157-10005-10225] a) Ne iO 3,7 Date:10/01/93 Page:1 JFK ASSASSINATION SYSTEM é> | ; | IDENTIFICATION FORM AGENCY INFORMATION AGENCY : SSCIA RECORD NUMBER : 157-10005-10225 RECORDS SERIES : AGENCY FILE NUMBER : R891 ORIGINATOR : SSCIA FROM : TO: - TITLE : TESTIMONY /REPORT OF PROCEEDINGS WITH EXHIBITS DATE : 08/12/75 PAGES : 90 SUBJECTS : TESTIMONY OF HOUSTON, LAWRENCE RE: CIA AND CASTRO EXHIBITS ARE INCLUDED DOCUMENT TYPE : PAPER, TEXTUAL DOCUMENT CLASSIFICATION : T RESTRICTIONS : REFERRED CURRENT STATUS : P DATE OF LAST REVIEW : 10/01/93 OPENING CRITERIA : COMMENTS ; BOX 248-02 (R] - ITEM IS RESTRICTED HW 50955 DBoclda: 32202415 Page i
T | oP SECRET 7 (ne s i Niarchos' ship captains named Katopodes brought a libel action : e I believe it was, against Onassis for some letter he had writte 3 5 about some activities of Katapodes, I can't remember the 4 details now. 5 We didn't know where this was leading. So this was in 6 | the Supreme Court of New York State, and so I went to a fellow 7 | I knew in the U.S. Attorney's office and asked him if he 8 could keep track of how this suite was developing to see if 9 it was leading into some of the connections we had, par- 10 ticularly with Niarchos. 11 And he got some of the pleadings and some of the pre- my ra 12 trial evidence -- 13 Mr. Wides. But you don't recall any contacts between 14 the Agency and the Justice Department resulting in Mr. Yeagley 15 going up to try and halt some aspects of the grand jury 16 proceedings in New York growing out -- 17 Mr. Houston. It strikes no valve. 18 Mr. Wides. Let me ask just one more question in this 19 area and then we will move on to the document I asked you to 2041 look at before we started. 21 Mr. Maxwell. I have just one other question. 202 Mr. wides 410 First Street, S.E., Washington, D.C. 20003 HW 50955 pocta:32pozai5 Page 2. TOD GECDET
TOP SECRET 1.8 Prone (Area 202) 544-6006 i) LO 11 Do you recall thaFineds nt and the eventual denouement 12 of the affair? 13 Mr. Houston@ WARD & PAUL I cannot rem \ the exact chronology. B. Avey had gotten the re 14 | I had thought wt on the problem a 15 || little earlier than you suggested. But can't argue it. id 16 17 18 19 20. el 410 First Street, S.E., Wasnington, O.C. 20003 B 25 It was a confused picture. All sorts of interpersonal feelings HY 50955 DBocld: 32702415 Page 3 TOP SECRET
io] ° fo] 2 v 4 en 8 : fa] N a : ¢ oe c ° & r =) < a 8 fs] & < 3 Dad ° o o N ¥ is) ¢ o a g & Sad e z wi 3] rf : a re) = rs o g ¢ HW 50955 10 il 12 13 14 15 16 1? 18 19 20. el 22 29 24 29 DocTd: 32302415 TOP SECRET 20 that I recall were going on out there. And Ithink one of the LO crime against 2 e11Npay be, And Allen said, tha 4 But I still think that I want to report thf’s to Jusice. it to -- I ney General, Ps They said to the effect, thank you, that is #&. There is nothing we can do. Mr. Wides. Was there any discussion of the poss®bility TOP SECRET Page 4
TOP SECRET , Pnone (Area 202) 544-6000 10 11 e - 13 WARD &@ PAUL 14 15 16 1”? 18 19 20 el on Mr. Wides. Did you have another question.in this area? cael ° =) ° nw u Qa S g m & e aR Ad 3 I “i 23 24 Mr. Maxwell. I just wanted to say, if you wanted to 25 continue, you said there were three cases that eliminated the HW 50955 DBDocld: 9272027415 Page 5 TOP SECRET
Phone (Area 202) 544-6000 WARD &@ PAUL 410 oe Wasnington, 0.C. 20003 HW 50955 p— 10 li le 13 14 15 16 1? 18 19 20 el ee 25 24 25 TOP SECRET 22 kind of cases which CIA had with Justice, and the referrals, and you had gone through one. And I wondered if you wanted to go through the other two. Mr. Houston. All right. The second one was quite an interesting one. If I give it in too much detail, excuse me. Mr. Maxwell. Off the record. (Discussion off the record.) Mr. Maxwell. Back on therecord. Mr. Houston. all of a sudden disappeared from his post, and there was indication that he had with him a considerable sum of money, something in the nature of $30,000, I can't remember the exact amount. This was promptly