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COUNTERNeed Know The Magazine For People Who To Volume 5 Number 3 $2 May-July 1981

El SalvadorWhite Paper? New Executive Order on CIA and FBI TheWa shington Pos t- Speaking for Whom? U.S. Bases in Saudi Arabia Who Wants Peace in Afghanistan? Turkey: Torture for NATO Secret World Bank Plan for Indonesia ASIO: Made in USA

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Editorial

In 1950, the National Security Council eign control or even inspiration. By 1972, issued a directive (NSC-68) which said MHCHAOS was being severely criticized even that "a free society is vulnerable in that by some CIA officers because it was in it is easy for people to lapse into ex- clear violation of the prohibition against cesses - the excesses of a permanently domestic CIA operations. In response, CIA open mind ..." Taking the directive to Director Richard Helms decreed that: "A heart, the CIA proceeded to penetrate and clear priority is to be given in this gen­ manipulate the media and academia to spare eral field to the subject of terrorism." the American people from the danger of More specifically,Helms said that MHCHAOS having open minds. would not "be stopped simply because some Now the CIA says that the NSC did not go members of the organization do not like far enough and that "it is the act of pub- this activity," and that "to a maximum ex­ lishing (per se) without being reviewed tent possible" MHCHAOS director Richard [by the CIA] that is detrimental." As CIA Ober "should become identified with the censor Herbert E. Hetu put it, the CIA's subject of terrorism inside the Agency as problem is that: "We can't classify his well as in the Intelligence Community." [an author's] head." This brings us to HR4 Within a few months, MHCHAOS (without and S391, entitlei in Newspeak fashion; changing its functions) became the Inter- "Intelligence Identities Protection Act." national Terrorism Group (ITG) under These bills would make it illegal to pub- Richard Ober. Same operation, new cover. lish information leading to the identifi- In 1974 when MHCHAOS was formally termi­ cation of intelligence officers and nated, the ITG continued under a former agents, even if the information has been MHCHAOS officer; retained all of the derived entirely from public sources. MHCHAOS files on U.S. citizens; and con- CounterSpy urges everyone to pressure tinued receiving intelligence from the FBI Congress and the media to publicize and and other governmental agencies. Ober went defeat these bills. For further assistance on to the National Security Council as a one may contact Counterspy or the Campaign CIA employee and was involved with "ter- for Political Rights (201 Massachusetts rorism" projects there. Avenue N.E. , Washington, D. C. 20002; tel. The "unleashing" of the CIA and the FBI 202-547-4705). for counterintelligence operations in the Another serious assault on our rights is U.S. against suspected "terrorists" is a President Reagan's move to legalize more hoax. Indeed, the CIA to this day has re­ domestic CIA operations. The CIA might fused to give even the Miami police the soon be allowed to conduct domestic coun­ names of rightwing Cubans - trained by the terintelligence operations aoainst "for­ CIA in the use of firearms and explosives eign controlled suspected terrorists." If - who are terrorizing the residents of Mi­ this sounds similar to Operation MHCHAOS, ami. And, under then CIA Director George which began in the early 1960s, there is Bush, the CIA did not fully cooperate to good reason. MHCHAOS was also defined as solve the assassination of Ronnie Moffitt counterintelligence directed at finding and Orlando Letelier in Washington, D.C at foreign control over or just foreign in­ the hands of the Chilean secre� police and spiration of political dissent in the U.S. CIA-trained rightwing Cubans. MHCHAOS operatives and even former CIA Di­ The people in the U.S. must act quickly rector William Colby have admitted it was (particularly given former Undersecretary not counterintelligence but it was placed of State George Ball's public definition under counterintelligence because that is of striking workers as "paraterrorists") the most hidden component of the CIA. to stop Reagan's executive order from "un­ MHCHAOS spied on hundreds of thousands leashing" the FBI and CIA on us. of Americans but found no evidence of for-

Approved For Release 2010/06/15: CIA-RDP90-00845R000100140007-5 Approved For Release 2010/06/15: CIA-RDP90-00845R000100140007-5 Contents El Salvador White Paper? by Konrad Ege El Salvador White Paper? ...•....••..... 3 (Ed. note: Konrad Ege is an independent U.S. Labor Against journalist. He has worked with -Counterspy Intervention in El Salvador ...... 9 for over two years.) Terrorism in Guatemala .••••...... 10 In 1964, Lyndon B. Johnson used the Gulf of Tonkin "incident" as a pretext to jus­ Princeton's Psy-War •.•••..•.••.••..•.. 11 tify bombing North Vietnam "back to the stone age." Today, the Reagan administra­ Washington Post - tion is using a much less sophisticated Speaking for Whom? ..•••.••.••..••• 13 pretext for escalating U.S. military in­ tervention in Central America: According Secret World Bank Plan to the State Department, El Salvador has for Indonesia .•.•.....•...... •.. 19 become "a textbook case of indirect armed aggression by Communist powers." To back Afghanistan: Foreign Intervention up these charges, the State Department re­ and the Prospects for Peace ...... 24 leased an inch-thick "White Paper" enti­ tled "Communist Interference in El Salva­ U.S. Bases in Saudi Arabia ••..••.••... 33 dor" to the press on February 23, 1981 which it claims reveals "a highly disturb­ Turkey: Torture for NAT0 •...••....•... 44 ing pattern of parallel and coordinated action by a number of Communist and some CIA-Lebanon •.••••••••.....•.....•..... 46 radical countries seeking to impose a mil­ itary solution in a small, Third World MOSSAD Terrorism •••.•••••.....•.•.....4 7 country." The documents printed in the White Paper ASIO Names••.•••••••••.•..••.•...... 4 7 are supposedly part of a larger set of documents captured from the guerrillas by ASIO: Made in USA ••..•.••..••..•...•.. 49 Salvadoran soldiers. Some of the docu­ ments, according to Karen de Young in the RCMP Updates•••••.••••••••••.•••..•..• 50 Washington Post were seized in early November 1980. The rest were sup­ CIA and FBI: posedly discovered by Jon Glassman, a A New Executive Order•••.••••.•. •. 54 Foreign Service officer who was sent to San Salvador on January 16, 1981. His mis- sion was to "look into foreign interven­ tion." At first, writes Young, Glassman wasn't too successful and, since he didn't SUBSCRIBE find anything else to do, he "wandered around to various security force headquar­ TO COUNTERSPY ters." And, according to "U.S. officials and diplomats in Mexico, Central America and Washington," this is when he found an­ other set of guerrilla documents - over 18 pounds - which "Salvadoran soldiers •.. had This publication blithely stacked ••. on an unused desk, as­ is available in microform. suming they were useless." The documents were brought to the U.S., and for two University Microfilms International weeks, "a team of a dozen or more offi­ worked to bring to­ 300 North Zeeb Road 30-32 Mortimer Street cials and secretaries Dept.P.R. Dept. P.R. gether the new documents and collate them Ann Arbor. Mi. 48106 London WlN 7RA US.A. England with earlier intelligence." (Washington Post, 3/14/81) The White Paper consists of 19 out of •¢-�•··� ..... X-523 "over 80" captured documents and several Counterspy, May-Juiy 1981 - i Approved For Release 2010/06/15: CIA-RDP90-00845R000100140007-5 Approved For Release 2010/06/15: CIA-RDP90-00845R000100140007-5

photos of unexplained origin. It focuses ed talking abou� the only P. (party) which on the role Salvadoran Communist Party they began with militarist inclinations leader Shafik Handal allegedly played in and rejected the P.C. (Communist Party) obtaining military support for the guer­ The Hungarian replied: it is because of rilla movement from Socialist countries. the P. (party) that �he socialist world Emphasis is placed on alleged Cuban and opens the door to you. It was a different Nicaraguan aid to the guerrillas. A de­ case in Nicaragua. The last meeting was tailed study of the documents printed in with the Soviet. the White Paper raises serious questions From the German Democratic Republic: about their validity. Even if they were Small souvenizos; operation - "Pan de genuine, the documents do not prove the Lata" - rocket/launchers State Department's claims of massive Com­ in addition to (word illegible) munist intervention. with CRM they want to agree on a Document B, for example, consists of two party "Perl. " pages which are presented by the State De­ - also-files = NO partment as "Excerpts of notes on trip to Mexico by member of Political Commission of Salvadoran Communist Party... (dated Fair (bazaar) April 26, 1980) ." The original Spanish a) Manuel b) Diab and c) Juan Jose document consists of two undated handwrit­ Cassettes are need with the voices of the coordinating body (greetings or ten pages whicn are translated as follows: speeches) and with speeches of (word il­ (Begin Excerpt) legible) F.D. Handkerchiefs with the It is one thing or another - signature of the Directors of the Coordi­ 4th The Program: I agree with it, but nating Body and Stamps Sent could we have a different one? 5,000 key rings Memo: In the political analysis (word FZorecitas illegible), but the present moment re­ (End Exce�t) quires us to move away from this into the Obviously, even if this were a genuine coordination of our actions. In the inter­ document, the two pages say hardly any­ ng favo ­ national arena, not everythi is r thing other than that some people met with able. We have to work on it. We have not citizens of several Socialist countries. gained everything . Document C, introduced as "Excerpt from Hector: Also in relation to that. notes on meeting of Political Commission I: I took advantage of the opportunity of Salvadoran Communist Party, April 28, the to mention (word illegible) in rela­ 1980" likewise consists of two handwritten tion to the S.I. Hector said that the de­ undated pages. It is obviously used in the lay of the invitation sent to Santo Domin­ White Paper because it mentions "possibil­ go was a result of administrative and not ities of assistance from the socialist political problems. They talked about the camp"' and a suggestion that was made "to- advantage of mentioning everything to Fidel himself" about "involving everyone David. in the area." Otherwise, Document C is Mayorga: I am at your service. If you full of empty sentences with very little ask me to be a street cleaner or a l.aun­ information, e.g., "We acted accordingly. derer. I do not look behind, rather, I look ahead Socialist Embassies. with boldness. On the basis of this pan­ Wide-ranging: German Democratic Republic, orama, we should tackle the problems which Bulgaria, Polish, Vietnam, Hungarians, Cu­ are: - focus on the main tasks without ba, hel.d at the Hungarian Embassy The losing sight of them. - Main tasks: Make meeting was a good one. A lot of ques­ adjustments in the Party to carry out the tions. struggle •••" He gave them the requests. Document D ("Report on trip of 'Eduardo' ·Then the bilateral meetings: One by one (member of Political Commission of Salva­ of (word illegible) doran Communist Party) from May 5 to June Vietnam: good 8, 1980") is comprised of three typed Bulgarians: good pages. Most likely, it was not written Polish: We talked very much, 3 hours with a Spanish model typewriter since all Hungarian: Very interesting. Gloria start- _ 4 - CounterSpy, May-July 1981

Approved For Release 2010/06/15: CIA-RDP90-00845R000100140007-5 Approved For Release 2010/06/15: CIA-RDP90-00845R000100140007-5 the accents are marked in by hand. (This and doesn't prove anything. is true for most - probably all - type­ Document M, headlined "Report on logis­ written Spanish documents, even the ones tical plans (undated)" - if it were a true supposedly written inside El Salvador, but document - almost makes one feel sorry for in some cases the reprints are too bad to the ineptitude of the Salvadoran guerril­ tell.) Document D also refers to "Mili­ las. It outlines broad guidelines that cos" which is translated by the State De­ presumably would not need to be stated in partment as "members of the armed forces." a "report on logistical plans" at this However, "Milicos" is a term unlikely to stage of the conflict, e.g., "The logisti­ be used by a Salvadoran. Salvadorans use cal plan must go hand-in-hand with a mili­ "chafarotes" as a slang expression for tary plan, i.e. an assessment of exactly soldier, "milicos" is used in Southern what are our strategic points and how to Cone countries. guarantee their maintenance and strength­ Document Eis a key part of the White ening. The military plan must be in full Paper since it describes a trip supposedly accord with the political plan and guaran­ made by Shafik Handal to a number of So­ tee political objectives in terms of glob­ cialist countries, and the contributions al and current strategy •.. " Document M of arms and supplies these countries al­ also contains one map which supposedly di­ legedly made. It is four pages long and agrams how weapons are being smuggled into typed, with the accents marked in by hand. El Salvador. Another map can be found in According to Document E, Handal was in Document N, "Notes on delivery arrange­ Vietnam from June 9 to 15, 1980 where he ments (undated)." It is reproduced below was received by "Le Duan, the secretary and appears completely meaningless. general of the Vietnamese CP." The document also says that both the Bulgarian and Hungarian governments are -� ready to manufacture 10,000 unifo.rms each for the Salvadoran guerrillas as soon as they receive the patterns and sizes. But, the document goes on, "the comrades' deci­ sion about the pattern is still pending." One has to stretch one's imagination �on­ siderably to believe that the guerrillas would be interested in providing Bulgarian and Hungarian clothing factories with pat­ terns for 20,000 uniforms. The White Paper several times claims that the guerrilla forces are having problems in transporting arms and ammunition into El Salvador, let There are other questions about the va­ alone 20,000 uniforms. lidity of the documents. Several of them, Document F consists of two typed pages _including some of the minutes and reports of "weapons commitments" from Vietnam, by members of the Salvadoran guerrilla Ethiopia, Bulgaria, Czechoslovakia, Hunga­ groups, are very wordy and contain little ry and the German Democratic Republic. It specific information. However, most docu­ supposedly details shipments from these ments are very specific when it comes to countries to the Salvadoran guerrillas via pinpointing alleged outside assistance. �uba. Interestingly, Cuba is referred to Surprisingly, only a few code words are by the code name "Esmeralda," while on the used and many persons (particularly the same page Havana is mentioned by name. ones the U.S. government wants to pin­ (The Washington Post credits Jon Glassman point, such as Nicaraguan and Cuban gov­ with cracking the "Esmeralda" code.) ernment officials) and localities are re­ Document L, entitled by the State De­ ferred to by their real names. partment "Notes on arms deliveries (un­ Most of the code names that are used are dated)", consists of three handwritten easy to crack, or are well known among the pages under a headline "First Shipment" Salvadoran population, e.g. that the First with lists of arms and ammunition, but Officer of the Central Command of the nothing else. The-document does not give Farabundo Marti National Liberation Front any indication where the arms came from, uses the name of "Marcial." People that Counterspy, May-July 1981 - 5

Approved For Release 2010/06/15: CIA-RDP90-00845R000100140007-5 Approved For .Release 2010/06/15: CIA-RDP90-00845R000100140007-5 are referred to by name include Humberto 6, 1981. Quoting extensively from what was Ortega and Bayardo Arce·of the Sandinista to become Document E, de Onis' article Directorate, Fidel Castro and Yasir Arafat about Communist aid fit in nicely with on­ (who supposedly met some Salvadoran dele­ going U.S. governmental propaganda ef­ gates in Managua; Vice President George forts. De Onis followed up his first arti­ Bush told Israeli Foreign Ministe� Yitzhak cle with a second piece, again based on a Shamir on February 20 that the PLO was "leak," on ·February 20. In this article de aiding the Salvadoran guerrillas.) The Onis copies a piece of information from various political organizations belonging the'document which said that Iraqi aid to to the Democratic Revolutionary Front the Salvadorans amounted to $500,000 - (FDR) are almost always mentioned by their however, the Spanish "original" in the real names. The State Department calls the W'•ite Paper puts the amount at $200,000. FDR - with purposeful inaccuracy - a "Fed­ On February 20, the New York Times also re­ eration of political fronts of armed printed the t�xt ofaState Department groups." In reality it is a political op­ memorandum to friendly embassies in Wash­ position organization consisti.ng of a wide ington on Communist interference in El variety of parties, unions, organizations, Salvdd�r. The State Department was pulling and associations. the strings, and the Times was playing its Finally, the White Paper contains two part. pictures of a trailer truck allegedly used Several other news organizations were to smuggle arms into ·El Salvador and given a summary of the White Paper on Fri­ seized by Honduran authorities in January day, February 20, and the weekend editions 1981. Approximately 100 M-16 rifles "some of most dailies were full of reports of of which are traceable to Vietnam," along Communist aggression in El Salvador based with mortar rounds and ammunition were on a State Department report - the White supposedly discovered in the "hollowed-out Paper - even though most journalists, who insulation on the top of the truck." Pic­ wrote the articles, had not even seen it tures were taken from two sides; one of yet. The Reagan administration's strategy them shows the back and one side of the of inundating the public with reports trailer. The side of the.trailer has hori­ about Communist intervention had worked. zontal lines and about eleven (the picture In a massive media operation, they had is blurred) vertical frames reaching al­ managed to put out a tremendous amount most to the trailer's roof. The other pic­ of propaganda which they did not have to ture, supposedly of the same trailer, answer questions about since it had been shows the exposed top of the trailer in "leaked" to the media. which the rifles and other equipment are When the complete White Paper was final­ clearly visible. However, the picture is a ly released on February 23, it was hardly composite of three different photos taken considered newsworthy any more and es­ from a fairly high vantage point which caped serious scr�tiny. Indeed, it is evi­ �ere fitted together so crudely that the dent that the State Department is not in­ original length of the trailer has been terested in having the White Paper ana­ changed. In addition, one can say with al­ lyzed. All it wanted - and got - was to llk)St 100 percent certainty that the two get the message of Communist aggression pictures are not of the same trailer. The out to the public. The State Department photos taken from above which reveal the printed only 100 copies of the full docu­ weapons show part of the side of the ment which, of course, were snatched up trailer. However, this trailer has differ­ within minutes. Reporters asking for re­ ent siding than the trailer photographed prints are told that there are no more from the back - the vertical lines are copies, and additional copies won't be ntissing. printed either. The State Department press · An examination of the contents of the office is even refusing to xerox their White Paper in itself raises severe ques­ copy of the White Paper for journalists tions, but the way in which the paper was who offer to pay for that service. publicly released makes it even more ques­ Along with managing the U.S. media cam­ tionable. First, parts of the White Paper paign, the Reagan administration made a were leaked to Juan de Onis, who, no ques­ concerted effort to convince Latin Ameri­ tions asked, used them for a front page can and Western European governments about article in the New York Times on February the need to counter Communist aggression 6 - CounterSpy, May-July 1981

Approved For Release 2010/06/15: CIA-RDP90-00845R000100140007-5 Approved For Release 2010/06/15: CIA-RDP90-00845R000100140007-5 in El Salvador militarily. Special mis­ about Stoessel's statement that the level sions were sent to several Latin American of aid to the Salvadoran military had to and NATO governments. At best, they re­ respond "not only to the present situation ceived a mixed response, and a State De-, but to the potential of the other side to partment official acknowledged "that the create further violence .•• There is, thus, public response by the allies has not an element of deterrence. built into the (New measured up to administration hopes." level of our total support." York (Washington Star, 2/26/81) Times, 3/14/81) Former CIA Deputy Director Vernon A. Consolidation of a broad opposition Walters was dispatched to Latir America, front to Reagan's El Salvador strategy in but was not able to find a single govern­ the U.S. is hampered by the media which - ment willing to openly support Reagan's even though it has raised questions about military strategy in El Salvador. In Mexi­ the level of U.S. military involvement - co, he received a stunning rejection when has accepted the State Department's ver­ he met with President L6pez Portillo on sion of events. Even Acting Assistant Sec­ February 20. The next day, Portillo met retary of State for Inter-American Af­ with a visiting Cuban minister and public­ fairs, John Bushnell told some reporters ly stressed Mexico's warm ties with Cuba, that the press had been "very cooperative" and, in a reference to U.S. military ac­ in publishing "material meant to show So­ tions in El Salvador said in a February 24 viet involvement in El Salvador." Willing­ speech that it is "difficult to defend the ly, most of the corporate owned media is principle of self-determination in face of going along with State Department propa­ the unscrupulous arrogance of military ganda, as illustrated by its reporting power." about the White Paper, which, at best, is Lawrence Eagleburger, now Assistant Sec­ a questionable document and would certain­ retary for European Affairs (he has held ly not be the first piece of "evidence" posts as State Department intelligence forged by the CIA. Former CIA officer research specialist and economic officer, Philip Agee stated that he himself "wrote as political officer at NATO headquarters up false documents ••• for years for the in Brussels and has been on the staff of CIA in Latin America, in.order to achieve the National Security Council) was sent the very same political purpose" that the abroad to win over NATO governments. He White Paper is serving right now. (Guard--- didn't have much luck either. The West �, 3/11/81) German government cautioned him on escala­ "When events do not sustain the tion of the U.S. military role; Italian claims, ... the CIA 11manufactures the ap­ President Sandro Pertini said publicly propriate 'proof', says former CIA of­ that he had sent messages to President ficer and counterinsurgency expert Reagan urging him not to turn El Salvador Ralph McGehee. In an article for The into another Vietnam, and even British Nation� McGehee writes that the CIA is Prime Minister Margaret Thatcher issued a manipulating public opinion on El Sal­ statement condemning "violence from every ·vador as it did in earlier disinforma- quarter." tion campaigns on Indonesia, Iran, and Strong opposition to Reagan's policy is Chile of which he has personal knowl­ growing in numerous organizations in the edge. "What the CIA is now attempting U.S., including many labor union locals, in El Salvador is merely a reflection the anti-draft movement, progressive po­ of what the United States has done in litical parties and religious organiza­ many countries" of the Third World. tions, especially the Catholic Church, and McGehee further says that the 18 pounds has even filtered down to some Republican of documents allegedly "discovered" by members of Congress. After hearing several Jon Glassman can be "none other than administration witnesses, including Under­ the product of yet another CIA forgery secretary of State Walter Stoessel, on operation. " U.S. military aid to the Salvadoran re­ The CIA has already heavily censored gime, Republican Senator Warren Rudman McGehee's article for The Nation. As we commented that he found it "disturbing". go to press, the outcome of a lawsuit that there "was the lack of a bottom line" challenging the censorship is still in U.S. military assistance. Rudman and pending. other Senators were particularly concerned Counterspy, May-July 1981 - ?

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Shafik Handal, who is prominently fea­ ment displayed a burned-out boat on the tured in the White Paper (along with the beach of El Cuco. The government claimed Cuban, Nicaraguan and Soviet governments) that El Salvador had been invaded by some categorically denies the authenticity of �qo well armed guerrillas and hinted that the documents printed in the White Paper. they had come from Nicaragua. The report Handal stated'that "there is no doubt that received wide publicity in the U.S. media this is a maneuver to justify the growing and, according to, UPI, "Only hours after supply of U.S. arms and military personnel the invasion claim was in print, th� to the genocidal Christian Democratic mil'­ United States released $5 million in mili­ itary junta and prepare for an eventual tary aid to El Sa.lvador's ruling.•• junta military aggression in Central America." citing evidence of foreign support for the Handal asked: "With what moral right does guerrillas." [the U.S. government] question the right Some time later, however, then U.S. Am­ of the Salvadoran people to arm themselves bassador Robert White had to admit that and carry out a war of survival .•• ? What the evidence provided by the Salvadoran is the legal and moral authority of the government "did not support" the junta's U.S. government to question this right claim of a 100 man invasion. Journalists being ... the largest supplier of arms to went to the site of the alleged invasion - the bloody dictatorships of Latin Ameri­ the Salvadoran military claimed it had ca ... ?" State Department spokesperson killed 53 of the guerrillas and seized William Dyess did not see a need to re­ dozens of weapons -·but found no sign of spond to Handal's statement and said he the other boats allegedly used in the "would not dignify [it] with any comment." operation, "no witnesses to an invasion State Department officials have also and no bodies of dead guerrillas to be failed to comment on other fairly obvious seen anywhere." UPI quoted one U.S. embas­ questions about the White Paper - e.g. why sy employee commenting on U.S. trust in the State Department and not the Salvador­ the Salvadoran report and the immediate an government was the one to release the assurance of military aid: "I guess we documents, especially since the first set rushed to believe something we really of documents had allegedly been discovered wanted to believe." Needless to say, by Salvadoran officials in November 198q these challenges to the veracity of the and why the Department is not printing any story received very little media attention more copies of the White Paper.· while the original, false report was fea­ The White Paper would not be the only tured on ·the front pages of ioost major piece of disinformation about El Salvador U.S. dailies. that has been printed in the U.S. press. In the case of the El Salvador White Pa­ On March 4, 1981 for example, UPI issued a per, the corporate-owned media in the U.S. bulletin "URGENT" entitled "Guerrillas At­ likewise rushed to conclusions about Com­ tack U.S. Embassy with Submachinegun Fire­ munist intervention in El Salvador because San Salvador, El Salvador. Leftist guer­ they "really wanted to believe" it. How­ rillas raked the U.S. Embassy with subma­ ever, drawing conclusions about the valid­ chinegun fire today as they drove past the ity of the White Paper is not just a mat� building aboard two vehicles,'authorities ter of whom one believes. It has to be said... The Embassy has been a target of stressed that it is the State Department leftist guerrilla attacks because of U.S. that wants to sell its version of events military and economic support for the rul­ to the public, and, therefore it has to ing military-Christian Deioocratic junta come up with proof for its charges of Com­ they are fighting to topple." Several munist subversion. And that has not been hours later, UPI was forced to change its done. On the contrary, there are more than story to "Rightwing gunmen raked the U.S. enough facts to lead one to the conclusion Embassy in San Salvador with automatic that the White Paper is forged. According rifle fire••. " However, even this report to UPI, even Deputy Salvadoran Foreign concluded with: "The Embassy has been a Minister Alejandro Gomez "doubted the target of leftist guerrilla attacks be­ truthfulness" of one part of the captured cause of the U.S •••• support for the rul­ documents. ing.. . junta." It is not surprising that the government Another incident was even ioore telling. of Ronald Reagan and General Haig might be On January 14, 1981 the Salvadoran govern- willing to put out documents of a highly 8 - Counterspy, May-JuZy 1981

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questionable validity. However, it is an questioningly going along with the govern­ indictment of U.S. journalists and media ment publicity campaign. outlets who prostituted themselves by un-

US. Labor Against Interventionin El Salvador

An increasing number o:t" labor union lo- ated Transit Union, Local 265 is fairly cals are openly opposing Ronald Reagan's typical of labor opposition to U.S. inter­ military strategy for El Salvador and the vention in El Salvador. The resolution was assistance the U.S. government and the adopted at the local's January 1981 mem- Duarte regime have received from the CIA- bership meeting, and sent to Secretary of connected American Institute for Free La------State Alexander Haig. bor Development (AIFLD). Over t�e last few WHEREAS, the Legal Aid Office of the month�, f �r ex�ple, the foll�wing labor Archdiocese of San Salvador has docwnented organ z tions in sou ern California_ alone � � � _ over 10,000 assassinations and hund:r>eds of have Jo�ned the growing list: San Jose disappeared persons and illegal detentions Federation of Teachers, Local 957, AFT; in El Salvador in 1980· and Central Labor Council of Santa Clara Coun- WHEREAS, the Archdio�ese has reported ty AFL-CIO; Cannery Workers Conunittee of that over 80% of the assassinations have Teamsters Local 679, San Jose; Social Ser- been committed directly by the Salvadorean vices Union, Locals 535 and 715, Services Armed Forces and by paramilitary groups Employees International Union, Oakland and supported by the Armed Forces; and San Jose; Santa Cruz County Central Labor WHEREAS, a majority of the hwnan rights Council; International Chemical Workers violations have been directed against the union, San Jose; Amalgamated Transit working people of El Salvador;•.. and the Union, Local 265, San Jose; Central Coast bombings of union halls and suspension of District Council 57, American Federation all civil liberties have impeded free of State, County and Municipal Employees, trade union organizing; and San Jose, Redwood City and Oakland; and WHEREAS, the U.S. government has sup- International Molders and Allied Workers, ported the present Salvadorean regime Local 164, Oakland• since its inception on October 15, 19?9, The Executive Board of the International and has since authorized more economic and Molders and Allied Workers, Local 164 sent military aid to El Salvador than it autho- the following letter to the Salvadoran rized in the preceding deoo.de; and Democratic Revolutionary Front (FDR): WHEREAS, the American Institute of Free Dear Brothers and Sisters: Labor Development, partially sponsored by We, the International Molders & AUied the AFL-CIO, operates in El Salvador;, and Workers Union, Local No.164, strongly sup- has not condemned the Salvadorean junta port F.D.R. in their struggle to achieve for its massive violations of hwnan and worker's rights; THEREFORE BE IT equality and better living and working -- conditions for the people in El Salvador. RESOLVED, that Local 265 its members We condemn the present government in EZ call for the U.S. government to cut-off Salvador for their open violation of hu� all economic and military aid to the un­ man rights... elected junta government in El Salvador, We also strongly oppose any U.S. inter- withd:t>aw all advisors and military person- vention or military aid to the present net from El Salvador and cease all present government. We strongly feel that the peo- and future forms of intervention in that and BE IT FURTHER pZe of El Salvador should be aUowed to country; -- resolve their own internal problems with- RESOLVED, that Local 265 its members out interference. request that the AFL-CIO disassociate it------· self from the AIFLD program in El Salva- The following resolution of the Amalgam- dor. Counterspy, May-July 1981 - 9

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Late last year, the International Long­ our profound revulsion at the reign of shoremen's and Warehousemen's Union (ILWU) terror which has been imposed upon the also decided that it would "refuse to people of El Salvador by their government. handle any and all U.S. military cargo ... If by our action we can stop one bul­ bound for El Salvador." The ILWU's newspa­ let, loaded by our hands, from killing one per, The Dispatcher, described the deci­ innocent citizen in El Salvador, we will sion: be extremely pleased." The announcement came in the wake of ILWU members, Herman said ... will moni­ continued reports of systematic executions tor and intercept any milita:ry cargo bound of thousands of innocent people by the for El Salvador on the West Coast. At current U.S.-supported military govern­ least one "substantial shipment" of mi Zi­ ment, along with kidnapping, torture, and tary goods ... was taken off the dock imme­ murder of opponents of the regime, incfoc1- diately after the press conference and ing numerous church, peasant, and trade hauled over to the Oakland army base for union. leaders. storage that same day. "We do not invoke this boycott weapon Keith W. Johnson, the Pres�dent of the lightly, " International President Jim Her­ International Woodworkers of America con­ man told a large group of national and gr�tulated the ILWU on their action by local media •.. "We have made a thorough saying that "Your actions are living proof investigation of the situation in El Sal­ that American workers can effectively vador and find ourselves driven by such bring pressure to end the shameful traffic action as the only reasonable and humane in weapons which produces only profits to alternative•.. .corporate merchants of death and death to "We take this step in order to express Latin American workers."

