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BERNADETTE D-E MARTHA McCL ON IRELAN OAN COXSEDGE 0 Also in this issue: Pershing ll's Head for Europe• Military Coup in Guatemala• CIA and the Philippines• Reagan Prepares to Violate Arms Control Treaties• Contra Terror in Nicaragua Approved For Release 2010/06/14: CIA-RDP90-00845R000100130004-9 Approved For Release 2010/06/14: CIA-RDP90-00845R000100130004-9

of that year, U.S. Army Rangers and Marines practiced a mock invasion of an imaginary island nation called "Amber and the Amberdines." The Editorial scenario: A small leftist government has taken U.S. hostages and troops are needed A U.S. President addresses the nation. He to free them. In October 1983, the Rangers and justifies the invasion just carried out by U.S. c\1arines invaded Grenada under exactly that :v'larines against a Caribbean nation "as an effort pretext. to protect the lives of Americans and the The invasion illustrates the lengths to which nationals of other countries in the face of the U.S. government will go in its opposition to increasing violence and disorder." The year is governments and movemen ts striving to be free 1965, and Lyndon Johnson is explaining why from U.S. corporate and military domination. 23,000 troops have invaded the Dominican And it cares not one whit that U.S. actions violate international laws and treaties such as the �epublic. When the Marines leave that country m September 1966, a rightwing government is in Charter of the Organization of American States, place, backed by a U.S.-trained repressive police in particular the clause which states: "The apparatus. Private U.S. economic interests have territory of a state is inviolable; it may not be been secured at the expense of a progressive the object, even ternporary, of military movement directed at economic and social occupation or of other measures of force taken reforms. Today, the is one by another state, directly or indirectly, on any of the poorest countries in the Western grounds whatever." Hemisphere. ..\t the time of the Grenada invasion, Now it is 1983. U.S. Army Rangers and thousands of U.S. troops are deployed in Honduras, and the CL.\ is financing the Marines _have invaded a Caribbean country, says the President, "to protect our own citizens... and counterrevolutionary war against Nicaragua. As to help in the restoration of democratic that war shows no sign of rolling back the institutions." This time the object of the invasion Sandinista revolution, the Reagan administration is Grenada. After its Prime Minister Maurice may soon decide that the only way to destroy Bishop was killed, there was "no government," the Sandinista government is to invade Nicaragua. claims President Reagan, and "chaos" reigned. Before Grenada's Prime Minister Maurice Bishop In reality, the Reagan administration had was killed, he had warned for manv months that plans to destroy the Grenadan revolution as early a U.S. invasion was imminent. :viost people in as 1981. It has contemplated, and most likely the U.S. did not believe him. Nicaragua's leaders carried out, CIA operations to destabilize the now say that the danger of a U.S. invasion is real. country. Military preparations for an invasion of The Nicaraguan people are prepared to Grenada were put in motion in 1981. In August defend their country and their freedom. Inspired SEE EDITORIAL, pc::r. 6 Counterspy Statement of Purpose

The emerged from World War II as the world's dominant political and economic power. To conserve and enhance this power, the U.S. government created a variety of in­ stitutions to secure dominance over "free world" nations which supply U.S. corporations with cheap labor, raw materials, and markets. A number of these institutions, some initiated jointly with allied Western European governments, have systematically violated the funda­ mental rights and freedoms of people in this country and the world over. Prominent among these creations was the Central Intelligence Agency (CIA), born in 1947. Since 1973, Counterspy magazine has exposed and analyzed such intervention in all its facets: covert CIA operations, U.S. interference in foreign labor movements, U.S. aid in creating foreign intelligence agencies, multinational corporations-intelligence agency link­ ups, and World Bank assistance for counterinsurgency, to name but a few. Our view is that while CIA operations have been one of the most infamous forms of intervention, the CIA is but one strand in a complex web of interference and control. Our motivation for publishing Counterspy has been two-fold; • People in the United States have the right and need to know the scope and nature of their government's abrogation of U.S. and other citizens' rights and liberties in order to defend themselves and most effectively change the 'institutions • • Pe ple in other countries, often denied access to information, can better protect . � their own rights and bring about necessary change when equipped with such information.

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Editors: Konrad Ege John Kelly Contents Board of Advisors Dr. Walden Bello News NOT in the News Congressional Lobby 4 Practicing Mass Burials. . CIA Forgeries .. U.S. Helps Argentina Director, Philippine Build Nuclear Weapons ... CIA and Afghanistan Support Committee

Dr. Noam Chomsky Pershing lls Head for Europe Professor at MIT, Peace Activist 7 Counting French and British Missiles The Numbers Game Dr. Joshua Cohen Three Warheads for the Pershing 11? Assistant Professor, MIT

Joan Coxsedge KAL 007 Member of Parliament State of Victoria, Australia 11 Introduction: Reagan's Story Contradicted Spy in the Sky by Duncan Campbell Ruth Fitzpatrick Monitoring the Disaster Member, Steering Commit­ Exploiting the KAL Tragedy: A Pilot's View by Rudolf Braunburg tee of the Religious Task The CIA and : A 36-Year History by Jeff McConnell Force on Central America Dr. Laurie Kirby The Philippines Professor, City University 28 CIA Taps Academia to Design Post-Marcos Scenario of New York by Walden Bello Tamar Kohns Benigno Aquino and the CIA by John Kelly Political Activist Annie Makhijani Central America Chemistry Student Military Coup in Guatemala: Back to the Line of Command Dr. Arjun Makhijani 32 by Jeanne Walsh and Martha Wenger Consultant on Energy and The Inhuman Face of Covert Operations against Nicaragua Econc :nic Development by Ruth Fitzpatrick Interview: Contra Terror in Nicaragua Martha Wenger Office Worker, Women Speak Out Counterspy's Copy Editor 39 Bernadette Devlin McAliskey and Martha McClelland on Ireland Joan Coxsedge on Australia Cover Design:

Johanna Vogelsang Feature Reagan's Arms Control Sham: Preparing to Violate the Treaties Cover Photo: 49 by Konrad Ege and Arjun Makhijani Barbara Pryor Documents Counterspy magazine 54 U.S. Investment in South Africa P.O. Box 647 Ben Franklin Station Letters to the Editor Washington, D.C. 20044 56 ISSN 0739-4322

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against the Soviet Union. Practicing The CIA made its "KGB forgery" claim in hearings before the House Intelligence Committee in July 1982, but CIA officers did not spec ify Mass Burials how they had come to this conclusion. In response to a Freedom of Information Act request, CIA Information and Privacy Coordinator Larry Strawderman was no more forthcoming. The Many West Germans were stunned to learn in information remains classified, he wrote in an late September 1983 that U.S. soldiers had August 12, 1983 letter, "in the interest of national conducted a "mock mass burial" as one part of defense and foreign policy." a recent military exercise near Frankfurt. Now, the CIA's allegation has been Codenamed "Confident Enterprise," the U ,S. contradicted by Desmond Ba ll, a fellow at the Army exercise trained soldiers how to use Strategic and Defence Stud ies Centre of the bulldozers to prepare mass gravesites in case of Australian National University and a widely war in Europe. An Army spokesperson said these recognized authority on U.S. nuclear war soldiers were being trained as "graves registration strategy. In an article in International Security personnel." (Winter 82/83), published by Harvard University's According to the Army paper Stars and Center for Sc ience and International Affairs, Ball this was the first time the U.S. had matter-of-factly quoted the war plan documents Stri'pes, ® practiced mass burials during a maneuver. Army as• authentic. spokesperson Lt. Col. Lawson said such an =lf=,@@i=!t=!r@i=!t=!i=!i=!@@t==!@i=!@@@r@@@, exercise was "necessary" even though "burying ...a lot of people" is something the public doesn't want to talk about. The ..\rmy had to go through the training "so that people will know what to do - God forbid - should it happen again as it has in the past." ® Reagan Gives Argentina the Bomb

The time is late 1984. The Argentine military CIA Forgeries explodes its first nuclear weapon over the South Atlantic. A few days later, the Argentine government informs British Prime Minister :Vlargaret Thatcher that it wants her troops out The CIA's claim that U.S. nuclear war plans for of the Falklands/�alvinas Islands. The British Europe, published in Counterspy (vol. 7, no. 3) government must decide. Does it leave, or does and several European publications, are "KGB it risk war with an army equipped with sufficient forgeries" is steadily losing credibility. These nuclear weapons to wipe out the entire British documents from the 1960s describe U. S. plans to fleet in the South Atlantic? drop atom bombs on cities of allied and neutral The precise date of this standoff cannot be countries (e .g. Finland, Austria, West Germany), predicted, but the scenario itself is not unlikely . should they be taken over by the "enemy," and The U.S., Canadian and West German reveal that the Penta gon was drawing up governments, as well as, indirectly, Britain itself, contingency plans for a "p reemptive strike " have each made substantial contributions to 4 -- Countei�py -- Vec.83 - Feb.84

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Argentina's rapidly developing nuclear program. The U.S. and West Germany demonstrated their support again in August 1983, when the Reagan administration approved the sale of 143 metric tons of heavy water to Argentina. (Heavy water, so-called because its hydrogen atoms contain an extra neutron, is needed to run two nuclear reactors in Argentina.) The U.S.­ manufactured heavy water had been sold initially to a West German nuclear research reactor in Karlsruhe in the 1960s under an agreement specifying that the U.S. government would have to approve any resale. In the late 1970s, the Carter administration vetoed a planned sale to Argentina, arguing that U.S. non-prolif erati on policies stood in the way. The Argentine government has signed neither the nuclear non-prolifera ti on treaty nor the Treaty of Tlatelolco, which declares Latin America a the military so it stays out of the October 1983 nuclear-free zone. national elections in Argentina," when the seven­ The Reagan administration, however, has year long military rule is slated to end. Buchanan disagrees with such an argument. argued that the sale is possible under a U.S.­ If the Reagan administration were indeed intent Argentine agreement on peaceful nucl ar _ � on using the sale of heavy water for political collaboration and "additional non-prollf erat1on leverage, a highly dangerous tactic under any assurances and Q"Uarantees from the Government circumstances, Buchanan says, it would have of Argentina." ° Furthermore, claims the White delayed the sale of heavy water until after the House, Argentina has agreed to adhere to elections, and then co nsented only if the safeguard requirements set up by the .-\rgentine nuclear program was put under civilian International Atomic Energy Agency (IAEA). control. The manner in which the sale was made, At present, the Argentine Navy is firmly however, suggests that the administration did .not in charge and, contrary to assertions by the State believe its own arguments. It avoided consulting Department and the White House, some parts of the U.S. Nuclear Regu latory Com mission, the the highly secret nuclear program have not been agencv usually drawn into the decision-making placed under the (at times inadequate) safeguard process on sales of nuclear .naterials. .-\ccording provisions of the IAEA. Argentina has the most to Paul Buchanan, Argentine specialist for the advanced nuclear program in Latin America, now non-governmental Council on Hemispheric Affairs in its 32nd year, with two commercial reactors, in Washington, D.C., administration officials vi,ew tw o reprocessing laboratories, a uranium the sale of heavy water as a way "to app�ase enrichment plant, a number of research reactors and one commercial reactor under construction. Argentina c:ilso has adequate domestic uranium resources, and, in collaboration with a Swiss Attention company, is about to complete a heavy water production facility. Subscribers Much of Argentina's nuclear technology has come from West Germany: its scientists obtained •RB2• •LB2,• this If your label reads or their "know-how" in West German research is your last issue of Counterspy. Please facilities. Already shortly after World War II, a renew ri ght away - don •t miss a single prominent Nazi pilot, Rudel, went to Argentina issue. Attention prisoner subscribers: as a representative of the West German Siemens subscriptions to prisoners will remain corporation, apparently to hold "exploration" talks free of charge • However , we are asking about future military and nuclear collaboration. prisoners to renew their subscriptions• The military junta also has become one of the If your label reads •FP82• please re�ew biggest buyers of West German armaments. to let us know that you have been getting The Agentine Navy has never been reticent counterspy and wish to receive it in the about its intention to build nuclear weapons. future. Address changes: When notifying Given the advanced state of Argentine counterspy of a change of address, please technology, there is now nothing an outside power include your old label. could do - through commercial or other sanc­ tions - to stop Argentina's nuclear development. Cc:u.ntn.�py -- Dec.83 - Fi!b,8../ -- 5

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The heavy water shipment, however, may away from Andrews base because the . Pentagon considerably accelerate the process. So will a determined that it could be destroyed there by greatly increased budget for the Argentine a submarine-launched missile before the president National Atomic Energy Commission - which has could reach it. tripled from 1982 to 1983 - and a stockpile of Quayle told his constituents that the move some 200 kilograms of plutonium. was "good news for the future of Grissom Air It is unlikely that the. transition to civilian Force Base and surrounding communities " because government will have significant impact on the it would create jobs. @ Navy's atomic program. There is no anti-nuclear movement in Argentina, and the Peronists, who are likely to dominate the civ ilian government, appear to be committed to the nuclear weapons· program. While Britain is not in a position to stop Argentina's nuclear weapom program, it had an Afghanistan opportunity to retard it. The British Central Electricity Generating Board could have bought most of the heavy water West Germany has now Correction sold to Argentira. In 1970, the Board took out an option for 100 metric tons of the heavy water ..) stored in Germany. The West German government informed Britain soon after · the Our Afghanistan article in the last issue "CIA Aid to the Rebels" apparently underreported the :vI_alyinas/Falklands war that it was no longer w11lmg to store the water. Britain would have size of the CIA budget for aiding the Pakistan­ to buy it, or it would be sold to Argentina. The based Afghan rebels. (Counterspy wrote that British government did not exercise that option. "the United States and its allies. ..have spent some (For more information on the Argentine $200 million to arm and train the Pakistan-based nuclear program, see Paul Buchanan, "Argentina's counterrevolutionaries.") Ac cording to Newsweek Nuclear Options," Christian Science Monitor, (October 10, 1983), the CIA spends $100 million 9/14/83; ''Brits Sent Former Foes in Argentina a year to finance the rebels. It appears to be Heavy Water for Nuclear Activities," Defense the largest CIA paramilitary operation since the Week, 8/22/83; "U.S. Approves Heavy Water for CIA's war in . @ Arge�tina," Was hington Reporton the Hemisphere (published by the Council on Hemispheric Affairs, 1900 L St. NW, Suite 201, Washington, D.C. 20036), 9/6/83; "Deutsche Beihilfe fuer die Atombombe der Militaers," Lateinamerika Counterspy encourages the use of its Nachrichten (West .Berlin), 5/82; Judith Miller, articles in not-for-profit publications. "Efforts to Halt Spread or A-Arms Said to Other publications interested in re­ re­ Falter," New York Times, 6/21/82.) oo printing Counterspy materials must quest permission in writing. All reprints of Counterspy must be credited and include Counterspy's address. Similarly, re­ searchers and journalists using documents originally obtained by Counterspy must Moving Inland credit Counterspy magazine.

EDITORIAL C'ONT. from pg. 2 Republican Senator Dan Quayle ca n't keep his by the heroic resistance of Grenadans and Cubans mouth shut. In late September 1983, he told an against overwhelming force, the people in the Indiana audience that the Pl:!ntagon had decided United States must now struggle to cut off the to move the president's flying command post, a Reagan war machine here at home. To do modified 747, from Andrews Air Force otherwise is to be complicit in crimes against Base in to Grissom Air Force Base in humanity. @ Indiana. Days earlier, the Pentagon had refused E c= E c=r=Jr= r=Jr: to name the new location, saying . it was highly classified information. This is· the plane the. president is to use in case of. war. It was moved inland 6 -- Coun.teupy -- Vec..83 - Feb.8-f

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minor threat to the Soviet Union. Counting French and The Congressional Research Service study, "British and French Nuclear Forces in the INF British Missiles Negotiations" (Issue Brief IB83117, 7/25/83), challenges or contradicts each one of these assertions. A recent report by the Congressional Research • French and British Forces are insig- Service challenges a key part of the Reagan nificant when compared to the Soviet arsenal: administration's negotiating posture in the According to the CRS, Britain has four Intermediate Nuclear Force (INF) reduction talks submarines with 16 six-warhead missiles each. in Geneva. The Reagan administration clings to France has five nuclear submarines with 16 its "Zero Option" or slight variations thereof: multiple-warhead missiles each, plus 18 land i.e., the Soviet Union must dismantle all or most based missiles and 34 Mirage planes capable of of its existing intermediate-range nuclear missiles dropping nuclear bombs on the Soviet Union. Both (SS-4, SS-5 and SS-20). In exchange, the United countries' nuclear forces are at present being States will not deploy new cruise and Pershing II missiles in Western Europe, or only enough IT'S POIIIBUI 1nroo�o. missiles to match whatever the Soviets keep. IT'S RtAI.J.V AIDITEURCJP!_ POm/UUJJP. The sticking point for the Soviet Union is that STUOIESSICN the U. S. position does not take into account the LIii/TED ICWR nuclear weapons of its NATO allies,·France and WARIf PO.IJIIU! Britain. The Reagan administration claims that the Soviet demand to "count" British and French missiles in the INF talks is "without merit." The U.S. cannot negotiate about French and British' weapons for the French and British governments, says , because that would undercut their sovereignty. Under Secretary of State Lawrence Eagleburger writes that Britain and France "consider their nuclear forces to constitute the minimum nuclear deterrent necessary to protect their own national interests," and the State Department has proclaimed that Gorrell, The Charlotte News the French and British nuclear forces are "designed to deter attack against Britain and greatly expanded and within a decade are likely France, not against the other members of NATO." to have a total of 150G warheads. There probably Further, the administration says the nuclear is no country in the world that regards hundreds forces of these two countries cannot be included of warheads targeted at its cities and military in the talks because they are "strategic" weapons. forces as a "minor threat." Finally, the French and British nuclear forces are • British and French forces are inde- said to be "small compared to the total size of pendent and uncommitted: The British missiles, the Soviet nuclear arsenal," and therefore only a while under British command in peacetime, says Ccuntek6py -- Vec.83 - Feb.84 -- 7

Approved For Release 2010/06/14: CIA-RDP90-00845R000100130004-9 Approved For Release 2010/06/14: CIA-RDP90-00845R000100130004-9 the CRS study, "are scheduled to be placed under is that French and British forces be taken into SACEUR [ Supreme Allied Commander Europe] consideration during the INF talks, i.e. by in time of emergency. The British SLBMs all.owing the Soviet Union to match French and [submarine launched ballistic missiles} are British missiles with their own intermediate range targetted in coordination with U.S. Strategic Air missiles. Command targetting plans." French forces will The Reagan administration's re fusal to remain under national French military command include French and British weapons in the INF in case of war. However, there are a number negotiations has served to stall the talks from of treaties (such as the Western European Union) the outset. Arguments such as those made in to which France and other Western European "British and French Nuclear Forces in the INF countries are signatories which oblige France in Negotiations" are simply ignored or rejected by time of "attack" on one signatory to give "all the administration. Yet, it is safe to assume military •..aid ..• in [its] power." In other words, that if Czechoslovakia. or Bulgaria. were to begin French and British nuclear weapons are not "just" deploying nuclear missiles capable of reaching designed to deter an attack on these two the United States or Western Europe, the Reagan countries; rather France and Britain are obliged administration would loudly argue that such to use them "in defense" of any Western European weapons were targeted against NATO in case of country. war and should be taken into account in the U.S.­ • British and French arms are "strategic" Soviet negotiations. l!i1 and not theater nuclear weapons: Here the U.S. -='::.1 ::.1=1 ::.1 =1::.1 =1 ::.1 =1r=1r:= r:= r:= r:= r:= r:=r:= , government wants to have it both ways: during the SALT negotiations in the 1970s the U.S. characterized the British and French forces as "theater" forces which were not to be included in strategic arms limitation talks. Now that The Nu, mbers Game "theater" or intermediate arms talks are underway, the administration has reclassified them as strategic. At the same time, the U. S. The deployment of the first nine out of a total has not taken "the further logical step of of 108 Pershing II missiles in West Germany is proposing that those forces be included in the scheduled for December 1983. So goes the [strategic arms] negotiations." Pentagon's public relations rap. In reality, the • Including the French and British Pentagon is readying 21 missiles for December missiles would violate the sovereignty of these deployment - components of which were shipped countries: The Reagan administration is fond of to West Germany months before the December se tting up this strawhorse and then beating it deadline. down. The Soviet government is not demanding That 21 and not nine is the correct number that the U.S. negotiate for France and Britain; has been confirmed by Brig. Gen. Richard Kenyon, neither is it insisting that the two countries of the Army's Office of the Deputy Chief of participate in the ne otiations. What it wants, Staff for Research, Development and Acquisition.

U.S. Arrr!Y depot in Frankfurt/Hausen. 8 Counte�6py -- Vec.83 - Feb.84

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In an April 13, 1983 hearing before the West German and U.S. government officials, as Subcommittee on the Department of Defense of well as representatives of Martin Marietta, the House Appropriations Committee, Kenyon was naturally have not been eager to comment on asked about the status of the Pershing II program. these allegations. Officials of the state of Hesse Kenyon replied: " •.• The fiscal year 1982 buy is in which Frankfurt is located, also took a "no 21 missiles. Those missiles are currently being comment" stance, except to say that "the fabricated with fiscal year 1982 funds and will Americans never tell us anything." provide the initial operational capability portion The members of the Green Party believe of the deployment scheduled to begin in Europe that the activities in the Frankfurt/Hausen base in December of this calendar year." further demonstrate that the Reagan admin­ The number nine apparently relates not to istration is not sincere about the Intermediate missiles per se, but to missile launchers. If 21 Nuclear Force Reduction Talks in Geneva. "In missiles are being deployed for nine launchers, Geneva they talk, in Frankfurt they deploy," read then the projected 108 launchers will require 252 one of many signs at a September demonstration Pershing II missile.'-'.. Adding up the 252 missiles at the Frankfurt/Hausen depot. The West German to be deployed in West Germany, plus the missiles government of Chancellor Helmut Kohl, mean­ needed for training of U.S. Gls in Fort Sill, while, has turned down a request by the Green Oklahoma, one quickly arrives at the "magic Party that the West German government neither number" - 311. This is how many Pershing II deploy the Pershing II missiles nor store and missiles Secretary of Defense Caspar Weinberger prepare Pershing II components for deployment has ordered, according to his 1984 Annual Report. while the Geneva talks are underway. ® Membe� of West Germany's anti-nuclear �@@@@@@@@@@@@@@@@@@@@@� Green Party who sit on the Frankfurt City Council charged in September 1983 that some of these Pershing lls had already arrive'1 in West Germany or, more specifically, in a. U.S. military facility in Frankfurt/Hausen. As evidence, the Three Warheads for Green Party members produced photos showing containers in the base labeled "Pershing Cylinder the Pershing II? .\ssembly" and "Pershing Mod Team Europe." Mod is an abbreviation for Modification, indicating that support equipment for the existing Pershing "Pershing II: Flexibility for NATO" is the title Ia missiles - deployed in West Germany for a of a 1982 manual produced by the Martin Marietta number of years - is being modified at the U.S. Aerospace Corporation, the company which is depot in Frankfurt/Hausen to accommodate the building the Pershing missiles for the U.S. Army. new Pershing IIs. The manual indicates that the U.S. Army plans The Greens also released documents from for the Pershing II missiles could go far beyond Martin Marietta Aerospace Corporation, the simply stationing single-warhead Pershing II manufacturer of the Pershing II missiles, which missiles in West Germany. Says the manual: confirm the existence of a Pershing "modification " [ The Pershing II] is an extremely valuable facility and depot near Frankfurt," obviously the component of the INF [ Intermediate Nuclear Frankfurt/Hausen base. (See following article.) Forces]. As well as being flexible in basic design,

Crate stored in the U.S. Army depot in Frankfurt/Hausen. Ccunte�4PY -- Vec.83 - Feb.84 -- 9

Approved For Release 2010/06/14: CIA-RDP90-00845R000100130004-9 Approved For Release 2010/06/14: CIA-RDP90-00845R000100130004-9 it permits expansion of capabilities that can be used for leverage in negotiations. Buying the PII system is like buying many systems and capabilities." The term "leverage in negotiations" refers to the option to equip the Pershing II with three warheads rather than one. According to Martin Marietta, "the present terminally guided reentry vehicle can be replaced by a MIRV [ :Vlultiple Independently Targeted Reentry Vehicle] fore­ body containing up to three independently targeted warheads." In addition, the Pershing II

The term "leverage in negotiations" refers to the option to equip the Pershing II with three warheads rather than one.

