## Page 1

14-00000

104-10173-10130

2025 RELEASE UNDER THE PRESIDENT JOHN F. KENNEDY ASSASSINATION RECORDS ACT OF 1992

SECRET

дія .

20 December 1973

MEMORANDUM FOR THE RECORD

SUBJECT: E. Howard Hunt

1. Iphoned 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.

I said that our files shoed Hunt was in DO Division (Burns

was not familiar with that title, but recognired 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 he 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 avallable,

3. I said that Fig Coleman ivas 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 ät 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, lasked 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 PLMHPLAN for.

messages to Helms. He would advise the action officer. I said we are

available for any help we can give.

04D. Buchn

S. D. Breckhridge

:ic=-5611Ne

---

## Page 2

14-00000

дся

20 December 1973

MEMORANDUM FOR THE RECORD

SUBJECT: E. Howard Hunt

1. I phoned Paul Burns, Special Assistant to the DDO, and

said that we had some leads that could be followed by whoever hag

the action in the DDO in tracking down Hunt's activities during the

fall of 1964, when he was alleged to fave been engaged in surveillanco

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 availabic.

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 böth Helms and Karamessines should be queried.

I gave as a possiblo press treatment that Hunt was engaged in

domestic operations (something Senator Baker is pursuing) and that

his assignment to Spain after the clection 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 Watergale.

He said we are on the PLMHPLAN: for

messages to Helms. He would advise the action officer. I said we are

available for any help we can give.

S. D. Breckinridge

.11.

---

## Page 3

14-00000

SECRET

9 May 1974

MEMORANDUM FOR: OPS/ RMO

SUBJECT

: Watergate File Research - Final Report

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 communt-

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:

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.

E2 IMPIET

CL

BY 056759

SECRET

---

## Page 4

4-00000

SECRET

-2-

SUBUECT: Watpreate 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.

Rout E: Diveir

Robert E.

Owen

Chief, OPS/OSG -

---

## Page 5

14-00000

UNCLASSIFIED

INL

-NAl

USE ONLY

O CONFID..TIAL

ROUTING AND RECORD SHEET

IS SECRET

FROM.

Director of Finance

1212 Tex Building

i not dripress room minder, and

Date

27 February 1974

DATE

OFFICETS

INITIALS

Inspector General

2E 2a HOS

$7

Fied

Tubul

Sandy: Quietel - w

le

9.

10.

M 1N::2916

---

## Page 6

14-00000

SECRET

27 FES 1974

MENORANDUM FOR: Inspector General

SUBJECT

: Howard Hunt

1.

At the recent request of the Deputy Director for

Nanagement and Services, the Office of Finance has searched

its records to determine if we could find any payment to

Mr: Hunt in an anount of approximately $30,000 that required

no accounting.

2. We have searched the following records:

•&.

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.

b.

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

pseudonyms.

c..

Mr. Hunt's travel claims for the period

1960-1972 and have found nothing

in these

travel claims that were not consistent with

normal trável 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.

'65-Sept '66) and have

E2

IMPDET

CL SY: 006567

SECRET

---

## Page 7

14-00000

SECRET

SUBJECT: Howard lunt

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,

one item appeared unusual.

It was

an

expenditure of $1,600 for a sensitive

operation which was approved foi write-off by Mr.

Desmond Fitzgerald on i June 1966 without

further accounting.

Also,

we confirmed that no other Agency advance accourts

wore established for Mr. Hunt during this period.

. 4.

At the beginning of his non-official cover toutine

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.

(MT. Hunt had an account at Riggs National

Bank to receive

his

salary and allowance payments):

The

following deposits were made to the account during 1965 and

1966:

Account opened: 13 July 1965

13 July 1965

22 July 1965

15 September 1965

6 October 1965

$10,000

5,000

5,000

5,000

19 July 1966

5,000

$30,000

All of the above have been accounted for by submission

of travel and transportation accounting$:

S.

We feel at this time hithout

specific guidelines that

further searching would be sonewhat

fruitless.

One

strange

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

are usually assigned to a project.

It is unusual to have a

case officer abroad for one year on an operational assigment

without him incurring operational eapenditures.

- 2÷

SECURT

---

## Page 8

SECRET

SUBJECT: Howard Hunt

The Offico of Finance has not found operational

expenditures except for the $1,600 mentioned above.

Therefore, it is suggested that Mr. Karamessings be questioned

as to a project of projects to which Mr. Hunt's operational

expenditures if incurred would have been charged.

7. Another possible course of action is to request the

Dircctor to approve my

asking a clcared 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.

Thomas

B.

•Yale

Director

of Finance

SECRET

---

## Page 9

COMR BENTHL

20 December 1973

MEMORANDUNG FOR THE RECORD

SUBJECT: E. Howard Hunt

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

roported activities involving Mrs. Hunt.

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 (Karamegaines)

that Hunt was to be assigned to Madrid as DCOS, as a directed assign-

ment by Helms. A memo was prepared and sent to the COS, Jim Noel

(now rotired). There was nothing further for about a month when Ryan

called Colemar. 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

tho days until Hunt left. The President of Uruguay visited President

Eisenhower in the States, at which time he requested a personal favor-.

that Hunt be reassigned to Montovideo. - 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. Aíter 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 thät he didn't know

much about it. It carie 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 beiore he went out. He knows that there was

no operational reporting, to indicale that Hunt was doing anything.

---

## Page 10

14-00000

CONZDEMTIAL

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. Because

Coleman had a close personal association with Karamossines he

did just that. He was told by karamessinos that he didn't krow much

about it either--"Helms said send him out," He was instructed to go

ahead.

In carly. July 1966 (4 July) Coloman went to Madrid. He

had a ten day turnover ivith Jim Noel. Hunt had already gone and

he did not see him. Noel said ho didn't know what Hunt did, but

that Coleman need not worry because ho was gone.

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 press.

Tad Szulc had been after Woodward about the Hunt assignment to

Spain. Coleman observed that Szule 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. Colemin 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.

40. Rucil

S. D. Breckinridge

---

## Page 11

14-00000

22 February 1971

IG Fill! Tub 38.

NEMORANDUM FOR THE RECORD

SUBJECT: E. Hourd Hunt--Nadrid Assignment

On 22 February 1974, Mr. Frederick N. Evans

and the sunders, Deputy priced to peard Byss on

the subject of Mr.. E. Howard Hunt.

During the perioc

of NT. Hunt's

assignment as a Contract talke A arent

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 intervicw was to determine if Mr. Ryan had any

infornation bearing on the matter of the operational

assignment of Mr. Hu.t 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 vas 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.

Ni. Ryan made the specific observation that if

Me. Hunt producca positive intelligence on the Iberian

target during this period the officials responsible

for this effort within.

the Western European Division

were totally unavare.of it.-

Mr. Ryan stated that most of his knowledge of

Mr. Munt's activity and the nature of his assignment

during this period came more. througl hearsay than

For example, he cited the

connent made by a mutual acquaintance of his and Mr.

Munt's to

the effect that dr.. Hunt stated that while

in Nadrid he was going to "play golf and trite books."