Terrorism in Guatemala

The recent Amnesty International report* squads for the brutal murders of thousands on Guatemala is an unusually blunt indict­ of people and calls the murder and torture ment of the military government of Presi­ victims "criminals" and "subversives." AI, dent Romeo Lucas Garcia. It states that however, "believes that abuses attributed between January and November 1980 alone, by the Government ... to independent 'death "some 3,000 people described by government squads' are perpetrated by the regular representatives as 'subversives' and forces of the civil and military ser­ 'criminals• were either shot on the spot vices." More specifically, AI says the one in political assassinations or seized and responsible for these operations is Presi­ murdered later." Amnesty International dent Lucas himself. "The task of coordi­ (AI) leaves no doubt as to who is respon­ nating civil and military security opera­ sible for these killings: " .•• people who tions in the political sphere is carried oppose or are imagined to oppose the gov­ out by a specialized agency under the di­ ernment are systematically seized without rect supervision of President Lucas warrant, tortured and murdered ... these Garcia. This presidential agency is situ= tortures and murders are part of a delib­ ated in the Presidential Guard annex to erate and longstanding program of the Gua­ the National Palace,... and next to the temalan Government." Presidential Residence.•. Known until re­ The government has denied "making a sin­ cently as the Centro Regional de Telecom­ gle arrest or holding a single political municaciones (Regional Telecommunications prisoner." It blames independent death Centre), the agency is ••• a key installa­ *Copies of the full report, which was re­ tion in Guatemala's security network." A 1974 Agency for International Develop­ leased on February 18, 1981 may be ordered ment (AID) document, Termination Phase-Out from AI, 204 w. 58th St, New York, NY Study, Public Safety Project: Guatemala-- 10019. 10 - CounterSpy, May-July 1981

Approved For Release 2010/06/15: CIA-RDP90-00845R000100140007-5 Approved For Release 2010/06/15: CIA-RDP90-00845R000100140007-5 describes the Telecommunications Center as Security Council and Richard Allen, now "Guatemala's principal presidential level National Security Advisor, visited Guate­ security agency." AI concedes that "de­ mala in 1980; and, while still a candi­ tails of the presidential coordinating date, Reagan let the Guatemalan right agency's operation are not known ..• but know that, if elected, he would change that the agency exists and that it serves U.S. policy toward their country. as the centre of the Guatemalan Govern­ In the primitive Republican anti-Commu­ ment's program of 'disappearance' and po­ nist strategy Guatemala, with the largest litical murder seem ... difficult to dis­ army in Central America, is key, and pute." Reagan's all out support for the Guatema­ Under the Carter administration, mili­ lan military dictatorship is assured. The tary assistance to the Lucas regime was bloodshed will continue but has not been suspended - only to be taken up by Israel and will not be able to stop tpe opposi­ and other conservative governments, e.g. tion movement from growing. There is a Argentina. With Ronald Reagan in office, high level of unity between the different things look different. Reagan himself has opposition and guerrilla organizations, met with rightwing, wealthy Guatemalans and their activities have forced the army over the last few years. According to the to "intensify their troop m:>bilizations to Council on Hemispheric Affairs, represen­ points across the country and to be in a tatives of several rightwing groups in­ permanent state of alert ..• which has kept cluding Young Americans for Freedom, the them from intervening on a broader scale, Heritage Foundation and the American Con­ as they would have liked, against the peo­ servative Union, as well as Generals John ple of El Salvador." Singlaub and Daniel Graham of the American

Princeton's Psy-War

The following recommendations for a objective - which is probably why Cantril world-wide anti-Communist propaganda cam­ did not want his name attached to them.) paign (from the Allen Dulles papers at At a time when the Reagan administration Princeton University) were written almost has launched cold war tirades against So­ twenty years ago, but are of contemporary cialist countries and "international ter­ significance. They were drafted by covert rorism" (increased emphasis is also being CIA consultant Hadley Cantril, then an placed on the operations of the Voice of "eminent" social scientist and chairperson America, Radio Free Europe, and Radio Lib­ of the Psychology Department at the pres­ erty), it is as important as it was twenty tigious Princeton University. He sent the years ago to understand the nature of U.S. recommendations to former CIA Director propaganda operations. Allen Dulles on March 21, 1962, together with a short note. RECOMMENDATIONS CONCERNING U.S. INFORMA­ TION AND PROPAGANDA THEMES Dea:r> Allen, Enclosed a:r>e the recommendations I Note: While these recommendations mo:y not worked up some yea:r>s ago (after my be new and may have been heard before, if visit to the Soviet Union) and which they have any validity, it is essential might be of some use to you. Please that they be repeated and P6peated in ri­ do not bother to acknowledge. fle shot fashion. As ever, 1) 'lE1i_ to pound home to people everywhere, /signed/ especially those in uncommitted a:r>eas, the Hadley fact that the Communist Party � nations ------and states� the people who compose them (Despite their "scientific" source, the �· instruments Q£_ tools to carry out Party recommendations are neither scientific nor policies. In other words, the Party comes CounterSpy, May-July 1981 - 11

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first and is regarded as "everlasting," of world people want. Quite obviously, while nations, or states and their people such a statement must avoid platitudes. It are secondary and are to be organized and should be designed carefully to provide a reorganized according to Party goals. Ex­ moral basis for all our defense and eco­ amples of th� USSR itself, East Germany, nomic aid measures as well as for our do­ Hungary, China, Tibet, eta. mestic policies. All our information and 2) Make clear to people that the issue di­ propaganda could profit by being put in viding the people in developed areas is terms of our moral purposes since the ba­ not "COMMUNISM" Cor"SOCIALISM") versus sic values people are striving for are "CAPITALISM" put_ the dictatorship qf the similar, universal, and understandable. Communist Party versus demooraay. We We should be able to out-compete the So­ should be able to undercut the effective viet Union in teaching people in underde­ -- use Soviet leaders now make of the1 key vel_oped areas what to want what "pro­ words of "Communism," "Socialism, ' and gress" and "civilization" can and should "Capitalism" by pointing out how outworn, refer to; showing that an open society can old-fashioned, oversimplified and mis­ offer not only high standards of living leading these terms are if anyone takes an and security but a whole range and quality honest look at what is going on in differ­ of satisfactions impossible in a state •ent countries of the world. Many concrete where freedom and choice are taboo. examples should be given. 5)• Counteract· Soviet• • strategy• qf · · minimiz- In underdeveloped areas of the world the. ' OMM N 1.-ng th e s1.-m1.-l ant1.-es and max1,m1,z1,ng the problem is likewise not one of "C U ISM" differences between modern industrial versus "CAPITALISM" but the dictatorship states. They have many problems in common of the Communist Party versus the possi- and are likely to have more. Point out bility of national development in a free that the basic n_eeds of human beings are and open way. We should make clear that everywhere pretty much alike and that any the only real enemy of strong national nation or political system will in the leaders now guiding some underdeveloped long run survive only to the extent that areas is the Communist Party. (Certainly it fulfills all these needs - both physi­ these leaders are never going to be over- cal and psychological ("spiritual"). thrown by any non-existent "American" par- ty, eta.) 6) Compliment the Soviet people£!!. the ad- • vanaes they --.-.-- ., -- -- .;.;....;.,;...;.."""h'7 7 --7k 7 • • have made in their standard 9.f_ 7) Sho w,, that • w 1,1.,e S ov1.-et vead • ers t av 11 • 1.,1,v1,ng and on ga1,n1,ng somewhat more free- about ao-�nste7:ae, H!. rea�1,ty they seem 9.t _ 91. dom action as a result qf theirhard- to be afda1,d 1.-t. They obJeat to open sh[,s and sacrifices .. The sense of having sk1.-es an • to an open world. They do not 7 ' 7 77 7 1.,1,f te 1_.d-h t emsevves· out of long aentunes of avvOW the1,r peopve to • k now ab out d emoara- b aa=ard ness 1,s a source of grea t pr1,'d e t o . _ W1.- 8 ay, the� hem peop le 1.-n 'th �ont ro l .a nd them and we must never say anything that restnat1.-ons aonaern1,ng wh�t 1,nformat1.-on would injure this pride. On the contrary' they can have, what travel1,ng they can do, eta. By contrast, Western democracies are not at aU afraid of "co-existence," and Special offer on North America's ena.ourage their people to read anything they want to, to travel, eta., eta. # 1 independent radical newsweekly 4) We should not let Soviet leaders set the standards EJi..means qf which superiori­ FOUR ISSUES FREE El is to be judged. We should, on the con­ trary, quickly and forcefully take the initiative and t'Y'u get in the minds of Get the news-about the rrght wmg, 0 Yes, send four free issues to: - " to the ldt, the struggles oi Blacks. people everywhere what � regard as the Latino_s. women and gays. News of goals worth aompeting for. For example, l1bera11on movements around the world. Opmions from individuals and an in<.Jrease in standards of living alone group5 throughout !he progressive .Jddrt."5S movement. will never reconcile people11 to a permanent aondition of "unfreedom. Do somethmg ri>volutionary Chp the y ''"1•· Z!p coupon al rrght and start gi>ttmg the cit Ciipclndm..iii10Gu,ud1ctn,JJWest lithSr. In this aonneation, there is a para- G uardian today' mount need for some ideo logiaal statement New York.Ny II�)! l aonaerning our American vision of the kind 12 •- Counterspy, May-July 1981

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or restric-t by complimenting them in terms qi_� own goods further individual par­ standards, our own goals, and our otJn ways ticipation in decisions: of doing things, we could further build up 7) Intensify and expand all forms g_f_ �­ the U.S. as a model and help continue changes since there seems little doubt pressure for more consume� goods, more that we have much more to gain from these freedom of action, etc. in terms of influencing Soviet people than Indicate our sincere hope that the great Soviet leaders have to gain from what they strides the Soviet people have made in would learn from us. Dramatic proposals raising their standard of living and in­ (which we would expect Soviet leaders to creasing somewhat their otJn freedom of ac­ reject) might further bring their censor­ tion will continue and that their govern­ ship, controls, and fear of comparison in­ ment will not use recent events as an ex­ to bolder relief. cuse to cut back production of consumer

Washingtorl Post- Speaking for Whom? by John Kelly

(Ed. note: John Kelly is co-editor of if you could see fit to send us your com­ CounterSPJf__ magazine and the author of the ments on the editorial. Since we would forthcoming book, The £IAin Amel"ica.) like to follow up the editorial as quickly as possible, I would especially appreciate In 1949 Allen W. Dulles called for a it if you could send your comments by "commission of internal security" to in­ Western Union collect. vestigate "subversive influences" in the U.S. and to use "the institutions of de­ Sincerely mocracy to destroy them." Dulles' article, /signed/ appearing in the CIA-financed New Leader, Philip L. Graham did not define these subversive influences Publisher nor did it contain any factual evidence that they existed at all. That didn't seem Dulles responded quickly in a telegram to bother the Washington Post, which from his Wall Street office (see below). quickly took up the call-to-arms in a se­ He specified that the proposed commission ries of editorials beginning May 22, 1950. would in fact be a "federal agency" at the But even before the first editorial was level of, but distinct from, the FBI. Very printed, publisher Philip L. Graham ( a probably Dulles had the CIA in mind for former military intelligence officer and the job although he knew well that the close friend of the CIA's chief psycholog­ CIA's own charter prohibited internal se­ ical warfarer, Frank Wisner) and Post curity functions. 1 owner, Eugene Meyer sent Dulles a copy 5/23/50 and elicited his comments in an accompany- ---ing personal----- note. ------PHILIP L. GRAHAM, PUBLISHER - THE WASHINGTON POST May 21, 1950 WASHINGTON, D. C. REFERRING YOUR LETTER MAY 21 I THOROUGHLY Dear Mr. Dulles: AGREE THAT WE SHOULD HA VE A COMMISSION ON We are devoting our editorial page on NATIONAL SECURITY. IN FACT IN ADDRESSING Monday to the enclosed editorial, which we THE ANNUAL DINNER OF THE CANADIAN SOCIETY are also reprinting in advertisement form OVER A YEA:[? AGO ON JANUARY 28, 1949, I in New York, Philadelphia, Detroit, Chica­ SUGGESTED THAT WE SHOULD HAVE IN THE go and San Francisco. Because of the im­ UNITED STATES SOME'rHING COMPARABLE TO THE portance of the issues involved, Mr. Eu­ CANADIAN ROYAL COMMISSION WHICH DID SUCH gene Meyer and I will both be grateful AN OUTSTANDING JOB IN INVESTIGATING THE Counterspy, May-July 1981 - 13 Approved For Release 2010/06/15: CIA-RDP90-00845R000100140007-5 Approved For Release 2010/06/15: CIA-RDP90-00845R000100140007-5 ,

SOVIET SPY RING IN CANADA AND I ADDED THAT Plan's counterpart fun�s to finance early ''THE SUCCESS OF THE COMMISSION'S WORK CIA covert operations. ) POINTS TO THE DESIRABILITY OF HAVING The Post's proposed commission on na­ AVAILABILE !!ERE IN THE UNITED STATES A tional security was a draconian measure FEDERAL AGENCY WHICH WE MIGHT FOR CONVE­ which even President Harry Truman opposed NIENCE CALL "COMMISSION ON INTERNAL SECU­ as unconstitutional.3 Entitled "The Road RITY". * * * SUCH A COMMISSION COULD IN­ Back to America," the editorial did not VESTIGATE THE PRACTICES AND POLICIES OF oppose the on-going McCarthyite witch­ SOVIET COMMUNISM STEMMING FROM ABROAD BUT hunting per�, but called it inefficient OPERATING HERE AND FANNING OUT IN VARIOUS at getting •�the rats" in America. As the CHANNELS TO THREATEN OUR DEMOCRATIC INSTI­ Post put it: ."Witch-hunting thus amounts TUTIONS. IN FACT, IT COULD SHOW HOW THEY to doing the job of softening and weaken­ USE AND ABUSE THESE VERY INSTITUTIONS OF ing America for Russia .. � To go further: LIBERTY TO DESTROY LIBERTY." I Witch-hunting is weakening our front-line AS REGARDS PRECISE FORM OF YOUR SUGGES­ soldiers in the cold war." TION I FEEL THAT YOU HAVE SO EXPANDED THE The Post fully endorsed the cold war PROPOSED SCOPE OF THE WORK OF THE COMMIS­ both. abroad and at home. But speaking, as SION THAT ITS EFFECTIVENESS MIGHT BE IM­ it always does, from the perspective of PAIRED. PERSONALLY I THINK THE COMMISSION the corporate rich, the Post wanted the WOULD HAVE PLENTY TO DO IF THEY INVESTI­ cold war carried out with an eye to re­ GATED THE ,"4AJOR ASPECTS OF NATIONAL SECU­ pressing legitimate domestic dissent while RITY AND THE INTERNAL MENACE OF FIFTH COL­ expanding the military-industrial complex: UMNS AMD SUBVERSIVE PENETRATION WITHOUT "Witch-hunting will drive out of Govern­ 4LSO GOING INTO THE WHOLE RANGE OF CIVIL­ ment the very brains which alone can IAN DEFENSE, NEW WEAPONS AND ECONOMIC AID give us victory in the cold war ... TO OUR ALLIES. THE LATTER ARE ALL IMPOR­ William Allen White and Paul Hoffmann TANT QUESTIONS BUT EACH IS A MAJOR STUDY and Wall Street lawyers and Robert A. IN ITSELF. Taft .•• WHILE I JOIN WITH YOU IN DEF:PLY DF:PRE­ " .•• witch-hunting will defeat the pur­ CIATING AND REPUDIATING THE TACTICS WHICH ported purpose of witch-hunting ... the HAVE BEEN FOLLOWED IN BLACKENING REPUTA­ class bitterness stirred up by those ex­ TIONS WITHOUT EVIDENCE, I AM SURE YOU cesses still hurts our uhity .•• WILL APPRECIATE THAT MANY PEOPLE WHO FEEL AS I DO IN THIS RESPECT, NEVERTHELESS HAVE "It is essential that a 'commission on AN UNEASY FEELING THAT SUBVERSIVE INFLU­ national security' be created now to survey the major aspects of national se­ ENCES MAY HAVE BEEN A CONTRIBUTORY CAUSE curity - the internal menace of the OF SOME OF THE FAILURES OF FAR EASTERN POLICY AND THAT INCIDENTS SUCH ,AS THE fifth €olumn, civilian defense, develop­ ment of new weapons, the size and use of AMERASIA CASE DESERVE THE FULLEST INVESTI - military expenditures, economic restora­ GATION BY A COMPETENT AND IMPARTIAL COM­ MISSION SUCH AS YOU SUGGEST. tion of our friends and alli�s •.•" The editorial criticized Senator Joseph ONE FINAL WORD. ANY SUCH COMMISSION AS McCarthy because he was not one of them, PROPOSED SHOULD NOT ;INTERFERE IN ANY WAY and his witch-hunting was threatening U.S. WITH THE FBI AND SHOULD NOT HA VE OVERLAP­ PING FUNCTIONS WITH THE LATTER AS I FEEL corporate expansion by attacking allegedly communist government employees who were STRONGLY THAT THE FBI MERITS AND DESERVES promoting that expansion. As the Post edi­ OUR SUPPORT. torialized only three days earlier on May ALLEN DULLES 19, 1950: "For the McCarthy attempts could The Post featured most of Dulles' tele­ easily result ... in the paralysis of for­ gram along with one from General Lucius D. ·eign policy.. • From Paris to Rio de Janei­ Clay, on its May 25, 1950 front page. The ro, reports are coming in that the $Oli• Post, of course, did not acknowledge that darity of American influence in the cold Dulles' comments had been solicited in re­ war is being drastically undermined by the sponse to an advance copy of the editori­ efforts to find a scapegoat for past al. (Clay, a man with wide corporate con­ events." Praising the Post for its promo­ nections, was involved in the.Marshall tion of U.S. corporate expansion, Gen. Plan and illegally used some of the Clay described the editorial as an l'ap;.. proach to the correction of conditions 14 - CounterSpy, May-July 1981

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which tend to destroy the effectiveness1 of +950 was also the year that Wisner's depu­ our international position! 4 ty, Thomas Braden (who is often featured 'llle Post editorial was significantly in the Post and who considered Wisner "an timed only weeks after National Security authentic American hero") initiated the Council directive, NSC-68, written under CIA's International Organization Division the direction of Paul Nitze (from NSC which eventually fed CIA propaganda to member James Forrestal's investment bank­ some 30 U.S. newspapers, including the ing house of Dillon, Read). NSC-68 esca­ Post.5 lated the cold war by calling for rapid Fortunately for U.S. democracy, the expansion of foreign investm�nts, vast in­ Postts commission on national security creases in CIA covert operations (under never became a formal reality. Unfortu­ Frank Wisner) and orchestrating of public nately, for freedom of the press, Graham opinion in support of the cold war. NSC-68 and Meyer placed the Washington Post at claimed this was needed because: ''.A free the service of national security and an­ society is vulnerable in that it is easy ti-Communism as defined by the corporate for people to lapse into excesses - the rich and the CIA. To this end, Philip and excesses of a permanently open mind••• " later Katherine Graham hired a number of people with extensive ties to U.S. intel­ On September 14, 1948, Philip Graham, ligence agencies to work for the Post. at the request of Secretary of Defense They included Philip Geyelin, who was re­ James Forrestal, convened a private cently replaced as editorial page editor meeting of some 20 newpaper publishers but still writes frequent commentaries, at his Georgetown home (the former resi­ staff reporter Walter Pincus; Russell dence of William "Wild Bill" Donovan, Warren Howe, who is now retired but still once director of the OSS). A few months publishes occasional articles; and prior to this meeting, Forrestal had Nicholas de B. Katzepbach, a member of the launched CIA covert operations including Post's Board of Directors. propaganda operations in the U.S.As part_ of this operation, Forrestal had previ­ PHILIP GEYELIN ously asked many of the �ublishers and editors who came to Graham's on Septem­ Geyelin joined the CIA in 1951 while on ber 14 to secretly submit to formal gov­ leave of absence from the Wall Street ernment censorship - which they refused. Journal to which he returned after 11 Besides Forrestal, attending the meet­ months at the CIA.6 At the Journal, ing for the government were George C. Geyelin said he "frequently had the sort Marshall, Secretary of State; General of contacts with CIA officials that news Omar N. Bradley; Robert Lovett, Under­ people have with any other sources."? Dur­ secretary of State; and Charles E. ing this period, CIA memos, of which "Chip" Bohlen, Counselor of the State there are hundreds, described Geyelin as Department. The meeting was convened "to "a reliable source," a "CIA resource" and brief them (publishers and editors] on a "willing collaborator" who provided "in­ the Berlin crisis.•. ," but Forrestal al­ telligence" such as two "economic reports" so inquired whether those present would following his trip to Cuba in 1964.8 La­ support using the atomic bomb in the ter, Geyelin's book, Lyndon!!.:_ Johnson and event of war. Speaking for the "American the World, was published by the CIA's per­ people" those present gave "unanimous haps most favorite publisher, Frederick A. agreement... to the propriety of the use Praeger, who now publishes CIA-authored of the atomic bomb." That same year, the books through his Westview Press. Post editorialized in favor of the "ap­ Geyelin has always come to the defense pointment of a commission of leading of the CIA when it was under deserved citizen" (undoubtedly corporate execu­ criticism. One has to seriously question tives and Wall Street attorneys) to de­ the-integrity of the Post management for termine when the U.S. should use atomic assigning a former CIA employee as the weapons. Obviously, the Post owners be­ writer of editorials which do not even lieved that decisions potentially af­ carry his name. As even former Post om­ fecting the lives of hundreds of mil­ budsman Charles B. Seib once observed: lions of human beings should be examined "The CIA's stock-in-trade includes decep­ and made by a few wealthy Americans. tion and covert manipulation. It does the Counterspy, May-July 1981 - 15

Approved For Release 2010/06/15: CIA-RDP90-00845R000100140007-5 Approved For Release 2010/06/15: CIA-RDP90-00845R000100140007-5 nation's undercover dirty work. The press, about Ghana and Guinea. Pincus claims to on the other hand, has only one justifica­ have refused a permanent job with the CIA tion for its special status in this coun­ but three months later attended a politi­ try: its ability to inform the public ful­ cal meeting in New Delhi, India at the re­ ly and 'without bias or restraints .•• and quest of the CIA. Pincus further claims the twain can never meet.119 that "thereafter I left the international A specific example of Geyelin's fending youth world to others.11 14 for the CIA was his full page article in Like Geyelin, Pincus has subtly support­ the Post of May 21, 1978 when Congress was ed the CIA at crucial moments. His Post attempting to rid the press of the CIA. article on his CIA work came precisely-­ Geyelin said that he disagreed with Seib's when the CIA was criticized for its sub­ conclusion that "the twain can never meet" version of the National Student Associa­ and agreed with Rays. Cline that journal­ tion (NSA). Pincus' article presented ists and CIA a<;1ents "all are searching for these operations as if they were honorable nuggets of truth about the outside and as natural as rain. Along with Richar� world.1110 Geyelin opposed a specific law Harwood, he also published a major articie prohibiting CIA penetration of the press in the Post before former Post reporter , and said that instead the press should Carl Bernstein Is expose of the CIA Is pene­ just regulate itself. (He proposed this tration and manipulation of the press was after implying that the CIA had dishon�st­ even published. Pincus and Harwood down- ly manipulated him.) Geyelin warned: "In played Bernstein's article (whiqh they the course of preparing a comprehensive somehow received in advance) even though charter to govern the future of the CIA, Bernstein let Katherine Graham off the and in its zeal to restrict the freedom of hook, absolving her from any responsibili­ the agency to subvert the press, it seems ty for Post involvement with the CIA. As to me entirely possible that Congress Harwood and.Pincus concluded: "So there is could wind up making a law that would in considerable uncertainty as to the accura­ fact abridge· - or threaten to abridge - cy of Bernstein's claims and sweeping some part of the freedom of the press that conclusions.1115 Pincus, of course, was no the First Amendment was intended to pro­ where to be found when the vast majority tect.1111 In short, according to Geyelin, of Bernstein's claims were substantiated the First Amendment provides for the by others such as former New York Times press' opportunity to be approached for correspondent, Haicison E:-Salisbury. subversion by the CIA. Undoubtedly to 1 Geyelin s· relief, Congress passed no law RUSSELL WARREN HOWE restricting the CIA's use of the press. Russell w•. Howe recently posed the ques­ WALTER PINCUS tion: "What links between the press and the CIA are justifiable ?" He-answered: Pincus worked for the CIA's Independent "Obviously some are - and more were Research Service (IRS) beginning in 1959 once.1116 This was not a surprising re­ when he attended the International Youth sponse since Howe himself has said that in 1 11 Festival in Vienna. 2 He was one of the 1958 his "days as an asset had begun. 17 CIA-financed and trained delegates who He was referring to articles he wrote for spied on fellow Americans and disrupted the CIA proprietary Information Bulletin festival proceedings. Following the 1959 Ltd. which he knew at the time was funded trip, Pincus briefed the CIA, took a CIA by the Congress for Cultural Freedom.18 pledge of secrecy, and agreed to attend From 1958 through 1965, Howe produced some the 1960 youth festival in Accra, Gha­ 30 articles for the Bulletin and its suc­ na for the CIA. cessor, Forum Service. As Howe described Before leaving for Ghana, the CIA even them: "They were the•same sort of stories briefed Pincus on his fellow American•del­ that I I was writing for the Post's 'Out­ egat�s. Pincus was also made privy "in look section••• 1119 In 1966, Forum Service some detail to the extent to which the became Forum World Features (FWF), headed agency was operating in the field" and was 13 by CIA officer Robert Gene Gately, former­ asked to join the CIA. From Ghana, ly of Newsweek. In the same year, multi­ Pincus went to Guinea at the invitation of millionaire John H. Whitney, former pub­ the Guinean Youth Committee. Upon return­ lisher of the New York Herald Tribune and ing to the U.S., Pincus briefed the CIA - 16 CounterSpy� May-July 1981 Approved For Release 2010/06/15: CIA-RDP90-00845R000100140007-5 Approved For Release 2010/06/15: CIA-RDP90-00845R000100140007-5 part-owner of the International Herald to the "40 Committee") which lent an air Tribune bought FWF.20 In 1967, the Con­ of legality to CIA covert operations gress for Cultural Freedom was exposed as through rubber-stamp approval. 28 a CIA front and Whitney as a CIA collabo­ Katzenbach, who has stated that no mat­ rator. By then, FWF had become, in the ter what they did in the past, the CIA and words of Howe, "the principal CIA media the FBI are the "most decent and effec­ effort in the world." �l tive" intelligence agencies in the Howe continued to write for FWF, al­ world, 29 was also involved in the FBI's though he had read Ramparts magazine's ex­ operations against Martin Luther King,Jr. pose of CCF's CIA funding. "The thought According to the Church Committee, "the itself never occurred" to him, says Howe, sustained use of such tactics by the FBI to ask Whitney about his CIA connec­ as an attempt to destroy Martin Luther tions. 22 In 1968, when Howe was still King, Jr. violated the law and fundamen­ writing for both the Post and FWF, Whitney tal human decency ..• Thene is no question got the Post to agree�purchase FWF that officials in the White House and stories.'23'iccording to the Church Commit­ Justice Department, including President tee, the Post - along with some four other Johnson and Attorney General Katzenbach, major daily U.S. newspapers - was told knew that the Bureau was taking steps to that FWF was "CIA controlled. ,,24 This discredit Dr. King ••• " 30 "Knew", indeed. means that the Post consciously chose to Katzenbach had told then FBI Director, J. publish CIA propaganda and knew that one Edgar Hoover that the FBI could undertake of its full time reporters, Howe, worked various wiretapping operations and come for a CIA proprietary. Howe ultimately to Katzenbach afterwards for his approv­ wrote some 250 articles for FWF as well as al. The Church Committee produced three for the CIA-funded Africa Report and Sur­ such memos signed by Katzenbach. vey. (Even before FWF, he had been the French correspondent for Business Interna­ KATHERINE GRAHAM tional whose founder Eldridge Haynes al­ lowed the CIA to use the magazine as a Earlier this year, Post publisher cover.) Incredibly, Howe claims that: "I Katherine Graham hosted a dinner party at was apparently what was known as an unwit­ her house for Ronald Reagan and some mem­ 11 ting as set. 25 bers of his cabinet, including CIA Direc­ tor William Casey. Even before he was -----NICHOLAS --DE B.-- KATZENBACH President, candidate Reagan had been fet­ ed at a Post luncheon where he reportedly Katherine Graham is said to have invited "impressed" Post executive editor Benja­ Nicholas de B. Katzenbach to join the min Bradlee. board of directors of the Washington Post; Katherine Graham has been a member of an invitation· which he accepted. Katzen­ the Council on Foreign Relations (CFR) bach is still on the board despite revela­ which acts as an interface between the tions in the Post itself that, as U.S. corporate rich, the CIA, and their apolo­ Deputy Attorney General, he called James gists. Then-CIA Director William Colby Russell Wiggins, then Post editorial page highlighted this relationship in a report editor, and asked him to alter an up-com­ on CIA domestic operations to the CFR be­ 26 ing Post editorial. It is also well fore his report to Congress. known that Katzenbach neutralized the 1967 Graham, who hired the CIA-involved exposes of the CIA's illegal domestic op­ Wackenhut Security Corporation during the erations. Again, the Post itself reported Post's union busting operations, wrote the that Katzenbach met secretly with then­ following note to fellow CFR member and President of the National Student Associa­ former CIA Director Allen Dulles after he tion (NSA), Eugene Groves, a CIA collabo­ had been fired for the CIA's illegal inva­ rator, to develop a strategy to minimize sion of the Bay of Pigs, Cuba. Dulles, at the up-coming expose" about the CIA/NSA op­ 2 the time, was an object of worldwide crit­ erations. 7 Ka:tzenbach then chaired the icism for his many CIA crimes including presidential panel which "investigated" his sabotaging of the integrity of the the CIA/NSA and other domestic operations. press. Worse yet, Katzenbach at the time was a member of the "303 Committee" (predecessor CounterSpy, May-July 1981 - 1?