Crate stored in the U.S. Anny depot. 10 -- Counte�!py -- Dec.83 - Feb.84

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Introduction Reagan's Story Contradicted

Knowingly shooting. down "an unarmed civilian Security Council that "tt1e Soviet pilot makes no airliner," said President Reagan, "was an act of mention of firing any warning shots." Kirkpatrick barbarism, born of a society which wantonly was referring to a tape of radio communications disregards individual rights and the value of between the Soviet pilot and his ground human life." Reagan was, of course, referring commander. She played excer;:its of the tape at to the Soviet shooting down of a Korean Air the U.N. Security Council - Reagan did the same Lines Boeing 747 in the early morning hours of during his national TV address - omitting September l, 1983, resulting in the deaths of 269 segments in which the Soviet pilot says: ''l arn people. A Congressional resolution, adopted by firing cannon bursts." a 416 to O vote in the House of Representatives, • A U.S. RC-135 reconnaissance plane labeled the incident a "cold-blooded barbarous was near the KAL 007 when it crossed into the murder on a commercial airliner · straying off Soviet defense zone. The two planes, seen from course [and] one of the most infamous and below, look very similar, especially at night. reprehensible acts in history." When the airliner was shot down, the Soviet pilot In the weeks that followed the downing of was not, as President Reagan suggested, parallel the jetliner, Republicans and Democrats strove to the airliner, a position from which he could to outdo each other in their ve rbalcondemnati ons have seen "the unique and distinctive silhouette" of the Soviet Union and its "wanton, calculated, of the Boeing 747 jetliner. National Security de liberate murder" of the passengers and crew Agency officers running the RC-135 themselves of Korean Air Lines flight 007. Reagan, in a might well have intentionally contributed to the somewhat obscene fashion, immediately seized confusion of the Scviet Air Defense forces. upon the disaster and used it as a lever to According to a Knight News Service article, on pressure Congress to appropriate money for his occasion "the RC-135s transmit confusing radar MX missile program. Proponents of a chemical signals in an effort to prompt the Soviets to weapons bu ildup likewise argued successfully that scramble [send up] their fighters." (9/15/83). resuming U.S. chemical weapons production was • The Soviet planes did not track the now necessary to contain Soviet aggression. KAL 007 for two hours as has been suggested. Partly because the Soviet Union waited for Soviet planes were unable to locate the KAL for six days to concede that it had shot down the more than two hours, although their ground plane, the Reagan administration pulled off a personnel apparently saw it on their radar successful propaganda campaign. During that screens. According to tape recordings not period, the U.S. government, aided by its released by the government (quoted in the New intelligence agenci,es, exercised . a virtual York Times, 10/7 /83), Soviet anti-aircraft missile monopoly on information about the tragedy, and batteries were alerted to stop an "RC-135" while U.S. newspapers took up the government's war the plane flew over Sakhalin Island; that is, some cry and spoke with one voice. two hours after it had entered Soviet airspace. Information that has come to light since This indicates that at that time, the Soviets still the initial uproar demonstrates that the story the did npt know that the plane they were pursuing Reagan administration told people around the was a civilian airliner. In fact, once Soviet world about how KAL 007 was shot down is laden interceptor planes made visual contact with the with distortions and untruths. intruding plane, they had only a few minutes to • The Soviet pilot of the Su 15 fighter decide what kind of aircraft it was. Even the plane did fire warning shots to force the plane White House has now been forced to concede down, contrary to U.S. Ambassador Jeane th at original government statements claiming Kirkpatrick's statement in the United Nations that the U.S. had ''irrefutable evidence" the C c u n t n.1 p 11 - - D � c . 8 3 - F e b • S .J - - l l

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Soviets knew they were attacking a civilian plane, passengers were the victims of a U.S. intelligence cannot be maintained. operation that went wrong" are not entirely • Despite government claims to the credible. On the contrary, Campbell concludes, contrary, U.S. intelligence agencies ha ve used and "it is clear that the passengers have been continue' to use civilian aircraft for spy missions. innocent victims of a long, secret, electronic cold According to an editor of Defense Science war iri the air." magazine, planes from the Korean Air Lines A second article, drawing from statements "regularly ove rfly Russian airspace to gather by two former U.S. RC-135 officers, seriously military intelli gence." (San Francisco Examiner, questions the Reagan administration's claims that 9/4/83). Contrary to U.S. assertions that spy ·the RC-135 spy plane left the region in question flights by planes are no longer necessary in the long before the KAL airliner was shot down. age of satellite surveillance, planes using high These two officers also suggest thai the National resolution cameras can provide muc h more Security Agency was informed at all times apout precise data than high-flying satellites. the Korean plane being in Soviet airspace and There are many unanswered questions about Soviet efforts to shoot it down. The question why 269 people had to die in the waters of the remains: why was there no U.S. attempt to Sea of Japan on September 1. Perhaps the most ·prevent the disaster? urgent questions are why the Korean military West German Lufthansa pilot Rudolf pilot flying KAL 007 was hundred.5 of kilometers Braunburg has flown many air routes close to inside Soviet airspace in the first place, and why sensitive military areas such as the Kamchatka he refused to obey the Soviet interceptor plane's Peninsula and Sa.chalin Island. . His article demand that he land. The KAL plane had several describes precautions usually taken by pilots to independent sets of navigational equipment and avoid crossing into these regions, and questions was flying alongside some of the most sensitive how the KAL pilot could have flown ·unknowingly Soviet military bases, clearly marked as hundred.5 of kilometers into Soviet airspace. "prohibited area" on pilots' maps. Finally, Jeff McConnell's article demon­ Four articles in this issue of Counterspy strates that U.S. intelligence agencies have long shed more light on the KAL disaster. Duncan used commercial aircraft and details the CIA 's Campbell explains that U.S. propaganda efforts close relationship with dozens of U.S. and foreign "to repudiate the Soviet claim that the dead �rl�es. @ 12 -- Counte�¢py -- Vec.83 - Feb. 84

Approved For Release 2010/06/14: CIA-RDP90-00845R000100130004-9 Approved For Release 2010/06/14: CIA-RDP90-00845R000100130004-9 Spy in the Sky Duncan Campbell

Whatever the reasons why the ill-fated flight • Clumsy attempts to disguise KAL 00 7 was overflying such sensitive and clandestine operations with RC-135s from prohibited areas of the Soviet Union, the incident Mildenhall have been detected by local aircraft will undoubtedly have provided U.S. intelligence spotters who have noticed on at least two with unique data on the performance of the Soviet occasions that false serial numbers had been defence system. Gathering the type of intelli­ painted onto one RC-135. This was first done gence the U.S. will have gained is the primary about seven years ago, and again in 1982. An task of the RC-135 type spy plane. RC-135"V" was temporarily given the tail serial U.S. officials inadvertently let slip at the number - 14848 - belonging to a distinctively beginning of the week that there had indeed been different "U" type. On 3/4 July last year, this an RC-135 operating along the fli ght path of the manoeuvre was easy to detect when both planes Korean airliner. But they claim that it flew were parked side by side. away from the area, and had landed an hour • The RC,135s, which first came to before the Soviets launched their missile attack Britain about 1966, succeeded earlier types which on the jumbo jet. are known to have penetrated Eastern Europe and U.S. officials in Washington do not deny the Soviet Union, and have been shot down. The that the RC-135 and two other well-known Royal Air Force and the British Secret American spy planes -- the U2 and the SR71 - Intelligence Service have been deeply involved regularly fly along the borders of the Soviet Union with the secret U.S. overflights, including the with a battery of monitoring devices aboard. All U2s, since the late 1940s. three types of aircraft operate from the U.S. We asked the United States Third Air Force airbase at Mildenhall in Suffolk, and from other spokesmen at ;\1ildenhall to comment on and bases in Greece, Cyprus, Turkey and Okinawa. explain the reports. On Tuesday, they promised From Mildenhall, the New Statesman has obtained to "research" the questions but insisted that they some startling ev idence of the clandestine role were not admitting that spy planes were ever of the RC-135 and other planes in the U.S. spy seen at Mildenhall. An SAC headquarters fleet. representative, Major Mahoney, said on Tuesday • On 16 January 1982, an RC-135V spy that "we can't comment on operational missions". plane returning from Athens to its U.S. home In the face of the rapid polarisation of the base landed at Mildenhall. On its nose were seen KAL incident into a critical Soviet-American five small red silhouettes of the distinctively issue, it is Wlderstandable that U.S. officials are long-nosed Soviet Sukhoi interceptor (such as vigorously seeking to repudiate the Soviet claim were involved in last week's incident). Such that the dead passengers were the victims of a markings normally celebrate a "kill." But since U.S. intelligence operation that went wrong. But RC-135s are unarmed, except for electronic the U.S. claim that their RC-135 in the area was jammers, aviation experts say that the markings, quietly slipping home - uninterested in what was if they are Sukhois, are most likely to mean that going on - is not credible. the aircraft had successfully penetrated Soviet For decades, the United States, the Soviet defenc es - and got away with it. Union and their allies have fought a secret • Despite promising to refrain from electronic war in which radar and anti-aircraft manned overflight of the Soviet Union in 1960, defence screens are repeatedly penetrated in planes like the SR71 do regularly "taunt11 Soviet order to discover how they operate - and how, fighters to try and shoot them down, according in war, to evade them. This dangerous activity to Viktor Belenko, the Soviet pilot who defected has been much more extensive than is generally to Japan in 1976, bringing his Mig-25 with him. known. An analysis of this secret war shows • Mildenhall's SR71 unit has recently that since 1950 the United States has lost at been increased to two aircraft. But U.S. least 27 aircraft forced or shot down and seen spokesmen at Mildenhall say that they "don't acknowledge that there are any reconnaissance This article is reprinted with the kind permission aircraft" on the base. Since early this year, of the New Statesman (14-16 Farringdon Lane, London United States national markings have been EClR 3AU, Eng land) and the author. It first removed from the all-black planes. appeared in their September 9, 1983 issue. Claudia Wright als o contributed to the article. Cou.n.te'l�Plf -- Vec..83 - Feb.84 -- 13

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60 others attacked in the course of electronic or radio signals between Soviet pilots and their 11hotograph ic reconnaissance activity. At least ground controllers. Both sides know what the 139 U.S. servicemen have died in this re­ other is doing; on one occasion at least, Soviet connaissance program me. radio operators included a ChristmW? greeting to The high-flying spy plane, the SR71, is no the specific U.S. station in Japan which was respecter of national boundaries or legal airspace monitoring them. restrictions. More than 900 attempts have been The Korean jumbo jet would have been made, by the Soviet Air Force and others, to closely followed by the U.S. and Japanese Sigint shoot down the super-secret SR-71 "Blackbird". (signals intelligence) stations. The Soviet Union None has -succeeded, for it flies too high and too was being deeply penetrated by a large fast. It replaced the sl ow-flying, glider-like U2 unidentified aircraft which was crossing the spy plane in which CIA pilot Gary Powers was highly sensitive Kamchatka peninsula on a course shot down near Sverdlovsk in May 1960. for Vladivostock. In the course of two hours in When flying off the coast of Soviet Asia, the early morning, large parts of the Soviet the primary mission of the RC-135 spy plane is military command and electronic defense systems to document the "electronic order of battle" of were suddenly activated. Gathering that part of the Soviet def enders. The Americans want to this sudden intelligence windfall accessible only know where the radar stations and anti-aircraft from the air should have been the job of the missile bases are and how defences will react if RC-135. the Soviet Union is penetrated by 852 nuclear The electronic spy mission of the RC-135s bombers. But often, im portant defence systems has been well described by senior U.S. Air Force are turned off to prevent just such eavesdropping. officials and others. The leading U.S. military journal Aviation Week and Space Technology explained in May 1976 that the SR71 s and RC- 135s fly: peripheral intelligence missions ... to pinpoint U.S. officials are vigorously locations and characteristics of potentially hostile signal em itters ... lnfgrmation of th is seeking to repudiate the nature helps (Strategic Air Command) to develop ways of eva ding troublesome Soviet claim that the dead emitters... The reason for· all this activity is unambiguously passengers were the victims offensive. The purpose is to analyse: of a U.S. intelligence the environment that bombers may be directed operation that went wrong. to penetrate in the event of war ... While the Korean airliner's unaccompanied But the U.S. claim that their penetration could not be mistaken for a lone attacking bomber, it is understandable that the RC-135 in the area was Soviet Air Force might be trigger-happy if it suspected that the ill-fated Boeing 747 might be quietly slipping home is a U.S. Air Force RC-135 lining up a possible not credible. bombing run. During a flight of up to 17 hours, automatic Elint computers on the RC-135 record Soviet radar signals on reels of 1 inch magnetic tape. When the plane returns to base computers use the tapes to provide an up-to-date map of Soviet Thus for decades such spy missions have involved radar stations. Prominent on the RC-135 are deliberate "provocative penetration," designed to flat pa nels near the nose, which carry "sideways measure Soviet alertness and monitor the looking" radar. This produces maps to help response. . . . · bombers and cruise missiles navigate to their For th e El!n t (e_ 1 ec t r m1c m t e u 1gence) � targets. analy�ts of U.S._ Stra�egic _Air Cornman�, last "Provoking" air defence systems is week s Korean incursion 111 hRve prov1d�d a � . necessary in order .to "trigger" interesting signals, t tr

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in a way that tells us things we want to know. In 1958, two Oxford undergraduates who had l'his can't be done with satellites. worked in British Sigint stations in West Germany The former Soviet :Vlig-25 interceptor pilot Viktor were jailed for publicly describing the provocative Belenko has described in his autobiography how penetration missions in a university magazine: U1is 'NBS done by the SR 71s; they flew off the Since the Russian s do not always pro-vide the eoast of the Soviet Union: required messages to monitor, they are taunting and toying with \:lig-25s sent up to sometimes provoked. A plane "loses" its way; intercept them, scooting up to altitudes the whi�e behind the frontier tape recorders Soviet planes could not reach and circling excitedly read the irritated messages of leisurely above them, or dashing off at speeds Russian pilots; and when sometimes the tile Russians could not match. aeroplane is forced to land an international incident is created. The famous Lancaster The SR 71 flew faster even than Soviet air-to-air bornber incident near Berlin was deliberately missiles and could not be shot down. SR7ls provoked in this way. repeatedly overflew during the 1960s. ,\ fter Chinese protest notes, this activity was Soon after this was written, there was to be a stopped before President �ixon's 1971 visit. A succession of major international incidents of this kind: • 27 June 1958 - CIA spy plane was shot down in the Caucasus, with nine men aboard. A secret briefing to President Eisenhower about the It is clear that the airline incident was only declassified nine months ago. • 2 Sep tember 1958 - spy plane carrying passengers have been 17 National Security Agency monitors shot down innocent victims of a long, over Soviet Armenia. • 11 _I/lay 1960 - U2 shot down over the secret, electronic co1d war in Urals - the famous 'incident. • 1 July 1960 - RB47 (predecessor to the air. the RC-135), from Brize Norton near Oxford shot down in the Barents Sea area; as in man; �======����������� such incidents, the Soviet and U.S. sides disagreed on whether the plane had encroached on national form er U.S. Air Force Sigint analyst, has airspace. explained how the SR 71s would just disappear • 28 January 1964 - T-39 shot down over from the view of Mig-21 interceptors. Egypt East Germany. protested about SR71 overflights during the Yorn • 10 �arch 1964 - RB-66 from Alcon- t\ippur war; meanwhile Soviet Mig-25s bury shot down over East Germany. successfully overflew at high speed. Losses have continued at a more modest rate In 1979 the government secretly gave since. Soviet losses as a result of their parallel perrn1ss1on for SR 71s is to be based in Britain. activity of this kind are not known. But the Companion U2s have disappeared from Mildenhall risk-taking goes on. Apart from the exotic since, in January this ye ar, newly manufactured devices like the SR71,. there are still continual U2s -- renamed TRls - started arriving at spy flights over East Germany by simulated U.S. Alconbury air base, near Huntingdon. Three or transport aircraft flying to Berlin. Codenamed four out of an expected total of 20 TRls are "Creek Misty," these are actually C130E Hercules currently stationed at Alconbury. There are spy planes. Only six months ago, an RAF usually two RC-135s at Mildenhall, on long visits Hercules flying the same route was shot at by from the Strategic Air Command's 55th Strategic East German interceptors.· Reco nnaissance Wing in Nebraska. U.S. sources, including the former Com­ Spy planes from this and similar units have mander-in-chief of Pacific forces, Admiral Noel lwen corning to Britain for ye ars. RAF and USAF Gayler, are angrily dismissive of suggestions that pilots based at Sculthorpe, near Fakenham in the Korean airliner was deliberately used by the Norfolk, shared spy missions to map bombing Americans to stir Soviet defences. Bu t it is routes into Eastern Europe between 1951 and clear that the airline passengers have been 1954. The first U2s operated from the U.S. air innocent victims of a long, secret, electronic cold . @ base at LakenheJ:tth, before moving to Turkey. w�in t� a� RAF pilots also flew on U2 missions over the @@@@@@@@@@@@@@@@@@@@@@e Soviet Union. Decorations and medals were awarded to RAF pilots for successful penetration operations, which were kept a well-guarded secret. CountU.,lp!f -- Vec. 8 3 - Feb. 84 -- 15

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Two former crewmen of a U.S. RC-135 offensive in nature," write the two former surveillance plane - the type of plane that was intelligence specialists. in the vicinity of the Korean Airliner before it • An on-board communications system was shot down - do not believe much of what "permits instantaneous reporting of tactical President Reagan has said about the incident. intelligence to the nighest levels of government, Edward Eskelson and Tom Bernard, veteran U.S. including the president, from any location in the Air Force communications intelligence specialists world." An RC-135 message intended for the who flew RC-135 reconnaissance missions out of president, Eskelson and Bernard state, "is required Okinawa, Japan, wrote in the Denver Post to be in the president's hands no more than 10 (September 13, 1983) that the Reagan minutes after the time of transmission," administration has engaged in "a major effort... to regardless of the geographical location of the bewilder the public concerning the capabilities of plane. the U.S. Air Force RC-135 and, more importantly, • Each plane carries equ�pment to jam the National Security Agency." enemy radar and radio transmissions. Eskelson and Bernard find "unbelievable" • An "internal warning system" is used Reagan's public statement that while the RC-135 to "monitor the tactical air activity and air had at one point been in the approximate a�a defense radars of the target nation." With this of the Korean airliner, it had long since left the system, RC-135 personnel can detect immediately Sakhalin-Kamchatka region and returned to its any "hostile activity" of the target nation base in Alaska when the KAL flight was shot potentially directed against th em or other down. The RC-135, which flies in figure eights friendly planes. • The aircraft can transmit "messages over an extremely broad range of frequencies, including those used by other aircraft, both civilian and military, ships, ground stations and We believe that the entire air controllers." During the war, for instance, the RC-135s were able to warn U.S. sweep of events . . . to the pilots flying bombing runs over North Vietnam that they were being tracked by Vietnamese time of the shootdown was radar, and thus played a key role in helping them escape. It appears the RC-135 could at ,least meticulously monitored and have tried to do the sa me for KAL flight'007. analyzed instantaneously by "Within these capabilities of the RC-135," Bernard and Eskelson conclude, "lie the precise U.S. intelligence. reasons we believe that the entire sweep of �vents - from the time the Soviets first began tracking KAL flight 007, to 'confusing' it with ��������������������� the American reconnaissance aircraft, to the time of the shootdown - was meticulously monitored on its intelligence missions, is "a primary and analyzed instantaneously by U.S. intercept platform" of the National Security intelligence ••.• There are serious questions in our Agency (NSA), say the crewmen, and "it is always minds as to not only what specific role did the relieved on its orbit by yet another RC-135 just capabilities of the RC-135 play in the eventual prior to the conclusion of its mission." In other shooting down of the KAL airliner, but also why words, one RC-135 may indeed have returned to these capabilities were never utilized in an its base after a reconnaissance flight -in the attempt to head off the tragedy." @ Northwest Pac ific, but another one certainly would have taken its place. Counterspy is available on microfilm from Bernard and Eskelson vigorously protest University Microfilms Inr.ernational, 300 government references to the RC-135 as merely North Zeeb Road, Dept. PR, Ann Arbor, MI a passive listening device or as primarily geared 48106; or 30-32 Mortimer .Street, Dept. PR, to "verifying compliance with arms control London Wl9 7RA, England. Counterspy is agreements." On the contrary, the RC-135 has indexed in Alternative Press Index, P.O. a number of capabilities which ''we view as being Box 7229, Baltimore, MD 21218. 16 -- Counte�6py -- Vec.83 - Feb.84

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A Pilot's View Exploiting the KAL Tragedy Rudolf Braunburg

It is the nightmare of every air traffic controller: planes when they ordered him to land. He the blip representing a civilian plane disappears violated all internal and international regulations. suddenly from the radar screen. At times, such All airline pilots are strictly instructed to follow nightmares become reality; perfect air safety will planes ordering them to land if they have entered remain an elusive ideal. Yet no other plane another nation's prohibited airspace. Because disaster has prompted so much political activity military and civilian planes have different radio as the catastrophe of the Korean Air Lines plane frequencies, only rarely are the two kinds of over the North Pacific. planes able to make radio contact. From a pilot's point of view, the incident, The military planes, therefore, use a variety with all its far-reaching consequences, can be of optical signals to communicate. These signals reduced to two simple questions. First, why did · the Boeing 747 stray so far from its course'? Second, why did it refuse to comply with the Soviet request - most certainly made - to land on a military airfield in Sakhalin'? Every pilot knows that For many years1 airlines have been using navigation systems which in actual fact preclude disobeying an interceptor navigational errors as large as the one made by the KAL Jumbo. The Inertial Navigation System while in prohibited airspace (INS) in the DC-10 that I fly, for instance, does means risking being shot not depend on ground signals or weather conditions; it is built into the plane in down. Disregarding it or triplicate•••• One flies the INS-equipped plane by first feeding the degrees of longitude and latitude trying to sneak back into into the computer. This input is checked by the copilot, and by the flight engineer, as long as he international airspace is is on board. It is possible that the pilot could seen as a suicidal attempt make a mistake during the input process, but whatever he does is checked by two other people. by every responsible pilot. There are cases where cosmic radiation disturbs the computer during the flight; this might change the data in the computer•.•• But even then a pilot still has the option t-0 at least approximately recognize his change of course by at times differ from continent to continent. But "old-fashioned" navigation methods. For instance, the pilots carry with them in their heavy on the Kamchatka peninsula, there are several flightbags a file listing the optical signals of the radio beacons - in Kubaru, Kokutan and Lopa.tka, interceptors of all countries. For instance, if an to name a few - whose bearings can be taken interceptor plane lowers its landing gear and then by using the good old radio compass navigation. slowly swerves downward, that is a demand that In addition, a pilot can use the weather radar you follow him and land at the airport he and switch it to "ground echo." Thereby he can designates. At night, interceptors signal their recognize the contours of the land and water demands by switching their lights on and off••.• below. At the time of the critical encounter it probably An even bigger riddle is why the pilot did was not yet completely light. tor not immediately obey the Soviet intercep When I and other pilots were flying the Dr. Rudolf Braunburg is a former Lufthansa Air lines -Bangkok route during the Vietnam pilot. This article is excerpted from •Die Toten der Trauer• War, and flew over the American napalm und die Vermarktung which originally bombardments, we very carefully studied our files appeared in Deutsches Allgemeines Sonntagsblatt, to learn about the various optical signals. Many West Germany. Cou.n.te'l.-�plf -- Vec..83 - Feb.84 -- 17

Approved For Release 2010/06/14: CIA-RDP90-00845R000100130004-9 Approved For Release 2010/06/14: CIA-RDP90-00845R000100130004-9 times we had to choose between flying through None of the politicians•.• including Reagan's monsoon thunderstorms••• or leaving our assigned staff...has mentioned that incidents such as the route and risk being shot down - at that time one over the Soviet Union have occurred not by a Soviet but by an American plane•.•• numerous times in the pa.st. Every pilot knows that disobeying an To be precise, if I am evaluating statistics interceptor while in prohibited air space means ,correctly, it has happened thirty two times since risking being shot down. Disregarding it or trying 1947. 32 times a civilian airplane has been shot to sneak back into international airspace is seen down for the very same reason as the one over as a suicidal attempt by every responsible pilot, the Soviet Union: violation of foreign air space. and is forbidden by the airlines. This is where the real political scandal These rules apply - in spite of some recent begins. claims to the contrary - internationally. That Pilots, and not politicians, have been means they apply over India, Central Africa, and protesting regulations which allowed these over Turkey as much as on routes bordering the downings for decades. They would have been Soviet Union. The maps that were shown on TV grateful had their governments just shed a few recently with the wording AIRSPACE tears over these incidents in the past - compared PROHIBITED PROHIBITED AREA were obviously to the many tears they are shedding now that of southern Kamchatka. But the same wording the Soviets are involved. can be found numerous times on maps of the Some of the 32 cases were bad enough to Near and Far East or on maps of South America. cry about. The Israelis shot down•.• a Libyan Over India, for instance, there are prohibited airliner .... Last year a civilian plane from France areas right along the air routes. Crossing that was downed by a "misfired" NATO missile over airspa.ce and disobeying a command to land there the Mediterranean. All passengers were killed.· would have the same consequences as doing it But there were no tearful statements of over the Soviet Union .•• regret or threats then. Perhaps the politicians Pilots who have flown international routes didn't think there were enough Americans or for more than two decades often notice U.S. Germans aboard these downed planes. But isn't military planes using civilian air routes and a person killed by an Israeli or a NATO missile behaving like civilian planes. Before the Shah just as dead as one killed by a Soviet missile? of Iran fell, the route linking Istanbul and Tehran It is not the politicians but the pilots who was the route where that happened most often. face the victims of this horrible catastrophe with There was one military airport after another concern and grief.... But whoever is focusing on along the southern border with the Soviet Union, the recent disaster alone has to be prepared to and there were many U.S. military planes using be charged with marketing the grief and sadness funny codenames flying on civilian routes to in order to undermine the [ West German] peace deliver cargo to these airfields. movement's demonstrations in this so-called hot On the North Pacific route one can detect autumn. @ the radio signals of similar planes; in addition, one can see the exhaust trails of other, higher flying planes which are crossing the east-west Pacific routes coming from the north and the Social Change Tool for the south. We were never able to detect their signals 80's Get your library to subscribeto the Alternative Press Index if it on the normal civilian radio frequencies; there doesn'tal ready. seemed to be routine traffic crossing inter­ I nstltutional subscription $90 OCNyr. national borders. Individual and movementgroup This air traffic is now being explained: subscription $25.OCNyr. recent statements by the U.S. administration For a free list of alternative admit that there are "routine flights by U.S. and radical publications and for more information write, reconnaissance planes north of Japan;" one of Alternative Press Center them took place at the same time as the Korean P 0. Box 72'l'I Boeing was in the area. At times the mixing up Balli more. Maryland 21218 of military and civilian planes was purposely 13011 243-2471 provoked by the military. . . a quarterly subject index This magazine is indexed in the There are routes all over the world which to over 150 alternative publications. Alternative Press Index. are very close to strictly forbidden territories. One of the most heavily travelled areas, between Bangkok and Hong Kong, is much closer to · Red Chinese territory than the North Pacific route is to the Soviet Union. Not to mention flights over countries at war or landings in Beirut airport. 18 :_ Counte��PY -- Vec.83 - Feb.84

Approved For Release 2010/06/14: CIA-RDP90-00845R000100130004-9 Approved For Release 2010/06/14: CIA-RDP90-00845R000100130004-9 A 36-Year History The CIA and Airlines Jeff McCon'nell

In mid-July 1951, the international office of the Arrangements like this, the CIA has maintained, National Student Association received an are cleared with the top officers of the important phone call from Washington. For corporations involvect.2 nearly a year, the association had been writing The CIA has maintained close connections groups in Latin America, hoping to stimulate with a number of airline companies around the interest in establishing a "Pan American Union" world - commercial airlines, American and of students. In May 1951, the association finally foreign, as well as its own lines and purchasing had been invited to send representatives to attend fronts, known as "air proprietaries." The depth the Brazilian student congress in Rio de Janeiro. and longevity of these CIA links are one of the With just several days left before the congress, clearest expressions available of how American however, the association still did not have the business and government together collaborated money for the trip. The message from Washington was that funds had been found: Braniff Airways had granted two free round trips from to Rio. The caller was John Simons, a National Student Militaryanalyst Fred Kaplan Association founder who was well-known to many of its members. Simons was also, unbeknownst reports that Korean Air Lines, to most and perhaps all tn the association, a CIA although ostensibly a private employee, and was or would soon become director· for students at the Foundation for Youth and company, is closely linked Student Aff ai rs, a CIA proprietary. It was natural for Simons to be in touch to the Korean Central with Thomas E. Braniff, the company founder and president who had authorized the free travel. Intelligence Agency. Braniff was a trustee of the International Institute for Education, which was already or would soon become linked to the CIA, and according to NSA News, he had "taken a personal with like-minded foreigners after World War II interest in furthering inter-American ·student to penetrate every region of the world, politically relations and •.. in the past provided travel and economically. scholarships." Recently declassified documents The Agency's interest in airlines is easy to show that the CIA, for its part, had shared a explain. As Orvis Nelson, a businessman who similar interest. Since September· 1950, when cooperated with the CIA in setting up a number the National Student Association began to work of airlines, told journalist John Marks several toward a "Pan American Union," U.S. government years ago, "If I were sitting in a position where sources had reported this effort to the CIA. I was curious about what was going on in troubled Encounters between the CIA and Braniff areas, there are two things I would be damned Airways continued after Thomas Braniff's death well interested in. The first is information. The in 1954. Former CIA officer Philip Agee writes second is transportation to get in and out, to get that in late 1963, in an effort to recruit a Chilean any information and, perhaps, to do some other as an agent, the CIA station in Ecuador arranged air activities. You have mobility. You know for Agee to be seated next to the exile on a who and what are going in and out. You know Braniff flight from Guayaquil, Ecuador to Lima, who people's associates are. You are in a position Peru. The station could do this, Agee writes, because the Braniff manager in Guayaquil was to move your people about."3 1 Following this logic, a number of airlines "an American and a base support agent.11 are routinely used by intelligence services. In what is reportedly a "carefully sanitized" version Jeff McConnell is a political activist living in Cambridge, Massachusetts. of a classified paper prepared for U.S. Ccu.nte.Hptf -- Ve.c.. 83 - Fe.b. 84_ -- 19

