APPROVED FOR RELEASED DATE: HAILAYQB1‘.2410;11 24-Sep-2009 5 APR 1970

• .1 's Civilian Facade ‘.;

Gives It Latitude in .' affiliates; • the 'other through • charter arrangements under the "Were all one family," Mr. : guise of contracts with A.1.D. Doole said. "You cant tell one • By RICHARD HALLORAN Gleanings from those contracts, from the other. We tie them which have been made available together with contracts and; sv"w la The other Government agencies con- to The New York Times, show WASHINGTON, April 4As; trolled and secure transport. On dont even keep separate books the extent of the operations. except for tax purposes." the American-supported clan- the economic side, commercial The C.I.A. declines to com- destine army went on the at ,work enables. .the company to • Air America and its affiliates !keep its large fleet busy when ment on this subject, and AD.I appear to be self-sustaining tack in again this week, officials refuse to discuss In- operations In that they are paid part might he idle. telligence operations. pilots of a flamboyant airline . The outfit exudes an air of by AID, and commercial cll. Mr. Doole, in an Interview, ants for their work. Because called Air America took to the Oriental adventure out of Mil- brushed the matter aside. "lf skies once again to • move ton Caitiffs comic strip "Terry someone • out there is behind more than 50 per cent of it is, troops, provide supplies and and the Pkatea." It has the done under Government cans flamboyance of the late Lieut. all this," he said, "we dont tract, It, impossible to say evacuate wounded. know about it." Gen. Claire L. Chennaults war- • whether -the line makes a prof- Air America is a flight charter time , from which Incorporated In Delaware it in the commercial sense. company that, like the clan- It is descended. Working for Air The parent company of Mr Moreover, its financial transac- destine army, Is widely consid- America demands the resource- America is the Pacific Corpora- tions and earnings are unavail- ered to be the servant of the ful skill of the bush pilots who tion,. which was incorporated able because the Pacific Corpo- United States Central Intelli- have explored the unknown In Delaware in 1950 with ration. being closely held, does beaches of northern Canada, the $10,000. • Mr. Poole said the not have to report them pub- gence Agency. South American highlands that shares were privately held, licly. With its assorted fleet of 167 Africa. . • mostly by the five members of The boards of directors of. aircraft, Air America performs • Those who have seen Air the board of directors. The cor- the companies are closely tied diverse missions across East Americas pilots on the job in poration and its subsidiaries together. Most of the directors Asia from Korea to Indonesia. Asia say they have a sense of employ about 9,300 people. serve on several boards, which It Is believed to be a majorlink dedication and duty. They take The !Pacific Corporation owns are made up of reputable busi- more than routine risks and 100 per cent of Air America, nessmen chosen to give the en-. for the CIAs extensive activi- some have gone down hi Asian which is also a Delaware cor- tire complex respectability and ties throughout Asia. jungles, not to be seen again. poration founded in IVA. The a cover that looks genuine. Air America parachutes Meo line owns 125 aircraft and • Samuel A. Walker, chairman Asian Art on the Wells • of the Pacific Corporation, is a tribesmen and other secret. • • Most of . the companys air- leases 42 more. It employs gents behind North Vietnamese 4,700 . people, some 400 managing partner of Joseph craft, like those of regular air- of them pilots, and has bases Walker a Sons. a New York lines In Laos, trains mechanics lines, carry its name, though in . Okihawa, , South banking house. He is also a di- for the aviation division of the some are unmarked. The fleet , and Laos. rector of Air America. • national police in Thailand, Includes long-haul jets, the C-46 and C-47 propeller craft that Air America, in turn owns 99 Pilots Are Greatest Asset •uls American aid cargo for per cent of Mr Asia, which was The chairman of were the workhorses of World set up on Taiwan in 1955. Air- Air America the Agency for International. War II, a variety of helicopters and Air Asia is Adm. Felix B. lopment in South Vietnan.. and the latest in single-engine Asia claims the finest aircraft Stump, who was commander in maintenance and repairi facility chief of forces ferries and twin-engine utility planes. in Ada, at Tainan. • men from Okinawa to japait .Air America also . borrows Air the Pacific Cor- In the Pacific from 1953 