reported, and he disappeared into the blue. co looking into it. And I believe we sent people over to try and look into it, and found that there had been a serious family problem between himself and hi wife. Finally, in Mexico we got word that this fellow was near Mexico City, and he passed word to the[ hough a lawyer that he had written all the operational details of what he had been engaged in which again were very sensitive, sealed them, and put them in a vault which only thelawyers could get at, with instruc- tions to his lawyers that if anything happened to him, no Docld: 49202415 Page 6 TaD GECDET
Pnone (Area 202} 544-6000 10 ll 12 WARD & PAUL 13 14 15 16 17 18 19 20 el 22 23 24 410 Be. Washington, 0.C. 20003 25 HW 50955 Docld: TOP SECRET The SEC, as a result has raised some questions with Justice 29 between our justice and our statutory problems. This is before Justice now. Mr. Wides. Is there a file in the OGC office generally regarding, not necessarily every one, but many of your -- which would contain many or most of OGC contacts with Administrative agencies over the years? Mr.Houston. No, because they weren't -- there probably is a substantial file on relations with Internal Revenue. But those were to a large part either working out our own tax equations on our own personnel with cover problems which you probably know about, or the CAT situation, or Southern Air.Transport, and not interferring with IRS prosecutions, although several times we were involved -- here is the type of case I guess you are talking about. What is the Fellow out in the Philippines -- I think his name i I who had one of the biggest tax assess- ments made against an individual made against him, I think, $2 million? And | very definitely tried to involve us in his defense. There was some connection with in the Philippines, you couldn't be in the Philippines without some connection with them. And yet gave IRS the full in- formation, and said, don't bother with us, we are not concerned. Mr. Wides. What about such things as the contacts with 902415 Page 7 TOD GECDET
Phone (Area 202) 544-6000 ’ WARD & @ ” f=] o °o a g Q ¢ g a ¢ & a 8 3 ui “4 HY 50955 10 ll 12 13 “14 15 16 1? 18 19 20 21 22 25 24 29 TOP SECRET Mr. Houston. It was a memo of DITEL's that I saw. 55 I think it was dated after I left. I saw it in draft after- ward. It had to do, I recall, with operations in the Trust Territories. | Mr. Wides. In,-other words, the first category of issue that I mentioned? Mr. Houston. Yes. Mr. Wides. With regard to MH MUTUAL, which is a topi, obviously don't have time to discuss fully todasgyy” stewardship of the o izational chart, asgit were, for the DocId|32202415 Page 8 TOP SECRET
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Phone (Area 202) 544-6006 10 LL 12 13 WARD & PAUL 14 15 16 1? 18 19 20 eal ee Pa) 24 410 2... Washington, 0.C. 20003 20 ‘HW 50955 Dactd: TOP SECRET my A person you were ré counsel we retained for som the Investment Counsel we had atthe time we Mr. Houston. WwHouston. There were about two or maybeg hree recom- (s # z 3 ie ia ie ia Uf Excuse me. Was the Invesjtment Counsél the ring to? Vi . oa : o, this was an gytside investment fe . ee . dvice for agyeriod of time. in ia 2207415 Page 11 TOP SECRET
Phone (Area 202) 544-6000 WARD & PAUL ., &.£., Washington, 0.C. 20003 a = re ° a v HW 450955 10 11 le 13 14 15 16 17 18 19 20 el 22 23 24 25 Bocld:: TOP SECRET off 4 Mr. Wides. 202415 About when was that? Mr. Houston. Let me guess at around 1969, something Page 12 TOP SECRET
Pnone (Area 202) 544-6000 nee) ll le WARD & PAUL 13 14 15 16 17 18 19 20 el 22 24 410 & §.€., Washington, D.C. 20003 25 HW 50955 bBocld: TOP SECRET Up until then as far as you know thegé Vi ult hy might of but might 23° céuple of college ky . Mr. Houston. A member o fee ey Mr. Maxwell. Mr. Houston. Yes. Mr. Wides. board was what, {a7 a Mr. Houston As an alumni. She was calle 4 . consultant on the . Ahad the advice of a couple of friendly@ 2202415 Page 13 TOP SECRET