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intelligence, 4 Ralph Ostrich of BDM Corporatiori., deep cover for agents of the Israeli intelligence a defense and intelligence consulting firm, service, Mossad.6 The Herald has reported recently wrote: ''It is acknowledged that various that the airline has "obtained what our source types of intelligence and political activities are characterized as 'exguisite information' using conducted by [some] nations' flag carriers for commercial airliners.11 7 Zimex Aviation, a Zurich their respective governments to some degree (Switzerland) aircraft firm once secretly owned (including the United States) •••• 115 The U.S. by :'viossad, sold and leased airplanes to a number government has, as part of its. propaganda of unwitting Arab and African leaders. Among campa ign in the aftermath of the Korean Air these were Muammar Qaddafi of Libya and Idi Lines tragedy, emphas�zed that the Soviet Union Amin of Uganda, whose planes were in addition and its allies use airlines for intelligence supplied with flight crews which provided cover purposes. However, much more is known about for Israeli spies. 8 activities of this kind carried out by1 the United Yiilitary analyst Fred Kaplan reports that States and its allies. Korean Air Lines, although ostensibly a private company, is closely linked to the Korean Central El Al and Korean Air Lines Intelligence Agency (KCIA). Korean Air Lines (KAL) assembles military aircraft and virtually According to a CIA study of Israeli intelligence, every one of its pilots was once an "air force Israel uses El Al, its national airline, to provide fighter pilot and still has high security clearance,

Air America company for and Air Asia when they Created by reorganization of were CIA proprietaries; William Gilmore, treasurer, in 1959; CIA proprietary until early 1980s; George was secretary of Transport when it Doole, chairperson for most of its existence. was CIA-owned. Air Asia China Air Lines () Created in 1959; CIA proprietary until 1975; Hugh Various CIA ties before 1970. Grundy, President; sold in January 1975 to E­ China National Aviation Corporation Systems, a private CIA contractor which kept most Pan American's China subsidiary, taken over by of Air Asia's personnel and functions until at least Civil Air Transport in 1949; William Pawley, head 1979. (see ). Air (Eritrea) Civil Air Transport Set up by Transocean Air Lines around 1950. Set up after World War II by Gen. Claire Chennault Air Ethiopia (see Flying Tigers). Gradually taken over by the Set up and largely controlled by the CIA in the CIA in 1950s; developed into CIA proprietary Air 1950s. America in 1959; · purchased Pan American's subsidiary, China National Aviation Corporation, in Air Jordan 1949. Set up by Orvis Nelson of Transocean Air Lines and largely controlled by the CIA in the 1950s. Continental Air Services Reportedly, CIA officer Keith Williams was assigned Subsidiary of Continental Airlines; set up to handle to work with Air Jordan in 1953 or 1954, using CIA and military contracts in early 1960s; R.L. Transocean as cover; CIA ties later se vered. "Dutch" Brongersma, general manager in mid-1960s, former Bird Air manager. and former employee of Ariana Afghan Airlines CIA 's Civil Air Transport; Robert Rousselot, Set up by with U.S. International president in mid-1960s, a CIA veteran. Cooperation Agency (predecessor of AID); CIA interceded with Civil Aeronautics Board on its El Al (Israel) behalf at that time. According to the CIA, provides deep cover for agents of :\1ossad, Israel's secret intelligence Bird Air service. Did contract work for the CIA in in the early 1960s; taken over by Continental Air Services, a Evergreen Helicopters subsidiary of Continental Airlines, in 1965. In 1973, purchased some of the assets of then-CIA proprietary Intermountain Aviation; Delford Smith, Braniff Airways chairperson. Flew National Students Association members to Brazil in cooperation with the CIA in 1951; Thomas Evergreen lntemational E. Braniff, founder and president (died 1954) was Subsidiary of Evergreen Helicopters; formerly a trustee of CIA-linked International Institute for known as Johnson Flying Services; Ward Eason, Education; Philip Agee reports Braniff manager in. president, confirms Evergreen International has had Guayaquil, Equador in late 1963 was a CIA agent. CIA connections; new ousted Shah of Iran to Egypt in 1980. Caribbean Air Services (Puerto Rico) James Bastian, owner, has handled legal work for Pairways Corporation most CIA air proprietaries; Bastian is former vice CIA airline used to ferry agents in Washington, president of Pacific Corporation, the holding O.C. area. - 20 -- Counte�¢py -- Vec. 8 3 Feb. 84

Approved For Release 2010/06/14: CIA-RDP90-00845R000100130004-9 Approved For Release 2010/06/14: CIA-RDP90-00845R000100130004-9 according to a former CIA official familiar with Taiwanese and Korean Spy Flights KAL practices." Kaplan also cites a former CIA officer stationed in South Korea: "Anything that In many cases, the U.S. has close ties to such the Korean government wanted done that involved air operations. Kaplan writes: "Several U.S. international movement involved KAL •••• Spies officials say intelligence agencies of small and money were moved in and out of the country nations, occasionally at some risk, collect through the airline, and senior KCIA offi�ials, he information they believe might be of va lue to claims, also used KAL for their personal the United States, in hopes that they can trade international drug-smuggling operations." The it for U.S. data that is of interest to them. One first official told Kaplan that Cho Choong Kun, former National Security Council official says one of the two brothers who own the airline, Taiwanese planes, for example, have qown over funneled KCIA bribes to Japanese leaders during military facilities in mainland China for decades. the mid-1970s.9 "A country like Taiwan, South Korea or Finland reportedly has used its national some other small U.S. ally, he says, 'feels the airline, Finnair, to spy on its eastern border with need to establish that it's not totally dependent the Soviet Union. Finnair pilots are said to stray on the U.S. but has something to bring to the routinely into Soviet airspace.10 relationship on its own.' Former intelligence officials agree with this assessment.11 11 A San Francisco Examiner article indicates

Pinnair (Finland) Pakair ( Pakistan) Used to spy on Soviet-Finnish border; pilots Set up by Transocean Airlines in 1949. routinely stray into Soviet airspace. Pan African (Nigeria) Plying Tigers Close CIA ties in 1950s. Set up in 1941 with the help of William Pawl�y, Pan former head of China National Aviation Has provided deep cover for CIA agents and has Corporation; run by Gen. Claire Chennault and used made many of its airport managers available as by President Franklin Roosevelt to clandestinely support agents for the CIA; Juan Trippe, founder, support Chiang Kai-shek against Japan in the 1940s. was a long-time CIA collaborator who worked with Foreign Air Transport Development the CIA front, Committee for Free Asia (now the Set up in 1954 by the CIA to manage Iran Air and Asia Foundation), and was a founding member of other ; Richard Deichler, president, the CIA-business-labor front, the American Institute former head of then Pan Am subsidiary, for Free Labor Development, in 1961; Pan Am's Intercontinental Hotels; folded in December 1967. Washington lobbyist Sam Pryor served as liaison to Intermountain Aviation the CIA, while Trippe was head of airline. Set up in early 1960s; major CIA proprietary. until Philippine Air Lines 1973; Rosenbalm Aviation Inc. purchased some Flight operations set up by Transocean Air Lines assets in 1973 and hired some of its CIA-linked in 1948. employees; other assets were sold to Evergreen Helicopters. Seven Seas () Close CIA ties in 1950s. Iran Air Southem Air Transport Set up by Orvis Nelson of Transocean Air Lines CIA proprietary from 1960 until December 31, 1973; and largely controlled by the CIA in 1950s; CIA then sold to Stanley G. Williams who had formerly ties later severed. run it for the CIA; current president, James Bastian Korean Air Lines (see Caribbean.Air Service); current vice president, Privately owned by Cho Choong Kun and his brother; Hugh Grundy, formerly of E-Systems (see Air Asia). closely linked to Korean Central Intelligence Agency (which was itself set up by the CIA in Transocean Air Lines 196 2); virtually all pilots are former air force Set up in 1946 by Orvis Nelson; became subsidized fighter pilots with high security clearance; by the CIA in the early 1950s; Transocean set up reportedly occasionally supplied with sideview 16 other air lines by 1976, a number with CIA help; cameras for surveillance purposes in 1960s. became the largest contract air carrier in the world, largely with U.S. military contracts; Ray T. Page Airways Elsmore, vice president, former wartime director Founded in 1939; CIA-connected, receives numerous of air transport for Ge:1. Douglas Mac Arthur. (See U.S. government contracts; in 1980, CIA probably Air Jordan, Philippine Air Lines, Pakair, Air intervened on its behalf in a court case regarding Djibouti, Iran Air). questionable overseas payments; connections with Zimex Aviation (Switzerland) Zimex Aviation, (once CIA­ Once secretly owned by :'vlossad, Israel's intelligence owned), and Fairways Corporation (when CIA­ agency; sold and leased air�lanes to Muammar owned). Quaddafi and Idi ..\ min with flight crews providing cover for Mossad agents.

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that collaboration wfth the -U.S. may be even Setting up CIA Airlines closer. "One U.S. official with close ties to military intelligence" told the Examiner "that Although apparently linked to the CIA through carriers owned by governments deemed friendly their governments, El Al, Korean Air Lines and to the United States are fitted in this country China Air Lines are, of course, independent with cameras and other devices for intelligence entities, not controlled by the CIA. But in the collection. The presumption, he said, is that the 1950s and 1960s, on the other hand, many national information will then be shared with the U.S. airlines were in large part controlled by the government .••. [ The work is done] at a handful Agency after having been set up by it. These of U.S. bases. Private electronic firms perform airlines were located on the borders of the Soviet the work, he said, but U.S. approval is needed. Union or China or in strategic regions undergoing One such site, he said, is Andrews Air Force decolonialization. Among these were Air Base." There, he said, "even U.S. government - Ethiopia, Air Jordan and Iran Air.19 One CIA though non-military - craft are fitted with proprietary, United Business Associates, had a sensoring devices.11 I2 plan to set up and control a national airline for It is even the case, according to Kaplan, Libya in order to, as one officer put it, "offset that a "former U.S. Army intelligence officer the communists from moving in," but that 0 remembers 'very clearly' being told in '1967 by company never finalized a dea1.2 The CIA did, an Air Force intelligence instructor that 'sideview however, succeed in maintaining close ties with cameras' - which take big, very clear pictures several African airlines. Among these were Pan from long distances - were occasionally attached African, based in Lagos, Nigeria, and Seven Seas, to commercial airliners flying along sensitive based in Nairobi, Kenya.21 borders, and that Korean Air Lines was among Air Jordan and Iran Air were two of the those companies [sic]." Experts in the field airlines that Orvis Nelson set' up in the early maintain, contrary to the arguments advanced by 1950s, working in conjunction with the CIA.22 the U.S. government after the KAL 007 incident, In 1946, Nelson had founded Transocean Air Lines, that there would be a distinct advantage to using which quickly grew · to become the largest such cameras rather than satellites.13 (See contract air carrier in the world on a hearty diet sidebar.) of U.S. military-related contracts. Nelson had There have always been close ties between formerly flown for. twelve years with United Air the CIA and the intelligence services of many of Lines, a U.S. commercial airline; Transocean Air these nations. The CIA set up the Korean Central Lines' vice president, Ray T. Elsmore, had been Intelligence Agency in 1962 and remained very wartime director of air transport for Gen. close to it at least until the Koreagate scandal Douglas MacArthur. Besides the U.S. contracts, in 1977.14 There is even evidence that some of they also negotiated a number of .contracts to the KCIA bribes uncovered during Koreagate were set up new foreign airlines. Already by 1949, made with the knowledge, if not the permission, Transocean Air Lines had set up flight operations of the CIA. 15 A CIA study of Israeli intelligence for Philippine Air Lines, a Pakistani international indicates general, if not specific, CIA knowledge airline (Pakair) and an Eritrea-based airline (Air of Mossad's use of El Al. Moreover, it is very Djibouti). 23 likely that the CIA was aware of, if not involved Before long, Nelson began working with the in, the Mossad-Zimex Aviation deals.16 The CIA also has had various ties to THE SOVIETS' DESTRUCTION 7 OF THE KOREANAIRLINER Taiwan's civilian airline, China Air Lines.l John / ISA TRAGICAND COSTLY Marks and Victor Marchetti, authors of The CIA EXAMPLEOF PARANOID and the Cult of Intelligence, r�port, for example, OVERREACTION!! ... that after the crash of a passenger plane belonging to the CIA's Civil Air Transport near in 1968, the Nationalist government bowed to public pressure and accepted a settlement of ... I THlttKfLLUSE IT a longstanding dispute with the CIA: China Air TOGETTHEMX Lines took over Civil Air Transport's international 1 FUNDINGTHROUGH flights; Civil Air Transport, "despite the Agency's CONGRESS!! reluctance, continued to fly domestic routes on Taiwan; and the CIA sweetened the pot with a large cash payment to the Nationalists.11 18 CIA ties to Taiwanese intelligence have always been close, and it is reasonable to assume that the Civil Air Transport negotiations were carried on, at least in part, through that channel. Huck, United States 22 -- Coun�e��PY -- Vec.83 - Feb.84

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CIA. Wilbur Eveland, himself a CL.\. contract American, is described by :½arylin Bender and agent, writes that Transocean Air Lines was "CIA­ Selig Altschul in a recent biography of its founder subsidized" and that CIA officer Keith Williams, and long-time head Juan Trippe as ''a private a :½iddle East specialist, was assigned to work enterprise with a peculiarly intimate relationship with Air Jordan in 1953 or 1954, using Transocean to the United States government. :½ost observers, Air Lines as cover.24 According to John Marks, and its own employees, regard the airline as a

Nelson had by 1976 set up sixteen airlines. quasi-governmental institution !-. a business "Sometimes he has cooperated with the CIA," wrapped in the American flag.nJ2 And like El Marks wrote, "but he vehemently states he has Al, Korean Air Lines and the other airlines never been under the Agency's control. He won't regarded in a similar way in their own countries, state which of his airline deals involved the Pan Am has remained closely connected to its CIA.1125 nation's intelligence services. In 1941, William Although Transocean Air Lines was perhaps Pawley, who had been head of Pan Am's China the first, other U .S.-based contract carriers were subsidiary China National Aviation Corporation, soon working for the CIA. In the early 1960s, helped set up the Flying Tigers, an air service Bird Air reportedly did contract work for the which President Franklin Roosevelt used to CIA in Laos. In 1965, Bird Air was taken over clandestinely support Chiang Kai-shek against the by Continental Air Services, a newly-created Japanese. subsidiary of Continental Airlines, which fought After the war, Gen. Claire Chennault, who its way into the lucrative contract business in had actually run the airline, went into the airline by convincing CIA officials that business for himself, creating Civil Air Transport. it would reveal the Agency's role there unless it Civil Air Transport bought out the China National was given a piece of the action.26 R. L. "Dutch" Aviation Corporation and quickly was itself taken Brongersma, formerly a Bird Air manager and over by the U.S. government. Civil Air Transport employee of the CIA 's Civil Air Transport, later became the CIA proprietaries Air America became general manager of Continental Air and Air Asia; George Doole and Amos Hiatt, Services, and CIA veteran Robert Rousselot chairperson and treasurer of Air America, and became its president.27 Hugh Grundy, president of Air Asia, were Another contract carrier with CIA recruited from Pan Am.33 Richard Deichler, connections is Page Airways, which since its former head of then Pan Am subsidiary, creation in 1939 has received - along with the Intercontinental Hotels, became president of interlocked construction firm, Wilmorite another proprietary, Foreign Air Transport Company - numerous contracts from the U.S. Development, which had been set up by the CIA government. In 1980, the Securities and Exchange in 1954 in order to manage Iran Air and other Commission settled a questionable overseas suc h enterprises. 34 payment case with Page out of court, re rtedly ra Pan Am boss Trippe was a Yale graduate because the CIA intervened on its behalf. 8 Page and a member of the Office of Strategic Services­ had acted as an agent for Grumman Corporation CIA "old boy" network that controlled and in sales to Morocco and Saudi Arabia and had collaborated with U.S. intelligence in the first funneled some of the questionable com missions two decades after the war. Like Braniff, he involved in the sales through a Liechtenstein worked with the CIA on propaganda operations organization managed by Alfred Buhler, who was in its early years. In 1951, Trippe joined with described in a deposition taken in a California the CIA and a number of West Coast financiers lawsuit as a "bagman, a courier and a paymaster" in setting up the Committee for Free Asia, an for the CIA.29 Several other possible Page-CIA Asian counterpart to Radio Free Europe and the connections may have further stimulated the Free Europe Committee. With so many prominent . Agency's concern. In Uganda, Page paid a people involved, writes former CIA officer Joseph commission to Zimex Aviation for assistance in Smith, the Committee "did not wish to respond selling a jet to Idi Amin; it also subcontracted to daily directives from buildings beside the Southern Air Transport, a Miami company Reflecting Pool," the CIA's makeshift formerly owned by the CIA, to provide fligtlt headquarters until the 1960s. So the CL.\'s crews and engineers. for Page's aircraft there. 30 International Organizations Division under Tam In the United States, Page occasionally arranged Braden was "given the job of handling the funds flights for Fairways Corporation, an air shuttle for such large enterprises �d trying to control 1 service owned at the time by the CIA.3 them as best they could. 11 3::> The role of wealthy members like Trippe, Pan Am - The Government's Airline according to an internal document distributed to them shortly after the Committee changed its One U.S. airline stands above all others for its name to the Asia Foundation in 1954, was to past ties to the government. That airline, Pan approve budgets, help with publicity, provide Countek¢py -- VeQ.83 - Feb.84 -- 23

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"policy guidance ,i' and assist "with individual the CIA.38 (Pryor also served on important contacts and activities in the particular fields of business-government groups; he was the first vice specialization of the [ m] embers."36 Trippe left chairperson of one, the Business Council· for the group in 1954 and later became a founding International Understanding, set up by the United member of the American Institute for Free Labor States Information Agency in 1958.) Development, a CIA-business-labor front set up in 1961 to promote covert U.S. government Pan Am's Deep Cover Arrangement for the CIA objectives among labor organizations in Latin America.37 Bender and Altschul write that Trippe was During the 1950s, according to his "purposely uninformed of the specifics of his biographers, Trippe also "volunteered information airline's activities on behalf of the Agency. of considerable value in the area of economic Ignorance afforded [ these activities] 'legitimate intelligence to [ CIA Director] Allen Dulles, denial' - the ability to face the head of a host generally during what appeared to be chance country and say 'I don't know anything about it. 111 encounters in ." These meetings were These activities were extensive. In thE!' early actually set up in advance by Sam Pryor, a long­ 1960s, the Quito airport manager of Panagra, Pan time Trippe · friend. Pryor was Pan Am's Am's joint venture with W.R. Grace (itself heavily Washington lobbyist and the company liaison with CIA-involved), was the Agency "cutout" who directed a penetration agent of the Communist Party of Ecuador.39 The Santo Domingo manager for Pan Am reported to the CIA on the travels Commercial of Dominican President Rafael Trujillo's mistress. , The manager in · Panama City, the main Spy Flights intersection of north-south air traffic in the 1950s, gave CIA men access to baggage areas, A picture of the KAL 007 incident loading areas and ticket counters so that the substantially different from the official Agency, according to a former officer based in government version was presented in a Miami Panama, could "keep tabs on Communist Party Herald article of September 11, 1983. The membership in South America,... learn aliases, .•. article quotes former CIA Director William photograph and destroy notes and training Colby as maintaining that it would have been materials, and have certain individuals illogical for the U.S. to have used a detained by Panamanian secret police so that commercial airliner in an ultra-sensitive they would miss conn.ections and fail to attend spying m1ss10n. "I never heard of such Party conferences in Prague and Moscow." Pryor activity," Colby told the Herald. !'The idea himself, apparently in Europe, arranged the of risking innocent lives is a no-no." But bugging of a Pan Am plane chartered by when confronted with the statements of Indonesia's President and engaged two several Herald sources that chartered Hamburg prostitutes to pose as stewardesses. freight-carriers had been used for es pionage Trippe's biographers write that Pan Am also through the 1960s, particularly over Cuba supplied cover for CIA officers "in jobs such as and Southeast Asia, Colby appears to have assistant station manager which require no backed off. "But there's a great deal of specialized skill and afford entree to local society difference," he said, "between chartering a with opportunities for information-gathering." As plane and flying it yourself - and using a with many other such "deep cover" arrangements, regular commercial flight." the Agency reimbursed Pan Am for officers' There would be obvious intelligence salaries through consulting contracts. 40 advantages in using planes rather than Finally, Pan. Am did work similar to that satellites for certain intelligence missions. of Transocean Air Lines in helping the ·U.S. Satellites able to focus on a fixed spot on government secr.etly force its way into earth must fly at an altitude of some 23,000 international air lanes; and in several cases picked miles and maintain a stationary orbit. From up where Transocean Air Lines had left off. The that height, details of military hardware or CIA got Trippe's permission when its Southern certain construction activities cannot be Air Transport started to move into Pan Am's observed. markets in the 1960s. Pan Am took on technical­ Low-flying satellites have their assistance contracts, financed by the Agency for drawbacks as well. They fly in predictable International Development, with Turkish Airlines, tracks, and can take pictures of desired Thai Airlines, Pakistan International Airlines, Air objects only as they fly over the actual site, Guinee, Air Zaire, and after the CIA had severed and then only for a much shorter time than its ties, Iran Air and Air Jordan. Earlier, Pan a slow-flying aircraft would be able to. Am had set up Ariana Afghan Airlines under a 24 -- Coun�e��PY -- Ve�.83 - Feb.84

Approved For Release 2010/06/14: CIA-RDP90-00845R000100130004-9 Approved For Release 2010/06/14: CIA-RDP90-00845R000100130004-9 contract with the International Cooperation E-Systems, Continental Airlines, Lockheed and Agency (the predecessor of the Agency for LTV Corporation. E-Systems finalized a deal in International Development), and the CIA had January 1975 to buy Air Asia, Air America's interceded with the Civil Aeronautics Board to aviation maintenance subsidiary in Taiwan.4 3 cement the deal. E-Systems, a Dallas-based electronics firm, The development of the U-2 plane in the at this time was virtually a CIA front itself. A 1950s, however, "lessened the importance of aerial 1974 government report stated: "E-Systems has surveillance by a commercial airliner straying off ongoing CIA-funded contracts amounting to $4.7 course into Soviet territory, but the radio million, and CIA has an interest in other U.S. communications systems and the presence of government contracts with E-Systems, Inc., worth American technicians in the national airlines· $105 million.1144 E-Systems' net profits in 1973 formed part of the electronic shield erected by had been $166 million. An E-Systems vice the United States in the Middle East and president, Lloyd Lauderdale, had been a CIA Southeast Asia.1141 deputy director before joining the company in Later on, the development of high­ 1969. The transfer of Air Asia was handled, at resolution satellite reconnaissance, the successful least in part, by Kenneth M. Smith, who headed creation of self-sustaining national airlines for the Aircraft Systems Group at E-Systems, of most American allies, cutbacks in CIA which Air Asia became a division. Smith had paramilitary efforts and increasing revelations just come to the company after leaving his former about covert operations throughout the 1970s led job as Deputy Director of the Federal Aviation to further shifts in CIA air operations. Foreign .-\ir Transport Development went out of existence in December 1967, United Business Associates soon followed and the CIA got out of the business of setting up national airlines. The changing In the 1950s and 1960s ... importance of the "electronic shield" was reflected in the closure of the U-2 base at many national airlines were Peshawar in northern Pakistan in 1969. However, in large part controlled by there is no indication that the CIA's interest in the national airlines of major Third World allies the (Central Intelligence) like South Korea or Israel waned. In 1976, at the height of controversy in the U.S. over CIA Agency after having been activities, Orvis Nelson could tell John Marks that U.S. government involvement in foreign set up by it. These airlines airlines was as great as ever. 42 were located on the borders CIA Plays Musical Chairs of the Soviet Union or China

Another significant shift in the post-Vietnam or in strategic regions under­ period was the CIA's selling off its major air going decolonialization. proprietaries - Air America and Air Asia, Southern Air Transport, Intermountain Aviation - into private hands. Historically, CIA-linked private corporations have provided a haven for �======: proprietaries that the government wanted to Administration,· which keeps close liaison with continue to use but no longer wanted to operate. the CIA.4 5 In 1965, about one year after the CIA 's former Air Asia retained its personnel and clandestine operations chief, Richard Bissell, Long-time Air Asia officers Hugh joined the company, for example, United Aircraft functions. Grundy and Al Wueste stayed on to head the (later called United Technologies) took over a newly private subsidiary, which continued to work CIA research front, the Scientific Engineering almost exclusively for the U.S. government, Institute. Although the president and vice servicing U.S. aircraft in Taiwan and performincr president of the institute left, much of the rest other sensitive duties. In 1979, its government of the staff remained intact and its classified contracts were worth $10 million, almost work continued. twice what Air Asia cost E-Systems. The dismantling The same is often the case of CIA air proprietaries. In July 1973, when the CIA held of U.S. military bases in Taiwan at the end of 1979 forced Air Asia to reorganize and seek a meeting of prospective bidders for the purpose 6 of selling off Air America, the companies showing civilian work.4 Southern Air Transport was sold on the most interest were four CIA contractors: December 31, 1973, to Stanley G. Williams, who Counte��py -- Vec.83 - F.eb.84 -- 25

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had run it for the CIA for 11 years. Its current they }}ave been a custom'er of ou rs.1149 president is James Bastian, a Washington lawyer The details of possible joint operations with Howard, Bastian and Poe, and owner of the between the CIA and these private firms are Puerto Rico-based Caribbean Air Service. unknown. The Church Committee (a Senate (Caribbean Air Service's current treasurer,. committee that investigated the CIA in the mid- . William Gilmore, was a secretary of Southern Air 1970s) reported that in several divestitures of Transport during its CIA days.) Bastian is also proprietaries "transfer of the entity was a former vice president of Pacific Corporation, conditioned as an agreement that the proprietary the holding company for Air America and Air would continue to provide goods or services to Asia. Southern Air Transport's current vice the CIA." However, the Committee also president is Hugh Grundy� who left E-Systems admitted: ''In a very real sense, it is nearly after the U.S. pullout from Taiwan. impossible to evaluate whether a 'link' still exists The CIA 's Intermountain Aviation sold off between the Agency and a former asset related many of its assets in 1973 to Rosenbalm Aviation to a proprietary. In some cases, even though Inc. Rosenbalm had operated as a small Oregon­ formal and informal Agency ties are discontinued, based airline since 1956. After the.· purchase, it social and interpersonal relationships remain. The grew enormously and hired several employees impact of such liaisons is difficult to assess.1150 previously linked to the CIA. Continental's "Dutch" Brongersma became head of international Relying on Third Countries operations. , Director of operations Arthur J. Schmidt had worked at the CIA 's special air­ Further shifts in covert air operations have taken warfare center at Eglin Air Force Base in Florida place in the Reagan administration. Several years before joining Intermountain in 1968. Rosenbalm ago, the head of the CIA's Cover and Commercial Aviation hired James Bastian as its Washington Staff suggested one such shift after the attor�ey. divestiture of the air proprietaries: increased Southern Air Transport and Rosenbalm reliance on third-country assets.5 1 CIA Director Aviation, both with about $1 5 million in annual William Casey stated in a top-secret document sales, are exempt from filing pu blic reports of '.\1ay 1981 that such a policy would be necessary identifying the origins and destinations of their in covert operations more generally, at least until cargo and pa ssengers. In 1975, Stanley Williams the "post-Vietl"!.am morning-after syndrome" had and William Rosenbalm, then the presidents of run its course. ;12 the two companies, withdrew their joint application to the Civil Aeronautics Board to acquire the Puerto Rico-based Shamrock Air Lines when the Board set the condition that their airlines give up this exemption.47 Given (CIA) Director Casey's Other Intermountain assets, including its Arizona base of operations, were purchased by interest in revivingCIA ties to Evergreen Helicopters, another Oregon company. U.S. businesses, it is likely that Journalist Robert Fink was later advised by a senior Washington intelligence official that (CIA) relationships like those Johnson Flying Services, a contract carrier acquired by Evergreen Helicopters after the with Braniffand Pan Am are Intermountain deal, and now known as Evergreen again the norm in the airline International, was to be used for transferring Air America's assets back to the United States. Fink industry. was also informed by a former associate of Evergreen Helicopters chairperson Delford Smith that the Agency for International Development approached Smith in 197 to take over Air 4 Reports in the wake of the KAL 007 America's operations in . Smith had tragedy suggest there is or at least has been turned the government down because of the short­ some U.S. reliance on air assets in Israel, South term nature of the proJ)osed contract. Smith has Korea and other U.S. allies. The CIA 's paramili denied these stories.48' tary operations against Afghanistan and Chad In 1980, Evergreen International was the relied heavily on the air capabilities of Egypt. airline contracted to fly the former Shah of Iran In C�ntral America, . the CIA has been regularly out of Panama to a safe refuge in Egypt. Ward usmg Salvadoran pilots flying C-47s owned by the Eason, president · of Evergreen International, Salyad?ran Air Force to resupply U.S.-backed denied any connection to the CIA, although he ant1-N 1caraguan terrorists based inside admitted that "probably on some rare occasions Nicaragua. 53 26 -- Coun�e�-0py -- Vec.83 - Feb.84

