MEMORANDUM FOR THE RECORD
Originator: CIA
Document date: 08/29/1974
Document type: PAPER, TEXTUAL DOCUMENT

## Page 1

157-10011-10122

2022 RELEASE UNDER THE PRESIDENT JOHN F. KENNEDY ASSASSINATION RECORDS ACT OF 1992

Date:10/07/93

Page: 1

JFK ASSASSINATION SYSTEM

IDENTIFICATION FORM

AGENCY INFORMATION

AGENCY : SSCIA

RECORD NUMBER : 157-10011-10122

RECORDS SERIES :

AGENCY FILE NUMBER :

DOCUMENT INFORMATION

ORIGINATOR : CIA

FROM :

тО •

TITLE :

MEMORANDUM FOR THE RECORD

DATE : 08/29/74

PAGES : 5

SUBJECTS :

WILEY, CHARLES W.

TERMINATION OF

WILEY, CHARLES W.

VASALY, LOUIS; DEMPSEY, JOHN (RESEARCH BRANCH)

DOCUMENT TYPE : PAPER, TEXTUAL DOCUMENT

CLASSIFICATION • S

RESTRICTIONS : REFERRED

CURRENT STATUS : P

DATE OF LAST REVIEW : 09/29/93

OPENING CRITERIA :

[R]

COMMENTS :

SSCI Box 221, Folder 10

[R] - ITEM IS RESTRICTED

NN 30953

DoOld: 32203890

Page 1

---

## Page 2

ÖLUNLI

london to

2.÷11

R529

Record Number 15-10011-10122

29 August 1974

MEMORANDUM FOR THE RECORD

SUBJECT:

Charles W. Wiley

Summary of Termination

#343 589

#127 958

1. During

the course of the reorganization of the

Office of Security, it was decided that the Security

Research Staff would be abolished. This decision led to

the preparation of a memorandum for the Director of Security

from the Chief

"Request for Director be security Assessment Regarding

dated 1 June 1973, captioned,

Continuance of Functions and Possible Replacement."

The

last paragraph of this memorandum stated:

"For immediate planning purposes, to fulfill

the early deadline already established, it would

be appreciated

if you would review the

attached

cutiines of existing functions and indicate your

desires regarding the function (continue, continue

with low priority, discontinue) and where you wish

any retained functions to be placed in the reorgani-

zation structure.

In the latter instance, I have

attempted to indicate the more likely options for

this to facilitate your assessment."

2.

On 4 June 1973, the Director of Security indicated

that

"Special

Access Source," Charles Wiley, should continue

on a low priority and be transferred to the

Operational

Support Branch.

3. Shortly after the implementation of the reorganiza-

Ion on 1 August 1973, John Dempsey, Chief, Research

Branch,

verbally discussed and

reviewed with

Edwal Jones, Chief,

Clearance Division, the disposition of certain SRS functions

RECEP FROM

SEP 30 1975

CIA

EZ IMPDET

CL BY 062258

SECRET

jam and a i leas

NH 50955 DocId: 32203890 Page 2

---

## Page 3

still in the possession of the Research Branch, but

recommended and approved for transfer to other

components

of the Office of Security.

Among those items discussed

was "Special Access Source," Charles Wiley. Messrs. Jones

and Dempsey agreed that Wiley was

not worth the money spent,

performed little or no useful service for the Office of

Security and, in fact, had done little or nothing to justify

his keep.

It was further agreed that Mr. Jones would

discuss

Wiley and make known to the Deputy Director of Security (PSI),

Stanton Ense, the agreed

assessment of Wiley.

4.

Mr. Jones next informed Mr. Dempsey that a memorandum

should be prepared

reviewing the Wiley case, making recommenda-

tions as to disposition.

A memorandum was

then prepared by

Louis Vasaly of the Research Branch, dated 18 September 1973,

which recalled the history of Wiley's association with ths

Office of Security with a recommendation for termination.

Mr. Dempsey recom-

mended 30 June 1974; Mr.

Jones, 1 February 1974. The Deputy

Director of Security (PSI) agreed with the latter termination

date.

on is letober 1973, Louis Vasaly and John jempsey,

both of the Research Branch,

met Wiley at the Key Bridge

Marriott Motel, Arlington, Virginia, to effect his termina-

tion.

Wiley was most unhappy with the proceeding although

claimins to understand that budget problems and curtailment

of domestic activities

led to his separation.

He acknowledged

that written notice of his termination by his signature;

however, he appended that the notice was "signed with the

reservation that the terms will be appealed," and stating he

would seek redress either with the Director of Central

Intelligence of contacts on Capitol Hill.

6. Wiley was contacted twice more on 6 November 1973

and on 12 February 1974, both times in New York City, by

Sidney Stembridge, Deputy Director of Security, (P&M)

Louis Vasaly.

the former meeting, Mr. Stembridge politely

explained to Wiley that CIA is no longer engaged in matters

in which he had been assisting and that there

no further need for his

services. Mr. Stembridge

was' indicated

therefore,.

that the Office of Security might be able to assist financially

in a limited sense beyond

the 31 January termination date, but

that would be the limit of any help.

MECCIVI FROM

SEP 30 1913

CIA

- 2 -

SECRET

AN 50933 Doold: 32203890 Page 3

---

## Page 4

On the latter occasion, Mr. Stembridge informed

Wiley that he had been

awarded a termination bonus of $4,000,

which figure, in

essence, represented his salary carried

forward from

31 January

through 30 June 1974.

