FOIA
CIA AGENT CALLED 'RIGHT WING' FOR HONEST VIEW
Document Type:
Collection:
Document Number (FOIA) /ESDN (CREST):
CIA-RDP91-00901R000400130001-2
Release Decision:
RIPPUB
Original Classification:
K
Document Page Count:
70
Document Creation Date:
December 19, 2016
Document Release Date:
November 4, 2005
Sequence Number:
1
Case Number:
Publication Date:
December 31, 1981
Content Type:
NSPR
File:
| Attachment | Size |
|---|---|
 CIA-RDP91-00901R000400130001-2.pdf | 6.18 MB |
Body:
Cord Meyer
Approved For Release 2005/12/14: CIA-RDP91-00901
BALTIMORE EVENING StJ.N
31 DECEMBER 1981
t
CIA a, I I.---
called "right
wi.ng for .
Even hardened veterans of Washington's For those who still persist in believing that I
political infighting have been shocked by this Castro is no real threat, that the guerrillas are
guerrilla warfare against Menges' reputation : democratic reformers and the right-wing mill-"_
and credibility. Those who know him well like ',tare are the main danger,-Menges' rpowerfnl
agency fo.r- helping non-Communist labor. --~
mined to get rid of the messenger er'
. ?
.
unions in- Latin America, are incredulous 'at During most of the Carter administration
the implication of right-wing extremism;" policy was based on the optimistic assumption
According to Doherty, Menges has consist-. that?theSandinistas and other guerrilla groups
ently had "a centrist voice of moderation" on
Central :? could be weaned away from their Marxist con-
American issues and played a decisive
vietions.
role on Reagan's transition team in fighting Intelligence analysts learned to play it safe
,for retention of far-reaching Iand reforms in by avoiding predictions and reporting only the
M.Salvador against Sen. Helms' efforts to re.
hardest evidence. Some of these analysts have
~'p + 8 verseAmerican policy. "Ile saved the re- secretly aligned. themselves with Mengee de-
0 t; .-V i e L'f }l _ for;ns, Doherty asserts- tractors on the Senate committee staff, anal
- ~~ As a consultant to the Defense Department Casey faces a serious problem of internal dis-
WASFI]NGTON during the Carter administration, Menges eras cipline within the agency.
among the first to perceiveclearly the extent The Polish crisis roves that at this time
~N ANCIENT TIMES, tyrants in frustrated . p
anger were in the habit- of~- ordering severe ?f Castro s guerrilla threat but he saw the an we need more intelligence analysts with }
punishment against messerigers who brought.!
them bad news. ~.
In Washington last week, a modern version-~
of this barbaric practice was directed against...
a-CIA analyst b, some Democrats, who ob-
jected to his secret testimony before a Senate
subcommittee regarding Castro's plans to con-
saver in strengthening the democratic center, . Menges breadth of view and willingness to
not in bolstering right-wing dictatorships risk his reputation on anticipating the future:
' His Commentary article is basically a plea As a Reagan official has admitted, "the signs
to democratic socialists to avoid forming'pop- were all there" of the impending internal mill-
ular fronts with the communists in view of the ? tary coup in Poland but no one. questioned the
tragic outcome of such alliances in the past. prevailing consensus that the real danger was
If Menges' record is one- of defending the : a massive Russian invasion.
democratic center against the extremes of In this New Year, we will urgently need
both left and right, how is one to explain the messen ers who dare tell us the truth about
in an unprecedented attempt to destroy the . g
sudden assault launched against hi? Objet-
the dangers ahead. We should reward
credibility and force the resignation of the re- a , not pun- 4
Gently appointed national intelligence officer , t've observers who have seen the classified -: isb them.
text of his Senate testimony do not believe he
for Lana America, Constantine Menges, aeon- exaggerated Castro's role as main supplier of .
fidential letter from three Democratic sena- : arms and trained guerrillas to the insurgen
tors to CIA Director William Casey was . ties in Central America.
leaked to the Associated Press by anonymous With inure experience in testifying before
sources. As reported by theAl', the senators - Paul ! Congress, Menges will learn to avoid expres-
-
: Tsongas (:class.), Claiborne Pell (R.I.) and sions of personal opinion, and CIA Director
Christopher Dodd (Conn.) -charged in their Casey in replying to the Senators has made
letter that Menges in briefing the subcommit- clear his determination to keep him in his job.
tee was guilty of "selective use of informa- The main reason ?or the campaign against
Lion," had "seriously violated the agency's :Menges is his refreshing insistence on telling
long-cherished principles of objectivity" and . the story of Castro's intervention in Central
sa undermined his own credibility as to "call . America in a coherent and convincing manner
into question his future effectiveness" that almost forces his listeners to 'face up to
-. the policy implications of what they are hear!..
While the three senators denied any role in : .
ing
. ' . -
publicirng their private advice to Casey, one
of them made their purpose clear by stating, .
"Guys like Menges should be tucked away
where they can do less harm."
The anonymous leakers described Menges.
:_to the press- as "a conservative theoretician"
and the approval of his testimony by Sen, ?
