‘404-10764-10004 oo : | ° We 7 ff. pisst M oY a wR oe \ PORPAt @ ¢cbab s. 52790 muita aay e i ° 4 ° PERSON/JUNIT NOTIFIED of . ADVANCE TOP AB. ACTION # REPRODUCTION BY OTHER THA! SECRET | ISSUING OFFICE 1S PROMIBITEE “TORI 216322 MAR ay SECRET W216 022 MAR 77 STAFF nh “ a crTe{ ‘(32384 al is /S Comment: *Requested reactions TO3 IMMEDIATE DIRECTOR. to U.S, media reperts that CIA has ; ; ; made secret payments to past and WNINTEL RYBAT + present foreign leaders, BF: DIRECTOR 990535 , i, NEW YORK TIMES ARTICLE OF 1 MARCH HAS BLOWN THE LIp OFF jy THE SITUATION HERE ONCE AGAIN. SPANISH TRANSLATION OF WHAT APPEARS To BE FULL ARTICLE HAS TWO QUOTES BY DAVID PHILLIPS TIED. JO "SOURCES OF INTELLIGENCE" AND "AN OLD OFFICIAL OF THE CIA" IN - SUCH A MANNER THAT ON QUICK RE AI NG IT APPEARS ALL IS ATTRIBUTABLE TO DAVID PHILLIPS. THIS IS EXACTLY WHAT THE GOVERNMENT OF VENEZUELA DID. NET BURDEN OF THIS SECTION IS THAT WHILE DAVID PHILLIPS WOULD SWEAR CARLOS ANDRES PEREZ AND LUIS ECHEVERRIA ALVAREZ NEVER RECE IVED ANY PERSONAL BRIBES, THE uSG GAVE THE GOV AND GOM FUNDS FOR: JOINT OPS OF COMMON BENEFIT. THIS DAVID PHILLI‘SQ KNEW BECAUSE HE WAS CIA CHIEF IN. BOTH VENEZUELA AND MEXICO, 2. A GOV STATEMENT, ISSUED BY THE PRESIDENT'S PRESS OFFICE LAST NIGHT» CATEGORICALLY DENINES THAT THE GOV HAS EVER RECEIVED AID IN ANY FORM FROM A FOREIGN GOVERNMENT FOR USE IN INTELLIGENCE OPERATIONS. IT SAYS$ " IN THE NEW (NYT) VERSION OF THE SPECIFIC SECRET
14-00000 “GaBLE SEC DISSEM BY PFRL Lo: sens cee TOTAE COPIES RUN BY “i REPRODUCTION BY OTHER THAN 4 . S € € RET ISSUING OFFICE 1S PROHIBITED PERSON’UNIT NOTIFIED 0 Oo ., on ee ee | — ADVANCE COPY ISSUED/SLOTTED oe RY At z ST AF F ACTION UNIT ne ny ! RF . FILE . VR. In Eee Ce ACTION # F E] es Oo T 644427 EI A574 PAGE 02. IN 203537 TOR’ @216322 MAR 77 | | 32384 SLANDER» DESIGNED TO DENIGRATE THE GOVERNMENT OF VENEZUELA, THEY TRY TO MALICIOUSLY CLARIFY THE ABOMINABLE CALUMNY REFUTED BY PRESIDENT CARTER'S LETTER(STATING THAT THE REPORTS HAVE NO BASE) BY USING TESTIMONY OF AN EX=AGENT OF THE CIA WHO SAYS HE SERVED IN VENEZUELA WHEN PRESIDENT CARLOS ANDRES PEREZ WAS MINISTER OF INTERIOR". "FINALLY, WE REJECT THE POSSIBLITY THAT THE DEMOCRATIC GOVERNMENTS (PLURAL) | OF VENEZUELA COULD ALLOW THEMSELVES TO BE ASSOCIATED IN ANY WAY IN THESE ILLEGAL AND SHAMEFUL ACTIVITIES WITH THE CENTRAL INTELLIGENCE | AGENCY OF THE UNITED STATES GOVERNMENT", 3, EVENING OF 1 MARCH CHARGE (DCM) WAS CALLED IN BY VENEZUELAN FOREIGN MINISTER ESCOVAR SALOM WHO SAID PRESIDENT PEREZ WAS AGAIN GREATLY OFFENDED BY THE LATEST NEW YORK TIMES ARTICLE AND DEMANDED AN EXPLANATION. DCM REPLIED(1) DAVID PHILLIPS HAS RETIRED AND IS NO LONGER AN ACTIVE EMPLOYEE OF THE CIAs (2) UNIDENTIFIED NINTELLIGENCE SOURCES" DO’ NOT NECESSARILY MEAN EX=CIA PERSONNEL AND MAY NOT EVEN BE USG INTELL IGENCE-ASSOCIATED ~OFFICIALSs AND (3) NOWHERE IN THE LATEST STORY IS THERE ANY INDICATION THAT ANY ACTIVE USG SPOKESMAN IS INVOLVED IN MAKING STATEMENTS TO THE PRESS. ESCOVAR WAS SURPRISED AND HIMSELF.» AT LEAST» SOMEWHAT MOLLIFIED TO LEARN THAT DAVID PHILLIPS SECRET