Wiley promptly

rejected this offer,

again expressing dissatisfaction with his

termination.

specifically asked that he be reimbursed for

the deficit

in his so-called Saroyan Fund. He also asked that

the Agency find him

a job or bear the expenses of him returning

to college for a post-graduate degree, which would

enable him

to find

a position in the academic world.

He contended that

the Agency should pay not only his tuition, but a stipend for

a living expense.

Mr. Stembridge concluded the interview by reminding

Wiley that his termination was effective,

and the previously

executed Secrecy Agreement was in force.

Mr. Stembridge also

informed Wiley that he would be available for additional

assistance should Wiley so require. However, it was definitely

made clear that the next move

was to come from Wiley.

9. Shortly atter this rejection, Mr. Kane, the Director

Socurity, asked the Posearch Urench to propare en anal sis

of Wiley's

so-called Saroyan Fund. This analysis was completed

by 19 April 1974 by Louis Vasaly, who concluded that Wiley did

not appear to have any legal

or moral claims to reimbursement

for the Saroyan Fund deficit.

The fund, according to Vasaly,

an accounting exercise which had never been accepted by

previous case officers as legal, binding, payable, or

claimable.

The items in the fund included all expenses incurred

by Wiley in the production of income plus payments received for

whatever services he performed in the acquisition of outside

income.

10. Dempsey reviewed the Wiley file and arrived at the

same conclusion

as Mr. Vasaly.

Specifically, Dempsey saw no

evidence to indicate an intention on the part of the Agency to

reimburse Wiley for expenses as listed in the Saroyan Fund.

Likewise, there was no evidence

to indicate an intention on

the part of the Agency to offset Wiley's Agency salary by those

items of outside income.

" FROM

3-

SEP 30 1975

CIA

SECRET

AN 50933 Doold: 32203890 Page 1

---

## Page 5

11. On 9 April 1974, Wiley met Louis Vasaly and turned

over the last statement of the cover fund accounting. Wiley's

claim amounted to $7,475.01.

12.

The Office of Security, recognizing that this claim

could not be paid as structured, contacted the Office of

Personnel to determine whether or not Wiley could be paid

termination settlement and, if so, in what amount. Although

HR 20-32 does not apply to

independent contractors, the Office

of Personnel concluded that, under existing Agency regulation

and using HR 20-32 as a guide, Wiley could be paid a maximum

termination of $9,500. The recommendation was then made to

the DD/M&S to approve

payment to Wiley in the amount of $8,000,

an amount somewhat in excess of his so-called Saroyan Fund

deficit.

13.

On 24 June 1974, Messrs. Stembridge and Dempsey :

contacted Wiley in New York City and attempted to effect

termination settlement. Mi. Wiley promptly rejected

the $8,000

oitering, contending that it was reimbursement for his cover

a mere $500 termination bonus.

here 850b

Messrs.

Stombridge and Dompoey explained corin to Wiley this Agency

not recognize the Saroyan tund,

therefore,

could not pay

bonus sna 00 bonus offering was just that-ra

no more.

Wiley was not satisfied with

this explanation and claimed that all he wanted at this point

was reimbursement for his Saroyan Fund deficit.

Stembridge and

Dempsey told Wiley they would be back in touch with him in a

couple of weeks.

14. Mr. Kane, the Director of Security, in attempt to

resolve this matter, called upon the assistance of the Office

of Finance to conduct an objective study into Wiley's claim.

The Office of Finance, after a complete audit,

based

upon a complete examination of all papers in the file, concluded

that Wiley could be reimbursed for direct cover expenses and

foreign travel up

to a total amount of some $20,054.23. The

Office of Finance's conclusions were formulated

into memoranda

for the DD/MES

and the Director of Central Intelligence in

August of 1974, recommending approval to pay Wiley $24,429.23.

which payment consisted of $20,054.23 in reimbursable

expenses;

$4,375 in termination bonus. This recommendation was approved

REGEIVED FROM

SEP 30 1975

CIA

- 4 =

SECRET.

NH 50955 DocId: 32203890

Page 5

---

## Page 6

Scunci

by the DD/M&S and forwarded to the Director of Central

Intelligence

the termination offer.

on 10 August, questioned the amount of

He felt

full reimbursement was not

particularly advantageous to either this Agency or Wiley.

He approved a payment of $12,000, consisting of $8,000 in

allowable expenses and a

$4,000 termination bonus.

15. Mr. Colby instructed Mr. Kane to prepare a letter

for his signature explaining to Wiley that this Agency had

thoroughly examined Wiley's claim and could not honor it as

However, certain operational expenses in the

amount of $8,000 plus a $4,000 termination bonus could be

This letter would be given to Wiley at the next

meeting with Office of Security representatives, and Wiley

should be told this is the maximum settlement he can be

given under CIA's rules and regulations.

16.

On 28 August 1974, Messrs. Stembridge and Dempsey

met with Wiley in New York

City. Wiley was given the DCI's

letter and read the Quit Claim.

Upon reading both, he promptly

acconto? the tormination vifet

and soned.

waley mes told

should anything arise which might need clarification, he should

contact Dempsey.

REGEIVED

FROM

SEP 30 1975

CIA

SECRET

NW 50955

DooId: 32203890

Page 6

---