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I I _.._-r---~ DATE 16 May 1973', _...-.-\ TO: (Office, delignolion,

((.10m number, and DATEOfFICER'S COMMENTS (Number each comment .how ftom whombuilding) to.-_...- INITIALS to whom. Draw Q line across column ofter -ecch comment}

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16 May 1973

MEMORANDUM FOR: Executive Secretary,CIA Management Committee

SUBJECT "Family Jewels"

1. The purpose of this memorandum is toforward for your personal review summaries of activitiesconducted either by or under the sponsorship of theOffice of Security in the past which in my opinion con-flict with the provisions of the National Security Actof 1947.

2. These activities cover 'the period fromMarch 1959 to date and represent as accurate a recordas is .ava i Lab Le in our files. Those activities which,took place prior to the date of my appointment asDirector of Security on 1 ~uly 1964 have been developedto a certain extent through the recollection of thesenior people in this Office who were involved or whohad knowledge of the activities at the ~irne theyoccurred. .

3. I have gone back to March 1959 because Ibelieve that the activities occurring since that timest'ill have a viable "flap potential" in that many of thepeople involved, both Agency and non-Agency are stillalive and through their knOWledge of the activity repre-sent a possible potential threat or embarrassment to theAgency. I would be glad to provide clarification or anexplanation of any of these activities if desired. Youhave my assurance that unless otherwise stated each ofthese activities was approved by higher authority--the

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Director of Central Intelligence, the Deputy Directorof Central Intelligence, the Executive Director-Comptroller, or the Deputy Director for Support.

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Attachment A

"FAMILY JEWELS"

1.

2. Johnny Roselli -- The use of a member of theMafia in an attempt to assassinate Fidel Castro.

3. Project MOCKINGBIRD -- During the period from 12March 1963 to 15 June 1963, this Officeinstalled telephone taps on two l\Tashington-based newsmen who were suspected of disclosingclassified information obtained from a varietyof governmental and congressional sources.

4. Yuriy Ivanovich Nosenko -- A KGB defector who fromthe peri"6

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a conscious decision was made by the Agency toutilize the services of local police to repelinvaders in case of riot or dissension asopposed to utilization of our GSA guards, whoare not trained in this type of activity. Thisequipment has been issued over the years tolocal police, principally Fairfax and ArlingtonCounty Police Departments. I do not believethat this is totally illegal under the provisionsof the National Security Act of 1947, but I am in-cluding it since I am sure that it would be con-sidered as such in light of the recent congressionalfuss over our police training activities.

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7. Audio Countermeasures Support to the United States"Secret Service

8. Test of Specialized Equipment in Miami ImmediatelyPrior to the Political Convention There

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SUBJECT: Johnny Roselli '

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1. In Augus t 1960, Mr. Richard M.. Bissellapproached Colonel Sheffield Edwards to determine ifthe Office of Security had assets that may as~ist in asensitive mission requiring gangster-type action. Themission target was Fidel Castro.

2. Because o~ its extreme sensitivity, only asmall group' was made privy to the project. The DCI wasbriefed and gave his approval. Colonel J. C. Kin~,Chief, WH Division, was briefed, but all details weredeliberately concealed from any of the JMWAVE officials.Certain TSD and Communications personnel participatedin the initial planning stages, but were not witting ofthe purpose of the mission.

3. Robert A. Maheu, a cleared source of theOffice of Sec~rity, ,was contacted, briefed generally onthe project, and requested to ascert~in ibe coulddevelop an entree into the gangster elements as the firststep toward accomplishing the desired goal.

4. Mr. Maheu advised that he had met one JohnnyRoselli on several,oc~asionswhile visiting Las Vegas.He only knew him casually through clients, but was givento understand that he was a high-ranking member of the"syndicat:e" and controlled all of the ice-making machineson the Strip. Maheu reasoned that, if Roselli was infact a member of the clan, he undoubtedly had connectionsleading into the Cuban gambling interests.

5., Maheu was asked to approach Roselli, who knewMaheu as a personal relations executive handling domesticand foreign accounts, and tell him that he had recentlybeen retained by a client who represented several inter-national business irms which were suffering heavy financiallosses in Cuba as a result of Castro's action. They wereconvinced that Castro's removal was the answer to their

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problem and were willing to pay a price of $150,000for its successful accomplishment. It was to be madeclear to Roselli that the United States Government wasnot, and should not, become aware of this operation.

6. The pitch was made to Roselli on 14September 1960 at the Hilton Plaza Hotel, New York City.Mr. James O'Connell, Office of Security, was presentduring this. meeting and was identified to Roselli as anemployee of Maheu. O'Connell actively served as Roselli'scontact until May ~962 at which time he phased out dueto an ov er seas assignment. His ini tia1 reaction was toavoid getting involved, but through Maheu's persuasion,he agreed to introduce him to a friend, Sam Gold, whoknew the "Cuban crowd." Roselli made it clear he didnot want any money for his part and believed Sam wouldfeel the same way. Neither of these individuals wereever paid out of Agency funds.

7. During the week of, 25 September, Maheu wasintroduced to Sam who was staying at the FontainebleauHotel, Miami Beach. It was several weeks 'after h:i;smeeting with Sam and Joe"who was identified to him asa courier operating between Havana and Miami, that hesaw photographs of both of these individuals in theSunday .supplemental, "Parade." They were identified asMama Salvatore~Giancani and Santos Trafficant, respectively.Both were on the list'of the Attorney General's ten most-wanted men. The former was described as the Chicagochieftain of the Cosa Nostra and successor to Al Capone,and the latter,' the Ces a Nostra boss of Cuban op ei-a.t i ons .Maheu called this office immediately upon ascertainingthis information. . .

8. In discussing the possible methods ofaccomplishing this mission, Sam suggested that they notresort to firearms but, if he could be furnished sometype of potent pill, that could be placed in Castro's foodor drink, it would be a much more effective operation.Sam indicated that he had a prospective nominee in theperson of Juan Orta , a Cuban official who had been receivingkick-back payments from the gambling interests, who still hadaccess to Castro, and was in a financial bind.

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9. TSD was requested to produce six pills ofhigh lethal content.

10. Joe delivered the pills to Orta. Afterseveral weeks of reported attempts, OJ;taappar~l.1tly gotcold feet and asked out of the assignment. He suggestedanother candidate who made several attempts withoutsuccess.

11. Joe then indicated that Dr. Anthony Verona,one o f the pr Lnc LpaL officers in the Cuban Exile Junta, hadbecome disaffected with the apparent ineffectual progressof the Junta and was willing to handle the mission throughhis own resources.

12. He asked, asa prirequisiteto.the deal, thathe be given $10,000 for organizational expenses and requested$1,000 worth of communications equipment.

13. Dr. Verona's potential was never fUllyexploited, as the project was canceled shortly after theBay of Pigs episode. Verona was advised that the offerwas 'vi thdrawn, and the pLl l s were. retrieved.

14. Of significant interest was an incidentwhich involved a request levied by Sam upon Maheu.

. . - ,. At t he height of the proj ect negotiations,Sam expressed concern about his girlriend,Phyllis McGuire, who he learned was gettingmuch attention from Dan Rowan while both werebooked at a Las Vegas night club. Sam askedMaheur t;o put a bug in Rowan t s : rbomto deter-mine the extent of his intimacy with MissMcGuire . The technician involved in the assign-ment was discovered in the process, arrested,and taken to the Sheriff's office for questioning.He called Maheu and informed him that he hadbeen detained by the police. This call was madein the'presence of the Sheriff's personnel ..

Subsequently, the Department of Justiceannounced its intention to prosecute Maheu along

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with the technician. On 7 February 1962~.the Director of Security briefed the AttorneyGeneral, Robert Kennedy, on the circumstancesleading up to Maheu's involvement in thelviretap. At our request, prosecution wasdropped. .

15. In May 1962, Mr. William Harvey took overas Case Officer, and it is not known by this officewhether Roselli was used operationally from that point on.

16. It was subsequently learned from the FBIthat Roselli had been convicted on six counts involvingillegal entry into t.he United States. Our records do notreflect the date of conviction, but it is believed tohave been s9metime during November 1967.

17. On'2 December i968, Roselli, along withfour other individuals, was convicted of conspiracy tocheat members of the Friars Club of $400,~OO in a.riggedgin rl!-mmy g

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complete agreement with our stand. He further adVisedthat he was not concerned about any publicity as itaffected him personally should Roselli decide to tellall.

21. Subsequently, Roselli or someone on hisbehalf furnished Jack Anderson details of the operation.Attached are two Anderson columns dealing with" thismatter.

22. The last known residence of Roselli was theFederal Penitentiary in Seattle, Washington.

Attachments

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iIIIIi B)' J(!t:k A nderson. . (or before the motley invad- iate 4,gabst President .r-n- \;nmp;ele wil h secr-et ;'Y~~5 ati ' ers ];Ind"ci on the island. Their' ned}'. . ~ gmteri~g :'Iiiami Beach hotels-! Locked in the darkest reo ~ arr-ival was expected to touch! To set up the Castro a~, \, ;j.: and rn i d n i g b t po...~;boat,icesses oC the Central Iotelli.! oif a general uprising, which ination, the CIA enlisted h 0': dashes to ;>;>cret landin~ spots _!;enre .-\gency is the story Of: (he Ccmmunist militia would: ert :i\I.:!heu, a former ;', '1; on l'::e C:.:~a:J coast, Once, no- ":six assasslnarlon attempts: have had more trouble ut"n"; agent with shadowy contac , I:~e;!i's boat was shoeout fro:>:! _.against Cuba's -;"idel Castro. I': _. , . ,- ~ '"'.''' who had handled other undo \ :under him.! For III vears onlv a 'em key I'aown without the charlsmatlc :cover asslsnments for the Ci \ For the ~:r.t trv t' C" ' ~.I .... Co ..... \1, .. , ~;: ... fl' - i_of... 0 .1 '.L L J.'; J.;... ..." ne J.J"\..~.people have known the terriCastro to lead them. :out of .his Washington public "urnlshed Roselll ';ith s'C~ci.!.l'~l~le secret, Th~y.hav.e sworn I After the iirst attempt jrela.tions oiIice; He ~ate~' '.'lison. capsules to ~!lP 'intO::r:ne\'er to talk. let ....e have] failed, iive more assassination jInO\:d. to .Las Vegas Tt o .r:ea~ ! astro s.rood. The porson was .[learned the details from! t _, t t C b 'I'h ; up billionaire Howard Hughes ' :pposed to take three i:'.ays 10i sources whose credentials are! earns were sen o. u a. ".e: );i'vada operations, '. \', By the time Castro died.i~eyond question. ~ last team reporte-dly made It! :-'Iabeu recruited :!.~:..:.h', system would t~row off alli We spoke to John :'IIcCone,~lO a rooftop within shooting;sell!, a ruggedly handSQmp.:;t; \ -es of ~he- poison, so heIwho beaded the C:~A .at the! distance of ~astro b'efo~e they ;==gamo1er ,,:,Hll ,contacts In both l\'>. \ -d appeal' to be the victlml time' of the assassinatlon at- I were apprehended. This hap: the American and Cuban unlo! ~, natural. if mysterious ail.

Itempts. He acknowledged the Ipened around the Iast of Feb; derworlds. to arrange the a5-1 me, \ :idea had been discussed inside Iruary or first of March, 1%3. isassinatlon. T.ne dapper, hawk-j R.-; -Tl arranged with a[the CIA but Insisted it had, Nine months later, Presl-: faced Roselli, formerly rnar-. Cub '\ related to one of Cas.ibeen "r e j e c ted immedi-] dent Kennedy was gunned! ried to movie actress J:une: tro's " "$. to pl.ant the deadlv!atelv," He vizorously denied: down in Dallas by Lee Harvey [Lang, was a power in, the !pe.lle!' .. the dictator's food.i1hat the crx had ever particil~swald. a fan~tic who prein:o\:ie ;n~usrry until hi~ _~0!1'!0!1 :'ILl ,., 1,3,1961, Roselli de' _I paled in any plot on Castro's: viously had agitated fpr Cas- Ivtction with racketeer '.\ Ill ie ]llvered ',. cansules to hlJ .con.'Iiffe. Asked whether the at: tro in Xew O:leans f3nd J:ad IBioCf ina mil1~oc:-d~lJ.arHollYl tacl at : . ,.:ni Be3ch's lilamor.Ilerr.pts d operat.lves. WIllIam! about ,!::' ,:;:tl lime ior the!pen;d." .1 Among ~hose privy .to .the' H~r\'ey andTaI?es (Bi~ Jim)! plot 10 ,.'... been !..!l-;-;l'd out,

~ 1,\ e have COlll.:Jl't:te conIl': CIA conspIracy, there IS still a OConnell, ,0 Lie husn.hush; a r;~po": '::1 oi H:a.4~1'1 l'aid:dence, howe I; e r. in ourl nag gin g suspicion---:-unsup murder mission. using poony: east~() H ill. El:~ i,e reo!sources. !ported bY' the Warren Com names. theY accompanied RO'/coven'd "~':ore the,Ra;. l)i ?igs; The plot to knock off Castro !r.1issions iindings-lhat Cas- ,.elli on trips to Miami to line ;im"asion .', \prilli, i!i~:I.'began liS ;Ja,t -(;[ the Bay of! lro became aware uf the u.S, up the assassination teams. i Four n'" att~m:l~~ '\',;ol't";Pi:;s HP~:.li"n Th~ ;nunt.,,as~rh)t apon. h~ ... U~~ ~'!~c! .... t:':1~ The;f:zll story r~~ds ~jkl? t~p i:l3dp en . .. l\t':"o.~ :;~.a.. tv .t,,ii:n!:l~:"~ L~~e 'uoan CHeta huw :tt :-taH~r! l).... ..A,a~ i ~~f ala .. ':.'j 'f": ::: ~1 Ja:nes ~)onC1 i:10".tJf? :: :':)';~. a ...::. :.' 1::;-. ::,..:::-..::s. :::.c

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PROJECT MOCKINGBIRD

Project Mockingbird, a telephone intercept activity, was conductedbetween 12 March 1963 and 15 June 196'3, and tar geted two Vfashington-based newsrnen who, at the time, had been publishing news articlesbased on, and -f'requently quoting', classified 'materials of this Agencyand others, including Top Secret and Special Intelligence.

Telephone intercept connections were installed at the n ew m e n t soffice and at each of their homes, for a total of 3. The connectionswere established with the assistance of a telephone company officialwho responded to a personal request by the Director of Security, Col.Sheffield Edwar d s, Col. Edwards' authority for the activity ~vas Mr.John A. McCone, Director of Central Intelligence. The latter conductedthe activity in coordination with the Attorney General (Mr. Robert Kennedy),the Secretary of Defense [Mr , , Robert McNamara), and the Director ofthe Defense. Intelligence Agency (Gen. Joseph Carroll), In addition toOffice of Security personnel directly involved in the intercepts andresearch of materials acquired therefrom, only 3., other Agencyofficials are on record as witting of the activity: the Deputy Directorof Central Intelligence (General Marshall S. Carter), the InspectorGeneral (Lyman Kir kpa.tr i c k] and the General Counsel. (Mr. LawrenceHouston).

The intercept activity was particularly productive in identifying con-tacts of the newsmen, their method of operation and many of their sourcesof information. For example, it was determined that during the period theyreceived data from 13 newsmen, 12 of whom were identified; 12 senatorsand 6 members of Congress, all identified; 21 Congressional staff m errrbe r s ,of whom 11 were identified; 16 government e mpIoy ee s , including a staffmember of the White House, members of the Vice President's office, anAs s i s tant Attorney General, and other well-placed individuals. A numberof other sources were partially or tentatively identified, but the short spanof the activity ,precluded positive identification. It was observed that throughthese contacts the newsmen actually received more classified and officialdata than they could use, and passed some of'bhe stories to other newsmenfor release, establishing that many "leaks'" appearing under other by-lineswere actually from the sources of the target newsmen.

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MORl DoclD: 1451843

Yuriy Ivanovich Nosenkq, an officer of the KGB,defected to -a representative of this-Agency in Geneva,Switzerland, on 4 February 1964. The responsibility forhis exploitation 1vas assigned to the then SR Division ofthe Clandestine Service and he was brought to this countryon 12 February 1964. After initial interrogation byrepresentatives of the SR Division, he was moved to a safe-house in Clinton, Maryland, from 4 April 1964 where hewas confined and interrogated until 13 August 1965 whenhe was moved to a s:e cially constru~t~d . "j ail" in a. r erno tewooded area atf ~ I The SR Dlvls10n was convlnced -that he was a dlspa ched agent but even after a longperiod of hostile interrogation was unable to prove theircontention and he was confined at I lin an effortto convince him to "confess."

This Office together with- the Office of GeneralCouIT?el became increasingly concerned with the illegali~yof the Agency's position in handling a defector underthese conditions for such a long period of time.- Strongrepresentations were made to the Director (Mr. Helms) bythis Office, the Office of General Counsel, and theLegislative Liaison Couns~l, and on 27 October 1967, theresponsibility for Nosenko's further handling was transferredto the Office of Security und~r the direction of the DeputyDirector of Central Intelligence, then Admiral Rufus Taylor.-

Nosenko was moved to a comfortable safehouse inthe Washington area and was int.erviewed--under---friendly,.sympa the t Lc conditions by his Security Case Of-ficer, Mr.Bruce Solie, for more than a year. It soon becameapparent that Nosenko was bona fide and he was moved tomore comfortable surroundings with considerable freedomof independent movement and has continued to cooperatefUlly with the Federal Bureau of Investigation and thisOffice since that time. He has proven to be the most

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v~luable and economical defector this Agency has everhad and leads which were ignored by the SR Division wereex lored and have resulted in the arrest and prosecution

e currenlvorce from his Russian wife

and remarried an American citizen. He is happy, relaxed,and appreciative of the treatment accorded him and states"while I regret my three years of incarceration, I haveno bitterness and now und.erstand how it equId happen."

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'1. SURVEILLANCES

AI__During the periods 1-20 February~ 12 April-7 May~

and 9-20 Au~ust 1971, a surveillance was conducted ofla former staff employee~ and

Lrl-----------,."a".-r-;-;LJu-J..oan nation a1 wi th whom[be come professionally and emo-~t~~~o~n~aTl.~lY~l'-n~v~o~IT~-v~e~ca~.~Surveillance was predicated uponinformation thatl Ihad beeri seeking fromemployees information ln Information Processing Divisionfi1es~ and that em~loyees were visiting a photographicstudio operated by L - ~n FairfaxCity, Virginia. In addItIon to phYSIcal surveIllance,'one surreptitious entry of the photographic studio wasmade, and an attempt to enter the apartment ofl Iwas aborted because of a door lock problem.

B.

Pursuant to a request from the CI Staff, approvedby the DCI, surveillances were conducted ofland her associates "at various times from May:--:it:-;o"":-'S"""e"""p=-=t""'e=-:m:;:-br::-e=r:::-1971.

ad long been a source 0 IV~Slon an'-,:;-....-::l.....,;;--:;--.~..-J information re.garding a, plot to assassinate

kidnap Vice President Agnew and the DCI. Surveil-lances included coverage of the activities of Miss Kingduring two visits to the United States; technical cover-age of debriefings of her by WH Division representativesin New York City, and surveillance, including mail cover-age, of several American citizens a.l Leged -to be part ofthe plot. Although most of the surveillance occurred inNew York City, surveillance of one of the individualsincluded extensive coverage of a commune in Detroit.

C. CELOTEX I

At the direction of the DCI, a surveillance was con-ducted of Michael Get1er of the Washington Post- during

SE ETEY~ OlJLY

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the periods 6-9 October, 27 October-IO December 1971and on 3 January 1972. In addition to physical sur-veillance, an observation post was maintained in theStatler Hilton Hotel where observation could be main-tained of the building housing his office. The sur-veillance was designed to determine Getler's sourcesof classified information of interest to the Agencywhich had appeared in a number of his columns.

