14-00000
104-10173-10130
2025 RELEASE UNDER THE PRESIDENT JOHN F. KENNEDY ASSASSINATION RECORDS ACT OF 1992
SECRET
MEMORANDUM FOR THE RECORD
SUBJECT: E. Howard Hunt.
NOTED
ges
20 December 1973
1. I phoned Paul Burns, Special Assistant to the DDO, and
said that we had some leads that could be followed by whoever has
the action in the DDO in tracking down Hunt's activities during the
fall of 1964, when he was alleged to have been engaged in surveillance
activities of Barry Goldwater.
"
2. I said that our files showed Hunt was in DO Division (Burns
was not familiar with that title, but recognized it as the predecessor
of FR Division) and in August 1964 was assigned to the Washington
field office. I suggested that Stan Gaines, who was Deputy Division.
Chief of DO Division and now DCOS Bonn, might be in a position to
give a few groups on what Hunt was supposed to be doing then. I
suggested that he be queried by cable. Burns said Gaines is staying
on under contract for a while, so would continue to be available.
3. I said that Fig Coleman was on the Iberian desk when the
Hunt assignment to Madrid was brought up in 1964 and when Hunt
went to the field in 1965. He could give the background on the assign-
ment, which seems to have been through Karamessines at Helms!
direction. His recollection would give leads. I told him that Coleman
became COS Madrid later, after Hunt left Spain, and could provide
information on what Hunt did not do for the Agency during that period.
I suggested that both Helms and Karamessines should be queried.
I gave as a possible press treatment that Hunt was engaged in
domestic operations (something Senator Baker is pursuing) and that
his assignment to Spain after the election could be presented as giving
him time to cool off. I thought we had to pursue the matter to be
sure we know the facts.
4. I asked Burns to be sure that we are on information distribution
of cables to the field on this, given our assigned responsibility for
keeping files on Watergate. He said we are on the PLMHPLANK for
I said we are
messages to Helms. He would advise the action officer.
available for any help we can give.
ܚܝܬ,
S. D. Breckinridge
5:
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1.
SECRET
NJT
DFG
MEMORANDUM FOR THE RECORD
SUBJECT: E. Howard Hunt
20 December 1973
ges.
1. I phoned Paul Burns, Special Assistant to the DDO, and
said that we had some leads that could be followed by whoever has
the action in the DDO in tracking down Hunt's activities during the
fall of 1964, when he was alleged to have been engaged in surveillance
activities of Barry Goldwater..
2. I said that our files showed Hunt was in DO, Division (Burns
was not familiar with that title, but recognized it as the predecessor
of FR Division) and in August 1964 was assigned to the Washington
field office. I suggested that Stan Gaines, who was Deputy Division
Chief of DO Division and now DCOS Bonn, might be in a position to
give a few groups on what Hunt was supposed to be doing then. I.
suggested that he be queried by cable. Burns said Gaines is staying
on under contract for a while, so would continue to be available.
3. I said that Fig Coleman was on the Iberian desk when the
Hunt assignment to Madrid was brought up in 1964 and when Hunt
went to the field in 1965. He could give the background on the assign-
ment, which seems to have been through Karamessines at Helms'
direction. His recollection would give leads. I told him that Coleman.
became COS Madrid later, after Hunt left Spain, and could provide
information on what Hunt did not do for the Agency during that period.
I suggested that both Helms and Karámessines should be queried.
I gave as a possible press treatment that Hunt was engaged in
domestic operations (something Senator Baker is pursuing) and that
his assignment to Spain after the election could be presented as giving
him time to cool off. I thought we had to pursue the matter to be
sure we know the facts.
I asked Burns to be sure that we are on information distribution
of cables to the field on this, given our assigned responsibility for
keeping files on Watergate. He said we are on the PLMHPLANK for
messages to Helms. He would advise the action officer. I said we are
available for any help we can give.
التربية
S. D. Breckinridge
L
14-00000
MEMORANDUM FOR: OPS/RMO
SECRET
9 May 1974
SUBJECT
: Watergate File Research Final Report:
-
1. The files of the immediate office of the Chief, OPS/OSG
have been checked for material relevant to the subject of this
memorandum. The check included chronological files of communi-
cations of which I was the author while assigned to Madrid, Spain
in the period July 1970 to July 1973. Nothing pertinent was found.
2. I have attempted to recollect any other details which
conceivably could be pertinent and which relate to the period
of my assignment to Madrid. The only points which I recall but
on which I have no documentation are these:
a. There were occasional joshing inquiries made of me
by American residents of Madrid about the reported presence
in Spain of E. Howard Hunt in 1972. My standard reply was
that I knew only what I had heard rumored. For the record,.
at no time did Hunt contact me, and I have never known of his
having tried to contact any Station personnel in Spain during
the period 1970-73. I made no effort personally to ascertain….
whether or not Hunt was in Spain, and I had no effort made by
any Station member..
b. A Station officer, possibly Richard Ouderkirk, now
assigned to Guatemala, was given some information by an
informant in 1972 concerning reported activities in Spain
by Robert Vesco. I suggested that the information be given
informally to the Embassy's Economic Section chief, John
Oliver. That officer was charged with keeping abreast of
developments related to Vesco. The Station did. not pursue
that subject, as I recall, because it was not a topic of
reportable interest, according to requirements of the period;
SECRET
E2 IMPCET
CL BY 056759
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SECRET
-2-
SUBJECT: Watercato File Research Final Report (cont'd)
3. There is no other employee assigned to my immediate
office who has relevant personal knowledge of events and
personalities.
Robert E. Den
Robert E. Owen
Chief, OPS/OSG-
SEOPET
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☐ UNCLASSIFIED
☐
INWAL
USE ONLY
SUBJECT: (mo
FROM:
Director of Finance.
1212 Key Building
TO: (Office designation, room momber, and
building)
Inspector General
2 E 23 HOS.
2.
CONFITIAL
SECRET
ROUTING AND RECORD SHEET
DATE
RECEIVED
FORWARDED
27
"
EXTENSION
NO.
DATE
OFFICER'S
INITIALS
27 February 1974
COMMENTS (Number each comment to show from whom
to whom. Draw a line across column the each comment.).
نا
Bidenridge
Sandy-and-W
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Wfile
10.
11:
12.
13.
14.
15.
Wilm
1
CAUPIPELI
רח
INTERNAL
Action
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MEMORANDUM FOR:
SUBJECT
SECRET
L
Inspector General
: Howard Hunt
27 FEB 1974
1. At the recent request of the Deputy Director for
Management and Services, the Office of Finance has searched
its records to determine if we could find any payment to
Mr. Hunt in an amount of approximately $30,000 that required
no accounting.
2.
We have searched the following records:
_a.
b.
The expense runs for the period July 1964 to
June 1973 for the immediate Office of the DCI,
the immediate Office of the DD/P, FI Staff,
CI Staff, CA Staff and the Office of Security.
We have checked various items that were re-
flected in these expense records but have
identified nothing relating to Mr. Hunt.
The Madrid Station, JMWAVE and FR/Washington.
Office accountings to determine if there were
funds passed by the Stations to Mr. Hunt during
the year he served under non-official cover in
Madrid. We could find no payment to Mr. Hunt
either in his true name or his two identified
pseudonyms.
Mr. Hunt's travel claims for the period.
1960-1972 and have found nothing in these
travel claims that were not consistent with
normal travel expenses, i.e., transportation,
per diem.
We made a specific analysis of Mr. Hunt's
advance account for the period he was under
non-official cover (July 165-Sept '66) and have
SECRET
E2
IMPDET
CL BY: 006567
14-00000
SECRET
SUBJECT:
Howard Hunt
determined that $33,500 was advanced to him
for travel and transportation of household
goods to and from Madrid with one trip to
Paris for he and his family to renew their
Spanish visas. All of this advance was fully
accounted for. However, in his accounting,
It was an
one item appeared unusual.
expenditure of $1,600 for a sensitive
operation which was approved for write-off by Mr.
Desmond Fitzgerald on 1 June 1966 without
further accounting.
3. Also, we confirmed that no other Agency advance accounts
were established for Mr. Hunt during this period.
The
.4. At the beginning of his non-official cover tour, it
was necessary to establish a bank account in his name.
EUR Division accordingly requested we open an account at the
Chase Manhattan Bank in Mr. Hunt's name to receive all non-
salary payments. (Mr. Hunt had an account at Riggs National
Bank to receive his salary and allowance payments).
following deposits were made to the account during 1965 and
1966:
Account opened: 13 July 1965
The
13 July 1965
$10,000
22 July 1965
5,000
15 September 1965
5,000
6 October 1965
5,000
19 July 1966
5,000
$30,000
All of the above have been accounted for by submission
of travel and transportation accountings.