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N ion, 2/20/82, pp.204-205. Other reports indicate the revival of the r kind of front operations-run in the past as joint ston Globe (BG), 9/19/83. 10) cf. supra, #4. - ventures among the CIA, Washington-based 11) Cf. supra, #9. corporate lawyers, Washington-based banks, and 12) San Francisco Examiner, 9/4/83. aircraft distributors-by which aircraft suitable 13) Cf. supra, #9, for paramilitary conflicts and pilots to fly them 14) Cf. supra, #4, #9; John Marks, The Search for the were made available to U.S.-backed forces in "Manchurian Candidate", McGraw-Hill, New York, 1980, p.178. Peer diSilva, Sub Rosa, Times Books, New York, Indochina and Africa in the 1960s. For instance, 1978, p.178. one twin-engine private plane, and, at one point, 15 Jeff Stein, "A Sweetheart Deal for E-Systems," U.S. civilian pilots have been employed on the �. 10/16/78, pp.12-13, regular resupply missions to Nicaraguan 16) Cf. supra, #8. counterrevolutionaries financed by the CIA. 5� A 17) New York Times (NYT), 4/5/70. 18) John Marks and Victor :Vlarchetti, CIA and the Cult number of civilian aircraft were also used to of Intelligence, Dell, New York, 1980, p.129; Peter Dale parachute supplies to these after several Scott, The War Conspiracy, Bobbs-Merrill, Indianapolis, thousand infiltrated back into Nicaragua in 1972, pp.194, 199-io8. summer 1983. 55 19) Christopher Robbins, Air America, Putnam's, New In early October 1983, a DC-3 registered in York, 1979, p.68. 20) Cf. supra, #3. Oklahoma was shot down in northern Nicaragua 21) Cf. supra, #19, p.74. after it flew out of Honduras with supplies for 22) Cf. supra, #3. the contras. 56 A source with access to the ledger 23) Bu siness Week, 8/14/48, p.36; Saturday Evening Post, listing CIA aid to Eden Pastora's forces told 8/16/52, pp.103, 105. Robert Parry of the Associated Press that the 24) Wilbur Eveland, Ropes of Sand, Norton, New York, 1980, p.128. CIA has supplied Pastora with three two-engine 25) Cf. supra, #3. Cessnas and two one-engine Cessnas. One twin­ 26) John Marks and Victor Marchetti, CIA and the Cul t engine plane was reportedly given to Pastora of Intelligence, Dell, New York, 1980, p.130. through a CIA front known as Investair Leasing 27) Cf. supra, #19, pp.72-73. 28) Cf. supra, # 8. Corporation. Investair is located in McLean, 29) NYT, 2/8/83. Virginia, and shares a building with Air America. 30) Cf. supra, #8. lnvestair's director of marketing, Mark L. 31) NYT, 7/8/75; � 7/10/75. Peterson, was secretary and treasurer for Air 32) :vtarylin Bender and Selig Altschul, The Chosen America in 1977 and 197 8. The firm's manager, Instrument, Simon and Schuster, New York, 1983. 33) Peter Dale Scott, The War Conspiracy, Bobbs :Vterrill, Edgar L. :vtitchell, was vice president of Indianapolis, 1972, pp.6-9, 199. Intermountain Aviation from 1966 to 1975. The 34) Cf. supra, #32, p.481. plane sent to Pastora was used to bomb Managua's 35) Joseph 8. Smith, Portrait of a Cold Warrior, Ballantine International Airport on September 8 before it Books, New York, 1981. 1 crashed, killing the two pilots.57 36) Documents in the possession of the author. Given Director Casey's interest in reviving 37) Lars Schoultz, Human Rights and United States Policy Toward Latin America, Princeton University Press, CIA ties to U.S. businesses, it is likely that Princeton, NJ, 1981, pp.333-343; Serafino Romualdi, relationships like those with Braniff and Pan Am Presidents and Peons, Funk & Wagnalls, New York, 1967, are again the norm in the airline industry. And p.432. given the pressures for new and larger 38 ) Cf. supra, #32, p.482. paramilitary adventures, it 39) Cf. supra, #1, p.110. is likely that old 40) Cf. supra, #32, pp.478-480. Agency ties with reliable banks and law firms 41) Ibid., pp.481-482. are seeing a resurgence. Whether the new air 42) Cf. supra, #3; John Marks, The Search for the warriors running these campaigns will opt for "Manchurian Candidate", McGraw-Hill, New York, 1980, public or private ownership of their assets p.210. 43) remains to be seen. But whatever the choices, Letter, George Cary to Rep. Gerry Studds, 7/5/77; phone interview with Jack Fitzgerald, United Technologies, a new chapter in the story of the CIA's airline 10/11/83. connection is just starting to unfold. @ 44) , 2/18/77. 45) Newsweek, 5/19/75, p.25. 46) Dun and Bradstreet International; E-System's annual Footnotes and 10-1<' reports. 47) Wall Street Journal, 2/16/79. 1) Philip Agee, Inside the Company, Bantam Books, New 48) Cf. supra, #19, pp.298-299. York, 1976, p.315. 49) � 3/25/80. 2) Washington Post (WP), 3/11/74. 50) Final Report, Book I, p.239. 3) � 7/11/76. 51) Cf. supra, #19, p.302. 4) , 9/11 /83. 52) � 8/25/81. 5) Ralph Ostrich, "Aeroflot," Armed Forces Journal, May 53) NYT, 10/2/83. 19 81, pp.49-50. 54) Ibid. 6) Counterspy, May- June 1982, p.43. 55) � 9/29/83. 7) Cf. supra, #4. 56) � 10/6/83. 8) Murray Waas, "The Case of the Flying Spies," The 57) � 10/7/83; NYT, 10/6/83. Counte��PY -� Oec.83 - Feb.84 -- 27

Approved For Release 2010/06/14: CIA-RDP90-00845R000100130004-9 Approved For Release 2010/06/14: CIA-RDP90-00845R000100130004-9 The Philippines

CIA Taps Academia to Design Post-Marcos Scenario Walden Bello

As Philippine dictator ' grip on impression that the study was purely academic. power steadily weakens, the CIA has stepped up In a letter to one colleague, Green wrote, "I am efforts to pinpoint "viable" policy options for the asking for scholarly help where you feel you can United States. One thrust of the agency is to help as a fellow scholar." Curiously, the furtively tap the resources of Philippine questionnaires (see reprint) concentrated almost specialists in the academic community to assess totally on eliciting information on the strength the strengths of various Philippine opposition and composition of the New People's Army (NPA), groups. The CL<\ wants to design a "post-Marcos the armed wing of the Communist Party of the scenario" congenial to the United States. Philippines. The instruction sheet of the The CIA operation apparently began in the questionnaire stated: "By answering the following summer of 1982, when Charles Duckman of Booze, questions, you will be providing information on Allen and Hamilton, Inc., a consulting agency the NPA that we have not been able to find hired by the CIA, contacted a number of elsewhere." The questionnaire also included one Philippine specialists. Duck man offered .them fat question on the Moro National Liberation Front fees to participate in a study on "political (MNLF), an insurgent group on the Philippine stability" in the Philippines. One academic who island of Mindanao. was approached revealed that the consulting The CIA wanted quick results, so Green agency offered to go through his files at his attempted to arrange a special panel on "The university as well as fly him to Washington for Future of Philippine Politics - What Happens "consultations." after Marcos?" at the meeting of the Philippine "They were especially interested in my Studies Committee of the Association of Asian knowledge of the Church and various groupings Studies set for August 1983. Green sent within it," revealed the specialist, who requested invitations to Philippine scholars Robert anonymity. "But I was bothered by the huge sums Youngblood of the University of Arizona at of money they were offering and couldn't get a Tempe; Ben Muego of Bowling Green University; clear picture of who was funding the whole thing." David Wurfel of the University of Windsor; By the fall, Booze, Allen and Hamilton Belinda Aquino of the University of ; and found its man in Justin Green, professor of Carl Lande and Linda Richter of the University political science at Villanova University and a of Kansas. well-connected figure in academic circles, who Green did not mention to the invited had served as executive secretary of the participants the connection between the panel Philippine Studies Committee. discussion and his CIA-funded work. It was clear, Sometime in early January _1983, Green however, from the "project description" distributed questionnaires to various Philippine accompanying the questionnaire that the open scholars. In none of these did he mention that panel was one means of eliciting information for his project was being funded by the CIA. On the CIA study: "We might discuss various the contrary, he attempted to convey the scenarios regarding when and how Marcos might Walden Bello is an associate of the Southeast Asia leave, the state of the various oppositions, Resource Center and a member of the advisory board possible successor regimes and what this might of Counterspy. mean to domestic and international futures and 28 -- Counte�6PY -- Vec. 8 3 - Feb. 84

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how these might be affected by external events, those invited to participate in the upcoming Ohio U.S. activity and the changing Philippine domestic panel in August, Green attempted to defend his scene." activity. In a letter to Professor Ron Edgerton, But Green was unable to keep his CIA work current head of the Philippine Studies Committee, under wraps. After more than six months of the Villanova professor protested: deception and under strong pressure from his The work I am doing for Booze-Allen is colleagues, Green admitted during the annual legitimate scholarship. I don't feel guilty meeting of the Asian Studies Association in taking CIA money to further a legitimate February 1983 that he was working for the CIA. scholarly endeavor. This is not the early .Despite heavy criticism, especially from many of seventies and as long as the CIA allows me to be [ as] free as the NSF [ National Science QUESTIONNAIRE roR KHU' ANO FOR NPA. Foundation], I don't see any difference in (Include Group■ Allied With MNLF) their money. After all, if how money was

ASSET QUESTIONS acquired was the basis of whether scholars accepted it or not then even Rockefeller, Carnegie and Ford Foundation are suspect. l. What is at ;,relent the number (estimated) of connitted What matters to �e is how free am I to act. •rmed, active (110bilized) manpower in the �PA? Green' s claim that his work was simply a 2. How many c:omu.t�ed and armed but ?resently inactive 1 11 (u..,aobilized) people couJ.d ohe NPA count on if it n.. ded t!'lem7 1 scholarly (By conaitted we mean member• of a group whose behavior endeavor is contradicted by none other is •ubject to group ■anctions and who may withdraw t:-om the group only either at their peril 9r with the group■ ;,erai111.on. > than the chief of the CIA's "Method5 and

l. Kow many armed•• supporters• ot t!"le �IP.\ .1re there? Forecasting Division," Richard Heuer, Jr. In

4. How many non-armed supporter■• of the �LF ue there? Quantitative Approaches to Limited Intelligence:

s. Any p�licly available information on the kind■, numbers The CIA Experience, Heuer writes: "While the md ■ource1 of NPA weapon■ you could provide us would be appreciated. academic researcher is relatively free to define � a problem in his own terms, our '[ CIA] research l. Ia then public dat.a that eat.imat•• the total value in dollar■ of weapon■ supplied to the }IPA from supporters out■ide problems are greatly defined by the requirements th• Philippine■? If no data. would ::•ou care to make &n eati•ate? of U.S. foreign policy. The academic researcher 2. Doea the NPA or individual member■ of the NPA control any sizable UIOW'lt of economic a.■aet:s :.n the Phili?pinel? For chooses a topic for which data are available, exaffl!'l•: whereas it is often new problems (or old problems (•> Do they ovn or control sizable lar.d holdinqa in the ?hilip?i:-:.ea? If :1•1, -.,,ould i'OU c.J.re to �•imtate thei.r val•.:.e defined in new ways) for which the policymaker in dollar■? (b) Do they own or cont.:ol any :::.J.pital •■sets (corporation■, requires intelligence analysis." trade) in the ?h1.ll.pp1.ne■? If so, would './OU c.Jre �o est:..�ate Heuer also touches on the role of a panel t!'!.eir value in dollars? (c) Do they control a s1za.ble amount of employl'!\er:t ; :obs) of analysts such as the one Green attempted to :.n -:.!'le ?hilippi�es? rf so, ·Jould :,·ou care ':O e1t1.ma-:.e !'!ow :nany? '�JOTE: Though ! suspec� ':�at the 1bove -=i::J.est1.ons are !'!leUu.r:.glesa convene at the Ohio conference: "Many of our :.� �!l• caae of ':.heNPA I m1qht Oe -..,ror.q, J.nd ·:n ar.y case �::.e :"o:-:-:.:it !or gatheri:iq data requires �h.1.t the quest:cns be asked) projects involve a panel of experts who are asked to make qualitative judgements - that is, assign •e·: 3:..:;::>orters -..e �e•r. �eople -,,,ho ire !"\Ot co�1tt.ed is"e J.Ccve) !:;n.oc ·,.i!iose ends and �.ear.s ;::arall•l -.:hoae of seme -;roup. :'hey !:lay probabilities, values or ranks to items of .1.� �!"'.e same :.:.�e be 3\;;:;:ort.ers ot 3noc�er group•.sl and ��us s�- information. CIA 's greatest resource is its cadre ••s;· ,1,rmed ve :-:,ean �!"l.e 3·.:p?Qr-:.ers ;:osl"o£3 so:'l\e �oder"!\ ....eapons. of substantive analysts with first class academic training who then come to the agency and INFORMATION ASSETS immerse themselves in a given specialty under l. ooea the NPA OWl'I, control or 1.nfluenc. any media, TV station, circumstances which prov ide access to the full radio station, new■paper■, raa9aainea in the Philippine■, etc.? It so how m&ny of ••ch? What•• your estimate of t.he audience that. t.h• :-IPA read\e■ through media? Kow many people i.n any year do intelligence collection resource of the U.S. they reach throu9h direct contact? government. Our task is not to replace the

SOCIAL COMPOSITION DATA subjective wisdom of these specialists with so­

Fill in t.he appropriate I ot. the NPA Nlllber■hip■ !or each of called objecti-ve data, but to use rigorous the following cat:e9orie■: methodological procedures to explicate and :. Ethno-linqui■tict What I of the N'PA 111ember1hip■ would fall in each of the major ethio-lin9uistic group■ of the Ph1li.ppinea, exploit more fully the insights and judgements of

Ilocanos__ _Taqaloq■ ____ Cebuano■ ___ _ these analysts.11 Once Green's CIA ties were exposed, he

2. Ed11cat.ion: Mo schoolin9__priaary__ _hiqh was pushed to resign from the chair of the "Post­ sehool__ _s011e college or �deqr••---· • Marcos Scenarios" panel :ind the- conference substituted a panel in which Green promised to J. Reqion: I ot. MPA from Not.hem Luzon ___central Luaon_ _ Southern t.uzon__ _Visaya■ __ _�indanao __ _ reveal his findings to date as well as to discuss "the moral and ethical propriety of my doing it 4. Social clua: Lower_ _ upper lower__ auddla ___ u�per ___ for the CIA." In a letter to his colleagues, Green stated: ''There is a snake in the garden of Eden 11 5. occupation: Blue collar and !armers, etc. __...,hite collar_ and I think we must exorcise it. ?rofea■ional■__ _■ tudents__ _• Green's confession in Ohio, however, failed to satisfy some scholars. David Wurf el of Windsor 6. Urban-rural: Urban__ _ rural__ _. University and Belinda Aquino of the University Counte��PY :_ Vec.83 - Feb.84 -- 29

Approved For Release 2010/06/14: CIA-RDP90-00845R000100130004-9 Approved For Release 2010/06/14: CIA-RDP90-00845R000100130004-9 of Hawaii drafted a resolution demanding that to counter revolutionary movements in Latin Green withdraw from the Booze, Allen and America. A number of CIA operatives have Hamilton/.CIA project. As Wurf el explained it, attained high academic positions in universities; "we saw this [ resolution] as a first step. If it e.g., James Billington of Princeton and Douglas failed, then we would consider bringing up the Pike of the University of California at Berkeley. matter to the Association of Asian Studies to Crisis periods in the Philippines have always judge according to its ethica l standards for elicited U.S. government-sponsored research on scholarship." Wurfel and others objected to the the roots of insurgency, designed to counter project not only on moral grounds· but also opposition or nip it in the bud. During the mid­ because of its potential impact on academic 1960s, for instance, the Office of Naval Research research on the Philippines. "Filipinos will never of the U.S. Department of Defense funneled over again trust us if they know our data will be used $500,000 to the Institue of Philippine Culture of for cloak-and-dagger ends," asserted one scholar. the Jesuit-run Ateneo de University. The The resolution was hotly-debated, but its sponsors Institute was to initiate various projects to study withdrew it from the floor when they determined key dimensions of Filipino social and political life that a significant number of Philippine specialists under the rubric of "basic research." Prior to viewed the proposal as a threat to their the imposition of martial law in the Philippines "independence" in choosing funding sources, and in 1972, the Air Force think tank, the Rand would vote it down. ''l can't believe how Corporation, did a study of the sources of threatened many of them felt," exclaimed one· instability in the country. proponent of the resolution. Green's research is part of a broader CIA The CIA 's use of academics for non- effort to tap scholars' brains to produce a "viable" academic objectives is not, of course, new. U.S. po licy for a post-\/larcos regime. In \/lay Michigan State University researchers were 1983, a top secret conference sponsored by the recruited to study how to "implant democracy" CIA in Washington, D.C. sought to bring together in in the late fifties in order to a number of Philippine experts. One of the undercut the Vietnamese national liberation conditions for participation, says a reliable movement. In the early sixties, the CIA tried source, was that those invited would not publicly to launch "Project Camelot"-an academic front divulge the proceedings. @ �@3@@@@@@@@@ese@e@@@eeee@@@e@@@@@@@@@@@@@@@@@E

Benigno Aquino and the CIA Joh� Kelly

Benigno Aquino, the Philippine opposition system of elite democracy in which different politician who was assassinated in Manila upon factions of the ru ling class alternated in political his return from exile in August 1983, was a office. Aquino, in short, might have been a firm contradictory human being. On the one hand, a anti-fascist, but to the end he remained a courageous individual who knew he was risking politician of the ruling-class mold. his life when he returned to the Philippines; on One aspect of Aquino's life which is not the other hand, Aquino was a very class-conscious well-known was the intersection of his political politician who defined his mission as salvaging career with the CIA. This relationship extended the Philippine ru ling class from the revolutionary back to 1954 when, as a 20-year-old journalist, conflagration now sweeping the country. Aquino, in his capacity a.s a special assistant to Before returning to his country, the former the CIA-sponsored President Ramon Magsaysay, senator publicly announced that he was· going negotiated the sur render of Luis Taruc, the back to defuse the tension between an Supremo of the old People's Army and of the old increasingly restive population and the isolated Communist Pa.rty.1 Magsaysay was literally dictatorship through "two-man negotiations" with created as a "man of the masses" by one of the Marcos for a "return to constitutional democ­ CIA 's most skilled operatives in Asia, the racy." That meant return to the pre-martial-law notorious Colonel Edward Landsdale.2 Landsdale's mission was to head off the John Kelly is co-Editor of Counterspy. rising insurgency of the People's Army, popularly 30 -- Counte��PY -- Vec.83 - Feb.84

Approved For Release 2010/06/14: CIA-RDP90-00845R000100130004-9 Approved For Release 2010/06/14: CIA-RDP90-00845R000100130004-9 known as Huks, right after World War II. To in Manila in 1971 but failed to kill Aquino, who accomplish this, he combined military had not yet arrived when grenades were thrown counterinsurgency efforts with a public relations onto the stage. Upon the declaration of martial campa ign to persuade the people that :\1.agsaysay, law in September 1972, Aquino was among the a small-time politician whom Landsdale had first arrested by the regime. Confined to Fort snatched from provincial obscurity, was "a man Bonifacio prison for almost eight years, Aquino of the masse.'>." Key in this public relations was sentenced to death by a military court in effort were young men handpicked by :\1.agsaysay 1977 on trumped-up charges of subversion and and Landsdale, both of whom had sensitive murder, together with the top leaders of the New antennae for talent. Not only Aquino but also People's Army, Bernable Buscayno and Victor a number of others who became prominent Corpuz. (Buscayno and Corpuz are still in �rison.) political figures in later years were introduced In .\1ay 1980, Aquino was released to to politics as their "special assistants." One of undergo heart surgery in the U.S., after which the "best and brightest" was RRul :Ylanglapus, who he settled in voluntary exile in Boston, first as served as :Ylagsaysay's under-secretary of foreign a fellow of Harvard's Center for International affairs, and went on to become a senator. Affairs, then of the Massachusetts Institute of \ilanglapus later founded the Movement for a Free Technology. While abroad, Aquino went on Philippines (�1FP), an anti-Marcos, anti­ speaking tours denouncing the dictatorship and Com m uni st exile group. developed ties with the opposition in exile. These One of the striking common characteristics activities gave Marcos the pretext to refuse to of the most prominent of the "Magsaysay Boys" guarantee Aquino's freedom or safety if he like Aquino was their being graduates of the returned to the Philippines. Jesuit-run Ateneo de Manila University, the Unlike most of the other Lansdale­ training ground of the sons of the Philippine elite. Magsaysay Boys, who remained ideological anti­ In the early 1950s, the American Jesuits who ran communists in their later years, Aquino prided the A teneo were at the forefront of the himself as a pragmatist who could work with both ideological struggle against the progressive right and left. While he was governor of Tarlac nationalist movement - making them natural Province, it was widely rumored that he had allies of their secular com patriots in the CIA worked out a "modus vivendi" with the New like Landsdale. People's Army (NPA), the reestablished People's Aqu ino's involvement with the CIA did not Army. While in exile, he did not hestiate to end when the Huks were defeated in 1954. After speak on the same platform with individuals his success in the Philippines, Landsdale went on adhering to the program of the leftist National to Vietnam, bringing with him a well-trained core Democratic Front (NDF). He also contributed to of Filipino counterinsurgents who operated under a "humanitarian" front called "Operation Brotherhood." In an interview with the Multi­ national Monitor in February 1981, Aquino provided a glimpse of his role in the Indochina One aspect of Aquino's life counterinsurgency effort in the mid and late 1950s. "I've worked with your CIA on many which is not well known is operations .... You know, I was assistant to three the intersection of his presidents. And once upon a tirrie I headed our own equivalent of the CIA. We had joint political career with the CIA. operations in Indonesia; we had joint operations in Laos; we were in Cambodia.'' By the late 1950s, Aquino's main concern was climbing up the Philippine political ladder. He became a town mayor at 22, provincial fundraising campaigns headed by the left, such governor at 28 and, at 35, the youngest person as the campaign to oppose the Marcos visit in ever elected to the Ph ilippine Senate. By the the fall of 1982. For this, he came under fire late 1960s, the ambitious Aquino, then secretary from his colleagues in the elite opposition, like general of the opposition Liberal Party, had Manglapus. "I don't understand these people," an positioned himself as President Marcos's main exasperated Aqu ino told a Counterspv associate political rival. He was ta gged the "wonder boy" in an interview in February 1981. "We're all of Philippine politics and many. confidently un ited in the objective of overthrowing Marcos. predicted that he would become president, after We have differences with the Communists, yes, Marcos, who was constitutionallv barred from a but we'll worry about them when we're rid of th ird term, stepped down in 1973. Marcos, however, had othei )lans. He :Ylarcos." engineered the bombing of a Liberb, Party rally SEE MARCOS, pg. 38 Ccu.nte't�/Jlf -- Vee. S3 - ivb. 8+ -- 31

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Military Coup in Guatemala Back to the Line of Command Jeanne Walsh and Martha Wenger

When military officers leading a coup against in these cases, and could. be considered "normal." Guatemalan President Efrain Rios Montt stormed The day after the coup, U.S. Ambassador the presidential palace on the morning of August Frederick Chapin met privately with General 8, 1983 the U.S. military attache was not far �ejia Victores and emerged to announce that away. Several eyewitnesses saw the U.S. "Guatemala is now moving towards a democratic Embassy's �ajar William Mercado inside the government." palace itself, walkie-talkie in hand, monitoring Representatives of the Guatemalan opposi­ the unfolding coup. The Reagan administration tion movement in exile in Mexico City are clearly had been informed in advance of the coup, convinced that the Reagan administration had and quite possibly had helped the coup-maker, ample reason to want Rios Montt removed. Most General Oscar Humberto Mejia Victores. notably, he was extremely reluctant to permit Only two days bef:ore the coup, �ejia Guatemala to be used as a training base for other Victores, then Defense Minister, met with his El U.S.-backed Central American armies. Guate­ Salvadoran and Honduran counterparts and Lt. mala's own 20,000-member army is considered Gen. Paul F. Gorman, top officer of the Panama­ the top-notch counterinsurgency force in the based U.S. Southern Command. He also paid a region, the product of extensive U.S. training and visit to the U.S.S. Ranger, operating just off aid during the 1960s. A� high;ranking Guatemalan Nicaragua's coast as part of President Reagan's government official told the Washington Post gunboat diplomacy exercise in the Caribbean. (August 14) that Rios Montt considered the Immediately after the coup was launched, two Salvadoran Army "an undisciplined force with U.S. C-lA Trader aircraft, possibly from the little motivation and little inclination to Ranger, landed in Guatemala City. They improve," and he had always vetoed plans for remained °'1 the ground for several hours, until closer military cooperation. Guatemalan radio announced that Mejia Victores was the new chief of state. Reagan administration spokespersons have not denied these facts, but have downplayed their significance. A U.S. Embassy official who asked not to be identified told the Philadelphia Inquirer (August 24, 1983), "I can give you a whole list of things - our man with the walkie-talkie inside the palace, planes landing that morning, Mejia visiting the Ranger the Saturday be.fore - they all had absolutely nothing to do with the coup." State Department spokesperson John Hughes said August 9 that the presence of a U.S. military attache in the palace was a "customary practice" Jeanne Walsh is a Co-coordinator of the National Network in Solidarity with the People of Guatemala. Martha Wenger is a freelance writer and a member of Counterspy's advisory board. 32 -- Coun�e�6py -- Vec.83 - Feb.84

