OFFICIALS REPORT OUTSIDE INCOME, GIFTS

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP91-00901R000400110002-3
• Release Decision: RIPPUB
• Original Classification: K
• Document Page Count: 40
• Document Creation Date: December 19, 2016
• Document Release Date: October 17, 2005
• Sequence Number: 2
• Publication Date: May 30, 1982
• Content Type: PREL

STAT
Approved For Release 2005/11/28: CIA-RDP91-0(
UPI
30 May 1982
officials report outside income, gifts
By SUZANNE F. GREEN
DATELINE: WASHINGTON I
In a year of financial crunch for many Americans, top Reagan administration
officials have disclosed they received hundreds of thousands of dollars above
their government salaries.
The officials disclosed investments,- business activities and gifts on their
1981 annual financial disclosure statements. filed with the office of Government
Ethics in recent days.
Of 12 Cabinet-level officials whose statements have been released, only three
budget director David Stockman, Health and Human Services Secretary Richard
Schweiker and Interior Secretary James Watt. -- listed their government salaries
as their major source of income for last year.
Treasury Secretary Donald Regan, former chief executive of Merrill Lynch and
Co., reported earning at least $715,455 in outside income - more than 10 times
his $69,630 salary as a Cabinet officer.
Regan, who also reported he and his wife hold at least $1.3 million worth of
assets, indicated most of the income was from trusts and previous business
activities:.
The disclosure reports require federal officials to report ranye5 of income
in different categories and most computations are for minimum amounts. They have
stirred some controversy.
Attorney G,,-,neral William French Smith, who disclosed earnings of $+37,500
above his $69,630 Cabinet salary, accepted and then returned $50,001 in
severance pay from a California steel firm owned by Earle 11. Jorgensen, a member
of Reagan's kitchen Cabinet.
Smith, a Los Angeles attorney before taRing office, also had to unit tax
deductions to the actual cash invested in oil and gas drilling tax shelters
after it t +.s reported he was eligible for deductions far exceeding his cash
invest?s'ent.
CIA Director William Casey, also a wealthy lawyer beforM joining the
ridmministration, reported at least $442,000 in outside income last year -?- mostly
from capit,.l gains and stock dividends. The figure includes a $21,0110 N.Y.
state tax refund.
A controversy over reports that several donors used presidential gift, in
promotion campaigns prompted the White Hou>e to send out at least two letters of
reprimand, and issue a blanket statement that use of presidential
acl~nc~ r:,.er e .eats as promotion devices is not acceptable.
. Among thcA i t9 d Fir I le erg{ ~ Bk~ IP-r 9 rz~ r ,40~ s3 sre~ e $1,500
earrinpn, two $1,000?-each belt buckles with the initials ''RR'' and ''NR,''
 Approved For Release 2005/11/28: CIA-RDP91-0q
0
STAT
The materials in the AP file were compiled by The Associated Press. These
materials may not be republished without the express written consent of The
Associated Press.
May 29, 1982, Saturday, PM cycle
SECTION: Washington Dateline
LENGTH: 720 words
HEADLINE: MICHAEL J. SNIFFEN, Associated Press Writers
BYLINE: By ROBERT PARRY, and
DATELINE: WASHINGTON
KEYWORD: Casey -Stocks
BODY:
CIA Director William J. Casey, who sees secret government estimates of
The Associated Press, May 29, 1982
world oil supplies, sold about two-thirds of his oil stock in 1981 _ a year when
a glut sharply cut the value of the industry's stock.
CIA spokesman Dale Peterson said Casey did not participate in the decisions
to sell more than $600,000 in oil stock, but the spokesman declined to say if
Casey knew in advance about those decisions.
Peterson said the sale decisions were made by Casey's investment adviser,
Richard Cheswick, who refused to comment on the trades.
in taking office as CIA director, Casey broke the precedent of his two
predecessors at the spy agency by keeping control over his multimillion-dollar
stock portfolio, which included extensive holdings in companies with large
foreign operations.
Casey's two predecessors and most other top Reagan administration officials
with access to similar secret information set up blind trusts for their stock
holdings or divested some stocks to avoid potential conflicts of interest.
Casey's annual financial disclosure statement, released Friday, reported
that the CIA director sold from $665,000 to $1.5 million in oil-related stocks
last year while purchasing $45,000 to $150,000 in such shares.
The Associated Press, May 29, 1982
Through those transactions, Casey reduced his portfolio in oil-related
firms by between $620,000 and $1.4 million. At the end of 1981, his remaining
oil-related holdings were worth at least $450,000 and possibly more than
$700,000.
exact figures were not possible to obtain because the- disclosure sta-c,,Lnt
requires only ranges of values for each holding and transaction.
Overall, Casey sold all his stock in nine companies in the oil industry
including Atlantic Richfield Co., Standard Oil Co. of Indiana and Superior 011
Corp. _ and kept some stock in four others.
Atlantic Richfield, Standard of Indiana and Superior are among 20 moor all
companies whose stocks lost 24.7 percent of their value in 1981, according to
Standard & Poor's composite oil stock index.
In addition to his annual government salary of $69,630, Casey reported that
he and his wife earned outside Income of at least $441,687 and possibly more
than $838,287. Nearly all of this was earned by Casey himself.