14-00000 Ste “ef DISSEM BY.” rer os wa. TOTAL COMES . - RUN HY my tote . REPRONUCTION BY OTHER THAN S E CR E T {ISSUING OFFICE 1S PROHIBITED  PERSONJUNED NOTHILO | . e ISSUED/SLOTTED ADVANCE COPY ACTION UNIT | N "ACTION @ TF : Oo T 644427 El A574 —_ “PAGE 03. IN 2035 37 TOR! 0216322 MAR 77 [| se384 WAS NO LONGER EMPLOYED BY THE CIA. ESCOVAR, SUPPOSEDLY aT THIS POINT SPEAKING ONLY FOR HIMSELF AND NOT THE PRESIDENT, SUGGESTED THAT THE CIA DISAVOW PHILLYPS' STATEMENT. DCM TOLD FORMIN -THAT CIA HAS NO CAPABILITY FOR THIS SORT OF THING AND FOR SOME TIME HAS BEEN UNDER STRICT INJUNCTION NOT To TALK To PRESS. ESCOVAR THEN SUGGESTED THAT USG AT SOME OTHER LEVEL REFUTE LATEST NYT" DEFAMATION", PERHAPS THROUGH THE CARACAS EMBASSY, DCM REPLIED THAT OF COURSE HE HAD NO AUTHORITY TO ACT ON ANYTHING LIKE THI'S BUT WOULD REFER IDEA TO THE STATE DEPARTMENT FOR CONSIDERATION. ESCOVAR SAID WHOLE SUBVECT WAS PAINFUL TO PRESIDENT » THAT IT WOULD BE USED AGAINST THE AD PARTY By THE OPPOSITION IN THE FORTHCOMING ELECTORAL CAMPAIGN,» AND THE GOV WANTED TO LET IT DIE’ WAS THERE NOT SOME WAY THAT THE USG COULD RESTRAIN EX= INTELLIGENCE OFFICERS AND THE NEW YORK -T.IMES FROM REOPENING THE WOUND, THE DOM REPLIED THAT THE FOREIGN MINISTER SHOULD CERTAINLY REALIZE IN THE UNITED STATES NO SUCH THING COULD BE DONE; TO WHICH THE | FOREIGN MINISTER RUEFULLY RESPONDED." YES, BUT THE VENEZUELANS DON'T KNOW THIS", oe 4, ACCORDING TO CARACAS DAILY "ULTIMAS NOTICIAS" OF 2 MARCH: AD DEPUTY LUIS GUEVARA IS ORGANIZING A PROTEST DEM ONSTRATI ON SECRET
14-00000 (| CABLE'SEG DISSEM-BY___e- __ PER PERSON/UNI -NOTIFIED__ ADVANCE COPY 1SSUED/SLOTTED ACTION UNIT ACTION # OonZz- T 644427 RF . FILE . VR. ELA574— TOR! 9246322 MAR 77 Aart z “PAGE 04 REPRODUCTION BY OTHER THAN ISSUING OFFICE IS PROMIBITED IN 203537 { ~ ] 3238 4 AGAINST THE CIA AND THE PRESS ATTACKS ON PRESIDENT PEREZ, DEMONSTRATION WILL BE FROM CATIA SUBURB OF CARACAS TO PLAZA O'LEARY IN EL SILENCIO SECTION AND OTHER POLITICAL PARTIES_WILL BE INVITED TO JOIN IN. GUERVARA, WHO IS MEMBER OF JAIME LUSINCHI'tS PRESIDENTIAL CAMPAIGN COMMITTEE (LUSINCHI IS GENERALLY BELIEVED To BE CAP'S CHOICE FOR HIS SUCCESSOR), SAID THAT PEOPLE FROM THE INTERIOR OF VENEZUELA HAVE ALSO EXPRESSED THEIR DESIRE TO JOIN IN THIS DEMONSTRATION. (NOTE THAT AREA CHOSEN FOR DEMONSTRATION IS » PROBABLY BY DESIGN» FAR REMOVED FROM EMBASSY AND OTHER U.S. INSTALLATIONS IN CARACAS AND SHOULD NOT INVOLVE THEM UNLESS HOTHEADS TAKE OVER AND TRY SOMETHING oN THEIR OWN, ) 5. ALL OF FOREGOING TENDS TO REACTIVATE DANGEROUS SITUATION _ OF 22 FEBRUARY, ALTHOUGH SO FAR THIS PHASE DOES NOT APPEAR TO HAVE AS MUCH STEAM -IN 1T AS WHEN CRISIS FIRST DEVELOPED. aS IS NOW WELL “ESTABLISHED » CAP IS: MOST SENSITIVE BORDERING ON PARANOIC, HI GHLY VOLATILE, AND MORE THAN A LITTLE POLITICALLY OPPORTUNISTIC. IF THERE TS FURTHER PROVOCATION, WE CAN PRETTY WELL GUARANTEE THAT HE WILL REACT STRONGLY,» QUITE POSSIBLY STRIKING BACK AT HES SECRET
74-00000. é Lo ar 2 . . . Cagle, SEC DISSEM BY_ P ran ‘ TOTAL COMES | . . PERSON/UNIT NOTIFIED ISSUING OFFICE iS PROHIBITED ER 4 RUN AY REPRODUCTION BY OTHER THAN | SECRET | BY ADVANCE COPY ISSUED/SLOTTED AT ACTION UNIT en Sar RF . FILE . VR. ACTION # PAGE 05-05 ~~ ) IN 203537 | TOR? 0216322 MAR 77 (__] 32384 1S NOW SUCH THAT THIS TYPE OF ACTION SHOULD NOT SERIOUSLY DAMAGE OUR OVERALL EFFORT HERE» BUT HEAD- QUARTERS SHOULD RECOGNIZE THAT FOR AWHILE WE WILL BE WORKING IN WHAT IS A VERY HOSTILE OPS CLIMATE. 6, NO FILE. E2> IMPDET. SECRET