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3 2920 R Street extreme right in El Salvador. �) Despite Washington 7, D.C. the bloody history of the CIA's police programs and their widespread atrocities Wednesday in Vietnam, the Post editorial, a la Dear Allen and Clover, Ronald Reaqan. savs"°the qovernment should I have thought of you so many times ''In due aourse I learned, by means of sinae last spring and never had the wits disareet inquiry, that the PoatJ Zike to write what I was thinking. So I wanted other major news media, maintained to take the ahanae of your formal resigna- 'aontaats' with the CIA in order to re­ tion to tell you how marvelous and admira- aeive 'guidanae' on 'sensitive' ble you both have been always and espe- stories. " aially reaently. Former Post reporter, Erwin Knoll We all know that Allen has done suah The Progressive, May 1979 wonderful things for the aountry for so not b e h e ld b ac k b y th e ,, tiger, cage syn- many years. And it must seem suah agony to drome." seem so unapprecnated now. I think publia With the likes of General Haig bombard- things are often temporarily unjuSt but ing the country with cold war propaganda, that in the long run the people will un- this is a time of great need for an inde­ derstand and be grateful for suah unaeas- an pendent, truthful press. The people in ing and brilli t devotion. the U.S. will never receive the whole We both send our love and hopes that truth, except coincidentially, as long as an we'll see you very soon d often. there is a CIA-press connection. Even long Kay -time CIA collaborator, Harrison E. Salis------bury recently stated: "Once again - as it Katherine Graham and Allen Dulles had a had happened so often and was to happen so friend in common; the late Shah of Iran frequently - it was that the CIA whose ambassador used to send them both the truth feared above all things, truth was what · free gifts such as caviar. Graham paid a was so 'f rig• htening • , in • the A gency , s personal "solidarity" visit to the deposed words, ..• its men felt, the truth must be Shah in his final hideaway in Egypt. avoided at all cost."3 5 Graham later told a gathering of Post The Post management sh ould follow the workers that her visit with the ei='s"hah example of some of its rank-and-file work- was one of the highlights of her Middle ers who ejected the CIA from the Newspaper East trip. She said the Shah was a "sad Guild in 1967 and have successfully con- and lonely" man surrounded by an "ai: °f '31 tinued to resist all attempts {led by pathos" and deserted by his friends. Charies Perlik) to allow the CIA to use the Guild for its international programs. EDITORIAL POLICY The Guild's actions show it can be done, Meg Greenfield, who'recently replaced and until it is done by newspapers such Philip Geyelin as Post editorial page edi­ as the Washington Post, we will not have tor, accompanied Graham on her Middle East a f:tee press. trip. Greenfield had served for many years as Geyelin's deputy after having worked FOOTNOTES for eleven years for Reporter magazine un­ 1) Eugene Meyer, a multimillionaire who also championed der executive editor Philip Horton, the the expansion of U.S. foreign investments later became CIA's first chief of station in Paris.32 the first president of the World Bank. 'lhe Bank under­ wrote the vast expansion of U.S. corporate foreign in­ Recently, in an editorial, "Can We Help vestments with taxpayers' money. Uganda?, 11 33 ·the Post called for the resur­ 2) Fred Hirsch and Richard Fletcher, CIA and the Labour rection of the CIA's International Police Movement, Spokesman Books, Nottingham-;-i'nglan�l977, p. 69. Clay at the time headed the U.S. Military Government Academy {IPA) which Congress closed in in West Germany. His use of counterpart funds was ille­ 1974 in outrage at its activities. Specif­ gal since by law they should have been repatriated to ically, the editorial called for resuming the u.s. 3) Truman, however, did support the repressive loyalty the training of police in Uganda, the very oath programs conducted by the Alllerican Federation of country in which the CIA had trained and La»er and the CIA-financed National Education Associ- equipped the police assassins and tortur­ ation against law-abiding teachers across the country. 4) Washington� (WP), 5/25/50, p.l ers of Idi Amin. (IPA graduates also in­ 5) Saturday Evening�, 5/20/67, p.121 �, May 78, clude Roberto d'Abuisson, leader of the p.26. 18 - CounterSpy, May-July 1981

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6) WP, 5/21/78, p.B-2. 21) ibid., p.24. 7) ibid. 22) ibid., p.25. 8) ibid.; Harrison E. Salisbury, Without � � �• 23) ibid., p.26. Times Books, New York, 1980, p.572. 24) ibid. 9) WP, 5/21/78, p.B-2. 25) ibid., pp.21,26. lO)"°'"Tbid. 26) WP, 12/8/77, p.A-3. 11) .ibid. 27) WP, 3/9/67; New York Post, 3/9/67, p.P-2. 12) WP, 2/17/67, pp.A-1, A-5. In a published account of 28) washington --staJ?, 5/8/--::;s:- the festival disruptions, Pincus and Philip M. Cronin 29) ibid. were commended for their effective approach in disrupt­ 30) Final Report of the Select Committee� Study Gov­ ing the "Meeting of Young Journalists" seminar. They errunent Operations with Respect to Intelligence�­ were cited by their fellow participant, Cliff Thompson encies, "Intelligence Activities and the Rights of (The Harvard Crimson, 10/14/59, p.6). Americans," Book II, U.S. Senate, Washington, D.C., 13)ibid. 4/26/76, pp.211, 275. 14) WP� 9/18/77, pp.B-1, B-4. Richard Harwood wrote a 31) Shop Talk (published by the Communications Depart­ numbu of sign:tficant CIA expose's until he became � ment of the Post), vol.5, no.26, 6/26/80, p.2. deputy managing editor. 32) R. HarrisSmith, OSS: The Secret History of Ameri­ 15) ibid., p.B-4. ca's First Central Intelligence Agency, University of 16) More, May 78, p.27. California Press, Berkeley, 1972, p.209. 17) ibid., p.22. 33) As printed in: International Herald Tribune, 18) ibid. 9/27-28/80. 19) ibid. 34) WP, 3/9/81, p.A-19. 20) ibid., p.23. 35) cf supra, #8, p.521.

Secret World Bank Plan for Indonesia by Joel Lacamora

(Ed. note: Joel Lacamora is an Associate been Indonesia's biggest development do­ of the South East Asia Resource Center and nor, and the amount of the 16ans funnelled an Indonesia specialist.) to Suharto - over $4 billion - is greater In a highly contidential study recently than that received by any other Southeast obtained by Counterspy and the Southeast Asian country. Its creditor role has Asia Resource Center, the World Bank warns translated into enormous programmatic de­ the Suharto government of what it pre­ cision-making power, exercised through ceives to be a nationalist drift in cur­ front-groups such as the notorious "Berke­ rent economic policy and prescribes dras­ ley Mafia" of West Coast-educated techno­ tic measures to facilitate the entry of crats who laid the economic foundations of foreign capital. These steps, the Bank Indonesia's "New Order" after the CIA­ asserts, would constitute "strong medicine backed coup that toppled Sukarno and ini­ for the Indonesian economy••• 111 The secret tiated a reign of terror that took at least 600,000 lives (see Counterspy, Oct.­ document also highlights the conflicts be­ Dec. 1979). tween U.S. and Japanese investments in In­ donesia and illustrates that the World RETURN TO THE GOLDEN AGE Bank is, in fact, siding with U.S. capital------in this clash. In the 600-page secret document titled Together with the International Monetary "Selected Issues of Industrial Development Fund (I.l'i.F), the World Bank has played a and Trade Strategy," a Bank mission that strong directive role in shaping the eco- visited Indonesia in 1979 warns the Indo­ nomic policies of the Suharto regime. The nesians that they must return to the Bank was key in fo:i::ndng the Inter-Govern- "Golden Age" characterized by the virtual­ mental Group of Indonesia (IGGI) in 1967, ly unrestricted entry of foreign capital consisting of itself, the IMF, and 13 that prevailed between 1967 and 1974. "The creditor nations, which eased the condi- view that privat� foreign investment could tions of repayment for the debts incurred play a leading role in the development by the previous nationalist Sukarno gov- process is underlyed by the highly fa­ ernment in return for an "open-door" poli- vorable incentives and guarantees to for­ cy toward foreign capital.2 The Bank has eign investors ••. was dominant for only a Counte�Spy, May-July 1981 - 19

Approved For Release 2010/06/15: CIA-RDP90-00845R000100140007-5 Approved For Release 2010/06/15: CIA-RDP90-00845R000100140007-5 relatively brief period after 1967," be­ DECLINE ----IN NEW INVESTMENT moans the report. "A series of policy de­ Despite the currently strong position of cisions in the mid-1970's si gnificantly foreign investors, the Bank is worried qualified the 'open door' policy. The most about the future. Compared to the period important of these were requirements for 1970 to 1974, it points out, the inflow of greater and more rapid increases in local new approved investment fell by 34 per­ participation in ownership; greater con­ cent. Excluding investment going to the trols on investment including the closing huge Asahan aluminum smelter project, the of significant areas to private foreign decline was even sharper at 77 percent. investment; prohibition on foreign firms "Many businessmen indicated to the Mis­ engaging in any distribution activities s�-v 1 that were it not for the regulatory (even for their own products); require­ environment, the cost of producing manu­ ments for more rapid promotion of Indone- factured goods in Indonesia could be the sians to high skilled and managerial posi­ lowest in Southeast Asia," the Bank in­ tions; and renegotiations of terms affect­ forms the government. It continues: "De­ ing foreign investment in the natural re­ spite re�ent restrictions, foreign inves- source-based industries." tors still believe that Indonesia with its The Bank does not mention that the key large population as potential customers policy changes it identifies constituted a makes it an attractive place for long-term defensive response on the part of the investment, but there is less unanimity as Suharto government to the mass nationalist to whether it will remain so if current sentiment which exploded during the anti­ trends continue." It then tells the gov­ Japanese riots of January 1974, while ernment that "the incentives for these then Prime Minister Kakwei Tanaka was vis­ firms to locate there rather than in some iting Indonesia. other Southeast Asian country ••. must be provided." THE PROFILE OF FOREIGN INVESTMENT A constant concern in the report is the institution of illegal payments "which are Between 1967 and 1979, approved foreign the most effective way to expedite af- investment came to $7 .1 billion. Imple­ . fairs • " Special concern is evinced over mented or realized investment totalled the inability of U.S. firms to compete in $3.4 billion, $2.2 billion or 65 percent this area because they are severely re­ of which went into the rapidly growing stricted from making illegal payments by manufacturing sector. Among investors, Ja­ U.S. law. It notes, however, that to get pan was clearly in the lead, accounting around the law, American firms have re­ for $2.5 billion or almost 36 percent, sorted to "expediters" or "forwarding followed by the u.s., with $800 million agents". An interesting example is pro­ or 11 percent. Indicative of the strong vided by the Bank: position that foreign investors have "One manager of an American firm com­ gained in the_ economy is that they now plained of the time and effort required outstrip state enterprises in total manu­ on his part merely for the identifica­ facturing output, 21 to 20 percent. For­ tion of the tariff classifications of eign firms today dominate such sectors as imported items and for assessment of the beverages, leather footwear, derivative applicable rate of duty. As manager of chemical products, glass and glass prod­ an American firm, he is unable to use ucts, non-ferrous metal, and electrical illegal payments to speed up the clear­ machinery. Measured in terms of output per ing time and to have the applicable firm, foreign firms are, on average, more 4uties on his imports reduced. His in­ than twice as large as state firms and ability to produce in Indonesia on equal more than seven times as large as domestic terms with his competitors has been par­ firms. Their productive capacity does not, ticularly frustrating to him as most of however, match their employment capabili­ th� have been paying only 30 percent of ty, since they account for only one-tenth the duties and tax for the majority of of the 683,000 people employed in manu­ the inputs they all import, .• inclusive facturing. illegal payments. Consequently, he has heen using expedLters to deal with cus­ toms. The expediters serve more than a single purpose for this manager. First, 20 - CounterSpy, May-July 1981

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they pay on his behalf, certain kinds of individuals." bribes, for example, to reduce the 5. Foreign firms should be allowed ac­ clearance time. Second, as the forward- cess to domestic credit. To justify what ing agents are well-connected with high- is certain to be one of its most contro­ ranking Indonesians, they serve as this versial proposals, the Bank says that "in manager's contacts with powerful Indone- a country like Indonesia where the cen- sians." tral problem is the efficient use rather than the mobilization of resources, there RADICAL RESTRUCTURING is little justification for imposing re­ strictions on financing that limit the The Bank's solution to what it sees as process of private foreign investment." an increasingly unfavorable investment climate is nothing less than a radical re- RETURN TO LAISSEZ-FAIRE structuring of industry through a "compre- hensive program of deregulation and elimi­ These drastic prescriptions for foreign nation of market interventions." Among the investment are part of a "liberalization proposals that immediately affect foreign package" that the Bank hopes will estab-. investment, are the following: lish "a close approximation of free 1. "The DSP (investment priorities list) trade." The abolishment of the quantita­ system should••• be significantly amended tive import restrictions as well as pro­ and no prohibition be placed on any prop­ tective tariffs that shelter Indonesian erly registered .•• foreign firm from en­ firms from multinational competition is tering or expanding any business activity strongly recommended. This is, of course, producing legal co:mm:>dities or services." what is popularly known as the "Chilean 2. Exploitation of natural resources Solution," after Chilean dictator like copper, tin and timber, which is cur­ Pinochet's radical dismantling of pro­ rently curbed , should be opened up to for­ tective tariffs after the military coup of eign investors. "The interest of society, 1973. What the Bank doesn't mention are at large, as opposed to particular indi­ the costs of such politics. In the case of viduals with ownership rights in particu­ Chile, for example, a recent study by the lar firms," says the Bank, "is to have widely respected Chilean economist Ricardo these resources managed in the most effi­ Frsnch Davis asserts that the tariff re- cient way so as to obtain the highest re­ form imposed by Pinochet's "Chicago Boys" turns possible in terms of the resources has led to the bankruptcy of almost 1,600 generated through royalties or taxes on Chilean companies and to. a condition of firms to exploit these resources." industrial stagnation that has, so far, 3. Restrictions on the use of foreign cost the country about $8.5 billion.3 workers should be relaxed. Indeed, the Being even less secure than Chile's rela­ Bank advocates "a clear policy of unre­ tively more established and mamre entre­ stricted access to high-level personnel preneurial class, Indonesia's struggling from abroad••• " Even restrictions on lower local bourgeoisie would likely experience -level foreign personnel should be relax�.d a disaster of greater magnitude if liber­ on the following grounds: "While foreign alization were to take place. firms may rely on foreign workers to fill high-level positions, this cost tends to EXPORT-LED INDUSTRIALIZATION be offset by relatively greater expendi- In addition to tbe free flow of foreign ture on training local workers at lower" investment and trade liberalization, the levels." Bank proposes as the third major prong of 4. Restrictions on ownership, such as . . . • · , , . its strategy of industrial reform the re- the provision tha t 51 percen t o f a f.irm .s ...... · orientation of industry from "import sub- equity must pass to Indonesian hands after . · st' i t ut' ion " to pro d uct' ion f or export . I no d - . number of years, should be re- . • a specified . . :nesia mus t specia. 1. ize in th e pro d uc t'ion laxed, partly because ,, foreign firms that . • . · . . and expor t o flabor intensive 1.ig ht manu- are protecting production or managerial . factures, says the B an k , w hic h is • in . not . est . areas where sec:ets will in":' in . its "comparative advantage" to do because their control of this knowledge 1.s threat- · . • . . . it is " we11 -en d owed" wi th uns k'lli e d lab or. ened by forcing controlling ownership · P rod uct' ion f or the d omes t'ic markte must shares to be transferred to local firms. or CounterSpy, May-July 1981 - 21

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be downgraded in the process. 'l'he Bank minished growth rate in the OECD countries provides the following rationale for this: translates very quickly into reduced de­ "·••. the domestic market in Indonesia is, mand for those developing nations' ex­ at present, small in terms of purchasing ports, leading in turn to a reduced capac­ power ••. and is unlikely to support a ity to import, and hence to lower rates of high growth rate in the manufacturing sec­ growth. 114 McNamara's fears have become tor. Indonesia must, therefore, become reality. Indonesia, the Bank itself notes, xoore outward-looking than it is at pre­ has recently been hit by quotas imposed by sent." the European Economic Community on its Again, what the Bank conveniently avoids textile exports to the United Kingdom in mentioning are the costs of its prescrip 1980. tion. In most areas where it has been ad­ That foreign multinationals will be at opted as the path to industrial growth, the vanguard of "export-led industrial­ "export-led industrialization" j_s nmning ization" is hardly concealed by the Bank. into severe problems. In the late ;_,ixties It is precisely those labor-intensive and seventies, under the strong advice of sectors, such as textiles, leather foot­ the World Bank, countries like Bra::il, wear, and wood products, in which foreign South Korea, and the PhilippincE, turned firms have gained a strong, if not com­ away from "import-substitution industrial­ manding position that should be encour­ ization," which had been blocked from aged to go into export promotion. More­ further advance by the limits of the in­ over, the Bank proposes the establishment ternal market.. The solution was clear: the of "export-processing zones" similar to market could only be enlarged by the re­ those now existing in South Korea, Hong distribution of income. Such a solution Kong and the Philippines. These are areas would, however, have necessitated a social where multinationals can have access to revolution that would have swept away the World Bank together with foreign interests The secret World Bank documents on Indo- and local privileged groups in these nesia (as well as those on the Philip• countries. Concentrating on producing la- pines - see the latest issue of Counter- bor-intensive light manufactures for the Spy) clearly illustrate that the Bank's markets of advanced industrial countries primary task is the pr9motion of U .s. appeared to provide a way to foster indus- corporate interests in Third World coun­ i trial growth without having to redistrib- tr es and not, as the Bank likes to say, ute income. This benefit, however, has now assiStance to poor countries. This was proven to be illusory, since economic even acknowledged by a high ranking Bank stagnation and a wave of protectionism in official in a recent interview. He said the advanced capitalist com1t.riP.s are rap- confidentially that the Bank recently idly reducing opportunities for light man- initiated a major study on how to "re­ ufactures from the Third World and forcing orient itself by 180 degrees back to the the various "export platforms" into cut- point of assiSting the poor of the throat competition with one anot!1er. world." The study is being conducted by William scher The perils of export-led growth were, ir. A - the very person who had fact, articulated by World Bank President drafted the secret World Bank document on Robert McNamara himself in 1974, at the the means of continuing and expanding same time th·at he was proclaiming it "the exploitation through Bank programs in wave of the future" for the developing the Philippines. Ascher is working at the World world: "The adverse effect on the develop- Bank under a Council on For­ eign Relations (CFR) ing countries of ... a reduction in eco- pro bono publico grant nomic growth in their major markets would which - bless his heart - pays him $l a year· be great. There is a strong - almost one- The Council, toget:1'er with the CI , played a 1965 to-one - relationship between changes in A major role in the military the growth rate of the OECD rorganization coup in Ind0nesia that left � over half a million fer Economic Cooperation and Development] dead. It will be in- tereSting countries and that of the oil-importing to read (if they are not clas- sified) William nations. This is not surprising. Exports Ascher's recommendations for serving to OECD countries constitute 75 percent of the world's poor and the public cod. the total exports o� those nations. A di------� 22 - Counterspy, May-July 1981

Approved For Release 2010/06/15: CIA-RDP90-00845R000100140007-5 Approved For Release 2010/06/15: CIA-RDP90-00845R000100140007-5 cheap labor without the burden of import U.S. and Japanese capital for control of or export taxes. "The benefits to firms," the biggest national market in what is now says the Bank, "would arise from the low regarded as the world's premier economic cost of available labor, the proposed in­ growth area, Southeast Asia. frastructure and plant facilities, and the visible assurance to domestic and FOOTNOTES foreign investors that they will be free to export and import without any institu­ tional constraints ... " 1) Unless otherwise indicated, all quotations are from the World Bank document, Selected Issues of Industrial Development ��Strategy, October 2g,"" 1980. WESTERN VS. JAPANESE CAPITAL 2) Pacific Asia Resource Center, "Japanese Transna­ tional Enterprises in Indonesia", AMPO, vol.12 no.4, Though seemingly directed towards pro­ 1980, p.4. This excellent resourceprovides a compre­ hensive look at Japanese investment in Indonesia. moting foreign capital as a whole, the 3) Elizabeth Fransworth and Stephen Talbot, "Dis­ document is actually expressing the view­ patches", The Nation, Jan.31, 1981, p.103. point of U.S. and other Western firms in 4) Robert McN� Address to Board of Governors, 1974, Washington, D.C., 1974,p.U:-- - their competition with Japanese capital. This is obliquely confirmed by one member of the mission, who informed the Southeast Asia Resource Center that, "most managers interviewed were either American or Eu­ CONTEMPORARY ropean. Japanese interviewed tended to be less forthright and often tended to ex­ MARXISM press a positive view toward the foreign investment regime." Contemporary \larxism. lhl new j11urn.il 111 the lnsutulc l,,r the Stud� 111" L..1h,,r .rnU Etonum1c Cri3b, .rnjh1n Lrtll 1Jl 1�suc.:� IJ1..1n� Japanese firms have gained an overwhelm­ the ,i,u..1.li:it ..111d worker:,' ITIO\l'llll'lll:, 1d th'-· w11rld lrrHn J work1n� ing foothold in Indonesia because of their cbss \.l.u,1st pt.:r'lµt:1..tJ\L' 'lllpportl'1 th,·,.. I( 1.d1,t ind\\, •r k1. r,' 1 mestic Indonesian ownership, through long­ mo, l'!TH'flt, 111 ,1d, ,till cc!, ,1p1t.d1.,l 1, •untric,. /-1i!l-ll :1!!• .. i ,8,u term management or supply contracts." 1981, On .\1arx1sm and Christianity Local partners, the report states, are On Prl1letanani:al1l1n and Class Stru�gle in Africa drawn from a narrow circle of high-income l'1,,1n r.vd: Ih, l·111!ul '.\,llii111, ,111d l'11)hl 1..·11,-., ,t \\.,1ld (,,,,, :11m1._·11t groups. "A study of ownership patterns in SUBSCRIBE NOW Indonesian industry shows that several Published t·.\·ice \e.uh :-,ubscr1pt1ons I •,eJ.r SK.00 •1nd1\1duJisl Si8 00 hundred of the largest industrial concerns ·mslltuuonsl. \Jd S::'.00 f(,r mJ1hnw; outside l' S. ,1r !i.00 f,)r \JHUUS ..mm,ul. Sin.,zie C1p1n: S·"1 00. are partially owned by high-level Govern­ \fake c:iuks pa-.able in �\''.'\Tilt.SIS t'l Hl.iC \ fl< l\S, ment officials or their immediate fami­ ? ()_ Box -in()9Q, llepl. 39. ",,rn tranc1srr>. t...1l11or'11.1 94140 lies." Rather than encouraging these Indo­ nesians to make careers in business, joint GRITTY WORKING CLASS QUARTERLY MAGAZINE ventures, concludes the Bank, push them OUT OF PITTSBURG, PA. - THE MILL HUNK into "devel.op�g their connections and HERALD - LOOKING FOR CREATIVE WRITERS maximizing their0 returns as front men." AND CHEAP SUBSCRIBERS ($3.00 A YEAR), Seen in this light, the World Bank re­ 916 MIDDLE STREET, PITTSBURG, PA. 15212 port on Indonesia represents a significant move in the sharpening conflict between Counterspy, May-July 1981 - 23

Approved For Release 2010/06/15: CIA-RDP90-00845R000100140007-5 Approved For Release 2010/06/15: CIA-RDP90-00845R000100140007-5 Afghanistan: Foreign Intervention anathe Prospects· for Peace by Mohammed,Sar� and Seamus O Faolain