D. CELOTEX II

At the direction of the DCI, surveillance was con~ducted of Jack Anderson and at various times his "legmen., II Britt Hume ,.' Leslie Whitten, and Joseph Spear,from 15 February to 12 April 1972. In addition to thephysical surveillance, an ob s erv a t i.on post was' main-tained in the Statler Hilton Hotel directly oppositeAnderson's office. The purpose of this surveillancewas to attempt to determine Anderson's sources forhighly classified Agency information appearing in hissyndicated columns.

E. BUTANE

At the direction of the. DCI, a surveillance wasconducted on Victor L. Marchetti from 23 March to20 April 1972. The purpose of this surveillance wasto determine his activities and contacts both withAgency employees and other individuals in regard tohis proposed book and published magazine articles ex-posing Agency operations.

II. POLICE SUPPORT

A. During 1969, 1970, and 1971, on se.veral occasions,the Intelligence Division of the Metropolitan PoliceDepartment was prOVided a communications system tomonitor major anti-Vietnam war demonstrations in theWashington area. This system consisted of a radioreceiver and an Agent at the Intelligence Division.Headquarters and several automobiles from the WashingtonField Office equipped with radiQ receivers and trans-mitters and manned by two WFO Agents, as well as arepresentative of the Intelligence Division, MetropolitanPolice Department. The benefit to the Agency was, thatthe communications over this system were monitored atthe Headquarters Building to provide instant notice ofpossible actions by the dissidents against Agency in-stallations. .

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'.

B. During the period from 1968 to 1973, severalitems of positive audio equipment consisti~g pri-marily of clandestine transmitters and touch-tonedial recorders were loaned to the MetropolitanPolice Department, Fairfax County, Virginia, PoliceDepartment, Montgomery County, Maryland, PoliceDepartment, New York City Police Department, and theSan Francisco, California, Police Department.

III. GENERAL SUPPORT

A. SRPOINTER

Since 1953, this office has operated a mail inter-cept program of incoming and outgoing Russian mailand, at various times, other selective mail at KennedyAirport in New York City. this operation included notonly the photographing" of envelopes but also surrepti-tious opening and photographing of selected items ofmail. The bulk of the take involved matters of inter-nal security interest which was disseminated to theFederal Bure~u of Investigation. This program is now

~n a dormant state pending a decision as to whetherthe operation wilL be contiriued or abolished.

B. AELADLE

For several years the Office" of Security has pro-vided support to Anatole Golitsyn, a Russian defector ofinterest to the CI Staff. I

c. REDFACE I

In July 1970, this office made a surreptitiousentry of an office in Silver Spring, Maryland, occu-pied by a former defector working under contract forthe Agency. This involved by-passing a contact and

000283

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sonic alarm system, entering a vault, and enteringa safe within the vault. The purpose of the opera-tion was to determine whether the individual hadany unauthorized classified information in hispossession.

D. BUREAU OF NA~COTICS AND DANGEROUS DRUGS

)ecru1tment 0 an 1n 1V1 by BNDD

but actually employed by BNDD, although this fact isknown only to the Director and Chief Inspector, BNDD.In this case, arrangements were made for all pay andother employee benefits to come from CIA on a reim-bursable basis.

In January 1971, the Director approved a requestfrom the Director, Bureau of Narcotics and DangerousDrugs, to provide covert recruitment and securityclearance support to BNDD. This has been accomplishedthrough the medium of a proprietary of the Office of-Securit known as and 0 eratin as I

'----rS..,.u=p"..,p~o=r.."t-~l'-n~c::--'"u::-:!d-=e-::s:---::c::-:o=-=v-=-e=-r=t---=y:-=e-=c:"::r::7u"""l"""t';:m=e-=n"%tC-,----=l"""l::-:w:-:-e=s=71-:::g-:=a:"=-::1'-'0=-=n=-----:!,p01Ygraph ,medical clearance, and training. It has been dividedinto three phases: (1) A CI operation to place indi-viduals in BNDD field offices to monitor an il1e a1activities of other BNDD employees; (2)

E. I

F. MERRIMAC

From February 1967 to November 1971,f I anOffice of Security proprietary, recruite~ anu nallulbdseveral -Agents for the purpose of covertly monitoring-

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rF~f \' O~:l.Y_ .\l

dissiderit groups in the Washington area consideredto be potential threats to Agency personnel andinstallations. One of these Agents so successfullypenetrated one dissident group that she wa~ turnedover to the FBI for handling. In addition, duringthis period, the Office of Security field officeswere tasked with collecting available'intelligenceon dissident groups. All such information was in-cluded in a periodic report distributed to appro-priate parts of th~ Agency and to certain outsideGovernment agencies.

G-.~ F.I.----=======:::::::-_------'-----------,

500030

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.

00031.

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------------------MORl DocID: 1451843

MATERIAL REQUISITIONED FROM LOGISTICSBY SECURITY FOR ISSUANCE TO

LOCAL POLICE

*NOTE: Various quantities and types of replacement chemicalcartridges, loading kits, and batteries were alsoordered for asterisk items.

jIL

ITEM

Gas Mask M-9

Gas Mask M-17

Steel Helmet and Liners

Vest and Groin Protector

Vest, Flak M-52

Vest, Protective

Vest, Grenade

Execuvest

Emergency Flashing Red Light

*Searchlight, Tear Gas

*Chemical Baton 6 1/2"

*Chemical Baton 12"

"*Chemical Baton 26"

*Mustang 35 Pistol

'~Searchlight with" Shoulder Strap*Stun Gun

gUA_NITY

200

196

2'31

96

34

46

105

6

22

36

36

24

24

6

36

3

'--- 1032

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00033

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-------------MORI DocID: 1451843

SUBJECT": Audio Countermeasures S~pport to theUnited States Secret Service

On 2S July 1968, and at the specific requestof the United States Secret Service, this Office pro-vided two audio countermeasures technicians to theUnited States Secret Service in connection with theDemocratic National Convention held in Chicago, Illinois.This was not an official detail although both men wereprovided with temporary credentials identifying themas being affiliated with the United States Secret Service.

On IS August 1968, we detailed the same two mento the United States Secret Service to cover theRepublican National Convention in Miami, Florida~ Onboth occasions, the team members were debriefed upon,their return and it is clear that their activities wereconfined exclusively to.sweeping the candidates andpotential candidates quarters.

00034

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l

00035'--

-MORl DoclD: 1451843

..

I15 May 1973

MEMORANDUM FOR: Mr. Howard Osborn'Director of Security

SUBJECT Identification of Activities withEmbarrassment Potential for the Agency

1. In responding on 7 May by memorandum to the DDO'srequest for the identification of any incident which mightconceivably have an embarrassment potential for the AgencYtI cited the equipment test which is mentioned in the attachedmemo. The test in uestion was related to the development of