.5. We feel at this time without specific guidelines that
One strange.
further searching would be somewhat fruitless.
aspect of the non-official cover assignment in Madrid is that
all the costs were charged to the support allotment of the
EUR Division which is not normal as non-official cover people
It is unusual to have a
are usually assigned to a project.
case officer abroad for one year on an operational assignment
without him incurring operational expenditures.
.2.
SECUFT
14-00000
SUBJECT: Howard Hunt
SECRET
6. The Office of Finance has not found. operational
expenditures except for the $1,600 mentioned above.
Therefore, it is suggested that Mr. Karamessines be questioned
as to a project or projects to which. Mr. Hunt's operational
expenditures if incurred would have been charged.
7. Another possible course of action is to request the
Director to approve my asking a cleared contact at Chase
Manhattan Bank to provide a transcript of all entries into
Mr. Hunt's Chase Manhattan Bank account.
8. We are currently reviewing records of all cashier's
checks prepared and issued by Monetary to determine if any.
were payable to Mr. Hunt. Hopefully this effort will be
finished by the end of the week.
3
Thomas B. Yale
Director of Finance
✓
SECRET
14-00000
CONFIDENTIAL
MEMORANDUM FOR THE RECORD
SUBJECT: E. Howard Hunt
20 December 1973
1. I spoke with Fig Coleman about Hunt's assignment to Spain.
I had spoken with him back in August when we were inquiring into
reported activities involving Mrs. Hunt.
2. Coleman said that he got out of the War College in May 1964
(by which he fixed the time), and took over the Iberian desk. Bill
Ryan was C/EUR (or was it WE Division at the time). In early autumn
Ryan said that he had just been informed by the DDP (Karamessines).
that Hunt was to be assigned to Madrid as DCOS, as a directed assign-
ment by Helms. A mémo was prepared and sent to the COS, Jim Noel
(now retired). There was nothing further for about a month when Ryan
called Coleman in and showed him a RYBAT letter from Noel stating
that Ambassador Stanley J. Woodward would not have Hunt in the
Embassy.
3. Woodward had been the Ambassador to Uruguay when Hunt
was COS Montevideo. He had a low opinion of Hunt and was counting
the days until Hunt left. The President of Uruguay visited President
Eisenhower in the States, at which time he requested personal favor-
that Hunt be reassigned to Montevideo. So Hunt took another tour.
Woodward was outraged, and had his revenge in 1964 when Hunt was
to be sent as DCOS to Madrid.
4. After a couple of months--early 1965--Ryan called Coleman
in and, observing that there was more than one way to skin a cat,
told him that Hunt was going to Spain under nonofficial cover. This
didn't require anything special, Ryan saying that he didn't know.
much about it. It came to him from Karamessines on Helms' order.
Hunt was to have the telephone number of the COS, but he would do
nothing for the station. Hunt was to submit administrative vouchers
for reimbursement of his expenses and they were to be paid. – Coleman
said he never saw Hunt before he went out. He knows that there was
no operational reporting, to indicate that Hunt was doing anything.
14-00000
CONFIDENTIAL
The vouchers were not large, although the documentation was poor.
Coleman raised the question with Ryan about his signing off, and
Ryan said he could talk to Karamessines if he wished. Весливе
Coleman had a close personal association with Karamessines he
did just that. He was told by Karamessines that he didn't know much
about it either--"Helms said send him out." He was instructed to go
ahead.
5. In early July 1966 (4 July) Coleman went to Madrid. He
had a ten day turnover with Jim Noel. Hunt had already gone and
he did not 
see him. Noel said he didn't know what Hunt did, but
that 
Coleman need not worry because he was gone.
...
press.
6. Several months ago Noel was at a seminar at which
Ambassador Woodward was also present. At the time he asked
about 
Hunt. Woodward said it might still be dragged into the
Tad Szulc 
had been after Woodward about the Hunt assignment to
Spain. Coleman observed that Szulc did have a long article on Hunt
in the New 
York Times, and the Spain assignment was mentioned,
but without 
any conclusions as to its significance.
7. Coleman said the RYBAT file of C/EUR may have something on
the event
, but not 
much. A letter out and the reply, but not much more.
1
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S. D. Breckinridge
2
GORRIGENTIAL

14-00000
22 February 1974
MEMORANDUM FOR THE RECORD
SUBJECT: E. Howard Hunt--Madrid Assignment
IG File !! Tub 38
1. On 22 February 1974, Mr. Frederick N. Evans
and the undersigned interviewed Mr. Edward Ryan,
Chief, Staff D, Deputy Director for Operations, on
the subject of Mr. E. Howard Hunt. During the period
of Mr. Hunt's assignment as a Contract A agent
to Madrid between July 1965 and September 1966, Mr.
Ryan had been the Deputy Chief of the Western European
Division, Deputy Director for Plans. The purpose of
the interview was to determine if Mr. Ryan had any
information bearing on the matter of the operational
assignment of Mr. Hunt during this period.
2. Mr. Ryan stated that the assignment of Mr.
Hunt both to the European Division and to Madrid was
handled without benefit of the routine processing
procedures through the Western European Division.
Mr. Hunt's assignment was coordinated and directed
by Mr. Thomas Karamessines, the Assistant Deputy Director
for Plans. With regard to operational duties, Mr. Ryan
was unaware of any specific project or target for Mr.
Hunt.. Mr. Ryan made the specific observation that if
Mr. Hunt produced positive intelligence on the Iberian
target during this period the officials responsible
for this effort within the Western European Division
were totally unaware of it.
3. Mr. Ryan stated that most of his knowledge of
Mr. Hunt's activity and the nature of his assignment
during this period came more through hearsay than
direct official knowledge. For example, he cited the
comment made by a mutual acquaintance of his and Mr.
Hunt's to the effect that Mr. Hunt stated that while
in Madrid he was going to "play golf and write books.
Mr. Ryan was asked specifically whether or not he was
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"under the impression that Mr. Hunc's Writing activities
were either being encouraged or subsidized directly
by this Agency in any official effort. Mr. Ryan re-
sponded that he was personally not aware of any such
arrangement. He added as an expression of personal
opinion that Mr. Hunt had no operational function and
was simply granted the opportunity to write books for
his own personal gain at Government expense during this
period.
Lawrence J. Howe
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TION TOP AND DOTFOM
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1
Mr. Howe
3
3
S
DATE
INITIALS
6
ACTION
APPROVAL
COMMENT.
CONCURRENCE
Remarks:
DIRECT REPLY
DISPATCH
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FCM NO. 237
the previous editions
DATE
22 Feb 74
SECRET
(40).
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CHECK CLASS.
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(l'l:
SECRET
16 File 10, Tale 32
22 February 1974
MEMORANDUM FOR THE RECORD
SUBJECT: Conversation with Sam Halpern
1. I met with Sam Halpern for about 20 minutes this morning
in GG10, where he is cleaning up some details before he goes to
his new assignment as DC/DCD. I told him generally about our
attempt to reconstruct Howard Hunt's assignments and financial
transactions, and asked him particularly for recollections he may
have of Hunt's assignment in Spain in mid-1965 to the fall of 1966.
2. Halpern said that he has no recollection about such an
assignment. In June 1965 he moved from WH Division with Des
FitzGerald when he became the DD/P. At about that time
Halpern's father died and he was in New York for the funeral
and ten days of religious observations following that. He was back
in mid-
June and in and out from then on as he got ready to attend
the National 
War College which began in August. He did not return
to that office 
until the end of June 1966.
3. Halpern observed that during this period Karamessines
was ADDP with Helms moving up to be DDCI. He thought it entirely
possible 
that Helms and Karamessines could have handled this
on their own.
4. Halpern said that Evan Parker had come into the office
of the 
DD
/P shortly before Helms became DDCI, and had returned
from 
Honolulu for that purpose. He stayed on for FitzGerald until
Halpern 
returned from the National War College. He suggested
someone 
might talk to Evan Parker who may have known something
about it (
although he may not). He also suggested talking to Georgia.
7s/ S. D. Breckinridge
S. D. Breckinridge
SPARES
_IMPORT CL BY.