(Ed. note: Mohammed Sarkash and Seamus 1973. Most foreign governments and groups 0 'Faol,ain are pseudonyms for an Afghan and who have sent aid to the rebels, under­ a U.S. writer, respectively.) stand these weaknesses and the futility, in military terms, of their support. Their From its beginning in April 1978, the assistance is not motivated by military Afghan revolution has been under heavy at­ goal� but rather by political ones. In the tack from two circles. First, conservative propaganda war against the Soviet Union, Western regimes - newly alarmed by the up­ the United States and its Middle East heavals in·Iran - were awakened to the re­ allies reap tremendous political capital ality that revolutionary nnvements were from keeping Soviet troops in Afghanistan. gaining strength in other countries of the Some see� •letermined to continue doing so, region. Second, reactionary and privileged even if it means fighting to the last Af­ forces (especially the landowners) within ghan. Afghanistan ware stirred into reaction. At the current level of fighting, how­ The circle of Afghan reaction found sup­ ever, "the last Afghan" still has quite a port in conservative Western circles, and while to go. Even Drew Middleton of the the two circles quickly became concentric New York Times, with his rebel Afghan news (with the Afghan revolution the common sources, ventured the estimate that "no center of their offensive). Counterspy more than 1,000 rebels are in contact with has analyzed the evolution of external op­ the Soviet forces at one time on any day position to the Afghan government. (See and their effectiveness is limited." 1 Two Oct.-Dec.,79� Jan.-March 80� and April­ Westerners who travelled in Afghanistan in June 80.) The purpose of this article is late 1980 (Fred Halliday and Gerard to examine the combined impact of these Challiand)2 reported that the main Afghan external and internal forces on the revo­ towns are secured against any serious reb­ lution and the prospects for peace. el threat, with military cordons estab­ lished around them. Significantly, the THE FACES OF WAR rebels' major victories emerge in non-mil- Of the literally dozens of rebel group- itary arenas, as Halliday reports: "over ings clamoring for recognition, only the one hundred schools have been destroyed in six headquartered in Peshawar, Pakistan Herat province alone, and present diplo- have succeeded in receiving sizable exter- matic sources confirm that around half of nal assistance and in infiltrating sub- ·all the educational and medical facilities stantial quantities of arms and trained in the Afghan countryside have been de- fighters into Afghanistan. While the focus stroyed by the rebels this year." Soviet of this article will be on these groups - casualties are also systematically trumped their roots, goals, and external support -up by rebel sources and even Challiand, from Egypt, Saudi Arabia, Kuwait, oman, who was travelling with the rebels, admit- the U.s., China and Western Europe - men- ted: "Contrary to periodic reports from tion will also be made of smaller opera- 'diplomatic sources' (usually in New tions by Iran and other countries. Delhi), the Soviets have suffered remark- Careful study of the six major Peshawar ably few casualties in the year since the groupings reveals that these groups stand invasion." no chance of victory, nor of significant, The Pakistani-based rebels actually com- unified popular support due to their divi- prise only a very narrow sliver of the sions, extreme fundamentalist positions million-plus Afghan refugees. Another re- (even in the eyes of some of their sup- cent visitor to Afgh�nistan, reporting for porters) and lack. of logistical sophisti- the Boston Globe, estimated from his ob­ cation. Their prestige is further weak- servations of thriving black markets and ened by the fact that at least two of the knowledge of embezzled refugee aid that over half of the refugees were "economic six were initially created and financed 3 entirely by external forces as early as opportunists": 24 - CounterSpy, May-�uly 1981

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"In a 500-mile journey from inside Af­ tier Province of Pakistan and also as a ghanistan through Baluchistan and the pressure ploy to force the Afghan govern­ frontier, most fellow passengers were ment to recognize a British-drawn border Afghan refugees. But they did not have (known as the Durand line) that was advan- any tales to tell of Soviet bombings or tageous to Pakistan as the official border fierce resistance in the hills. They between the two countries. simply wanted to seek a new life in Pa­ These rebels were subsequently used kistan. At the border town of Qamruddin quite effectively to Pakistan's advantage. Karez in Baluch.istan, local government In July 1975, the 5,000 man force, under officials were openly skeptical of guer­ Hekmatyar's command, was infiltrated into rilla war efforts and dismissed most of the Panjsher valley north of Kabul for a the refugees as economic opportunists." major battle against Afghan government Dotted through the opportunists and black forces. The battle was effective in push­ marketeers, at uneven intervals, are ing Afghanistan onto the defensive in the training camps of predominantly Sunni, ensuing negotiations. While the Pakistani Pashto-speakin9 rebels from the eastern government denied any connection with the Afghan provinces, loyal to one of the fol­ incident at the time, former high offi­ lowing six leaders. cials in the Bhutto government have re­ cently admitted their involvement.4 Even ISLAMIC PARTY OF GULBUDDIN HEKMATYAR after Bhutto was overthrown by General Zia Hekmatyar is con,sidered the most uncom­ ul-Haq in July 1977, Pakistan continued promising and fundamentalist of the rebel to supply Hekmatyar with training facili­ leaders. While a student in the engineer­ ties, such as a camp at Warsack, as well ing faculty of the University of Kabul, he as the right to run his own prisons and belonged to the Jawanan-i-Musalman (Mili­ ,military tribunals. tant Muslim Youth), a group with close Hekmatyar's Islamic Party has proclaimed links to the pan-Islamic Muslim Brother­ a detailed set of goals, which clearly hood. He was known for his attacks on fe­ identify it as the most obscurantist and male education and was arrested in the "anti-progressive" of the rebel groups.The early 1970s for assassinating a progres­ first principle of the party is explicit si ve Afghan student. Gaining notoriety in this respect: "Afghanistan is an exclu­ sively Islamic state where all non-Islamic while in jail, he was released in late 5 1972. ideas or practices are forbidden.11 A Hekmatyar's group, now known as the Is­ sense of the program is seen in the fol­ lamic Party (Hezb-i Islami), has its roots lowing four proposals: (1) the agrarian in an earlier era. In 1973, when Muhammad reform launched by the revolutionary gov­ Daud assumed power in Afghanistan in an ernment will be cancelled and all private anti-royalist coup, the government of property will be returned to its original Zulfikar Ali Bhutto in Pakistan launched a owners; (2) women must wear the veil and "forward policy" against Afghanistan. Out both education and work will be separated of fear that Daud would reignite the long­ by sex; (3) all education will include standing border dispute over the Pashtuni­ military training for jihad (holy war) and stan regions of the two countries, Paki­ the state will undertake massive military stan clandestinely trained and armed a armament; and (4) (in contrast to present force of 5,000 Afghan rebels in a series policy of respecting the several national of secret camps. The Nixon administra­ languages) there will be one national lan­ guage and Arabic will be promoted as a tion, fearful that Daud's regime was too 6 left-leaning, sent in the CIA to help Pa­ second language. kistan train these rebels. (One CIA train­ Despite Hekmatyar's prominence among ing camp was located in Attock, Pakistan.) Peshawar-based rebels, he has been one of The CIA later withdrew assistance as it the most divisive forces in the rebel became clear that Daud wasn't a leftist, movement. He has refused to join any rebel and the force was put under tight Paki­ alliances and his group has been involved stani control, with Hekmatyar emerging as in outbreaks of fighting against other the Afghan "leader". Pakistan hoped to use rebel groups. the force to counter any Daud attempts to Hekmatyar's major external provider is militarily push into the North West Fron- still Pakistan, which sup:12lies abundant aid, facilities and freedom to move men Counterspy, May-July 1981 25 -

Approved For Release 2010/06/15: CIA-RDP90-00845R000100140007-5 Approved For Release 2010/06/15: CIA-RDP90-00845R000100140007-5 and arms at will. Unlike Bhutto's govern­ stan, and in the mid-1970s was appointed ment, which helped create the rebel force (under a Saudi grant) to a mosque in Co­ ln 1973 principally for anti-Daud govern­ penhagen. Prominent members of his family ment actions, Zia's support comes also earlier became notorious for their exces­ from an ideological affinity with Hekmat- · sively conservative opposition to the Af­ yar. The joint CIA-Pakistan creation of ghan monarchy from the 1920s onward.7 When the Hekmatyar-led force in 1973 was by no the first Afghan parliament was elected in means the last instance ot close collabo­ 1965, the most reactionary block of repre­ ration between the U.S. and Pakistan. sentatives was led by the Mujadidi family. Counterspy (Jan.- March 80) has extensive­ Rabani's modern rebel activities began ly described Pakistani compliance with the alongside Hekmatyar in the Pakistan-CIA­ CIA's use of the U.S. embassy in Islam­ created Afghan rebel group in 1973. The abad, Pakistan to direct covert assistance others only came to Peshawar after the to the rebels. More recently, in September 1978 Afghan revolution and subsequent land 1980, the Pakistani government ordered all reform. Even now, the established Muslim diplomatic missions to stop operating in­ group whose principles all of these lead­ formation and publicity sections from cit­ ers seem to adhere to most closely is the ies other than Islamabad. It was no acci­ Muslim Brotherhood - an extreme fundamen­ dent that U.S. International Conununication talist organization with cells all over Agency posts in Lahore, Karachi and Pesha­ the Middle East which rejects all forms of war were not affected by the order. Since "Westernization, secularization and mod.,. late 1980, the Islamic Party has also been ernization" (see box) . financially helped by the leader of the eZig Harrison, a senior assoaiate of Islamic Society Party of Kuwait, Abdullah the Carnegie Endo1JJment, arguing in For­ al Aqil. ei n Policy (Winter 80-81) that U.S. aid Since the April 1978 revolution, four be redirected to rebel groups within Af­ major groups have split off from Hekmat- ghanistan, cZearZy pointed to the poZit- · yar, but all continue to espouse basically icaZ ZiabiZity of the Muslim Brotherhood the same ideas and programs: Islamic Party Zink: "Most of the Peshawar-based resis­ (Hezb-i-Islami, a direct split from Hek­ tance groups espouse the militant, fun­ matyar's party which kept the name) of damentalist variety of pan-IsZamism Younis Khalis; Islamic Society of Afghani­ identified with the MusUm Brotherhood •. stan (Jamiat Islarni Afghanistan) of Bur­ Operating throughout the Islamic world, hanuddin Rabani; National Liberation Front the brotherhood denies the importance, of Afghanistan (Jabha-i-Nejat-i-Milli Af­ even the validity, of a separate Afghan ghanistan) of Sebgatullah Mujadidi; and or Pakistani or Arab nationalism, em- Islamic Revolutionary Movement (Harakat hasizing instead the unity of Islam. Inqelabe Islami) of Mohammad Nabi For this reason, among others, Afghan Mohanunadi. Along with a fifth group (to be fundamentalist leaders have been isolat­ detailed later), they formed a flimsy Is­ ed from the mainstream of Afghan politi­ lamic Alliance for the Liberation of Af­ cal life in recent decades and, conse­ ghanistan under the leader�hip of Abdul quently, have had difficulty in winning Rasoul Sayaf (who was freed from jail by acceptance as resistance leaders. " Karmal in January 1980). Founded in 1928 in Egypt, the Brother­ There are marked differences in the hood rapidly spread throughout Egypt, leaders' backgrounds. Rabani, Mujadidi and the Sudan, Syria, Palestine, Lebanon an Sayaf were all educated at the Theological North Africa, and amassed 200,000 mem­ University of Al Azhar (Cairo, Egypt) as bers organized in tight Zoaal ceZZs theologians. All three formed connections ithin a decade. In demanding "purity" with the Muslim Brotherhood while in of the IsZamic-worZd, they have Zang re­ Egypt. Upon their return to Kabul, each jected any foreign infiuenae through became involved with the Muslim.Brother­ secularization or modernization. Since hood-affiliated Militant Muslim Youth (as being driven underground in Egypt in the did Hekmatyar and Moharnrnadi). In contrast 1950s, the Brotherhood has focused its to the engineer Hekmatyar, Rabani was a activities on terrorist attacks against landlord and businessman, involved in the the Zess fundamentalist regimes in the export of Karakul (Persian fur). Similar· re ion. ly, Mujadidi was a landlord in Afghani- 26 - CounterSpy, May-July 1981

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As early as January 1980, then-Egyptian new arms c;hfr,rnnntc; from the U.S. In light Defense Minister, General Kamal Hassan Ali of this c1,, 1 ,( 11denl Sadat-U.S. relationship, announced that "army camps have been it is hiqil ! v r1oubtful that Egyptian arms opened for the training of Afghan rebels" 2nd u:J i_1, ;, '',_;h,Jn rebel hands without at and that (Peshawar-based) rebels are being least ta.c:i.1: ;n,;iroval from the U.S. supplied with weapons from Egypt.8 These Rab':l.ni 's le L,mic Society of Afghanistan shipments continue to the present, with also rec:0 i v,:c' q crn,rous covert support the open complicity of the Pakistani gov­ thr0uqh c,n,: ,:,f t-1H' United States' most ernment. A French reporter, who travelled loval cli.H1 t ,� in the Middle East - Oman 1 with rebel groups for six months in 1980, (f�n r:1,ff-·,, ·1•,r:, sc,e the February-April tracked an April 1980 shipment of Egyp­ 1981 issue of Counterspy). Money for arms tian arms from the moment it arrived in and rniJj_tn:---/ ,�q,iiprnent has been trans­ Pakistan all the way into Afghanistan. A fe,::rc�,J .:n,;:1 t-f!f·• U.S. and Saudi Arabia into 1 complete list of the arms of the shipment the Bank of Jman account of Tufail Moham­ (including Egyptian-made kalachnikov med, one of R,hani 's associates in the Is­ rifles, explosives, rocket propelled gre­ lanlic S1...>c:i r .. �"Y nades, cartridges, mines and shells) was stamped with official government seals at NATIONAL .'. FUNT :'OR ISLAMIC REVOLUTION several checkpoints in Pakistan. Then, the OF Sl\YEI_) Ail:IAU ;;AILAMI French reporter personally accompanied a Gai] ani '�; 'J"rrnm i.s the final member of truckload of the arms through the final the� Islamic r,.1Ji.ance, and is unique in Pakistan border station into Afghanistan. its or-'en s uriiao.t.' I: for the restoration of Just across the border the arms were dis­ the Afghan ;nonarchy. Gailani 's roots also persed by camel and man into the interi­ differ fuM hi c: Alliance co-members in or.9 A June. 1980 issue of the New Repub­ th,1 t his Li l: 1kr was an Iraqi religious lic asserted that some of the Egyptian figure ,,..-,ho :et t-Lecl in Afghanistan before rupons also entered Pakistan in weekly World Warr. After his father was hanged plane flights. for his C>Pi o,�i.ti.on to Afghan independence In December 1980, representatives of in 1919, :;,1.i1a1,i_ amassed great wealth four of the five Alliance groups personal­ through l andh(ll rl inys, farms and tribute ly visited Sadat in his home village of paid by no1n iJ,; who revered him as a son of Mit-a-Abul-Qom. Sadat suggested to the a great rel i_qirms leader (he is addressed leaders that they form a government in ex­ as ''Pir", a ti Lle of a high religious fig­ ile: "I would be very happy to learn that ure). In t_;,,, t.•l·Jos, he also prospered as a you have reached agreement on the forma- . l busine:::;srnan, b,,cuming the sole distributor tion o f a prov1s1ona· · 1 government. " O He of Peu,J<'oot ,::ff,s .i.n Afghanistan. Through also promised he would double the aid he his wJ_fr-, i-,,, 1,, }_elated to the former King had already sent to the rebels, including of Afqhan i :" tan (who now lives in Rome). anti-tank and anti-aircraft weapons. With­ Ga.i.la.ni Ln;nched his National Front for in three weeks, there were reports that Islamic RevuJ at. i_on (Maaz-i-Milli Islami) new ·rocket propelled grenades and 12.9 mm soon after '.':lie 1978 revolution, drawing heavy machine guns from Egypt were de­ 11 heavily c•n :ii_,_, ·;upport among the nomads. ployed in the fighting. It has been re­ The Front',,; h!anifesto reveals a stance ported that the arms Sadat has supplied to more libcra tJ1an that of Hekmatyar.14 Its the Alliance are divided roughly into five avowed 1:un,_l,1rn1::'nl.:aJ ist principles are "Is­ equal parts in Peshawar and distributed to lam, nat.ion,U l,;m and democracy" and it the five "partners" that comprise the Al­ c-. 1 even mak, ,; a qp,; t:ure toward equality of liance. 2 the sexer;. '.lc'spi te its "modernist" lan­ The details of U.S. involvement in the guage, howpvr:r, the Manifesto is firmly Egyptian rebel assistance are unknown. opposed t:c- ,my kj nd of agrarian reform. However, it should be recalled that one of Gailani. '::; :o•.n1(�what liberal rhetoric has the largest U.S. aid program in the world frequently J)covuked open rifts within the is to Egypt, running at more than $1 bil­ Alliancr,. Wi,"'ll he went to Western Europe lion annually. At the onset of 1981, Egypt s2ekinq au,,,; Cur the insurgents, Abdul had a $3.5 billion commitment in U.S. arms :Rasou1 Saya , president of the Alliance, sales.13 Clearly, Egypt is able to send criticiz<=:d 1-.he pf fort as being "too West­ some of its older arms to Afghan rebels ern'' and ic'.c'Ued a statement disassociating precisely because it is receiving abundant t:hE· i\J 11 <:1:1r:, frum it.15 J..ri i ,n•Spy_, May-July 1981 - 2? Approved For Release 2010/06/15: CIA-RDP90-00845R000100140007-5 Approved For Release 2010/06/15: CIA-RDP90-00845R000100140007-5

In addition to Gailani's Egyptian sup­ One of the U.S. organizations that is port (via the Alliance), he has received openly collecting money for the Afghan strong Saudi Arabian financial assistance. rebels is the Boulder, Colorado based The Saudis favor his monarchist sympa­ Afghan Freedom Fighters Fund, which was thies and have issued Saudi passports to started by Soldier of Fortune (SoF) maga­ members of the ex-King's royal family in zine publisher Robert Brown. Its P.O. Box Italy. Gailani maintains a residence in number is the same as the box of SoF's both London and Peshawar. In June 1980� he advertising department. The Fund's adver­ met in London with Douglas Hurd, a high tisement, prominently featured on SoF's official in the Foreign Office as well, as back cover, reads: "Buy a Bullet, Zap a other officials in an attempt to get cUl[IS. Russian Invader ... All funds collected 'Iwo months later, it was disclosed in will be donated to an Afghan resistance Britain's Sunday Telegraph that.some of group selected by the SoF staff. These the weapons Britain had sold to Arab funds will be used to purchase arms, am­ countries were being redirected to the Af­ munition and medical supplies depending ghan rebels. on the specific need of the Afghan resis­ tance group receiving the funds." ----IRAN AND CHINA Several SoF reporters have gone to Pe­ While the Iranian government has been shawar and claim to have joined up with far more unbending than Pakistan in its rebel groups and gone into Afghanistan. verbal condemnation of Soviet troops in Recent issues of SoF are full of their Afghanistan, it has been less acquiescent bragging about their experiences in Af­ of supporting rebel activities from its ghanistan. (The May 1981 issue also has territory. In June 1980, Iranian authori­ a photo of Mashmet Mojadidi, whose father ties banned Iran-based activities of heads the National Liberation Frorit of Rabani's Islamic Society of Afghanistan, Afghanistan, posing with a Chinese as­ claiming to have evidence that the group sault rifle.) had ties to the CIA and Israeli and Egyp­ Three mercenaries who said they are tian intelligence agencies. Iran also said members of the SoF-connected "Wild Geese" that Rabani's follower� were smuggling mercenary association, recently arrived heroin and were supplying arms and money in Pakistan to support the Afghan rebels. to counter-revolutionary groups in Iran. They claimed to be "the vanguard of a Iran's Baluchi minority, on the other contingent of 72." The three gave their hand, began in late 1978 to provide weap­ names as Walter John Pilgrin, Robin Hugh ons, medical supplies and money to Afghan Morrison (both are British) and Eugene Baluchi forces. The support was coordinat­ Trajan Shipley, -a U.S. citizen. Pilgrin ed by Mawlavi Abdel-Aziz Mollazadeh, reli­ (who said he was a mercenary in the gious leader of the half million Sunni Congo and in ".Rhodesia") and Mo1.1rieon Moslem Baluchis, and his Iranian (he says.· he was a. mercenary in the French Ettehadol Moslemin Party.16 The Afghan Ba­ toreign .Legion and in Angola) said they luchi leader is Mohammad Sharif. Rebels of wanted "to kill Russians." the Shi'ite Hazara minority have also sent ·_several other members of the "Wild representatives to, and received support Geese" have been in and out of Peshawar from, sympathetic Iranian groups. in recent months. Some of them claimed In the northern, northeastern and cen­ they had been hired by the U.S. Defense tral sections of Afghanistan, the Tadzhik, Intelligence Agency (DIA) to capture and Uzbek and Hazara rebel movements have been bring out specific Soviet military equip­ supported militarily by China.17 This is ment from Afghanistan. According to the in addition to Chinese advisors and mili­ London Observer (3/22/81), "they say the tary supplies sent to rebel training camps Americans find it convenient to employ in Pakistan. In early 1981, however, China Britons because they do not need visas to announced that in focusing on its own enter Pakistan. This story is partly con­ economic development, it was vastly cut• firmed by the fact that U.S. officials ting back on its aid to both Third World have certainly asked some freelance pho­ governments and liberation movements tographers to photograph instruments .. of (which is what it considers the Afghan downed helicopter gunships." rebels to be). It cannot be determined yet 28 - Counterspy, May-July 1981·

Approved For Release 2010/06/15: CIA-RDP90-00845R000100140007-5 Approved For Release 2010/06/15: CIA-RDP90-00845R000100140007-5 whether this has affected aid to the Af� economic forces into the Afghan govern­ ghan rebels. ment. This is not the first time Karmal and the Parcham branch (which along with OTHE� AssrsTANCE the Khalq branch makes up the People's Democratic Party of Afghanistan - POPA, In Spring, 1980, Counterspy detailed CIA of which Karma! was a principal founder} assistance to Afghan rebels which began in have issued such an appeal; indeed, they late 1979. Only in mid-February 1980 did began doing so over 15 years earlier when a senior National Security Council offi­ Karma! was elected for the first of his cial admit that, with President Carter's two terms in Afghanistan's National Assem­ approval, the U.S. was supplying arms to bly.24 When the POPA held its first con­ 18 unspecified rebel groups. One person gress in January 1965, it called for "an with rebel connections, Zia Nassry (a U.S. alliance of workers, peasants, progressive citizen) met with high ranking U.S. offi­ intellectuals, artisans, urban and rural cials and enators during visits in 1979 1 § smallholders and national bourgeois in one and 1980. Nassry later told an inter­ front" to liberate Afghanistan from its viewer for the German magazine Der Spie­ backwardness.25 TWo years later, ·when gel that his followers had received train­ Khalq and Parcham split, it was Karmal's ing facilities in Egypt from Anwar Sadat�O Parcham branch which continued to advocate Late in 1980, two Afghan rebel leaders, a broad front to carry through the first Sayed Bahaouddin Majrooh and Saduddin stage of a national and democratic revolu­ Shpoon), claiming to represent a wide tion. spectrum of resistance fighters, met with The idea of a broad front was still a State Department officials, a half dozen 21 central aim of the POPA after it assumed Senators and Henry Kissinger. power in April, 1978, but it receded into Now, the question of escalating assis­ the background as divisions grew between tance falls squarely on the shoulders of Khalq and Parcham. Any hope for such a Ronald Reagan's entourage. One of Reagan's front was further squelched by certain top aides on the area is former Ambassador miscalculations and errors by the govern­ to Afghanistan, Robert Neumann, who clear­ ment. These included an at times brutal ly enunciates a confrontational approach to the Soviet Union. The Far Eastern Eco­ cont. on pg. 31 nomic Review confidently reported after Reagan's inauguration that: "It is be-· CIA Director William Casey's mission to lieved the U.S. will try to plug into Japan in early 1981 was supposed to be their (Gailani, Khalis, Mohammadi and secret until - probably by mistake - his Mujadidi] groups with up to $200 million name appeared on the visitors list of in military. . an d economic , assis , t ance. " 22 Japanese Prime Minister Zenko Suzuki. Other expressions of external aid have Japanese spokespersons said this was the occurred on a much smaller scale. Typical first official level mission between a is the Paris-based Friends of Afghanistan CIA Director and an incumbent Japanese Society, which collects donations for the Prime Minister. Casey refused to speak rebels via advertisements in French news­ with reporters, and U.S. representatives papers. They distributed the equivalent of in Tokyo did not comment on the visit U.S. $45,000 to rebel leaders in June either. However, Japanese officials told 1980.23 the Washington Post that Casey had asked Suzuki to give� aid to Thailand and NATIONAL FATHERLAND FRONT Pakistan. Pressured by the U.S., Japan had agreed in early 1980 to give Paki­ The Afghan government is striving to stan "an extra aid package" to help the broaden and reinforce its rule through a Pakistani government "cope with the ref­ series of national and international ini­ ugee· problem." According to KYODO news tiatives. If successful, the government agency, Suzuki promised to step up his says that there will be no further need aid to Zia ul-Haq once more. It was seen for Soviet troops in Afghanistan. as unusual, however, that a U.S. CIA Di­ The centerpiece of BabrQk Karmal's na­ rector would get involved in the issue tional efforts was summarized in his De­ of foreign aid between Japan and Paki­ cember 1980 call for a "national father­ stan. land front" to pull various political and Counterspy, May-JuZy 1981 - 29

