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Inquiry Into the Matter of Billy Carter and Libya

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Inquiry Into the Matter of Billy Carter and Libya 96TH CONGRESS SENATE REPORT 2d Session No. 96-1015 INQUIRY INTO THE MATTER OF BILLY CARTER AND LIBYA REPORT TOGETHER WITH ADDITIONAL VIEWS OF THE COMMITTEE ON THE JUDICIARY SUBCOMMITTEE TO INVESTIGATE INDIVIDUALS REPRESENTING THE INTERESTS OF FOREIGN GOVERNMENTS TO THE UNITED STATES SENATE '*V OCTOBER 2 (legislative day, JUNE 12), 1980.-Ordered to be printed Filed under authority of the order of the Senate of OCTOBER 2 (legislative day, JUNE 12), 1980 U.S. GOVERNMENT PRINTING OFFICE 68-045 0 WASHINGTON: 1980 For sale by the Superintendent of Documents, U.S. Government Printing Offieo Washington. D.C. 20402 COMMITTEE ON THE JUDICIARY [96th Congress] EDWARD M. KENNEDY, Massachusetts, Chairman BIRCH BAYH, Indiana STROM THURMOND, South Carolina ROBERT C. BYRD, West Virginia CHARLES McC. MATHIAS, JR., Maryland JOSEPH R. BIDEN, JR., Delaware PAUL LAXALT, Nevada JOHN C. CULVER, Iowa ORRIN G. HATCH, Utah HOWARD M. METZENBAUM, Ohio ROBERT DOLE, Kansas DENNIS DECONCINI, Arizona THAD COCHRAN, Mississippi PATRICK J. LEAHY, Vermont ALAN K. SIMPSON, Wyoming MAX BAUCUS, Montana HOWELL HEFLIN, Alabama STEPHEN BREYER, Chief Counsel EMORY SNEEDEN, Minority Chief Counsel SUBCOMMITTEE TO INVESTIGATE INDIVIDUALS REPRESENTING THE INTERESTS OF FOREIGN GOVERNMENTS BIRCH BAYH, Indiana, Chairman STROM THURMOND, South Carolina, Vice Chairman CLAIBORNE PELL, Rhode Island CHARLES McC. MATHIAS, Ja., Maryland DENNIS DECONCINI, Arizona ROBERT DOLE, Kansas PATRICK J. LEAHY, Vermont RICHARD G. LUGAR, Indiana MAX BAUCUS, Montana PHILIP W. TONE, Special Counsel MICHAEL DAVIDSON. Senate Legal Counsel ROBERT K. KELLEY, Deputy Senate Legal Counsel (II) ACKNOWLEDGMENTS The Members of the Subcommittee would like to express their ap- preciation and gratefully acknowledge the high standard of profes- sionalism and personal integrity of the Special Counsel, Philip W. Tone, and make known their respect for his leadership, judgment, and dedication to duty. The Members would also like to express their gratitude to the staff for the many long hours of dedicated service that enabled the Sub- committee to responsibly advance the Subcommittee's investigation in a professional manner, and would like to take this opportunity to commend: OFFICE OF SENATE LEGAL COUNSEL Michael Davidson, Senate Legal Counsel; Robert K. Kelley, Deputy Senate Legal Counsel; Paula A. Sweeney, Assistant Senate Legal Counsel; Charles Tiefer, Assistant Senate Legal Counsel; Kenneth S. Kilimnik, Legal Assistant; Deborah Howard, Legal Assistant; Nancy L. Bradshaw, Staff Assistant; Barbara Laboch, Staff Assist- ant; and Cheryl G: Brown, Staff Assistant; SENATE STAFF Marcia N. Atcheson, Counsel to Birch Bayh (D-Ind.); Linda Rogers-Kingsbury, Staff Director; Dennis Shedd and Joseph R. Barker, Counsel to Strom Thurmond (R-S.C.) ; James H. Thessin and David L. Johnson, Counsel to Claiborne Pell (D-R.I.); Nancy F. Wolicki, Counsel to Dennis DeConcini (D-Arz.); Charles R. Tetzlaff, Counsel to Patrick J. Leahy (D-Vt.); Ann Leigh, Advisor to Max Baucus (D-Mont.); Michael R. Klipper, Counsel to Charles McC. Mathias, Jr. (R-Md.); Jonathan C. Thacher, Counsel to Robert Dole (R-Kan.); and Jeffrey T. Bergner, Advisor to Richard G. Lugar (R-Ind.); SENATE SELECT COMMITTEE ON INTELLIGENCE William E. Miller, Staff Director; Earl D. Eisenhower, Minority Staff Director; Michael T. Epstein, Staff Counsel; David A. Shaw, Staff Counsel; and the security, research and support staff; CONSULTANTS Thomas K. McQueen, Consultant and Assistant to the Special Coun- sel; William B. Turner, Counsel and Consultant; John J. McDermott, Director of Investigations and Consultant; and Joseph R. O'Rourke. Consultant; and (IID) IV DETAILED AND OTHER ASSISTANCE Edward C. Messinger, Accountant; John R. Tipton, Evaluator; Alan M. Bennett, Evaluator; and Joseph W. Jacques, Auditor; Car- olyn C. Drake, Research Assistant; Audrey J. Fon, Staff Assistant; Katherine C. Shepherd, Staff Assistant; Joette P. McCutcheon, Staff Assistant; Benjamin R. Baker, Jr., Staff Assistant; and G. Frederick Glass, Senate Intern. The Subcommittee notes and joins the special acknowledgment, which its counsel, Philip Tone, Michael Davidson and Robert Kelley, wish to, express for the work of Thomas K. McQueen, Paula A. Sweeney, Charles Tetzlaff, and Charles Tiefer, in the preparation and editing of this report. PREFACE The Subcommittee of the Committee on the Judiciary was estab- lished by an order of the Senate on July 24, 1980, for the purpose of investigating the activities of individuals representing the interests of foreign governments. The Subcommittee was directed to determine the extent and scope of the investigation, and to submit a final or interim report to the Senate no