0:3198
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(
#6 Fals 12, Tuch of
21 February 1974
MEMORANDUM FOR THE RECORD
SUBJECT:
Watergate--Frank A. O'Malley
1. At 3 p.m. on the afternoon of 19 Bebruary 1974,
Mr. Frederick N. Evans and Lawrence J. Howe interviewed
Mr. Frank A. O'Malley at his residence, 6419 Lakeview
Drive, Falls Church, Virginia. Mr. O'Malley retired
from this Agency in June of 1972. Prior to retirement
Mr. O'Malley was an officer in the External Employment'
Assistance 
Branch, Retirement Activities Division of
the Office of Personnel. It was Mr. O'Malley's function
to assist personnel retiring from this Agency in finding
post-retirement employment. In this capacity Mr. O'Malley
had been 
instrumental in the placement of Mr. E. Howard
Hunt in the Robert R. Mullen public relations firm. The
purpose of this interview was to attempt to determine if
additional 
information could be developed from Mr. O'Malley
with 
regard to the placement of Mr. Hunt with the Mullen
Company.
2. Mr. O'Malley began the interview by recalling
the nature of his past Agency associations both with Mr.
Hunt and the Mullen Company. Mr. O'Malley stated that
prior to assuming his responsibilities in the Office of
Personnel he had served with Central Cover Staff in the
area dealing with the funding of covert action projects.
In this 
capacity he had become familiar with the acti-
vities 
of Mr. Hunt while Mr. Hunt functioned on the Covert
Activities Staff primarily in the propaganda field. Mr.
O'Malley stated 
that he first came in contact with the
Mullen Company when he was attempting to find an organi-
zation to 
handle the public relations effort of a covert
Agency activity known as the Free Cuba Committed. Mr.
O'Malley related that he had arranged this cover through
the Christianform Organization and that his duties in
volved all aspects of the funding of this activity. Mr.
O'Malley described the nature of his working relationship
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with Mr. Robert R. Mullen as being close and cordial.
Mr. O'Malley stated 
that Mr. Mullen was in the habity
of confiding to him 
information .concerning other Mullen
business contacts and 
projects. In response to a
specific question
, Mr. O'Malley Stated that during the
period of his contact with 
the Mullen Company dealing
with the Free Cuba Committee
, Mr. Mullen told him the
Howard Hughes 
Organization was a client of the concern.
3. Nr. O'Malley reiterated his previous statements
that 
Mr. Hunt was referred 
to his office for placement
assistance through the 
Office of the Executive Director,
then Colonel L. K. White. 
Mr. O'Malley stated that in
view of Mr. Hunt's interests in the public relations
field, it was thought 
advisable to put Mr. Hunt in touch
with Mr. Robert Mullen for 
the purpose of gaining the
benefit of Mr. Mullen's 
guidance. Mr. O'Malley recalled,
after the initial meeting, Mr. 
Mullen mentioned having
met Mr. Hunt some years 
previously in Paris, France.
Mr. O'Malley's office arranged 
interviews with various
organizations including 
Reader's Digest and the Kennecott
Copper Company. Through 
the offices of the Mullen Company'
an interview was arranged with the 
General Foods Corpora-
tion, a Mullen client. Mr. 
O'Malley stated there was.
disappointment that Mr. 
Hunt had been unsuccessful in
"selling himself" 
during any of these interviews and that
no job offers had resulted. 
In response to a question
as to whether or not executive level interest was still
being shown in Mr. 
Hunt's post-employment placement,
Mr. O'Malley recalled that 
Mr. Richard Helms, then
Director of Central 
Intelligence, was listed as a charac-
ter reference on Mr. Hunt's 
resume and that Mr. Holms
signed a letter of 
recommendation to the Kennecott Copper
Company on Mr. Hunt's behalf. 
Mr. O'Malley recalled being
contacted in the last month 
of Mr. Hunt's Agency service by
Mr. Mullen, who stated that a decision 
had been made to
expand their operations
. In view of this expansion, Mr.
Mullen, had decided he would himself 
offer Mr. Hunt a job.
Mr. Mullen had stated that 
he was interested in having Mr.
liunt begin work immediately. 
However, Mr. O'Malley re-
called that Mr. Hunt completed 
retirement formalities and
actually started work 
for the Mullen Company approximately
a week to 10 days later.
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Mr. O'Malley stated that contact was maintained.
with Mr. 
Hunt while at the 
Mullen Company on a continuing
basis, because Mr. O'Malley was 
interested in Mr. Hunt.
for possible referral of other 
Agency retirees.
O'Malley also understood 
that there was Cover and Com-
Mr.
mercial Staff interest 
in the Mullen Company, and that
Mr. Hunt became instrumental in 
discussing several aspects
of the cover operations in his 
capacity as an officer of
the company. Mr. O'Malley 
recalled referring various
Agency officers to Mr. Hunt for guidance 
when these indi-
viduals expressed an interest 
in entering the public
relations field. Mr. O'Malley 
did recall disappointment
in feeling Mr. Hunt had generally 
been less helpful on
these occasions.
.5. Mr. Hunt contacted Mr. O'Malley on several occasions
requesting 
referral of retiring 
Agency employees with
specific qualifications. These 
instances occurred apparent-
ly after Mr. Hunt had assumed his 
responsibilities with
the White House. In one instance 
Mr. Hunt requested re-
ferral of a recently retired 
Agency secretary..
previous memoranda and 
discussions, Mr. O'Malley was unable
As in
to recall the name of this individual.
state 
that he is quite certain Mr. Hunt turned down the
He did, however
,
individual whom he referred. 
As a point of clarification,
Mr. O'Malley said that this 
individual had not previously
been known to Mr. Hunt, nor had 
she previously worked
for him in any capacity. Mr. 
O'Malley also recalled. a
request from Mr. Hunt for an 
individual having skills in
the area of locks and surreptitious 
entry. A resume of
Mr. Thomas C. Amato was provided 
to Mr. Hunt at that time.
It is Mr. O'Malley's recollection 
that Mr. Hunt specifically
stated that a person with Mr. Amato's 
qualifications was
needed in connection with a 
requirement of the Howard
Hughes Organization in Las 
Vegas, Nevada. Mr. O'Malley
stated the opinion that it was 
his impression that the
duties involved would include the 
monitoring of a listening
device in an undisclosed location. 
Mr. O'Malley reiterated
his understanding that Mr. Amato did not accept Mr. Hunt's
offer of employment.
6.
Mr. C'Malley then recalled request from Mr. Hunt
for a 
recommendation of a security 
service organization
to carry out an electronic 
countermeasures "sweep." Mr.
O'Malley recommended the 
Wackenhut Corporation. Mr.
14-00000
O'Malley recalled that Mr. Hunt expressed dissatisfaction
with that suggestion in part 
because of what Mr. ¡¡unt
viewed as that firm's political 
orientation.
did not claborate further 
on that remark.
Mr. O'Malley
then suggested 
the use of Anderson Security Consultants,
Mr. O'Malley
Incorporated, a commercial cover 
entity of the Office of
Security. Mr. O'Malley stated 
that insofar as this.
organization was advertised 
in the yellow pages and that
Mr. Hunt could be assured of the 
reliability of the ser-
vices, he felt this to be a 
reasonable suggestion.
O'Malley stated that during 
a subsequent phone call when
Mr.
Mr. O'Malley asked how his 
suggestion had worked out,
Mr. Hunt responded, "Yes, they 
had done a fine job."
At this point Mr. O'Malley was 
asked whether or not from
his associations with Mr. Hunt he 
felt Mr. Hunt was in
the habit of making glib 
comments which were not neces-
sarily accurate in order to pass 
over a subject. Mr.
O'Malley stated that this was 
categorically so.
he was sure that Mr. 
Hunt had lied to him on a number of
He said
occasions and that, therefore, he 
was in no position to
be sure that Mr. Hunt had actually
, in fact, used the
services of Anderson Security 
Consultants.
volunteered the 
opinion that he suspected the electronic
Mr. O'Malley
countermeasures "sweep" was to be 
carried out in the offices
of the Committee to Re-elect the 
President. .
.7. In response to a question as to whether he had
ever 
referred anyone to 
McCord Associates, Mr. O'Malley
replied that he remembered having 
referred Walter Brayden.
Mr. Brayden for a time acted as 
bodyguard to Mrs. Martha
Mitchell. As an aside Mr. O'Malley 
mentioned that Mr.
Brayden had refused to carry a 
firearm in spite of the
fact that Mr. McCord told him he 
could do so on the author-
ity of the Attorney General. Asked 
specifically if he had
ever referred either William Shea or Teresa Shea to Mr.
McCord, Mr. O'Malley stated 
that he did not recall spécif-
ically referring Teresa Shea and that 
he was sure that he
had not referred William Shea to him.
previous 
statements, it is now Mr. O'Malley's belief that
So, contrary to
in all probability Mrs. Shea was 
not referred by this
Agency to Mr. McCord.