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�n and the Rebels While the Carter administration sent G.: It is very'difficult to say. I aid to the Afghan rebels without talking think it's a good sign that we have been about it very much, Ronald Reagan and his received here very well. cabinet are fairly open about it. Refer­ NPR: Received by whom? ring to the rebels, Reagan stated in an G.: We met some Senators, some con­ interview with ABC News on March 8, 1981: gressmen, and some ••• high ranking offi­ "They are freedom fighters, not rebels••• cials. Those are people fighting for their own NPR: But you don't want to tell us who country and not wanting to be a satellite any of these high ranking officials are? of the Soviet Union." He announced that G.: I prefer not to speak specifically. he "would consider supplying American NPR: But you're happy, quite happy with weapons to the Afghan rebels" and added what you have been told. that he didn't think the Soviet govern­ G.: Yes. ment "could really have an objection to Reagan's openness about U.S. aid to the that." "freedom fighters" constitutes somewhat Defense Secretary Caspar Weinberger im­ of a change in.u.s. policy on Afghani­ mediately echoed Reagan's views in an ih­ stan. Undoubtedly, increased aid will terview with "Face the Nation" (CBS). prolong the fighting in Afghanistan. In Weinberger was asked whether providing talking about stepping up aid, Reagan is supplies to the rebels would deter the following the advice of two leading capi­ Soviet Union from "other adventures." He talist media outlets: the Economist, said: "Anything that would discourage which editorialized late last year that Soviet adventurism would be profitable,"· "certainly the west should help the guer­ but a policy of giving arms to the Afghan rillas •.• " and the Wall Street Journal, rebels can "only succeed if it were ac­ which praised some "rebel delegates" vis­ ceptable to the•.• rebels ••. We cannot iting the U.S. as being "not ••• primitive force our presence anywhere it is not de­ Islamic fanatics" but "supremely Western sired unless war is actually under way." educated." Referring to problems in aid­ It is hard to believe that Weinberger ing the rebels, the Journal argues that does not know that a number of Afghan none of them is "insurmountable •.. espe­ rebel leaders have in fact repeatedly cially when we are engaged in an enter-' asked for outside aid, and over the last prise that doesn't require of us a com­ year, several of them have visited the plete success." In other words - the U.S. U.S. In February 1981, a rebel delega­ objective is not to lead the rebels to tion headed by Ahmad Gailani, son of victory, but just to provide enough arms Zayed Ahmad Gailani (the New York Times to the "freedom fighters" to keep them reported that Gailani Senior, the leader going. of the National Front for Islamic Revolu­ It is unlikely that Pakistan's General tion himself had come to Washington) and Zia ul-Haq was happy about Reagan •·s open Hakim Aryobi, who was described as a discussion of U.S. aid to the rebels - field commander of the front, visited the which has to go through Pakistan - since U.S. to ask for arms.· National Public Ra­ the rebel presence in his country is fur­ dio (All ll'llings Considered) aired the ther destabilizing Zia's shaky rule. Some following interview with Gailani Junior Pakistani officials say increased U .s·. on February 26. aid to Pakistan would not provide enough Gailani: We are not here to seek man­ benefits to offset the problems resulting power••• What we need is ammunition, guns from an increased U.S. commitment to the ,for our cause, as well as food and medi- rebels and their continued presence in cine." P�kistan. However, given Pakistan's huge NP�: Have people been receptive to , debt to U.S. controlled international your request? lending institutions (in November 1980, G. : We are very happy about. •• the re­ for example, Zia was forced to accept a sults of our trip. $1.7 billion IMF loan under terms disas­ NPR: Have there been specific guaran­ trous for the country's poor), the last tees offered? word might not have be�n spoken on this issue. - by Konrad Ege - 30 - CounterSpy, May-July 1981 Approved For Release 2010/06/15: CIA-RDP90-00845R000100140007-5 Approved For Release 2010/06/15: CIA-RDP90-00845R000100140007-5

implementation of progressive reforms be created. On January 3, Pakistan's for­ (e.g. land reform, literacy campaign, fe­ eign minister Aga Shahi requested public­ male education, etc.); a rigid and often ly that the United Nations Secretary Gen­ authoritarian party structure; and con­ eral appoint a representative to convene centration of decision�making in the hands peace discussions between Afghanistan, of Pashto-speaking Afghans to the exclu­ Pakistan and Iran. He asked that Afghani­ sion of certain minorities. These mistakes stan be represented in the talks by the especially provoked the Hazara and Nuri­ ruling People's Democratic Party and not stani minorities (whi-ch were initially the government - a condition . which al­ sympathetic to the revolution) to form lowed Zia ul-Haq to distance himself from substantial internal resistance movements. Babrak Karmal's government. Also during this period, numerous small Even with this proviso, the move con­ Maoist and other "left-wing" parties tained bold concessions on two fronts: launched uncoordinated anti-government ac­ for the first time there was no mention tions. of rebel.forces participating in the Babrak Karma!, who had been vice-premier talks; and Pakistan agreed to meet openly in the 1978 revolutionary government, put with Babrak Karmal's party. Almost over­ a renewed emphasis on the idea of a front night, Afghanistan responded favorably, when he assumed power in December 1979. making an important concession in turn. Karma! carried the front concept a step Whereas Afghanistan had refused a U.N. further in his December 1980 speech by role in peace talks, it now agreed to sanctioning the convening of a "constitu­ discussions under U.N. auspices or at ent congress." He was careful to include least with U.N. observers. "religious forces" among the many groups The next act unfolded against the back­ that would comprise the congress. The gov­ drop of a major Islamic conference in ernment has buttressed its nationalistic Taif, Saudi Arabia in late January 1981. appeals for the front by de-emphasizing Pakistan's General Zia met with U.N. Sec­ its socialist orientation, cutting back retary General Kurt Waldheim to discuss the land reform and even allowing some concrete steps towards convening talks. former landlords to return to certain ar­ Their discussion largely ignored the ex­ eas.26 Combined with a general unpopular­ tremely vocal interventions of the Hezb-i­ ity of the Peshawar rebels' jihad against Islami rebel faction which demanded its modernism and communism, this policy has inclusion in any settlement. Later at the yielded some results. As one Indian jour­ conference, Pakistan's Shahi reportedly nalist commented, "a surprising number of stated that talks could not wait for Iran , religious leaders are beginning to cooper­ w h.ich was still insisting that Soviet ate with the Karma! government despite troops leave and Afghan rebels be included 28 their distrust of it." 27 There has also before any peace could be considered. been some movement among pre-1978 govern­ Saudi Arabian officials claimed that only ment officials and other Afghans outside strong pressure from conservative Arab the country toward the idea of participat­ states prevented Zia from moving even ing in a broad front. faster towards talks. Success of any such front will require At the February 1981 non-aligned foreign an extraordinary degree of flexibility by ministers conference in New Delhi, Afghan the Afghan government. To date, they have foreign minister Dost reiterated his de­ taken initial steps that suggest such sire for bilateral talks with Pakistan and flexibility exists. with Iran (turning down Pakistan's propos­ als for trilateral talks). He stated that INTERNATIONAL PROSPECTS FOR PEACE a U.N. presence at talks would be wel­ comed, but that the talks were not to be At the onset of 1981, eight months afte1 under U.N. auspices. The conference ended Karma! announced a desire for talks with with no timetable set for talks and with a Pakistan and Iran, an international peace resolution calling for the withdrawal of effort was launched from a surprising all foreign troops from Afghanistan. source: Pakistan. The central issue at Zia's moves towards accommodation with stake is the sealing of borders by Paki­ Afghanistan are motivated by a series of stan and Iran to prevent rebel incursions rapidly accumulating pressures that 'into Afghanistan. Simultaneously, a time­ threaten to topple his regime. On his table for Soviet troop withdrawal would CounterSpy, May-July 1981 31

Approved For Release 2010/06/15: CIA-RDP90-00845R000100140007-5 Approved For Release 2010/06/15: CIA-RDP90-00845R000100140007-5 eastern flank, long-time enemy India is stan's need for the amounts of assistance just receiving several billion dollars that only the U.S. can offer will pull Zia worth of new Soviet military equipment. In back, to Washington's position and away 1980, Zia kept about two-thirds of his ar­ from afly accommodation wi.th .the Afghan my of a quarter-million deployed in the government. east and north facing India. On the west­ Proposals for negotiations with Pakistan ern border, the estimated one to one-and-a and Iran have been accompanied by Afghan -half million Afghans in Pakistan are government efforts to extend its interna­ draining government coffers by $200 mil­ tional support. The leader of a January lion a year and are taking away vital re­ 1981 trip to Afghanistan by three British sources from an already disaffected Balu­ Labor M.P.'s returned with the statement: chi population of 2.5 million. 29 "I generally support the Karmal govern­ Growing Baluchi opposition to the gov­ ment.11 34 Significantly, the United ernment has found its counterpart in new States, which denies official recognition activism of the Pakistan People's Party of to governments of such countries as Ango­ ex-Prime Minister Bhutto (executed by Zia la, Cuba and Vietnam, still has an embassy in 1979) and other anti-government organi­ and diplomatic personnel in Kabul. If zations. A broad coalition of these Babrak Karmal is successful in broadening parties, all banned by Zia, have demanded the political base of his government, the a normalization of rel,ations with the Af­ likelihood of further international recog­ ghan govenment. 30 This coalition put nition and a package including eventual heavy pressure on Zia in a series of 1981 withdrawal of Soviet forces will grow. demonstrations in Peshawar and Lahore which were continuing at the ti�e of this FOOTNOTES writing (March 1981). It has also been re­ ported that there is an underground cell ll International Herald Tribune <.lHTl, 12/27-28/80. of leftist People's Party activists in Ka­ 2) See their arti� the Dec�r, 1980 issues of bul, where one of Bhutto's sons has also New StateS!llall. 3 3)Boston Globe, 12/25/80. been seen. 1 4) FuEas�Economic Review (FEER), 1/30/81. These military and political rumblings 5) For the entire text s�triceFranceschi, Ils � choisi la liberte, Arthaud, Paris, 1981. come at a time of growing economic crisis 6) Currently the two major languages are Dari (Persian) as Pakistan's external debt shot past $10 and Pashto, with Uzbek, Turkman and Baluchi close be­ billion in 1980. 32 Additional austerity hind. 7) Louis Dupree, Afghanistan, Princeton University drives forced on Zia by international Press, Princeton, NJ, 1973. banks and financial institutions could 8) MENA (Cairo),as quoted in FBIS, Middle East and well further erode Gen. Zia's narrow poli­ North Africa, 1/25/80. 9) Franceschi, pp.176, 177. cal base. Zia realizes that every day that 10) Times of India, 12/28/80. Soviet troops are in Afghanistan and rebel 11) IHT, 1/23/81 and FEER, 1/23/81. forces are in his country, the odds 12) Franceschi, p.176-.- 13) IHT, 1/20/81. against him grow. His shift has been ac­ 14) Reprinted in Franceschi, pp.260-263. celerated by Aga Shahi, who argues-that 15) New York Times (NYT), 7/20/80. - Pakistan should ease away from close de­ 16l m, 1/16/00. 17) Le Monde Diplomatigue, February 1980. pendence on the U.S. to become a stalwart 18) NYT, 2/16/80. of the non-aligned movement. Shahi seems 19) Nassry went to Iran in early 1980 and was arrested in March 1980 on charges of spying. TWo officials of for the moment to have won majority sup­ the Swiss embassy in Teheran (which is taking care of port in the upper ruling echelons for this U.S. interests there) visited Nassry in March 1981 in worldview, which implies seeking accom� Evin Prison. 33 20) � Spiegel, No.3, 1980. m6dation with Kabul. 21) Wall Street Journal (WSJ), 12/5/80. Forces attempting to break this policy 22) fizi, l/23/81. - apart are led by Pakistan Times editor 23) FEER, 12/5/80. z. 24) crnain ideas of the POPA find their roots in the A. Suleri, who would rather accept Ronald first reformist government in Afghanistan (1919-1929), Reagan's embrace and push for a multi-bil­ which was crushed by a revolt of reactionary religious lion dollar aid package from the U.S. forces. The ideas reemerged after World War II in de­ mands by students and intellectuals for a parliamentary Suleri openly condems both the non-aligned constitution and free elections. See Leon Poullada, Re­ ioovement and the Islamic Conference and EEE!!. and Rebellion in Afghanistan, 1919-1929, Cornell, for a long time was considered Zia's 1973. 25) Fred Halliday, "Revolution in Afghanistan", � � ioouthpiece. Suleri's hope is that Paki� �, November-December 1978, p.22. 32 - Counterspy, May-July 1981

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26) New Statesman, 12/5/80. political parties demanded Zia's resignation and formed 27) �dian (London), 8/6/80. an opposition alliance, the Movement for the Restora­ 28) IHT, 2/6/81. tion of Democracy. over the 29) Typical of these tensions is resentment _ 31) Boston Globe, 12/25/80. roughly 2 million livestock the Afghans have brought in­ 32) NYT, 7/16/80. to Baluchistan, which compete with local sheep f?r al­ 33);;; Financial Times, 2/10/81. ready scarce grazing land. 34) The Guardian Weekly (London), 1/18/81. 30) In February 1981, Pakistan's nine major opposition

U.S. Basesin Saudi Arabia by Konrad Ege

To simply say - as did the Chairperson of the House Committee on Europe and the Middle East, Lee Hamilton, in a recent hearing on Saudi Arabia - that "Saudi Ara­ bia is a country of vital importance for the United States" 1 is quite an under­ statement. Of late, Saudi Arabia has been producing between 8.5 and 10.3 million barrels of oil per day - more than 13 per­ cent of the total oil consumption in the capitalist world. Saudi oil constitutes about one quarter of total U.S. oil im­ ports. At the same time, Saudi Arabia has become the seventh largest customer for U.S. exports. In a period of overall U.S. trade deficit, this exchange results in a net capital inflow into the U.S. From 1974 to 1978, for example, U.S. merchan­ dise and military sales, export of U.S. of the several thousand princes who make services (from engineering to trash col­ up the Saudi royal family. Indeed, their - lection),oil company profits and dividends in Henry Kissingers words - "strongly, ve- as well as Saudi investments in the U.S. hemently and vociferous. 1 y anti- . Communis • t" 4 resulted in a net inflow of $5.1 billion overall U.S. 2 ideology fits in nicely with per year. Moreover, from 1955 to 1979, objectives in the region. The royal family U.S. military sales agreements with Saudi uses their peculiar interpr tation of the Arabia totalled $30.79 billion which was Koran as their ideology and 1justification more than twice the value of foreign mili­ of repression. Labor unions, political tary sales to the shah of Iran in the same parties and even peaceful political and period as well as the highest amount of social assemblies are illegal. The cur­ foreign military sales to any country in tailment of women's rights is extreme - U .s. history. they are barred from almost all jobs, Not surprisingly, Saudi Arabia has be­ cannot travel by themselves, and have no come the most ardent advocate of U.S. in­ voice in public life. Saudi Arabia is one terests in OPEC (Saudi oil minister Sheikh of the few countries in the world that Ahmad Zaki Yamani works to keep OPEC does not have a constitution. The rule of prices down by increasing Saudi oil pro­ the royal family is absolute. duction far beyond Saudi needs and bene­ There is only one issue on which the fit) and in Muslim and Arab organiza­ U.S. and Saudi Arabia disagree: Israel. tions. The Saudi rulers also use their The proclaimed Muslim nature of their re­ wealth to fund arms purchases by other gime forces the Saudi rulers to support U.S. clients. the Palestinian movement. If the Reagan Because of these financial and strategic administration isn't able to find a speedy advantages of the present u.s.-saudi rela­ solution to the "problems of the Palestin­ tionship, the U.S. government chooses to ians" (Reagan labeled the P.L.O. "terror­ ignore the extremely repressive character ist"), the u.s.-saudi alliance will expe- CountePSpy, May-July 1981 - 33 Approved For Release 2010/06/15: CIA-RDF'90-00845R000100140007-5 Approved For Release 2010/06/15: CIA-RDP90-00845R000100140007-5 rience difficulties. year before that, in February 1943, under This article explores several aspects of pressure from Socal, President Franklin o. the special nature of U.S.-Saudi rela- Roosevelt foreshadowed things to come by tions by focusing on U.S. strategies to proclaiming that "the defense of Saudi keep the economically powerful Saudi re- Arabia is vital to the defense of the gime tied to the u.s. These strategies are United States." 6 This made King Abdul rooted in the training and supplying of Aziz eligible for $17.5 million in U.S. the Saudi military and National Guard who, aid between 1943 and 1946. in turn, suppress any movement for pro- Not trusting the British, Abdul Aziz gressive change in Saudi Arabia. This, of asked the U.S. government for a formal course, also provides· the U.S. control of military alliance. The U.S. government, the Saudi military and National Guard. As however, didn't want "an old style treaty a General Accounting Office (G.A.O.) re- of alliance with Saudi Arabia" 7 and in­ report put it: "... the substantial reli- stead provided other assistance including ance on American advisors and technicians economic aid. At the same time, ARAMCO, .. . limits the potential use of the [sau- which by 194 7 had become "the world's most di] weapons against U .s. wishes." 5 Even important oil cartel" 8 had worked out a some Saudi officials have acknowledged contract for oil production which put the that u.s. military assistance is, in fact, Saudi government "in essentially a colo­ used to keep Saudi Arabia dependent on the nial position." The Saudi rulers "came to U.S. They question whether the U.S.-de- depend almost entirely on the U.S. Govern­ signed construction of huge military fa- ment arid ARAMCO for aid and guidance cilities benefits the U.S. more than Saudi (even) on a variety of non-oil factors." 9 Arabia, resulting in the existence of de For a number of years, ARAMCO managed to facto U.S. bases in Saudi Arabia. Complet- make the Saudi royal family financially ing the U.S. hold on Saudi Arabia is the dependent on the company and even gave ad­ royal family's dependence on U.S. private vances on oil royalties (22 cents per bar­ s.ecurity companies and the C.I.A. to main- rel in 1946/47) to the financially tain internal "stability." strapped Saudi king. The U.S. government and ARAMCO continued THE ISSUE OF U.S. MILITARY BASES to work hand in hand, exploiting Saudi oil (which, however, didn't prevent ARAMCO Publicly, Saudi officials rule out any from overcharging the U.S. Navy for their possibility of allowing U.S. military oil). For example, ARAMCO provided cover bases in their country, and occasionally for CIA officers, allowed them to pose as even voice criticism of U.S. military ac­ ARAMCO employees and even provided them tions in the region. At the same time, with ARAMCO offices. In 1951, the U.S. and hundreds, if not thousands, of U.S. mili­ Saudi Arabia signed a technical assistance tary personnel and over 10,000 civilia�I • amployees of U.S. defense contractors are agreement and a treaty under which the in Saudi Arabia, and the government allows u.s. set up a military academy in Riyadh, Saudi facilities to be used by the U.S. and the Dhahran military base was leased to the U.S. for another five years. Dhah­ military. This contradiction between words ran became the largest u.s. airbase be­ and actions is obvious. The Saudi rulers are in a dilemma: they need the U.S. to tween Western Europe and Japan. maintain their regime, but they are wary After King Abdul Aziz's death in 1953, the Saudi-u.s. friendship cooled, and a of popular resentment and opposition to their identification with the U.S. govern- secret State Department intelligence re­ ment. port stated that relations between the two · The u .s. military relationship with Sau­ countries had "deteriorated seriously" in di Arabia began during World War II.� 1954, but that the "chief factor which U.S. military mission was established in leads the Saudi regime to maintain some Riyadh, and in 1944, the Arabian-American degree of friendship with the U.S. is its Oil company (ARAMCO) - then a joint ven­ extreme dependence on large and uninter­ ture of Standard Oil of California rupted oil revenues from the ARAMCO con- (Socal) and Texaco; Mobil and Jersey Stan­ cession." The memo added: " •.• the re­ dard Oil (now Exxon) joined in 1948 - "in­ gime's dependence on the oil income and vited" the u.s. military to establish an its presumable recognition of the lesson get air base near ARAMCO's oil fields. One of Iran - that the world market could 34 - CounterSpy, May-July 1981 Approved For Release 2010/06/15: CIA-RDP90-0Q_�45R000100140007-5 Approved For Release 2010/06/15: CIA-RDP90-00845R000100140007-5

Even though the u.s.-saudi relationship 1977, Zaire's President Mobutu Sese Seko has become more important since the peo­ announced that he had "received substan­ ple of Iran deposed their dictator, Saudi tial aid from Saudi Arabia during the re­ Arabia will never be able to fulfill the cent invasion of Shaba Province by Katan­ ex-shah's role of acting as the U.S. po­ gan exiles." In 1975, the Saudi rulers lice force in the area. The Saudi army is told the U.S. they were willing to give too small, and the royal family is "busy money to Somalia to allow that government enough" holding on to its own power. How­ to buy U.S. weapons and to start other ever, the Saudi rulers have played an im­ aid programs to Somalia "as a means of portant role in funding reactionary gov­ eliminating the Russian presence there." ernments and their militaries in the Mid­ At the time, however, that didn't fit in­ dle East region and Africa as well as to U.S. military objectives: the U.S. complementary rightwing organizations. wanted to establish a naval base on Die­ Through their economic power, the Saudi go Garcia and needed a "Soviet threat" in rulers have much influence in Bahrain, Somalia to justify that project.So the Oman, North Yemen, and Jordan. The Saudis deal never took place. have even been financing anti-Communist In 1975, it was also reported that Sau­ organizations in Europe (the Italian di Arabia was cooperating with the U.S. Christian Democrats) and Asia (some of in supporting the FNLA and ONITA in Ango­ the rightwing Afghan rebels). la. Saudi officials denied, however, that Before signing the Camp David Treaty, they were about to give $50 million to Anwar Sadat was their main recipient, and these groups. The Saudi rulers have also it is questionable whether he would be in given money to Morocco and Maud.. tania in power today had not the Saudis given him their war against the Polisario libera­ billions of dollars to make it through tion movement, and to Sudan for arms pur­ his economic crises. chases from the West. In addition, Saudi In the late 1970s, Saudi Arabia dis­ Arabia and Tunisia signed an agreement on .tributed more aid than the U.S. to Afri­ April 7, 1980 providing for "cooperation can nations(excluding Egypt). In July in security matters'' between the two countries. along without Saudi Arabian oil" lO would tion remained almost exactly the same. be "powerful deterrents to any attempt to The military market in Saudi Arabia be­ nationalize or otherwise disturb the con­ came increasingly lucrative, especially cession." 11 after 1970, when Saudi annual oil revenues During a 1957 trip to Washington by Abdul topped $1 billion for the first time; and Aziz's successor,King Saud, relations were even more after the 1973 oil embargo when 'm"ended and the U.S. was granted another it reached over $22 billion. The U.S. suc­ five year lease of the Dhahran base in ex­ cessfully_ousted Britain from the market, change for continued military assistance. and U.S. military sales shot up dramati­ After a number of shuffles in the Saudi cally from $80 million in u.s. Fiscal Year government, u.s.-saudi relations stabi­ 1970 to $5.8 billion in 1975. (Facilitat­ lized in the mid-1960s. Under U.S. direc­ ing contracts were people like Kermit tion, then-King Faisal began to systemati­ Roosevelt, the former CIA officer who ran cally rebuild the army and to structure the 1953 coup in Iran and who went on to the Saudi economy along capitalist guide­ consult for U.S. arms manufacturers.) From lines. A close military relationship was 1970 on, it was clearly the U.S. which de­ expressed in regular visits of Saudi ports termined the development of the Saudi mil­ by U.S. warships and U.S. paratroopers and itary. A 1970 Pentagon "review team" head­ C-130 transport planes participating in ed by Major General O.A. Leahy went to Saudi military exercises.12 After initial Saudi Arabia to "evaluate" Saudi "defense h�sitation, the U.S. even provided mili­ plans and programs." The Leahy study which tary and logistical support to the Saudis recommended modernization of the air force in their unfruitful attempt to restore the and navy was accepted by the Saudi rulers. Imam of Yemen who had been overthrown on It became "the basis for a memorandum of September 26, 1962. In the same year, the understanding signed in 1972 whereby the U.S. base in Dhahran was formally turnej United States agreed to provide Saudi Ara­ .over to Saudi Arabia; however, its func- bia with technical and a9visory assistance Counterspy, May-July 1981 - 35

Approved For Release 2010/06/15: CIA-RDP90-00845R000100140007-5 Approved For Release 2010/06/15: CIA-RDP90-00845R000100140007-5 to modernize and expand its navy" f3 and It would appear then that two primary led to a U.S.-managed modernization pro- reasons for the development of the Saudi gram for the Saudi Air Force. military was to put profits into the cof- Between April and June, 1974, another fers of U.S. industrialists and to provide Pentagon survey produced a "master plan" the U.S. military with facilities in the for the development of the Saudi Air Force Middle East which it could use as it saw over the next five to ten years. The sur- fit. As a Congressional Research Service vey group also recommended a re-organiza- (C.R.S.) study noted: "American military tion of the Saudi Ministry of Defense and aircraft are not normally inhibited from Aviation and modernization and expansion rather routine periodic use of airfields of the Saudi armed forces. in [saudi Arabia] .•. " The same 1979 Naturally, "modernization" meant depen- study stated that while the U.S. has no dence on U.S. arms manufacturers. The Pen- bases "in the strictest sense" in Saudi tagon told the Saudi rulers not only which Arabia, it does have access to Saudi fa­ way to go with their military, but also cilities that "may be deemed the partial what to buy. A 1977 G.A.O. report stated equivalent of bases - the Department of it bluntly: "Army and Air Force personnel Defense would probably consider them bases are at several Saudi military cities, ad- if the Soviets enjoyed the same rights in vising Saudi Arabian forces on maintenance lieu of the United States." 20 and supply operations and miiitary opera- Via Saudi bases, in early 1979, the U.S. tional techniques. The advisory sections supplied North Yemen (which was involved also give technical advice on new military in a border conflict with South Yemen) equipment and the appropriations of items with $300 million worth of F-5 fighter being considered for the Saudi antted bombers, tanks, and armored personnel car- ns were paid for by the forces ... Mission and support personnel riers. The wear' have increased since 1974 and are expected Saudi rulers.2 Hundreds of U.S. military to reach 365 in October 1977 ... The Navy personnel participated in this operation and Army advisory sections manage the im- in Saudi Arabia 22 and "Jeddah and Riyadh plementation of two Saudi Arabian military hotels were full of U.S. air force men modernization programs." 15 Regarding the called in to check and load ... military naval expansion program, the report said equipment" for North Yemen.23 that the "U.S. Navy Project Office in In addition, according to the Saudi Ara- Washington, D.C ..•. is the coordination bia Newsletter: "Saudi Arabia has upwar&i" and control point for all program activi- of 10,000 military and civilian personnel ties." 16 from the United States engaged on its U.S. military sales to Saudi Arabia in bases and in its defence administration 1980 totalled $5.8 billion and are expect- apparatus." The Newsletter also says that ed to be $5.5 billion this year.17 How- "much of the infrastructure, logistical ever, some Saudi officials are increasing- manpower and the command. apparatus re- ly aski�g whether their huge expenditure quired for an American intervention is al­ and U.S. planning for their military have ready in place..• As Washington negotiates really made their military an effective with oman, Somalia and Kenya for 'base fa­ force. An article in the armed forces cilities,' it is already in the process of Journal international argued that the Sau- quietly building up what is in effect a di rulers "face the prospect of having the forward base in Saudi Arabia." 24 world's most expensive military forces in During the last months of the Carter ad- terms of dollars paid for firepower deliv- ministration, u.s.-saudi military ties ered without being able to deal adequately grew even stronger, and the Saudi rulers with a single major regional threat." 18 _became more open in allowing the u.s. to In total, alioost 70 percent of Saudi de- use their country for military purposes. fense procurement expenditures since 1968 On February 5, 1980 Crown Prince Fahd in­ have been used to build up "military in- dicated to a visiting U.S. delegation frastructure, training base and manpower headed by Zbigniew Brzezinski that he was skill levels at American• advice," 19 and "very supportive of the American plan to 60 percent of U.S. military sales to. Saudi maintain a permanent military force" in Arabia in 1981 consist of services for the Middle East region. The New York Times construction of military facilities in wrote that u .s. officials "w� �ck by Saudi Arabia. the willingness of the Saudis to talk 36 - CounterSpy, May-July 1981

Approved For Release 2010/06/15: CIA-RDP90-00845R000100140007-5 Approved For Release 2010/06/15: CIA-RDP90-00845R000100140007-5 about cooperating in highly sensitive mil­ Speculations that Saudi Arabia might tary actions such as ways of countering have given information obtained by the what is seen as a Soviet and Cuban threat AWACS planes to Iraq isn't far-fetched. to Yemen, as well as aid to Afghan rebels In other ways, Saudi Arabia has given and Pakistan, and. enlarging American direct military aid to the Saddam military facilities... " In addition, the Hussein regime. According to Der Spie­ Times wrote that while "the Saudis have gel (10/20/80), thousands of trucks traditionally opposed foreign military shipped fuel for Iraqi MIG's from Saudi bases on their territory," reporters were Arabia, along with food and ammunition. told "that the United States understands The MIG's also used the U.S.-con- that if a military emergency in the region structed Tabuk air base in Saudi Arabia required the use of American forces, the in-between attacks on Iran. Saudis would allow their facilities to be used." 25 One member of the U.S. delega- SECURITY - _FOR� 1. tion said that the Saudi rulers recognize In spite of their support for an in- that a stronger American military presence creased U.S. military presence in the in tre Middle East "requires the use of Middle East, the Saudi rulers are not all additional facilities." Still, to cover that excited about the Rapid Deployment its flank, while the Saudi regime "is fa- Force (R.D.F.) tactic. In discussing "se­ vorably disposed to U.S. facilities..• it curity in the Persian-Arabian Gulf", the is not going to advertize the idea and may Saudi and U.S. governments have a somewhat even criticize it occasionally." 26 different emphasis. For the Saudi royal Thus it was that "purely for defensive family, it means primarily the continua­ purposes" the Pentagon announced that they tion of their rule. (Their "sensitivity" were sending four AWACS spy planes to Sau- about issues concerning the family was di Arabia on September 30, 1980. Counter- shown clearly when they kicked out the Spy has received two independent reports CIA Chief of station in Saudi Arabia for which say that there were more than four reporting about quarrels within the family AWACS in Saudi Arabia - in fact, there in 1979.) For the U.S., security in the were, at the height of the Iraq-Iran war, region is directed at the continuation of twenty AWACS. One Department of Defense an ample oil supply from Saudi Arabia, and employee who went to Saudi Arabia in late U.S. dominance. The two concerns overlap, December 1980 saw six AWACS standing on but they are not exactly the same, the Dhahran airfield alone. The R.D.F. itself would certainly not be The planes, which were allegedly there able to protect Saudi Arabia against for­ to protect Saudi Arabia from any "spill- eign. aggression. Moreover, '•there is a ... over" from the Iraq-Iran war were "offi- strong impression [throughout the Gulf ar­ cially �ccornpanied by 300 U.S. Air Force ea] that the U.S. might use it to seize personne1.27 (Since the official figure - control of the Saudi oil fields. The feel­ four AWACS - is wrong, it is likely that ing is that the R.D.F., combined with the for twenty AWACS the U.S. had to send con- U.S. advisory team in Saudi Arabia, is siderably .more than 300 personnel.) Ten more than adequate to make a quick grab days after the AWACS arrived, two tanker for the oil facilities in the Northeast aircraft left for Saudi Arabia which en- provinces and that the U.S. might well do abled the AWACS, with U.S. pilots, to stay this in the event of another oil embar­ airborne almost continuously by refueling go." 29 in flight.28 While it might seem highly speculative Officially, the AWACS were to provide to talk about a U.S. seizure of Saudi oil the Saudis with information about the Iraq fields, Pentagon planners are drawing up -Iran war relevant to their own security. just such contingency plans. As early as Independent from the strong possibility 1948, "U.S. officials decided that a se­ (or probability - see box) that the Saudis cret plan should be drawn up to destroy passed on that information to the Iraqi oil refineries and plug wells in the military which the Saudis support, the Middle East in the event of an outbreak of AWACS kept the U.S. informed in detail war with the Soviet Union •.. It was de- about the fighting, and it could thus be cided to advise neither the oil corpora­ argued that Saudi Arabia was serving as a tions nor the host countries of this potential forward military bc>.se for the plan." 30 U.S. Counterspy, May-July 1981 - J?