to rce pliane.s. • . In addition, 1959, Mr. Doole holds the titles and South Korea, and dispatches i Fon poration owns 40 per cent of of president of the Pacific Cor- l ne s headquarters In , incorporat- :M wl looks Mich - like poration and chief executive of 'intelligence flights from Taiwan as e ed Under Chinese Nationalist Air America and Air Asia. Went the coast of Commun ist ithe offices of other medium- law on Taiwan. it was A:landed .. • size businessesconservatively Robert G. Goelet, William A. in 1946 by General amend:It, Read and Arthur B. Richardson The company also transports idressed executives, miniskirted the United States air commas-. are directors of all three com- helicopters from France and secretaries, bits of Asian art on der in China during World War panies. Mr. Goelet has exten- Italy for assembly in Southeastthe • walls, a reddish-orange car- II who died in 1958, and is sive holdings in New York real , pet to lend a touch of cheer. . manned by many of the pilots Asia. flies PresPectore leenual The chief executive of Air estate, Mr. Read is a retired who flew with the Plying member of • for copper and geologists • America is George A. Doole Jr., the investment searching for oil. In Indonesia, a low-key 60-year-old business- Tigers against daring the house of Dillon, Read Co, . man who holds a masters de- war. • and Mr. Richardson was for- and P Civil Air Transport, known rovides Pilots for °Vint"_ glee from the School of Busi- meriy president of e Chese- cial airlines such as. Air Viet; nails Administration at Harvard. as CAT., which originall y func- brough-Ponds. tioned as a regular airline as nam and Thai Airways and 1 Before joining Air America in Air Americas greatest assets for well as carrying out clandestine are its pilots mostly Americans , .which Is on 1953 he was the chief pilot for missions, is also generally be- Taiwan. • Pan American and pioneered but including some Chinese and Air Americas civilian facade trans-Atlantic lair routes before lieved to have been operated Thais. • permits the United States to do World War II. ■ • and partly financed -Sy United "We hire the same pilots that things that would otherwise be in Asia the general manager States intelligence agencies. Air Pan American and United WM" impossible or, at least, political- Is Hue L. Grundy, 55, who is America took over C.A.T. in Mr. Doole said. "except that IF embarrassing. The 1962 Ge- described by acquaintances as 1950. ogre are 4 bit moreouR• imv When the Chinese .National- enced.1 ,. • • • •• neva accords, for instance,0- a quiet, shy man. He too is an hibit foreign military aircraft in alumnus of pan American, bay. ists wanted to establish a Chi- tba "bosh Laos but they say nothing about log been an engineer with the newrun airline, CA.T, had to 0 civilian planes. he facade also line before war and then get Out of the passenger bubusi- the ness.Most of its other opera- averts public attention In court- having served in China. His dons have since been absorbed tries such as Japan that are • headquarters IS in , • sensitive to the American mill- Taiwan. • • ,. by Air America but it still files some special inhales. tary presence. • The CIA: evidently has at Merck also a separate op. Then toOtint lligence se ces least two channels into Mr • e rvi waling division of Al, America • Defitinflefl. the world OM my ahoy!! Americaone through the hold. mown I Pacific used businesses as a amt.. Air ing company atop the corporals, Mark gives the CLA..And sh29tme of AirsOutpdalan ditn.1161. 114104 ilblicorl.,!:Ln pilot." remarking that many, vet as the best fighters in Laos while the French-trained Vietnamese and Chit . rrlf •nonfilers consider it a term Laotian Army was considered It was from Udon that Thal:,. for a low-grade man. lethargic. troops were flown into Laos bys•• He contended that his pilots Air America a couple of weekre, were not adventurers but a Logistic Support Expanded ago to reinforce General . Venal A As the Pathet Lao, aided by Paos troops, which had been well•disciplined, professional the North Vietnamese, became pushed off the Plaine des Janes., flying organization, but then he more hostile, the Mess were by the North Vietnamese. . , relented a bit "Maybe theres formed into the clandestine Air Americas latest contract a little atmosphere of dace- army and given better weapons for Vietnam, signed last oc.,1„ lure, but theres damn little of and training. They could not tober, .calls for about 43 air- 1 that." grow food and fight at the craft, including C-46S andn At another point he said: same time, so logistic suppoit C-47S, helicopters and smell •? "Our work is