1
14-00000
8. Ret. .ning to Mr. O'Malley's previous responsibilities
in 
coordinating funding for the 
covert action activities
of Mr. E. Howard Hunt, 
the issue was raised as to whether
or not the funding of 
Mr. Hunt's projects continued between
July 1965 and September 1956 
while Mr. Hunt was a contract
employee stationed at Madrid, 
Spain.
that at 
the time of Mr. Hunt's assignment to Madrid the
Mr. O'Malley 
recalled
statement disseminated 
for consumption within the Agency
was that Mr. Hunt was retiring.
this was not generally believed.
Mr. O'Malley stated that
certain that during this period his office handled no
Mr. O'Malley was 
quite
project funding for Mr. Hunt
.
question Mr. O'Malley stated that on Mr. Hunt's return to
staff employment the projects 
and funding which stopped in
July 1965 were again resumed. 
Mr. O'Malley was not aware
In response to specific
of any project names or funding mechanisms or post-assignment
accountings in connection with Mr. 
Hunt's activities in
Madrid.
5
Frederick N. Evans
Lawrence J. Howe
༡
14-00000
2
inleyin
IG
21 February 1974
MEMORANDUM FOR THE RECORD
SUBJECT: Office of Finance Records
-
E. Howard Hunt
1. On the instruction of Mr. Steven L. Kuhn, Chief
of 
Operations, PSI, 
the undersigned made an appointment
for the afternoon of 20 February 
1974 to interview Mr.
William Caufield, Chief, 
Certification and Liaison Divi-
sion, Office of 
Finance, and Mr. Joseph Hudson of Pinance
on the subject of Mr. E. 
Howard Hunt.
the interview Mr. Caufield advised the undersigned that
At the outset of
instruction had been received 
from the Director of the
Office of Finance, 
Mr. Thomas Yale, that discussion on
the subject of Mr. 
Hunt was to be carried out only with
the Office of the 
Inspector General.
that he 
had informed Mr. Yale of the requested interview
Mr. Caufield stated
and had received this 
instruction with the suggestion
that the undersigned 
contact Mr. Yale directly with any
inquiry.
2. Accompanied by Mr. Caufield, the undersigned
briefed 
Mr. Yale on the 
nature of the request and iden- ·
tified the "Task 
Force" offort being undertaken by the
Office of Security in 
concert with the Offices of the
Inspector 
General and Legislative Counsel.
responded 
that he recognized the legitimacy of the in-
Mr. Yale
quiry. Mr. Yals explained 
that subsequent to initiation
of the complete audit being 
undertaken by Mr. Quinn of
the Audit. Staff, the 
Deputy Director for Management and
Services, Mr. Harold L. 
Brownman, had requested the
Office of Finance to 
discontinue their investigation of
Mr. Hunt to avoid duplication
. Mr. Yale added paren-
thetically that it was 
the nature of Finance Officers
not to leave a job 
half done and that an "informal".
inquiry into Mr. Hunt's 
financial records had neverthe-
·
less continued at a more 
subdued pace.
E2 IMPDET
CL BY 011696

14-00000
3. A review of the circumstances surrounding Mr.
Hunt's 
conversion to Contract 
Type A employment and
assignment was then 
undertaken by Messrs. Yalo, Caufield,
Hudson and the undersigned. The 
contract and payroll
filos of Mr. Hunt were 
reviewed for possible indications
of the nature of the operational 
activity undertaken in
Madrid. A review of travel 
vouchers indicated that Mr.
Hunt and his family made 
accountings indicating departure
from Washington, D. C., on 5 
August 1965 with un arrival
in Madrid, Spain, on 16 August 
1965.
travel 
were charged to the budget of the Western Hemi-
The costs of this
sphere Division, Deputy 
Directorate for Plans, Madrid
Station Support account. 
A subsequent accounting sun-
marized PCS travel expenses 
and included a payment for
apartment rental for 16, 17 
and 18 August 1965 with a
payment in the amount of $
125 to Mr. F. Reid Buckley for
this purpose.
.4. It was determined that an allottes bank account
in Mr. 
Hunt's name had been 
established at the Riggs
National Bank of Washington
. All salary and other non-
operational reimbursements 
were made to Mr. Hunt through
sterile check to this account
. An operational account
was established for Mr. Hunt with the Chase Manhattan
Bank of New York City
. A review of all payments made to
Mr. Hunt through the Chase bank 
account through Mr. Hunt's
operational advance subsidiary 
account, or 1442 account,
had been made. Thore was no 
record of any operational
accounts or advances being 
processed through this channel.
Mr. Yale stated that this fact defined 
his concern.
felt that it was 
inconceivable that Mr. Hunt could have
He
undertaken operational 
activity without some transfer of
or accounting for funds. To 
date, no such records have
been developed. No reference 
to a project or project.
digraph or operational FAN number has been 
located. Al
expenses connected with 
Mr. Hunt identified to date were
charged to the Madrid Station 
Support.
Madrid Station 
records has not indicated any "Developmental
A review made of
and Target of Opportunity (DSTO)" 
funds or "Other Opera-
tional Activity (COA)" funds 
expended by or on behalf of
Mr. Hunt. These two accounts 
would normally be the source
of operational funding not charged 
against a specific pro-
ject activity.
2
642037/SITIVE
14-00000
L'a
(..
5. A review of all of the travel vouchers on record
for Mr. Hunt during this period also failed to identify
a project. In addition to the PCS and return vouchers,
two other accountings are on record.
covered a trip by the entire Hunt family to Paris "for
One accounting
the renewal of visas."
trip from Madrid to Washington with return to Madrid
A second voucher covered a TDY
made by Mr. Hunt from 5. January to 3 January 1966.
voucher states in the space provided for the citation of
the travel order number
ing was approved and signed by Mr. Thomas Karamossines,
"no travel order." The account-
then Deputy Director for Plans.
statement of purpose for this TDY was given on the account-
No justification or
ing.
-
The
6. Mr. Yale determined that further review of possible
sources or identification of operational funding was in
order. Mr. Yale gave instructions that the entire 1442
advance account of Mr. Hunt be reviewed for other possible
channels of funding outside of the New York Chase account.
After discussion, it was agreed that particular attention
be taken to any items connected with publishing or book
royalties. Mr. Yale noted that the royalty offset waiver
provision ammended to Mr. Hunt's contract was, in his ex-
perience, somewhat unusual.
7. Mr. Yala was informed by the undersigned of the
-intention to interview Mr. Edward Ryan, currently Chief,
Division D, who was at the time of Mr. Hunt's Madrid assign-
ment, Deputy Chief of the Western Hemisphere Division. Mr.
Yala suggested that Mr. Davis Powell also be interviewed.
The undersigned informed Mr. Yale that this had been done
and briefed Mr. Yala on the generally negative results of
the interview. Mr. Yale then recommended that Mr. Sam
Halpern be interviewed.
had been an assistant to Mr. Desmond Fitzgerald when the
Mr. Yale noted that Mr. Halpern
latter was Chief, Western Hemisphere Division and had ac-
companied Mr. Fitzgerald when he became Deputy Director for
Plans, Mr. Yale recalled that subsequent to Mr. Fitzgerald's
passing that Mr. Halpern remained on the staff and acted as
an Executive Officer for Mr. Thomas Karamessines.
stated that from his experience, Mr. Karamessines would
have delegated all the arranging of "details" surrounding
Mr. Yale
an assignment such as Nr. Hunt's to Mr. Halpern.
offered the parenthetical observation of his surprise at
what he interpreted to be reticence to date to intervewy
Mr. Halpern,
:
Mr. Yale
3
14-00000
(
( SECRET/SENSITIVE
8. The undersigned assured Mr. Yale that he would be
informed 
of any information identifying 
any possible project
activity developed in subsequent investigation
. Mr. Yale
stated that 
any information in this 
area would greatly
facilitate the job of checking 
computorized financial
records.
CIGNAT/GINGSITIVE
Lawrence J. Howe
14-00000
CHASE MANHATTAN BANK ACCOUNT
Check No.
Date
20 October, 1965
10
Payee
Unknown
(2 months rent as deposit plus 1 month
in 
advance at $550 per month.
tiated by lease)
26 November, 1965 Casa Guggenbuhl
Substan-
(for storage of trunks during 3 mos.
temporary housing)
10 December, 1965 Security Storage Co.
(final destination charges per attached
invoice. 
Insurance charge of $1.00 is
personal expense.)
mount
$ 1,650.00
69.34
$ 1,070.82
Expenses
November 18, 1965
Flowers for Sra. de Max Porrell
Ptas. 150
December 20, 1965
Dinner at House of Ming.