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Arguing that it would be impossible for procuring spare parts and providing main­ the Saudi military to defend the oil tenance much more complex. And, some of fields,31 the commander of the R.D.F., Lt. the on-going U.S. military programs in Gen. Paul Kelley openly advocates a "pre­ Sa�di Arabia will not be concluded before emptive strategy" and favors the deploy­ the end of this decade. This is true for ment of troops in any given area in anti­ the U.S. 'Army Corps of Engineers program cipation of a military conflict. Says which has been described as a "massive Kelley: ". • . once you get a force into an U.s. involvement in the activi_ties of an­ area that is not occupied by the other other country - an arrangement unparal,· guy, then you have changed the whole cal­ leled in time of peace." 36 Army Corps culus of the crisis." 32 Other U.S. gov­ of Engineer programs, for example, include ernment officials talk more openly about the designing of the King Khalid Military the possibility of the U.S. simply taking City, "one of the largest and most sophis,­ the oil fields. A 1979 Congressional Re­ ticated military installations in the port, while cautioning against military world." 37 seizures of oil fields concedes that if the government had decided to go ahead U.S. ARMY CORPS OF ENGINEERS anyway, "the desert kingdom" - Saudi Ara­ As it turns out, the Army Corps of Engi­ bia - would be "comparatively easy to in­ neers might be one of the most effective vade." 33 tools the U.S. has to penetrate and con- • Statements like these, threats by U.S. trol Saudi economic and military planning. officials in the wake of the 1973 oil em­ Its programs began in 1951 with the con­ bargo, and concern about becoming totally structiori of the U.S. Air Force base in dependent on - in effect being controlled Dhahran, and a civil air terminal severai by - the U.S. military have motivated the years later - both paid for with U.S. Saudi rulers to look for alternative funds. In August 1964, the State Depart­ sources of arms and advisors. The Saudi ment requested the Cq;rps to "provide the military has begun to buy huge quantities necessary engineering and construction: of arms and equipment from Britain and management services for designing and France. In February 1981, West German building certain military facilities in chancellor Helmut Schmidt said that he Saudi Arabia." 38 wanted to sell tanks to Saudi Arabia, and That year the Corps began the construc­ the Saudi regime is continuously pushing tion of military cantonments, including for closer military collaboration with housing for families, airfields and ports other conservative regimes in the area� for the Saudi Ministry of Defense and A key to building this regional alliance Aviation. The first cantonment, at Khamis­ i� the Saudi-Pakistani relationship. Paki­ Mushayt, was completed in 1971 and cos·t' · stani �resident Zia ul-Haq travels fre­ $81.4 million; a second cantonment at Ta­ quently to Riyadh, and the Pacific News buk was finished in 1973 for $81 million. Service reported in February 1981 that And a third cantonment, King Khalid Mili­ the Saudi regime agreed to pay ul-Haq up tary City will not be finished before to $1 billion in cash in exchange for mas-­ 1990. Located near Al Batin, the Corps 34 sive military support. Saudi Arabia al­ projected its cost in 1980 to be $8.1 bil­ ready has a "longstanding agreement" with lion.39 This military city will house some Pakistan for military training,35 and be­ 70,000 people; it is complete with an air­ tween 2,000 and 3,000 Pakistanis serve in field, missile ranges, training facilities the Saudi Army as mercenary soldiers. Un­ and ammunition storage facilities, and der the new agreement it is not expected "will give the Saudis a strong outpost on that a large number of additional Paki- their northern frontier and could serve as stani troops will be stationed in Saudi a staging area should military forces haYe Arabia. Rather, ul-Haq committed some of to be increased. in . t hat sensi , t' ive area. 1140 his troops to aid the Saudi royal family Other Corps of Engineers programs in if needed. Saudi Arabia include: construction of the After 30 years of close u.s.-saudf mili­ King Abdul Aziz Military Academy near Ri­ tary collaboration, however, the Saudis yadh and the Royal Saudi Air Force Head­ have no quick way out of their dependence quarters in Riyadh; an "Airborne and Phys­ on the U.S. Buying weapons from suppliers ical Training School" at Tabuk; deep water other than the U.S. makes the tasks of J?Orts at Jubail and Jeddah as part of the -38 - CounterSpy, May-July 1981

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Naval Expansion Program which is managed eastern oilfields - however, the untested by the U.S. Navy and will cost some $7 capability of the armed forces remains a billion; and assistance in construction of more important strategic consideration."44 military airfields as part of the U.S. Air In short: the U.S. is providing Saudi Force managed Peace Hawk and Peace Sun Arabia with a huge military infrastructure programs for U.S. F-5 and F-15 aircraft, and facilities for a·military force of respectively. The Corps has also been less than 50,000 men. To conclude that the working on the modernization of the Saudi Pentagon planners see this military infra­ Army's logistics system, and since 1973, structure as being at least useful to U.S. it has been responsible for designing and forces in a "crisis situation" is only constructing all facilities for the mod­ logical. Even some Saudi officials have ernization program of the Saudi Arabian begun to question the U.S. role in pushing National Guard which is directed by the for this huge and expensive military in­ U.S. Army Material. Development and Readi­ frastructure. They question whether it ness Command. "has given them the rate of improvement in Indeed, Saudi Arabia is "the largest military capability they need, and whether military construition program the Corps the U.S. has adequately considered the de­ has ever had." 4 The Middle East Divi­ terrent effect of having large numbers of sion of the Corps employs some 1,500 U.S. modern arms" in Saudi Arabia. Some Saudi officials; two thirds of them are sta­ officials fear that U.S. advisors placed tioned in Saudi Arabia. As Gen. James emphasis on constructing military instal­ Ellis, Division Engineer in the Corps, lations rather than acquiring more modern pointed out in a 1979 Congressional hear­ weapons in order "to keep Saudi Arabia ing, "Corps involvement in foreign con­ vulnerable and dependent." 45 struction programs is generally good news Dependence on the U.S. also reaches into for American design firms and suppliers, the area of so-called internal security. as well as American construction contrac­ The Saudi princes depend on U.S. intelli­ tors••• In our design, we use entirely gence and military and civilian advisors U.S. architect-engineer firms..• " 42 · from U.S. corporations to preserve their After initial approval of the projects, rule which - though long perceived as Saudi input into decision making about "rock-solid" by many Western observers - their execution is limited. Hence, the has been severely shaken over the last few question has been raised: Who is really years. benefitting from these huge installations - installations that do not, and perhaps THE OPPOSITION AND SAUDI INTELLIGENCE never will match the actual size of the On July 22, 1980 the Washington Post re­ Saudi military? U.S. and other architec­ ported that in January of the same year, a tural and construction corporations (Santa CIA analyst had given a briefing to jour­ Fe Engineering, Bechtel, Fluor •.. ) of nalists Roberta Hornig of the Washington co�rse, benefit since they get a lot of Star and Jane Whitmore of Newsweek. The business, and the infamous Saudi bribe analyst told them that the Saudi regime takers, including members of the royal "might collapse within two years." (The family, obtain millions of dollars. Still, briefing proved to be a serious embarrass­ the question remains: Does the construc­ ment for the CIA since it was given only a tion even serve the continuation of the few days before then-National Security Ad­ Saudi regime? visor Zbigniew Brzezinski was to travel For example, King Khalid Military City to Saudi Arabia. The CIA had to do some would, according to its proponents, "help convincing and threatening to get the Star to guarantee the armed forces' loyalty at and Newsweek not to publish the story, and times of domestic political unrest by sep­ former CIA Deputy Director Frank Carlucci arating them from the main centres of pop­ was forced to apologize LO the Saudi rul­ ulation."43 However, "in the longer term, ers.) there is the question of the city's Since World War II, and especially over strategic role." Conceived in the early the last few years, the Saudi royal family 1970s, "the project has to some extent has faced numerous difficulties. How�ver, been overtaken by the demands of the 1980s the progressive movement has not been able ••• The city could act as a focus for the to present a serious challenge to the re- kingdom's plan to defend the Gulf and its (cont. on pg.41) CounterSpy, May-July 1981 - 39

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VinnelCorporation It is an understood prerequisite that all the people Vinnell hires for the Sau­ The principal Saudi organization us.ed di Arabia National Guard Modernization to maintain the rule of the royal family Program are former career military as is the National Guard. The Guard monitors well as counterinsurgency and psychologi­ the Army and suppresses political af\d re­ cal operations experts. In essence, send­ ligious opposition. Like the military, it ing Vinnell to Saudi Arabia is "nothing In December is controlled by the U.S. less than the U.S. sending over our own 1972, the u.s. began the Saudi Arabian mercenary army." And that is exactly what National Guard (SANG) Modernization Pro­ Vinnell personnel arriving in Riyadh are gram, and in March 1973, the U.S. and told. During an introductory briefing at Saudi Arabia signed a "Memorandum of Un­ "Camp Vinnell", Vinnell's Donald Sampson derstanding" which detailed that the (Gen. u.S. Army, "retired") tells the em­ u.s. would design and construct Guard fa­ ployees: "You're executive mercenaries, cilities and equip and train the Guard and if you're here for any other reason under a Foreign Military Sales (FMS) pro­ than to make money, you should go home. gram. In January 1975, the Army Material we are not here to win the hearts and Command, for the first time, hired a pri­ minds of the people. The royal family vate company to conduct the training of pays us.• . and very well.• . to do their the Guard: Vinnell Corporation of Alham­ bidding. That is why we are here. It's bra, California. Fourty-one U.S. Army their show and we will do things as they personnel were assigned to the Vinnell dictate." Project "in a purely administrative ca­ Vinnell's contract ranges from the ac­ pacity." Both the U.s. and Saudi govern­ tual training of the troops in the use of ments wanted to avoid a close identifi­ their·u.s. supplied weapons to translat­ cation of the Saudi National Guard with ing U.S. Army manuals for the National the u.s. military by using a private Guard. (Actually, the manuals are first company. simplified in English and then translated not the first mili­ For Vinnell, it was into Arabic. The program has a double Time (2/24/ tary contract. According to purpose: the simplified English version a lucrative and 75) the company "enjoyed is for use by U.S. military recruits - thr{ving relationship with the U.S. mili­ paid for by the Saudi regime.) tary for the past 30 years" and '. con­ Presently, Vinnell has some 1,100 em­ structed military facilities in Japan, ployees in Saudi Arabia. It is expected Taiwan, Thailand, and South Vietnam. But that Vinnell's contract which originally their work in Vietnam was not limited to was only for the training of four batal­ construction. As a Pentagon officer told lions, will be extended, and within the the Village Voice (3/24/75): "When we next two or three years, 500 to 600 addi­ were pulling out of Vietnam, out of the tional employees will be hired. base camps and villages we held, this is A former Defense Department employee the way it worked: First we'd pull out was asked by Counterspy whether he the regular .•. unit assigned to the ar­ thought the training has been effective: ea, and replace it with a detachment of "I'm not at all impressed with the Na­ military police. Then we'd pull out the tional Guard••. There is no commitment to MP's, and in would go the Vinnell person­ support the monarchy. I get the feeling nel. In civilian clothes. They were that people are just parroting what they called rear security forces... The func­ have been told. There is loyalty only in tion they preformed for us was what we a sense that everybody pays lip service. conveniently termed 'clean-up,'.•.• how E'ITen the Americans pay only lip service they 'cleaned up' was pretty much up to _ to the royal family. The training is im­ them ... If we figured an area was certain posed on the National Guard ... But con­ to be overrun by the vc ••• they were to sidering whom Vinnell is training and demolish anything and everything." Vin­ what their political orientation is, nell was also aiding CIA operations in maybe they are doing a really fantastic Indochina. Said the Pentagon officer: job. But in terms of the same kind of "They were our own little mercenary army training, expenditure and resources with in Vietnam, and we used them to do things troops that really wanted the training, we-either didn't have the manpower to do 11 there's lightyears between the two." ours.elves,· or because of legal problems• 40 - Counter-Spy, May-July 1981

A proved For Release 2010/06/15: CIA-RDP90-00845R000100140007-5 Approved For Release 2010/06/15: CIA-RDP90-00845R000100140007-5 gime due to its la�k of organization and Unions" while Saud was eating a stuffed the extremely difficult objective condi­ lamb dinner prepared for him by ARAMC0.52 tions in Saudi Arabia. Another major rea­ The nationalist movement in Saudi Arabia son is the severe repression carried out was stimulated by Gamal Abdel Nasser's na­ by the Saudi rulers but often masterminded tionalist policies in Egypt such as na­ by foreigners. tionalization of the Suez Canal Company in The first sophisticated foreign intelli­ 1956. At the same time, the Saudi ruling gence agency working for the royal family family was going through serious internal was maintained by ARAMCO beginning in the conflicts which gave the fragmented oppo­ 4 1940s. 6 (In 1944, former Coordinator of sition groups greater opportunity. In re­ Information (COI, a predecessor to the sponse, the Saudi rulers established the CIA) officer Colonel William Eddy who had March 1961 State Security Law which pre­ a wide experience of intelligence opera­ scribed the death sentence or at least tions in the Middle East also became U.S. twenty-five years in prison for anyone ambassador to Saudi Arabia.47) ARAMCO and convicted of an "aggressive act" against its intelligence organization had to deal the royal family. In 1962, besides with a number of strikes beginning in strengthening the National Guard, the Sau­ 1953. The Saudi rulers became increasingly di rulers also "brought in U.S. intelli­ concerned and retaliated by arresting gence experts to cope with the growing whomever they wanted without any legal tide of left-wing activity." 53 In Decem­ process.48 ber 1966 bombs planted in several govern­ A secret State Department memorandum of ment and military buildings as well as at 1950 also said that Saudi King Abdul Aziz the office of the senior U.S. advisor in asked then-Assistant Secretary of State Riyadh resulted in the sacking of fifteen George McGhee for U.S. military aid "to army officers and the forced retirement of 4 assure internal security." 49 Six years the Riyadh Director of Police.5 later, following U.S. security assistance, Over the next years, arrests and execu­ a secret report prepared by the State De­ tions of Saudi citizens and deportations partment's Office of Intelligence Research of tens of thousands of foreign workers admitted that "the authoritarian and des­ took place. Helen Lackner writes in� potic features inherent in the Saudi tra­ House Built ---on Sand that U.S. and British ditions have tended .•. to increase dissi­ personnel participated in the interroga­ dence on all levels of Saudi Arabian soci­ tion and torture of Saudi Arabians ar­ ety •.. Dissatisfaction is focused largely rested in Riyadh. Increasingly, protests on the conspicuous consumption of public were directed against the U.S. During the funds by the royal family •.." The memo June 1967 war, the U.S. Consulate in Dh�h­ argued that while different political op­ ran was attacked; American clubs, military position groups did not have "sufficient barracks, cars, and recreation centers common ground on which to organize a unit­ were demolished, and the local ARAMCO ed opposition" the loyalty o·f the army was headquarters in Dhahran was burned. a "doubtful factor which endangers the The Saudi rulers have been.fairly suc­ 5 stability of the regime." 0 At the time, cessful in blacking out news about inter­ the Saudi rulers were also being advised nal opposition. This is especially true by Nazi Werner Otto von Hentig, a "West for reports about conflicts within the German national who was a key diplomatic royal family, and attempted coups from the ,figure in the Axis espionage and sabotage effort in the Near East during World The following Saudi police and intelli­ War II." 51 gence officers were trained in the FBI Despite its suppression, numerous oppo­ National Academy: Yakya Abdallah al sition groups grew out of the 1953 ARAMCO Muallimi (8/69); Hashim Abd Almwla (8/ strike, and ARAMCO was forced to give in 69); Dlayyim al Asiri (8/69); Muhammad to some of their demands. In 1956, how­ Din Halla! (7-8/70); Mustafa Izzat Hilmi ever, King Saud decreed that participation (7-8/70); Mustafa Ahmad Irqsus (8/69); in any strike was forbidden under penal�y Abd. al Ghani Hasan Jawah (7-8/70); Said of imprisonment. The. impetus for this de­ Kurdi (8/69); Khalil Muhammad Niyazi cree was a confrontation with thousands of (7-8/70); Naji Nuraldeon (7-8/70); Ali workers chanting "Down with American Impe­ Hassan Sayrafi (8/69); Hamad Abdallah al rialism" and "We want elected Trade urayfi (7-8/70). CounterSpy, May-July 1981 - 41

Approved For Release 2010/06/15: CIA-RDP90-00845R000100140007-5 Approved For Release 2010/06/15: CIA-RDP90-00845R000100140007-5 military. Presumably as a reflection of that the "Saudis ..• sought advice from increased internal problems, Saudi offi­ the large U.S. military training mission cials decided on July 7, 1979 to increase and the Corps of Engineers team," and their "financial allocations for news man­ "Saudi princes were in frequent telephone agement and disinformation campaigns in contact with U.S. officials during the Western Europe from $50 million to $100 siege." 58 million... [and] in the United States and A reliable report received by Counterspy Canada ... from $70 million to $140 mil­ says that Vinnell Corporation, a CIA­ lion." Much of this media campaign is car­ linked private security firm training the ried out through the Arab Media Council, Saudi National Guard, played a major role which was at one point headed by the for­ in defeating the Mecca insurgents. First, mer chief of Saudi intelligence, Sheikh the Saudi commanders sent in some Nation­ Kamal Ibrahim Adham.55 In a recent issue, al Guard troops that hadn't gone through the conservative International Currency the Vinnell training program. Casualties Review lists a number of attempted coups among these troops were reportedly very and defections by Saudi officers as well high, and they were not able to advance in as serious internal factionalism within spite their use of heavy weapons including the royal family which received negligible TOW missiles. Vinnell Corporation and the coverage in the Western media. U.S. Military Assistance Command personnel The Review argues that the events in .were eventually called in to support and Mecca in November, 1979 have to be seen advise the.modernized elements of the Na­ against a background of continuea infight­ tional Guard that had been brought in ing in the royal family and political and from distant posts for this mission. To­ religious opposition to their rule, and gether these two resources provided the not simply as an outbreak of religious fa­ beleaguered and inexperienced (though naticism. On November 20 several hundred "modernized"} National Guard units with men, denouncing the Saudi regime for its the tactical support needed to recapture corruptness took over the Grand Mosque in the Mosque. Mecca. The Saudi military and National The take-over and simultaneous anti-gov­ Guard were not able to put down the insur­ ernment demonstrations and "uprisings" 59 rection by themselves. in the oil producing provinces shook the Therefore, according to the French Le regime deeply. They led to the dismissal Point, King Khalid asked French President and replacement of high ranking govern­ Giscard D'Estaing to send a five member ment officials and a severe police crack­ French anti-terror squad which flew to down. To placate fundamentalist Muslim op­ Saudi Arabia on November 23 and directed ponents who criticize the corruptness of the final attack on the insurgents on De­ the Saudi rulers, Muslim laws and regula­ cember 3. Le Point says that one reason tions began to be enforced, more strictly. for the French aid was the friendship be­ The Saudi government also proclaimed a tween Saudi Interior Minister Prince Nayef campaign against corruption. Other mea­ and the head of the French intelligence sures included "an attempt to tighten in­ service (SDECE}, Count Alexandre de ternal security and intelligence gather­ Marenches. Several French security advi­ ing." 60 sors are now serving in the Saudi Interior In June 1980, Interior Minister Nayef Ministry, and Saudi Arabia and France have began �igning contracts for Saudi Arabia's a joint security committee. On the French $159 million internal security program. side, it includes Jean �ierre Richer of "Apparently the new program - as a result the Interior Ministry and Jacques Solier, of the Mecca/Medina conflict .•. - will be director general of the French national a�inistered by the Interior Minister and police; and on the Saudi side General Intelligence Chief Prince Turki and in­ Abdallah al ash-Shaykh, the director gen­ cludes a special anti-terrorist force •.. eral of security and Major Gen. Muhammad · This program includes helicopters, a wide al-Balla, the commander of the Special variety of police equipment (such as SWAT Security Forces.57 vans ... } and U.S. electronic security sys­ In addition to the French intervention, tems." 61 In addition, Saudi officials the Washington Post reported that "knowl­ asked the West German government to send edgeable sources" in Saudi Arabia said some elite GSG-9 "anti-terror" commandos 42 - CounterSpy, May-July 1981

Approved For Release 2010/06/15: CIA-RDP90-00845R000100140007-5 Approved For Release 2010/06/15: CIA-RDP90-00845R000100140007-5 to Saudi Arabia to train local troops.62 mentary system in Saudi Arabia) commented: Assistance for the Saudi intelligence also "We feel some pressure. We think it should comes from Raymond Close, former CIA stop. If not, the American establishment Chief of Station in Saudi Arabia who went will become involved with the Saudi intel­ on to become chief advisor to the Saudi ligence as they did with SAVAK••• of the intelligence in 1977. Close previously shah." served in Lebanon, Egypt (Alexandria and Cairo) and in Pakistan (Lahore and Rawal­ FOOTNOTES pindi). This year, Saudi intelligence will also 1) Activities of the � States ��of Engi­ begin using a sophisticated computer sys­ � � Saudi Arabia, Hearing before the Subcommittee tem supplied by the British multinational on Europe and the Middle East of the Committee on For­ eign Relations, U.S. House of Representatives, 96th company, Scientific Control Systems (Sci­ Congress, 1st session, 6/25/79, p.l. con), a subsidiary of British Petroleum. 2) MERIP Reports, Oct. 80, p.26. According to an investigation by the West 3) Defense and Economic� Report!. Survey, 5/12/ 80, No.752, p.4254/4. German Stern magazine and the British New 4) Proposed Aircraft Sales � �. §m!, � � Statesman, Saudi intelligence and Scicon Arabia, Hearings before the Committee on International signed a contract for the system in No­ Wrtions, U.S. House of Representatives, 95th Con­ gress, 2nd session, 5/8-10, 16/78, p.155. vember 1975 in what was "believed to be 5) Report to the Congress, Critical Factors Affecting the largest single contract ever awarded � Arabia's 2!,!_ Decisions, U.S. General Accounting to any European computer company." 63 Office, 5/12/78, p.35. 6) cf supra, #2, p.24. Computer centers are in Riyadh and Jed­ 7) Memorandum for the President, Summary of Conversa­ dah, with over twenty branch terminals, .E:2!! between Assistant Secretary of State George and with a liaison to British intelli­ C. McGhee and His Majesty King Ibn Saud of Saudi Ara­ gence and the CIA. Saudi intelligence can bia, 4/10/50. S)�ill�am J. K�nnedy, � History � the 9ll £2!!!_­ now maintain files on one million per­ panies � the � East, Documentary Publications, sons, and in 1975 alone, the number of Salisburg, NC, no date, p.iii. 9) ibid., p.vi. persons "on file" had grown by about 50 10) In an effort to destabilize Iran, Western percent to alm::>st 200,000. The sale of countries boycotted Iranian oil in 1953. the computers meant, of course, that 11) U.S. Department of State, Office of Intelligence Research, Division of Research for Near East, South British and U.S. intelligence had yet an­ Asia and Africa, Intelligence Report, Saudi Arabia: A other way to penetrate Saudi society and ' Disruptive Force in Western-Arab Relat� 2/18/56,­ to contribute to the repression. As the pp.15,16. 12) cf supra, #2, p.25. � Statesman pointed out: "The export of 13) Report to the Congress, Perspectives� Military any cryptographic equipment unless specif· Sales to Saudi Arabia, U.S. General Accounting Office, 10/26/77, pp.8,-9-. -- ically approved by the government is pro­ 14) ibid., p.9. hibited by British law. In this case all 15) ibid., pp.15 1 16. licenses are checked by Government Commu­ 16) ibid., p.18. 17) U.S. Department of Defense statistics, as quoted nication Headquarters (GCHQ), the moni­ in� forces Journal international, Sept.SO, p.47. toring agency based in Cheltenham •.. And 18) armed forces Journal international, Sept.SO, p. for anyone to believe that GCHQ would al­ 52. 19) ibid. low the export of cipher equipment that 20) � � Foreign Policy Objectives � �­ neither they - nor their U.S. equivalent, -� Military Installations, Report prepared for the the NSA - could break would stretch well Committee on Foreign Relations, U.S. Senate, by the 116 Congressional Research Service, Library of Congress,. beyond naivete. 4 April 1979, p.114. Completing the repression of any Saudi 21) Facts on File, 3/2/79, p.143. dissent, the CIA is "concerned" with Sau­ 22) see TheEcoiiomist, 10/13/79, 1i:68. 23) MEEDSpecial Report, � �, June 1979, p.3. di dissidents in the U.S. The Washington 24) � Arabia Newsletter, 6/30-7/13/80, pp.4,5. Post reported on July 22, 1980 that "a 25) New� Times (NYT), 2/6/80, p.A-11. -shadowy 26) Washington Post (WP), 2/6/80, p.A-7. international group ..• is stepping 27) WP, 10/1/80, p.A-14. up a propaganda campaign among the 13,000 28) WP, 10/12/80, p.A-8. Saudi students in the United States," and 29) cf supra, #18, p.51. 30) cf supra, #8, p.vi. that the CIA has notified the FBI of its 31) see Wall Street Journal, 1/21/80. '"interest" in the group. A spokesperson 32) MERI�p;;;;;:-Sept.80, p.5. for the organization, called "Sout al­ 33) Oil Imports: � Range of Policy Options, A Study prepared at the Request of the Subcommittee on Energy Taliah�- {voice of the Vanguard; it appears and Power of the Committee on Interstate Commerce, to be a progressive nationalist organiza­ U.S. House of Representatives, 96th Congress, 1st tion which calls for a democratic parlia- session, by the congressional Research Service, Nov. Counterspy, May-JuZy 1981 - 43

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1979, p.24. later became a consultant for ARAMCO and an "official 34) The �uardian (New York), 2/11/81, p.15. of the CIA-funded American Friends of the Middle 35) WP, 9/28/80, p.A-16. East." 36) U.S. ���Report, 10/18/76, p.77. 48) Helen Lackner, A House Built on Sand, Ithaca 37) !!!!_ Englander, Feb.77, p.27. Press, London, 1978-;- p.97. -- - -- 38) ��Intelligence Report, Foreign Military 49) cf supra, #7. Sales, Saudi Arabia, Summary, 1978, p.21. SO) cf supra, #11, pp.6,7. 39) Living !-.2, � � - � for S£!P!. of En­ 51) ibid., p.4. gineers Employees, U.S. Army Corps of Engineers, Mid­ 52) cf supra, #48, p.98. dle Eaat'Division,. August 80, p.3. Interestingly 53) ibid., p.99. enough, taking into consideration Saudi "sensitivity" 54) ibid., p.101: about U .s. support for Israel, maps in official Corps 55) International Currency Review, vol.11,no.6, p.51. Middle East Division publications leave out Israel. 56) as quoted in MERIP Reports, Oct.SO, pp.3,4. 40) cf supra, #36. 57) Saudi Press Agency, 5/7/80, as quoted in FBIS, 5/ 41) cf supra, �39, p.l. 9/ao, p.c-5. 42) cf supra, #1, pp.3,4. 58) WP, 2/5/80, p.A-11. 43) MEED, 8/1/80, p.10. 59) Washington Star, 8/21/80, p.A-6. 44 ) Tii'fci'. 60) cf supra, #58. 45) cf supra, #18, p.52. 61) Strategy Week, 6/2-8/80, p.3. 46) cf supra, *8, p.iv. 62) Philadelphia Inquirer, 2/6/80, p.ac. 47) a.· Harris Smith, OSS - The Secret History of Amer• 63) New Statesman, 3/23/79, p.384. ��Central Intelliserlce Ageney, Univers"i� 64} ibid, p.386. of California Press, Berkeley, CA, 1972, p.42. Eddy

