## Page 1

72-350 (Rev. 11-11-75)

(Mount Clipping in Space Below)

First FBI official pleads

guilty of corruption

By MARGARET GENTRT.

The Dunphy case marked the

•WASHINGTON (AP) - An

firsterimmal charge to energe

FBI section chief is awaiting

from the financial corruption

sentencing after becoming

the

probe that began last spring,

first bureau official in history

and there were signs that the

to plead guilty to a criminal

other major department inves-

charge of corruption.

tigation of FBI misconduct also

John P. Dunphy entered the

was moving toward criminal

guilty plea Friday as part of an

charges.

agreement with Justice Depart-

It was disclosed Friday that

ment prosecutors involved in a

the department has granted im-

broad probe of alleged financial

munity

from

prosecution to

corruption and other abuses of

power within the FBI. Dunphy

Tored to testican aye

agreed to testify against

was fired from

the

bureau

leagues involved in burglaries.

Thursday.

Assistant Atty. Gen. J. Sten~.

Department spokesman Rob

hey Pottinger, through a spoke

ert Havel declined to discuss

other terms

of the plea

bar-

gain. Normally, plea bargain-

ing involves an agreement by

the defendant to testify against

others involved in

wrongdoing

in exclange for being charged

with a lesser crime.

Dunphy, who was paid $37,800

a year by the bureau, confessed

to stealing about $100 worth of

lumber

and

other materials

frpm

the FBI.

The specific

charge was converting govern-

ment property to his own use.

He faces up to one year in pris-

on and a $1,000 fine.

Havel said Dunphy is be

leved to be the first bureau cr.-

ticial in FBI history to be cont-

victed of a criminal charse

stemming from his job.

A 28-year FBI veteran, Dun-

phy for the past several years

has been chief of the exhibits

section, which builds

displavs

for the public tour of the FBI

building.

The unit also con-

structs scale models of crime

scenes and builds

other dis-

plays for use in court trials.

An FBI spokesman said Dun-

phy's "resignation was request-

ed Thursday and accepted as a

racult of en internal FBI inves-

tigation."

of authorizing immunity

some agents."

Department

confirmed

sources prove

directly involves at least 30

agents or officials and in-

directly involves dozens more.

FBI Director Clarence M.

Kelley has said many agents

and officials fear they may be

indicted or disciplined as a re-

sult of the probe.

Department

officials

have

tentatively decided to seek in-

dictments against some FBI

men for violating the civil

rights of American citizens by

breaking into their homes or of-

fices, sources say.

The FBi acknowledged last

hundreds of

year that agerts committed 1 7-1.760

so-called

jobs" against political militants

during the 1960s. Kelley said a

year ago the practice ended in

1966, but he was forced to cor-

rect the statement

after dis-

covering that burglaries contin-

ued at least through April 1973.

Kelley has said others in the

FBI lied to him about the ex-

tent of the burglaries

but he

hasn't yet discovered

who des

ceived hims

Sent Burian

1176

(Indicate page, name of

newspaper, city and state.)

PAGE SEVEN

SUNDAY NEWS

- BOGALUSA, LA.

Date: 8-15-76

Edition:

Author M. GENTRI

Editor:

Title: FIRST FBI

OFFICIAL PLEADS OF

CORRUPTION

Character: /2

or

Classification:

Submitting Office: N. 0.

] Being Investigated

1oir.023

SEARCRED_

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EBI-NEW ORLEANS

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## Page 2

rD-SOU INeV. 11-11-101

-

(Mount Clipping in Space Below)

= Mr. Kelley on the Spot

To say that FBI director Clar- ability in our law enforcement

ence M. Kelley stumbled into an

agency can be restored. As a step in

embarrassing situation this week

the proper direction, Mr. Kelley is

would be putting it mildly. Revela- launching a major review of policies

tion that his agency has been con-

involving informers - informers

ducting domestic burglaries as re-

who commit the crimes, including

cently as a month ago places Mr.

burglaries, to gather information

Kelley on the proverbial "spot."

and sell it to the FBI. The FBI cur-

Last year the FBI chief declared

rently spends about $3.5 million on

glaries since 1969. Acting quickly to

this week. Mr. Kelley asserted that

the erroneous statement was the re

overshadowed by the realization

tha' the chain of command at the

The bureau director's first order

FB: still needs overhauling.

of business should be directed at

Clearly, Mr. Kelley needs to har-

making sure the head is aware cf

ness his underlings so that believ. what the tail is doing.

chart Kean Sulte

(Indicate page, name ol

newspaper, city and state.

— SECTION ONE

PAGE TEN

TIMES- PICAYUNE

NEW ORLEANS, LA.