Ptas. 2250
Ex-Bolivian Ambassador and wife.
(Per my letter of 21 December, 1965)
Pin
Howard Hunt
14-00000
SERVICES OTHER THAN PERSONAL
DESCRIPTION
EXPENDITLA
Terence S. CRABANAC
ATTACH RECEIPTS AND OTHER SUPPORTING DOCUMENTS.
AMOUNT
18 Nov 1965 Flowers for Sra. de Max Borrell. Pesetas 150 @ 60/$1.00
20 Dec 1965 Dinner at House of Ming. Ex-Bolivian Ambassador and wife.
Pesetas 2250 @ 60/$1.00
* For operational security reasoris a receipt was not obtained.
(Credit the 14.2 advance account.)
ATIFY THAT THE DISBURSEMENTS ITEMIZED ABOVE WERE NECESSARILY MADE BY ME IN THE CONDUCT
OFFICIAL BUSINESS OF A CONFIDENTIAL. EXTRAORDINARY, OR EMERGENCY NATURE. THAT I HAVE NOT
NOR WILL I DE, SEINOURSED THEREFOR FROM ANY OTHER SOURCE, AND THAT THIS CLAIM AND AT-
CHVENTS ARE TRUE AND CORRECT.
(See true name attachment)
1. CERTIFY FUNDS ARE AVAILABLE
CHARGE FAN ACCOUNT NO.
MCF. NO
DATE'
SIGNATURE OF CLAIMANT
APPROVED
SIGNATURE OF APPROVING OFFICER
-
$2.50
-
$37.50*
10.00
outherite or agent where algae appeare belme, to
Cones Rounting to.
debolt and accolade script of our
ity theretes, when perd to my agent.
DATE
DATE
of officiat Puntean ag
funds and by responethily
SIGNATURE OF PAYEE
SIGNATURE OF AGENT
-2282
[
6136-1347 (code 3)
AUTHORIZED SIGNATURE
DATE
ADDP
CERTIFIED FOR PAYMENT OR CREDIT
SIGNATURE OF CORNEYING OFFICER
Charles 6. Scales 2/25/66
Feb 66 WE/BF.
ESCRIPTION-ALL OTHER ACCOUNTS 13.33
DESCRIPTION
•
DVANCE ACCOUNTS 13.1
BANAC
BEANDGONS
SANNG TAS
34.39
70.33
STATION
3003
SPACE BELOW FOR EXCLUSIVE USE OF OFFICE OF FINANCE
40.
41
42.47
OSLIG.
48- 60 51-54
49
REF. NO.
PER.
CA
PAY OR SENERAL
ACCT LIQ. S
LEDGER
ACCT. NO.
33-06
COST - FAN
ACCOUNT SYMBOL
3 601.061361347
3 61.0 11361347
CODE
YR
88/2282
582282
136100
144.2
RECEIPT FOR FUNDS RECEIVED
PAYMENT RECEIVED
IN THE AMOUNT OF 14:00 it
ΠΑΤΕ
61-68
NO.
REF. a
67-70
OBJECT
CLASS
-68-70
OC OR
DUE
DATE
2551
12:555
50 125
SIGNATURE OF ☐ PAYED AGENT
DEBIT
71.00
AMOUNT
3750
2:50
CREDIT
11000
PREPARED BY
3/14 m. & Sokerty
264
EDITION
DATE
REVIEWED BY.
RETUAT
Sam 68-858 TOTALS 15
68-858
SECRET
31.2393
HLUDED M
CRCUP 1
GRATIAL AND NATION
DECLA AMPTATION
4000
4000
(40)
OVER
14-00000
-
PCS to Madrid Per diem/misc exp
$ 998.30
Air fare (self & family)
2,257.50
HHE, POV, etc
7,547.76
TLA, quarters, etc
6,662.00
Education allowance
1,440.00
$18,905.56
TDY Madrid/Paris
reentry visa
384.61
Air fare only for self & family
PCS to Hqs
Per diem/misc exp
$178.82
Air fare (self & family)
1,394.55
HHE, POV, etc
10,731.97
TLA
599.34
12,904.68
Operational entertainment
Madrid Nov. 65
40.00
Approved expenditure LKD
-
Madrid 1 July 1966
1,600.00
Total expenditures
$33,834.85
Less advances received (bank deposit, $30,000;
33,500.00
cash $3,500)
"Cash settlement to close A/C..
334.85
14-00000
15 February 1974.
MEMORANDUM FOR THE RECORD
SUBJECT:
Interview of Mr. Davis Powell
on the David St. John Novels
16 Feli!!
سنی جو مهمان نامه
1. On the morning of 15 February 1974, the
undersigned interviewed Mr. Davis Powell, currently
a Budget Officer on the staff 
of the Deputy Director
for Management and Services.
in Room 7C18.
Mr. Powell is located:
During 1965 Mr. Powell was Chief of
Support of the then designated Western European Divi-
sion. In July 1965 a 
contract was written authorizing
salary and benefits to Mr. 
E. Howard Hunt for an assign-
ment under non-official cover 
to Madrid, Spain.
purpose of this 
interview was to determine if Mr. Powell
The
had any information on 
Mr. Hunt's activities during this.
period.
2. Mr. Powell responded that from his recollection
it was 
Mr. Hunt's habit to 
deal only with the most senior
officer available. In this 
case Mr. Hunt dealt directly
with the then Chief of 
Wastern European Division, Mr.
Rolf Kingsley. Mr. Powell 
states that, in his capacity
Chief of Support, any activity undertaken to support
Hunt's assignment to Madrid 
was undertaken second
and 
thirdhand on receipt 
of instructions from Mr. Kingsley's
office. He further stated that he 
was never briefed on
the purpose of Mr. Hunt's 
mission and could add little in
terms of speculation. 
Mr. Powell recommended that Mr.
Edward Ryan, who was 
then Deputy Chief of Western European
Division, be contacted. Mr. 
Powell also suggested that
Miss Martha Seville be 
interviewed. Miss Seville was the
Executive Secretary in 
Western European Division during the
time that Mr. Hunt's contract was written 
and Miss Saville
subsequently served in 
Madrid herself. Mr. Powell under-
stands that Miss Seville 
is currently assigned to the
office of the Chief, European 
Division.
Lawrence J. Howe
14-00000
15 February 1974
16 Feb 11 Tab 38
MEMORANDUM FOR THE RECORD
SUBJECT:
Interview of Mr. Rogers Brooks
on the 
David St. John Novels
:
1. At 0930 on the morning of 15 February 1974,
the 
undersigned interviewed 
Mr. Rogers Brooks, Chief,
Contract Personnel Division
, Office of Personnel.
The purpose of this 
interview was to determine if Mr.
Brooks had any information 
not contained in the Con-
tract Personnel file of Mr. 
E. Howard Hunt on the
latter's activities 
while a Contract Type A employee.
.2.
Mr. Brooks summarized his rocollections by.
saying that
, although it 
was not common practice it
was not entirely unusual for 
highly sensitive contracts
to be administered without the 
contracting officer being
made aware of the operational 
objective involved.
Brooks stated that he 
recalls some of the controversy
Mr.
involved in preparing the 
contract dealing with the
question of offset and 
housing allowance, but he was
unable to recall any of 
the details.
suggestion 
that the Office of Finance be contacted and
It was Mr. Brooks
that their contract 
personnel records on Mr. Hunt be.
checked for information.
Lawrence J. Howe
ܐ܂
14-00000
:
14 February 1974
MEMORANDUM FOR THE RECORD
SUBJECT:
Interview with Mr. Raymond A. Rocca
on the David St. John Novels
لاذ بالنار البلد IGF
1. On the morning of 14 February 1974 Messrs.
Frederick Evans and Lawrence Howe interviewed Mr. Raymond
A. Rocca, Deputy Chief, Counter Intelligence Operations..
The purpose of the interview was to follow up on infor-
mation 
contained in Office of Security files which stated
the belief 
that individuals in the Counter Intelligence
Operations office had knowledge of the writing activities
of Mr. E. Howard 
Hunt. This belief was a matter of record
in the files of the former Security Research Staff and was
attributed to Mr. Paul Gaynor, now retired, and Mr. Edward
Sayle
.
2. During this interview Mr. Rocca was specifically
asked 
whether 
or not he had knowledge of the existence of
any 
form of official sponsorship or encouragement to Mr.
E. Howard 
Hunt to write novels to improve the image of
this Agency. Additionally, Mr. Rocca was asked whether
or not 
any assistance was ever requested of the Counter
Intelligence Operations office to be provided to Mr. Hunt
Nor 
whether 
or not that staff had ever had any relationship
with Mr. 