Turkey:Torture for NATO by Konrad Ege

Following the September 12, 1980 mili- Rightwing terrorist groups like the Grey tary coup in Turkey most of the Western Wolves were encouraged and aided by large media willingly echoed Turkish military sectors of the military, police and intel- government statements that the overthrow ligence apparatus. The close collaboration of the elected government of Suleyman between the government and the fascist Demirel was necessary to restore democra- Grey Wolves was particularly visible dur­ cy. Under the headline, "Junta Leader Out- ing the last year of the Demirel govern­ lines Reforms to Save Turkish Democracy", ment in 1980. The Grey Wolves carried out the Washington Post, for one, accepted vicious assassination and terror campaigns General Kenan Evren's pronouncements that against suspected leftists with hardly any his military takeover was "not a coup governmental interference. d'etat as described in the history books" Indeed, the Turkish army and police but an "operation carried out to remove themselves were responsible for terrori-z- the threat to our democracy."1 ing a large part of the population. At the For years� the Western, corporate-con- time of the coup, one third of Turkey's· �7 trolled media has perpetuated a myth of a provinces, including Ankara, Istanbul, Iz­ Turkish democracy that was threatened by mir, and Adana as well as the Kurdish re- terrorism from the left and from the gion in the east were under martial law; right. While it is true that terrorism ex- and even before the coup, laws were ex­ isted - and exists - in Turkey (in 1979 tremely repressive and directed against and 1980 some 5,000 people were killed), progressive and Kurdish nationalist orga- most of it was carried out by extreme nizations. For instance, articles 141 and rightwing organizations, especially the 142 of the Penal Code provided 8 to 15 Grey Wolves and was sanctioned by right- year prison sentences for membership in wing governments and politicians. "organizations which advocate the domina- The roots of the virtual cdvil w:ar dur- tion of one class in society over another" ing 1979 and 1980 (up to 20 people were and the death penalty for "administering" killed per day as of mid-1980} were often such an organization. These two articles ignored in Western reporting: unemployment were frequently applied to Kurdish nation­ of more than 25 percent; an International alists and individuals who simply talk�d Monetary Fund-imposed austerity prog�am; about the Kurdish people in public. (About an inflation rate of over 100 percent; and 15 percent of the population in Turkey is ari oversized, repressive army with an "in- Kurdish.) Under articles 141 and 142, the flated and unaffordable force structure."2 activities of progressive parties and 44 - CounterSpy, May-July 1981

Approved For Release 2010/06/15: CIA-RDP90-00845R000100140007-5 Approved For Release 2010/06/15: CIA-RDP90-00845R000100140007-5 unions were severely curtailed and the and humiliating methods. Prisoners are Turkish Communist Party made illegal. An shot when they "try to escape", and some Amnesty International delegation found in have mysteriously "committed suicide." May 1980 that torture was "widespread and Three people, for example, have "acciden­ systematic" under the Demirel government. tally" fallen out of the same fifth floor After the September coup, the military window at the Security Headquarters in was careful to present a picture of Bursa. Another prisoner was said to "have cracking down on all terrorism. In fact, died of a brain hemorrhage after 'banging the leader of the extreme rightist Nation­ his head against his cell wall in a fit of alist Action Party, Alparslan Tilrkes was nervous depression' . " 10 detained and some of his Grey Wolves were Other cases, detailed in Turkey Today arrested. However, as the West German (London), include Ilhan Erdost, a promi­ weekly Der Spiegel had to admit, the mili­ nent left-wing publisher. He was beaten to tary is now moving primaril� against pro­ death in the Mamak military prison in An­ gressive labor unions,3 which have gained kara. Former Grey Wolf, Ali Yurtaslan, increasing strength. The popular leftist said about Mamak: "Our [Grey Wolf] lawyers labor federation DISK was banned, while had to visit the prisons at least once a Ttlrk-Is, a conservative union set up with week to smuggle in weapons and money [to the help of the AFL-CIO and trained in CIA the Grey Wolf prisonerEJ. , They also took -connected courses in the U.S., was not ..• the names of progressives who were in curtailed. Turk-Is' secretary general, prison to have them killed. However, there Sadek Side, was made Minister of Social was no need to smug�le weapons into•.. Security in the new regime4 while over Mamak, because the officers ... and sol- 11 2,000 members of DISK were arrested and diers there were already giving enough." many of them were tortured. In spite of his blindness in tne right � INVOLVEMENT IN THE 1980 COUP eye, Evren succeeded in convincing the The September 12, 1980 coup was the Western media that the army was acting as third time in recent history that the an impartial arbitrator. For people in Turkish military ousted an elected govern­ Turkey, reality is different. Evren's rule ment1 the first time was in 1960, and then is marked by a campaign of repression. Ac­ again in 1971 - both times with U.S. ap­ cording to the Financial Times, 10,000 proval. According to former Turkish for­ people were arrested in the first week af­ 5 eign ministe� Sabri Caglayangil, the 1971 ter the coup, and even the figures sup­ coup was "basically initiated and sup­ plied by the military show that a large ported by the CIA." He stated: "The Ameri­ number of the ten-thousands arrested in cans aren't concerned whether Turkey has a the following months are progressives and democratic .•. or fascist government. They Kurdish nationalists. Qn December 25, 1980 are only concerned about Turkey's strong 'the Martial Law Connnittee announced that ties to the and it being a U.S. sat- from September 10 to December 10, 29,995 u�s. 'ellite.11 12 In addition, Emin Deger, for­ people 6 By now, the had been arrested. merly a high-ranking advisor to the Turk­ estimated number of those detained is ish Defense Department, charged in his greater than 50,000 - a figure that does book CIA, Counter-Guerilla and Turkey that not even include arrests in Turkish Kurdi­ the CIA, acting through the Turkish intel­ stan because communication from that area 7 ligence agency MIT and a special military is drastically curtailed. unit, the Counter-Guerilla, was promoting Systematic torture continues in Turkish rightwing terrorist actions to destabilize prisons. According to Ali Yurtaslan, a the government and make way for military member of the Grey Wolves who defected, at rule in 1971.13 least one department in each prison i� un­ 'lbe U.S. role in the 1980 coup is less der the control of the extreme right. clear. However, the State Department's de­ "Detainees can expect to be tortured dur­ 11 ing a period of detention which can now nial of "any foreknowledge 14 appears last up to 90 days. 119 Torture includes strained particularly since Turkish Air Force commander General Tahsin Sahinkaya, beatings, electric shocks, tearing out of now a junta member, had been in Washington finger and toenails, burning, beatings of the soles of the feet and forced walking just prior to the coup. on salt or glass, and many other painful Whether or not there was any direct U.S. CounterSpy, May-July 1981 - 45

Approved For Release 2010/06/15: CIA-RDP90-00845R000100140007-5 Approved For Release 2010/06/15: CIA-RDP90-00845R000100140007-5 '· support for the coup, Carter administra­ Brussels.1116 But even the London Economist tion officials were quick to put their which praised Evren's coup, had to concede stamp of approval on Evren's government. that it "may be regrettable" since "the NATO maneuvers in Turkey went ahead as western alliance draws strength from its scheduled with only Belgium abstaining "in commitment to democratic institutions and view of recent developments in Turkey."· is morally weakened when the democratical­ NATO commander u.s. General Bernard Rogers ly elected government of a member country visited Turkey less than one month after is forcibly overthrown."17 the coup and held- talks with Evren, and For the 50,000 arrested, for the torture Turkish Deputy Premier Turgut �zal,who had victims, it is more than "regrettable" as been chief economic advisor to Demirel, once again,. in Turkey they are torturing went to Washington to.meet with Zbigniew for democracy and the U.S. and NATO are Brzezinski and International Monetary Fund standing by and applauding. and World Bank officials. International lending institutions and private banks al- FOOTNOTES so showed their support for Evren when he made clear that he would continue �zal's 1) Washington Post (WP), 10/17/80, p.A-21. IMF-imposed economic program of austerity 2) armed forces Journal international, June 1980. for the pe9ple and no restraints on for­ 3) Der Spiegel, 10/13/80, p.184. ·4) � Reports, January 1981, p.3. eign investments. 5) as quoted in People's � Service (London), 12/19/ Clearly, the September coup has served 80, p.21. 6) The Guardian (New York), 2/11/81, p.17. the interests of multinational corpora­ 7) seeInfo-Turk Agency, Bulletin, October 1980, p.6. tions and banks in the u.s. and Western 8) � Spiegel, 9/8/80, p.70. Europe as well .as, from a military point 9) People's News Service, 12/19/80, p.21. 10) Hiirriyet, 10/19/80, as quoted in cf supra, #9. of view, the NATO alliance. Once again, 11) cf suera, #8, p.74. NATO, which is supposed to defend democra­ 12) Frankfurter Rundschau, 3/31/78. cy, has a member which is ruled by a mili­ 13) ibid. 14) WP, 9/13/80, p.A-17. tary dictatorship. Not surprisingly, "the 15) WP, 9/16/80, p.A-19. news of the military coup in Turkey was· 16) Frankfurter Rundschau, 9/13/80, p.2. received with relief in NATO circles in 17) The Economist, 9/20/80, p.15.

CIA-Lebanon

"If the CIA can convince Reagan to adopt thousands of Palestinians in Tel al- its solution for the Arab-Israeli c�n- Zaatar. (The CIA, through its station in flict, then Lebanon is in for a rough Greece headed by Richard Welch, was one of time," according to The Middle East (Feb. the main suppliers of the Lebanese Front.) 1981). The magazine's editor Raphael Simultaneously with this attack, the Isra- Calis, bas�ng his allegations on leaked elis, fighting alongside rightwing Leba- CIA documents, wrote that CIA plans are nese leader Saad Haddad, would attack the already drawn up for the promotion of the 'sy.rian troops in southern Lebanon. Given "Jordan option," (creation of a West Bank the splits between Arab countries, it is entity under Jordanian-Israeli rule, ex- not at all assured that Iraq and Jordan c;-:luding the PLO) which includes "weakening would assist Syria. In that case, the de- of the Palestinians in the Middle East. feat'for Syria and the PLO could be seri- And since Lebanon is the only bastion ous. ·where the Palestinians are concentrated, However, 'Raphael Calis wrote, people ,in ••• the showdown is bound to be on Leba- Lebanon are tired of fighting, and are not nese soil." in the least interested ii) making Lebanon Under the CIA supported plan, the Pha- "the stage for another confrontation," and langists would move into West Beirut and some of the internal parties involved in drive the Palestinians south. The CIA ''has the Lebanese conflict are negotiating to confidence" in the rightwing Lebanese prevent Lebanon from being torn up in a Front based on their performance in the conflict benefitting mainly Israel and the civil war of 1975-76, when they massacred U.S. 46 - CounterSpy, May-July 1981

Approved For Release 2010/06/15: CIA-RDP90-00845R000100140007-5 Approved For Release 2010/06/15: CIA-RDP90-00845R000100140007-5 MOSSADTerrorism The Israeli government is extremely ner­ tinian and other Arab leaders who are vous about the arrest of a MOSSAD opera­ critical of Israel's expansionist poli­ tive on January 2, 1981 in Limossol, Cy­ cies. Hovsepian also linked the assassina­ prus. The operative, carrying a Canadian tion attempt to stepped-up Israeli attacks passport with the name Michael Anthony on Lebanon and aid to rightwing Lebanese Bevin, was arrested in connection with the forces, and said that MOSSAD's terrorism bombing of a car belonging to a political­ is intended to provoke retaliatory actions ly active Palestinian, Hani al-Hindi. In­ by Palestinian groups, which, in turn, can credibly, Hindi was not killed when 20 be used to justify increased repression pounds of TNT exploded under his car. and attacks on Palestinian camps in Leba­ "Bevin" confessed during questioning by non. Cypriot police that he had placed the ex­ The arrest of a MOSSAD operative in Cy­ plosives, and that he had been involved in prus � who after all, confessed committing other assassinations and assassination the crimes - is proving to be a problem attempts in Europe. for the Israeli government. It has hired Hindi's assassination had been planned three top lawyers to defend him, and has since late 1977. He had been a minister in even offered to withdraw its recognition the Syrian government in 1963, and has of the Turkish-occupied part of Cyprus - worked in Arab nationalist movements for which would constitute a major diplomatic 30 years. Until 1970, Hindi was a politi­ victory for Cyprus - in exchange for free­ cal and military planner in the Palestin­ ing "Bevin. 11 So far the Cypriot Attorney ian movement. Since then he has remained General has decided to proceed with the in the background while working with the case. Institute of Arab Research in Beirut. The assassina-t:ion attempt and the subse­ A colleague of Hindi's, Nubar Hovsepian quent arrest of "Bevin" has received wide stated in a recent interview with WPFW ra­ publicity in the Third World, Eastern and dio in Washington, D.C. that he believes Western Europe, and even Canada. The U.S. this attack on Hindi may signal the begin­ media, and the "terrorism as top priority" ning of an all-out war by Israel on Pales- Reagan administration have ignored it.

ASIO Names

Similar to bills pending in the U.S. To the rich he gives good cheer; Congress, Australia has a strict Official To the poor he gives the sack. Secrets Act which forbids the naming of Mellow messages abound, intelligence officers. However, there Peace on earth, to all, good will, might be a way to get around the law as The Christmas spirit is around, exemplified by Joan Coxsedge, a courageous Either brewed or from the·still. Labor Party member of the Victoria State Parliament. Now is the time to send my lope There is a tradition that Labor repre­ To all my friends, no matter where, sentatives read Christmas poems during the Who watch below or watch above, last session of Parliament before holi­ I watch them watch me here and there. days. Last December, Joan Coxsedge read Each trench-coat hides a soul so fair, one of her poems, and it was duly re­ How come that I should quibble printed in the official Parliamentary rec­ ord. What her colleagues had missed is With men Zike Charlie Francis Bare, Joe Quigley or the brothers Gribble? that the poem contained the names of no fewer than three ASIO (Australian Security I thank them and I thank you all; Intelligence Organi7ation) officers. I hope that 'Bl will bring Each member of this noble hall C"hristmas time once more is here; . - Except the Liberals - everything. Father Christmas, too, is back. Counterspy, May-July 1981 - 47

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ASIO is Australia's secret political po- er. There are savage and increasing cut­ lice and, according to the Committee for backs in public spendi�g such as educa- the Abolition of Political Police (CAPP, tion, social welfare, public transport, 8 Leicester Street, North Balwyn 3104, etc .•••In support of this official vio- Australia}, targets "anyone to the left of lence, radical elements are being weeded Adolf Hitler." ASIO works closely with out in industry, the Public Service and in U.S. intelligence agencies, and its rec- political organizations." ords are "an open book to the FBI and the "Every exposure of secret agencies is a CIA." positive contribution towards political A few days after Coxsedge read her poem, freedom. Remember, the names appearing somec:>ne brok,e into her office. Coxsedge [below] are not members of· a bene-volent said that the break-in.was carried out by society but are enemies of social pro­ ASlO as a "direct result" of her revela- gress." tions. She stated that it was inte�ded as a warning: "Nothing was taken in the raid Linden Charles ADAMSON but they definitely went through my'of­ 7 Metung Court, Dingley fice, leaving the lights on when they Barry Thomas Albert BANKS left." 77 Rollinghills Road, Chirnside Park, Joan Coxsedge has a long record of ex­ Lilydale posing Australian intelligence agencies. She is one of the leaders of CAPP; and in Tudor Harvey BARNETT a recent press release she reported that 17 Mount Ida Avenue, East Hawthorn tpe departur.e of the CIA Chief of Station Gary Michael BEHM in Australia, Michael c. Sednaoui, was im­ 32 Royal Street, Chatswood minent. (Sednaoui served in Morocco for most of his career, and in Italy as Deputy John Charles BEHM (retired) Chief of Station.} Coxsedge links his 22 Werder Street, Box Hill leaving t9 on-going revelations about CIA Ian Stuart Charles BRYCE involvement in the Nugan Hand affair (see 364 Auburn Road, Hawthorn Counterspy, Nov.BO-Jan.Bl} and stated that "it would be extremely embarrassing for Bruce CAMPBELL top CIA personnel, �uch as,Michael 21 Plantation Avenue, East Brighton Sednaoui, to be present in Australia when George CLEGG the full Nugan Hand story finally blows." Flat 12, 49 Kensington Road, South Yarra A few weeks before the. "ASIO Act" - which makes the publication of the names Allan Leslie COLLYER of ASIO officers a crime - Wis proclaimed 42 South Road, Brighton Beach last year, CAPP released the following John William OONLEVY list of ASIO staff. CAPP outlined why the 18/240 Domain Road, South Yarra Australian government saw a need to re­ strict freedom of the press. (CAPP's ex­ John Cecil ELLIOT planation is equally applicable to present Beryl Vera FOOKES moves ip the U.S. Congress to outlaw the 28 Pine Street, East Brighton naming of CIA and FBI officers and agents.}: "All around the world, capital­ Donald FRASER ist economi�s are failing. Those in power David Christopher FRY cannot provide solutions, but are prepar­ 4 Corona Street, Ivanhoe ing for the unrest that could arise as more ordinary working people feel the ef­ John Francis GARV� fects of technology, inflation, unemploy­ 6 Ontario Street, North Caulfield ment, corruption, union bashing, pollution Roy E. HEATH and. bureaucratic pressures. " CAPP al.so ad­ 5 Spencer Place, Chatswood dressed arguments that political police are necessary to cu�b political terrorism: Peter John HEGARTY "Political violence is already being in­ 15 Jennings Street, Sandringham flicted on Australians. At the expense of Stephen Charles HOCKING working people, the rich are getting rich- 19 Gladswood Gardens, Double Bay' 48 - Counterspy, May-JuZy 1981

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Gordon Henry JIEAR Leslie Allen THO�.AS 25 Chalmers Street, McKinnon 3 Brae Grove, Nunawading James Robert LANDMAN Morris Fraser TUCK 8 Rankin Street, Campbell, ACT 21 Balmoral Crescent, Surrey Hills Kenneth Norman W. LAWRY R. J. WARBY 38 Fraser Street, Glen Waverly 38 Austin Avenue, North Curl Curl

John Raymond MACE 5 Head Street, Balwyn ASIO: Made in USA Howard MILLER The following is a letter from Brigadier lA Glana Court, Ringwood North Sir Charles Spry (Director General of ASIO from 1950 to 1970) to former CIA Director William Major MONKHOUSE Allen Dulles. It was written on ASIO sta­ 52 Cole Street, Elwood tionery (G.P.O. Box No.5105BB, Melbourne). Darwin Kennedy MULES The Jim Angleton referred to in the letter 14 Barnard Grove, North Kew is James Jesus Angleton, the CIA's Chief of Counterintelligence from 1954 to 1974. Francis Xavier MURPHY Angleton, who was considered rightwing 9 Chaddesley Avenue, East St. Kilda even within the CIA, was forced to retire Blair NEINABER in December 1974 in the wake of revela­ 28 Alexandria Avenue, Canterbury tions of illegal CIA operations. Thomas Charles NICHOLS 16 January, 1969. 44 Winifred. Street, Oak Park Dear AZZen, Robert John ORR I was so sorry to hear that you were in 80 Blackwood Avenue, Mentone hospital. I do sincerely trust that you Thomas Hardy PALETHORPE are making a speedy recovery. I was very 6 Sandgate Road, Blackburn South disappointed that I missed seeing you on my Zast trip to the States. I do not feel Geoffrey Churchill PALMER that any of my visits to the U.S.A. are 682 Inkerman Road, North Caulfield complete without such an honour. Lindsay Michael PATTERSON I shall never cease to be grateful to 8 Elmwood Crescent, Glen Waverly you for the initiation and development of relations between your Service and mine. I Douglas Seaton PRATT consider, without reservations, that this Flat 1, 32 Iris Road, Glen Iris was the turning point which has enabled John Barrie ROSS-PERRIER A.S.I.O. to reach the level of sophistica­ 40 Hanby Street, Brighton tion which it now enjoys. Jim Angleton and others have continued to assist us. I al­ Murray Cooper RUSSELL ways consider you as the No.1 Honorary 41 Lusk Drive, Vermont Australian in our Organization, and Jim Leslie James RYAN No. 2. 612 Mowbray Road, Lane Cove We have now moved into our new building (and I hope our final resting place). The Leslie Canberra SCOTT Government has been more than generous and 8 Morotai Crescent, Castlecrag we have most opulent surroundings. I do Howard Mil.:on SMALL ernestly (sic) hope that you may come to 10 Inga Street, Burwood see us. There could not be a more welcome guest. Colin Douglas SMITH May both Kathleen and I wish you all the 51 Peacock Street, Seaforth most healthful good wishes for the New Reginald Sydney SPEAR Year. 3 Wallis Avenue, Glen Iris With warmest regards, James Thomas STEVENS Yours very sincerely 87 Harold Street, Albert Park /signed/ (C.C.F. SPRY) CounterSpy, May-July 1981 - 49

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"police state in which police forces are RCMP Updates powers unto themselves," an RCMP officer has to be prepared "to chose between the The Royal Canadian Mounted Police (RCMP) law and neglecting his duty." Cobb con­ was created under its present name in tinued: "We are taught a basic methology 1920, but its origins date back to 1873 when we join the service, and we never as­ when it was called the North West Mounted sociateII certain functions with illegali­ Police (NWMP). One of, the main tasks of ty. the NWMP - which began as a military orga­ Another RCMP officer told an official nization - was to "relocate" Native people investigatory commission that: "Mounties in reservations and to open up Canada's have been trained to beli�ve that the RCMP Northwest for the colonists. Up to the Act overrides all other Canadian legisla­ present, the RCMP has preserved a quasi.­ tion." Ex-RCMP Corporal Jack Ramsey de­ military structure. Officially, it has two scribed it evfan more bluntly when he wrote main functions: 1) it enforces federal that an RCMP member "must place the force laws in all of Canada, and, in addition, ahead of truth, justice, and service to performs all criminal police functions in the people of Canada •.. " Commented Edward eight of Canada's ten provinces as well as Mann and John Lee in RCMP Vs. The People: the North West Territories and the Y\lkon1 "Thus an officer's order under the RCMP 2) it serves as a counter-espionage force. Act would authorize the violation of any Like the FBI and the CIA in the U.S., Canadian law. " the RCMP often has interpreted its mandate It is no surprise that with such a men­ to extend well beyond th.e law. Former RCMP tality the RCMP has engaged in numerous Superintendent Donald Cobb, for one, illegal activities: Mail openings, break­ spelled it out when he told the Toronto ins, thefts, huggings, wire tappings, ar­ Star that even though he doesn't like a son, forgeries, bombings, and beatings. In 1981 as in every year since 1954 The RCMP systematically surveils and of­ 0 ten disrupts labor unions; Quebec nation­ alist, Native American, and Black activist AFRJCA organizations; the National Farmers' TCXN\Y is in the vanguard Union; progressive political parties; and of analysis and interpretation community organizations. of African affairs. In summer 1977, two commissions were created to investigate RCMP activities; must be on the reading list of every concerned Africanist scholar one, headed by Jean Francois Keable, on Da\•id Wiley ..Vlich1gan State Universrty high standards of scholarshtp diversity fJf concern the provincial level in Quebec; and ·the usefulness to specialists and laymen other, on a national Victor T. Le Vine. Washington University level, headed by Jus­ 1n the vanguard oj analysis and awareness tice David McDonald. According to the To­ M. Timothy Shaw. Dalhousie Universit.v ronto�, "a significant body of opinion George W Shepherd. Jr., Tilden J. LeMelle, editor� ... believes that the commission was a Edward A. Hawley. executive editor ploy of Ottawa to cover up or shelve em­ barrassing cases of police abuse and po­ 80 or more pages 1n each quarterly issue litical responsibility." Jean Paul articles. book rev,ews. new publications Brodeur, himself a member of the Keable SUBSCRIPTION RATES Commission, wrote that "it may not be un­ fair to say the McDonald Commission was Individuals lnst1tut1ons initially created by the federal govern­ North & I yr. Sl0.00 SlS.00 ment to justify its reluctance to cooper­ SouthAmerica 2yr S19.00 S27.50 3 yr S26.00 S37.50 ate with the Keable Commission" which was Student (I yr.) S 7.50 announced one month before the McDonald Elsewhere AddS2.00 per year tor surfacemail. Commission. Add SS.50 peryear for air mad. In spite of these and other shortcomings AFRICA TODAY both Commissions revealed a good deal ab­ c.'o GraduateSchoof of out RCMP illegalities, and, most imper� InternationalStudies tantly, for the first time raised serious University of Denver Denver. Colorado 80208 questions about the true nature of the • RCMP. Unfortunately, most of the Canadian media didn't pick up where the official 50 - Counterspy, May-July 1981

Approved For Release 2010/06/15: CIA-RDP90-00845R000100140007-5 Approved For Release 2010/06/15: CIA-RDP90-00845R000100140007-5 investigation left off and preferred to RCMP SS officer himself) and told him that focus on individual wrongdoing by RCMP of­ the three were socialists. ficers. Likewise, most politicians pre­ Pratt & Whitney, a United Technology ferred to get rid of a few highly visible subsidiary, first justified the firings on culprits but left the structure of the the basis of a "surplus of workers", but RCMP untouched. wasn't able to get away with that version; One area that needs more examination is so it accused LeRougetel, Chabot and the RCMP's close collaboration with the Stevenson with trying to create "distur­ CIA and the FBI, and its maintenance of bances." However, J.C. Roy, head of "In­ extensive files on Canadians. The RCMP has dustrial Relations" hasn't been able to computerized fingerprints of over 1.5 mil­ substantiate these claims either. The lion persons, and an unspecified number of three were productive workers (LeRougetel files on individuals are kept at the Cana­ was even offered a promotion), and they dian Police Information Centre (CPIC), lo­ are unionists, feminists, and socialists. cated in the RCMP headquarters. CPIC is Since the politically motivated firings, part of an integrated international com­ the RCMP has tried to cover up and legiti­ puterized system based in Washington, D.C. mate its involvement ·in the case. Canada's Unlimited access to these files is given Solicitor General, Robert Kaplan, took to Interpol, the international police or­ four months to answer a letter by Svend ganization headquartered in Paris, and the Robinson, a New Democratic Party member of FBI and CIA. FBI and RCMP i•routinely ex­ Parliament, regarding RCMP involvement in change information placed in electronic the firings. Kaplan's reply is illustra­ files on people, vehicles, and other tive of the way Canada's government is things." handling their version of the U.S. Freedom These facts clearly support the conclu­ of Information Act. Under the so-called sion of Mann and Lee in RCMP Vs. The Peo­ Human Rights Act, the federal government ple that "no other organizati�i�na<;ia is required to "allow individual Canadians is so well placed, so well equipped, with to review information held about them in so little countervailing control" as the federal information banks." However, there RCMP; its "quasimilitary structure would is one exception - citizens don't have -the prove eminently adaptable for a police right to look at files that involve "the state's functioning." matter of national security," which, of course, includes information from spying SOURCES on progressive orga�izations and unions. First Kaplan informed Robinson (rather Jean Paul Brodeur, "Police Abuse in Canada", --CILIP (West Berlin), No.6, 1980, pp.27-31. hypocritically) that he was not allowed to Michael Kieran, "Security Becomes Technical", -The give him information about RCMP su:tveil- Globe and Mail (Toronto), 11/3/80, p.21. Stephe�andelman, "The Doubts Remain as Mountie Probe 1ance o f th e th ree women b ecause: "I an d Ends", Toronto star, 7/13/80. the RCMP are bound by the Human Rights Act Edward Mann and John Lee, RCMP � The People, General to protect the privacy of individuals••• " Publishing co. Ltd.• Don Mills' Ontario, 1979· Lorne and Caroline Brown, An Unauthorized History of Kaplan argued that information like that the RCMP, James Lorimer and co. , Toronto, 1973. can only be given to the individuals them- - - _ ------selves. But: "It is my understanding that Pratt & Whitney a direct request for personal information by Misses LeRougetel, Chabot and Stevenson Months after three workers - Suzanne for security related information would in Ch abot, Wendy Stevenson, and Katy LeRouge-, all likelihood be denied on the basis of tel - were fired from their jobs at Pratt national security." Kaplan, of course, did & Whitney Aircraft in Longeuil, Quebec, in not explain how union activism and other November 1979, the Quebec Human Rights legal political activities were connected Commission revealed that the fi�ings took to Canada's national security. He con­ place after the Royal Canadian Mounted Po­ cluded his letter by assuring Robinson lice (RCMP) had informed Pratt & Whitney that "to the best of my knowledge, activi­ management that the three were leftists. ties of the RCMP Security Service are An RCMP officer of the Security Service maintained within the mandate as autho­ (SS) Division, Fernand Brault, had con­ rized by Cabinet in 1975." (Letter as tac .._ ed Jacques St. Pierre, head of inter­ quoted in Socialist Voice) nal security at Pratt & Whitney (a former Former Solicitor General Warren Allmand Counterspy, May-July 1981 - 51