Ryan was asked specifically whether or not he was

---

## Page 12

14-00000

(

under thi

impression that tr. Hund's triting activities

vere either boing encouraged or subsidized directly

by this Agency

in

ary

official effort.

Mr. Ryan re:

sponded

that he was personally not dare 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.

= contine

Lawrence J. Howe

---

## Page 13

4-00000

TO

PEESSIECE CUDY ONTO NO SOMET

LiCLASSIFIED

TOM TOP AND LOTTON

OFFICIAL ROUTING SLIP

NAME AND ADDHISY

DATE

Mr. Howe

INITIALS

ACTION

APPROVAL

СОЖМЕНТ.

CONCURRENCE

Remarkss

: DIRECT REPLY

DISPATCH

FILE

INFORMATION

PREPARE REPLY

RECOMWENDATION

RETURN

SIGNATURE.

FOLO HERE TO RETURN TO SENDER

FROM: NAME, ADORESS-ANO PHONE NO.

0/IG/224 Has. /5527

USCLASSIFISD

ICAN

237

lisa previous editions

CONFIDENTIAL

DATE

22 Feb 74

SECRET.

---

## Page 14

14-00000

TION TOP ANO DOTTON

SERIET

11r

16. File 10, Tal 32

22 February 1974

MEMORANDUM FOR THE RECORD

SUBJECT: Conversation with Sama Halpern

I. I met with Sam Halpern for about 20 minutes this morning

in GGl0; 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

assigament. 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 followiny 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 daring 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.

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 fo. 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 ha may noi). He aiso suggested talking to Georgia.

IS! S. D. Ereckaridge

S. D. Breckinridge

Mooterri

71,

872757

= 12058 CL BY 0: 3180

---

## Page 15

14-00000

(

I6 Felo 12, Tech sé

21 Fcoruary 1974

MEMORANDUM FOR THE RECORD

SUBJECT:

Watergate--Frank A. O'Malley

At 3 p.m. on the afternoon of 19 Eebruary 1974,

Nt. Frederick N. Evans and Lawrence J. Hove interviered

Nt. Frank A: O'Malley

at his residence, 6419 Lakeview

Falls Church, Virginia.

Mr. O Malley retired

from this Agency in

of 1972.

Prior to retirement

O'Malley was

an officer in the External Employment

Assistanco Branch, Retirement Activities Division of

the Office of Personnel:

It was Nr. O'Malley's function

to assist personnel retiring fron this Agency in finding

post-retircment employment.

In this capacity Mr. O'Malley

had been instrumental in the plai-ment of Mi. E. Howard

Hunt in the Robert R! Mullen public rélations firm.

The

purpose of this intervier was to attempt to dotermine if

additional information could be developed from Mr. O'Malley.

with regard

to the placenent of Mr. Hunt with the Muilen

Company •

Nr. O Mailey began the interview by recalling

tho naturc of his past Agency associations both with Mr.

Hunt and the Mullen

Conpany.

Mr. O'Malley stated that

prior to assuming his responsibilitics in the Office of

Personnel he had served with Central Cover Staff in the

area dealirg with the funding of covert action projects.

In this capacity he had become familiar with the acti-

vities of No. Hunt while Mr. Hunt functioned on the Covert

Activities Staff primarily in the propaganda field. N.

O Malicy 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

es the Free Cuba Conmittec.

MI.

OMalley related that he had arranged this cover through

the Christianforn Orgonization and that his duties in-

volved all aspecis of the funding of this activity.

O'Malle) described

the rature of his working relationship

---

## Page 16

14-00000

with dr. Robert R. Mullen is being close

and cordial.

MT. O'Malley siated

that Mr. Mullen was in the habit:

of confidiny

to him infornation concerning other Mullen

ousiness contacts and projects.

In

response to a

spocific question, Mi. O'Malley scared that during the

period of his contact with the Nullen Company dealing

with

the Free Cuba Conmittee, Mr. Sullen told him the

Howard Hughes Organization was a client of the concern.

3.

No. O'Malley reiteratcd 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

riew of Mr. Hunt's. interests in the public relations

field, it was thought advisable to put Mir. Hunt in touch

with Mr. Robert Mullen for the purpose of gaining the

benefit of Mr..

Mullen's guidance.

ir. O'Malley recalled,

after the initial meeting, Mr. Mullen mentioned having

net Mr. Hunt some years previousl) in Paris, France.

NI. O'Malley's office arranged interviers with various

organizations including Reader's Digest and the Kennecott

Copper Company.

Through the offices of the Mullen Company

an intervier was arranged with the General Foods Corpora-

tion, a Mullen client.

Mr. O'Nalley stated there was

disappointment that Mr. Hunt had been unsuccessful in

"selling himself" during any of these interviers and that

no job offers had resulted.

In response to a question

as to whather or not executive level interest vas still

being

shown. in Mr. Hunt's post-employnent placement;

Mr.

O'Malley rocalled that Mr. Richard Helms, then

Dircctor of Central Intelligence, las listed as a charac-

ter reference on Mr. Hunt!s resume and that Mi.. Holms

signed a letter of commendation to the Kennecött Copper

Company on Mi. Hunt's behalf.

Mr.. O'Malley recalled being

contacted in the last month of Mr.

Kint's Agency service by

ir; Mullen, Who stated that a decision had been made to

expand their onerations.

In vier 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.

lunt begin work inmediately.. However, Mr. O'Malley. re-

called that Mr. Hunt completed retirenent formalities and

actually started work for the Mullen Company approximately

a week to 10 days latcr.

2

---

## Page 17

іла дет

in .

Mr. O'Malley stated thai coniact mis saintained

with Me. Mune while at the dulien Company on i continuing

basis, because Me. O'Malley was interesied in dir. Vunt

for possiule referral of other dyency retirees.

O'Nalley also understood that there vas Cover and Con-

mercial Siaff interest in the mullen Company, ard that

Mr, Hunt becane instrumental in discussing

screral.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 disappointent

in. feelirg Mr. Hunt had generally been less helpful on

these occasions.

5.

Mr. Hunt contacted Mr. O'Malle) on several occasions

requesting referral

of retiring Agency employees with

specific qualifications.

These instances occurred apparent-

lj after ir. Hunt had assuned his responsibilities with

the White House.

In one instance Nr. Hunt requested re-

ferral of a recently retired Agency secretary..

previous memoranda and discussions, Mr. O'Naile) Nas unable

to recall the name of this individual.

lle did, horever,

state that he is quite certain Mr. Hunt turnea down the

individual whom he referred. As a point of clarification,

hit. O'Malley said that this individual had not previously

been known

to. Ar. Hunt, nor had she previously vorked

for him in

any capacity. Mi. O'"alley also recalled a

request from Mr. Hunt for an individual having stilis in

the area of locks and surreptitious entry.

A resume of

Mi. Thomas C. Amato was provided to Nr. 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

nceded 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 rould include the monitoring of a listening

device in an undisclosed location.

Mr.. O'Malley reiterated

his understanding that Mr. Anato did not accept Mr. Hurt's

iffer of employment.

Mr. 'Malley then recalled request from ir. Hunt

for a roconmendation of a

security service

to carry out an clectronic.counterneasures "sweep."

O'Malley recommended

the lackenhut Corporation.