Hunt whatsoever. In response to these questions
Mr. Rocca 
responded "on the record" that he has no knowledge
of any 
such arrangements nor at any time was he party to any
assistance or any 
requests for assistance to Mr. Hunt. Mr.
Rocca stated that the particular section which he had been
most 
actively concerned in the past years was responsible
for 
handling a variety of tasks categorized under the area
of "setting 
the record straight." In this sense, the "image"
mission of the office 
was to counter misinformation cur-
rently 
in the media or otherwise believed to be part of an
effort 
to discredit the Agency. Mr. Rocca feels that any
assumption 
that Mr. Hunt was engaged in any form of Agency
sponsored 
image activity would have probably lead to the
conclusion that 
it was done under the Counter Intelligence
Operations
. However, Mr. Rocca emphatically stated that
this was 
not the case.
14-00000
3. Mr. Rocca was thoroughly candid and cooperative
during 
the course 
of this interview. He was unable to
suggest alternato means of attempting to determine if
any official Agency sponsorship of Mr. Hunt did in fact
exist. Mr. 
Rocca did venture the opinion that he felt
that in 
all probability an official acquiescence on the
part of 
senior officials might have been involved rather
than an 
official sponsorship. It was agreed by all in
this discussion 
that the nature of any informal support
given to Mr. Hunt 
would be far more difficult to define
in the absence of any formalized agreements.
Lawrence J. Howe.

14-00000
i
6 February 1974
MEMORANDUM FOR THE RECORD
SUBJECT:
Possibla Agency Sponsorship of the
David St. John Novels
Mr.
.1. The details summarizing an interview on 4 Februarý
1974 
with Mr. Naltor Pforzheimer
, Curator, Historical
Intelligence 
Collection, were set forth in a nẹnorandum
addressed to Mr. 
Steven L. Kuhn dated 6 February 1974.
Kuhn was briefed 
by the undersigned on this information
during the afternoon 
of 5 February, 1974. Later the same
afternoon, at Mr. Kuhn's 
direction, a conference was held
with Messrs. Scott 
Breckenridge and John Richards of the
Office of the 
Inspector General.
2. During this conference the speculation was entertained
that 
Mr. E. Howard Hunt had, in 
fact, been under Agency
Sponsorship with 
the knowledge of Mr. Richard Helms in his
preparation 
of a series of spy novels under the pseudonym,
David St. John If it 
can be accepted as a reasonabla
supposition that 
Mr. Hunt had some highly compartmented
financial 
arrangement authorized by senior Agency officials
to write those books, then 
it is likely that this relation-
ship continued after 
Mr. Hunt officially retired.
specifically 
noted that Mr. Hunt retired 30 April 1970.
It 
is
Subsequent to the 
retirement, a David St. John book appeared
in print in 1971 and 
another in 1972. These manuscripts
were apparently prepared 
during the time that Mr. Hunt was
employed by the 
Robert R. Mullen Company.
Legistative
3. Minutes from the Office of General Counsel makə
references 
to a 
concern of Senator Baker over an alleged
financial relationship 
between Mr. Helms and Mr. Hunt
which continued 
subsequent to Mr. Hunt's formal retirement.
Senator Baker has reportedly 
made reference to a payment
of some thirty thousand 
dollars with the parenthetical
comment that Mr. Helms 
would not have that amount of money
14-00000
to provide Mr. Hunt from his private funds.
of the Inspector General Staff opinioned that if the
Mr. 
Richards
Agency had 
sponsored the St. John books, it was likely
that Mr. Hunt had so 
informed Senator Baker.
4. Adding possible weight to this line of speculation
is the 
fact that subsequent 
to publishing the last St. John
novel, Mr. Hunt published 
a novel entitled, Eduardo, using
his old Agency issued 
alias, Edward J. Hamilton.
suggestion 
is that this writing effort was done by Mr. Hunt
The
free of any 
fiduciary relationship with the Agency involved
in the use of the St. John 
pen name.
5. Mr. Howard J. Osborn, Director of Security, was
briefed 
on the above 
by the undersigned in the presence of
Mr. Kuhn on the evening 
of 5 February 1974.
Lawrence J. Howa
14-00000
6 February 1974,
-
MEMORANDUM FOR:
Mr.
Steven L. Kuhn
SUBJECT
:
The David St. John Novels
انا
mad
IG
1. On 4 February 1974, Mr. Walter Pforzheimer, Curator, en
Historical Intelligence Collection, was interviewed by the-
undersigned concerning his knowledge of a series of novels..
written by Mr. B. Howard Hunt. This interview was undertaken.
at your request in an effort to determine if Mr. Hunt had
acted in any capacity in cooperation with Counter Intelligence
Operations. It has previously been alleged in Office of
Security records that Messrs. Paul Gaynor and Edward Sayle
of Security Research Staff, believed that Mr. Hunt had written
novels at Agency request and that this effort had been known
to Mr. James Angleton, Chief, CI Operations. Une coligious
2
Mr. Pforzheimer provided a verbal summary of his..
knowledge of Mr. Hunt's fictional writings under the pen.
name,
David St. John. Mr. Pforzheimer stated that when the
first St. John book, On Hazardous Duty, appeared in 1965, he
undertook to identify the true name of the author. Mr.
Pforzheimer related that he checked with a source in the copy-
right office only to find out that the true name was not given
on the copyright application. The mailing address given for
the author was checked against a telephone cross reference
directory. The address on the copyright application was
identified with Mr. E. Howard Hunt. Mr. Pforzheimer stated
that after making the identification, he called Mr. Thomas
Karamessines and related his discovery. Mr. Pforzheimer
recalled from the nature of Mr. Karamessines' reaction that
he had uncovered a sensitive matter of senior officer concern.
Mr. Pforzheimer stated that he then recommended to Mr..
Karamessines that "if the Agency is involved in this thing.
why not see to it that Hunt leaves his address off the copy-
right applications in the future." Mr. Karamessines reportedly
14-00000
accepted the suggestion and Mr. Pfortzheimer recalls that
subsequent copyright applications were submitted without gelun
the address. Within five minutes of the conversation with-
Mr. Karamessines, Nr. Pforzheimer recalls being called by
Mr. Richard Helms, then Deputy Director of Central Intelligence.
Mr. Pforzheimer recalls the substance of the conversation as
being, "for Christ sake Walter, this is the first book to
come along and say something good about the Agency." "Why
not leave the Goddamn thing alone."
3. The undersigned asked Mr. Pforzheimer, who to his
knowledge, would be in a position to confirm or deny whether
Mr. Hunt was under any form of Agency sponsorship in his
writing of the David St. John novels. Mr. Pfortzheimer replied
that he was never officially briefed on the matter and that
only Mr. Helms or Mr. Karamessines could provide the answer.
Mr. Pforzheimer was then asked if either Mr. Angleton or Mr.
Rocca of Counter Intelligence Operations would have any
knowledge of this activity. Mr. Pforzheimer replied that he
doubted it seriously.
4. Mr. Pforzheimer went on to relate that he was
occasionally tasked to do research for Mr. Hunt. He recalled
on one occasion being asked to research the Indian religious
rites involving use of funeral pyres, Mr. Pforzheimer
remembered that this theme figures significantly in Mr. Hunt's
subsequent novel Tower of Silence, which appeared under the
St. John pen name in 1966. Mr. Pforzheimer parenthetically
pointed out the origin of the pen name as being the names of
Mr. Hunt's two sons--David and St. John.
5. Tracing Mr. Hunt's career assignments, it is noted
that he was assigned to the Office of the Deputy Director
for Operations then designated, the DDP/Operations Group, in
February 1965. The first David St. John book was published
during 1965. From June 1965 through September 1966, Mr. Hunt
was assigned to Madrid, Spain as a Contract Agent. During
1966, three St. John books appeared in print, the highest out-
put for any year. Mr. Hunt published one book under the
St. John pseudonym in 1967, and one each in the years 1963,
1969, 1971 and 1972. Mr. Hunt officially retired as an Agency
Staff Employee effective 30 April 1970.
:
14-00000
6 A check of Office of Security records did not develop
any indication that any of the David St. John manuscripts were
ever submitted for review in accordance with Agency regulations.
There is no documentary evidence currently available to the
Office of Security to either confirm or deny possible Agency
sponsorship of the books written by Mr. B. Howard Hunt under
the pen name, 6. David St. John..