Approved For Release 2010/06/15: CIA-RDP90-00845R000100140007-5 Approved For Release 2010/06/15: CIA-RDP90-00845R000100140007-5 disagrees: "••• the mandate is fairly eled on himself and that the description is clear••. the Security Service is not sup- damaging to his reputation. posed to survey individuals merely because Immediately after Bennett announced his they belong to a socialist party or an suit, Gage withdrew the book from the mar- agrarian party or some other kind of par- ket even though sales had been going ex- ty." tremely well. Bennett demanded $2.2 million These firings have provoked a consider- in damages and a permanent injunction to able public reaction. The Quebec Human stop distribution of the book. Bennett's Rights Commission ruled them politically- libel suit constituted the first such case motivated, and local 510 of the United in Canada against a work of fiction. Adams Auto Workers (UAW) filed a grievance which refused to reveal the names of persons who resulted in arbitration hearings. The Com- had assisted him in researching the back­ mittee to Defend the Pratt 3 is giving ground to the novel, even after the Ontario support to the three workers and educating Supreme Court ordered him to do so. Canadi­ the public about the far-reaching implica- an writers quickly realized that this tions of the case. The Committee can be court order presented a serious threat to contacted at 4271 Chambord, Montreal, their rights. Organizations like the Asso- Quebec. ciation of Canadian Publishers and the ------Writers' Union of Canada strongly defended TheWorthington-Bennett Case Adams' rights to protect his sources. The Union also established a Defense Fund to "The United States manipulates every help Adams cover legal costs.· other area ot our lives, we shouldn't h ave In December 1980, the Bennett suit was too much trouble accomodating ourselves to settled out ot court. Gage paid $30,000 to the fact that the CIA manipulated our in- Bennett, and Adcuns allowed a note to be telligence services all these years. • . So inserted in the book: "S is not Leslie what? It's all part of being a colony." James Bennett." The settlement, however, These words conclude a remarkable novel: failed to explain why Bennett took Adams "S: Portrait of a Spy; RCMP Intelligence - to court in the first place. An article in The Inside Story," written by Ian Adams a .recent issue of ThisMagazine throws some and published in November 1977. light on the case. II Adams tells the story of "S," the former "S was published at a time when the qi.rector of the Royal Canadian Mounted Po- RCMP ss was under unprecedented attack for lice Security Service (RCMP SS). "S" turns its illegal operations. It was clearly on out to be a KGB agent who is discovered by the defensive, and "S" had the potential the CIA and turned around to work -for the of further damaging the RCMP's image. A U.S. The RCMP is not informed about his suit against Adams would divert the public being a double agent, and it takes them attention from the revelations of RCMP several years to discover that fact. The crimes, and, therefore, was in the inter- RCMP eventually expells "S" but choses est of the RCMP. not to go public with the story or to put When "S" was published, Bennett was liv- him on trial. ing in Perth, Australia. He was informed "S: Portrait of a Spy" - though a novel - ab out the book by three letters from his is alpo an unprecedented expose of the friend Peter Worthington, a·reactionary RCMP's massive surveillance and suppres- Canadian newspaper publisher and long-time sion of trade unions and political organi- RCMP collaborator (see box). In the first zations, as well as other RCMP illegal ac- letter, dated November 14, 1977, tivities stemming from its reactionary Worthington told Bennett that he is the ideology. Adams did extensive background "S" in the novel and that he was identi­ research on the RCMP before writing "s,• fied on TV. Even though he hadn't seen the which eventually got him involved in a long book yet, Worthington concluded that there drawn-out court case. He and his publisher, "may be grounds for libel. " Actually, the Gage Publishing Ltd., were sued for libel TV interview in which Bennett was "identi- by a former head of the RCMP SS, Leslie fied" was a pure invention by Worthington. James Bennett. Bennett, who had to resign The second Worthington letter was even from the RCMP in 1972 after intensive in- more direct: "If I were you I'd alert your terrogation and now lives in Australia, lawyer - if you have one• •• I kind of be- claims that the "S" in Adams' novel is mod- lieve. • • that if you don't defend your own 52 - CounterSpy, May-July 1981

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Peter Worthington's close relationship Worthington's article, the RCMP was with the RCMP goes back to the early forced to return som� of the files to 1960s when he was tne Moscow correspon­ Praxis, but refused to disclose its in­ dent for the Toronto Telegram. In 1969 foPmation about the original theft be­ cause. "internal security would be he served as an RCMP mouthpiece when " Bennett, then a high-ranking RCMP SS of­ threatened. ficer, leaked him a story about activi­ In another incident, in March 1978, ties of suspected Soviet agents in Cana­ Worthington wrote a column describing da. In 1971� Worthington became editor­ "sixteen. separate incidents of Soviet in-chief of the Toronto Sun·which he espionage and attempted subversion" in forged into a powerful rightwing tabloid Canada. His article was based on a "Top Secret" government report leaked to the by using a commercially successful for­ - mula of crime and sex stories and ex­ Sun. Ian Adams of ThisMagazine which printed the whole document two years ploitative pictures of women. (In 1977, - Worthington opened a similar tabloid in later concluded that even if it was a Edmonton, and in 1979 he took over the genuine RCMP paper, it ,contained at best Calgary Albertan� which makes him one of "meagre sweepings of discarded informa­ the most powerful newspaper publishers tion, structured and written in the style of RC'MP manuals used at SS train­ in Canada.) .." Following are two highlights of Peter ing courses . But leaked to Worthington's collaborative relationship Worthington, and used in a sensational­ with the RCMP: In December 1970, ''per­ istic article, it has "all the tradi­ sons unknown" broke into the office of tional eaPmarks of disinformation bait, Praxis Corporation (a corrorrunity organi� designed to divert attention from the zation involved in issues like day care SS's real ••. domestic scandals and to and tenants rights; at the time of the remind Canadians of the RCMP's mythic break-in, Praxis was organizing a na­ struggle with Corrorrunism." tional poor people's conference), stole Printed at a time when the RCMP was carefully selected files, and then under severe attack for its illegal op­ started a fire. The police were unable erations, the Worthington column served to solve this crime, but Worthington several purposes: it drew attention away wrote on February 4, 1977 in the Toronto from the RCMP crimes being revealed; it Sun that he had been given the stolen brought back the Red Scare; and told the files two weeks after the break-in. public "that an intelligence apparo:tus Without infoPming Praxis, he had turned that could unveil such dastardly activi­ them over to the RCMP. After ties of the Soviets should be left well enough alone." name, no one else will. . . If there is any- identified Bennett as "S." for the first thing I can do - regardless of what the time. Bennett, whose information was based 'truth' is ·- let me know. " Worthington on the three Wo.rthington letters, was un- outlined the story of the book to Bennett aware of this fact until the pre-trial ex­ but he "makes it sound as though Bennett amination long after he had filed suit. is a character in the novel. Yet Bennett Worthington ts role in encouraging is nowhere mentioned in the novel and up Bennett to sue makes him a key figure in to this time no one had publicly linked this case. His past history as close RCMP Bennett to the character in the novel." collaborator and mouthpiece raises seri- (ThisMagazine, December 80) ous - and, so far, unanswered - questions In the third letter on November 19, 1977 about direct RCMP involvement in the libel Worthington told Bennett that he had al- suit. ready contacted a lawyer, and virtually asked Bennett to take Adams to court. Only one day after this letter, Bennett was identified publicly as "S" for the first time: by Peter Worthington in his paper, the Toronto�- Thus Worthington, the very person who had urged Bennett to sue Adams for libel was the one who publicly Counterspy, May-July 1981 - 53

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Reagan administration officials seemed tion's perception, that undoubtedly·in­ annoyed when a draft of the proposed Exec­ cludes all progressive organizations and utive Order (E.O.) on inteUigence agen­ solidarity groups. cies was leaked to the media in early Several sections of the draft order are. March 1981. CIA· Deputy Director Bobby contrary even to the recommendations of Inman told reporters assembled at CIA the Rockefeller Commission which said headquarters that the draft contained that "Presidents should refrain from di­ "aU kinds of ideas." However, Inman ac­ recting the CIA to perform what are essen­ knowledged that a draft for a new E.O. on tiaUy internal security tasks." Ronald lnteUigence is being prepared in response Reagan was a member of the Commission and to an explicit order from the White House joined in this recommendation. in January 1981. "The new administration After considerable public outrage at the has read a great deal in the years out of draft order, Inman and other administra­ office about the state of U.S. intelli­ tion officials including White House coun­ gence and, particularly questions about selor Edi.uin Meese were quick to asser� our current ability in regard to dealing that "the White House is absolutely op­ with terrorism and the whole area of coun­ posed to the CIA becoming involved in do­ terintelligence. Inman said the White mestic spying. " Meese also dismissed the House requested all intelligence agencies importance of the draft order. However, to assess "the impact of current restric­ both Inman and Meese acknowledged that tions" and the effect of these restric­ "Reagan soon wiU issue an executive order tions being lifted. meant to improve the CIA's ability to The intelligence working group which gather intelligence abroad," and Inman drafted the proposed E.O. is headed by CIA added that "some new measures would proba­ general counsel Daniel Silver - which sug­ bly be necessary to control the threat of gests that at least one high ranking offi­ terrorism." While he maintained that the cial is somewhat in agreement with the new E.O. (which will replace Carter's E.O. draft. Still, Inman emphasized that nei­ 12036, signed on January 24, 1978) will ther he nor CIA Director William Casey not give the CIA greater authority at were involved in the drafting and that home, Inman had to acknowledge that "vari­ they were not "actively seeking" some of ous inteUigence agencies" had told him the changes in the order. that "legal restrictions on domestic spy­ If signed by Reagan, the E.O. would give ing and very intrusive techniques" dimin­ the CIA wide-ranging powers to use "intru­ ished the agencies' capabilities. (It sive" techniques (bPeak-ins, etc.), and to should be recalled that Inman headed the conduct intelligence investigations di­ National Security Agency before he was ap­ rected at U.S. citizens and residents (in pointed CIA Deputy Director by Reagan. The spite of the clear language of the 194? NSA illegally monitors almost all long­ National Security Act that the CIA "shaU distance telecommunications of U.S. citi­ have no police, subpoena, law enforcement zens.) powers, or inter>nal security functions). Even if the administration were to back The order would further allow the CIA to away from plans to increase the CIA's do­ conduct physical surveillance operations mestic power, there are a number of other in the U.S.; to obtain confidential re­ provisions in the draft order that would cords (e.g. tax returns); infiltrate U.S. bring this country several steps closer to organizations, and "affect the activi­ being a Police State. The FBI would be al­ ties" (e.g. disruptions, smear campaigns) lowed to investigate and "affect the ac­ of organizations headed by foreigners or • tivities" of organizations which may be consisting of U.S. persons which are be­ acting for a foreign power or "engaging in lieved to be working "for or on behalf of · international terrorist activity." Under a foreign organization or government," this olause, the FBI-'s investigation of even if all the organization's activities politioal groups oould be conduoted simply are perfectly legal. In the administra- on the basis of an ideologioal evaluation 54 - CounterSpy, May-July 1981

Approved For Release 2010/06/15: CIA-RDP90-00845R000100140007-5 Approved For Release 2010/06/15: CIA-RDP90-00845R000100140007-5 of an organization by the White House. is essential to informed decision-making And given the far-right ideology of the in the areas of national defense and for- administration, that could, for example, eign relations. The measures employed to even subject the Catholic Bishops to acquire such information should be re- COINTELPRO type harassment for their op- sponsive to legitimate governmental needs position to U.S. military int�rvention in and be conducted in a manner that respects El Salvador. established concepts of privacy and civil The d,r,aft order and the actual E.O. liberties. Reagan will sign do not come in a vaccum. "2-102. Principles of Interpretation. It is only natural that an administration Sections 2-201 through 2-309 set forth its militaPy which is tPying to expand to governing principles which, in addition to power abroad and is extremely hostile other applicable laws, are intended to liberation movements will have to crack achieve the proper balance between protec- down on dissent in the U.S. Already, op- ·tion of'individual interests and acquisi­ position to Reagan's economic policies of tion of essential information. Those sec­ aiding the rich and taking from the poor, tions govern the conduct of specific ac­ and his interventionist policy abroad are tivities within the Intelligence Communi� encountering increasing opposttion in the ty. Those sections shall not be construed U.S. Reagan wants to prepare for it by as affecting or restricting other lawful giving more power to the intelligence acti,rities of intelligence components not agencies and stepping up surveillance and otherwise addressed therein. Nothing in repression. Whether or not he will be sue- this Order shall affect the law enforce- cessful is in the hands of the people. ment responsibilities of any department or agency. Any collection activity conducted for a law enforcement purpose may be han­ EXECUTIVE ORDER ___ _ dled in accordance with relevant law en- forcement procedures, as appropriate. STANDARDS FOR THE CONDUCT OF UNITED STATES INTELLIGENCE ACTIVITIES ''2. 2. Use of Certain Collection Tech- niques. By virtue of the authority vested in me u2-261. General Provisions. by the Constitution and statutes of the United States of America, including the (a) The activities described in sections National Security Act of 1947, as amended, 2-202 through 2-207 shall be undertaken in and as President of the United States of accordance with this Order and procedures America, in order to provide for the ef­ established by the head of the agency con­ cerned and determined by the Attorney Gen­ fective conduct of United States intelli­ eral not to violate the constitution or gence activities and the protection of constitutional rights, it is hereby or­ statutes of the United States. Those pro­ dered follows: cedures shall protect constitutional as rights, limit use of such information to Section 1 lawful governmental purposes and, to the extent consistent with the intellige�ce 1-1. Amendment of Section 2 of Executive needs of the United States, accomodate Order 12036. privacy. No agency head shall establish 1-101. Executive Order 12036 is hereby any procedure which the Attorney General amended by deleting section 2 entitled determines to be �nlawful under the Con­ "Restriction on Intelligence Activities" stitution or statutes of the United and inserting in lieu thereof: States. (b) The Attorney·General hereby is dele- "Section 2 gated the power to approve the use, for "CONDUCT OF INTELLIGENCE ACTIVITIES intelligence purposes, of any technique for which a warrant would be required if• "2-1. General undertaken for law enforcement purposes, "2-101.. Purpose. Information about the provided th�t such a�tivities shall no� be capabilities, intentions and activities of unde:taken in the United States or against wi a foreign powers, organizations, or persons a United States person abroad thout CounterSpy, May-July 1981 - 55

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judicial warrant, unless the Attorney Gen- within the Intelligence community outside eral has determined that under the circum- the United States and directed against stances the activity is lawful under the United States persons, shall be undertaken Constitution and statutes of the United only as permitted by procedures estab- States. The Attorney General may approve lished pursuant to section 2-201. the use of such techniques by category or "2-204. Mail Surveillance. No agency delegate authority head to the of any· within theInt elligence Community shall agency within the Intelligence Community , . . open mai.1 or examine enve 1 opes in u pi't e d to approve the use of such techniques. in . St a t es pos ta 1 c hanne 1 s, except in · accor- accordance with procedures approved by the dance with applicable statutes and regula- Attorney General. t'ions. No agency wi'th' in th e Inte11· 1.gence "2-202. Electronic Surveillance. An Community shall open mail of a United agency within the Intelligence Community States person that is outside U.S. postal �ay engage in electronic surveillance di­ channels except as permitted by procedures rected against a United States person established pursuant to section 2-201. abroad or designed to intercept a communi­ "2-205. Physical Surveillance. The FBI cation s.ent from, or intended for receipt may conduct physical surveillance (includ­ within, the United States, but only in ac­ ing the use of monitoring devices for cordanqe with procedures established pursuant to section 2-201. Any electronic which a warrant would not be required for law enforcement purposes) directed .surveillance, as defined in the Foreign against United States persons or others in Intelligence Surveillance Act of 1978, the course of a lawful investigation. Oth­ shall be conducted in accordance with that Act as well as this Order. The CIA may en­ er agencies within the Intelligence Commu­ nity may undertake physical surveillance gage in electronic surveillance activity (including the use of monitoring devices within the·united States only for the pur­ pose of assisting, and in coordination for which a warrant would not be required with, another agency within the Intelli­ for law enforcement purposes) directed against a United States.person if: gence Community authorized to conduct such electronic surveillance, bl.it this prohibi­ (a) The surveillance is conducted.out­ tion sha11·not apply to the activities de­ side the United States in the course of a scribed in the remainder of this para­ lawful foreign intelligence, counterin­ graph. Training of personnel by agencies telligence, international narcotics or in­ within the Intelligence Community in the ternational terrorism investigation; use of electronic surveillance equipment, testing by such agencies of such equip­ (b) That person is being surveilled for the purpose of protecting foreign intelli­ ment, and the use of measures to determine gence and counterintelligence sources and the existence and capability of such sur­ methods from unauthorized disclosure or is veillance equipment being used unlawfully the subject of a lawful counterintelli­ shall not be prohibited and shall also be gence or p�rsonal, physical or communica­ governed by such procedures. Such activi­ tions· security investigation; or ties shall be limited in scope and dura­ tion to those necessary to carry out the (c) The surveillance is conducted solely training, testing or countermeasures pur­ for the purpose •Of identifying a person P?se, provided that intelligence informa­ who is in contact with someone described tion derived during the training of per­ in subsection (a) or (b) of this section. sonnel or the testing of electronic sur- Surveillance in the United States shall be veillance equipment may be disseminated in coordinated with the FBI if directed at a accordance with procedures developed person other than a present employee, in­ pursuant to section 2-207. telligerlce agency contractor or employee "2-203. Physical Searches. Any uncon­ of such contractor, or a military person sented physical search within the United employed by a non-intelligence element of St.ates by an agency within the Intelli­ a military service. gence Community shall be coordinated with the FBI. All such searches, including "2-206. Undisclosed Participation in�­ those conducted by the FBI, as well as all mestic Organizations. In accordance with procedures established under section such sear�hes conducted by any agency 56 - CounteI'Spy, May-July 1981

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2-201, employees of agencies within the which is needed to protect foreign intel­ Intelligence Community may join, or other- ligence or counterintelligence sources or wise participate in an organization within methods from unauthorized disclosure; the United States on behalf of an agency (d) Information needed solely to identi­ within the InteJligence Community for any fy individuals in contact with those per­ lawful purpose without disclosing their sons described in paragraph (c) of this intelligence affiliation to appropriate section or in contact with someone who is officials of the organization, provided: the subject of a lawful foreign intelli­ (a) Participation by any agency other gence or counterintelligence investiga- than the FBI for purposes of acquiring in­ tion; formation about the organization or any (e) Information concerning persons who United States person who is a member are reasonably believed to be potential thereof is strictly limited in its nature, scope and duration to a lawful purpose re­ sources or contacts, but only for the pur­ lated to foreign intelligence and nondis­ pose of determining the suitability or closure is necessary to achieve that pur­ credibility of such persons; pose; and (f) Information constituting foreign in­ (b) Participation by the CIA for pur­ telligence or counterintelligence gathered poses of affecting the activities of t.he abroad or from electronic surveillance organization is limited to attaining le­ conducted in compliance with section 2-202 gitimate foreign intelligence objectives or gathered by lawful means in the United when the appropriate officials to whom States; disclosure normally would be made are for­ (g) Intormation about a person who has eign nationals or the organization in­ acted or may be acting on behalf of a for­ volved is owned or controlled by a foreign eign power, has engaged or may be engaging organization or government or is working in international terrorist or narcotics for or on behalf of a foreign organization activities, or has endangered the safety or government and such participation is of any person protected by the United conducted in a manner that provides due States Secret Service or the Department of protection for constitutional rights. State, or may be endangering the safety of "2-207. Collection of Nonpublicly Avail­ any person; able Information. An agency within the In­ (h) Information acquired by overhead re­ telligence Community may collect, retain connaissance not directed at specific in files on identifiable United States United States persons; persons, or disseminate information for intelligence or counterintelligence pur­ (i) Information concerning United States poses concerning the activities of United persons abroad that is obtained in re­ States persons that is not available pub­ sponse to requests from the Department of licly, only if it does so with their con­ State for support of its consular respon­ sent or as permitted by procedures estab­ sibilities relating to the welfare of lished pursuant to section 2-201. Those those persons; procedures shall limit collection, reten­ (j) Information collected, received, tion in files on identifiable United disseminated or stored ny the FBI and nec­ States persons, and dissemination to the cessary to fulfil its lawful investigative following types of information: responsibilities; or (a) Information concerning corporations {k) Information concerning persons or or other commercial organizations or ac­ activities that pose a credible threat to tivities that constitutes foreign intel­ any facility or personnel of any agency ligence or counterintelligence; within the Intelligence Community or any (b) Information arising out of a lawful department containing such an agency. counterintelligence or personnel, physi­ In addition, those procedures shall permit cal or communications security investiga­ an agency within the Intelligence Commu­ tion; nity to disseminate information, other (c) Information concerning persons, de­ than information derived from signals in­ rived from any lawful investigatio;1, telligence, to another agency within the CounterSpy, May-JuZy 1981 - 57

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Intelligence Community for purposes of al­ any special activity unless the President lowing the recipient agency to determine determines, with the SCC's advice, that whether the information is relevant to its another agency is more likely to achieve a lawful responsibilities and can be re­ particular objective. tained by it. "2-307. Restrictions on Assistance to Law Enforcement Authorities. Agencies­ "2.3. Additional Principles. within the Intelligence Communi�y other "2-301. Tax Information. Agencies within than the FBI shall not, except as express­ the Intelligence Community may examine tax ly authorized by law or section 2-308: returns or tax information only as permit- (a) Provide services, equipment, person­ ted by applicable law. nel or facilities to the Law Enfordement "2.302. Human Experimentation. No agency Assistance Administration (or its succes­ within the Intelligence Community shall sor agencies) or to state or local police sponsor, contract for, or conduct research organizations of the United States; or on human subjects except in accordance (b) Participate in or fund any law en­ with guidelines issued by the Department forcement activity within the United of Health and Human Services. The sub­ States. ject's informed consent shall be docu­ mented as required by those guidelines. "2-308. Permissible Assistance to Law Enforcement Authorities. The restrictions "2-303. Contracting. Ho agency within in section 2-307 shall not preclude: the Intelligence Community shall enter in­ to a contract or arrangement for the pro­ (a) Cooperation with appropriate law en­ vision of goods or services wit}:l private forcement agencies for the purpose of pro­ companies or institutions in the United tecting the personnel, information and fa­ States unless the agency sponsorship is cilities of any agency within the Intelli- known to the appropriate offic1als of the gence Community; company or institution. In the case of any (bl Participation in law enforcement ac­ company or institution other than an aca­ tivities in accordance with law and this demic institution, intelligence agency Order, to investigate or prevent clandes­ sponsorship may be concealed where it is tine intelligence activities by foreign determined, pursuant to procedures ap­ powers, or international terrorist or nar­ proved by the agency head, that such con­ cotics activities; or cealment is necessary for authorized in­ telligence purposes. (c) Provision of specialized equipment, technical knowledge, or assistance of ex­ "2-304. Personnel Assigned to Other pert personnel for use by any department Agencies. An employee detailed to another or agency or, when lives are endangered, agency within the federal government shall to support local law enforcement agencies. be responsible to the host agency and shall not report to the parent agency on "2-309. Permissible Dissemination and the affairs of the host agency unless so Storage of Information. Nothing in sec:­ directed by the host agency. The head of tions 2-201 through 2-308 of this Order the host agency, and any successor, shall shall prohibit: be informed of the employee's relation­ (a) Dissemination to appropriate law en­ ship with the parent agency. forcement agencies of information which "2-305. Prohibition on Assassinations. may indicate involvement in activities No person employed by or acting on behalf that may violate federal, state or foreign of the United States Government shall en­ laws; gage in, or conspire to engage in, assas­ (b) Storage of information required by sination. law to be retained; "2-306. Special Activities. No compo­ (c) Dissemination of information covered nent of the United States Government ex­ by section. 2-207 to agencies within the cept an agency within the Intelligence Intelligence Community or entities of co­ Community may conduct any special activi­ operating foreign governments; or ty. No such agency except the CIA (or the military ��rvices in wartime) may conduct (d) Lawful storage or dissemination of 58 - CounterSpy, May-July 1981

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information for administrative purposes." 4-209(c).

Section 2 2-108. Section 4-212 of Executive Order 12036 is amended by deleting the words 2-1. Miscellaneous Amendments. "conducted abroad" after "activities." 2-101. Section 1-706 of Executive Order 2-109. Section 4-214 of Executive Order 12036 is amended to read as follows: 12036 is amended to read as follows: "Each agency within the Intelligence "United States person means a citizen of Community shall furnish to the FBI and to the United States, an alien physically Federal law enforcement agencies informa­ present in the United States who is known tion needed by such agencies in the per­ by the intelligence agency concerned to be a formance of their duties, in accordance permanent resident alien, an unincorpo­ with procedures agreed to by the heads of rated association substantially composed both of the departments or agencies con­ of United States citizens, or a corpora­ cerned." tion incorporated in the United States, unless such corporation is controlled by 2-102. Section 1-801 of Executive Order one or more foreign powers, persons or 1 2036 is amended by deleting the words "At- _..;:_organizations." torney General" and substituting therefore ______the words "Director of the Federal Bureau From of Investigation." the Editors If your label reads "R53" or "L53," this 2-103. Section 1-805 of Executive Order is your last issue of Counterspy.Please re- 12036 is amended by deleting the words af- new right away. In spite of increasing ter "FBI"'and substituting the words postage costs, we have not increased our "pursuant to procedures agreed upon by the subscription rates (with the exception of Director of Central Intelligence and the Canada and Mexico - see back cover). How­ Director of the Federal Bureau of Investi- ever, the higher postage rates are a fi- gation." nancial strain for us - so if you can 2-104. Sections 3-305 of Executive Order spare some dollars, please ... 12036 is amended to read as follows: We believe that Counterspy provides you with important information you don't get "Determine, as required by this Order, anywhere else, and certainly not in the that procedures established by the heads of cor�orate-owned media. We thank all our agencies within the Intelligence Community readers for their generous contributions are consistent with the Constitution and and the many encouraging letters. Your statutes of the United States." continued support helps maintain a solid 2-105. Section 4-105 is amended to read financial and political base. as follows: THE KILLING OF KAREN �:: r:,J,(iiOCD - �'HE ,c:-,no:,y "·•-til the procedures required by amend­ BEHIND THE KERFi�EPiJ]foiviuit :'ASF '.:,'nts :,,, this Order have been established, by Richard :iashke ':::1c acti v:: ties authorized and regulated �erein shall be conducted in accordance "In 1974, Karen Silkwood was killed on with procedures heretofore approved or her way to meet a New York Times re­ agreed to by the Attorney General pursuant porter. She had said she would be bring­ to this Order. Procedures required by ing him documents which would show that amendments to this Order shall be estab­ her employer was manufacturing defective lished as expeditiously as possible." nuclear fuel rods. The FBI called her �-106. Secticn 4-202 of Executive Order death an accident, but evidence (revealed L2036 is amend,,, � by adding a comma after for the first time in this book) indi­ ' espi:)nage," de le ting the word "and" after cates it wasn't." "espior.age," ar.J by deleting the word· ORDER N)w· _..:·rom KAREN SILKWOOD F!'ND "clande,-,tine." 1324 N. Capitol Sfrer::.t Nn' 2-10�. Section 4-209 of Executive Order 'w'ashingtcn, r:. C. ,-:0002 12036 is amended by ir.serting the words for> $12.95 (includes $1 for> pcs zni "occurs ir-. a foreign country or" before handling). P1•0 fits go tc fuvthe1' edu�?a­ the word "transcends" in subsection tiona Z effovts a.round this.issue. C'ounter>Spy, May-Ju Zy 1981 - ,sg

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