indeed. US support the cool relationship that existed for the supposedI' reformist gov- under the Carter Administration, for th t of Prime Minister P.W. and William Casey, director of the Botha has served as a signal to the CIA, recently held talks in Pretoria. effect that internal repression. in Recalling that South Africa in- the interests of "stability' , wilt be waded Angola in 1976 at the behest tolerated - and the Increase in the of the United States. and that nu- number of bannings and deten- merous allegations have been made . tions without trial substantiates concerning possible US and however, that South Africa is iri such as that by South Africa's for abortive coup attempt..launche Ultimately, the only solution-IV-to from, South Africa against-the Sey-? the problems of South Africa ;are chelles, it Is justifiable to ask political-solutions, involving facing whether the United States essay not. up to the central question of major- be fighting a "secret war" in south- Ity rule =in a unitary'state. By..us ern Africa as well as in Central support for.white South Africa. the America. - -United States, ever prepared, to There can be little doubt that preach human rights to totaliti,-i- South Africa's destabilization of an (but not, according to Jeane. southern -Africa is taking place Kirkpatrick, "authoritarian") N g imes,lis faewtati the mostro- Approved ~Ti -ckD ,1tQ9~SQ 4F~0Qr1t `of range t e being kept informed during visits Hitler. Approved For Release 2 ?8,5/12/14: CIA-RDP91-00901 AMI HERALD (FL) 11 December 1982 Casey's CIA At It Again By SANDY GRADY Knipht?Ridder7iewangpcrz Writer WILLIAM CASEY is a spy out of the good old days, when agents were parachuted be- hind enemy lines or rowed ashore at night on rocky coasts. Never mind that Casey's World War 11 daring was mostly confined to a desk: .; ' Or that, too often, the agents were caught on the spot What worries experts in and out of Congress is that Casey's nostal- gia for those free-wheeling days is rapidly getting the Central Intelli- gence Agency into trouble in Cen- tral America. "Nobody really knows what Casey is doing in Nicaragua." said a man close to the Senate Intelligence Cor..mittee. "But there is fear that he's got the agency out of control." YOU can't blame the senators for lacking full-blown confidence in Casey. At 69, he is a brusque. arrogant man with dewlap jowls. thick glass- es, and it gravelly voice in which he mumbles. One Cabinet officer joked that the CIA wouldn't need code for Casey because "even we can't understand him" Except for a couple of honorary Presidential commissions, Casey hadn't been mixed up in real spook- cry bbr 35 years. He'd made a for- tune as a New York tax lawyer, writing such profitable books as How to Build and Preserve Execu- tive Wealth. There was only one solid reason to make Casey the head of the CIA .-+- a reward for being Ronald Rea- gan's 1980 campaign manager. One Republican close to Reagan's ap- pointive process said. "It's a job that will keep Casey out of sight." NOT true. Casey stumbled onto the front pages by naming Max Hugel, a brassy politician, as his No. 2 man at the agency. Hugel quilt. But his old, questionable business Then in April, Adm. Bobby Inman resigned as Casey's deeputy. Inman was the most respected pro is U.S. intelligence. There is suspi. cion that he was the governor who kept Casey from going on any wild CIA joyrides. Now Casey is on the verge of hit- ting the headlines again, and riot in a fashion that will make Reagan happy. Casey's new notoriety springs from his covert operations in Cen- tral America. which Casey has ex- panded into the most full-blouwr U.S. paramilitary action since tn. early days of Vietnam. The plot was hatched a year ago by Casey, then Secretary of State Alexander Haig, and Haig's assist- ant Tom Enders, who had won his spurs in 1970 as tht: deputy chief in Phnom Penh coordinating,the secret bombing of Cambodia. Reagan reportedly signed on to the Central American caper last De. cember. Ostensibly. the