Jesse Helri (H-N.C.) was cited as proof of his .
' right-wing extremism. An article by Menges
in a recent issue of Commentary was cited out.
of context to drive the-point home. .+1
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Approved For Release 2005/12/14: CIA-RDP91-00901
ARTICLE APPEARED
ON PAC
HUMAN EVENTS
26 December 1981
Did Anderson Columns
Stir Q2ddali to Act?
Although it has been suggested that Nluammaz
Qaddafi's desire to kill President Reagan stems
from the embarrassment he suffered when two Lib-
yan aircraft were shot down by American forces
last- August, intelligence- experts contacted by
HUMAN EvEivi"s believe the U.S.-media may have
provoked Qaddafi into sending his death squads to
kill the President by publishing-false stories of CIA
plots against the Libyan dictator..., -
There is no question that the unstable Qaddafi
believes the U.S...is . out.- to get him. .During a
December 6 interview on-ABC he claimed that the-
U.S. government was "preparing to assassinate
me, to poison nay food,'; and he there made a pass-
ing reference to the CIA.
Qaddafi didn't produce any evidence of such a
plot. His claim that the U.S. wants to poison his
food appears to have been lifted straight out of a
Jack Anderson column that.'appeared in many
U.S. newspapers on August 2S..Aniderson claimed
that "CIA plotters" had come up with a scheme to
kill the Libyan dictator by using a "deadly poison
which could be squirted into his food aitd drink or
injected into his skin through a tiny black.dart.. ? .
Such stories, though denounced as false by intel-
ligence sources in this country, are "taken serious
ly" in Libya, according. to a New, Yarl_Times
reporter, Alarx' Cowell,, who .recently.:visited the
couatry~ th6 e Soviets whd Have vestecYiritezest in
ro , ? t A ?.C olf
'tIieloagevit~f of Qaddafi, hav_zngsupplied hinxLwith
vast amounts of military hardware, have also taken
the stories seriousiyPy publicizing -theta through
their propaganda arms, Radio- Moscow and the
TASS news agency. }
Interestingly, Anderson claimed in his col : i
umn that'_ there- was-:"onv bugaboo" that
troubled .the.- CIA's -_'1_More-thoughtful
strategists. He. " e. -said, '`AssAs8iination.; is
game- that: anyone 'can. play,--and then:'- {
tempestuous, Qaddafl has . his - owes tiller
squads that might- ambush President Reagan
in retaliation."
What Anderson failed to recognize was that -
mere news reports might provoke such retaliation.
Newsweek magazine also carried a much-publi-
cized story about a CIA plan to "destabilize" and
ultimately topple Qaddafi., ..7.
The possibilit
Libyan dictator
Lion official wh
matters on Dect
identified,
suggesting that i
have been s
American press:' According to the Times, "the
official noted that United States regulations on in-
telligence operations prevented its security agen-
cies from participating in assassination attempts
against foreign leaders. Nevertheless, he added,
two press reports bad indicated that the CIA was
planning to kill Col. Qaddafi.
"`These reports had no factual basis," the of-
ficial said, "but they may well have helped to stir
some of the Libyan activity we are now seeing."'
.. Rep. Edward P. Boland (D.-Mass.), chairman
of the House Select Committee on Intelligence,
pointed out in a July 28 statement that "there is a
clear and emphatic. prohibition against assas-
sination by U.S. intelligence agencies" in the Ex-
ecutive Order that regulates those agencies.
Nevertheless, the Soviet` news agency TASS
milked.tbe,Anderson column for all it was -worth.
On the same day that the Anderson story appeared
in the U.S. press, TASS carried a story reporting
that., the "well- informed'': Jack Anderson had
implicated. top U.S. officials in a scheme. to killQaddafi, a reference to Anderson's claim that the
White House was "aware" of the CIA's. alleged
anti-Libya _plotting...TASS repeated Anderson's {
claim that . the. CIA had plans to use. a poison
.against Qaddafi
,.,r TASSt;.as.zwell -as fRadia Moscaw~ ?exploited ,
other anti CIA:columns that Anderson produced .f
in August.- which , alleged that, the ; CIA . was t
"preparing to join forces with totalitarian regimes
and anti-Communist factions" and was "actively
.planning undercover operations" in 'cooperation
-'with such, countries as- Egypt, Israel; Turkey,.
?.Paldstan;'Guatemala South Africa;`Souittt Korea
and- Communist = China.