,

~~~~~were in and out of some four hotels in Miami, withradio equipment. This was shortly before the political con-ventions, and at least one of the hotels was within a blockof the convention hall.

~:1:~:1 :. :":.,:"_":

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. ,.~ I.

7 May 1973

.1'ffiMORANDUM FOR THE RECORD

SUBJECT : I IEquipment Test, Miami, Florida,A~gl;lst 1971

, The following details concerning ther'~ ~ -=~ments for Subject tests were provided byI I during a telephone cO~n::;;v':;"";e::::r~s~a=-;;---=-:::-='"":l=i.the unaers~gned, 7 May 1973.

r- L- ~--~~~~~~~r~e~t~i~red, formerly assigned tofor the August 1971 Fieldl.c;;;r.:::===r====:::;:==;::::;::;::::o=:rL--------I.----------J--------~S ecurity

arrangements or e es an e on ehalf of 1....---"'-----and the2vis~tors b~1 llin conjunction witli the~ _ ecur~t~ Off~cer r :vnq w}s I ~at the DUe. [ nas in daily contact ,-nth II IMiami ~OI ce nt the course of his officiaI IXaXSoduties.

. 0._- ._~__.-.

1_-00037.! File

a.ons e

Iwas reluctant- to calli Iat home~=-==~~t~e~lephone line. to inquire about the specifics

arrangements at this point, and suggested1----.----ld'======iiSeco.rity Officer by', this time might have

ack to Headquarters and be available for

Distribution:Orig - :

The aboVe details were provided by telephone tor--l_______, Chief, Division D at 1650 hours this da~

C.signedJ.1

S-~T- ,.L ~i ....

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Ilf{

----------------MORT DocTD: 1451843

LJ (OI~flROUTING AND RECORD SHEET-sU1ljEcr:lo;~:~ii---------------------------------------------1

FROM:"--" -----.-..----.--.-------------..--EY.Tit.,S~Ot~:.~~.~..==~~===~~_-_-_.. . __

_[.j DATEDirector of Securit.__._--- ----_._---_._---~ ._-- I+----------_---.:_------~

TO: IO!i:

-------------------MORI DocID: 1451843

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15 FEB ';:372

MEMORANDUM FOR: Executive Director-Comptroller

SUBJECT ROSELLI, John

1. This memorandum is for your inforU1ation only.

2. Reference is made to our recent conver s ation regardingthe Agency's participation in political as sassinations. Attachedhereto is a memorandum dated 19 November 1970 which was fur-nished to Mr. Helms setting forth the circumstances of the Subject'sactivities on behalf of the Agency. Initially Roselli was unwittingof Government interest, but as time went on, he suspected that theU. S. Government was involved and specifically the CIA.

3. Roselli is presently serving a prison sentence for con-spiracy in a Federal penitentiary in Seattle, Washington and awaitsdeportation upon completion of his current sentence

.

4. This Agency was aware that Roselli intended to exp9se"his participation in the plot should we not intervene on his behalf.The DCI decided to ignore his threats and take a calculated risk asto the consequences that may occur with the disclosure of his:" story.This was subsequently done by Roselli or someone on his behalf fur-nishing Jack Anderson details of the incident. Attached hereto aretwo of Anderson' s az-ti cle s dealing with "Roselli. Anderson is alsoEditor of the Washington Bureau of the Washington Post, Sundaysupplemental "Parade. "

5. Individuals who were aware of this project were: Messrs.Dulles, Bissell, Colonel J. C. King, Colonel Sheffield Edwards,

00039

---------------MORl DoclD: 1451843

..."" ": .. ,

William Harvey, and James P. O'Connell. Also include'd wereRobert A. Maheu and'his attorneys Edward P. Morgan and EdwardBennett William s.

6. On 26 February 1971 arrangements were rnada withImmigration and Naturalization Service Comrl1issioner RaymondFarrell to flag any action that may be taken hy his o,rganizationregarding deportation proceedings against Roselli. On26 January1972 James F. Green, ASSociate Commissioner for I&NS, advisedthat they were deferring' any deportation action for another yearand would again call it to Our attention upon expiration of thedeferral.

Atts

00040SEC ETES OttlY

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-----------------MORl DoclD: 1451843

MEMORANDUM FOR: Executive Director-Con,ptroHer

SUBJECT ROSELLI, John

..

iI

I .

l

1. This rnernoz-andurn is for your _i.nf~rmationonly.

z. Reference is made to our recent conversation regardingthe .Agency's participation in politic;!.l assassinations. Attachedhe r-e to is a rn errro r-a.ndtrm dated 19 November 1970 which was fur-nished to Mr. Helms setting forth the circumstances of the Subject'sactivities on behalf of the Agency. Initially Roselli was unwittingof Government interest, but as time went on, he suspected that theU. S. Gove r nrne nt was involved and specifically the CIA.

,

3. Roselli is presently serving a prison sentence for con-spiracy in a Federal penitentiary in Seattle, \\Tashington and awaitsdeportation upon completion of his current sentence.

4. This Agency was aware that Roselli intended to exposehiB participation in the plot should we not. intervene on his behalf.The DCI decided to ignore his threa.ts and take a calcuiated risk asto the consequences that may occur with the disclosure of his story.This wall subsequently done by Roselli or someone on his behalf fur-nishing Jack Anderson details of the incident. Attached hereto aretwo of Anderson's articles dealing with Roselli. Anderson is alsoEditor of the Vlashington Bureau of the Washington Post, Sundaysupplemental "Parade. It

5. Individuals who were aware of this project were: Messrs.Dulles, Bissell. Colonel J. C. King. Colonel Sheffield Edwards.

'00041

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.....

WilliDm Harvey, and J'arne s P. O'Connell. Also included wereRobert A. l..,.~C'\.heu and his attorneys Edward P. Morgan and Ed-wardBennett Williams.

6. On26 February 1971 arrangernents were made withI:mn:.igr~tion and N

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Atts...~.

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--------------MORl DoclD: 1451843

Co.

MI:n'fORANDUM FOR: Director of Centz-a l Il1i;elligence

E-:UBJ.ECT ROSFLLI, Johnny

1. This memorandum is for inf'onuation only.

2. In August 1960, Mr. Richard 1v'!:. ,Bissell approachedColonel Sheffield Edwards to determine if the Office of Securityhad assets that may assist in a sensitive mission requiringgangster-type action. The mission target was Fidel Castro.

3. Because of its extreme sensitivity, only a small groupwas made privy to the project. The ncr was briefed and gave hisapproval. Colonel J. C. King, Chief, \YH roivision, was briefed,but all details were delfbez-at.el.y concealed from any of theJM\VAVEofficials. Certain TSD and Cornrno personnel partici-pated in the initial planning stages, but were not witting of thepurpose of the mission. ,

4. Robert A. Maheu was contacted, briefed generally onthe project. and requested to ascertain if he could develop anentree into the gangster elements as the first step toward accom-plishing. the d~sired goal.

5. Mr. Maheu advised that he had met one Johnny Rosellion several occasions while visiting Las Vegas. He only knewhim casually through clients, but was given to understand thathe was a high-ranking member of the "syndicate" and controlledall of the ice-m.aking m.achines on the Strip. Maheu reasonedthat, if Roselli was in fact a member of the clan, he undoubtedlyhad connections leading into the Cuban gambling interests.

00044

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6. Maheu wa s asked to approach Roselli, who knew MahC'uas a personal relations executive handling domestic and foreign'a.ccounts, and tell him that he had recently been retained by aclient: who z-epr e s entcd several international busines s firmswhich were suffering heavy financial losses in Cuba as a resultof Castro's action. They were convinced that Castro's rernovalwas the answer to their problern and w e r e willing to pay a priceof $150,000 for its successful a c cornpIishrn errt, It was to be madeclear to ,Roselli that the U. S. Gove rnrrrent was not, and should not,become aware of this operation. '

7. The ,pitch' was made to Roselli on 14 Septernber 1960 atthe Hilton Plaza Hotel, New York City. His initial reaction wasto avoid getting involved but, through Maheu's persuasion, heagreed to introduce him to a friend, Sam Gold, who knew the"Cuban crowd. II Roselli made it clear he did not want any moneyfor his part and believed Sam' would feel the same way. Neitherof these individuals was ever paid out of Agency funds.

8. During the week of 25 ,September, Maheu was in~roducedto Sam who was staying at the Fontainebleau Hotel, Miami Beach.It was several weeks after his meeting with Sam arid Joe, who was,identified to hiIn as a courier operating between Havana and Miami,that he saw photographs of both of these individuals in the Sundaysupplemental "Parade.' 1 They were identified as Momo SalvatoreGiancana and Santos Trafficant, respectively. Both were on the .list of the Attorney General's ten most-wanted men. The formerwas described as the Chicago chieftain of the Cosa Nostra andsuccessor to Al Capone, and the latter, the Cosa Nostra boss ofCuban operations. Maheu called this .office-immediately,upon as-certai:ling this information.

9. In discussing the possible methods of accomplishing thismission, Sam suggested that they not resort to firearms but, ifhe could be furnished some type of potent pill, that could beplaced in Castro's food or drink, it would be a much more effectiveoperatton, Sam indicated that he had a prospective nominee in theperson of Juan Orta, a Cuban official who had been receiving kick-back payments from the gambling interests, who still had access,to Castro, and was in a financial bind.

00045

-MORl DoclD: 1451843

'/;~l..

~

JO. TSD was z cque atedto produce six pills of high lethalcontent.

11. Joe delivered the pills to Orta. Af'te r several w e elcsof reported attempts, Orta apparently got cold feet and asked outof the a s s i gnrnerrt, He suggested ariothe r- candidate who made 'several attempts wi thout succes s s

12. Joe then indicated that Dr. Anthony Verona, one of theprincipal officers in the Cuban Exile Junta, had becorne disaffectedwith the apparent ineffectual progress of the Junta and was \viIlingto handle the rrri s s'io n through his own r e sour cea,

13. He asked, as a prerequisite to the deal, that he begiven $10,000 for organizational expenses and requested $1, 000worth of cornrnunica.tions equipment.

14. Dr. Verona's potential was never fully exploited, asthe project was canceled shortly after the Bay of Pigs episode.Verona was advised 'that the offer was withdrawn, and the pillswere retrieved.

15. Of significant interest was an incident which involveda request levied by Sam. upon Mabeu.

At the height of the project negotiations, Samexpz-es s ed concern about his girlfriend, Phyllis McGuire,who he learned was .getting much attention from DanRowan while both we~e booked at a Las Vegas night club.Sam asked Maheu to put a bug in Rowan' 8 room to deter-mine the extent of his intimacy with Miss McGuire. Thetechnician involved in the assignment was discovered in'the process, arrested, and taken to the Sheriff's officefor questioning. He called Maheu and inform.ed him thathe had been detained by the police. This call was rnadein the presence of the Sheriff's personnel.

1I.

iSubsequently, the Department of Justice an-

nounced its intention to prosecute Maheu along withthe technician. On 7 February 1962, the Director of

3~:: ! '{.:

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MORl DoclD: 1451843

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/

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Security briefed the Attorney Gener a l , RobertKennedy, on the ci r cum stanccs leading up to'Maheu's involvement in the wir etap, At our re-quest, p r oa e cutdon was ch"oJ?ped.

16. In May 1962, Mr. William Harvey took over' as CaseOfficer', and it is not known by this Office whether Roselli wa sused operationally 1'011.'1 that point on.

17. It was subsequently learned f'r orn the FBI that Rosellihad been con.victed on six counts involving illegal en.try into theUnited States. Our records do not reflect the date of conviction,but it is believed to have been sornetfrne during November 1967.

18. On 2 December 1968, Roselli, along with four otherindividuals, was convicted of conspiracy to cheat members of theFriars Club of $400,000 in a rigged gin gummy game.

21. On 18 Novernbe r 1970, you were briefed on the latestdevelopment in this caae, and it was decided that the Agencywould not in any way assist Roselli. Maheu was so advised ofthe Agency's position. and he was in complete agreement withour stand. He further advised that he was not concerned about

19. Mr. Harvey reported to the Office of Security of hiscontacts with 'Roselli durfng November and De'cernber 1967 andJanuary 1968. It was his belief that Johnny would not seek outthe Agency for assistance in the deportation proceedings unlesshe actually faced deportation. Roselli expressed confidence thathe would win an appeal. ~

20. On 17 November 1970, Maheu called James OIConnell,Roselli's first Case Officer. to advise that Maheu's att.orriey, EdMorgan, had received a call from a Thomas Waddin, Roselli'sIawyer , who stated that .alLav:eriues of appeal had been exhausted,and his client now faces deportation. Waddin indicated that, ifsomeone did not intercede on Roselli's behalf, he would makea complete expos e of his activities with the Agency.

00047

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. any publicity as it affected him personally s hou'ld Roselli decideto tell all. He stated he would advise us promptly of any develop-rnerrts that Ire may become aware of in this rnatte r ,

Howard J. OsbornDirector of Security

~5 .... ...., r' . J~":'. "";'.... ..__1."'.. ;.,.,..,.- .. .:...-~.. ... .... ~ 00048

MORl DoclD: 1451843

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,~foudar, .1111I. 18, 1?:1 B 7, I.

THE WASUIXGTOX POST------------_.....:.....:....:..._----- -

It: . J{i -"'-1't n .,.,,,.~ in .fl.~ -rr7 "111 I(" 1f),7f:l;A_4 If). 7J ~ 7? .n: ~ (fr-x J.J t;1 .~ fil.Sd.,rcsI'.lfa.red Roselli. formerly mar-] Cuban, related to one of Cas. ' ...een fir e j e c ted immedl- dent Kennedy was gunned! rled to movie actress JUne Itro's .chefs, 10 plant the deadly'lately," . He vigorously denied1down in Dallas by Lee Harvey'Lang, was a power in the pellets in the dictator's food.that the CIA had ever partlcl- Oswald, a fanatic. who pre- movie industry Until his con'l on 1Ilarch 13,1961. Roselli de. : .pated in any plot on Castro's Iviously 'had agitated ior Cas- viction 'With 'racketeer..Willie livered the capsules to his con: .life. Asked whether the at' l tro in New Orleans and had Bioff ~n a million-dollar Holly-] tact at Miami Beach's glamor- ,tempts could have been madelmade a mysterious trip to the wood labor shakedown. The~ous Fontainebleau Hotel. : '.:with ~is knowledge. he re:lcuban Embassy in Mexico CIA assigned two of its mos t l A couple of weeks later justplied: "It could not have hap- City. trusted operatives, William about the right .tirne !o; theIpcned... Among those _priv~' to thelHar\'ey and James (Big Jlm>!'Plot to have been carrled OUIWe have complete contl-] CIA conspiracy, there is still a IO'Connell, to the hush-hush fa report out of Havana r.air/

'I'dence, 11 0 we v e r, in our'l nag gin g suspi~ion-unsup. ,murder mission. Usin/(. phony ICastro was ill. But he r Isources. ported by the \~arrE'n com'lnamE's, they accompanied ne- covered before the Bay of P;i~! The plot to knock off Castro :mission's fin.dings-that Cas- selli on trips to :Miami to line jim'asion'on April 17.1961.

;be:,:an as part of -the Bay of itro became awa~e of the U ,5. up the assassination tea~s. I Four more attompts \. I. toiPi~s op"I'::IiI'/1 The intent was, pld upon hls !l!,. aru! ~"m('ol The full story reads hk(' thp 'maet" on Castro's lire,,III {'lhniu;.;" 'Ih(' Cuban clit'taJllllw, rC'{'l'liitrcl (),\\:lld :.., :I'I;.!. s\'l'ip~. of a ,lam{'s Bond movie,' ,'; 19~.,Brl:M

MORl DoclD: l45l843

, A

( (THE \\'ASH1:\GTOX POST TUI'$aa.,.,r~b,23,19il B 11--------------- ---_._-----.:-

rfY1TA:VJiI 1", Jt,., :(,l,T'~I"M- l,~oh 1'" R ':>0 "'r!. :,~;;ii':'I!.;; jnr, ?("~,:,:li v-;:h ~('ac;y ?~:~(\;;'!;:: ;::~i:l on the CIA payrcll,

'I 1\ ~'.I' .,. Il~ ,"'IL ~ ';"_t'_ -i-: .... r to 1"'. - .:,..: ....~~I "" t n"-" j='\"':'l '""- "-r \t ...",; ":-~p~ri c...... t::~.s ;:,1.. 1 :1 r,."\ j-..,:,a zs-r H .1# :.. -' u. I , oQ. ,t,.!I - o' .,t. I .. J ~1/.t.". .., C ll"'- .... : t. :,."t .'. , .-... .... 1"..... . 0 "::" .:,. .... jf t _ t,. .:"J he my;::lfry Tt.in '\/101il,hc'.0 15 tlo" he l'-d j;--rlll'd un-t throuah a :,c: arive o~ Castro's .,.l:". \',_,,:1 ':(... , : .Jl ~:_ :f.....C . -al },ol "'- "",' :,\"1' .: \. I. IC1L H:I let..... I IL.. .=-" . .. . to d:.".:c:..:~s f:1':':r CL\. ;:..: .. .H1.S.. cnt: ".f', 1~f'C(' ~f'nc~ .t!"l"Co\C'r asslcnmonrs for the chef to plant In the d;cta~ors:'1'rv ev said he \-'Id ,;,',1-;-;' re-I _ .. " t l "I"C"';\'''' -" :. ! , G '.'. ~ .,('tIU"rn 0 ~.".""'~ .~."1 - ..... ;'i, .3.("'': \ 'fl"t _{r't:"'~ '-"I'o'-V,:t,- io l'lP- 't ,;c~,..- i'ij;s:- ...~r"';::r.n ar:ned'O'-"cr- ror TInt-cpt ~ -r-, ..J r"" r-rIi~"irll'l C3:-' t a r. .s hC":':l i~: Roselli for in- .lllGS federal fire;;rms act.ncr d\lrln,~ ,oe l\O;)rlll~T\\('n! bans wllhn~ to make an at,formatir.n. But he was sworn I _. ,ties. Opel""tin:: :alon:;: the Eal;d tC'mpt on Castro's life. OntC'.lto ~j:ence by the CIA and uo i H,e law was 'I'

MORl DoclD: l45l843

-.

. ,. -'--.'_00'-------------

D INTERNALUSE ONLY...,

._.---... - --_....;.._---_ ...._-.-

[J CON( ~NTfAl,O ( 'RNAl. i. ONLY..--

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-

ROUTING AND RECORD SHEETSUBJECT: (Optional)

----_.__._._-~--_ .... . r--'--- ---- -

FROM: EXTENSION' NO..r>.Howard J. Osborn . 0D~rector of Secu~ .-. ;':-CJ DATEI IHqs. 17 December 1973

TO: [Officer designotionl room number, and DATEbuilding) OFFICER'S COMMENTS (Number each commenl 10 show from wham

INITIALS to whom. Draw 0 line across column after each comment.)RECEIVED FORWARDED

./-

-&,/ ..1. IG StaffAttn: I ?

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---------------MORl DoclD: 1451843

S" f!o r:" 1:"1 ."'" .. .., 'r" ft.;;''-9r;~ .' 'i.iL~;,;;i ri~....'

17 Deca~er 1973

MEMORANDJM FOR TI1E RECORD

SUBJECI': Recent Activities of the Watergate SpecialProsecution Staff

1. Early in the evening of 10 December 1973 I received.,..;=a::...-.=:cte=l=eOF~h~efu~;~n~~e that he, m tum, had'receJ.v: a call fromntelligence Division, Washington'K1f.i1Fi"Rnnr~ffilPrIT~r-n;~'T"'rTl~

2. It SO""" that5 /had just spent an hour inconversation at his home WI:in the WashingtonMetropo1itanoll.ce DepartiTient Who had reportJto him on his inteIView that afternoon wi.th a Mr. Martin and a lvfr.Horowitz'lrosecutors of the Watergate Special Prosecution Staff.S had been subpoenaed for his appearance and he indicatedt:> Ithat the two prosecutors were princ::ipa1~y concernedWJ. h twO matters: . . .

\IIIIIIII

i

a. l\11at type of training had. the Agency givenmembers of the Washington Metropolitan PoliceDepartmentf how long were the courses? andhow often were they given? .

b. What support did the Agency provide to the ,Washington Metropolitan Police Department duringdemonstrations occurring in the Washington areain late 1969 and early 19701

3. I Isaid that he had been shown a long list ofnames and asked if any of them had been involved either lilth thetraining given the Washington J-;Ietropolitan Police Department or thesupport to the Washington Jo.fetropolitan Polic~ Department during thedemonstrations. L lcou1d ranernber only three names on the

~ist! They werefl I

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MORl DoclD: 1451843

4. The three individuals named by I Idid in factparticipate in both the training and support during the demonstrations.They are only three among others of myl Ispecialsupport group who were involved in these activities. Of extremesensitivity is the fact that these same individuals were engaged inother highly sensitive activities which could cause :the Ag6J."1.C:Y severeembarrassment if they were surfaced. today in the current l'l\"atergateclimate. II

s. I briefed the Director personally on this developmentand he indicated that if the training and demonstrations surfaced thathe would' simply acknowl.edge that this had occurred but as he hadassured members of Congress J we would not engage in this type ofactivity in the future. He agreed wi.th my suggestion that we have theLegislative Cotmsel brief Congressman Nedzi and Senator Stennis onthis since they have already been briefed on all activities of thisnature undertaken by the Agency in the past. I briefed Mr. Jo1mWarner, Acting General Counsel., and areed with him that we wouldmake no effort to brief members of my tootHand if they are subpoenaed. }Vfr. l\Tamer or members of his Sta f will1:;I1en cautdon them to only answer questions asked and not volunteeradditional infonnation. I am making a copy of this memorandtun availabletoI lof the Inspector General's Staff at the suggestionof the Inspector General, who I also briefed on this development. '

Howard J. OsbornDirector of Security

.......-~c: IG Staff Attn: 1"- _

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-(DATE)00054

REPLACES FORM \0-10\WHICH MAY 8E USED.101

~1EMORANQUN FOR:

FORM NO.I AUG 54

-

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61 0 USE PREVIOUS rxl~EDITIONS~ _.

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: DATe . 25 MAY 1973.

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Howar~ J. Osborn d,foDirector of Security 77 L

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i---------:---------:--~---------_._rI SU5JECT: (Optional)I

LIfROM:ii

TO: (Orr;co, designatio,n. room numb.,. ar>d L:.:...:...--J D.;.rEbu;lding) . 1-----=':,.....-----4

; : . ReCEIVED 'fORWARDtDOFFicER'SINITIALS

COMMENTS (Numbe, 'each camme,,1 to show from ""ho""Icl ...ham. Ora", a line across calum" aff&t eoc" com",,,,,'.)

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UNCLASSIfIED

.00055

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-----------------MORl DoclD: l45l843

(

MErdORANDUM FOR: Executive Secretary,CIA Management Committee

SUBJECT Project TWO-FOLD

1. This memorandum sets forth a recommendation for yourapproval in paragraph 5.

2. For the past several years, this office has been support-ing the Bureau of Narcotics and Dangerous Drugs (BNDD) by spot-ting, assessing, and recruiting personnel to form an internalsecurity unit whose primary mission is the detection of corruptionwithin -the BNDD. Subsequent to the recruitrn.entand" training stage,the individuals selected are turned over to the Chief Inspe ctor ofBNDD for operational guidance and handling in their various dom-e stic as sigv.ments.

3. Recently, this Agency has e xterided this activity bysupporting BNDD in the covert acquisition of individuals who arehired as Staff Agents utilized under nonofficial cover and directedagainst the principal international drug traffickers . These indi-viduals are true employees of the BNDD and, although all admin-istrative details relative to their employment are handled withinthe Agency,' they' are: unaware of any Agency involvement.

4. It is ~elt at this time that a reaffirmation of our supportto BNDD in Project TWO-FOLD is necessary and desirable.

5. Therefore, it is recommended that. appr-oval, be grantedfor the continuation of Project TWO-FOLD. as originally approvedby the Director of Central Intelligence on 12 February 1971.

~,9~~Director oa;:rity 00056

~I

. E (

SUBJ.ECT: Project TWO-FOLD

'-'y".1 '.' .' ; . J"'. ~ ~ J'-: ,;:. .....

MORl DoclD: 1451843

0">APPROVED:------=---------..,----..,-----

DISAPPROVED:----------

Di stribution:Orig. - Return to OS

1 - ER1 - IG

.0

* Per Mr. Colby's recommendation andDCI concurrence, terminate para~raph2 activity and continue paragraph 3 onlyas the -activity pertains to foreign assign-ments to collect narcotics intelligenceabroad. Copy furnished IG.

00057

MORl DoclD: l45l843

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SUBJECT: (Op!;onoll

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FROM: EXTtt~S'ON NO.-00 _ ..._._. _._ ....--_. _

DATE

DATE___.__.._ r ......- .____ OffICER'S COMMENTS (Number each comment 10 show I,om whom

INITIALS to whom. Draw a line aero .. column after each comment.)RECEIVED FQ&WA~DED

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MORT DocTD: 1451843

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.,~'May 1973

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MEMORANDUM FOR "THE RECORD

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SUBJECT: .G~neral: .. Office of Security Surv.ey. 1 ,.

. '...

-:--......-:--:-.. -:-."--:;.~."-:-:::-.",--:-",--:-..~'.--:-~~---. .. ;':,. . "'" ..'f" .. - ..' .'::'. ".". '. . ., .

1. At the Director's instruction, and with the concurrence ..of the thenDD/P, the Office of Security devedopedInfozmanrs in : ".:::~:...RID to report on the activities of RID er.q.ployees on whom security .. :':'~questions had arisen.... This program, which included upwards of a ... .'dozen informants at its peak, has declined to its present level.ofthree, only one of whom is reporting regularly on matters of ~urrent .

.

f

l .:. interest. . ':': .~; ....:/..,~~;".:., '. ; ..' . :':'''' '.:. :':'>. '. . .. , ....'0 ":'.' "'.: _. '..._ ~ .. ,:; .......: ~: :, _~.~,. ";' .' /~ ". -",

Z. 'The principal object of Security's interest. through this .~~.-"":"j informant is a female who was em.ployed in RID for..a nu.mber oi'yea:r's .1 until she resigned in 1969. Her r~s~gn?Ltion coincid~dwith the iniq.ationj of a security review on her by the Office of Security, but Security does .-

_c. t : not know whether the e:m.ploy~~waa aware of tbis..~:eC:~t.Y review Jat.,",:.: '.'-i the tUne o_~ber r~Si;:::on. '.,,, ~ :'~~':r~.;~~~:~:~,;;--:.:+:F'

I . 3. Security ' s interest in this em..ploye~wasoccasionedby,. '" ... :I reports that she had developed an increasing~yin'f::iixiate a.cquaintance,.,.;:>.::1 with a Cuban na.tional. .Reporting. by one in.form.ant~ who Was also.~;.;.. ":;;:~: .

.:. ::1 be~g de:elope~ bY.the-~~b~; suggested that. the ~.ubanmigh~h~~e::~;~:~::),L~;.:.,.j;'. '.;::~! an mtelli'gence lIlteres~.lD.the fem.al~.~.T~e .s~.~.~~~manta~so.;,.s.ub- ~.;~kY: .' ..", :~~:!...;.,... sequently reported that. the Cuban had nl.J:l?3.eroq,s other:contacts aInong . ;:., ," ".

:';~~}~;.,: ~; .;::_;~::;;~;;t:;;::~e;;:::::~;~:;:C:::::~~~iP~!~Wilf~~~:_ ..,... ~;:: ~.-::;::'~;'. ':: .:.::...' . .,,:..: c 4.:: Subsequent~:to.herdeparturelrom the. Agency,'" the ex-IUD -..1':;:;'''';';,'.;.:.

. .c. :.'. . : .. ,'. .. . ".~~.".''':.' . . :.... . . ~... . r ' " . ":, .. 1 '."._.. :: ';'. . .employee entered' into a common-Law :marital relc:tion~hip"with.~he~ ',:" ;"'; '.' :-, .,: -.. . capacity. she s.oli.cite~.busin~ss..~mong CfA- ~:t;lployees; "especi.ally; ;i.~'-";~::::; ::..... :.' ~i ..I'', .:.those requi;ring'p;;~~.;), 'SECa ..--".",,:~,-..~-~~;.',.,.:_: :::;"i~~~t~~;~i~1~:~i:i12~:~;;~~~h;i:~~t:.,.c~~rJff~:;.:~,., ...::

'. yJ. ~". , . ~I. .:. ~ (MORl DoclD: 1451843

5. Inforrnation on the backgr ound of the Cuban is fairly ex! cn s iv e ,but it is inconclusive. He is known to have been a rn crn.be r of anti-Castro organizations in this countr y, There are also reports thathis' rno the r was i mp r i son ed in Cuba at one time, There are otherepisodes in his life that suggest intelligence Involvernent all. his partwith some hostile service, but this is not yet definitely establi.shed.

6. The Office of Security has had at times a second informantin this case. His reporting has tended to confir m reporting by theprincipal info r mant,

8. The Offide of Security has been running this operation forover two years, in an effort to obtain conclusive proof of its intelli-gence nature. CI Staff has been kept informed.. The FBI, whichwas informed of the case at an early stage, has declined to take re-sponsibility for it, on grounds that it concerns CIA's internal security.As a result, the Office ofSecurity has been inhihited in the actionsit can take against the: Cuban susp-ect. On the other hand, Securityhas not taken any action against Agency em.ployees for fear of com-prorni s ing the operation.

9. It would appear to me that the, Office of Security has dalliedwith this case long enough. Apparently unable through positive measuresto resolve doubts about the case, O/S has followed the course of watch-ful waiting, hoping the Cuban would take precipitaif action himself thatwould give us the evidence we seek. In the m.eantim.e, our knowledgeof the relationship between the Cuban and the several other currentAgency employees with whom he is known to have contact continues

- 2 -

~.. .,',. ' ~ ,. . ;......~ ... 00060

,

."'- r..... ~.

~~-----------_.-MORl DoclD: 1451843

\ .

The possibility that the employee. In t)J:) DIVISIon may oe passInginformation on CIA's Soviet operations is too great to warrant furtherdelav in moving against her. I I

- 3 -

;;:zr.,.....-~ ..., '. ".: ,. ..t.. __ ,_" . 00061.

MORI DocID: 1451843

i . "' ....

Hemorandum to:

Subject: Offj.ce of Security Survey - Office of Security Support to B~DD1. In D~cember 1970 Robert Ingersoll, head of the Bureau of ~ar

cotics and Dangerous Drugs, asked Hr. Helnis if the Agency could givehim scir:-e ass ist.ance in shoring up the internal integrity of the BUDD.According to Ingersoll, the old Federal Bureau of Narcotics had beenheavily infiltrated by dishcnest and corrupt

... ...

/

MORl DoclD: 1451843

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JOLawrence

00063

MORl DoclD: 1451843

r'

o SECRET[J CO.. DtJHIf:\l----_. / """" ._-------- .. ---_.ROUTING AND RECORD SHEET

-_.

SUBJECT: (Optional)

.._--_.__._--_.-._---- '--_:'----'---._--_.' _._-- _._----.-_.-.------ ._--_.-.FROM, EXTENSION NO.

Howard J. Osborn-----------------------Director of Security D"TEI I 9 1973._-~ I- May .' --TO, (Offiter desJgflolion. room number, and DATE

buildin!!l OFFICER'S COMMENTS (Number each comment 10 show from whomINITIALS to whom. Oro .... 0 tine octose column after eoch comment.}

RECEIVED FORWARDED._---

l. Deputy Director forMaria gemen t & Service'

2. I---,..

3.~c;,\ ......---

4. '-" r

5.

6.

7.

8."

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10.

11.

12.

13.

14.-

15. 00064ADMIN

-

JIll'FORM 61 0 USE PREVIOUS 0 SECRET 0 .~Al 0 UNCLASSIFIED_3-62 EDITIONS CONFI DENTIAL I!J E ONLY

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"., , .

MORI DocID: 1451843

9 May 1973

MEMORANDUM FOR: Deputy Director for Management &' ServicesSUBJECT Press Allegations re Use of, Agency

Polygraph

1. This memorandum is fOT'youT information onlyand confirms a report I made to you by telephone earliertoday.

2. On 22 July 1971, an article was carried onAmerican proposals relative to the SALT talks in The NewYork Times over the by-line of William Beecher. It wasdevastatingly accurate and contained direct quotes froma Presidential advisory memorandum the White House hadsent to Mr. Gerard'Smith, Director, Arms Control andDisarmament Agency, a few days. earlier. The Presidentwas alleged to be furious with this unauthorized dis-closure of classified information and directed a. sweepinginvestigation within the United States Government todetermine the source of the disclosure.. Investigationwas conducted under the. di.r,ectton. ..Q~. Mr. Egil Krogh andMr. David Young, Staff Assistanf~ foMr. John Ehr1ichman,Counsel to the President for Domestic Affairs.

3. On the basis of investigations conduc~ed byState Security and Defense officials,' four' Tndividuals-"'-one individual in the Department of Defense and threeindividuals in the Arms Control and Disarmament Agency--were tabbed as leading suspects. Mr. Egil Krogh contactedme on 26 July 1971 and requested' that we arrange to polygraphthe three suspects in the Arms Control and Disarmament Agencyand volunteered the information that the Federal Bureau ofInvestigation would be asked to polygraph the. one suspectin the Department of Defense.

0-0065

MORl DoclD: 1451843

, I ~ \; ,:\ 11JJ( bi~Lf

4. I informed Mr. Krogh that from time to timein matters involving the national security the Agency haddetailed to Mr. G. Marvin Gentile~ Director of State,Security. a polygraph operator and a polygraph machine forhis use in polygraphing State Department employees '~10were recipients of allegations concerning their loyalty.I emphasized that this procedure had the Director'sapproval and that State 'clearly understood that the examin-ation was their total responsibility. I further informedhim that this was the only way we could undertake to enter-tain his request and that even then it would require thespecific approval of the Director. Mr. Krogh asked me toobtain such approval and work out such arrangements withMr. Gentile.

s. Later that same day, Mr. Krogh called Mr. Gentileand inquired as to whether the arrangements had been made.Mr. Gentile indicated they had and suggested that the same 'polygraph operator'be used to examine the Defense suspect.Mr. Krogh informed Mr. Gentile that he considered this anexcellent idea and that he, would instruct Defense officialsto make their man available to Mr. Gentile for 'a polygraph,examination.

6 The' four individual~ werel

I The polygraph'--..e""x'""acwm"'1-:;:n....anl:=-=.1,....,o"'n""""'s==--"'r"""e=sU.....l....-:r:.tl:'"'",e""-a """1-:::n:----';c:'-:.tr:,e=a=r=1""'n=g=-~l:rn'""'e'--="":ro"'udr men and the

resu~ts of the examinations were forwarded over my signatureto Mr. Gentile on 29 July 1971. A copy of my coveringmemorandum is attached.

7., Mr. Murrey Marder, a staff writer for TheWashington Post, in ,an article dated 3 September 197T,stated that a State Department spokesman had acknowledgedat a news briefing that agents of the Federal Bureau ofInvestigation had polygraphed State Department employeessuspected of leaking information on ,the SALT talks inJuly. Mr. John Edgar Hoover, then ,Director of the Federal

2

,SE ONLY

MORl DoclD: 1451843

... r . .

(' .

Bureau of Investigation, denied this allegation in aletter to The Washington Post and said that the polygraphexaminations had been conducted by another agency. Specu-lation centered around the Agency, but after a day or 50 7press speculation in this regard died away_

-S. Mr. Marder apparently has never been satisfiedand has been pressing Mr. Charles BraY7 State Departmentspokesman, for confirmation of Agency involvement. Mr.Bray learned today that Mr. Marder plans to use a pressconference to be held at 2:00 p.m. this afternoon to pressthis point further. Mr. Bray has been given guidance byMr. Gentile to avoid confirmation but if this is impossiblehe will indicate the examinations were conducted by StateDepartment Security officials utilizing an operator anda machine detailed to the Department for this purpose. Ido not know whether or not the fact that the government-wideinvestigation was directed by Mr. Egil Krogh is known toMr. Marder but I suspect that it is and that this is thereason why the matter has been raised again. Mr. DavidYoung was instrumental in pushing my office to conduct aninternal Agency investigation of this disclosure and the

White House was satisfied that no Agency employee wasthe source.

Attachment

00067

Directo.r

-------------MORl DoclD: 1451843

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:;'~:?",)i.:y ..~~$i5t3.;1t, 5.ecret;::.ryio: ::)~.c';..1=l~y.-. -... ':0 ~". '_""o_i .:...:.-:-. ::::"':J_''':.;':.::::1.:':~_~;:-::'.~.L.~ ~_ ......... _~:..

'2.... .:=~....::: !.:::t o;:le.r c a s e-s i;n.~;nl-vl2.:5 1::'1.2 1~3e o ; P0~Y~;:"~?~.1' i::;'3i=r:.Fi.~::.-ati7e ~":O I::.:;:::~nce~:ernade to r~ls ";\:1.~.llCY'3 1:l:.:,::)1:".::1::1:~~t i::l

~:~~3e .act i on s ,

3. 1\.5 you i;"?"il1 not a, the :L3?O~t.:J 3.Z"-:: not ~1.:::t3:;ii.:;d :2::!.U I3;"'..a11 de.f.er to jrao.: j~dJn:t~nt i::l !'''e;ard to tb'~ l~J~~i of cla':;3iiic~tio~.

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00069

MORl DoclD: 1451843

5 June 1973

MEMORANDUM FOR: Inspector General

SUBJECT Items in John Clarke Me m o r aridurnto the Director of Central Intelligence,dated 9 May 1973

attached rnemo r andurn had notThe first: "_- Use of CIA funds

for FBI and pro-or use

I. Two items in thepreviously been reported.and facilities tovision of technica equlpmen sagainst a l.-.. ----'

2. In a follow-up meeting with Mr. Clarke, he advisedthat involved here was the use of funds appropriatedfor CIAbein iven to the FBI in cashiers checks for the ur ose of

There was alsogency help given in Further, other

CIA~ cashiers checks were given to NSAwho. withsome ssistance, was working on II Mr. Clarke said he thought the only problemhere was in the use of funds, not in the operation. He thoughtthe only source of additional information on this subject wasMr.1 lof the DDO/CI Staff. .

3. The second item: "_- Use of CIA funds to helpState Department defer Presidential representational expensesof President Lyndon B. Johnson's trip to Southeast Asia. II

4. Mr. Clarke said the total amount of TIlOney requestedby State Department was $3, 000, 000 but that the Director wouldnot agree to this amount. The Director did supply funds intho s e instances where some operational activity was involved orcould be inferred, I, e , , I

"- ...JI Mr. C larkL.e-w-a-s-n-o""t-s-u-r-e-o'f:-;-;th;---e-a-m-o-u-n--;t-o"f-A"'--:-g=-e-n-c-y--

00070

S[CRET [YES QNt-

-------------MORl DoclD: l45l843

funds used. He felt that only Colonel White could" supplyadrlitional details. He said Senator Russell and Repre-sentative Mahon were advised of this Agency activity butasked not to be briefed in detail.

Attachmen t

Inspector

00071.

..../\:

MORl DoclD: 1451843

__ J ..._ A "-; I._I.

9 May 1973

MEMORANDUM FOR: Director of Central Intelligence

SUBJECT Per your instructions

1. I have no recollection of specific contacts with theEllsberg c as e, Watergate, or Young. Dick Helms' instructionsat the time regarding discussion of Hunt's previous employments h ou'[d be a matter of record.

2. Other activities of the Agency which could at some pointraise public questions should they be exposed and on which BillColby is fully conversant are:

-- CI activftyof Dick Ober3 DO/D.

j I., Iinvestmentsaccumulation of Government capital.

and

Use of CIA funds and facilities to acquire U. S.real estate for FBI and provision of technicalequipments by NSAI por use against

I .t'Use of CIA funds to help State Department defer v',

Presidential representational expenses of L. B. J . ./'Ytrip to SEA.. G

~....-----..--\L.-__fdhn M. Clarke

0007Z

MORl DoclD: 1451843

5 June 1973

MEMORANDUM FOR: Inspector General

SUBJECT IteIns in John Clarke Mem or-aridurnto the Director of Central Intelligence,dated 9 May 1973

1. Two items in the attached memorandum had notpreviously been reported. The first: It__ Use of CIA fundsand facilities to acquire U.S. real estate for FBI and pro-vis~on of technical equipments by NSAS ~or useagainat a ',-__. _

Z. In a follow-up meeting with Mr~ Clarke, he advisedthat involved here was the use of funds appropriatedfor CIAbelo iven to the FBI in cashiers checks for the purpose of

\'11ere was also I\ Further, otherL..-_.------. ~_

CIA monies in cashiers chec s were given to NSA who, withsome ~Ssistance,was working onl . '.

Mr. Clarke said he thought the only problemhere wastnte .use of funds, not in the operat ion. He thoughtthe only source of additional inforxnation on this subject wasMr. I p the DDO/CI Staff.

3. The second item: "-- Use of CIA funds to helpState Department defer Presidential representational expensesof President Lyndon B. Johnson's trip to Southeast Asia. n

4. Mr. Clarke said the total amount of money requestedby State Department was $3,000, 000 but that the Director wouldnot agree to this amount. The Director did supply funds inthose nstanceswhere some operational activity :vas involved orcould be inferred, i. e 1I IMr. Clark-e-w-a-.s-n-o-t'--s-u-r-e-o"'f the amount of Agency

00073

---------------MORl DoclD: 1451843

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funds used. He felt that only Colonel 'White could supplyadditional details. He said Senator ~ussell and Repre-sentative Mahon were advised of this Agency activity butasked not to be briefed in detail.

J.nspector

Attachmmt

i' '."

- 2 -00074

If

MORl DoclD: l451843

,

,

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1"'0 ..ROUTlNG AND RECORD SHEET

SUSJECT: "-(Optional)

f- ---------.._----- ....._._._-.. ----_._-- ----._,-- -----..--_.... .. ---- -"--"-'---_ ..-fROM: E).!ENSION NO.

D.irector of Finance- ,. ---""'-'--' ------

1212 Key Building I DATE-

7 ~1973TO: (Ollicer design02fion, 'oom number, and . DATEbuildingl

r---OFfICER'S COMMENTS (Numbe, each comment '0 d.ow (,am whomINITIALS 10 whom. Drow a line acron column afler each cemrnent.]

RECEIVED FORWARDED

1. Deputy Director. forMana ement &Services~.~

.----

3.

-

4. Director of Central Inte 1igenc eI IHeadquart rs

5.

6..

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7.

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MORl DoclD: IIIIIIIIIIIIIII1451843

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MORl DoclD: l45l843

orl MAY 1973

MEMORANDUM FOR: Directorof Central Intelligence

VIA Deputy Director for Management and Services

FROM Director of Finance

SUBJECT Special Other Government Agency Activities

1. I IColonel White, Executive Director-

r---_--'2~.'--1,-------...:....---------------=--..:

. 3. Detailees - The Agency has reimbursable and non-reimbursable agreements with the White House, Department ofJustice, Defense'Agencies, etc., based on signed memorandabetween the Director 'of Personnel and the various Agencies.

4.. pro~ect TWOFOLD - Reimbursement from Bureau ofNarco.tics an Dangerous Drugs' for training of BNDD agents bya domestic Agency Security proprietary.

5. I

l...-----I]00077

,! ......

MORl DoclD: 1451843

- 2 -

SUBJECT: Special Other Government Agency Activities

6. Payment to White House - Reimbursement to WhiteHouse as approved by Executive Director-Comptroller for$33,655.68 representing cost of postage, stationery andaddressing of replies to letters and telegrarn~'receivedby the White House as a result of the President's speechon Cambodia in May 1970.'

Ieinance

00078

-MORl DoclD: 1451843

't ..:.

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MORl DoclD: 1451843

- 2 -

SUBJECT: Special Other Government Agency Activities

6. Payment to White House - ReLmburs eracn t to \'fhiteHouse as approved by Executive Director-COl:lptroller or$33.655.68 representing cost of postage, stationery andaddressing of replies t~ letters and telegrams receivedby the White House as a result of the President's speechon Cambodia in May 1970.

(signed) Thomas B. YaleThomas B. Yale

Director of Finance

.....

Sf .00080

MORl DoclD: l45l843

-f..; '_' ., ..7-::J.- ;:\ ~ ! .' i 'JI.

I 07 MAY 1973~lEl:QRA"iDU}.1 FOR: Director of Central IntolligencoVIA Deputy Director for j!anagemcnt and ServicesFROt! Director of rin~nceSiJDJ!;CT Special Other Government Al;ency Activities

I Colon0l l';hi te. Lxecutive Director-

2.

r---------------------

3. Detailees - The Agency has reimbursable and non-reimbursable agreement s with the 11hite House. Depar-tment; ofJustice, Defense Agencies. etc based on signed memorandabetween the Director of'Personnel and the various ~gencies.

4. Pro~ect tWOFOLD - Reimbursement from Bureau ofNarcotics an Dangerous Drugs for training of BNDD agents bya domestic Agency Security proprietary.

s. I

I~,L- --;- _ 00081.

.. .

---------------MORl DoclD: 1451843

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SUBJECT: Special Other Government Agency Activities

6. Payment; to White House - HeinburSGHcnt to h'hiteIiouse as apl)TQved by Executive Director-ColJptrollcr for$33,655.68 representing cost of postage, stationery andaddressing of replies to letters and telegrams receivedby the White House as a result'of the President's speechon Cambodia in Mdy 1970.

(signed) Thomas B. YaleThomas B. Yale

Director of Finance

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p ." .u~~lA~SSI FI ED 0 1lI~ --:IlAl [J CONFI" ''lTIAl ~'ETU ONLY~---.- - ._----- -. --.' . -----~. ROUTING AND RECORD SHEETI

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*----.._--_.-,----_..'------ .---- EY.T~NSION rNQ."------------------_- -FROM:Deputy Director of Finance1212 Key Building I I IWE'-'-~'-';--'- -.I 24 May 1973~

TO: (Officer'..''"0'.... room "0';;'. 0"" l ~~"building)

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OFFICER'S COMMENTS (Number each comment '0 ,how from whomINITIALS 10 whom, Draw a line ocross column af'er each comment.)

REalVED FORWARDED. ,-

1- ~ I . .\ \IHea4qua r t e r J,s Attached are pertinent2.

__J documents and papers r e La t mj"'---3. to Para 6 of the Director of

Finance I S memo to the DCI4.dated 7 May 1973, Subject :

5."Special Other Government

- Agency Activities tl6...

I I7.. Warren D. MagnussoI8. . -

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/141'. Nagnusson' s phone conversatzlon ,'lith ;.~r. John Brown at approxfmat.e.Iy 10: 20on 26 May 19'10:

13: Guess we're back together again!

M: Got more problems?

B: Yes, don't know how much Watts told you.

M: I didn't talk to Watts. Think he called Colonel vJhite.

B:

M:

B:

M:

B:

Let me explain background. As a result of the Cali'lbodia speech, we I regetting relatively inundated with correspondence and normally all ofthis is sent to the Department of state for answering. What we'redoing -- we're continuing to sen~l1._c..2.!:~ co:r.r_e_i:!pg!!.cl.~!!~_t.9.~at~However , the President made, determination he'd like to answer supportover his signat~re here and 'we asked the Department of state tosupport us on this effort. They're in' a position wnere they can provideonly limited support at this time. They're committed for $10,000 whichwould probably handle' in the area of maybe 60;00~ r~_~ponses.' -How many responses altogether counting pros and cons?

The cons are quite a large group tha~ they're handling themselves also.

Are they going to be handling pros too?

....>-$.10 J 0Q'?2:.s .J'~:r:..J?r_o.s-=- They're doing cons. On pros they c~n pick up only~10,000 wort1i-;-We estimate it will be arounCL~&g.Q....~E 50,~d itlooks like at present time we've got over 100,000 responses in and itcould go upwards of -150,000 or greater. Looks like we'll need a minimum.of another $l(),c)6o;:p:rotra01.yrnareaoF $15,000z additional. This coverscost of printing, :postage and addressing:- '

M: Just printing, postage and addressing? Not any overtime for any salariesor anything like that?

13: No, the posting of the things we'll do ourselves -- by hand. No problem.We're talking about physical costs of job _..:. cost of stamps, cost ofenvelopes and cards, and cost of having them 'addressed by outside firm.We'll handle putting stalllp on, inserting, and sealing and mailing. Onlytalking about cost associated with three aspects of the operation.

M: Postage, address~ng and printing.C'

B: Yes, reason I asked NS/f. to see if they could arrange -- depending onhow volume goes -- probably another ?10,000 to ],000... _

M: T.i;l.ese are just pros? state is handling all cons themselves?

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Messrs. Magnusson and Bl'OiVU (continued - Page 2)

B: Yes, this is just portion of pros we're talking about. My understandingget in touch -,d.th you to vlOrk out mechahics O!~ how we woul.d l1cuid.le the

.billing to make sure it's straight and we do i t properly so it fits inwith your accounting system.

M: This is only portion o:f pros. State doing some too?i

B: Th~~re~QD~'ibuting~~lO.OOO to the pros as well as doing all the C~S.They're picking up quite a load as a 1~t-ofth1S:-0neh-eu of a lotof response c~ning in on this.

M: Bound to be. Tell you, John, let me give you a call back later todayif I may. Have to take a look about where I would fit this stuff in.Al'e you going to be in this afternoon?

B: I'll be around. 1f I'm not in my of:fice I'll get back to you as soonas I come back.

M: I'll give you a call then.

B: Can't be real definite -- not sure how we're going to peak out. Notsure what backlog is. I'll check into that so When we talk thisafternoon I can be little more def'inite. Probably run into that are~,I think.

M: Okay, 1 111 get back in touch'with you.

B: Okay, thank you, Warren.

, End of Conversation

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Nr. Magnusson's phone conversation with Col. vJhite at 15: 40 on 26 Hay 1970:

M: I talked 'vith John Brown today and it seems like -- as you mentioned --as' a result of Ca:rnbodia, inquiries going 'into 1'r'11ite House. The stateDepar'tmerrt is doing 'all the work on the, cons -- there are pros and cons.The state Department is going to answer all the cons and the President hasdetermined that he warrt s to answer personally all the pros. However, thestate has agreed to pick up some of those too in the amount of $10,000.That. will cover maybe 60,000 of' the arrswez-s, They estimate there I s goingto be from 100,000 to 150,000 answers that will have to be put out bythe lvnite House. Estimate it's going to cost about $8,000 per 50,000.Think it might go to 150,000. $10,000 to $15,000 additional which theWhite House will have to pay for. The charges are only going to be. forprinting, postage and addr-easd.ng by an outside firm. No salaries forovertime or anything like that. They're going to lick the stamps in the1voite House, paste the stamps on and insert the message into the envelopes.John Brown said he had requested NSC to see if t.hey could arrange, .presUDlably with us, I guess, for another $10,000 to $15,000 depending onvolume. He was tailing as more or less foregone conclusion we would doit. I made no commitment. Told him I'd look into it.

W: How would we do this?

M: We would do it by asking them to pay amount and then send over 1080to us with bill for the postage, bill for the addressing of the envelopesand bill for the printing' accompanying this and we woul.d just send checkback. They would send short memorandum lvith it certifying these are thecharges. . . .

W: I think we want to know what we spend our money for but I 'don't think wewant tlfe public records to' show' that we paid for it.

M: What we can do, Sir -- I can ask them to send over a 1080 with certifica-tion that these are the charges for classified services per our conversation,and if you're willing to take that we can certainly do it that way.

W: Will this be an outside firm? CouIdn't we just pay the firm? What would.be better? 1 1m not sure.

M: I think a short memo just saying attached 1080 is for charges previouslyagreed to between this Agency and themselves and that's all and th