later than October 4, 1980. On August 19, 1980, the Subcommittee agreed to the scope of its investiga- tion, concentrating in the limited time available on Billy Carter's activities with respect to Libya and our government's handling of that matter. The Senate envisaged that the Subcommittee would proceed in a nonpartisan manner. This is symbolized by the fact that, alongside Senator Bayh as Chairman, Senator Thurmond, as the Ranking Minority Member of the Subcommittee, would serve as its Vice Chair- man. The Senate also provided that subpoenas would be issued by the Subcommittee upon the cosignature of the Chairman and Vice Chair- man, or on the signature of either of them at the direction of the Sub- commitee. The Chairman and Vice Chairman were able to agree on the issuance of all subpoenas; it has not been necessary to put to a vote any issue with respect to the issuance of subpoenas or the conduct of the investigation. To further ensure the nonpartisan quality of the investigation, and its integrity and thoroughness, the Subcommitee retained a distin- guished special counsel, Philip W. Tone. Our debt to him is acknowl- edged elsewhere. The Senate also authorized and directed Michael Davidson, Senate Legal Counsel, and Robert K. Kelley, Deputy Sen- ate Legal Counsel, to work with the Subcommittee, and thereby pro- vided the Subcommittee with the services of the Office of Senate Legal Counsel, a nonpartisan office which serves the entire Senate. The Subcommittee has heard 23 witnesses during 11 days of public hearings. The number of pages of testimony taken at public hearings totals 2,226 pages. The staff has additionally taken the testimony of 35 witnesses at depositions; there are 2,646 pages of deposition tran- scripts. The public hearings will be published and the depositions will be made available to the public as soon as possible. The report which is being issued today is a full statement of that part of the evidence the Subcommitee has received which may be released to the public. The intention of the Subcommittee is to provide as much information as possible to the public so that it may see the basis for the conclusions which follow. The Subcommittee has determined to designate this report as an interim one, even though the effort has been made to make the factual statement and the conclusions as complete as possible. The Depart- ment of Justice is continuing with investigations that may produce additional relevant information. Members may also wish to recom- (V) VI mend that the Subcommittee pursue additional areas within its man- date. The Subcoinmittee cannot say, therefore, with any assurance, that the final chapter has been written. Of particular importance in this respect is the inquiry and prospec- tive report of the Office of Professional Responsibility of the Depart- ment of Justice. We will evaluate the findings of the Office of Profes- sional Responsibility before determining whet-her the Subcommittee should take any further action. We are today forwarding this report to the Justice Department for such assistance it may provide to the Office of Professional Responsibility in its investigation of related matters. As may be expected, a number of individual members have addi- tional views on the difficult issues considered by the Subcommittee. As the Chairman and Vice Chairman of the Suboommittee, we are confi- dent, nonetheless, in our conviction that the agreement to the conclu- sions which follow is a significant achievement of the Subcommittee. BIRCH BAYH, . Chairman. Smox THURMOND, Vice Chairman. CONTENTS Page Acknowledgments ----------------------------------------------- III Preface ------------------------------------------------------ V 1. Libyan Cultivation of a Relationship With Billy Carter and White House Reaction: March 1978-October 1979 -------------------- 1 II. The Middle Period: Hostages, Oil, Payments and Intelligence ------- 21 III. Justice Department Investigates Billy Carter and Arranges Registra- tion: April 1980-July 1980 ----------------------------------- 45 Conclusions ------------------- -------------------------------- 60 Additional and individual views: Senator Thurmond ------------------------------------------ 70 Senator Pell ----------------------------------------------- 75 Senator Mathias -- 77 Senator DeConcini ------------------------------------------ 79 Senator Dole ----------------------------------------------- 81 Senator Bayh-------- -------------- ------------------------ 87 Senator Baucus -------------------------------------------- 88 Senator Lugar ---------------------------------------------- 90 References: I. ------------------------------------------------------ 96 II. - ---------------------- --- 101 III. ----------------------------------------------------- 107 Conclusions-----------------------------------------------
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