TASS claimed. that Anderson had revealed a
:``comprehensive program"; by the CIA "for step-
ping up subversive and terrorist operations against
sovereign countries and. national liberation
.movements. "
The information in the Anderson columns was
attributed to "CIA sources" who were not identi-
fied. Also mentioned was a "top-secret planning
document," said to be dated May 9,1981, written
by CIA Director William Casey and labeled,
-RD aa- Planning Document;
p proved For Release 2005/12/14: CIA ca- id,s`~Qsbi~r said a copy'of the' Approved
document had been made available to his- associ-
.MtP 'Rnn McR'
Approved For Release 2005/12/14: CIA-RDP91-00901R0004001
ARTICLE APPEARED
ONZ PACE
As.,ociaied?re,a --? ;
WASHINGTON - Three Senate
Democrats have complained-to CIA
Director William J. Casey that a CIA
briefing they received about the
Caribbean "seriously violated" the.
agency's obligation to provide them
with objective analysis.. t
The three - Paul E. Tsongas of
Massachusetts, Claiborne Pell _ of
Rhode Island and Christopher J..,
Dodd of Connecticut =wrote Casey
that the closed briefing "evidenced a
rhetorical tone and-selective use of.
information that bordered-on policy'
prescription."
The complaint, considered virtual
ly unprecedented in Congress' deal-`
ings with the CIA, could revive criti-
cism that the Reagan administration.
has -politicized the. spy agency by
bringing in ideological conserva-...
tives to fill sensitive positions. ..-:a
. The briefing on the military situa-
tion in Central America. and the Ca
ribbean was given Dec. 10-to mem
bers of the Senate Foreign' Relations
Committee by Constantine Menges,;
the CIA's national intelligence offi-
cer for Latin America
The senators' letter to Casey. was
dated Dec. 1.1 and was obtained this
week by the Associated Press.,
At the session, Sen. Jesse Helms (R.;
N,C.), a committee member, praised
Menges' testimony as "one of the best
presentations I've heard.-It wasn't an
attempt to brainwash any senator.
Menges, considered a conservative.
theoretician, joined the CIA in Sep-
tember after working as a consultant
for the Hudson Institute, a conserva-
tive research and policy center.
In an article in the August issue of
Commentary . magazine, Menges_
blamed Cuba-,for fomenting .terror-
ism and revolution in Central America, an argument that parallels admin
istration charges contained in a re--
: -_;
cent 37-page report on Cuba...,:-.-,*,..:'
PHILADELPHIA INQUIRER
23 December 1981
Congressional - sources, who de- I
clined to be named, said the purpose
of Menges' briefing was to present
supporting evidence for those char-
es and.to assess U.S. military and po-
litical options in Central America.'.
Instead, one Democratic source
said, Menges gave a policy statement
that traced all the problems to Hava-
na and yet offered scant evidence to
support the charges.
Upset with the briefing, Tsongas
-told Menges he considered the- pre
sentation ."an insult" and left the
meeting, according?to sources who,
..,pslced not to be identified:.-
iTsongas declined to discuss the'
briefing. Pell, Dodd and Menges did
.not return telephone calls to..their-,
offices asking for comment.'-The CIA.
also ref used to discuss the letter.
Helms, a leading Senate conserva.
tive, said Menges was stating not just-
his own or the CIA's views, but also.
.the conclusions of other U.S. intelli-
gence agencies.
"The problem for these -senators:
was that they were hearing things
they didn't want to hear about the
. Communist. takeover. in this-: hemi-`
sphere," said Helms, chairman. of the.
Foreign Relations subcommittee on
Latin.America.
Menges!. briefing came amid new
administration warnings that ,it is:.,
weighing military options against.
Cuba and the revolutionary. Nicara-
guan government. . . .
Administration officials have. ac
cused Cuba of inspiring and support-.-
J ng leftist insurrections. in _Nicara-
gua, El Salvador and Guatemala and
of planning a
Critics of ac
however; conte:
Central America. nave dev
oped I
because of severe poverty and politi-
.cal repression carried out by mili-_)
tary-dominated governments with
U.S. acquiescence.
One Democratic source said Meng-
es' briefing reflected the administra-
tion's "politicizing of, the premier
element of the intelligence commu
nity"?- theCIA
In the Dec. 11 letter, the Democrat-
ic senators cited the importance of
the CIA's "professional, impartial
and balanced approach to'highly
controversial and sensitive '.issues."
These vigorous standards insure the
separation of intelligence assessment
from foreign policy advocacy:
"In our judgment, Dr.. Menges' spoken presentation seriously violat:
:e, d the agency's long-cherished prin- and standards" of objectivity I
and professionalism.
"We firmly believe that Dr. Meng-
es' performance- undermines his:
credibility as a national intelligence
officer and calls into question his
future effectiveness." The letter asked Casey to review
Menges' . testimony and inform the
senators on any CIA action regarding
Approved For Release 2005/12/14: CIA-RDP91-00901R000400130001-2
Approved For Release 2005/12/14: CIA-RDP91-00901R00040
?.CZ 'Pr .P 1N Cu I:3 t'I 1 SCI 1C? b'TI'"02
? 21 December 19",1
Sh talk5 abflL1
C ] a e
F~ai
ag a
`Special situation group'-gives Reagan
information and recommendat)ons'.
Godfrey Sperling Ir _L
Ian Diego.