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Mejia Victores, on the other hand, had infrastructure of the Guatemalan National signaled his readiness to collaborate more closely Revolutionary Unity, the front representing the with El Salvador and Honduras. Just days after four main guerrilla groups. Instead, in a brutal the coup, the Washington Post reported on August internal war against so-called "subversives," the 14, he said that Guatemalan counterinsurgency army killed between 5,000 and 15,000 people, most experts would train El Salvadoran soldiers at of them Indian peasants, making it impossible for bases in Guatemala in exchange for light weapons the Rea gan administration to win congressional and ammunition from El Salvador's U.S.-supplied approval to resume U.S. military aid. The arsenal. (This exchange represents a convenient Guatemalan President's indiscrete public circumvention of the congressional ban on U.S. references to his "scorched communists" policy military aid to Guatemala, in effect since 1977 did not help matters. due to human rights violations.) Mejia Victores' seizure of power represents Despite an obvious "coincidence of a return to the traditional military leadership. interests" between the U.S. government and Mejia His coup was endorsed by the old-line army high Victores, Guatemalan opposition spokespersons command, which felt that Rios Montt had are doubtful that the Reagan administration overstepped his bounds, to their de triment. Yet actually engineered the coup or handpicked the while Mejia Victores will not be as eccentric a General to succeed Rios Montt. Instead, they ruler as Rios Montt, his hands are no less bloody. believe, Mejia Victores had already decided on A 30-year veteran of the Guatemalan army, the coup, motivated primarily by internal factors, Mejia Victores is an "organization" man who has and the U.S. then gave the green light. faithfully served his superiors - with the notable Rumors of coups had been flying steadily recent exception. He was Deputy Defense long before Mejia Victores took concrete action. Minister under the brutal Lucas Garcia regime In June 1983, an attempt - unsuccessful - was (1978-1982). In 1977, he founded the Center of made by another general. The Rios Montt regime Computation in the Ministry of Defense, which had long posed a dilemma for both the Reagan kept a registry of pe asant, Christian, labor, administration and the traditional ruling elements student, professional and political leaders - many of Guatemala. Rios Montt's staunch pu blic of whom have since been murdered or have adherence to a fanatically fundamentalist disappeared. As Rios Montt's Defense Minister, Protestant sect had isolated him in this Mejia Victores was the man most directly overwhelmingly Catholic country. P.e had responsible for planning and executing the alienated the traditional Guatemalan power systematic counterinsurgency war. brokers by bringing in top members of his sect to advise him, and had often bypassed the traditional military hierarchy in favor of junior officers. During the 16 months of his rule, Rios Montt became less and less willing to share political State Department power with other rightwing forces such as the spokesperson John Hughes National Liberation Movement (MLN), the self­ described "party of organized violence."* In June said ...that the presence of 1982, he forced two other members of the junta to resign and declared himself "sole ruler". The a U.S.military attache fn the MLN had long pushed Rios Montt to call for elections, for they knew that among the palace (during the coup) electorate that would vote at all, they would was a 11customarypractice " certainly win. Yet to the end, Rios Montt put off setting a date for presidential elections. ...and should be In economic terms, Rios Montt's rule had been disastrous: unemployment and inflation considered "normal." were both high and the unstable war environment was bad for business so that even parts of the middle and ruling classes had turned against him. Perhaps most importantly, Rios Montt's In the weeks since the coup, government­ much vaunted Victory Plan 82 - the military backed murders have continued unabated. In the strategy which was to crush the popular first week of September alone, according to the revolutionary movement - failed to disrupt the National Police, 50 bodies, bearing the marks of torture and with faces disfigured to prevent *A leader of th is party coined their slogan: "Music, when orchestrated, is a symphony. Vio lence, when identification, were found along highways and in organized, is strength." wastelands throughout the country. The non- Co untek6 p y -- Vec.83 - Feb:84 -- 33

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governmental Guatemalan Human Rights awaited only congressional approval. Commission reports that at least 1,000 persons That co,ngressional approval may prove were kidnapped or killed in the first two weeks difficult to win. One reason Mejia Victores was after the coup. not a .favored son of the Reagan administration Still, the Reagan administration hopes that is that the General has a running public feud :\1.ejia Victores can sufficiently clean up with Representative Clarence Long (D-MD), who Guatemala's badly-tarnished international image wields considerable influence on Central to permit resumption of direct U.S. military aid. American issues in Congress. When Long per­ Mejia Victores is eager for that as well. He said sisted in raising human rights concerns while on September 3, after a meeting with U.S. visiting Guatemala earlier this year, Mejia Assistant Secretary of State Langhorne Motley, Yictores exploded into a shouting match with the that "economic aid from the United States is Representative, topping it off by calling Long a beginning to come through, with no conditions of "communist" and "a member of the Guerrilla any kind attached." Four days later he Army of the Poor," one of the armed opposition announced, somewhat prematurely, that groups in Guatemala. @ resumption of U.S. military aid was imminent and

The Inhuman Face of Covert Operations against Nicaragua Ruth M. Fitzpatrick

.-\ slogan heard frequently today in Nica ragua is, La Lodosa camp. Four young men from that "between Revolution and Christianity, there is no coffee brigade eventually escaped and lived to contradiction." On July 30, 1983, a mass tell the story of how the Barredas were tortured celebrated in the northern Nicaraguan city of because of their un relenting commitment to Esteli in memory of a local couple took those Christianity and to the Sandinista revolution. words out of the realm of rhetoric and put a The Barredas, who themselves were human face on them for some 30 North Americans relatively well off - he a respected watchmaker, spending time there. The story of how Felipe she a talented hairdresser - got involved in the and Mary Barreda lived and died propelled us into revolution in 197 5. Changes within the Catholic the reality of torture and death, direct products church in the wake of the Second Vatican Council of the Reagan administration's war against the had motivated the Barredas to become involved Sandinista government of Nicaragua. in social work in poor neighborhoods and rural Felipe an d Mary Barreda,both about 50 and areas. They oegan working with the Sandinista · married for 31 years, were greatly loved and National Liberation Front, carrying messages and admired in Esteli for their deep commitment to arms, looking after the wounded, and organizing both their church and their revolution. Just Christian base communities that became the before Christmas 1982, they had gone to the backbone of the revolutionary movement in border area near Honduras to pick coffee on a Esteli. The Barredas eventually sold their finca, or large farm. There, counterrevolu­ personal belongings to help those fighting to tionaries (contras), most of them former members def eat the Somoza dictatorship. of Anastasio Somoza's National Guard, attacked After the triumph of the revolution, from the coffee pickers, took them prisoner and forced 1979-1981, Mary held various positions in the them across the border into Honduras where they Esteli municipal government, while Felipe did were interrogated and tortured in the contras' grassroots organizing. Both also were active in the Esteli church, the most dynamic diocese in Ruth McDonough Fitzpatrick is an ac tivist on Nica ragua. central America who spent a number of weeks in According to the personal testimony of Esteli, Nicaragua. 34 -- Coun�e��PY -- Ve�.83 - Feb.84

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Jesus Rodriguez (a pseudonym), a young man who an hour of rest," Rodriguez went on, "the Guardia was kidnapped with them and later escaped , the started torturing us and asking us what we did volunteer coffee-picking bri gades were organized for the revolution." so that the people's fear of the counter­ "A Honduran guard began torturing us with revolutionaries would be broken and the coffee a gun behind our ears. He would interrogate us near the border of Honduras harvested. He and and hit the back of our heads with the gun butt. the Barredas joined a group of volunteers and The Hondurans were well armed. When he had went to a coffee farm called Agronica, a few the gun to my ear, I had no idea if he would kil ometers from the Honduran border: "It was kill me: 'Look, I hope you're not afraid of death, perilous territory. There were 53 in the brigade. you son of a whore,' he told me. " I had never had any training in using a gun, but After more forced marching, they arrived the Sandinistas gave four of us gun.5 and some at a ranch house. Felipe Barreda was completely instructions on how to use them." Rodriguez ex hausted and started shouting, "'I can't stand noted that contras attacked the farm even before any more! Leave me here and let me rest! Kill the volunteers' truck arrived , but members of me, let me die!' They beat him more forcefully, the Sandinista Army scared them off. screaming vulgarities and threatening to cut off The next morning at about 11 :30, Rodriguez, his ears and make others carry him. " out in the field working, heard the first shots of Some of the Guardia remained behind with an attack. ":Vly mouth dried completely. It was Felipe while Rodriguez's group went ahead: "We a perfect place for an am bush-down in a proceeded to a contra camp that was full of ravine--and they were shooting from the hillsides. Guardia. A Commandante Negra gave me food I shot off my gun until that fatal moment when and some coffee. Forty of them, including Mary I ran out of ammunition. I was shooting a lot Barreda, were already in camp ahead of us. All to protect the people and realized I had used up of the military th ings I saw there were from the even my 'medicine pill,' the final bullet you save U.S. There were boxes of radio equipment; all to kill yourself with." the gun belts and holsters were the kind they The farm house and some volunteers were use in the U.S." The prisoners were held in that captUPed, and Rodriguez gave himself up when main camp for one day, blindfolded and tied to some Guardia (ex-National Guardsmen) found him. trees. Then they were taken to a little shack They bound his arms behind his back with pl astic away from the main part of the camp. handcuffs, and marched him towards Honduras. There, says Rodriguez, "they started tak ing The Sandinista Army counterattacked the off all of our clothes, blindfolding us, and tying band of contras, but they fled across the border us really strongly again. When I was not yet into Honduras, forcing the kidnapped coffee­ blindfolded, I saw they had knives. Before they pickers to come with them. About ten kilometers retied one prisoner, he tore away, and was into Honduras, one of the Guardia began hitting recaptured screaming, 'Please don't kill me."' Rodriguez, saying , "You're nice , but you're a "'Get ready to die,' they warned, 'because communist." "He then took my money, checks we 're going to kill you.' I remember standing and ph otographs," Rodriguez said. "When he was stiff, standing waiting to die. Suddenly someone examining my literacy cam pai gn identification, else came and took us back into the house, he asked me about teaching communism. I said, handcuffed the four of us to each other with two 'No, I was teaching them to read."' handcuffs." Rodriguez and a companion were tied to a One Nicaraguan, who had probably been pole and forced to carry the body of a contra cap tured like Rodriguez and forced to work for killed during the run for the border. "Our hands the contras, tried to escape. The Honduran were lashed to the pole. The dead man's head National Guard brought him back to camp and was right at my head. It was ve ry hard with the Somocistas killed him. "He was forced to out wrists tied to the pole like that. We walked dig his own grave: 'We will not waste a bullet for two or three hours carrying the cadaver until on you, traitor.' And so they ba yonetted him to the other man said he could not go on until untied death." from the pole. We were then tied in a line with "Two days later, someone brought a bl as ting a rope keeping the four of us about three feet loud radio to our shed. We were blindfolded and apart from each other." made to stand with our noses to the wall - a "At about nine at night we arrived at a form of torture that went on all day. If I got house to stay for the night. Then came Felipe dizzy , and my head started to pull away from Barreda and another kidnapped coffee picker. the wall, someone slammed my nose back to the Felipe was bleed ing from his ears, mouth and wall. The music from the radio was to hide the nose. " He and :\1ary Barreda had been kidnapped screams of Felipe, but it couldn't cover up his during th e sa me contra attack, but were brought piercing screams while they tortured him." The into Honduras separately. "After about a half man who brought the radio, according to Counte�¢py -- Vec.83 - Feb.84 -- 35

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Rodriguez, had an Argentine accent. doctors to 'see her. "Mary had a furious fever. Rodriguez's nerves gave out listening to She was having vaginal hemorrhaging. The doctor Felipe being tortured, and he hoped they would gave her some pills and a piece of plastic to put kill him rather than torture him. ''I'm ashamed over her. We were sleeping on the ground. I to say I denied any connections with the don't know what had happened to her. Had she revolution. It was the only way I could think of been raped? Who knows? I had been separated to save my life." from her." "On the other hand, Mary was interrogated On the third day of their captivity, says and she refused to deny any ties she had with Rodriguez, "higher level contras came to the revolution. She had a total revolutionary interrogate us." There were also journalists from conviction. Everything they said against the Radio 15 September, the contra radio station in revolution, she would deny and tell them what it Honduras. "There were also other journalists and was like. They would strike and beat her husband they took about 80 photographs. They had us for her statements. They accused Felipe of being holding the blue and white flag of Nicaragua with a spy working for National Security of guards with AKA guns beh ind us. I think the Nica ragua." .\KAs were what Israel had captured from the Rodriguez said that Mary was so sick at PLO and sold to Honduras. They also had people one point that the contras brought one of their from America Libre (Free America), a paper Contra Terror in Nicaragua

Patricia Hynds, a Maryknoll lay What is the logic behind the time as an attack on El Espino, missionary, works for the Central contras' terrorization of ci­ on the Pan American crossing into American Historical Institute in vilians? Honduras. You can imagine the devastating effect these coordi­ Managua, Nicaragua. She travels Clearly the contra bands do not nated attacks have on commercial frequently to the province of want to engage the Sandinista transportation and trade. 7.elaya and is in close contact Army in battle; terrorization is with many of the remote actually seen as preferable to There seem to be contradictory communities of the Atlantic direct confrontation .... The contra opinions in the Costa Rican coast. Of late, cowiterrevolu­ acti viti es have been going on government about aiding the tionary bands based in Honduras heavily since December of 1981 contras. What is the current have repeatedly attacked these and they have made no substantial degree of cooperation of the isolated villages. During an military gains in that time. Their Costa Rican government and October visit to Washington, only strength is in their ability to border patrol with the contras in· D.C Patricia Hynds talked with ., brutalize the popu lation, frighten the South? Cowiterspy's Joy Hackel and them into immobility and through described at some length a During the recent attack on Penas that wreak havoc economically, massacre by contras which took Blanca, which the Democratic disrupt government programs and place August 31 through Revolutionary Alliance (ARDE) of production•••• September 2, 1983, in the Bocana Eden Pastora claims to have held In the countryside people de Paiwas area in Zelaya Central. for 15 minutes, there is consid­ ask the government for arms so erable evidence, including state­ A pastor from this desolate area, that they can de fend themselves. Jim Feltz, had reco1D1ted the ments by the head of the rural For the first few days after the atrocity to her. guard in Costa Rica, that the attack they were issued auto­ rural guard drew their people While in the last few years fifty matic weapons, but these were back several kilometers and gave civilians had been killed in this needed somewhere else and soon ARDE free rein. ARDE people particular parish, in those three were taken back. So the peasants are telling reporters that Angel days 20 people, all of them were left with their hunting rifles civilians, were done away with by or machetes. Edemundo Solano, the Costa the contras. Three women were Rican Minister of Public Security, Has the coordination between raped, 18 farms burned to the is furious about the attack contra groups in the North and ground and 25 villagers kidnapped. because it obviously jeopardizes those in the South improved? Costa Rica's supposed position of Peasants were hung from the neutrality. Yet the U.S. Am­ rafters of their homes, throats There is growing evidence of bassador to Costa Rica, Curtin were slit, beheaded bodies were increasing cooperation. A serious Windsor, says that Solano was thrown into the river. This work attack on September 18 on Penas of the contras is the "democratic Blanca, which is on the Pan being too vigorous in interpreting Costa Rican President :Ylonge's alternative" that. U.S. money is American highway leading into supporting. Costa Rica, came at the same declaration of neutrality . Wind-

36 -- Counte��PY -- Vec. 8 3 - Feb. 84

Approved For Release 2010/06/14 : CIA-RDP90-00845R000100130004-9 Approved For Release 2010/06/14: CIA-RDP90-00845R000100130004-9 published in \-liami." These journalists told all said 'U.S.A.' We were tape-recorded and Rodriguez that "there were airplanes in video-taped. They had a TV set, an electric Guatemala Naiting for an order from Reagan to generator - all kinds of supplies. invade �icaragua." "Eventually there came a point when they ''For the photographs, they gave Mary new began to act towards us as if we were not guilty. pa nts, a shirt, washed her face, did her. hair, We stayed in the camp two days longer... On combed it; made up her face so she would look January 6th,. we were tied, blindfolded and taken pleasant, happy and optimistic about wha t was from the house we were kept in. Felipe and going on in the camp. Commandante Negra lent :vlary Barreda remained in the contra camp. They me his shirt to put on over mine; I started didn't tell us where they were taking us. We unbuttoning it to show my brigadista shirt had met Commandante Suicide in the Guardia underneath. They yanked me away from the camp and he took us to a Nicaraguan refugee cameras. camp in a town called Danli, about 35 kilometers "There were a lot of supplies in that camp. from the border." Blue uniforms. Black berets. Medical supplies. It was in this camp of people who "left A ridiculous number of guns. North American Nicaragua for one reason or another" that jungle boots - green boots that breathe. The Rodriguez and three companions worked and lived packets on their belts where they kept medicine under lighter security because "the Guardia had

sor is also a good personal fr iend course there is an extensive In the face of escalating contra of Alfonso Robelo, a wealthy commitment to infrastructure activity Nicaragua imtituted a Pastora supporter. work from Israel and the U .S.-to military service conscription law put in roads in Costa Rica for Rica continue to in August 1983. Every male be­ Can Costa which there is no real function maintain a "low profile" in regard tween 17 and 21 is required to except to have military access. to harboring the contras? register for a two year con­ The CIA apparently gave the scription. Opposition parties such The situation with Costa Rica is contras explicit marching orders as the Democratic Conservative becoming so serious because in July 1983 that they had only Party have condemned the law. Honduras is having a difficult several months to "shape up." How have other organizations time projecting itself as the responded? ''victim" of the Sandinistas. Can the contra forces, in their Especially with 5,000 U.S. troops present composition, make a There has been some opposition, there, it's hard to picture them significant improvement in their which was probably mainly caused as weak, as a country under performance? by a lack of preparation by the attack. There seems to be a shift For the past two ye ars the Sandinistas for the fact that the to place that image onto Costa contras have been attempting to law was coming, although the Rica. take over a section of Nicaragua groundwork for the law was laid and for two years they have not in July 1979. In \1anagua and Does Eden Pastora of ARDK have been able to do it, even on a brief border areas the reaction has any popular support among Costa been rather positive. In farming Ricans on the border area? basis. One of the favorite stories of newspeople is to be taken for areas, there is not so much People in the northern Costa a ride by Pastora and being told opposition to the draft but Rican border area have been that they are in Nicaraguan concern about what it will mean supportive of Pastora. Yet his territory when it is obvious to in terms of caring for the crops. excesses, perhaps, are beginning anyone who knows the area that According to the Protestant to turn them. A team of it is Costa Rica .... Pastora does Church, the Sandinista govern­ reporters I know had been in a have a certain amount of mobility ment has agreed, in practice, to Costa Rican village, Santa Rosa, in the swamps on the border, but respect an individual's pacifist a couple of months ago and the there isn't anyone in the swamps beliefs and will offer alternative people there at that time were to dispute his wandering. He service to those requesting it. openly pulling for Pastora. The al ways appears very hard pressed The strongest opposition to reporters were there again three for money. He told the press in the law has come from the weeks ago and said that the Costa Rica that he managed to organized women, who oppose the atmo.phere had changed con­ get the money for the airplanes fact that service is not mandatory siderably. People were now com­ he used to do the recent bombing for women. I think the women plaining about Pastora's• presence. of \1anagua, $650,000, from the of Nicaragua are very proud of His men had killed six people in ex-Nicaraguan Ambassador to the strategic combative role they that town just recently because Washington, Senor Francisco played in the overthrow of they were suspected of being Fiallo..... But if the contras are Somoza. Like women everywhere Sandinista supporters. Yet the going to do anything effective, they hope that this role will not have to be one of their priorities, contras are hiring Costa Rican ever, there is going to have to youths and paying them, in U.S. be more cooperation between the yet they are prepared to defend dollars, up to $1,000 per month separate forces. their homeland and their struggle. to fight with Pastora. And of

Counte��py -- Vec.83 - Feb,84 -- 37

Approved For Release 2010/06/14: CIA-RDP90-00845R000100130004-9 Approved For Release 2010/06/14 : CIA-RDP90-00845R000100130004-9 decided we were integrated ••• All the while, in fear left. 'If I die now, I die in Nicaragua Libre,' the meantime, we were planning Olll' escape." I thought to myself. I was happy to be free, The final episode of Rodriguez's captivity but sad about the companeros we had left in sounds like a second-rate Hollywood thriller: "On Honduras." January 9," he said, "two of us entered the On August 6, 1983, an independent .\ilanagua telecommunications office in Danli. We first newspaper, El Nuevo Diario, revealed that La talked to Esteli Telcor [ the telephone company Lodosa, the camp where Rodriguez and his switchboard in Esteli, Nicaragua]. They told us companions were held, is a key center for contras to call the Nicaraguan Embassy in Teguc igalpa from the Nicaraguan Democratic Force (F DN), [ the capital of Honduras]." Rodriguez asked the most of whom are ex-National Guard members operator to dial the Embassy. from the Somoza era. This expose centered on Then, he said, ''l got really worried. The an "Argentine Colonel, Shntiago Villegas, an agent receptionist said 'These people never answer the of the CIA in Honduras, who supplies the contra." phone; I'm going to hang up.' On the seventh La Lodosa is identified as the location of a school ring, a man answered. We told him we'd been for commandos in which Villegas and kidnapped and he told us to get the others and Commandante Suicide work. A photograph shows 'Stay exactly where you are.' the sign over the school's entrance, with the "We went to the house to get the other words "Commandos Welcome, School of FDN two, and went back to the telecommunications Commandos." Painted underneath are the contra office. We stayed inside there so the Guardia slogans: "Commandos Always to the Front" and would not see us and be suspicious. "God, Fatherland, Democracy." "Forty-five minutes after the phone call, a The companions Rodriguez left behind - person drove up in a car and asked, "Are you Felipe and .\ilary Barreda - were killed in early the persons kidnapped?' 'Yes.1 We got into the April by the contras. According to the Central car and it headed toward the border. The driver American Historical Institute of Georgetown said, 'We're all in this together now: if we get University in Washington, D.C., the Honduran caught, we are all dead.' We passed the border government has acknowledged that they are guard into free country. I felt relieved. All my buried at the edge of La Lodosa camp. @ @@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@E MARCOS CON1'. fran pg. 31 the Soviet Union; by mid-1983, he was calling The left, nevertheless, maintained a healthy for their "eventual withdrawal" since they made caution in dealing with Aquino, who also revealed "the U.S. hostage to Marcos." that he reeeived periodic briefings from the CIA Had Aquino lived, he would probably have and the State Department while Jimmy Carter become more and more of a nationalist, if only was still president. Aquino, for his part, did not to keep up with the swift movement of the hestiate to articulate his differences with the general Philippine population to the left. But he National Democratic Front. Foremost among would have remained as well a ruling class these was his belief that the United States was politician. It was a contradiction with which the key to change in the Philippines. Part of this progressive movement was prepared to live at a conviction undoubtedly stemmed from his ruling stage when the key task was overthrowing the class origins; part from a naive belief that he U .S.-Marcos dictatorship. Indeed, right before could "control" the U.S. "You know, we Aquino embarked on his fatal mission, National overestimate the impact of the United States on Democratic Front representatives offered him the Philippines," he remarked to a CounterspY sanctuary in the Philippines in areas controlled associate at Harvard in January 1982. "We can by the New People's Army. @ manage the U.S. by using the carrot and the Footnotes: stick. We can arrive at more equal terms with 1) In 1968 and 1969, respectively, the Communist Party the multinationals. What we need is more and the People's Army were reestablished on the line that political will and less rhetoric." armed struggle was a strategic priority for the movement Aquino, however, grew increasingly in the Philippines. The old People's Army and the old frustrated with the U.S. after the Reagan Communist Party emphasized the strategy of finding a administration came to power in 1981. Harassed parliamentary road to liberation; they eventually surrendered to Marcos in 197 4 and characterize

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Ireland: British Counter­ insurgency, Armed Struggle and the Mass Movement

Bernadette Devlin VI�Aliskey and Martha Army reemerged. Its initial mission was to VIcClelland are prominent members of the Irish protect the nationalist community, but the liberation movement. Both interviews were given struggle soon rekindled its republican aspirations in the summer of 1983 during an important turning and the Irish national liberation struggle was point for the movement. In June 1983, Sinn Fein, reborn. the political wing of the Irish Republican Army Since the early 1970s, the IRA 's main (IRA), won 40 percent of the nationalist vote in emphasis has been guerrilla warfare. The the British Parliamentary elections, and Sinn Fein significance of its recent return to building a Vice President Gerry Adams was elected Member mass movement is explored in the following of Parliament from West Belfast. This victory interviews. was followed by the election of the first Sinn Both women speak of the hunger strike and Fein member to the Belfast City Council. the H-Block ;:>rison struggle. They are referring The parliamentary and city council elections to the struggle the Irish republican prisoners of represent Sinn Fein's first major effort to extend H-Block prison waged against Britain's move to the national liberation struggle beyond guerrilla replace their political status with common warfare to building a politically conscious mass criminal status. The protest culminated in the movement. 1981 hunger strike in which ten men starved to The movement today is a direct outgrowth death before a compromise was reached. The of Ireland's 800-year-old struggle against British hunger strike engendered the largest mobilization . occupation. In 1922, in an effort to diffuse a of the community since the 1960s civil rights revolutionary nationalist movement, Britain movement and induced Sinn Fein to reconsider partitioned Ireland. Twenty-six southern counties its sole emphasis on the guerrilla struggle and to became the Irish Free State, while parts of nine decide to seriously work to develop a parallel northern counties were gerrymandered into a pro­ mass movement. @ British loyalist bastion under direct British rule. Bank.lJ'lre This arrangement secured British financial, industrial and agricultural interests throughout • Ireland and prevented the realization of a true Irish republic. In the North of Ireland, the predominately Catholic nationalist community quickly found it had become a despised minority underclass in a reactionary loyalist state run by a Protestant �our,011. ascendancy. This state of affairs engendered the r civil rights movement of the 1960s. After loyalist S!liTUS i· mobs, the Irish police and the British army repeatedly and brutally attacked this non-violent fOR movement, the nearly-defunct Irish Republican

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Approved For Release 2010/06/14: CIA-RDP90-00845R000100130004-9 Approved For Release 2010/06/14: CIA-RDP90-00845R000100130004-9 Bernadette Devlin McAliskey What Price Reunification?

What do you think of Sinn Fein's between now and the European issue. Registered unemployment participation in the recent Parliamentary elections some is at 20 percent. The pattern of elections to the Belfast City means which will allow them to unemployment is comparable with Council and the British develop into a mass revolutionary any area of America where you Parliament? party where people will become have Native American, Black, and active not just on the national Puerto Rican centers of popu­ Well, I think it is very good as question but also on unem­ lation. That is, the level of far as it sharpens the issues for ployment and the women's unemployment here among the Sinn Fein, as far as it puts the question:. That, I believe, is their socially deprived is, on average, muscle on Sinn Fein to stop being next step. twice the national rate. In areas vague. So far, Sinn Fein is People like Gerry Adams like here or West Belfast, which recognized as a broadly radical, (Sinn Fein Vice President and MP is predominantly Catholic na­ often as a socialist organization, from West Belfast) and the new tionalist, unemployment is 50 to but it has no clear philosphy. I young leadership of Belfast I have 60 percent. don't mean in terms of sects or every confidence in. But it's not When you consider the anything like that. It has never going to be easy for them. The degree of unemployment among actually been thought out or more they move forward, the youth here and then you ask them discussed to my knowledge the more they are going to have to what is the major problem and reproduction of wealth, what that deal with the issue of the South. they say the Brits, you get a sense means, what that entails. They How do they retain the national of how crucial the national are for a vaguely socialist Ireland level of organization when, politi­ question is. It stands to reason but I don't think they have clearly cally speaking, their southern when 75 percent of the young worked out or committed rump is ,far behind them? people don't have a jo b their themselves to any particular idea They will have to persuade natural response should be of how things work. I One of the main problems Bernadette Devlin McAliskey has been a leader in the see at this stage is very much like the 9ays of demonstrations northern Ireland struggle since the civil rights days when during the hunger strike in 1981. she was a student at Queens University. She was elected After you put your 150,000 on the to the British parliament in 1969 at the age of 21 and streets in Dublin, then what do remained a member until 197 4. In 1980 and 1981, she you do? Can you top that was public relations officer of the National H-Block demonstration? After they run Armagh Committee, the principal mobilizing group for for the European Parliament next the hunger strike. Her leadership in this group made year they will have more or less peaked the electoral support. her an assassination target. She and her husband were Then they have to say: now what critically wounded in one attempt on her life in January are we to do? Do we seriously 1981. Recently she has toured Ireland and the United go into constitutional politics? States in support of a variety of causes related to the I think there is very little Irish national liberation struggle. McAliskey lives in danger of that. But if Sinn Fein Coalisland, northern Ireland. @ is· not going to do that, if they are not going to become a more the South (the Sinn Fein of radical, more republican, more "unemployment." But they recog­ southern Ireland), which is on a principled Socialist Democratic nize that there is no way the different wavelength altogether, and Labor Party, then they have unemployment pattern is going to to look for alternatives. I don't to go in their direction. That change until the constitutional know if Sinn Fein has thought may lead to difficulties. Hope­ question is changed. about that sufficiently. fully they will be resolved Poverty is another major politically. But it is not totally This is the point in the problem here. The monetarist impossible that it may lead to a movement where there is policies in Brilain have a worse a split in the party. danger of degenerating into effect here than anywhere else. constituency services such as What do you see as the major People with work are paid less tenants associations and social issues in northem Ireland today? than the national average. Things that in my childhood were work - basically getting sucked Well, the central issue is still dreaded but had disappeared have into making the system work. . If partition. It's the underlying come to be dreaded again. In they are not going to do that then factor that influences everything this area children have died of they are going to have to develop else. Unemployment is another · menengitis and polio. It has to 40 -- Counze�¢py -- Vec.83 - Feb.84.