more demanding by Air America was expanded. planes. They haul large loads.. of the pilot and he gets more The big push came in October, of A.I.D. supplies all over the tun out of the, irregular jobs in 1968, when it appeared that country and support clandestine. • remote places. Besides, one of the North Vietnamese and the missions, awing them those or . the dreariest Jobe in the world Pathet Lao were preparing a the montagnards of Centres: 1today is flying a 707 across the major offensive. AID. con- Vietnam. • • • . , tricted with Air America for Despite the connection be": Atlantic." greater warehousing, ramp, pas- tween the C.I.A. arid Air Amer- • • • . • Mr. Doole conceded that Ey- senger and control-tower serv- Ica and the Use /of . the aid Ins for Air America had its ices at the airport. agency as a cover, sources ! • : • :risks. "But we make a real busi- The contract also called on Air A.I.D. here said they have seert ness of knowing where pot to America for more drops to sup- no damage to genuine aid IMP. ? 4 .get shot at," he said. "Thats an port clandestine agents and sions in countries sensitive te.: • ;essential part of our bag of guerrilla teams. the C.I.A.,s presence. .. tricks." A second contract expanded Some sources said privately,j Air Americas pilots are well Air Americas flying services. however, that they would a< e paid. After six months many The company hid in Laos four be surprised If _eyebrows .were t make $20,000 to $30,000 a year, twin-engine C=46S, plus hell- raised. They Indicated thit the:, • • plus extras for hazardous Ws- copters and small utility planes. subject had caused:. soma s Mons. "Thats a little more than It was required to have more condos la .the aldlasenoy • the pilot and his wife hoped for planes on call from bases out- tbat noddatitad - when he was looking for a job," side Laos and could draw on about It. ts. ■ Mr. Doole said. . , Like conventional lines, Mr planes furnished by the Gov. America says it draws most ernment. New contracts in October, , of its pilots from those leaving 1969, required still more air- . the Air Force. Other sources say craft and services and a large • that some of the pilots are still expansion of ground equipment, . . In service. According to these oil storage, warehousing, office . s, .1: • ... repeals, they go .through the space and vehicles. - motions of. leaving the Ak, . The expansion of the tom., Force, don civilian clothes—and municaUon.1the. seizure sy stem, n followinkrame doe.. collect the higher lay—and ,tures by General . Vans PieS1 then return to the h. Fern! :forces last summer, was parcg. when their assignments who -ticularly noticeable. • •—.. Air America are finished- From the first A.! I). contractf •another charter in march. 1963 through Sep. tinental Air Services, performs umber, Ogg Air America witei, SOMO of the WOO missions OS paid $52.9-million, but the Air America but on a smaller ore far from, tolls the ato scale. It is owned and operated ahme most of the companys . , by Continental Airlines of Angeles, a regular commercial1.0s communications ground facilities, equipment fuel. vehicles and company.. housing was furnished by the4 A third charter carrier h agency._ Air America Transport, also be lieved to be controlled by the-I provided planes and people. ,to C.I.A. It flew missions in the • Build-Up in Thailand • a, Caribbean in the early nineteen- in Thailand, Air Americas.,i sixties and now carries militaryt build-up paralleled that in Lacsic; personnel and cargo from Tokyo In March, 1967, it began train- . to . ing mechanics for the aviatimq. As for Air America, the coo- division of the Thai Nationat. tinuous expansion of its activity Police, which has been advised In Laos Isince 1962 is the story and trained by the C.I.A. Thai.; of the growing. American in- apprentices were tame, to the! volvement in the conflict there. Air Asia base at Talhan, on Tai-64 Air America has been essential wan, for a Years intensive,,/ to the development of the clam: training. A shorter course also. destine army, headed by Maj. at Tainan, trained mechinicti Gen. yang Pao and recruited, helpers. trained, supplied and advised by In November, 1967; Air.....!‘ the C.I.A. America began flying serviced; Mr America began supplying in Thailand similar to. those in • food and weapons to the Mao Laos. The operations, based at•• hill tribesmen even before the Bangkok and at Udon, a city; pro-Communist "Whet Leo re- in the center of the northeast, sumed the war against the Gov• em i region,were brought about; eminent of Prince Swoons t ithift Infiltration and adage !Mena In 1964. The Mans Inge supported. by the Mos%