As chairman of the presidential crisis management team,
Vice-President George Bush is evasive about what goes on in
meetings of that, "special situation group'; But _the behind-
the-scenes work of.the..team since the proclamation of mar
tiai, law in. Poland .indicates the group. plays: _a :keg_role iii
briefing the President on majorworld developments:,
In an interview earoute here;, the vicepresidentwould not
discuss the.agenda,ot the.recent meetings; although`he ad
mitted the Polish situationbasthe."overtone--'(ofcrisis
The group doesn,tmake decisioins?',said Mr. Bush `The
President makes the decisions-.But you bring; him the infor-
mation and recommendations , rc ' 4 r r
His comments were.timely since the administration said;
after meetings of the special situation.group:.thatit.will.sug-;.-
gest a number of specific--coordinated steps that the US and.
its NATO allies should take todeal with developments in Po-
land`
group has had "at least. two other meetings ._ . over the,
course of the last six. months:'
said. But his comment revealed that this-administratioahas,
viewed.., earlier. global---developments as. being:_ of . crisis
proportions... .~, .. ..L'}
t r.t i.ii?i.P1 4.Lrsi i'?. 11 i AL.i}{ OFFICIALS.
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Approved For. Release 2005/12/14: CIA7RDP91-00901 Rb00400130001-2
UNLESS
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Approved For Release 2005/12/14: CIA-RDP91-00901R0004001
5
F, .Ll.'1.rE', s~t~J T,tiiwlJ
CIE,^i5 r?'s?h
ON PAGE ,JT~_y 14 December 1981
A-& Looser Leash for the C3
t took eleven months of controversy and
t four drafts, but the Reagan Administra-
tion last week finally announced its new,
looser guidelines for U.S. intelligence agen-
cies. President Resgan's Executive order
permits the CIA for the first time to mount
covert operations in this country and collect
intelligence from U.S. citizens even if they
are not suspected of working for a foreign
power. "No intelligence agency ... will be
given the authority to violate the rights and
liberties guaranteed to all Americans," the
President said. `But an approach that em-
r
cs o
e
dministra-
phasizes suspicion and mistrust of our in te1 ~ tion'searlier draftproposalsseemed gener-
ligence efforts can undermine this nation's ally pleased that' most of their objections
ability to confront the increasing challenge (fifteen of eighteen) had been met. The real
of espionage and terrorism:' : i dif..erence between the Reagan and Carter
The new intelligence guidelines followed orders, said one Administration official,
an extended and often bitter period of give was a matter of "tone' and terseness (30
States, but not information about domestic
activities of U.S. residents or corporations.
n He is lifting the longstanding ban against
CIA covert operations in the United States,
if they are not designed to influence U.S.
politics, policies or the press.
P He will allow the CIA to infiltrate any
U.S. organization, under procedures ap-
proved by the Attorney General, and to
influence the activities of U.S. organiza-
tions composed primarily of aliens believed
to be acting for a foreign power.
Congressional c
iti
f th
A
and-take between the Administration and pages of rules instead of 130). But a coali-
members of the House and Senate intelli- tion of 109 civil-liberties, religious, foreign..
gence committees. Some committee mein- affairs and consumer groups attacked the
hers--both Democrats and Republicans-- j order as a "step backward" in efforts to
thought that the Administration's earlier prevent repetition of past CIA abuses
draftshadgoeetoofarineasing restrictions against U.S. citizens. The CIA was also
ordered by President Carter in 1973. And stung by a backhanded vote of confidence
some intelligence veterans said privately from the select committee for its director,
that theydid not really need more authority former Reagan campaign director William
to do their jobs. Last week's order was J. Casey-.After a four-month investigation
clearlyacompromise,butReagan still man. I of Casey's past business dealings, the panel aged to ease the restraints: 1 concluded he was not unfit to serve as the
r He will allow the CIA to collect "signift- nation's top spy, but said he was "at mini-
cant" foreign- intelligence in the United mum inattentive to detail" in failing to dis-
close more than $500,000 in debts, 70 legal
clients and four civil suits in which he was
involved before taking the CIA post.
DAVID M. ALPERIN pith DAVID C. MARTIN and
JOIN J. LINDSAY in Washington
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ARTICL p .r v Release 2005/12/14: CIA-RDP91-00901R000400130
U.S. NEWS & WORLD REPORT
ON PAG1 14 December 1981
D
Washington M"-"@P@no
Washington
CIA Director William Casey isn't off
the hook just because the Senate In-
telligence Committee did. not find
him "unfit to serve" after checking
into his business dealings. Although
they voted to clear him, several key
senators say that they have lost confi-
dence in Casey.
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ARTICLE APP'"AARED
U. S. NEWS & WORLD REPORT
ON PAGE 14 December 1981
Toinorrow?
A LOOK AHEAD FROM `. H NATION'S CAPITAL
Behind President.Reagan's softening of the plan to give the Central
Intelligence Agency much freer rein to spy on Americans--
U.S. businessmen complained: that the original, proposed order could result
in wholesale planting of agents in American companies with overseas operations.
The inteiligence;:commuriity itself-was split on the idea. Also--
The plan was raising hackles in. Congress,, already full of doubts about CIA
Director Casey's skill,. Final,.. order, issued December 4, permits CIA domestic
involvement,only.'in coordination with the Federal Bureau of Investigation.
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J
ART ICLEAAPE r Release /A461~Rq l~DP91-00901R00 -
ON PAGE-1 1____.__ 13 December 1981
U,o S. 1LSstudi~SCaseY
foreign ag' r6l
nt, i WASHINGTON (AP)-The Justice looking into questions which spun off
Department's Criminal Division is re- from the case, including. Allen's ac-
viewing whether CIA Director William ceptance of two watches and misstate-
J. Casey violated the law by not regis- ments on his government financial dis-
tering as a foreign agent while repre. closure form.
senting Indonesia in 1976, government Casey represented Indonesia. in a
sources said Friday. ; , U.S. tax question in 1976. The Foreign
Casey thus becomes the third top . Agent Registration Act has no statute
official of the Reagan administration of limitations. Failure to file required
whose affairs are being studied by the statements "shall he considered a con--
Justice Department to see.whether a. tinuing offense for as long as such
special prosecutor should be named.. failure exists," the act says.
The other two are national security- ;
adviser Richard Allen and Labor Sec Willful failure is a felony punishable
retary Ray Donovan, by up to five years in prison and a
Casey's case was referred to?'the?..' $1Q,000 fine. The Justice Department
Justice Department last week by the rarely brings criminal prosecutions. It
Senate Intelligence Committee. Acting more frequently files civil suits to
Committee Chairman Daniel Patrick - force registration, as it did last year
Moynihan (D., N.Y.) said that'the in the case of then-President Jimmy
committee was unable to resolve Carter's brother, Billy.
whether Casey should have registered When the Senate committee re
with the department under the For-
eigri Agents Registration Act and that leased its report, Sep.. John Chafee
this determipation should "approp- (R., R.I.) said the committee could
riatelybe made by:the Department-of not decide whether Casey should have
Justice." ;. registered because "there are legit-
!mate questions over whether he was
ONE" JUSTICE[. Department source"- acting as a lawyer in an administra-.
said '`'Thereport was referred to the tive proceeding."
Criminal ?LIivi ion for review " Casey's defenders argued that he
u.,
Another. source said the division is qualified for an exemption under the.
trying=-ta determine if there is enough act for lawyers representing a foreign
evidence to invoke..-the special pro- government in a court of law or before
secutor act., a government agency. But his oppo-.
The lattersource said the review is nents noted that the exemption specifi-
similar to that--done -on.whether Al- cally says it "does not include at-
len's receipt`of $1,000=from two Japa- tempts to influence or persuade agen-
nese journalists required.' a special ' cy personnel or officials other than in
proseciitot. The :.department decided the course of established agency pro-
there was no criminal evidence re- ceedings,. whether formal or in-
garding that episode, but it'is still formal."
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11 December 1981
? L{s r4t
t? s: =:.?r: 1}711 !%.V'
-. :a .r:rs LFgci
-7 1
C: T
4- iI : { E ME i : fiwritteii'rssponses to the
' '14
,with .the Justi[e fl 'n rrmon}
his "omission-t_ MiS~tarpinpntC' ~nr1 .'_ttifnn .. .,-S..______. ___
The?.committee laun[hecl_its rrr
took-up his nomination last January ;v estimation last duly after, Max Hu
Casey i=sued a statement that fo F omitted' at least nine inv
tme
es
nts gl Cy'oic
esases che for this key CIA
cased on the conclusion that he Was valued. at ,more than $250,000? and
not unfit. Ile said the re ort turned post of deputy director- for opener
p personal debts and contingent Ita ,.' was accused by two fo
tions
up "nothing which reflects on the blitles
>
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ARTICLE APPEARED THE BALTIMORE SUN
OIv FAGE/2___.,, 3 December 1981
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Approved For Release 2005/10191-00901R00040013
2 DECFMIIrM 1981
CIA Director William J. Casey fecting most or all of Mr. Casey'.;
a
parenE isn't violating a law by other investments in companies
refusing to place his personal stock with foreign operations is no doubt-
holdings in a blind trust during his available to him on a routine basis.
tenure as the.nation's chief in- This is not to suggest William
telligence official. But he certainly Casey buys and sells stock based on
seems to be flying in. the face of what he'learns as head of the CIA,
government regulations that dis- That would be illegal, and there is
courage federal employees from cre- no evidence that-Director Casey has
ating the "appearance of using pub- used his public office for private
lie office for private gain." gain.
Casey and his wife reportedly Nevertheless, the temptation
own stock valued at up to $3.4 mil- and the opportunity to do so re- ?
lion in 27 corporations with overseas mains, as does the appearance of a
operations. Among-these . invest- substantial- conflict of interest.
merits is $250,000 worth of stock in Casey can-remove that tempter
an oil compan
with
b
t
y
su
s
antial in-
terests in the Persian Gulf sheik-
dom of Abu Dhabi.
The director of central in.
telligence can hardly monitor devel-
opments in the Persian Gulf with-
out reading some highly classified
-intelligence on Abu Dhabi's oil re-
serves, political stability, and other
factors bearing directly on the value
of his stock.
tion, together with the appearance
of impropriety, by doing as his most
recent predecessors did; namely,
place his personal investments in a
blind trust administered without in-
terference by an independent
agent. This is precisely what Presi-
dent Reagan, Vice President Bush,
Secretary of State Haig, and Treas-
ury Secretary Regan have done.
Case
ou
ht t
h
ld h
y
g
o
o
imself to no
`.jSimilar inside information af- less a standard.
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4701 WILLARD AVENUE, CHEVY CHASE, MARYLAND 20015 656-4068
Eyewitness News
December 2, 1981 6:00 PN1
The Casey Investigation
Wash i ncgtc n , DC
GORDON PETERSON: After a four month investigation the
the Senate I me l l i gence Committee today released a report c.n C I A
Director William Casey's activities. The reports says notling was
found to i n d i c a t e Casey should be f i r e d , but there was cr i i c i sm
of some of Casey's actions.
Eyewitness News correspondent kent Jarrell repor-s.
KENT JARRELL: The committee report said no basis has
been found for concluding that Mr. Casey is unfit to hold office
as Director of Central Intelligence. The committee also siete."I'mcmvtz edtheywere stZlemett ffied at a ccnTh=xt5m
izeadvertOW" Senator Sebmwittsaki, procvbdirosearl.ert isy er?
e* Eoniei Patrick Mvya n.:
Demovat of NewYcrk, who is acting
cbalrWAM at the panel? said taday 766
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~ -- A g fg9Releaser' q.O /AL2fIA6 AS P9I-OO9(
Oil 2 December 1981
Casey found,,
`not unfit'
to rain CIA
Washington (AP)-The Senate fntelli-,
gence Committee agreed yesterday that
its four-month investigation had found
that William J. Casey is not unfit to serve
as CIA director, but it nevertheless criti-
cized some of his private business prac-
tices, Senator Harrison Schmitt (R, N.M.)
said.
The committee finished, but. did not re-
lease, a cautiously worded 5- to 10-page
report after two days of difficult negotia-
tions behind closed doors. Senator Joseph
Biden (D, Del.) said, however, he would
dissent from the committee's basic con- i
clusion about Mr. Casey's fitness to contin-
ue as CIA director.
One Senate source, who asked not to be
named, said another Democrat, Senator
Patrick Leahy of Vermont, had decided to
sign the committee's investigative find-
ings but not its conclusion about Mr.
Casey's fitness to serve, arguing that that
was for President Reagan to decide. ! % Mr. Schmitt said, "Our basic conclusion
is that he was not unfit to serve, but- it's
safe to say the whole situation is not flat-
tering. There were omissions in his re-.
ports" to the Senate committee.
Mr. Schmitt said he was convinced that
inadvertent errors caused Mr. Casey to.
have to file amendments to his disclosures'
to the committee last January about his {
past business clients. "We just wish he was
more meticulous in his private. ;business!'
life," Mr. Schmitt said. I
But Senaator Walter D: Huddleston (D,-
Ky.) said he believed the committee's re-
Mr. Casey, who has broad access to the
government's secret data on international
economic developments, broke, with the
practice of his two predecessors at the
CIA in keeping control of his stocks. Mr.
Casey and his wife own stock worth at
least $1.8 million and perhaps more than
$3.4 million in B7 corporations with major
foreign operations.
It could not be learned if the final re-
port adopted criticisms of Mr. Casey pro-
posed by the panel's special Democratic
counsel, Irvin Nathan.
One senator, who asked not to be iden-
tified, had said Mr. Nathan's report "ques-
tions Casey's credibility."
Mr. Moynihan added that as far as he
knew there would be no dissenting views
or additional comments by individual
senators in the report.
In an interview, Mr. Biden said later,
however, that he would issue a statement
after the committee report was released,
disagreeing with its basic conclusion.
"I have a very different view from my
colleagues on this matter," Mr. Biden
said, "The issue is not whether Bill Casey
committed crimes, but whether he has my
confidence and the confidence of the com-
mittee."
Mr. Biden said he had no quarrel with
the panel's investigative work or with its
findings in specific cases it studied, but
rather he disagreed "with what conclu-
sions you draw from that. It's not because
I think there's a smoking gun or he com-
mitted any crime. It goes to confidence."
The committee started looking at Mr.
Casey's business practices after it became
public in July that two federal court deci-
sions had criticized his role in Multiponics,
Inc., an unsuccessful New Orleans farm-
ing venture.
A federal appellate court ruled that
Mr. Casey and other directors managed:
the firm in a pattern of self-interest, driv-,
ing it deep into debt. A federal district!
d th
d
l
t M
C
th
di
d
ge ru
e
a
r.
asey an
o
er
-
port could be read two ways. Mr. Huddles- ju
ton said Mr. Casey's errors could be- rectors knowingly misled investors in the
firm, but that judge has agreed to give Mr.
take viewed earr a attititude that that there mistakes is or a " definyoaite ite: Casey an opportunity to prove in court
ta
pattern of not being candid with the com-,
mittee. There is enough in the report for
the president to consider. . .whether it is
in the best interests [of the country for Mr.