Approved For Release 2010/06/14: CIA-RDP90-00845R000100130004-9 Approved For Release 2010/06/14: CIA-RDP90-00845R000100130004-9 I think in this generation, with the nuclear threat, the choice is between Marxism or nothing ... The world is going to have to be shared. I think Ronald Reagan would rather blow the world up than allow it to be shared. So it is up to the rest of us to take it away fromhim and people like him before they destroy it.

reflect on the quality of life when fears I have is that there hasn't during their fight for political things like rickets, polio, menen­ been sufficient popular work done status. Moreover, they supported gitis, and gastroenteritis are in this country on the question of the women's peace movement (a becoming commonplace. It has NATO and the nuclear arms race. short lived movement that called to reflect on the social economic Therefore it is remote to too on nationalist guerrillas to lay position of the people which many people. They do not con­ down their arms) despite the fact suffer those diseases. sider rnernbership in NATO or that the women in the peace being part of the nuclear arms movement were not feminists. U .s. Intervention race too high a price for freedom. By and large the wornen in I believe that it is. If someone Are you aware that there is an the national movement support sa id to me you can have a united effort within the republican the feminist struggle. It is still Ireland in the morning if you join support movement in America very rnuch one-way traffic. You NATO, I'd say no thank you. that has been encouraging the get the anti-imperialist women We'll take freedom our own way U.S. govemment to intervene in supporting the feminists bu t not and on our own terms. some way in Ireland? For the other way around. The instance, in the New York state southern feminists are very The Women's :Vlovernent legislature there is a resolution supportive of contraceptive and calling for a U.S. envoy to be Do you feel the women's question abortion rights bu t are totally appointed to resolve the northem has been effectively addressed by opposed to women's role in the Ireland dispute diplomatically. the republican movement? national struggle. They are totally opposed to what the I don't have much detail on that. It's very difficult for the repu blican movement stands for. I do have my own political republican movement given its They refuse to confront the fact instincts. I do not believe in the historical development and the that we are not oppressed simply fellowship of' countries dominated level of consciousness. I think it because we are women but also by multinational corporations. is clear that the best feminists because we are working class What is America·? It is not the in Ireland are those who have women and because we are American people, it is American developed through the republican working class republican women. money and American companies. movement. We came to an I do not believe they are awareness of feminism almost at Organizing the South interested in Ireland for any the last stage of our development purpose other than to make more in fighting against repression. Getting back to the national money in Ireland than they would There has also been an question. How does the South fit make if they pu t the money independent women's movement into the republican movement somewhere else. For us that in the South for some time. The today? would mean we would have to problem is the women's move- I think the key is that we are accept their terms of investment, ment has focussed exclusively on talking about the reunification of their wage structure, and their the right of a woman to control the island and the South is a anti-union bias. Their invest­ her own body. major part of it. What is not ments would also stengthen their clear is that after 50 or 60 years hand for pushing against Irish Are you saying there is 00 integration of the national and of partition there is nowhere left neutrality. run women's question among the to . It must take on the feminists in the South? question of partition. Joining NATO? The reason, in my opinion, Yes. And the inability of these You are referring to NATO? that the South has never been groups to take on the national able to get it together eco- Yes, NATO. Ireland, or the question is a big problem. It nomically is because the national South, is outside NATO. They reflects the whole attitude of bourgeoisie and Britain, France want Ireland in NA TO. southern society as well as press and the United States, who and other media censorship over Do you feel the United States together run the country, are the reality of the struggle in the would like to effect some sort of divided over the is.sue of the North. The women's movement, Irish reunification at the price of North. Even the two major par- for example, did not support the Ireland joining NATO? ties of the South which represent women in Armagh jail (where virtually the same interests and I think they would. One of the most political prisoners are kept) would both be part of the Coun�e��PY -- Vec.83 - Feb.84 -- 41

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Conservative Party if they were How long do you think it will take all ha ppening in the shadow of in England, have different atti­ to unite Ireland? nuclear war. Whatever people tudes on the North. Therefore may think of Vlarx, I think the I give it a good 20 years. · they cannot get their capitalist truest thing he said was that the act together. Do you think it will be the kind last choice for humanity would be Neither party is prepared to of Ireland you want? between \larxism and barbarism. take on the British because they I think in this generation, with I don't know. There are times are still economically tied to the the nuclear threat, the choice is British economy. But they are at when I have this recurring between :Vlarxism or nothing. the end of their rope now. The nightmare of large numbers of Just as the South has nowhere parties are going to have to opt people and bands and flags and left to go, those who control the speeches declaring freedom. And for either ending British rule in world economy have nowhere left I'll be in the back with someone to go. The world is going to have the North or reinforcing it. whispering to me, "you mean That is why it is crucial that to be shared. I think Ronald that's all we get?" I don't really Reagan would rather blow the we should be organizing in the know except if that's all we really South because the only coherent world up than allow it to be do get, those in the back will shared. So it is up the rest of policy is an anti-imperalist policy. fight on. That has to be a major new us to take it away from him and On an international level people like hirn before they direction for Sinn Fein. They the "Whole system has outlived its destroy it. @ must take on the internal politics usefulness. That is why you have of the South of Ireland. crises everywhere. And this is

Martha McClelland OrganiZing the South

Could you describe Britain's a revolutionary struggle and a zation for a lot of reasons, in­ counterinsurgency strategy since guerrilla war here. cluding the American connection 1975 when the IRA and the British Derry is the best example with John Hume (Socialist Demo­ Army agreed to a ceasefire? of the normalization program. cratic and Labor Party leader The 1975 truce was disastrous for You'll notice when you come from based in Derry) and including the Sinn Fein and it will be the last Belfast, where there are a lot of fact that this city can be restored truce. It was used by Britain to British troops on the ground, that to make it look like the launch a three-part program to in Derry it is really unusual to Williamsburg of Europe a destroy the movement. see a heavy saturation of British quaint little city for tourists to One part of the program troops. Derry was picked out to co me and spend their money. was criminalization, which meant become a model city for normali- Insofar as possible, the any active republican would be Martha McClelland heads the Sinn Fein office in Derry charged with criminal behavior and put in ja il. The 800 year and is a prominent member of Sinn Fein's highest body, long struggle was now going to the Ard Comhairle. · Born in California, McClelland first be a criminal offense, it was now went to Ireland with a church group while a graduate criminal to want self-determina­ student at Berkeley. Her experiences there transformed tion. her from an avowed pacifist to a revolutionary. She Another part was Ulsteri­ joined Sinn Fein in 197 4, and has served in a variety za tion, which is similar to Viet­ of capacities including party spokesperson and member namization. This is where you replace the British Army with the of the Pro Ulster Executive. She has directed several Royal Ulster Constabulary (RUC, Sinn Fein advice centers, is a leading member of the northern Ireland police) and the Sinn Fein Women's Department and was a founder of Ulster Defense Regiment (pro­ the National H-Block Armagh Committee. Like most British paramilitary force). The political women activists, '.VlcClelland has spent several last point is "normalization", months in Armagh prison. Most recently she has been which is to make the situation a leader of the party's new political ed ucation look as normal as possible; to hide from all the world that there is movement. 42 -- Cou.n.tu�py -- Vee.. 83 - Feb, 84

Approved For Release 2010/06/14: CIA-RDP90-00845R000100130004-9 Approved For Release 2010/06/14: CIA-RDP90-00845R000100130004-9 So many Irish Americans would accept U.S. government involvement in Ireland as help, as assistance to people who are struggling. That is simply not the case. It's like sending in nurses with the plague to a cancer ward.

troops were taken off the streets among the people. Now the directed against an occupation and replaced by sophisticated hunger strike was a tragedy and force. That is quite clear to surveillance devices along with a there were strenuous attempts by people who live here. It must be very quick reaction time for the republican movement to clear because we got 43 percent British troops. If a shot is fired prevent it from happening. But of the nationalist vote in the anywhere in the city, within three given that tragedy, we were able elections to the British Par lia­ to five minutes the area will be to move a lot of people. The ment. We are now a recognized very quickly saturated by British deaths of those ten volunteers political force and we are here troops and RUC. They catch as helped us develop a pre-revolu­ to stay. We are people on the many republicans that way in tionary consciousness among the move. Derry as they do with the people. saturation techniques in Belfast. If we can continue that Building a \'lass "1ovement development, we can develop The 1981 Hunger Strike enough political awareness so that In what ways do you intend to their deaths won't be in vain. build the mass movement? What happened in 1976 when the They won't be just more martyrs truce was ended? for old Ireland. Instead, their One of the most important things At that stage the British moved sacrifice will be the catalyst that we have to do is break down barriers, to close down Republican News got the republican movement and particularly ideological (Sinn Fein's newspaper), some the people back together again. barriers that the establishment prominent republicans were The British were trying, very has built. We have to break down, thrown in jail and the criminali­ successfully, to isolate us from for instance, the hold the zation program was instituted. In the people. Because of the churches (both Protestant and response to criminalization of the hunger strike the republican Catholic) have over the people's republican prisoners (their status movement was able to mobilize mentality here. Now I am not was changed to "criminal"), the the largest number of people anti-church or anti-Christian or H-Block struggle began. since the civil rights days from anything like that. '..;hat I am is Republicans were thinking 1968 to 1972. anti-sectarian. very carefully about what 'Nas I think that the recent If we build a state here, it going on and began to reali'ze that series of elections sent shock has to be a state that has com­ you can't win this war through waves throughout the loyalist plete separation of church and military means alone. We community as well as to the big state. The churches' current realized the military struggle powers like the United States. stranglehold over people's minds alone would be fruitless W1less a You wouldn't believe the sig­ is not only immoral, it prevents political struggle was going on. nificance of this just by reading us from obtaining the socialist Also we realized that a political the papers. The fact that ordi­ republic we are fighting for. Our struggle alone would never have nary people with the privacy of right to selh:letermination is the force behind it to get the a secret ballot would vote for the anti-thetical to the churches be­ Sritish out. party which the United States cause the churches now support So in 1977 and 1978, a lot government, the Sri tish govern­ and al W!lys have supported the establishment. of people in the republican ment, and the Irish establishment, ln our education we have to movement knew we had to de­ including the Catholic Church, velop into a political movement. have spent enormous amounts of recognize that we have only two The formation of the National H­ money to get people to believe years until the 1985 Ulster-wide Block Armagh Committee, which was terrorist is significant. city council elec>tions to build was a large-scale mobilization of People don't vote for terrorists, suppo�t. All we need is another the Irish people, was the product right? nine percent <)f the vote to be of that development. Since that Terrorists are quite dif­ the recogn i ✓,cd leaders of the time people have seen the effects ferent from freedom fighters. nationalist c>omrnunity. We don't of the H-Block movement. Terrorists use political violence simply want the lion's share of The hunger strike of IRA against civilian communities. I the vote. We want people to prisoners in 1981 happened at a don't think that's legitimate. know why they tire voting for Sinn time when the movement was However, using legitimate fore,. Fein. .-\ lot of people vote for mature enough to use the tragedy \5 quite different from violence Sinn Fein for mixed reasons. to develop political awareness ii'.'1inst civilians. Our violence is Some people ,1ote for Sinn Fein Countelt�py -· •.

Approved For Release 2010/06/14: CIA-RDP90-00845R000100130004-9 Approved For Release 2010/06/14: CIA-RDP90-00845R000100130004-9 · We realized the militarystruggle alone would be fruitless unless a political struggl� was going on. Also we realized that a political struggle alone would never have the force behind it to get the British out.

just to get the Brits out. images around them. Look out The South is very important Now the republican that window, what do you see? because the majority of the Irish movement is not so much just a You see the state corning in the live in the South. At the same "Brits-out" party. We specifically form of the RUC, you see people time, the South is light years want a social revolution and we hanging around the street corners behind the North in both political warit a socialist republic. We day after day with nothing to do : awareness and experience. They want to create and define our because they are unemployed. haven't gone through the kind of socialism for the Irish people and You see a cemetery up the road struggle we have. In the North we'll take bits and pieces of filled with young people. You see the average person you talk to is whatever is the best in other dilapidated older houses. You see aware that the media is trying to socialist systems to create it. We all the things that control control their minds. need to make people demand that people's lives. Our job is to get People are aware of control kind of socialism. people to stop passively accepting and repression. They are also Another obstacle we have to these things; to open their eyes aware of international struggles counteract here is the media. and see what's around them and such as the struggles in South The state controls people's to be able to analyze it all. Africa, Guatemala and El Sal­ learning processes by controlling That's the sort of education we vador. In the South, because television and radio stations here. have to do. there hasn't been a broad-based BBC and RTE (Republic of Ireland Between now and the 1985 struggle, they're very content to broadcastingr network) are con­ elections we have to do more than ignore the struggle here. They trolled by the state and the just- get more votes, we have to are apathetic; some are hostile, newspapers are controlled by the build a revolutionary force. We They just don't get the news and establishment. The fact that must do this so we do not become they haven't had the experience. television, is controlled by the coopted. I am very concerned The church also is much stronger state is very important. It is a that this revolution is not in the South. powerful passive learning tool. It coopted. In 1916, you had a The southern government ;keeps people off of the streets. republic declared by a bunch of has been able to sell the people You don't breed revolutionaries in high-minded people who were on the hope that allowing foreign front of a television set. immediately executed. Within investments to develop the Another controlling force is five years you had the republic country will make Ireland into a the way the housing estates are betrayed. West Germany or a United States. designed. The British Army, for Despite the fact that Sinn There are good historical reasons example, has a veto over any Fein won 80 percent of the vote why they should hope for some­ housing estate design. In all the in 1918, you had a sell-out and thing which will make their lives new estates you'll see there is you had a sell-out for good more comfortable. But people only one entrance and exit. political reasons. People in Sinn are confused. They have relatives Fein were not so much repub­ in America and they admire their Yes, I've noticed the estates are life-style, but what they don't see full of cul�cs. licans but nationalists, people confused in their political is how American involvement in That's right. You'll note that in thinking. We don't need that this other countries is destroying the old Bogside (section of Derry) time. If you have people who are America. They think of Vietnam the streets were crisscro5$ed and confused politically that means as an aberration as opposed to there were wee alleys and there they can be bought off. We've what America us ually does to were ways you could get away so paid too much in people's lives countries when all else fails. if the Brits came up one street and in people's deaths to settle People in the South have a you could go through Mrs. for that. The struggle has cost short-term view of their own Doherty's back door and up too much, so in the end of the country. By and large, I think through the alleys and over day it has to be worth the price they have a slave mentality. somebody's fence and you would we've paid for it. Ireland has been occupied for over be away. But now it is quite a 800 years and that has had a simple matter for the Brits to The Southern Strategy tremendous affect on people's block off an estate. There is only mentality. one entrance and one exit. Where does theSouth fit into your The economic situation in We have to get people to strategy right now? the South is pushing people to open their eyes and look at the consider the republican movement 44 -- Counte��PY -- Vec. 8 3 - Feb.84

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now. Fifty percent of the Irish support movement to lobby for a government involvement in population is under the age of 25. special U.S. envoy to diplo­ Ireland as help, as assistance to There are lots and lots of young matically arrange for a reunified people here who are struggling. people corning out of schools with Ireland. Also, there is a bill in That is simply not the case. It's no jobs. They are not prepared Congress which would allow $50 like sending in nurses with the to accept it. What's happening million in aid to Ireland on the plague to a cancer ward. in the South is just like what's condition that Britain withdraws The potential American been going on in the North, the from the North. How do you feel involvement here is very, very state is no longer able to provide about U.S. govemment involve­ dangerous. Politicians in America for the needs of the people. ment in the struggle in northern who everywhere else in the world Though we can organize the Ireland? have done nothing for struggling South, we operate under a big It is not surprising that I feel people, politicians who are tied handicap. Under Section 31 in with the big rnonied interests (Republic of Ireland broadcast about American involvement the in America, politicians who are statute), no republican can be same way the Vietnamese people tied in with the concept of interviewed on radio or television. did. The U.S. government America as the superpower Republicans can't even be quoted. wouldn't want to get involved dominating the rest of the It's a major factor operating here with no strings attached. I world - they want to help us? against us because people just am deeply upset that George Bush We don't believe it. Irish don't get the chance to hear what and Henry Kissinger were in Americans who favor bank loans Gerry Adams and people like him Ireland at all. They are arch and U.S. government intervention have to say. The newspapers and enemies of the Irish people. Now are actually wheeling a Trojan media build the picture of what when I say that I don't mean that horse into Ireland. republicans are and we get no Irish people and American people chance to respond. Unless you don't have a lot in common. Ireland into NATO? have experience in the North or The loans and talk of have relatives up here you simply Marshall plan for Ireland, the fact Do you feel threatened by the don't have an alternative source that Ted Kennedy and John Hume possibility of the South ending its of information. (leader of the Socialist and neutrality and joining NATO? Democratic Labor Party) are I don't feel threatened, I am Is there a priority to ,organize in close, I view with extreme alarm. threatened. It's a threat to my the South now or are you still The prospect of a special envoy life and to the. ·: life of the emphasizing consolidating the is extremely threatening to us. community here. One thing most North? We have struggled long and hard, Irish agree on is maintaining We are trying to do both. We and we want to create our own neutrality. The American govern­ spent half-a-million dollars fight­ country. We have no obligations ment very much wants Ireland in ing two elections recently. Was to reproduce American institu­ NATO. If that happens we will that a good thing to do, we have tions of government here. Self­ never achieve our freedom. to ask ourselves. Should we have determination is up to us and has nothing to do with what the We want a socialist republic bought SAM missiles for the same where people have control over amount of money? Or is this a American government wants for their own lives. NATO would not Ireland. diversion created by the British people only tie us in with the super­ government? If we are becoming Most American powers but also with nucl�r the authentic voice of the would probably accept our right weapons. We are fighting a 'war nationalist community then that's to self�etermination. Most here with armalite rifles, M16 a very good thing, but if we are Americans, however, have no idea what we want. The struggle is machine guns and maybe a dream simply playing electoral politics of a SAM missile. NATO is so we can sit on this committee censored. I am very fearful that discussing placing nuclear wea­ or that cornrnittee, then that is Irish Americans who support us, pons here. In this very city they wrong. and gQod-hearted as they are, have a NATO tracking station. We have a revolution on our might unwittingly become This means Derry is a nuclear hands and if we are sucked· into involved in something which is target. Everybody - North, local politics in a repressive actually a front for O .S. covert South, Catholic, Protestant - is state, our talents and energies operations here. For instance, they might against nuclear weapons. As will be wasted. We don't want republicans we are openly opposed to work to make the system work. think that an Alliance Plan or a Marshall Plan or sending AID to NATO. Everything that NATO If the Housing Executive isn't is doing is alien to our philosophy. meeting the needs of the people (U.S. Agency for International Our fight against Britain is also we don't want to push it to work Development) funds over here a fight against NATO involve­ better. would be a good thing - things that were tried in Central ment. @ U.S. "Mediation"? America and Vietnam before they sent in military advisors. The George Bush was in Dublin on the American government does not 4th of July. Henry Kissinger was want a free Ireland. It does not in Dublin two days before that. want self�etermination for the In the United States there is an · Irish people. So many Irish effort within the republican Americans would accept U.S. Counte��py -- Vec.83 - Feb.84 -- 45

Approved For Release 2010/06/14 : CIA-RDP90-00845R000100130004-9 Approved For Release 2010/06/14: CIA-RDP90-00845R000100130004-9 Joan Coxsedge U.S. Pulls Strings in Australia

This interview with Joan national and the American i What role does Australia play in Coxsedge was conducted in Chamber of Commerce. Business U.S. war plans? Washington, D.C. in August 1983. lnternational's links with the CIA That's the irony. Australia would Coxsedge is the founder of the were first exposed in the New become a prime target in a war Committee for the Abolition of York Times in 1977. I,t is"an situation because of these vital Political Police and serves in the sociation of executives of as bases without most Australians Victorian Parliament as a member multinational corporations. In ever knowing why. Australia has of the Australian Labor Party. Australia, it appears to be a no say in U.S. war strategy. With Ken Coldicutt and Gerry closed club, representing about 20 Harant, she is author Rooted of of the most powerful multina­ The U.S. Takes Charge in Secrecy: the Cl andestine Ele­ tionals operating here, such as ment in Australian Politics IBM, General Electric and the How did the Australian gov­ (published by CAPP, 8 Leicester Chase Manhattan Bank. ernment agree to the presence of Street, North Balwyn, Victoria, Recently a speech by Allan bases on their soil? 3104, Australia). Carroll, Business International's You have a new government, a Director of Client Services for You have to go back to World War II. When Japan entered the Labor Party·government with Bob Australia and South was war, Australia was threatened by Hawke as Prime Minister. What leaked to the pu blic. Carroll . Japan militarily. As you know, does that mean for U.S.­ made that speech in April 1981 ; the United States was deeply Australian relations? to a handful of elite corporate officials in Melbourne. In it he involved in that war and used For some reason, the United predicted accurately that Hawke Australia as a base; after the war States government has apparently would come to power, and how was over it continued to do so. never had any reservation about he would do it, alluding to his, Australian governments always Bob Hawke, unlike th eir previous Carroll's, own efforts to make claim we cannot survive militarily totally unjustified fears of the that happen. without a "big brother" of some Whitlam Labor government of ten sort. What happened at the end Why is Australia important for years ago. was of the war was that we exchanged the Pentagon and for U.S. the Prime Minister from 1972 to our client status with Britain for business interests? 1975, when he was ousted from that of the United States. office with the assistance of the Firstly, we have very important Then came the . CIA. mineral ·resources and roughly 20 The CIA was founded in 1947, and Long before Bob Hawke was percent of the world's uranium the U.S. and Britain demanded even a Parliamentarian, the CIA's reserves. And the U.S. needs that Australia should establish a top secret National Intelligence Australia as a stable land base in security agency. So the Daily, a small publication pre­ the· South Pacific. Our sub­ Australian· Security Intelligence pared by the CIA for the U.S. servient position in security mat­ Organization (ASIO) was set up in President and his closest advisors ters is probably best illustrated 1949. A British security chief to read each morning, stated on by the chain of U.S. bases and came to Australia to establish the March 10, 1976, that "Hawke is military support fac ilities dotted agency. the best qualified candidate to across the country, including the In the early 1950s we had succeed Whitlam," and "it would highly sophisticated joint CIA/ the establishment of the appear to be in Hawke's interest National Security Agency elec­ Australian Secret Intelligence until establishing his own eligi­ tronic monitoring station near Service (,\SIS), an outfit that is bility either to retain Whitlam as Alice Springs; Nurrungar, which is supposed to be concerned with a virtual lameduck leader or have one· of the two ground stations Australia's external security, like him replaced by an obvious for the American satellite early the CIA in the United States. The interim figure." Statements of warning system; and North West Australian Labor Party wasn't support coming from such a Cape, another vital link in U.S. told of the existence of ASIS until . source at such an apparently military strategy because its Very it came to office in 1972. ASIS premature stage worry Australian Low Frequency system is the played a role in aiding the CIA Labor Party members. largest and most powerful in its in "destabilizing" the Sihanouk It is equally worrying that global suomarine communications government in Cambodia and the Hawke enjoys the support of system. government of Salvador Allende organizations like Business Inter- in Chile. 46 -- Counte��PY -- Vec.83 - Feb,84

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As well as all that, we have Minister's own office, Green But the minister had money treaties that lock us into U.S. war threatened that if Labor handed brokers who were highly sus­ games. Open treaties like over control of U.S. multinational picious characters, who were ANZUS, and other treaties with subsidiaries to the Australian unreliable and later proved to people, "we would move in." secret details like the I Quadri­ . have CIA connections, so that partite Pact of 1947, involving Green was the only professional showed ineptitude on his part. the interchange of military diplomat we have ever had as an But what he was trying to do was hardware information between right. He was attacked most the U.S., Britain, Canada and bitterly and lost his portfolio. Australia. Whitlam should have stood up and But more significantly, the defended him, and explained to same countries are also signa­ the Australian people why he was tories to the highly secret and doing what he was do ing. vastly more important UKUSA Treaty or SIGINT (Signals Intelli­ The Constitutional Coup gence) Pact which links the western world's intelligence Soon thereafter Whitlam too was agencies under the umbrella of ousted? the U.S. National Security Yes, he was ousted in what we Agency. Australia is "respon- call the Constitutional Coup of sible" for South East Asia and 1975 when Governor General John parts of the Indian Ocean. Kerr dismissed him. Kerr's ties The contents of secret to American intelligence go back treaties are not known to to World War II when he worked Australian governments. For for a top secret Australian instance, the Defence Signals military intelligence unit. Even Directorate (DSD), the agency the when he was Governor General, U.S. relies on most, signed the his interest in intelligence UKUSA Treaty on behalf of matters persisted. But in earlier Australia, without the govern­ years he was a member of the ment even knowing about the CIA-sponsored Australian Asso­ existence of the DSD, let alone ciation of Cultural Freedom the existence of UKUSA. (Australian offshoot of the world­ Australia has just gone wide Congress for Cultural along on the U.S. coattails. We Freedom). He also made the sent troops into Korea and inaugural presidency of Law Asia, Viet nam. But the which is fun ded by the notorious was a painful learning experience Asia Foundation. Kerr was on for many Australians. Opposition the far right of Australian to that war was very deep and politics - Whitlam's choice of some of the largest demon­ Kerr as Governor General has strations ever seen in Australi a never been properly explained. In took place at that time. fact, when he was selected, some I understand there was a break of Labor people correctly forecast some kind between Australia and Kerr's role. the United States in the early In the event, Kerr dismissed American ambassador. This is 1970s. Whitlam on November 11, 1975. n true right up to the prese t time It was an unprecedented action. There was a break because the where the current U.S. The Governor General is the mildly reformist Labor govern­ ambassador is just another politi- representative of the Queen of ment of Gough Whitlam was cal nonentity. England, Australia being part of elected in 1972. It wasn 't a There was also a certain the Commonwealth. Very few radical government by any means, ineptitude on the part of the knew he had the power to oust but the U.S. leadership regarded n n Labor gover me t - remember, the Prime 'v1i11i:iter, and there was it with deep-seated hostility. they hadn't been in power for 23 absolute shock and disbelief Nixon was in the White House and years. The Labor Party's Minister among the µeople. The army was he had a personal hatred of for Minerals .and Energy wanted recalled to the barracks , the Whitlam, shared by Henry to "buy back the farm," that is, police were put on alert, and Kissinger. take back the control of our leave was cancelled, because the The first real ind ication minerals, which as a w very powers-that-be expected a strong that Nixon was concerned about reasonable thing to do. To do reaction. the new Labor government was a a d th t, he w s seeking loans outsi e Bob Hawke, as the President his appointment of Marshall the traditional borrowing areas of the Australian Council of n d n a Gree as ambassa or i March such as W ll Street. He looked Trade Unions, issued an appeal to 1973. Green was quite blatant n a d. i the Ar b worl people to cool it. And people about his role. A senior Labor That caused great ripples in did. Many have regretted it minister reported how, in the the U.S. business establishment. profoundly since then. Counte��py -- Vec.83- Feb. 84 47