Lawrence J. Howe
14-00000
Copy one of one copies
F.February 1974
MEMORANDUM FOR: Mr. Kuhn
SUBJECT: General Gaynor's Recollections
1. This date, at your instruction, I called Gen. Paul F. Gaynor.
to 
seek his recollections 
regarding his knowledge of the writings of
Mr. Hunt and any official who 
might be aware of the circumstances
of any Agency involvement 
in that effort.
2. Gen. Gaynor advised that his memory is not altogether clear
on 
the matter, and that he 
was "reaching, "but stated that has he
reconstructs the matter:
a. He became aware that Hunt, while in WH, was accomplishing
a steady 
flow of spy books, and 
that security approval was not being re-
quested on the manuscripts 
before submission to publishers. (He stated
that this actity continued 
later, as he recalls it, in CI Staff, and
agreed with idea that 
the volume of writings was sufficient to indicate
that a great of time 
was involved in Hunt's writing.). Gen. Gaynor advised
that he raised the issue "up front" 
on several occasions. The reaction
he recieved to his raising 
the issue was that "keep your stinking nose out
of this business." He stated that he 
was lead to believe that Mr. Helms
desired to improve 
the image of the intelligence profession and the Agency
and that Huat's books were a part 
of the program to do so.
he was never told 
outright that this was the case, but the responses he
He stated 
that
recieved lead him to believe 
this was the case.
He suggested that two people might be able to assist in clearing
the issue, 
Ray Rocca and Walter 
Pforzheimer, both of whom were involved.
in the "image" materials. He 
stated that Pforzheimer seemed to be aware
of all the details 
- on an up to date basis of Hunt's departure from the
Agency to join the 
public relations firm, to the degree that Gen. Gaynor
gained the belief that Hunt 
was merely moving his desk outside the building,
but being paid by the same source 
as before. He also advised that he kept
Miss Ethel Mendoza fairly 
current on what he was learning about Hunt's
activities because she followed 
the case for him, and suggested that her
recall about what he had
and when and what resulted, might be
better than his at this date also mentioned an incident in which Morsc
Allen while on a TDY was told 
by a COS to ask Headquarters to remove Hunt
from the Area because of his 
direct liaison with the president of the country,
and other activities which were 
confounding station operations.
told Morse to forget 
about relaying the message, with the implication that
Later, the 
COS
Hunt was being directed by higher 
authority in the Agency and the COS did not
wish to get in the middle by complaining. 
He said Morse would probably
mente
14-00000
C. He also suggested that another person--definitely no friend of
Hunt--
who might 
have some recall or have picked up information about
the 
book-writing matter might be Anita Potocki of CI Staff, formerly of
Division 
D. (I gather that she did not have official knowledge, but because
of her dislike for Hunt, 
she made it somewhat her business to follow his
career.)
Edward F. Sayle i
14-00000
2
MEMORAND FOR:
Deputy Director for Support.
SUBJECT:
S NOV
Request for Exception to Provision o?
FR 45-105 - Terence 3. CREATIC (P)
1. This remorandum contains a recommendation in para-
graph 
4 for the 
approval of the Deputy Director for Support.
2. Terence S. CRABANAC (?) is a Contract Employee as-
nigned 
to the Madrid 
area in Spain in a sensitive assigment.
since his 
conversion from a Staff Employee on 4 July 1965.
CAC was a CS-
15, stop 7 (319,330.00 per annum) and ha
is being paid 
at the same rate in his present contract
status. 
Els contract provides that he will be entitled to
a living 
quarters allowance in conformance with regulations
of this 
organization applicable to its appointed personnel.
3. The basic living quarters allowance for Class II
officers 
in 
Madrid is $3,000 per annum. The house which
CABANAC has 
located, with a one year lease from 15 November
1955 to 13 
November 1966, has an animal rent of $5,800.00
excluding 
utilities. Therefore, for rent alone, he will ba
$
1,960.00 
per year over the 150 percent maximum allowed
under the provisions of FR 15-105. On a 75/25 percent
sharing 
basis of the 60 percent over the quarters allowance,
he would be out 
of pocket $3,395.00.
Due to the operational sensitivity of CRABATAC'S
üssignment
, 
ils request for lief on his consing costs 7739
handled 
by Mr. Thomas Karazessines, ADP. On 15 September
1985, Nr. 
Harnesses, ACDP, approved his being reimbursed
73/25 percent basis for the excess allowable costs up
40, but 
not 
to xxxceed, 50 percent aboya his quarters allowance.
This authorization 
was included in a letter to NAC from
Ur. Processions. It is requested that the Deputy Director
14-00000
for Support authorize the 75/25 percent sharing of the oxoPSA
allowable 
costs up to 30 parrant above his quarters allowance.
Cocommendation in paragraph
authorized:
Charles N. D2713
Deputy Director for support
:.
Edward 3yan.
Acting Chief
Western Europe Division
DDP/WR/S3:Davis3.Powell/aj/5189 (SN0755)
Distribution:
Origi
CAE
2- SSA-DD/S
CINE/S8
1 173/10
-
WE/PT
I
WK/37
1.
183/5
9 NGV 1965.
Dato.
14-00000
20241143
ATT
Reference:
Chief, Western Europe Nivision
Support Stake
Compensation and Tax Division
Office of Nuance
Duty Status Reporta-Terence S. CRABANIC, Exployee
Number 179080
FHB 20-1000-1, paragraph 5.
13 October 1955
1. To data there is no record of receipt of Forms 764,
Futy 
Status Reports, for Terence S. 
CRABANIC since his. EOD
4. July 1965. These reports 
are required in order to maintain
his leave account in eccordance 
with the terms of paragraph
6(c) of his contract and to 
preplude action to withhold pay in
accordance with requirements of the 
referenced handbook.
2. It is requested that this office be advised as to
the 
reason for the delay in 
the submission of these Duby Status
Reports.
LUCILS F. TWCGOOD.
Chief,
Contract Employees Accounts Section
Agent Payroll Branch
Compensation and Tam Division
Office of Finance
TO:
ATTENTION:
FROM:
Lucile F. Trogood
Chief of Support, W Division
Per conversation with Mr. Fresses, ADDP,
there 
will be no Duty Status Reports (
Fom 764) submitted
on Terence S. CRABANAC.
This should be used as the authority
to continue his fay ithout these reports.
SECRET
H
David S. Fall
Chief of Support
E Division
GRYT
Ander
MOV 1956

14-00000
3 September 1965
MEMORANDUH FOR: Chief, Contract Personnel Division.
SUBJECT
1: General ( - Terrence S. CRABANAC - Supplement
Specific 
Paragraph Entitled "Offset"
REFERENCE
A.
B.
-
OGC Opinion 65-2476a, dated 12 August 1955
Our Memo, dated 8 July 1965, Same Subject
1. This office herein recommends an amendment to CRADAMAC's
Supplement 
dated 4 July 1965, to delete 
paragraph 7. entitled "Offset."
2. This office acknowledges the CCC opinion, Reference A, which
determined 
CRABANAC may retafa without 
Agency salary offset any futurs
royalties earned as a result of his 
literary efforts based on the fact
cover does not include role of a writer.
3. As Subject's cover "activities" have been officially clarified
as being 
only a light one of a 
retired Foreign Service Officer for
which the Agency will be making all 
entitlement payments and actually
he will receive no funds from any cover, 
this paragraph, which is misleading,
has no resping in Subject's contract and it is 
hereby recommended that
it be deleted from CRABANAC's Supplement
.
1
4. Further, in future cases when a cover is so light that Subject
will 
not be receiving funds from cover it is 
recommended that no "Oxiset"
paragraph be included in Supplements or 
Contracts.
Attachment
Ref. A and B.
WILLIAM R. CAULFIELD
Chier, Covert Claims Branch
no action tation
thing borong.
Es
14-00000
OGC 65-2476a
12 AUG 1935
MEMORANDUM FOR: Chief, Contract Personnel Division
SUBJECT:
Terence S. CRABANAC Retention of
Royalties by a Contract Employee
1. You have requested the opinion of this Office in regard to
the retention 
of future royalties 
which might be earned by Terence S.
CRABANAC as a result of his 
literary efforts. We believe that he is
entitled to retain such royalties 
without an offset against his Agency
salary.
2. We have been advised by Mr. Geae Stevens, WE/Support, that
CRABANAC's 
cover does not include 
the role of a writer; CRABANAC's
cover for status will only be a 
light one of a retired Foreign Service
Officer. Therefore, 
paragraph 7 of his contract dated 4 July 1965 may
remain as written. Royalties 
from the fictional works, that he writes as
a profitable hobby will not be 
emoluments received from or through his
"cover activities."
cc: Chief, Covert Claims Branch
Mr. Gene Stevens, WE/Support.