3

---

## Page 18

O'alley recalled that tr. Hunt coprossed dissatisfaction

that suggestion in

vieved as that firm's political crientation.

Part hecause of what Mr. dient

dir. O'Nalley

did not claborate further on that romari.

Mr. O'Nalley

then suggested the use of Anderson Security Consultants,

incorporated, i commercial cover entity of the Office of

Security.

Mr. O'Malley stated that insofar as

organization vas advertised in the jollo

pages and that

Hr. Hunt could ba assured of the reliability of the ser-

vices, he felt this to be a reasonable suggestion.

'walle) stated that during a subsequent phone call when

.. O'Malley asked how his suggestion had worked out

"Yes, they had done a fine jou."'

his associations with Mr. Hunt he felt Mr. Hunt was in

the habit of making glib connents which were not neces-

sarily accurate in order to pass over a subject. Mr,

O'Nalley stated that this was categorically so.

He said

he was sure that Mr. Hunt had lied

to hin on a number of

occasions and that, therefore, he vas in no position to .

be sure that Mr. Hunt had actually, in fact, used

services of Anderson Security Consultants.

Mr. O'Malley

volunteered the opinion that he suspected the electronic

counterneasures "sweep" was to be carried out in the offices

of the Committce to Re-elect the President.

In response to a question as to whether lie had

over 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 fircaim in spite of the :

fact that Mr.

NcCord told him he could do so on the author-

ity of the Attorney General. Asked specifically if he had

ever referred either Willian Shea or Teresa Shea to Mr.

NicCord, 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 hin.

So, contrary to

previous statements, it is now Mr. O'Malley's belief that

in all probability Mrs. Shea was not iefcrred by this

Agency to Mr. McCord:

---

## Page 19

8.

Rei. ning to dr. O'lialley's pi-rious

responsibilities

in coordinating funding

for tho covert action activities

of dir. E. lioward Hunt; the issue was raised as

to mother

or not the fundin! of

dr. Hunt's projecis continued beersen

July 1955 and Septenber 10S5 shile Mr. Hunt vas a contract

caployce stationed at Madrid

Mr. O'Malley recalled

that at the time of Mr. Hunt's pusionment to Nadrid the

stütemoni assuminated

for consumption within the Agency

was that Mr. Hunt was ictiring.

Mr. O'Mallcy statod that

this was not generally bolicved.

Mr. O'Malley was quite

certain that during this period his office handled no

project funding for Mr. Hunt. In response to specific

question Mr. O'Malley stated that on ir. Hunt's return to

staff employment the projects and funding which stopped in

July: 1965 were again resumed.. Mi. O'Malley vas nöt avarc

of any project nines or funding nechanisms or post-assignuent

accountings in connection with Mr. Hunt's activities in

Madrid.

Колек

Frederick N. Evans

---

## Page 20

4-00000

intery.. l

21 FOUrUSTY 1971

MENORINDUM FOR THE RECORD

SUBJECT: Offico of Finance Rocords - 5. Howard Hunt

1.

On the instruction of Mr. Steven L. Kuhn, Chief

Of Operationg, PSI,

the undersigned made an appointment

for tha afternoon of 20 Fabruary 1974 to interview. Mr.

Willian Caufleld, Chief, Cortification and Liaison Divi

sion, Offico of Financo, and Mr. Joseph Hudson of Pinance

on the subject of Mr.

E. Howard Hunt.

At the outset of

the intervion Nr. Caufiold advised the undersignod that

instruction had boon recoived from the Director of the

Office of Finance, Mr. Thomas Yalo, that discussion on

tha subjact of Mr. Hunt was to ba carried out only with

the Office of the Inspoctor Genoral: MI. Cauflold stated

that he had intorod MI... Yalo of the requested interviow

and had Isceived this instruction with the suggestion

that the undersigned contact Mi. Yale directly with any

Inquiry.

2.

Acconpanied by Mr. Caufield, the undarsignad

briefed Mr. Yale on the nature of

the request and idon-

tifiod tha

"Task FOrCe" offort being undertaken by the

Office of Security In concert with the Offlces of the

Inspoctor Ganoial and Logislative Counsel. Mr. Yale

responded that he recognized the legitinacy of the in-

quiry.

Nr. Yals explained that subsequent to initiation

of the complets audit being undertaken

by. Mr. Quinn of..

the Audit. Staff, the Deputy Director for Management and

had requestod ths

Series Minance to discontina their invastigation of

Mr. Hunt to avoid duplication.

Yale aidid paran-

thatically that it was the nature of Pinance Officers

not to lsave a job half dono and thai en.

"informal"

inquiry into Mr. Hunts ftnanclal records had neverthe-

less continued

at a nore subdued

pace.

i.:73

E2 IMPDET

CL BY 011695

---

## Page 21

3.

A rovior of tho circunstancos surrounding Mo.

¡unt's convorsion to Contract Typo A employment and

assignont was then undertakon by Messes. Yalo, Caufiald,

Hudson and the uncorsignod.

Tho contract and payroll

£1103 0f Mr. Hunt wore reviowed for possiblo indications

of tho naturo of tha operational activity undertaken in

madrid.

A review of travel vouchers indicated that Mr.

•Hunt and his family made accountings indicating departuro

Tron Washington, D. C.

on 5 August 1965 with un arrival

In Madrid, Spain, on 16 August 1965.

The costs of this

travel were charged to the budgat of the Western Hani-

3pheto Division, Ceputy Directorate for Plans, Madrid

Station Support account.. A subsequent accounting sun:

marizod PCS travel expenses and included a payment for

apartment tontal for l6, 17 and 18 August 1965 with s

payment in the amount of $125 to Mr. F. Roid Buckley for

this purpose.

4.

It was determined that an allottee bank account

in Mr. Hunt's name had been ostablished at the Riggs

National Bank of Washington.

All galary and other non-

oporational reimbursements tere made to fir. tunt through

sterilo check to this account.

An oporational account

was established. for Mr. Hunt with the Chase Manhatta

Bank of New York City.

A review of ail paymants mado to

Mr. Hunt through the Chase bank account through Mr. Hunt's

oporational advanco subsidiary account, or 1442 account,

had been nade.

Thoro was no record of

any operational

accounts or advances being processed through this channel.

fir. Yals statod that this fact defined his concern.

He

felt that

It was inconceivable that Mr. Hunt could have

undortaion oparational activity without some transfer of

or accounting for funds.

to date, no such records have

been devoloped.

No referanco to a project or project

digraph or operational FAN number has ben located.

expenses connected with Mr. Hunt identified to data worg

charged to the Madrid Station Support.

A reviow nade of

Madrid Station rocords has not indicated any "Developmental

and Targat of Opportunity (OSTO)" funds or "Other Opera-

tional Activity (COA)" funds expended by or on bahalf of

Air: Hunt.

Thase two accounts would normally bo the sourcs

of operational funding not charged

ject accloity.

against a spocific pro-

2

G:::37/02650373

---

## Page 22

5. A terion of all of tha travol vouchors on record

for dr. lunt during this period also failed to identify

aproject. In addizion to cho PCS and Istura vouchors,

tuo ochor accountiags ara on record.

Cno accounting

coverod a trip by tha

tha renoval of visas "entire lunt faally to Paris "for

A second voucher covered a TDY

trip from Madrid: to irashingion with roturn to Madrid

naja by Mr. Hunt fron 5. January to & January 1966.

statos in tho space provided for the citation of

the trayal ordar nugber - "no travol ordor." The account-

ing was approved and signed by Mr. Thonas Taranossinos,

tagn Laputy Dirgetor for P1a23.

No justification or

statement of purpose for this TDY was given on the account-

6. Mr. Yale doteralaod that furthor rovlow of possible

sourcas or identifiestion of operational funding was in

It. Yale gave instructions that the entiro 1442

advance accouns of Mr. Hunt be revlewed for other possible

channols of funding outside of the Mer York Chaso account.

After discussion, it was agreed

that particular attention

bo taken to any itons connecrod miti publishing or book

royalties. Mr. Yals noted that the royalty ofsset waiver

provision annenied to Mr. Hunt's contract was, in his ex-

perienca,

sonerhat unusual.

Yala as inforned by the undorsigned of the

intention to interview Mr. Edward Byan,.

currently Chief,

Division D, sho was at the rime of Mr.

Hunt's Madrid assign-

nant, Deputy Chios of the lestarn Henisphere Division.. Mr.

Yala

suggested that Mr. Davis Powell

also be intervioned.

Tha undarsigned informed MT. Yale that this had been dono

and briefed Mr. Yala on the generally nogativo results of

tag intervien.

Mr. Yala then

reconnended that Mr. San

Halpem be intor-lened.

Ar. Tale noted that Yr. Halpor

had been an assistant to dr. Desnond Fitzgerald when the

latter wäs Chief,

Western Hemisphero Division and had ac-

companiod Mr. Flizgorild when he becane. Deputy Disctor for

P1179.

Mr. Yalo recallod that subsequent to Mr. Fitzgerald's

passing that de. Halpera remained on the stais and actod as

an Executlvg OfficoT For Mr. Tronas Jaramossinas.

siazeu that fron his experience, Mt. Karinessings would

have dolegazad all the arranging of

"Jerally" surroundins

un assignaent such as Nr. Hunt's to Mr. Halporn.

NT: Y310

offared tho parenthetical obseristion of his surpriso at

what be interpreted to do reticanco to date to interver:

i. Hialpem.

3

SeT 539i2

---

## Page 23

4-00000

(

35:065, 38001173

8.

Tha undersigned assured Mr. Yale that he would bo

intormad of any inforzation

identifying any possible project

activity developod in subsequent investigation.. Mr. Yale

stated that any information in this area would

greatly

facilitate the job of checking conputorized financial

records.

Lawrence J. Howe

---

## Page 24

CHASE MA

CAN BANK ACCOUNT®

Check No.

8

9

10

Date

20 October, 1965

Payee

Unknown

12 months rent as deposit plus l month

in advance at $550 per month. Substan-

tlated by lease)

26 November, 1965

Casa Guggenbuhl

Compotory cousingunks during 3 mos.

10 December, 1965

Security Storage Co.

(final destination charges per attached

invoice.

personal expense.)

Insurance charge of $1.00 is

$ 1,650.00

69.34

$ 1,070.82-

November 19, 1965

December 20, 1965

Expenses

Flowers for Sra, de Max Borrell

Dinner at House of Ming.

Ex-Bolivian Ambassador

and wife.

(Per my letter of 21 December, 1965)

Ptas. 150

Ptas. 2250

---

## Page 25

Melinaivin

SERVICES OTHER THAN PERSONAL

she-

Terence S. CRABANAC

ATTACN RECCIPT. AND OTHO 11!

0200001156010

UMISTS.

1S Novil9GS

20 Dec 1965

Flowers for Sra. de Kar Borrell.

Dinner at House of Ming.

Pesotas 150 @.60/$1.00 - $2.50

Ex-Bolivian Ambassador and wife.

Pesetas 2250 @ 60/$1.00 - $37.50#

10.00

= For oporational security reasors a raceipt was not obtained.

(Credit the Vil. 2 advance account.)

¡OTIFY THAT THE DISDURSIMENTS ITEMIZEO ABOVE VERE NSCESSARILY MADE BY ME IN THE CONDUÇT

•AFFICIAL BUSINESS OF A CONFIDENTIAL, EXTRAORDIARIY, ER EMERGENCY NATURE:

THAT i HAVE NOT

NOR WILL 1 DE, SELAURSEO TIEREFOR FROM ANY CINER SOURCE, AND THAT THIS CLAIM AND AT-

"HUENTS ARE TRUE AND CORRECT.

see true name attachment

GMATURE O.

CLAIMANS

IPPROYEO

DATE

¡SIGNATURE OF PAYRE

I CERTIFY PURRS. AGE AVAILAgLE

MCF.

NO.| CHANCE PAY ACCOUNT NO.

-2282

6136-1317 (code 3)

AUTHORiXCO SICNATURI

Feb 66 /RE/BF

Charles 6. Vativ

JOATE

SIGNATURE OF AGENT

DATE

¡SCRIPTION-ALL OTNER'ACCOUNTS iS. 30

J4.38

STATION

DESCRIPTION

SHANCE ACCOUNTS 13-17

157116

CIST

IF ICO EOS FAYMENT OR CREDIT

2/25/56

SPACE BOLCY FOR.

1:.12

056IG.

HEF.

но.

Кисв

DATE

IVE USE OF

•OFFICESE FINANSE

38.38

SENERAL

ACCOUNT SENDOR

LEDGER

ACCT.

NO

si!"

RECEIPT FOR FUNDS RECEIVED

AMOUNT

SIGMATURS OF O PAYEE D AGENT

71.00

ANOUNT

CODE

YR

1S8

23.92

ANANAS ONS

DANGE TISS

136100

3

601.0 61:361347

3601.06/361342

144.2

CLASS

68.70

•ос

DUE

DATC

2:551

2:555

50:125

DEBIT

CREDIT

3750

2:50

11000

78700T 101

PREPARCO DY

slide Silkents

DATE

REVIEVEO DY.

264

Đ 68.858

TOTALS.

115

SECRET 3123?3

GRCUP

4000

1t0.00

OVER

---

## Page 26

4-00000

PCS to Madrid - Per dico/miss exp

Air fare: (self & family)

HHE, POV, etc

TLA, quarters, etc

Education allowanco

$.

998.30

2,257.50

7,547.76

6,662.00

1,440.00

TDY Madrid/Paris - reentry visa

Air fare only for self & family

PCS to Has - Per diem/misc exp

Air fare (self & family)

HHE, POV, etc

TLA

$

178.82

1,394.55

10,731.97

599.34

•Operational entertainment - Madrid Nov. 65

Approved expenditure - LND - Madrid 1 July 1966

Total expenditures

Less advances received (bank deposit

$30,000;

cash $3,500)

Cash settlement to close A/C

$18,905.56

384.61

12,904.68

40.00

1,600.00

$33,834.85

33,500.00

334.85

---

## Page 27

14-00001

15 February 1978.

I6 Felor! Jai 38

MEVORINDUM FOR THE RECORD

SUBJECT:

Intorvier of Mi.

Davis Powell

on the David. Si: John Novels

a Budgot Officor on the staff of the Deputy Director

for Management and Services.

Nr. Powell is locatod

in Room 7C18..

During 1965 Nr. Powell was Chief of

Support of the then desigaated Nestern Europaan Divi-

sion.

In July 1905 a contraet was writton authorizing

salary and benafits to Mr. E. Howard Hunt for an assign-

ment under non-official cover to Nadrid, Spain.

The

purpose of this intorview was to determine if Nr. Powell

had any Information on Mr. Hunt's activities during this

period.

2.

MI. Powell responded that from his recolloction

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 Kingslay.

Mr. Poyell statos that,

in his capacity

as Chief of Support, any activity undertaken to support

Mr. Hunt's assignaent to Madrid was undertaken second

and thirdhand on receipt of instructions from Mr. Kingsley's

offico.. He further stated this he was never briefed on

the purpose of Me.

Hunt's nission and could add little in

terms of speculation.

Mr. Powell recommended that Mr.

Edward Ryan, who was

then Deputy Chief of western European

Division, ba contacted.

Ni. Powell also suggestod that

Miss Marcha Sevilly be interriewal.

Miss Savilio vas the

Executive Secretary in Western European Division during the

tine that dir. Hunt's contract was written and Miss Saville

subsaquently served in Madrid horself. Nr. Powell under-

standg

that Miss Seville is currently assigned to the

offico of the Chias, European Division.

Larrenco J. HoNe

---

## Page 28

15 February 1974

MEMORAMDUS FOR THE RECORD

SUBJECT:

Interviow of Mr.

Rogers Brooks

on the David St. John Novels

1.

At 0930 on the morning of 15 February 1974,

the undorsigned intervlowed Mr. Rogors Brooks, Chief,

Contract Personnel Division; Offico of Porsonnel.

The purpose of thig interview was to dotormine if Mr.

brooks nad any intormation not contained in the Con

tract personnel filo of Mr. E. Howard Hunt on tho

¡attor's activitios whilo à Contract Type A amployee.

2.

MT. Brooks summarized his rocollections by

saying thạt.

although it was not comnon practice it

was not entirely unusual for highly sensitive contracts

to be adainistered without the contracting officor being

mada aware of the operational objective involved.

Mr.

Grooks guated that he racalls some of the controvergy

involved in proparing the contract dealing with

the

quostion of offset and housing allowance, but he was

unable to recall any of the dotails.

It was Mr. Brooks!

suggestion thas the Office of Financo be contacted and

that their contract personnel records on Mr. Hunt be

checked for inforation.

Lawrence J. lowe

---

## Page 29

4-0000

14 Fobruary. 1971

I6 Feb, 11, Tich! 38

MENORLVDUM FOR THE RECORD

SUBJECT:

Interviow wich Mr. Raymond A. Rocca

on the David St. John Novals

1. On the morning of 14 February 1974 Messrs.

Frederick Evang and

Lawrence Howe interviewod Mr. Raymond

A. Rocca, Deputy Chief, Counter Intelligunce Operationg.

The puryose of the intorvior was to follo: up on infor-

nation

contained in Office of Security files which stated

the belief that individuals in the Counter Intolligenco

Operationg office had knowledgo of the writing acrivitios

of Mi. E. Howard Hunt.

This belief was a mattor of record

in the files of the former Security Research Staff and wag

sitributed to Mr. Paul Gaynor, now ratirod, and Mr. Edward

Sayla.

2.

During this interview Mr. Roces

was specifically

astad whather or not he had knowledge of tho existence of

any forn of official sponsorship or encouragement to Mt.

E. Howard Hunt to writo novals to inprove

tho image of

this Agency: Additionally, Mr. Rocca was asked whether

or not any assistarca was ever requasted of the Counter

Intelligence Operations offico to be provided to Mr. Hunt

or whether or not that staff had evor had any relationship

with Mr. Hunt whatsoever.

In response to these questions

Mi. Roccs rosponded "on the record! that he has no morledge

of any such arrangaments nor at any time was he party to any

assistance or any taquests for assistance to Mr. Hunt. Mr.

Rocca stated that

the particular section which he had been

nost actively concerned in the past yoars was responsible

for handiing a variety of tasks categorized under the area

of "sotting the record

straight."

In this senso,

the "image"

nission of the offica was to countor misinfornation: cur-.

rently in ¿he media or othervise believed to be part of an

effort to discredit the Agency. Mr: Rocca fauly that any

assumption that Nt. Hunt was engaged in any form of Agoncy

sponsored inags activity would have probably load to the

conclusion that it was done under the Counter Intolligence

Cperations.

• However, Mr. Rocca emphatically stated that

chis was not the

case.

---

## Page 30

3.

Mr. Rocca was thoroughly candid and cooporativo

during tho courso of this

intervier.

le was unablo to

suggest altornato means

of. attentiag to daternino if

any official Agency sponsorship of Mr. liunt did in fact

crist. Mr. Rocca did venture the opinion that he felt

that in all probability an official acquiascence on the

part of senior officials night have been involved rather

than an official sponsorship.. It vas agroed by all in

this discussion that tha nature of any informal support

given to Mr. Hunt would Do far more difficult to define

in the absence of any formalized agreenants.

Larronce J. Howe

---

## Page 31

4-00000

(

6 February 1974.

'ISMORNIDUX FOR THE RECORD

SUBJECT:

Possibla drency Sponsorsad

aVid St. Jomn Novel

• of the

The dotalls sunnarizing an interviey on 4 February

Intelligenco

tell collection see to thin a senor and

curator, Historica

addrossed to MT. Stoven

L. Kuhn dated & Fobruary 1974.

tuh sag briofed by the undorsiined on this inforsation.

during the afternoon of 5 February, 1974.

Later the sane

sitornoon, at Mr.. Kuhn's direction,

aconforence was held

vith Hossrs. Scött Bröckenridge and John Richards of th

Offica of che Inspoctor Genoral.

2:

During this conforence the speculation was entertained

chat Mr. E. Howard Hunt had,

in fact, been undor Agency

sponsorship with the knowledga of Mr. Richard Helms in his

pronaration of a sorias of spy novels under the pseudonym,

David St. John

If it cas be accepted as a roasonasla

supposition that a luat had some highly compartzented

financial arrangonent authorized by senior Agoncy officials

to write those books, then it is Ilialy that this rolation-

saip continued after Mr. Hunt officially rotired!

it is

specifically noted that ir. Hunt retired 30 April 1970.

Subsequent to tho retiremont,

a David St.

John book appearod

in print in 1971 and anothor ln 1972.

These Manuscripts

were apparently prepared during the time that ur. Hunt vas

employad by the robert R. Mullen Company:

3. Minutos fron the Office of Ganeral Counsel sako

roferences to a concorn of Senator Saxor ovet an alloged

flaancial relationship between it. Helas and Mr. Hunt

continued subsoquant to Me. Hunt's formal reuirenent.

Senator Baxer has reportedly nads roberance to a payzent

of somo thirty thousand dollars with the prrenthorical

conment that it. Holms sould not have that anount of monoy

---

## Page 32

14-00000

Is provida Mr. Munt from his privats funds.

Mr. Richards

of tho Inspactor General Siats opinioned that if cha

Agency had sponsored the St: John books, it was litoly

that Mr. Hunt had so inforned Senator Baker.

Adulag possible weight to this line of speculation

is the fact that subsequent to publishing the last St. Join

his old Agancy issued allas, Edward J. Hasilion.

suggestion is that this ariting effort was done by Mr. Hunt

froe of any fiduciary relationship with the Agency involved

in the use of the St. John pen nago.

Mr. Howard J. Osborn, Direcior of Sacurity, was

bilofad. on the above by the undarsigned in the presenco of

Mr. Kuhn on the ovening of 5 Pabruary 1974.

LayTence J. Hove

---

## Page 33

14-00000

.6 February- 1974.

e1

i A.

MEMORANDUA FOR:

Ms. Steven L.. Kuhn

SUBJECT

The David St.

John Novels

•6:3!7094

!..?

On di Pobruary; 1974, Mr. Halter Pforzholmer, Curator,!:

Iistorical: Intelligonce Collection, was interviewed by the

undersigned: concerning his knowledgo of a serios. of novels..

written by Mt. B.: Howard Hunt.:

at your raquest. in

an

This interviow was undertaken

effort. to dotermine if Mr. Hunt had

acted in any capacity in cooperation with Counter Intelligenco

Operations."Ir has previously been alleged in Office of

Security records that Mossrs. Paul Gaynor and Edward Sayla

Of. Security Rosaarch Staff, believed that Mr. Hunt. had written

novels al Agancy roquest and that this effort had been known:

to Mr. James Angleton, Chief, CI Operations. i:: 2ol1g:e4s

3. MI. Pforzholmer providad a verbal sumnary of his:

knovledge of MT. Hunt's fictional writings under the pon.:

name, David St. John.

Mr. Pforzheimer stated that when the

first st. John book, On Hazardoug 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 malling address given for

the author was checkad against a telephone crosg reference

dirsctory.: The addross on the copyright application was.

Identifled with Mr. E. Howard Hunt. Mr. Pforzheimer stated

that after making the

identification, he called Mr. Thomas

Karamessines and rolated his discovery.. Mr. Pforzheimer

recalled fron the nature

of Mr: Karamessines" reaction that

ha had uncovered a sensitive mattor of senior officat concern.

ir. Pforzheimer

Karamessines that

stated that ho then reconmended to Mr.

"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

---

## Page 34

14-00000

accopted the suggestion and Mr. Pfortzhoinar recalls that

subsequent copyright applications were submitted sithout :!

the address.

Michin five minutos of the conversation with-.

Mr. Karamessines; Mr. Pforzheimer rocalls boing called by

Mr. Richard lielas, then Deputy Diroctor of Central Intelligence.

Mr. Pforshoimer recalls the substance of the conversation as

being, "for Christ sake Walter, thls is the first book to ..

como aloar and say somothing good about the Agency."

not leave the Goddann thing alone."

3.. The undersigned asked Nr. Pforshelner, who to his

knowledgo, would be in a position to confirm or deny whether

Mr. Hunt was under any forn of Ageney sponsorship in his

writing of the David St. John novels.

Mr. Pfortsheimer replied

that he was nover officially briefod on the matter and that

only MT. tielms of MT. Karamessines could provide the answer.

Nr. Pforzheiner was then asked if other Nr. Angleton of Mi.

Rocca of Counter Intelligence Operations would have any

knowledge of

this activity. Mr. Pforzheiner replied that he

doubted it seriously.

Mr. Pforzheimer went on to rolate that he was

occasionally tasked to do research for Mr. Hunt.

He recalled

on one.

occasion being asked to resenrch the Indian religious

rites involving use of funeral pyres. Mr. Porcheimer

remembered that this theme figures significantly in Mr. Hunt's

subsequent novel Tower of Silenco

which appeared under the

St. John pen name in 1966.

Nr. Fforzheiner parenthetically

pointed out the origin of the pen nane as being the nanes of

Mr. Hunt's two sons--David and St, John.

'racing Mr. Hunt's

hat he was asslened to the Office of thements, it is hoted

for Oberations then designated, the DDP/Operations Group, in

February I965.

The first David St. John book was published

From June 1965 through September 1966, Mr. Hunt

was assigned to Madrid, Spain as a Contrsct Agent.

thrse St. John books appeared in print, the highest out-

Hir. Hunt publishud one boox under the

St. John pseudonya in 1967, and one each in the years 1968,

1969, 1971 and 1972.

Mr. Hunt officially retired as' an Agency

Staff Employee effective

30 April 1970.

---

## Page 35

14-00000

A check of Office of Sacurity records did not develop

any indication

that any of the David St. John nanuscripts wore

ever submitted for review in accordance with Agency regulations.

There is no documentary. evidence currently availablo to the

Offico of Security to elther confirm or dany possible Agercy

sponsorship of the books writton by Mr. 8. Howard Hunt under.

the pon game, David S&. John.

Lawrence J. Howe

1..

---

## Page 36

14-0000

Cops one oí one copies

JFcbruary: 1971

MENORANDUNI FOR: Mr. Kuhn

SUBJSCT: General Gaynor's Recollections

1. This date, at your instruction, I called Ges. 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:

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 actiricy Continued later, as he recalls it, in CI Staff, and

agreed with idca that the volume of writings was suíficient to indicate

that a great of time vas involved in Hunt's writing.) Gen. Gaynor advised

that he raised the issue "up front" on several occasions.. The icaction

he recieved to his raising the issue was that "leop your stinking nose out

of this business." He stated that he was lead to balieve that Mir. Helms

desired to improve the image of the intelligence.profession and the Agency

and that Huag's books were a part of the program to du so.

He stated that:

ke was never told outright that this was the case, but the responses he

recieved lead him to belice this was the case.

b. He suggested that tvo people might be able to assist in clearing

the issue, Ray Rocca and Walter Pforzheimer, both of whom were insolved

in the "image" maierials. He stated that Piorzheimer secmed to be aware

of all the details i on an up to dete básis - of liunt's departure fron the

Agercy to join the public relations firm, to the degree that Gen. Gajnor

gained the belle! that Hunt was merely moving his desk outside the building,

but being prir by the same source as before.

He also advised that he kept

Miss Ethel Mendoza fairly current on whit he was learning about Hunt's

actisities because she followed the case for him, and suggested that her

recall about what he had learned and when and what resulted, might be

bitter than his at this dates. (He also mentioned an incident in which orsc

illen while on a TDY was told by a COS to ask Headmarters to remore Hunt

from the Area because of his direct liaison with the presilont of the cuttery.

and other activities which were confourding station operitions.

Later, lie COS

toil Worse to forget chout relaying the message, wich the implication that

suri was being directed by higher authority in the agency and the COS dir aut

wish to get in to middle by comolaining. He said Morse tould probals

---

## Page 37

14-00000

c.

He also suggested thist another person--definitaly no friend of

Hunt--who might have sorne recall of have picked up information about

the book-writing maiter might be Anita Potochi of CI Staff, formerly of

Disision D. (I gather that she did not have official knowledgé, but because

ö! her dislike for Hunt, she made 'it somewhat her business to follow his

сагеет.);

Edivard F.

---

## Page 38

14-00000

Si0, 1055

203404 GOB: DAgUE DIreCTO 105 5100011

BUSSEET:

sunt Tor sicoption to rovision o:

23 15105 - Tareace 3. CLiaLuC (D)

1. Julo resoraaaun contalzo a rocontardation 10 pa-a-

Corence S. CLISILO (2) 13 a Contreos Diployee as

signad to iba jadrid arsa la Soala 1a a sensitlys enalzneat.

C2IZ44C MaS 2 CS-15, stop 7 (319,830.00 per sanual del 3a

13 balợi pald at tho sano ata 1a bia prosant contract

•Bl3 contract covides that ba will by eaiaslad to

a liong quarara allomaco in coniomanca vies regulations

oi ina argentallon abollesola to lis aprolazal Derrorael.

ro basic latina quasters allonares for Clags II

Dilcóns 1n Hadrid 19 53,900 Der чaдu..

Tio bouse maica

MAS TOCa,

1255 13 MOvenGa 1S00, 133 2n 272134 г2nT 0I 35,J00. DI

therazon,

31,009.00 795 992- 0992 é5a 150

Barcent larixua allored

sador the pronton oire re 1310a.

Ca a 75/25 percans

carlas seais of tao 50 coment over the quarders alioreaco,

Bo Tould 3a sui o1 cocket 33,395:00.

4. Duo to the obarational senalesuity of callao's

asolament, ils request formiia? on big consing costa mas

2a=dl2d b7

1e. Thomas daresstae, SOD": En 15 Septeacer

ir. tantosglaos, donD, aubrored his being salabursed

Thas autor atlan tag decladed 1a alatter to edadie Eros

3ro pasausaatnog. It 13 Foquestisi Elat

aa Caputy Disectos

---

## Page 39

14-00000

tho 75/25 parcent scarlag ua tha areesa

ailomolo nata uy to su farcert sbove bis quartera alloraaca.

151

AC*195 910I

gestara duropo Distaion

Potercendazion La peregrapo 4

is autborized:

Cicales N. Da7f3

su Deputy Director for stosort

9 H0Y 1355

Dato

2DP/T3/S3:Da7is3.Ponell/aJ/5189 (SÑoyS5)

Distribution:

Origi

2-

SSA-DD/S

C2.75/SS

173710

1S/PT

- 13/5

---

## Page 40

20B Y3818

'":

ATT

Chiel, wastera Surco, E71aioa

.Sport Stare

Concenyntia and Tas Dirisiço

13 Cotoco= 1955

Mander 179680

I.: To data tiars 19 n0 r9o0rd of racelpt of Foras 764,

Futy Statua Report, for Terenca S. CRASIaC slica big 50D

4 unly 1965. Tresa reports eng requiland in order to maintain

¿is leave cecorat in cecordacos ulia tea taras of paragrapi

ófe) de has contriet eod to propluda action to vithhola pay in

ascordance vito requiresenta of tha refarensed beadocas.

It 10 requastad that tols of lco le sarised so to

the reason for the dalay la the suoniasion o? these ruby Status

Roports.

10:

JERUSION:

LUCILS F. FUCCEOD

this?,

rentrset Baologey Acconals Sactico

Jent Patroll Franch

Salae 32 8a. and daa Division

БІлЛаСЭ

Lucila F. Ingocd:

Chlor of Sapport, is Diziaion

Dor conversation

with ir. Cosas Jaspesaideg,

on Terenca S. CRABaNiC:

Tata scoula do usai as the authority. i

¿o conting big peg jiesout these tojoris.

Dayig S.

303917

Cales

OP SupPort

13 D:ISIO

510d 1855

Sit 51 1

SEBRE

---

## Page 41

14-0000

3 Gaptericar 1955

MOTORLDL FOR: Chief, Contract Pergonael Divisios

SUBJECT

Geberal /- Testenca S. CRABAiIC - Supplesent

Specifie - Paragraph Eotitled "Offsst.

REFERENCE.

¿A. OGC Oplalon 65-2476a, dated 12 August 2955

Be Our Nego, dated 8 July 1965, Save Subject

1. This office bereia recommendo an anuerdrent to CRABANACIS

Supplerant dated 4 July 1955, to delete paragrapa 7. entlulcd "Ggfaat."

2.. Inls office aciaorledges the OCC opiuion, Reierence A, tbici

determiced CRARNC my retalo without Agency salary offset any Puture

royalties eased as a result of bis literary efforts based on the fact

cover dosa not include role of a wrizer.

As Subject's cover "activities" fave been ofPicially clarified

an balog only a ligat ord o? a ratired foreiga Service Officer for

walch the Ageacy will be caslas all entitlesent parenta and accolly

be will receiva no funda frod any coves, tais paragrapa, which la sisleadloz,

has no regalag in Subject's contrict and it is beredy reconcerded that

" Furtser, in future cases when a cover is so light that Susject

will not be recelylos Puada fron corer it 1a recoarended ticat no "Oreset"

paragrapa ba included in Supplacenta or Coatracta.

Attich=ent

Per. A and B

is coilin

HILLIN R. CULEN

Chict, Covert Clalas Braaca

Me Bitee

Arlen En

---

## Page 42

4-00000

OCC 65-24763

¿PAUS 1835

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 carned by Terence S.

CRABANAC as a result of his literary eloris. We believe that he is

entitled to retain such royalties withou. an offset against his Agency

salary.

We have been advised by Mi. Gee 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 ons of a retired Foreign Servica

Officer. Therefore, paragraph? 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 activitios."

Homan D. Block

NORMAN D. BLOCK

Office of General Counsel

cc: Chief, Covert Claims Branch

Mr. Gone Stevens, WE/Support

---

## Page 43

14-00001

3. AUộ 1957

MEMORANDUM FOR:

Ofiles of General Counsel

ATIENTION

SUBJECT

Norma Bloci

Torence S. Crabaiac -

Reteatioa of Royalties by

a Coniract Employes

1. Referonce la mado to the telaptiona conversation

of 25 July 1965 between yourself and Rogers C. Brooks of

this Orico wherein badigrond information relatiaz to tas

absigament of TerenceS. Crabasac las diacussed.

Subject will'apparently dovelop a cover as a lilies.

a flold wndrels he has an already demonstrated talent baged

upon several publications. The objective of the cover la to pro-

vide a basis of attribution for some of his iacome: di the tire

of the preparation of Mr. Crabasac', contract, the specific

detail of his cover was uninown.

3.

Request your opinion is regard to the retention of

possible royalties earned by Crabanac as a resuit of bi

lierary efforta or whether such income should be properly

offsat.

Joseph 3. Bagan

Chief, Contract Peronanal Division

Attahments.

OPICPD: RCBrOOkS/cs: 2 August 1 905

Dist=ibution:

Orig &

l'-- Aédressce

-- CPD

---

## Page 44

14-00000

4702y65

dir. Ierence S. Crabanac.

Dear Air. Crabanac:

The United Stated Governaani, as represented by dia Contractiag

Ossicor, hareby contacts ith you as a Contraci emplojee fos tid 138

al your services and the periorance of dutica of a confidential sature

wader ths followay terras dad conditions:

1. Compensadon. In full consideration for ine usa of your jardcas

and the performance of soccilled confidantial dulles you will be compen-

sated in an asount calculated at the rate oi $19, 930 per azaum. In addicion,

you are herein authorizad logislative salary adjustments, misbio-grada

promotiona and, li applicabla, a post difierential la substatial coniorancs

with rules and regulations applicable to Government appoinied employees.

Payments will be made as requeated by you in writing la an approved man-

Taxes will be wichheld therefrom and submitted by this organization.

2.

Allowances.

You will be entitlad to: (al Livig quarters allow-

ances in coniormance with regulizion of this orgasisition applicadla to

is appointed personne!. In the event you are furnished quarters by the

Goverimant you will not be entitled to the living quartera allowances bereir

iadicated.

(U) Coas-of-liviaz allowances

in contormance with applicable regulatioos of thia organisarion lacladiaz.

but not linicad to, a posi allouancé, a tranaler allowauce zad a home se.-

vice transier allowance.

3: Iraval.

You will ba advaaced or reimburaed funds for travel

and transportation expenses for you, your dependenta, your bousabold

eifects and your peraocal automovile to and from your permaneni post

aí assigment, and for you'alone ior authorized operational travel. Is

saditios, you will be enculed to storage of suca household and passocal

ellets as are not shipped, in conformance with applicabla Cové=araan:

regulatioas:

You may be entitled to per diem in leu of subaisieace in

the course of all travel pezio.raed bergunder and, thea autorizad, fo=

you alona while on taraporary duly airy from your permanea: pos: of

assigninent. All travel, irasporialion aad per diam provided io= undes

sais paragraod must be proparly autorized, and expeasas incurred here-

muor are subjeci to paymeni and ascouring in conglace wis applicabla

Core-areat segulations.

. Orarational Bx2a1333. You will be gdanced or reimbased funda

So= necassary Oparlional espensed incliding, dut noi limbiodso, eateriala-

mani and lis purchade ol information, so sgectically aggrovel by the Cov-.

eraniani, Such lada Gill De subjai: lo gaymaziard accounding in corial-

anco will agalicable Coveinmori regritions.

5. E:cade

---

## Page 45

14-00000

ó.

Benails, find You :Ill be critléd to death aud disastlicy benefits

equal to tone autorlied under tho ¿ederal Employees' Congensatios acto

23 amended. China by you, jour beiro, or legal reproganatives under

Chio paragraph vil be procesued by this organization in accordarice did 1t3:

procedures in sucis manser as not to Impair security.

(b) Y0: will be enticed to the continuance of pay and

allowances in a manne: similar to that act forth in the Missing Persons

Act (50 U.S. G.A.. App. 1001-1015).

(c) You will be entitled to sick, annual and home leavg

(including travel exocases incident thereto) equal to and subjact to the same

rules and regulations applicable to Goverrmeni appointad employees.

Annual leave may only be tarei at times and places approved la advasce by

appropriato Covernment repreventativea. All accrusd but unused leave

credited to your lorme: account as aa appuiaiod employes of this organiza-

tion will be traasferred to the leave accoun: establithed for you hereunder.

(3) As a Government employee under contract consested

from stall statua without a break in serrice, it is required that you continue

to make contributions to tia Cisil Service Retirement Fund. Such contri.

buziona (oresently six and ons/hall per cent (6-1/273)) will be daducted oy

ina Government from tha basic compeasation due you hereunder, i.c.,

presently $19,880 per arnun.

(e) You are hercin althorized to apply for encolisent

in a health insuraace program for certain selected Contract Employees oi

sis organization, gibject to all she terma and conditiony of that program.

If acceptad, this organization is presently authorized to bear a portion of

tha premium cost, you will oar the remainder.

Your financial contribution

will be effected either by payroll ceduction or by direct remittance at

periodic intervals to be established by this osganization.

(1): 11) This organization is authorized to pay the cost

of necessary hospitalization and related travel expenses for illness os injury

iscuired by a United Sitas citizen full-iime Contract Employee in La liza

of dusy whils abroad.

(2) This organization say pay certin nacessary.

costs of hospitalizacion and ralited travai expenses for illness or injuay.

incurred by tha dependents of a United States citizer full-time Contract

Employee permanenily assigned abroad, chile they are located abroad.

I: is understood and agreed thai tha eligibility ard exteni of ta participation

by you and your dependento in the above dedical programa sill be la co.-

¡ormando via the ruley, regulationg and policiea of tils organizatio: ia

cóface ai the time an iilress o= lijury is incurred, tai all chima will De

submitted only to this organisation and that adjudication of such chims by

this organization siall be final and conclosive.

trough your cover actirtigadie lug grosay oí the J. S. Govarilton:.

Procodurally, ouch enolatonte til be disgi agrindiardants dos yous

undor mis agreomon: and ard actorlodied to bo pajriont be dis Ciuvara-

---

## Page 46

14-00000

3. Eyes loa of Dagumonia. le dueha deloreanca ds services under

this contraci, you abbunio fia custody of Coveramant inads or Late di:le

oi racord to property of any raturo whatsoever and herever diluzia, which

property has la face beon purchased with nioniad o! tha. U.S. Goveraren:,

you harry recogaice and achno udge the existence of a trust ralaconsaig,

citie: copress or contractine, and you agree to execute inatever dosu-

menis muy be coquirai by tre. Governmen: to evidence this sclationaiis.

9. Secrecy. You will be required to leey forever secret tia contract

and all tajormation shich you may obtain by reasoa hereof (icless releaded

La writing by the Goverament from aucis obligationt, with iull inovladza tril

violation of such secrecy may subjaci you lo criminal grosecuion under this

Esplorag= Luis, dated 25 June 1918, as amended, and other applicaole lai

and regulions..

10. Instructions. Instructions raceived by you from the Governmeat

in briefiag, traizing or omarwisa are a past oi this contact and ara incor-

porated herein, provided that such insiructiona are not inconsistent trea

the terma hereof.

11. Urauisorized Commitments. No promises or commisenti per -

mining to righis, privileges or benafita other than those expresaly stipulates

in writing in this agreement of any amendment tharato siall be binding on

the Government.

Tera:

This contract is ellective as of _4 July 1965, and shall

continue thercaiier for a period of tro (2) years uniess sooner termicated:

1a) Upon sixty (60) days' acial potica by either party bereto, or

(b) Upon acival notice to you in the event the results of an initially

required medical amisation are determided by tis organization

to be ungatislactory.. os

(e) Without prior aotice by tha Government, in the eveni of a

breach of this contract by your violation oi the security provisions

hersol or by your obberige rendering yoursal usavailable. for

acceptable service.

Subjaci to das availability ol appropriationg, this agreemest may be extendad

upon cotice fron te Coverament.

In the evant of voluntry termiration on

your pari or termination for causa by the Covercecal prior to tas expiration

oi this agreament or any reneival thereof, you will not be entitled to resira

travel expenses to the baited Salias.

Termization of this agreement wil!

ru: release you from die obligationa oi any security 03d you may ba requised

UNITED STATES COYSRAMENT

DHL

Contracsing Griser

ACCEPTED:

151

1.51

151.

---