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Task Force 157 .affair, which was played up to Hawke's attitude to intelligence the hilt in the mass media, agencies is obvious from the way You say the CIA was involved in without ·any evidence of actual he has behaved in the present that "constitutional coup"? wrongdoing. Australia lost its Combe/Ivanov affair. In April AAA credit rating among foreign 1983, ASIO, in line with the CIA's One has to go back a bit. The banks for reasons unknown to the worldwide campaign against the Labor government was being Australian government. Soviet Union, recommended the destabilized. I don't look for U.S. corporations, mainly expulsion of Soviet diplomat conspiracies, because I have Westinghouse, were also des­ Ivanov as a spy. At the same always felt that if the capitalist perately trying to get their hands time, ASIO implicated a se�ior system was a conspiracy then it on our uranium. There was a very Labor Party figure and associate would have to work a hell of a interesting article in Nucleonics of Bob Hawke, David Combe, and lot better than it does. But it Week by a Westinghouse lawyer in the process destroyed his would be stupid to deny that about five weeks before the coup. career. conspiracies exist within the It said that "if there was a change Hawke not only accepted system. And I would say that of government within five weeks ASIO's phoney arguments without this destabilization was a time" then Westinghouse would question but suggested that ASIO conspiracy. get full access to our uranium, should intensify its surveillance of I believe the job of mining of which was barred under Combe and his contacts. Hawke destabilizing1 the Whitlam gov­ Australian Labor Party policy. It also set up a Ro yal Com mission ernment was given to Task Force was a remarkable prediction. into these events. He appointed 157. This was a mini-CIA set up There were a number of Justice Hope, who, in a previous in the mid-1960s under the other factors. Whitlam, an arro­ Royal Com mission into Aus­ umbrella of U.S. Naval Intelli­ gant man, got very angry when tralia's secret agencies, showed g�nce, so that its real controller, he found out certain things were his bias in favor of them. You Henry Kissinger, could deny any happening that he hadn't been might find it hard to be lieve but connections with the CIA. told about. Some of these during the present inquiry, Harvey But the CIA contact point involved intelligence agencies. Barnett, head of ASIO, actually for Task Force 157 was Ted Whitlam found out, for example, stated that he regarded any Shackley, a very senior figure who that ASIS had agents operating in Australian who criticized the became the. chief of the CIA's , and he hadn't CIA 's role in Australia as a East Asia Division in 1975. been informed. Whitlam sacked traitor. Shackley had formerly run CIA the head of ASIS which angered God only knows how Justice sabotage operations against Cuba, ASIS a great deal, and they then Hope will manage to turn Harvey Vietnam and Chile. So he was appealed to the CIA. Whitlam Barnett's ineptitudes to ASIO's well qualified. But one of the also sacked the head of ASIO and advantage, but we k ow he will most important CIA fronts in � proceeded to ask questions about try, because last t1 me around Australia at that time was Pine Gap, and the presence of when Hope found ASIO guilty of undoubtedly the Nugan Hand CIA officers in Australia. crimes, he not only recommended Merchant Bank. Nugan Hand was At the same time, the that the spooks should be for used as a conduit for funds to buy Senate, which was controlled by given, but that their crimes politicians, trade union leaders the right wing Liberal Party, should be legalized. and journalists and to finance a media campaign against the Labor withheld funds from the govern­ This was done subsequently Party. ment. Whitlam was running out in 1979 when the ASIO Act was passed in Parliament. This means The U.S. government felt of money to pay the bills. And ASIO can now quite legally walk threatened by this Labor this was the pretext Kerr used to government - in fact, by 1975 dismiss him. into your home or your office or there was talk that the U.S. trade union and demand any military establishment now Bob Hawke and ASIO information they like. If you regarded Australia as "unstable" resist in any way or publicize \he and was contemplating moving How is Prime Minister Bob Hawke circumstances, you could be Pine Gap back to the island of going to deal with the question slugged with a heavy fine and/or Guam at a cost of $1 billion. of intelligence agencies - the a jail sentence. This also applies issue that brought about his to identifying or naming agents. First there was the loans predecessor's downfall? SEE CDXSEDGE, pg. 55 48 Countek6py -- Vec.83 - Feb.84

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Reagan's Arms Control Sham Preparing to Violate the Treaties Konrad Ege and Arjun Makhijani

In its quest for military superiority, the Reagan underground tests of atom bombs larger than 150 administration is systematically sabotaging ex­ kilotons. (The Limited Test Ban Treaty forbidding isting arms control treaties. To accomplish this nuclear weapons tests in the atmosphere, in outer without giving the appearance of warmongering, space and under water went into effect in 1963.) the administration has been waging a campaign The United States has not ratified the Threshold charging that it i$ the Soviet Union that is Test Ban Treaty, but both the U.S. arid the Soviet violating arms control treaties. Furthermore, the Union observe it. '. Reagan administration claims that new arms President ReagWl charged in May 1982 that control treaties are difficult to conclude because there is "reason to believe that there have been the Soviet Union refuses to agree to adequate numerous violations" of the Threshold Test Ban verification provisions. Existing treaties, Treaty, but a definite statement pointing the President iReagan asserts, are not "sufficiently finger at the Soviets is said to be difficult to verifiable.T' make because of "verification problems." And This campaign is aimed at weakening the until "verification measures••• can be strength­ peace movement in the United States and abroad. ened," Reagan has been saying, he will not resume "Republicans have the opportunity to coopt this the U.S.-British-Soviet talks on a comprehensive nuclear freeze issue by making 'verifiable' the test ban.3 (These talks were suspended by Jimmy key word in any arms proposal and being very Carter in 1980.) tough about that," one Republican Party The _administration's claims of "numerous strategist noted.l He had an eye on opinion pol.ls violations" are contradicted by most scientists which show that the overwhelming majority of dealing with verification questions. Lynn Sykes, the people in the U.S. support a nuclear weapons one of the foremost geologists in the United freeze - but the same polls indicate that most States and an Air Force consultant, and Jack people want a freeze only with "sufficient Evernden of the U.S. Geological Survey, say: "We verification." Newsweek found, for instance, that have found not a single instance in which the 68 percent of the population supports a freeze; size of a Soviet test has exceeded the threshold.114 only 25 percent oppose it.2 However, two-thirds Sykes also notes that while complaining about of those ·questioned put "verification" higher than vertfication problems, Reagan has cut funds for achievement of a freeze on their list of concerns. verification research.5 There are other indications of insincerity The Nuclear Test Ban Treaties in the administration's p\ll"ported concern about verification: In 1982, the U.S. cast the only vote One treaty the Reagan administration claims the against a United Nati�ns resolution calling for Soviet Union has violated is the Threshold Test an international seismic monitoring agency to Ban Treaty, signed in 197 4, which prohibits verify compliance with a comprehensive test ban treaty.6 Reagan likewise refuses to ratify the Konrad Ege is a freelance journalist and Co-Editor Threshold Test Ban Treaty, thus preventing of Counterspy. Arjun Makhijani is a consultant on energy and economic development. certain cooperative measures from going into Counte�6py -- Dec.83 - Feb,84 -- 49

Approved For Release 2010/06/14: CIA-RDP90-00845R000100130004-9 Approved For Release 2010/06/14: CIA-RDP90-00845R000100130004-9 effect. Manfred Eimer, head of the Arms Control nuclear weapons program.1111 This policy also and Disarmament Agency's verification section - violates the Threshold Test Ban Treaty whose known as -a "zea,lot" with a "passion to Article 1 mandates that the signatories "shall expose •..Soviet 'cheating'" - has conceded that continue their negotiations with a view toward these cooperative measures which Reagan is achieving a solution to the problem of the holding up would improve verification.7 cessation of all undergroWld nuclear weapons 12 Reagan is not submitting the Threshold Test tests.11 Ban Treaty to the Senate for a ratification vote; neither will he resume negotiations for a The SALT II Treaty comprehensive test ban, because he plans to continue testing nuclear weapons for the U.S. The second Strategic Arms Limitation Treaty military buildup. Su ch tests are particularly (SALT II) which limits strategic weapons, was necessary for the Reagan-Weinberger "star wars" signed by President Carter and Secretary General pr ogram. One recent test, for instance, was Brezhnev on June 18, 1979. Carter submitted carried out W1der the Nevada desert on September the treaty to the Senate for a ratification vote 21, 1983. In this operation, codenamed "Tomme­ on· June 22, 1979, but ran into vigorous opposition . Midnight Zephyr," space assets such as satellite from Senators claiming the treaty was components were placed in a vacuum tube some insufficiently verifiable and would allow the 450 meters below the earth's surface in which a Soviet Union to ga in superiority. SALT opponents 20 kiloton nuclear bomb was exploded to test its argued that the treaty would give the Soviet effect on the equipment.8 Union such an advantage in land-based missiles that it could launch a first strike against U.S. land-based missiles (though the U.S. would have some 5,000 other strategic warheads in submarines left over for use in the unlikely event Said Under Secretaryof of a completely successful strike). This supposed danger was dubbed the "window of vulnerability," the Air Force Edward a term that became President Reagan's standard Aldridge: "We don't have explanation of his opposition to SALT II, and an often-repeated rationale for his nuclear buildup. to stretch our imagination Today, with Reagan's buildup well underway, the "window of vulnerability" has all very far to see that the nation but disappeared from the Reagan rhetoric. Indeed, the presidentially-appointed Scowcroft that controls space may Commission charged with examining;; the U.S. control the world." strategic nuclear weapons program implicitly conceded that such a "window" did not exist. It never had. The claim that SALT II gives the ======�=���==���� Soviet Union superiority is likewise contradicted � by the CIA 's 1979 National Intelligence Estimate Eugene Ros tow, then-head of Reagan's 1138-79. Under extended SALT limitations, Arms Control and Disarmament Agency, testified estimates the CIA, the Soviet Union will have that the ''stone wall" blocking ratification of the no more than 6,000 strategic warheads by 1989; without limitations, the number could be as high Threshold Test Ban Treaty was "the feeling in 13 many parts of the government that [ because of] as 14,000. the need· for new weapons .•.we are going to need Once Reagan took office in January 1981, testing and perhaps even testing above the ,150 he appointed the very people who had stridently kiloton limit for a long time to come."9 opposed SALT II in 1978 and 1979 to top positions Similarly, some of the designers of the space war in the Arms Control and Disarmament Agency weapons claim that "it will take more and other agencies concerned with disarmament underground nuclear testing than now permitted matters. These officials include: by treaty to find out if these new ideas can be · • Richard Perle, then a key aide to the anti,-SALT senator Henry Jackson, who was turned into workable [space] weapons.1110 In September 1983, Reagan himself finally "renowned for leaking material on arms control issues, in particular to conservative columnists voiced the real reason that his administration has 1 not negotiated a comprehensive test ban. The Rowland Evans and Robert Novak,11 4 is today United States is "not pursuing negotiations with Under Secretary of Defense, and an influential the Soviet Union on a comprehensive test ban figure in the government's arms control policy­ (CTB) because it needs continued testing to solve making process. Evans and Novak are still 'important problems' associated with the U .s. prominent among those journalists charging the 50 --,Coun�e�jpy -- Vec.83 - Feb. 84

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contradictory to his position that SALT II is in any case "fatally flawed" and, in White House counsellor Ed Meese's words, not binding. Still, even among those statements about SALT II made by administration . officials themselves lie a number of contradictions. Reagan at one point even promised to "refrain from actions which undercut SALT as long as the Soviets show equal restraint." As has become rather comman in this administration, an anonymous "high administration official" quickly corrected the President: ''I don't believe he would hesitate if it became necessary to take actions inconsistent with one or both SALT treaties.11 16 Under Secretary of Defense Perle explained that there was only a "miniscule" difference between Reagan's promise to "informally" observe the 7 Soviets with treaty violations; their access to top treaty and having no treaty at an.11 1 secret documents seems to continue. The actions of the administration with • Edward Rowny was on Carter's SALT regard to SALT II have been less contradictory. negotiating team to the very end, only to suddenly The administration is moving ahead with arms resign, claiming he was convinced SALT would programs as if there were no SALT II Treaty. It O'ive the Soviet Union superiority. Rowny is disregarding the treaty, for instance, by moving ;killfully used his inside knowledge to testify ahead with development and production of two against SALT ratification. Today Rowny is new types of ballistic missiles. Reagan's negotiator in the so-called START talks U.S. allegations that the Soviet Union is (Strategic Arms Reduction). violating SALT II concentrate on two claims. • Paul Nitze, who today is Reagan's First, the Soviets are said to be flight-testing negotiator in the Intermediate Nuclear For�e two new intercontinental missiles (ICBMs), the reduction talks in Geneva, played a key role m SSX24 and the PL5, says Sen. McClure,18 while the anti-SALT campaign as an official of the only one new type is permitted. Second, McClure Committee on the Present Danger. This well­ says, they are encrypting the telemetry financed group coordinated the anti-SALT effort (electronic data transmitted by a missile in flight) and gave Reagan regular briefings during his of their ICBM tests to prevent U.S. intelligence electoral campaign. from learning about the new missiles. • Eugene Rostow was Reagan's Director McClure is correct that the testing of only of the Arms Control and Disarmament Agency one new type of ICBM is allowed. However, he for two years. Rostow is a founder of the fails to consider the "Com man Understandings" Committee on the Present Danger. and "Agreed Statements" which define the term • David Sullivan was fired from the CIA "second new missile" such that the Soviet testing in 1978 for l';:aking top secret documents to does not violate SALT II.* Nor is the fact that Richard Perle b in an effort to sabotage SALT. Reagan appointed him to the Arms Control and *The Soviet government has announced that it is testing the SSX24 as the new type intercontinental ballistic Disarmament Agency in 1981, but was forced to missile (ICBM) allowed under SALT II. A second ICB,\l dismiss him, as other government officials refused be ing tested, the so-called PL5 does not, however, as to work with a man who had leaked secret McClure claims, violate SALT. Article 4 of the treaty documents. Today Sullivan is an aide to Idaho mandates that from the beginning of a test program, Senator James McClure, who apparently has every missile tested must have the same number of unlimited access to sec-ret government documents stages and the same propellant (liquid or solid) as the which he uses to "prove" his litany of charges first missile tested. It is only during later launches that more stringent criteria apply. Specifically, only that the Soviets are violating virtually all existing during the last 12 launches of the first 25 tests, or treaties. . McClure seems to be the admin­ during the last 12 launches before the ICBM is deployed istration's point man for the treaty violation (whichever comes first) must the length, launch weight, propaganda. throw weight and diameter of the missile not vary by more than 10 percent; after that by not more than five The SALT Violations Charges percent. The PL5 has been tested about five times, a fact McClure does not dispute, and it does have the same number of stages and the same kind of propellant McClure's all-out accusations against the Soviet as the SSX24. Therefore, no matter what the other Union are useful for the administration, because characteristics of the PL5 are, it cannot begin to violate Reagan hesitates personally to accuse the Soviet the SALT II Treaty until it has been tested several Union on SALT II. Such a stance would be more times. Counte�apy -- Vec.83 - Feb.84 -- 51

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the Soviet Union has encrypted portions of the that are ostensibly for other purposes but could telemetry of their missile tests as much an "open- be used to support an anti-ballistic missile and-shut" case as McClure would have people system. believe. Article 15 of SALT II does not forbid The Reagan administration has claimed for encryption as such; rather it disallows encrypting several months that the Soviet Union is telemetric data whenever this "impedes constructing a radar in Siberia which violates the verification of compliance with the provisions of AB.M Treaty. The administration apparently has the Treaty.1119 Soviet officials could arguably finally taken its complaint to the Standing say that the parts of the telemetry they are Consultative Commission. encrypting have no bearing on verifying SALT II. President Reagan himself, while charging If this explanation is unacceptable to the U.S. Soviet violations, has formally and publicly government, it should take the matter to the committed himself to a full-scale program of Standing Consultative Commission. developing a space-based anti-ballistic missile This commission of U.S. and Soviet officials system.20- According to Gerard Smith, one of meets twice a year and is �harged with clearing the U.S. negotiators of the first Strategic Arms up questions of treaty noncompliance or Limitation Treaty (SALT I), this Reagan policy ambiguities. According to the former U.S. "is equivalent to termination of the ABM representative to the Standing Consultative Treaty •1121 . Commission, Robert Buchheim, it has been able The administration even seems to have a to resolve all ambiguities in the past. Until schedule for violating the ABM Treaty. The recently, Reagan has refused to use the sec to Program Manager of the Pentagon's Ballistic discuss SALT II matters since he does not consider '.\1issile Defense Program, in a Senate hearing, the treaty to be in force. ·By not using the refused to answer questions .about U.S. commission and instead feeding accusations compliance with the ABM Treaty: "I would rather against the Soviet Union to the rightwing media, not discuss that.. • until the closed session. That the administration has entirely bypassed the most gets into schedules .... 1122 effective instrument for monitoring treaty A similar schedule exists for placing U.S. compliance. weapons into space, a step that could violate the Outer Space Treaty as well as the ABM Treaty. The Pentagon will like 1 y m a k e a d o ;;;;;;;;;;;;;;;;;;;;;;;;;;;:;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;:;;;;;:;;;;;:;;;;;:;;;;;:;;;;;:;;;;;:;;;;;:;;;;;:;;;;; ec is ion ab ut an "on-orbit demonstration" of a space-based laser system for destroying satellites in 1987.23 Under Secretaryof Defense An anti-satellite weapon fired from an F-15 fighter plane is being tested in 1983/84, and the Perle explained that there Air Force plans to flight-test the Talon G old was only a "miniscule" dif­ laser system on a Space Shuttle mission in early 1984. Eventually, the Air Force wants to take ference between Reagan's over all Space Shuttle operations. Air Force General Robert Marsh in '.vlay 1982 informed the promise to "informally'' House Armed Services Committee about the administration's intentions: "We should move into observe the (SALT) treatyand war-fighting capabilities - that is ground-'-to­ having no treatyat all. space war-fighting capabilities, space-to-space, space-to-ground."

Reagan adamantly refuses to negotiate treaty The Anti-Ballistic Missile Treaty limitations on space weapons. Arms Control and Disarmament Agency director Kenneth Adelman believes the U.S. "should not rush" into This treaty, signed and ratified in 1972, prohibits negotiations such as talks to ban anti-satell�te the deployment of more than one fixed land- ' (ASAT) weapons "unless we are ready w1th bas ,. anti-ballistic. . . missile . . system. It a o � � verification proposals that will enhance national proh1b1ts development and deployment of Anti- secur1•t y. 1124 c·t·1 mg ver1-f· 1ca t·10n pro·bl ems, the Ba 11.1st1c - '.\11ss1 • .1 e ( ABM ) systems and components u • s • awas ls0 th e on 1Y coun tr� t0 vo te a ams· t a which are sea-based, air-based, space-based or . . _ � Umted Nations draft resolut10� calling ror the mobile land-based and the dep· loyment of ABM- _ ' prevention of an arms race m space 25 and related radars. In many cases, radars can be . . . ' . Reagan has dismissed Soviet ff e to negotiate used for several purposes, and both the United ? _ � . an agreement that would prohibit the placement St a t es and th e S ovi • e t u mon are ms. ta ll' mg rad ars . i� space of weapons o f any k"m. d 1126 As m· oth er 52 __ Cou.ntu.-6py -� Vec.83 _ Feb.84

Approved For Release 2010/06/14: CIA-RDP90-00845R000100130004-9 Approved For Release 2010/06/14: CIA-RDP90-00845R000100130004-9 arms control questions, the administration is using This confidence is also the principal reason "verification" to block negotiations - it demands that the administration regards negotiations verification provisions before a treaty is themselves as a concession to the Soviet Union negotiated. rather than an activity necessary for mutual The administration is opposed to an survival and security. Emphasis on "verification" agreement limiting space weapons for a very and charges that the Soviet Union is violating simple reason: the U.S. is intent on gaining existing treaties have only been used to sabotage military superiority in space. Said Under treaties and negotiations by playing on the fears Secretary of the Air Force Edward Aldridge: "We of people in the United States. Most likely, the don't have to stretch our imagination very far Pentagon itself would not be willing to accept to see that the nation that controls space may verification provisions such as the ones Reagan control the world."27 The Pentagon's "Air Force wants to force on the Soviet Union. For instance, 2000" directive of June 1983 emphasizes the the Pentagon would not agree to mandatory "on­ importance of superiority in space weapons for site" inspections to monitor compliance with the "terminating" a "conflict as soon as possible on Test Ban Treaty. 3l According to one Senate 8 terms favorable to the u.s. 112 nuclear weapons specialist, the U.S. Joint Chiefs Defense Secretary Caspar Weinberger's of Staff turned "pasty white at the idea" of Red 1985-89 Defense Guidance directs that the United Army observers at the U.S. test site in Nevada.32 States "must insure" that arms control agreements "do not foreclose opportunities to develop military space capabilities." Richard Footnotes: Cooper, the director of the Defense Advanced 1) Newsweek, 4/26/82. Research Projects Agency confirms that the U.S. 2) Ibid. is "clearly ahead of the Soviets in overall space 3) New York Times (NYT), 7/21/82 .. technology." 4) John Wilke, "Seismic Verification," Bulletin of the Atomic Sc ientists, 3/83, p. 5. The President has characterized his ABM 5) Ibid. and anti-satellite weapons plans as "defensive." 6) NYT, 7/26/82. In reality, they are key ingredients of a first 7) National Journal, 8/6/83. strike strategy and, as the Weinberger Defense 8) New York News, 9/22/83; NYT, 9/22/83. 9) Washington Post (WP), 7 /26/82. Guidance says, of a strategy to "prevail" in a 10) � 4/16/83. "prolonged nuclear war." An ABM system, no 11) WP 9/8/83. matter how advanced, is highly unlikely to be 12) ifs'. Arms Control and Disarmament Agency, Arms capable of stopping an all-out Soviet attack of Control and Disarmament Agreements, Washington, D.C., 1982, p.167. thousands of missiles. What it might be able to 13) � 1/31/80. do is to stop a small number of missiles - for 14) Newsday (Long Island), 2/1/83. instance, the number which the Soviet Union 15) NYT, 11/13/78; 1/4/81. might have left over after a U.S. strike. (The 16) William Jackson, "Reagan's Unsavory SALX," Bulletin of Arms Control and Disarmament Agency the Atomic Scientists, 8-9/82. 17) NYT, 5/3/83. reportedly has produced a study titled "Outcome 9 18) See 'Vlalcolm Wallop, "Soviet Violations of Arms Control of a Hypothetical U.S. First Strike, 1993.112 Agreements: So What?," Strategic Review, Summer 1983. ! With its rapid production of first strike 19) Cf., supra, #12, p.266. weapons - missiles powerful and accurate enough 20) See NYT, 10/19/83. 21) � 4/3/83. to destroy command centers and missile silos 22) Chris Payne, "The ABM Treaty: Looking for Loopholes," (such as cruise missiles, Pershing Ils, the MX and Bulletin of the Atomic Scientists, 8-9 /83. Trident Ils) - the U.S. is well underway to 23) Department of Defense Appropriations for 1984, Hearings achieving a theoretical capability to destroy the before a Subcommittee of the Committee on Appropriations, U.S. House of Representatives, part 8, p.4,r.i; USA Today, 1,400 Soviet ICBM silos and some 700 command 7 /19/83. centers. Considering that U.S. war planners 24) NYT, 5/24/83; Boston Globe, 5/19/83. prepare to use two warheads for each hard target, 25) United Nations Press Release, GP/PS/2376, 11/26/82. the Pentagon needs 4,200 warheads.30 The 26) Soviet Embassy Press Release, 4/28/82. current buildup will produce some 5,000 such 27) Edward Aldridge, "Defense in the Fourth :vledium," Retired Officer, 6/83. warheads by the end of the decade - enough for 28) UPI dispatch, 1/6/83. a first strike. That there can be no room for 29) � 5/19/83. arms control, either in the ongoing talks or in 30) See Jeffrey Richelson, "PD-59, NSDD-13 and the Reagan other fields, is patently obvious. Reagan officials Strategic Modernization Program," Journal of Strategic Studies 6/83. are convinced that they have the capability to 31) N�T, 4/5/83. "outbuild" the Soviet Union, i.e. the Soviets are 32) � 7 /26/82. not able to keep pace with the U.S. buildup and need arms control more than the United States does. Ccunte��py· -- Vec.83 - Feb.84 -- 53

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U.S. Investment in South Africa