Pnone (Area 202) 544-6000 Even the prior planff ing to put an f into certain ‘uisurance through iy 1 gf the Department are il 12 WARD & PAUL 13 14 15 16 1? 18 19 20 21 22 S.E., Washington, 0.C. 20003 25 24 «) a = w ° =~ + HW 50955 Docld 25 Page 14 TAD GECDET
Pnone (Area 202) 544-6000 10 li le WARD & PAWL 13 14 15 16 17 18 19 20 21 Re , &.E., Washington, D.C. 20003 25 24 fa c o ~ vr , 25 = noonats Page 15 TOP SECRET HW 50955 Docld TOP SECRET lent worked extremely well. By chose were the kinds of surance companies their investment? Mr. Houston. age investment portfolios of their own, and feel I gave uggaccess to their investment ing. Mr. Wikes. And what was Holigton. He or his office. boos And you mentioned also a bank as awe Mr. Houston. There were a couple of banks, but on ta oe We kept some of the money on deposit with t vA bank. ~*~
Hiv Pnone (Area 202) §$44-6000 WARD & PAUL 410 UES §.E., Washington, 0.C. 20003 50955 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 Doctld: TOP SECRET 63 | The bank at otir advice, and we also New York who had inves ‘ advisory sta Eurobonds. So far as I how, they did ff fhat specialized in E sen the Agency 2202415 Page 16 TOP SECRET
3 1 that yr only one he knows, was the Guaranty Trust. ray ., 4 _ 8 P was -~_—", else,I don't know about it. nN a ° 5 i . Mr. Wides. GEtting back to the question I alli 8 4 to while we weke off the record, did any questions a P whether the people on the board, the investment board, or manag- 6 ing board of Mutua who were from within the Agency, would 7 have access to economife intelligence or poli 3 gence relevant to their yn thinking on inflocments, and 9 Mr. Houston. The 10 to bring up their ideas ll stock field, until more , 12 y é consulting the economic F 13 : edge on trends and any inputfthey cou z 14 ment policies. 15 Mr. Wides. 16 1? 18 m 19 3 & 3 20 a 3 21 . § & z 22 el Eurgbends , were almost entirely in U.S.investments. And‘ bes 24 bay a S hile these were trained economists, their main professiona 5 25 yy oats Page 17 TQP SECRET | | WW 509455 DBocld::
Pnone (Area 202) $44-6000 LO 11 12 13 WARD & PAUL 14 15 16 17 19 20 el 22 Bt, S.E., Washington, O.C. 20003 23 24 “ 4 ub Qa = + HW 50955 Docld: TOP SECRET by outside? Mr. Houston. There papers ~- the board recall it specifically. Mr. Maxwell. The sourge auspices of the board were 25 fone project officer. On the design and organizational bod 5 Page 168 TOP SECRET
Pnone (Area 202) 544-6000 WARD & PAUL Ps £., Washington, D.C. 20003 410 First Site HW 50955 10 ll 12 13 14 15 16 17 18 19 20 el 22 23 24 29 Bocld: TOP SECRET 7 f chartixt looked very complicated. In operation it was quis e was handled really as one entity with vavioudl races And the complications of those whereby A coining for your writing the different companies. Mr. Maxwell. Were there other sources 6f funds, profits jin stock or bond transactions that y, went back into the investment fund? Mr. Houston. They - dges, particularly where Loy stock al gains registered. Then ore, particularly as , ne bonds and certificates Set #027415 Page 19 Fe 4@erFDe ey,
HW Pnone (Area 202) 544-6000 10 il 12 13 14 WARD & PAUL 15 16 17 18 19 20 el 22 yS.E., Washington, 0.C. 20003 25 24 ~ ” = ie =) = og 50955 DBocld: 29 TOP SECRET Ye With regard to the investment, in the case ooda15 Page 20 TAD GECDET. |
> : 8 1 ¢ ¢ Fs) = 2 Qo fet i.) Ke ~ q 3 a c Q & 4 10 il 12 13 WARD & PAUL 14 15 16 17. 18 19 20 21 22 235 Bet, S.£., Washington, D.C. 20003 24 410 First 25 HW 50955 DBoocld: TOP SECRET | a No. fy &e gy Seget one thing straight. The. certifigate of depo- a - The Eurodollar bond sywere in the case those which were guaranteed by a U.S. company. Mr. Wides. Thank you. Mr. Maxwell., I wouldlike to go thEgugh some of the material in the Olsen case. And I have marked as Houston Exhibit 5 the excerpts from the IG's diary which I showed you . before. / (The document referred to was marked Houston Exhibit No. 5 \ for identification.) of 202415 Page 21 TOP SECRET