Mormon D. Block
NORMAN D. BLOCK
Office of General Counsel
-
14-00000
MEMORANDUM FOR
ATTENTION
SUBJECT
: Office of General Counsel
:
Norman Block
Torence S. Crabanac
Retention of Royalties by:
a Contract Employes
3. AUG 1067
1. Reference is made to the telephone conversation
of 25 July 1965 between yourself and Rogers C. Brooks of
this Office wherein background information relating to the
assignment of Terence S. Crabasac was discussed.
2. Subject will'apparently develop a cover as a writer,
a field wherein he has an already demonstrated talent based
upon several publications. The objective of the cover is to pro-
vide a basis of attribution for some of his income. At the time
of the preparation of Mr. Crabanac's contract, the specific
detail of his cover was unknown.
3. Request your opinion in regard to the retention of
possible royalties earned by Crabanac as a result of his.
literary efforts or whether such income should be properly
offset.
Attachments.
Joseph 3. Ragan
Chief, Contract Personnel Division
OP/CPD: RCBrooks/cw: 2 August 1965
Distribution:
Orig & Addressee
2
CPD
14-00000
.
4 JULY 65
Mr. Terence S. Crabanac
Dear Mr. Crabanac:
The United States Government, as represented by the Contracting
Officer
, hereby contracts with 
you as a Contract Employee for the use
of your services and the 
performance of duties of a confidential nature
under the following terms 
and conditions:
1. Compensation. In full consideration for the use of your services
and 
the performance of specified 
confidential duties you will be compen-
sated in an amount calculated at the 
rate of $19,930 per annum.
“
you are herein 
authorized legislative salary adjustments, within-grade
In 
addition,
promotions and, if applicable, 
a post differential in substantial conformance
with rules and regulations 
applicable to Government appointed employees.
Payments will be made as requested 
by you in writing in an approved man-
ner. Taxes will be withheld 
therefrom and submitted by this organization.
2. Allowances. You will be entitled to: (a) Living quarters allow-
ances 
in conformance with regulations 
of this organization applicable to
its appointed personnel. In 
the event you are furnished quarters by the
Government you will not be 
entitled to the living quarters allowances herein
indicated..
in conformance with applicable regulations of this organization including,
(b) Cost-of-living allowances
but not limited to, a post allowance
, a transfer allowance and a home ser-
vice transfer allowance.
3. Travel. You will be advanced or reimbursed funds for travel
and 
transportation 
expenses for you, your dependents, your household
effects and your personal 
automobile to and from your permanent post
of assignment, and for you alone 
for authorized operational travel. In
addition, you will be entitled 
to storage of such household and personal
effects as are not shipped, 
in conformance with applicable Government
regulations. You may be entitled 
to per diem in lieu of subsistence in
the course of all travel 
performed hereunder and, when authorized, for
you alone while on 
temporary duty away from your permanent post of
"
assignment." All travel, 
transportation and per diem provided for under
this paragraph must be properly 
authorized, and expenses incurred here-
under are subject to payment and 
accounting in compliance with applicabla
Government regulations.
4. Operational Expenses. You will be advanced or reimbursed funds
fɔr 
nacassary operational 
expenses including, but not limited to, entertain-
meat and the purchase of 
information; as specifically approved by the Gov-.
erament. Such funds will be subject 
to payment and accounting in compli-
ance with applicable Government 
regulations.
5. Repayment. It is recognized that your failure to account for o
refund 
any mɔples advanced you 
hereunder shall entitle the Coverament to
hot that amount of such indebtedness or any portion thereof fram
aayinaalea e lo por un fer the terms of 
tida contract la suen majdar as !;
Marina appegazisty,
14-00000
تم
6. Benefits. (a) You will be entitled to death and disability benefits
equal 
to those 
authorized under the Federal Employees' Compensation Act,
23 amended. Claims by you
, your heirs, or legal representatives under
this paragraph will be 
processed by this organization in accordance with its :
procedures in such 
manner as not to impair security.
(b) You will be entitled to the continuance of pay and
allowances in a manner similar to that set forth in the Missing Persons
Act (50 U.S. C.A.
, App. 1001-1015).
(c) You will be entitled to sick, annual and home leave
(including travel expenses incident thereto) equal to and subject to the same
rules and regulations 
applicable to Government appointed employees,
Annual leave may 
only be taken at times and places approved in advance by
appropriate Government 
representatives. All accrued but unused leave
credited to 
your former account as an appointed employee of this organiza-
tion will be transferred 
to the leave account established for you hereunder.
(3). As a Government employee under contract converted
from staff statua without 
a 
break in service, it is required that you continue
to make contributions to the 
Civil Service Retirement Fund. Such contri-
butions (presently 
six and one/half per cent (6-1/2%)) will be deducted by
the Government from 
the basic compensation due you hereunder, i.e.,
presently $19,880 per 
annum.
(e) You are herein authorized to apply for enrollment
in a health insurance program for certain selected Contract Employees of
this organization, 
subject to all the terms and conditions of that program.
If accepted, this 
organization is presently authorized to bear a portion of
the premium 
cost, you will bear the remainder. Your financial contribution
will be effected either 
by payroll deduction or by direct remittance at
periodic intervals 
to be established by this organization.
(f): (1) This organization is authorized to pay the cost
of necessary hospitalization and related travel expenses for illness or injury.
incurred by a United States 
citizen full-time Contract Employee in the line
of duty while abroad.
(2) This organization may pay certain necessary
costs of hospitalization and related travel expenses for illness or injury
incurred by the 
dependents of a United States citizen full-time Contract
Employee 
permanently assigned abroad, while they are located abroad.
It is understood and agreed that the eligibility and extent of the participation
by you and your 
dependents in the above medical programs will be in con-
formance 
with the rules, regulations and policies of this organization ia
effect at the time 
an illness or injury is incurred, that all claims will be
submitted 
only to this organization and that adjudication of such claims by
this 
organization shall be final and conclusive.
7. Offaet. Emoluments (including benefita in kind) received from or
through 
your 
cover activities are the property of the U. S. Government.
Procedurally
, such emoluments will be offset against amounts die yɔu
under this 
agreement and are acknowledged to be payment by the Govern-
ment hereunder and for 
Federal income the purposes. If caver emolumenta
exceed those die 
you uniter this contract, you will dispose of tiva excess
amount la 
cohformance with Governmental-lbstructions.
14-00000
3. Execution of Documents. If, in the performance of services under
this 
contract, you assume the custody of Government 
funds or take title
of record to property of any nature 
whatsoever and wherever situate, which
property has in fact been purchased with monies 
of the U. S. Government,
you hereby recognize and acknowledge the 
existence of a trust relationship,
either express or constructive, and you agree to 
execute whatever docu-
ments may be required by the Government 
to evidence this relationship.
9. Secrecy. You will be required to keep forever secret this contract
and 
all information which you may obtain by 
reason hereof (unless released
La writing by the Government from such 
obligation), with full knowledge that
violation of such secrecy may subject you to 
criminal prosecution under the
Espionage Laws, dated 25 June 1948, as amended, 
and other applicable lawi
and regulations
.
☐
10. Instructions. Instructions received by you from the Government
in 
briefing, training or otherwise are a part of 
this contract and are incor-
porated herein, provided that such instructions 
are not inconsistent with
the 
terms hereof.
Unauthorized Commitments.
11.
mining to rights, privileges or benefits other than those expressly stipulated
No promises or commitments per-
in writing in this agreement or any amendment 
thereto shall be binding on
the 
Government.
12. Term. This contract is effective as of
continue thereafter for a period of two (2) years uniess sooner terminated:
4 July 1965
and 
shall
(a) Upon sixty (60) days' actual notice by either party hereto, or
(b) Upon actual notice to you in the event the results of an initially
required medical examination are 
determined by this organization
to be unsatisfactory, or
(c) Without prior notice by the Government, in the event of a
breach of this contract by your 
violation of the security provisions
hereof or by your otherwise rendering 
yourself unavailable for
acceptable service.
Subject to the availability of appropriations, this agreement may be extended
upon notice from the Government. In the event of 
voluntary termination on
your 
part or termination for cause by the 
Government prior to the expiration
of this agreement or any renewal thereof, you 
will not be entitled to retura
travel expenses to the United States. 
Termination of this agreement will
not release you from the obligations of any 
security oath you may be required
to take..
UNITED STATES GOVERNMENT
ACCEPTED:
15:
WITNESS:
1.51
Б?
DHL
Contracting Officer
APPROVED: