[tos-totos-to4ee a -@ kL ABET gnc yrad et 1 MAY 1967 MEMORANDUM FOR: Deputy Director for Support Ce hob 7 Coa Wet 8s? (oan SUBJECT ": Claimed Agency Affiliation by -@ 4! Conspiracy Case Figures — ae 1, This memorandum is for your information only. 2. On the afternoon of 24 April 1967, the Federal Bureau of Investigation advised this Office of claimed Agency affiliation by a fugitive witness in the New Orleans investigation into a conspiracy to _. ..assassinate the late President... According to the FBI information, * - xecelved from a news media source, Gordon Dwane Novel, the - rand fugitive witness, had indicated he is currently employed by the CIA and the alleged burglary of a munitions bunker at Houma, Louisiana, in 1961, involved CIA and was not a burglary. According to Novel, the Schlumberger Well Service had an arrangement with CIA wherein it leased a bunker in which ammunition, bomb casings and other material would be stored for CIA. According to Novel, it was intended to ship the material out of the U.5. in Schlumberger boxes labeled "machinery". Again according to Novel, following the Bay of Pigs invasion, the Schlumberger interests became upset and wanted out of their contract with CIA. Three months aiter the | invasion, states Novel, arrangements were made for the material stored in the bunker to be removed by Novel and his group. At the time the material was removed, *he states, an individual involved also took some of Schlumberger's low grade powder and fuses and other material. Novel haa reportedly supplied someone with the names of the others involved with the burglary. He specificially told the media source that he and one Arcacha Smith are still employed by CIA and that should he be returned to New Orleans to face charges of burglary of the bunker, he would offer this as his defense. . a 3, The following day, 25 April, a story in the New Orleans States Item charged there is mounting evidence of Central Intelli- gence Agency links in District Attorney Garrison's presidential assassination conspiracy probe, noting that at least one figure in sot tues '392.°502/\0455 JIA Review on MAR 1977 weer
14-00000 wed . som gt . ait the case intends to use his CIA connections as part of his defense and that "still others linked to the Garrison investigation have been named as acting for the super-secret espionage organization--as informers, as couriers and munitions carriers", it named Novel as having the strongest ties to CIA, and quotes him as calling the alleged unker burglary 20 “the most patriotic burglary.in history". -He reportedly haa told associates, states the news item, that the alleged theft was a war materials pickup made at the di contact. According to Novel, the late David\Wjiliam Ferris, others were involved in the bunker incident. @ the explosives were picked up and consolidated SGoa after the bunker incident and eventually taken by boat to Cuba for use ina diversionary operation in connection with the Bay of Pigs invasion. (This statement conflicts with Novel's reported statement to the FBI's media source, paragraph one.above, which dates the bunker theft as three months after the Bay of Pigs. District Attorney Garrison also has charged the bunker incident took place three months after the Cuban invasion. ) The newspaper also quotes Novel as contending that he operated the Evergreen Advertising Agency in New Orleans as a front for CIA communications in an elaborate use of commercials to alert agents to the date of the Bay of Pigs invasion. 4, Novel, according to the presa report, has said "I think Garrison will expose some CIA operations in Louisiana", but did not elaborate. His attorney, however, would appear to place little faith in Novel's claims. Ina Columbus, Ohio, interview, Jerry Weiner, . attorney for Nevel, when told of the press reports of Novel's state- ments, said: “It's utterly ridiculous. - Novel is not now and has never been a CIA agent." 5 There is no record of any ntilisation ¢f Gordon Dwane Novel, Sergio V. Arcacha Smith, or the Evergreemddvertising Agency. (In addition to Office of Security r : Staff were checked for possible indication of operatipnal involvement. ) 6. Inquiries with WH/Cuba, the Office of Logistics, and several Agency officers involved with munitions storage in the New Orleans area at the time of the Bay of Pigs fail to develop any indication of past operational activity of the nature described by Novel. Officers who handled project munitions storage in the area have inadi- cated that all the rnunitions were stored at a reactivated Naval depot Same pers. ea raed |
14-00000 pore we ee a fh j mie and completely under Agency control, Munitions in transit were guarded, and there is no knowledge of utilization cf commercial storage facilities of the Schlumberger interesta or any other commercial firm. (The Office of Logistics has had dealings in the past with Schlumberger-related firms, but-has avoided activities with the Schlumberger firm because of its foreign ownership and questionable personalities in the firm. DCS has had an interest in the past in some personalities affiliated with Schlumberger, but reportedly unrelated to any matterea aa alleged by Novel. } 7. As noted above, Novel has claimed to the press that.the munitions from the bunker were to be used r a diversionary operation at the time of the Bay of Pigs. Agency officers familiar with the operation at the reactivated Naval depot, the Belle Chasse Ammunition Depot, have indicated that such a diversionary opera- .. tion was based at Belle Chasse, but.that the operation was. cancelled before a landing was made. Any. namber of participating Cubana would be aware such a diversionary operation was planned. 8. The CI Staff, in a detailed staff study of the Garrison investigation, hag, CIA co ith only two figures named in the inquiry, Clay Dy Shaw-and Carl Bringuier, _in both cases the contact was lim estic ¢ Service activities, The study specifically notes there hase been no documented Agency - utilization of Novel, Ferrie or Arcacha Smith, those named by Novel in his statements to the press about the bunker incident. 9. During the course of our inquiries into Novel's charges, one tenuous Link was developed which conceivably could be exploited and distorted in attermpts to link this Agency with Novel and others. _ An interlinking with a personality reportedly from Ramparts Magazine might also indicate a connection between Novel's charges and the con- cexrted efforts of some to smear the Agency. This situation is described in an attachment to this memorandum. Masban 6 aA. Us eae AL tof Howard J, Osborn Director of Security 1 Att LEGRET
14-00000 : (2uey . tae fe A. NOVEL Is Polygraphed by Lloyd FURR on Garrison's Charges. Gordon Dwane NOVEL, already a fugitive witmeas in the Garrison inquiry, is reported in the Washington presa of 27 March 1967. 23 having been polygraphed the previous day on the case under investigation by Garrison, According to the presa reports, NOVEL submitted to a polygraph examination conducted at MeLean, Virginia by Lloyd FURR. In statements . to the press, FURR indicated there was no indication of deception to NOVEL's charges that Garrison's case is a a private detective, is a self-proclaimed polygraph “expert” and sound device specialist. He has received publicity i in the past for planting sound devices for the late Fulton Lewis, Jr. in the St, Mary's County vice case in 1953 and in 1953 when he discovered listening devices being used against Bernard Goldfine. In 1964, information was received that a Washington, D. C. firm, REDEX, operated by FURR and Richard L. BAST, was attempting to sell electronic equipment to Communist China via an agent in Hong Kong. (TSD had unclassified contact with FURR in 1962 to see equipment offered for sale by FURR. } C. Richard L, BAST and REDEX. Richard L. BAST, a Washington, D.C. private detective, gained noteriety in 1965 by turning up a missing witness, previously — unlocated by the Department of Justice, in connection with the Bobby Baker case.. He is known to operats at least four ‘ enterprises: 1) CAPITAL BUREAU OF INVESTIGATION, a |, private detective agency; 2) eee TEM. INC. , a firm % which imports a variety of commodifies ranging from Hquor to automobiles into South Vietnam, including, of late, U.S. -recruited ming; 3) REDEX "eo-go" girls for a Saigon nightclub he is Kw _CORP., a firm which sells almost anything t body abroad,. “Other than South Vietnam; and 4). CONSCLIDATED MAMENTS, \ ING., 2 firm which sells small hrsme-to-foreign-goveraments-and ~ private individuals abroad. BAST also produces and distributes both positive audio and counteraudio devices in the U.S. and 14
14-00000 ° overseas. LAST, described as “unscrupulous and untrust- worthy", is known to have atternpted to contract with another private detective for planting a remote-caontrolled bomb in the headquarters of the Haiti Secret Police, and has been reported to have undertaken similar extreme assignments for exile groups from Haiti and the Dominican Republic. (Based oa derogatory information on file, DCS, in March 1967, decided against previously contemplated contact with BAST as a source of information on Asia, : a SN TURNER of RAMPARTS ‘mates D. BAST, REDEX, and William W. \ pat CA Staff has provided inié: that during January 1967, William W. TURNER, who i ed himself as a free-lance writer, visited the offices of the Asia Foundation, requesting information for 2 magazine article, He stated that he had been asked by Sol Stern of New York to gather information for an article in the New York Times. During his visit, however, it became obvious that TURNER was primed to ask questions about the financing of the foundation, rather than its actual purpose o7 activities. When TURNER concluded the interview he left a calling card with the fiym name “PEDEX-PACIFIC". He explained he bad to have new cards printed, TUR reportedly dismissed from the FBI in 1961, is noted authored an article in the November 1966 issué of R Magazine in which he describes alleged wireta api reptitious antry, etc.» performed by him while wi Sol Stern, whom he claimed to represent, is assis managing editor of RAMPARTS Magazine. ARTS ¢ 2 ws Role of FURR and BAST in CIA Meeting of Exile pi (The foregoing has attempted to detail the contact of NOVEL with FURR, FURR's connection with EAST, and a possible connection between BAST's organization and RAMPARTS. The following indicates the only CIA involvement in the chain which might be exploited in subsequent attempts to link CIA to the entire affair in guestion.). _. oa ™ ‘ On 29 April 1963, ‘Robert E- en, then Chief, WE/3 and (// now of Paris Stations directed 7 memorandum to the chiest 4 (4
14-00000 ~, “27 Avs== 1963, with Raymo ret WH/4 =m which he documented a mversation he had on *CASSAGNOL, an anti-Duvalier exile =-om Haiti, Inthe memofandim he relates that the convezsz2tion took place in the ‘Richara L, BAST whos <rwen had met through a neighbor, Lioyd FURR. _ The =>2-norandum relates CASSAGNOL's background, family, political stance, ete. Reported as significant by Owen is a stetexcenut by BAST that the following week BAST would be sendieg a sbipload of arms to a CASSAGNOL-affiliated group in the Dominican Republic. Owen noted: "Raymond CASSEAGNOL gives appearance of thinking well of Richard BAST. According to CASSAGNOL, his brother, Jacques, aiso oows BAST and respects him. Thus BAST, in spite of - certain personal shortcomings from the intelligence standpoint, does represent an established channel to at least one segment - of the Haitian opposition to Duvalier. Since according to his own statement, BAST is supplying arms to CASSAGNOL's groups, further transactions of thia type via BAST presumably would not be difficult to arrange. " Be alse provided g detailed information on what he learned of BAST, noting that BAST had mentioned Dominican distrust of State and AID and the fact that HCTA double~crossed them" (the Dorinicans). An FEI report on BAST dated 19 June 1963 reports that Owen, "Foreign Service Reserve Officer, USDS" (his cover) had reported 16 May 1963 his attendance at cGinner at BAST's home on 27 April 1963. Owen told of his meeting with CASSAGNOL, BAST's intention to sell arme to the Dominican Republic and Haitian exiles, etc. He also reports that on 7 May 1963, BAST asked him to perform some transiation work. The translation, he stated, related to BAST giving a power of attorney toone Lais MORENO Martinez of the Dorminican Republic to prepare Gocumentation for legal establishment of REDEX CORPORATION, Cc POR A, a DR branch of BAST's firm. According to Owen, £0% of the stock was to be held by the head of the DR National Security Agency, the head of the DR secret police, and an individual well-connected with Dominican Republic police and intelligence groups. BAST is also noted to have told Owen of an offer BAST had made to "bag" the office of the Dominican yf
14-00000 Secretary of State for the Armed Forces on behalf of Juan Sosch, BAST did not indicate to Owen if had performed the job. rr (There is no record of a clearance having heen issued for nfilization of Richard L, BAST or REDEX, } a | \d eri ri een |