About half of the outside earnings came in capital gains on stock sales. Oil
industry stocks accounted for between $128,500 and $282,500 of the capital
The Associated Press, May 29, 1982
gains, which totaled $238,500 to $408,500. The remainder was divided among
dividends, interest on government notes and fees from his work prior to taking
office on Jan. 20, 1981.
As late as December 1980, the Energy Department had predicted that world oil
supplies would remain tight indefinitely and that oil prices would rise.
But early in 1981, the CIA reversed its 1977 prediction that the Soviet Union
would become a huge net importer of oil by 1985. The new projection said the
Soviets would be able to supply their own oil needs during the 1980s.
The new CIA estimate became public in mid-May of 1981. Peterson said he could
not comment on when Casey might have seen the first classified version of the
new estimate.
By spring of 1981, published reports were appearing that an oil glut had
developed worldwide. Between taking office on Jan. 20, and May 22, 1981, Casey
had net sales of oil stock worth from $415,000 to $900,000.
The CIA also regularly supplies the Energy Department with data on world oil
production and events that affect It, according to J. Erich Evered, head of the
Energy Information Administration. Some of this information is classified.
The Associated Press, May 29, 1982
When President Reagan decontrolled domestic oil prices in January 1981, the
average price of gasoline in the United States rose from $1.27 per gallon to
$1.39 per gallon in March, but to the surprise of many energy experts, it
declined for the rest of 1981.
Casey also reported receiving four gifts, with a total value of $1,675.
Washington public relations executive Robert K. Gray gave him a $1,200 Boehm
bald eagle.
He also received an ancient pottery jug valued at $100 from the director of
Israeli military intelligence and a necklace, bracelet and set of earrings from
the director of Egyptian intelligence.
Peterson said the two foreign gifts would be turned over to the U.S.
government as required by law.
Approved For Release 2005/11/28 : CIA-RDP91-00901 R000400110002-3
 Approved For Release 2005/11/28: CIA-RDP91-00901R00
.L11'~' C Ia n /' 'P Z ?
ON PAGE...:-- .. a. ,
By Harry Jaffe
1','ASIIINGTON--This ',year, the Reagan ad-
ministration will pay out $100 billion more than
it takes in. Next year, according to the -best
;'st.iniates now available, the ad.ministration
} ?4b'll'
CHICAGO TRIBUNE
29 MAY 1982
..peers defult of Mule t lan p18 on Many programs are being crit but others are '! a. b r
' '~~
In Washington, ?tlle government's company?,_
to,,t?n, the iterhs thzit make up the _ budget .'surveillance and listening it 4vif.es ground the ding sway over nxire dispassionaae, c .r ci
surface in'strange places:: The.. Fcderal Labor,? world. New devices must operate in the face of -analysts in the agency. A staff merrmber ?iri an
Relations Authority is not as.weli known as.the Soviet advances, in, jamming 'U.S. Cl(lctronic ntelliger,c:e oversight pall no., ~I the gt,?zerai
Defense Department or the Central Intelligence apparatus. perception
Ag,ncy, hut r"i,hA t eoently mace ne;~:s when While, other federal a eneAcs shrink; the CIA., -w eve seeing a grauu ,I ideological shalt to i
r.'ta cc ;authority mem,,zrs, spent: $150,(100 for . plans to d o: urale its physics? 'plant` wiith :a new t h4 intelligence eontmur `. to:au d tns new, ful'nishn gs: Besides $328.52 fora "muffin, 0113 -, lilliori :,quarefoot bU7.lUrrsg, planned , for ad inloistra',ion's olobtrl.pe u.,;. uL ?vl+'.;v," he sad
stand," the bill included $1,712.17 each-a total c:onstr?uctioa in the next-few years at Langley.'. !'IIE GROiVrH of CI has spurred fears
c f S34'1-5.34 Jor two Barcelona chairs for' In addition; the l:eagan: admtn}Stration gave amor;zrlcivil libertarians ar,d liE>e :i1: that the'
ti:.,r=.iritxan Ronald Ifailghtcn ' ' the. CIA whit mo ney cou} r't ;zy 'S3ie i'Jizite gover:lent will o c;, again b Lluz th" clande:
No one- knows for sure hoc.Yciany Barcelona House lifted the bran onsp,riag within the U.S., stoic political Upvtatio "is l1me,3 at destabillrang
chairs the Central Intelligence, Agency may'. ant it expanded the government's right to keep foreign goverments:' Jay I'c V .:rsll, a. CIA spi
have at its headquarters in I.angicy, Va., just, more information secret. cialist for file ,Center for I' Tonal Security;
cro s the Potomac from the District of Coluni- i. 'Inc CIA, already -heavily croaked; ; is now "Studies, an arrn of the t-r < Tricart Civil Libert :s
bia, but CIA budgets are up ? more secretive than ever. he agency, forbids Union; said "The>rr's c.l : rely a b .lildu A o?
tours; 'visirs' by most journ:ellsts, releasa''of clandestine services sin or, the action arnt of
IIC)~V IiIA the sp;r agency `idle s is tap e..tnployee nanles'and discussion of etxen routine the CIA"
secret. CIA expenditures are hidden in the aperations ,
p eterzell contended CIA gents are working'
budgets of other E;crvermn::xrt and nonf Quern- I rst summer._ .
. the CIA stopped its I longst