Caseyl to continue as director."
After the committee's second two-hour
closed meeting in two days, Senator Dan-
iel Patrick Moynihan (D, N.Y.), the acting
chairman, announced that the panel would
issue a report on its four-month investiga-
tion today.
Mr. Moynihan declined to discuss the
contents, but did say it would not com-
ment on Mr. Casey's decision not to put his
stock portfolio in a blind trust while he
heads the CIA. "That was not a subject as?
signed to this inquiry," Mr. Moynihan said.
that he was not at fault.
The panel also. examined Mr. Casey's
appointment of Max Hugel, a New Hamp-
shire sewing machine importer with no in-
telligence background, to head the agen-
cy's clandestine services. Mr. Hugel re-
signed last summer after denying charges
of business improprieties leveled by two
former partners.
Nevertheless, it was learned th
panel had debated whANAP + Moro lease 2005/12/14. CIA-RDP91-009018000400130001-2
that decision by Mr. Casey. ,
ART IC AI'P.iA#p bved For Release 2005/12/14: CIA-RDP91-00901 R00040q
014 PPGE,~L.____
WALl
2 )ece poor 1981
at's News
William Casey isn't unfit to serve as CIA
director, a Senate panel investigation con-
cluded. Sen. Harrison Schmidt (R., N.M.)
confirmed the findings oL the four-month
probe by the Senate Intelligence Committee,
but said a report due today does criticize
some of Casey's business practices. .
Approved For Release 2005/12/14: CIA-RDP91-00901R000400130001-2
Approved For Release 2005/12/14: CIA-RDP9
2.DEe- ? /99/
R ~:ii~'z% I ??Z9.Ttr..t^?. -y
N
Yt c ?1
r ?t i~ f^ ! =4 M i7 +
ga Q. l i ;r s- 1. ..M T~fi '?' H !!:Ii tl SE _v!.. .l x. T~..r. .r?lil~' T'r !3 t
i?
i'rii ^RFTER P. FOUR-MONTH INVEETI3RTIO i iT COi 0.u FIND, HO BASIS
Y i r CONCLUDING THAT CENTRAL INTELLIGENCE 1GEHC I V 1' E _TOR
40B
'L'-,n--I ?tr.M ' ArEru x? H/:r UNFIT Nr13 FOR HIS r Jf. E
IA! A T FO
?'i: T T r t` a+r t r n tT 1??r rr T r 11!r r,
! nE SELECT I NTE! LEI GENC_ CCOMMI !TEE RI ! I :.I EEO !!A CASEY
I
f-r fc
+ETT! 9 i NG A LARGE ARGE AMOUNT T OTT 1 T NFWit r, .M!" rT I ON ON r. r, tt??~? 3 .2 rRa??E tt+r t ;.txr
x.A tr`! ! AEeOt. 1 - !~?: .t. :.i
ACTIVITIES WnILE A PRIVATE CITIZEN AND REO'UT CURRENT
T? t ~T?i 1?? ?T~ t -w r Y "'T. 4TTx??r. r a"? ~.+ 5t.? tY1T! t'r Y7
~:". ~.a!!ti!W !!- .'. ? rOR ~ iir.`i.f ! !~~ EE FORE H1 =E ATE CO?`'.FIRM...I ON
r.-rz+et Ti,' r tE TT t txt x?Ttx r?e?, Mfr r.rrv xtnT --TT
0' T E ?? -?T. I 1_ r, E rT 1 r rr '- A F T,r Tr T ?- f
rn`~; 7 1 ii i^ rt I H GA A T T 0 ^. t.2 S? T E P, A JS rGinEgt3N ~i 'sue Mini 1! b
! t-.ra !?E - F. r' E , 3+ F. E'S T ?.u Tn . IN ~ H'' 3ij n ^rr~eri?s'tr}T ?ie i .
dini i is{!i U 7z C.Z 13r.N t. 4 F. O F. U PF !rx. Pit -Tr.'}!N A
t:r +?. +x-r? tr?
't:.r- -nip 1TTE r T?!'!x sI!{ rt? x?r rr.Art r-:'?. si r ttr S DEN '~
!CON .t ! ~? k s f ! .'S !'ft! KED 2 '! sue: _~ z GNA ION
!~ Lt EP SS MAX Hf{i FO LO ?t AC C U S r.rt0 r tr?. r rnr ER
rut
SUSINESS ASSOCIATES OF ILLEGAL OR IMPROPER STOCK TRADING
PRACTICES ix.~x?xrr}
C! -r rte 3 t.an
'1? AS. E'^ Vx L~iNTEERED AT A HEARIN ON -JUL! ?e THAT THE ?4.i3EL
rr r' t. .. i 5-RS rF_ !if..-?. S I RKE t xlx. P.r.I n nE_ Vr -1i..I
>t ri_ii F.~?5_1! !. THE -..`{.i.x'^!-3!!Gc. 1P!lua-
g?: tt.
