exe 404-10216-10100 ot . . 8 fl 3 Pere So cep. A i Se onl ceer ay ohuiel, ey /GC2 F 7 ¥S~1247-74 : 31 July 1974 | HEMORANDON FOR THE RECORD SUBJECT: I. Irving Bavidsoa peter ont caret ESET tye mene > i. &€ 1000 hours on 31 July 1974, in compliance with instructions from Mr. Halpern, I met with Niel Ainsley, Chief, Covert Frocurezent/OL, relative to the Davideon matter. Ainsley read the Washington FO memo regarding the subject aad then called Billy Morgen and asked him to - goin us. Morgan ae Chief, Operations Support Branch, Supply Divisioa/OL, has the direct responsibility of funding for, receiving, and storing items of the type that Davidson is seeking to peddle. After Morgan vead the Washington mamo, a long discusaion ensued from which the following poiates emerged: & Per instruetions from Mr. Colby, the CIA is eurrentiy engaged in a dialogue vith the DoD to determine the mutual responsibilities of the CIA and the DoD in future paramilitary operations. One of the meet important aspects of thie matter ie legistical eupport. Although thia has act yet been settled, the , @@eumption is that the CIA will continue to bear the major respousibility fer procuring Soviet, Blee, and PRC ares and amemm to support parenilitery ops. This hes sever been a mission of the three military services end they have no capability for this type of acquisition. . (the principal CIA rep in these discussions with the ater so epee Sp agprisenipmeye <enemersimengentiegin rept meme yes ! be The CIA inventory of 7.62 Soviet ammo has been seriously depleted in the past year and, for eeveral woaths, Afasley has been seeking to procure up to 4 million rouds through different sources without success. Each attempt to secure ammo involves some security risk. apm tee we y
14-00000 we ' ' me . . . . & - . . oa ‘. + ° ~ asia) a - : ° te at SEL : ¥S~1247-74 e@. In view of this fact, Morgan offered the opinica “4 that from a logistical point of view it would be advantageous .¢@ purchase the entire 25 eilifen rounds from Davidson (at @ eest he estimated to be in the range of $3,125,000.00). Taie would provide the Agency with e five-year supply and Gliminate the necessity for Aiusley running the security geuntler every few moaths te replenish the {nventory. @. M“evertheless, because of Davidson's unsavory reputation and his close connection with eolumist Jack 4aderecs, 1¢ wae generally agreed that hiu utiliescion would be risky in the extreze. i | i { | SUBJECT: I. Isving Devidson 7 2. Aineley euccested thar we run the probles ty bie tess, P Mich.al Malanick, Cuief, Offices of Logistics. Accordingly we net with Melanick and his Deputy, James McDonald. After a thorough rehash of the gatter, it was agreed that: @. Morgea will confer with SOG and deteraine the feasibility of taking the entire 2§ ufliien rounds. | . b. Ainsley and Morgen will check with cheir legitieste ares dealera and sea if any of them have ever heard of Davidson. If eo, one of them will approach him and ask (ineecently) if he knows of euy 7.62 ame available. @. There is ales ea possibility thet one of Aiasley’s reguler contecte wight have some idea as te who Devideon’s source ia. Im that case the sources will be approached directly end Davideon will be cut @et of the petters. a ES will iestruct the Washington Field Office te tell Devideon that there fe me CIA interest in this ecquisition end bow out of this affair. ps Vile: Services/Coatre) | Seti TO ene ogee Ense «one & 3