Advocate6 06 U.S. dive�tttuke 6kom South A6kica ake o6ten told that they make a IN EUROPE, PARTICULARLY THE UK. THESE LAT­ mountain out 06 a molehill. U.S. inve6t­ TER TRANSACTIONS STILL REPRESENT US INVEST­ ment, theik opponenta chakge, ia in6igni6i­ MENT SINCE FUNDS ARE MADE AVAILABLE EITHER cant compaked to the ovetall aize 06 the DIRECTLY TO THE EUROPEAN FIRM BY THE US South A6kican economy and 6okeign inveat­ PARENT FOR AN INVESTMENT IN SOUTH AFRICA OR ment in that countky. The 6ollowing July INDIRECTLY THROUGH THE RETENTION,OF EARN� 1983 kepokt 6kom the U.S. Con6ulate Genekal INGS BY THE SUBSIDIARY IN A DEFERRAL OF in Johanne�bukg, South A6kica 6how6 that DIVIDENDS BY THE US AFFILIATE. WE ARE U.S. inve�tment ia much lakgek than o66i­ WILLING TO BELIEVE THAT THE REAL STATISTIC cial U.S. goveknment 6tati6tic6 indicate. FOR DIRECT AND INDIRECT INVESTMENT BY US Thi6 ha6, a6 the Con6ulate point6 out, 6ak­ FIRMS IN SOUTH AFRICA COULD BE DOUBLE THAT teaching con6equence6 6ok the U.S. diveat­ RECORDED BY THE BUREAU OF ECONOMIC ANALY­ ment movement. SIS, BUT ARE NOT CURRENTLY ABLE TO PROVIDE .------�I A REALISTIC ESTIMATE OF THE TOTAL. SUBJ: US I,NVESTMENT IN SOUTH AFRICA: THE 3. THE SECOND PIECE OF INFORMATION ON US HIDDEN PIECES USDOC 5577 FINANCIAL INVOLVEMENT IN SOUTH AFRICA WHICH HAS COME TO HAND IS THE "COUNTRY EXPOSURE l. SUMMARY: ACCORDING TO INFORMATION WE LENDING SURVEY" OF JUNE l982 ISSUED BY THE HAVE RECENTLY OBTAINED, US FINANCIAL IN­ FEDERAL FINANCIAL INSTITUTIONS EXAMINATION VOLVEMENT IN SOUTH AFRICA IS MUCH GREATER COUNCIL. ACCORDING TO THIS SURVEY, AS OF THAN WE PREVIOUSLY BELIEVED. THE TOTAL IS JUNE l982 SOUTH AFRICAN RESIDENTS OWED THE PROBABLY IN EXCESS OF $14.6 BILLION. THIS l67 LARGEST US BANKS $3,655 MILLION DOL­ INCLUDES DIRECT INVESTMENT, BANK LENDING LARS. US BANKS ALSO HAD CONTINGENT CLAIMS AND PORTFOLIO INVESTMENT PARTICULARLY IN ON SOUTH AFRICAN RESIDENTS FOR AN ADDITION­ GOLD MINING SHARES. THE MAGNITUDE.OF THIS AL $579.7 MILLION. THE STRUCTURE OF THESE INVOLVEMENT PLACES THE CURRENT DISINVEST­ BORROWINGS IS INDICATIVE OF THE APPROACH OF MENT DEBATE RAGING IN THE US IN NEW PER­ US BANKING INSTITUTIONS TO SOUTH AFRICA. SPECTIVE. END SUMMARY. OVER 59 PERCENT OF THE LOANS WERE TO BANKS WHILE ONLY 17 PERCENT WERE TO PUBLIC SECTOR ) 2. OVER THE LAST SEVERAL WEEKS SEVERAL IN­ BORROWERS AND 24 PERCENT TO NON BANK PRI­ TERESTING\PIECES OF INFORMATION CONCERNING VATE SECTOR ENTITIES. THE TERM OF THE DEBT US INVESTMENT HAVE COME TO OUR ATTENTION IS VERY LIMITED. ALMOST 86 PERCENT OF THE WHICH PROVIDE A MORE.COMPLETE PICTURE OF LOANS HAD A MATURITY DATE OF UNDER ONE TOTAL US FINANCIAL INVOLVEMENT IN SOUTH AF­ YEAR. ONLY 2 PERCENT OF THE LOANS HAO A MA­ RICA THAN HAS BEEN PREVIOUSLY AVAILABLE TO TURITY EXCEEDING FIVE YEARS, AND THE RE­ US. GENERALLY WE HAVE BEEN TALKING ABOUT MAINING l2 PERCENT HAD A TERM' BETWEEN ONE US INVESTMENT IN SOUTH AFRICA AS $2.6 BIL­ AND FIVE YEARS. THE STRUCTURE AND TERM OF LION. THIS FIGURE IS RECORDED BY THE US THE LENDING INDICATES FAIRLY CLEARLY THAT DEPARTMENT OF COMMERCE'S BUREAU OF ECONOMIC MOST OF THE FUNDS REPRESENT BRIDGING FI­ ANALYSIS AS US DIRECT INVESTMENT IN SOUTH NANCING TO ASSIST SOUTH AFRICA WITH BALANCE AFRICA AS OF DECEMBER 31, l98l. WE NOW UN­ OF PAYMENTS PROBLEMS AND TO HELP LOCAL DERSTAND PER REFTEL THAT THE FIGURE OF $2.6 BANKS WITH THE LIQUIDITY PROBLEMS EXPERI­ BILLION REPRESENTS ONLY THOSE INVESTMENTS ENCED DURING l982. WHILE WE DO NOT HAVE MADE DIRECTLY BY US FIRMS IN SOUTH AFRICAN COMPARABLE DATA FOR OTHER TIME PERIODS, WE SUBSIDIARIES. HOWEVER' MANY US AFFILIATES WOULD NOT BE SURPRISED TO FIND THAT THIS IN SOUTH AFRICA REPORT TO AND RECEIVE THEIR SURVEY CAUGHT US LENDING AT A PEAK. "WE EX­ FUNDING FROM SUBSIDIARIES OF US FIRMS BASED PECT THAT IT WOULD BE SIGNIFICANTLY LOWER 6

54 -- Countek6py -- Vec.83 - Feb.8�

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MONTHS TO A YEAR LATER, FOLLOWING THE RE­ PERCENT OF THE CAPITALIZATION OF THE MINING TURN OF THE SOUTH AFRICAN CURRENT ACCOUNT HOUSES (ALTHOUGH STEADILY INCREASING SINCE BALANCE TO SURPLUS [several words illegi­ 1980). US INVESTORS ALSO OWN 25.3 PERCENT ble) LIQUIDITY. IT IS WORTH NOTING THAT 65 OF THE PLATINUM MINES AND 11.0 PERCENT OF PERCENT OF THE LOANS TO SOUTH AFRICA WERE l DE BEERS. MADE BY THE 9 LARGEST US BANKS, AND AN AD­ DITIONAL 18 PERCENT BY THE NEXT 15 LARGEST ! 5. THE DATES OF THE ABOVE DATA VARY FROM BANKS. THIS DEMONSTRATES A NARROW BORROW­ l DECEMBER 1981 TO DECEMBER 1982, AND IT ING BASE FOR THE SOUTH AFRICAN ECONOMY IN I WOULD THEREFORE BE IMPRECISE TO DO A SIMPLE THE US. ADDITION TO PROVIDE A PICTURE OF THE TOTAL FINANCIAL COMMITMENT OF US INTERESTS IN 4. A THIRD SOURCE OF INFORMATION RECENTLY SOUTH AFRICA. HOWEVER, USING THOSE ROUGH RECEIVED IS A REPORT BY THE RESEARCH DEPART­ FIGURES WE FIND A TOTAL US FINANCIAL INTER­ MENT OF DAVID BOR.KUM HARE, A RESPECTED BRO­ EST OF $14.2 BILLION IN ,THE SOUTH AFRICAN KERAGE HOUSE ON THE JOHANNESBURG STOCK EX­ ECONOMY. IF ALL OF THE DATA WERE AS OF DE­ CHANGE, CONCERNING FOREIGN HOLDINGS IN CEMBER 1982, WE BELIEVE THE TOTAL WOULD BE SOUTH AFRICAN MINING COMPANIES AS OF DECEM­ SLIGHTLY HIGHER. THS MOST RECENT SURVEY OF BER 1982. THIS REPORT INDICATES THAT FOR­ SOUTH AFRICA'S FOREIGN LIABILITIES INDICATE EIGN SHAREHOLDERS OWNED SHARES VALUED AT THAT ON DECEMBER 31, 1982, THE COUNTRY'S SLIGHTLY MORE THAN $14.l BILLION ON THE JO­ TOTAL FOREIGN LIABILITIES WERE ONLY $33.9 HANNESBURG STOCK EXCHANGE IN GOLD MINES, BILLION. THIS SURVEY INCLUDES SHARE CAPI­ MINING HOUSES, PLATINUM MINES, DE BEERS AND TAL AT BOOK VALUE, WHEREAS THE DAVID BORKUM PALA.�IN. THE REPORT ESTIMATES THAT THE US HARE REPORT USED SHARE HOLDINGS AT MAR.KET SHARE OF THIS HOLDING WAS 57 PERCENT, OR PRICES WHICH SHOULD BE CONSIDERABLY ABOVE $8.l BILLION. THE FOREIGN SHAREHOLDING RE­ BOOK VALUE. THIS ADMITTEDLY EXTREME IMPER­ PRESENTS ALSMOST [sic] 38 PERCENT OF THE FECT COMPARISON, LEADS US TO THE CONCLUIION TOTAL CAPITALIZATION OF THE PUBLICLY QUOTED [sic] THAT US INVESTMENT IN SOUTH AFRICA IS �INING SECTOR STOCKS, EXCLUDI�G COAL. THE SUBSTANTIALLY GREATER THAN THE $2.6 BILLION US OWNERSHIP WAS OVER 25 PERCENT. THE SUR­ WE HAVE ALWAYS BANDIED ABOUT AND PROBABLY VEY ARRIVED AT THESE ESTIMATES BY EXAMINING MUCH MORE SIGNIFICANT THAN THE 20 PERCENT THE SHARE REGISTERS OF THE MAJOR MINING OF TOTAL FOREIGN INVESTMENT IN SOUTH AFRICA co:.lPAIHES IN SOUTH AFRICA. IT ATTRIBUTES THAT WE GENERALLY QUOTE. IT MAY ALSO BE SHARES HELD BY NOMINEES FOR AMERICAN DEPOS­ MORE THAN 1 PERCENT OF TOTAL US INVESTMENT ITARY RECEIPTS AND ASA LIMITED AS US HOLD­ ABROAD. ALL OF THIS SUGGESTS THAT THE PO­ INGS, AND THOSE TRADED ON THE LONDON STOCK TENTIAL FOR US DISINVESTMENT COULD BE MORE EXCHANGE OR HELD BY SEVERAL EUROPEAN NOMI­ IMPORTANT TO THE SOUTH AFRICAN ECONOMY THAN NEES AS EUROPEAN HOLDINGS. THE PERCENTAGE WE HAD PREVIOUSLY ASSUMED. HOWEVER, DISIN­ OF FOREIGN HOLDINGS IN THE SOUTH AFRICAN VESTMENT PROPONENTS WHO TARGET US COMPANIES COMPANIES HAS BEEN RELATIVELY STABLE OVER DOING BUSINESS IN SOUTH AFRICA AND BANKS THE LAST FIVE YEARS VARYING BETWEEN A LOW LENDING TO SOUTH AFRICA ARE AIMING ONLY AT OF 37.7 PERCENT AND A HIGH OF 42 PERCENT. THE TIP OF THE ICEBERG, SINCE PORTFOLIO IN­ US OWNERSHIP HAS HOWEVER BEEN DIMINISHING VESTMENT IS APPARENTLY LARGER THAN DIRECT SLOWLY SINCE 1979, FROM A PEAK OF [illegi­ INVESTMENT AND BANK LENDING COMBINED. ble) TO THE CURRENT 25.5 PERCENT. MOST US DARIS INVESTMENT IS DIRECTLY IN GOLD MINING COM­ PANIE·s. US INVESTMENT REPRESENTS ONLY 7. 7

COXSEJX;E CONI'. from pg. 48 U.S. Bases: There to Stay? America. So there we are, a progressive world where people floating nightmare in the Pacific, can live in harmony and have What is Prime Minister Hawke getting nothing and increasingly children without fear. That going to do about the U.S. bases? jeopardizing our sovereignty. means we have to kick out all Our Defence 'vlinister recently Today, God knows, we are foreign bases, that we have to at the crossroads. I don't think stop the mining of our uranium pla yed down the importance of anybody, even a fool could deny U.S. bases in Australia and I because it is the raw material that. Unless we make profound believe that would probably used in nuclear weapons,and that accurately reflect the govern­ changes in the world very soon, we must run our own economy. we will simply not survive into B-52s, possibly In short, we have to control ment view. the 1990s. It's not a matter of nuclear armed (we're not even our own destiny to allow us to "if," but rather "when," there will allowed to know) continue to fly bring about necessary change, over our soil and nuclear-armed oe a nuclear disaster. because I want my children to U.S. ships continue to call at I can talk in global terms, live in a country without secret Australian ports, despite growing but I can't influence anything political police, without power­ globally. However, I may have mad rulers and without the threat opposition both inside and outside @ the Labor Party. '.\1ore people some influence in my own of nuclear extinction. are waking up to the fact that country. Therefore, my concerns America will only "come to the have to be to make Australia fit aid" of a country if it suits into what I hope will be a more Cou.nte,,u,py -- Vee,. 83 - Feb. 84 -- 55

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CounterspY welcorres letters to rations worldwide. In contrast, rras which people in poverty the editor. 'lhey should be no F.ge's articles make the question face, F.ge ignores the fundam:n­ rrore than 250 words long. Coun­ about the nature of econanic and tal responsibility of the struc­ terspY reserves the right to edit social develoµrent of 'lhird tures that generate poverty in letters. Please write: letters \'brld governn-ents and irrplicitly the world today - the capital­ to the F.ditor, CounterspY rraga­ of Soviet foreign1 policy the fo­ ist p::,wers and their multina­ zine, P.O. Box 647, Ben Franklin ci of discussio�. 'lhese are tional corporations in collabo­ Station, Washington, D.C. 20044. large and worthy subjects. Un­ ration with local rulers. Once fortunately, F.ge's treatment of these basic forces which deter­ them is misleading in respect to mine the existence of men and AFGHl\NISTAN I the basic and difficult ques­ waren in the 'lhird World are iq­ tions in each of these areas. nored, the very possibility of­ I hail the e.xtensi ve and carpre­ For example, on develoµrent understanding tjle oppression of hensive article on Afgqanistan questions F.ge cites an anecdote, women as v.aren is undermined. In in your September-November num­ based on third hand quotation, � experience (rrainly in India) ber. 'I\,o points left rre less in which a rrale peasant alleged­ the oppression of poor rural wo­ than fully satisfied: the fail­ ly renarks that he would rather men is rrainly perpetrated by lo­ ure to include your former as­ give rredical treatment to his cal rulers - rroneylenders, land­ sertions that Amin was a.CIA cow than to his wife because if lords, etc. Rapists of poor wo­ agent (on this I expected rrore the cow dies "I cannot afford to men, for instance, cane largely infonnation than before)• '!he buy a new one. If� wife dies, from this class. 'lhe violence second: additional infornation I can get a new one." against middle and upper class on the participants in the as­ Understanding the oppression worren corres rrainly fran men of sault on the presidential palace of women is a difficult natter, their own econanic class. Even during which Amin was captured. particularly when warren are sub­ this is often in the coptext of In a previous issue Counterspv jected to rrany kinds of exploi­ u.s.-European cultural domina­ wrote it was sorrething that tation and oppression at once, tion. For instance, sorre brides might never be known, but sare- as is typical in the 'lhird World are murdered by their husbands 1::xrly there �t know. World. Many of these do not in­ and in-laws in urban North India Dr. Sol Segal volve th!;! family and are direct­ because the brides did not bring Palo Alto, CA ly the work of larger social a rrotorcycle or TV set as part forces. In others, larger of their dowry. KONRAD EGE RESPONDS: Counterspy forces express themselves As another example, F.ge cites never stated that Amin was a CIA through the family, often rein­ the fact that sare areas in Af­ agent; we reported that Afghan forcing traditional rrale dam.na­ ghanistan have never been ruled goverT1Illimt officials claim he tion. 'lhus (leaving aside the "by any central governrrent be­ was. In spite of repeated possibility of misquotation) the cause tribal leaders there re­ questions in numerous interviews peasant's staterrent starkly ex­ sisted" as a bad thing together while in Kabul, no one provided presses the control that men with illiteracy and feudalism. any corroborating evidence of have over the lives of women. Yet he asserts that until 1978 Afghanistan had been ruled by 1 this assertion. Unfortunately, But by anitting the context of I was also unable to learn rrore the staterrent, F.ge's,anecdote kings and other dictators. One about the December 1979 assault misses the essential in this v,DUld have thought that under such circumstances resistance to on the presfdential palace. I am case and is not helpful to our sure "sorrel:Jo:jy" does know, but understanding. central authority would not be that "sorrebcxiy" isn't talking. 'lhe peasant's staterrent is seen in a negative light! presented as if he really had a Indeed, the articles betray a AFGHl\NISTAN II choice and, hence, that the op­ considerable confusion as to the pression of women in Afghanistan nature of government in general, Until the series of articles en­ consists prinarily in the e.�er­ and in particular about the titled "Eyewitness Afghanistan" cise of such choices by their "srrall party" that took �r in by Konrad F.ge in the last issue husbands. 'lhe context of ex­ April 1978. 'lhe People's Deno­ of CounterspY (vol.a, no.l), the trerre poverty in which the sur­ cratic Party was apparently can­ rragazine has focussed prinarily vival of an entire family de­ mitted to "land reform," "wo­ on the nature of U.S. foreign pends on the survival of a men's rights" and "literacy." policy. 'lhis perspective, al­ single anirral is entirely ig­ But it did not seem to have rrany ways carefully docurrented, has nored. We get no sense of the rrembers who understood what shown that the anti-Sovietism anguish of the family. What these things rreant. We are told of U.S. policy is, like CIA� would you or I or F.ge or anyone that it resorted to force to vert actions, nuclear war else, including the wife, do in carry out these "reforms" during threats, etc. , principally for such circumstances? the first one and a half years - the prarotion of the profits and By ignoring the cruel dilem- force against the people them­ control of multinational corpo- selves. 56 -- Counte�6PY -- Vec.83 - Feb. 84

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One cannot liberate people by 'annihilation with nuclear weap­ which Jarres Schlesinger, forrrer hitting them over their heads, ons. The situation of the Soviet head of the CIA, assessed at the raping them and looting their people and goverrurent might be time as being the rost severe hares. Instead of enquiring in­ compared to that of a house con­ blow to capitalist interests to the social and econanic base tinually under siege by maraud­ since the Bolshevik revolution. of the party and governrrent that ers. Under these circumstances, By late 1979, NA'ro had decided could go on considering such ac­ every rrajor Soviet foreign poli­ to deploy first strike Pershing tivities as "reforms" for so cy decision and many dcmestic II and cruise missiles, the U.S. long, the violence is simplisti­ ones as well must be made with goverrunent had practically aban­ cally explained away by attrib­ sheer physical survival in mind. doned the SALT II nuclear arms uting it to a bad, adventurist The necessities of survival control treaty and a de facto faction (the Khalq faction) of have created fundairentally con­ u.s.-Ouna military alliance was the party that carre to be dani­ flicting pressures on Soviet partially in place. It was in nated by the villian of the foreign policy. On the one hand these desparate circumstances piece, Hafizullah Amin. there has been the necessity of that the Soviet governrrent de­ This brings us to sare of the avoiding war and keeping mili­ cided to back with troops what rost serious lapses and contra­ tary tensions low with one or appeared to be an anti-imperial­ dictions in the articles which rore capitalist powers - e.g. ist governrrent despite the vio­ have to do with the presence of the Rapa.Ho pact of 1922, the lence of that governrrent to its Soviet troops in Afghanistan ab­ M:llotov-Ribbentrop pact of 1939, people. out which F.ge asserts the fol­ the "peaceful co-existence" of That backing cannot, however, lowing: "By.the end of Amin's the 1950s and the "detente" of change the nature of events in rule, much of the country was in the 1970s. en the other hand, Afghanistan prior to late Decem­ open rebellion against him. 'The the necessity of allying with ber 1979. The People's Deno­ people rose up, ' is the way anti-imperialist forces as a cratic Party was not only a even sare party rrembers tell the long term solution to the prob­ "small party" - many revolu­ story.• • • In early December lem of survival has also becorre tionary parties are small. It 1979, Amin called on Soviet evident. had no base in the countryside troops to help; several thou­ Nothing significant about So­ where 90 percent of the Afghani sand arrived in mid-December. viet foreign policy can be un­ people live and not much to But Amin's days were over. He derstood without taking this ba­ speak of anong urban industrial was overthrown by.• • his own sic tension into account. It is workers, since there isn't very party••• and Babrak Kannal and a part of every judgement or ITUch industry in Afghanistan. The the Parcham faction took control misjudgement. For instance, dur­ events of April 197!:I can only be of the goverrurent." This fac­ ing 1945-56 when the U.S. brand­ described as a coup d'etat fol­ tion decided to carry on the ished about its nuclear ronoploy lCMed by intense factionalism "revolution." For this, it "had the Soviet govenment was ex­ and violence in the narre of "re­ no choice but to call for addi­ tremely cautious. It even ad­ form" and "revolution." tional Soviet troops••• [since] vised the Cmmunist Party of It is possible that the Far­ it needed [their] protection." Olina to allow Oliang-Kai Shek eham faction of the People's De­ These are, in my opinion, to head a coalition goverrurent nocratic Party now in power will quite contradictory assertions. during 1946-48 when the Party bring about national reconcilia­ F.ge wants us to believe that the and liberation Army were strong tion and sare real reforms. Soviet troops went in to protect and growing. The historian Coups can have progressive pos­ Amin's "dictatorship" against the William Applerran Williams has sibilities though there is no­ people and also to help along a noted that Soviet "restraint" in thing inherent in them or in the people's revolution consisting foreign policy "was a central Afghani situation that assures of land reforms, we.men's rights, and very probably crucial -­ it, so far as I can tell. F.ge etc. M:lreover, it would appear factor in preventing nuclear war has recounted sare progress since that a hundred thousand Soviet between 1945 and 1955." The ten­ early 1980. But the credibility troops were simply available for sions and misjudgements created of his claims of progress by the the asking, and that the deci­ by the tremendous U.S. military Kannal governnent is not en­ sion to send them to Afghanistan pressure were also a factor in hanced by his analysis. had primarily to do with the in­ creating tensions between the The U.S. governrren_t is pour­ ternal Afghani situation. socialist countries -- which was ing $3 billion into Zia ul-Haq's It had been a desire closest and rema.ins a basic goal of U.S. dictatorship in Pakistan largely to the heart of the leaders of foreign policy. {See for in­ to ensure that the war in Af­ the Bolshevik revolution to be stance Henry Kissinger's book ghanistan goes on. F.ge's trip of every assistance to the Nuclear Weap:,ns and U.S. Foreign to Afghanistan was a courageous people of the world struggling Policy done for Rockefeller's attempt to get a prespective to liberate themselves fran co­ Council on Foreign Relations in different faun the one in the lonialism and capitalism. It was 1956-57.) capitalist press. Sadly, his a desire that could not possibly The Soviet decision to sup­ report does not help us to fur­ be brought to fruition in any port the Afghani govenment with ther our rrutual goals of nation­ systema.tic way because the Sovi­ a large number of troops cane in al reconciliation and peace in' et Union was subject to the rrost late 1979. Earlier that year Afghanistan and the quickest intense devastation fran every the rulers of the U.S. had de­ possible withdrawal of Soviet capitalist power at one time or cided to replace "detente" with troops fran there. another during 1917-1945. Since a reneo,.,eci quest for nuclear su­ 1945 the U.S. goverrurent has periority. The prime reason for Arjun Makhijani confronted the Soviet Union with the reassessrrent was the over­ Silver Spring, MD the constant threat of carplete throw of the Shah of Iran - Counte��py -- Vec.83 - Feb.84 -� 57

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KONRAD F.GE RESPONDS: I cannot into Russian airspace. But did both the officials and the rrass help but see a situation in which the U.S. apologize for the U2 media. A classic example is seen a ca,.; is given preferential spy plane in 1960 that was shot in the New York Tirres, Feb. 22, treatrrent over a ¼Orran as a da,m by the USSR, which the U.S. 1973: "Israelis Down aL ibyan gross example of worren's oppres­ goverrurent loudly and veherrently Airliner in Sinai, Killing at sion. My article places this claim2d was a weather plane un­ Least 74" -- saying that it ig­ incident in the context of great til the surviving pilot told the nored warnings to land. "Jet poverty.• As the article states, truth? Yuri Andropov should Crash Lands." What a contrast waren have been doubly oppressed have been prompt in offering re­ to 007. - by poverty and feudal rule in grets. Yet, it took 32 years for Again the rrass media did not rrany areas, and because they are Arrerica to admit to shielding a hurl condemnation against Israel v.aren. Contrary to Makhijani, I rrajor Nazi war criminal. The when, on June 8, 1967, it at­ do not believe that multination­ rrass media 1-.1:Juld have the v.0rld tacked its closest ally's un­ al corporations have contrib­ believe that the United States is armed ship, the u.s.s. Liberty uted in a significant way to op­ the good peace-loving nation killing 34 and wounding 75 U.S. pression of warren anq to poverty while Russia is the bad Ccmnunist r:;ersonnel. There were no in­ in Afghanistan; there are only nation. On the other hand, the dignant officials or media; there a handful in the entire country. U.S. has a history of camri.tting were no honored and publicized My article does not say that atrocities all over the ¼Orld: burials. Israel said simply, "it one can "liberate people by hit­ overthrCMing goverrurents; CIA was a mistake." Of course, the ting them over their heads." The coups; invading !.atin Arrerica 12 Liberty was in international wa­ Hafizullah Amin regirre was over­ tirres in the last century; fer­ ters, clearly rrarked with U.S. thra,.;n because it "hit people vently trying to overthra,.; the Navy letters and a 5 foot by 8 over their heads" under the pre­ Nicaraguan goverrurent; destabi­ foot U.S. flag. text of instituting refonns. lizing African countries; sup-_ Despite the fact that these --I don't believe that one can porting dictatorships in El Sal­ events are unrelated, they serve explain the Soviet goverrurent's vador, the Philippines, and so to sha,.; the double standard in decision to send troops into Af­ on. Nor will history forget the media. ghanistan simply as a conse­ child labor, native Indians and What then was the cause of quence of the breakda,.;n of the African diaspora, slavery, all this anti--cornnunist rralevo­ "detente" between the U.S. and Hiroshirra, Vietnam, systematic lence? It served its purpose the Soviet Union, and Ronald racism against Blacks, destruc­ well. Imrecl.iately after the So­ Reagan's push for nuclear su­ tion of the environrrent, and viets shot da,m the plane, 2,000 periority. This does not do jus­ the ever-increasing number of rror:e Marines were sent to Leba­ tice to the canplexities of a starving, hor.eless citizens in non -- rrany rrore have gone situation in which the options this, the richest country in since; and people were distracted of the parties involved were the v.0rld. from their plight here at hare - very limited. The Soviet gov­ Few news items have received - unerrployrrent, pay cuts, hunger ernment had the choice of as­ as much coverage as KAL 007. and a bad econany. It gave our sisting by sending troops to Certainly, the great tragedy of goverrurent an excuse to continue back up the People's Dem:x::ratic the Israeli invasion of I.ebanon to build up militarily in North ·Party government which, as in 1982, or the heinous treat­ East Asia, near the Soviet Makhijani concedes, might rrent and murder of the Arabs and coast; gave Congress an ex­ "bring about national reconcil­ the confiscation of their lands SOlre cellent opportunity to escalate iation and real refonns." did not. Not even the holocaust the military budget to its high­ Or the Soviet Union could have at Shatila and Sabra in June of est level in history: $187.5 withdrawn its support, alla,.;ing 1982, or the alrrost daily atroc­ billion by a vote of 266 to 152. ultra-reactionary "rebel" forces ities of South Africa against The mass media can perform a - backed by the CIA -- to care the Black Africans. The double public service by presenting the to power. Those who criticize standard is crystal clear. news fairly and objectively to the Soviet troop presence in Af­ When Israel's fighter planes the Arrerican r:;eople. What v.0uld ghanistan must face up to this shot da,m a Libyan ccmrercial be important is the search for alternative. airliner on February 21, 1973, the facts surrounding the South there was no hue and cry, or Korean airliner. KAL 007 hostile reaction against Israel, For the entire rronth of Septem­ although there were 113 civil­ Dora Henderson ber and into October, the media ians aboard. 102 persons, in­ Silver Spring, MD drum beat on the da,ming of the cluding 27 v.0rren and children in South Korean 007 has gone on re­ addition to 8 crewrren were killed lentlessly. No one can discount alrrost instantly. The French pi­ the tragic loss of 269 innocent lot had lost his way in a sand­ lives. It is very sad for their storm and accidentally fla,m over families. However, entirely too occupied Egyptian territory in I:1Uch focus has been placed on the Sinai, 12 miles from the this disaster, as if this is the Suez Canal. By the tirre the only tragedy in the =rld today. plane was intercepted by Isra­ Reagan and other officials eli fighter planes, it had turned demanded an imrediate apology around and started flying towards from the Soviets for the da,m­ cairo, nine minutes away fran the ing, despite all unanswered area. Ha,.;ever, it was wantonly questions about the 007 airliner shot da,m anyway. Condemnation, being 300 miles off course, deep hysteria were lacking here by 58 -- Cou.n.tU6p� -- Vec..83 - Feb.84

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