STAT
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Approved For Release 2005/12/14: CIA-RDP91-00901R000400130001-2
10
i? ? ? * 107
R } 41)2zzOTCZCZSA
?+M - AsEY 2 WSSMINaTooN?
''THE COMMITTEE CONCURS W THE REPORT SAID.
SUMMING UP THE INQUIRY INTO MR CRSEY#S PRIVATE OERLINGS5
HIS ACTIVITIES IN PREVIOUS GOVERNMENT =ERVICEi THE DISCLOSURE
FORMS THE HUG EL T,a r' T THE ?r SAID a RAND} HE HUEL RPPOIN MEHT E REPOR} aHE INUIRY
SHOWED THAT ?}P CASEY WAS AT MINIMUM INATTENTIVE TO OETRiL.
17 "HAVING REVIEWED }nt OBTAINED THE FACTS I? : a:?
CONCLUDED: THE
COURSE OF ITS FOUR-MONTH !NVESTIGATIONi THE COMMITTEE REAFFIRMS
ITS J LY 291 080 STATEMENT TWAT NO BASIS HAS SEEN FOUND FOR
CONCLUDING THAT MP CASEY IS UNFIT TO HOLD OFFICE AS DIRECTOR OF
t?E aTRAL i TELLIOENCE. i 3
ONE COMMITTEE SOURCE COMMENTED THAT THE CONCLUSION "DAMNED
N!TA FAINT PRAI?E. }
.
:_L f BUT T /' _iytE OF THE COMMITTEE n B riM MEMBERS ENDORSED HE ! r.EP } T,t /-r.O r?r}
4rER
w.
THE EXCEPTION BEING xr DELAWARE DEMOCRAT ?:.rn x' r YIO r.EMI WHO :r+.O WAS
iSSUIN2 A STATEMENT LATER TODAY.
TO .r. AT 0005 WITH ~: --. 1R ~. CASEY
COMMITTEE STILL SEEMED } BE Grr8:?-~. OVER
HIS FAILURE TO LIST THREE LAW CLIENTS ON THE allESTIONNAIRE HE
. s rr. r, BEFORE =- s rEA ~'
FILLED OUT HIS CONFIRMATION HRINeS. THESE WERE SOUTH
}REAf NOi+iMM rSIA AND rERTriMINR A
s ..
Approved For Release 2005/12/14: CIA-RDP91-00901R000400130001-2
Approved For Release 2005/12/14: CIA-RDP91-00901R000400130001-2
~is - ~r.rrt: n ?: r. rx?t ttT xSi~r
!:3 -i.f%zC.t WWR1HINthtON.^
*1'U' a+: ~ t =_ ST 1 t0 1,11 N U H EER r. f^r. rr?r tt : Tt et c tr F_{ ~rt FO r~ ? ~! r r? rt? tHAVE BEE=tr YOU HER AN
i=: N AN
E
TTO EY FOR FOREIGN i 1 6r L
At .. .. lr. : a : F? f c: GOVERNMENT" I s tsr E YOU ,. Frte}1E t_
ASSOCIATED RI TH x I D4I n ttIDUA1~ ARE ATTORNEYS FOR, FOREIGN
LS WHO ARE TORNE~3_ OR FOREIGN
=O V ERNHENT5''.3
A=EY REPLIED: 'EITHER I NOR MY FIRM CURRENTLY
REPRESENT ANY FOREIGN GOVERNMENT ' ~~3 '~ !! ANY ~ FOREIGN GOVERNMENT
Y LETTER - y TO T 1 1HE COMMITTEE Or :r'-" rl=a 1BaS rE!". i ~t'1 r. i =^'.,T. f~. J~3
A ,TE E t j t}r. E'
?o~- Tr.+?rr. TS ? -:Sr r n + ANrxoE r. ?xr1 r.rr, r.rRIA--r " THE COMMITTEE
???'t.#!? ?, n~tteED s ?.'~.~. t {?'! S39R }y ~ PT'.O.ETE ! E I { !..Z A i D
um :"TAT AS Ii HA{`i 3T WAS UNRESPONSIVE -0 fHE CL EAR
d?-NT O F THE l: xxE T T T=t Y'Aii f .' THE REPORT T SRI 0a HE COMMITTEE
yss y, r !T THE
?_? Tt- 11TH r? r FOR NOT FOLILICUNING UP CASEY i r RESPONSE -T
So r r. S w ON THE WRITTEN I... A EY S RESPONSES ON THE WQUESTIONNAIRE ALSO
OMITTED AT LEAST NINE INVESTMENTS WORTH MORE THAN ~0 ~ tti .1
OSOLL ARSE PERSONAL DESTS AND LIACrIt LIT IES OF NEARLY ?J i;9 y'
tx `^ ?-.nr. r.r
D, L L R r R S r A A S Nat i^R r, x OF CORPORATIONS OR FO r FOUNDATIONS r ON
D 0 E!?rEHOSE EOAR:}
r` r, ?? rr x CIVIL Ax} SUITS N WHICH _?E ? ?AS 9 txrit txrT'.
K ~ 
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