Date: 8-17-76

Edition:MORNING

Author: ED TUNSTALL

Title: MR. KELLEY ON

THE SPOT

Character: 66

or

Classification:

Submitting Office: N. 0.

C Being Investigated

1060-2230-35

SERIAL DED C PED

226 23 1976

0932

litely stink

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## Page 3

FD-350 (Rev. 11-11-75)

(Mount Clipping in Space Below)

Support for FBt

The Federal Bureau of Investigation has

veen taking some lumps lately. The agency

s accused of making illegal entries, o

burglaries. There also have been charges

that some recreational funds were misused

for parties and the like.

The burglaries, of course, occurred during

investigations and were not made to obtain

loot for the FBI agents. Whether the entries

were justified is yet to be seen, but anyway,

FBI Director. Clarence Kelley has clamped

down. It is to be assumed that funds such as

those set aside for recreation will be more

judiciously used in the future.

Director Kelley said in a recent pres

conference: "Regrettably, the good that the

fBl has accomplished, its contribution to

yanquility in our nation, has been ovel

looked or forgotten amid the critical

headlines of today."

Well, those who are critical of the FBI

were probably prompted to do so because

the FBI had been far above criticism for so

long. It's the old story of the cabbage and

the rose. Nobody

thinks much

about

seeing a cabbage in the gutter, but no

body likes to see a rose there and

when one is found there, people talk about

sit. If there had been a constant stream of

criticism of the FBI, as there has been of

any public bodies, then nobody would

much about

nedicate page, and state.

newspaper,

SECTION A

PAGE FOUR

SHREVEPORT

JOURNAL

SHREVEPORT, LA.

Date: 8-23-76

Edition:

Author:

Editor: S. TINER

SUPPORT FOR

FBI

Character:

late

or

Classification:

Submitting Office: N.O.

Being Investigated

6010-2238.310

SEARCHED.

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SERIALIZED_

AUG2 7 1976

FBI - NEW ORLEANS

Sent Bureau -

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## Page 4

The FBI is one of the best rum of any

federal agency and is one of the best law en-

forcement agencies in the world. It came in-

to being in the turbulent 1920s when most of

the gangsters about whom we see movies to-

day were alive and active. Crime fighting

methods developed by the FBI and the train.

ing it gave to its own agents and to state

and local lawmen did much to stem the ad-

vance of organized crime. Of course or

ganized crime still exists. It has become

more sophisticated as technology has im-

roved in all lines. But where would we b

vithout the expertise of the FBI?

We believe that the current charges

against the FBI involve only a small percen-

tage of the many, many fine agents and it

may come out that the indiscretions were

merely bad judgment. At any rate, Director

Kelley appears to have the situation in hand.

A The is a bur sange rime god

Cungress and the people will continue to give

the agency the support it deserves.

FB;

CONGRESSIONAL

OVER-REACTION

•TO PAST ABUSES

FIGHT

CEHHK

A6AINST

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## Page 5

FD-350 (Rev. 11-11-75)

(Mount Clipping in Space Below)

Ex-FBI Official

OK'd Break-Ins;

'I'd Do It Again'

WASHINGTON (AP) - A former

high-ranking FBI official confirmed Sun-

day that he approved two FBI break-ins

in 1972 but insisted that "I think this is

justified and I'd do it again tomorrow."

W. Mark Felt, former associate direc

tor of the bureau, said he ordered FBI

agents to burglarize the Weather Under-

ground in New York and the Palestine

Liberation Organization in Dallas

the basis of what I knew and what I felt

(acting FBI director L. Patrick Gray)

wanted me to do."

Interviewed on the CBS News program

"Face the Nation," Felt acknöwledged

that the break-in against the Weather

Underground, a domestic organization,

was not sanctioned by law but contended

it was "extra-legal," not "illegal."

He added that if he is indicted for his.

role in the break-in his defenseei

that" the national security of the country

is paramount."

The Justice Department is considering

possible criminal charges arising from

FBI burglaries committed against

domestic political groups during the past

five years. Felt apparently would not be

liable for prosecution arising from the

PLO break-in since it was not directed

against U.S. citizens.

Felt defended the break-in against the

Weather Underground, saying that

organization has claimed responsibility

for "hundreds of bombings.

explosions in the Pentagon and U.S.

Capitol. He displayed a Weather Under-

round publication entitled Osawatom

which he said was printed in Cuba an

smuggled into this country through New

Asked if he expected to be indicted,

Felt said "I think they have to have a

Indicate page, name o

newspaper, city and state.

—SEC 3 PAGE 16

TIMES PICAYUNE

_NEW ORLEANS, LA.

Date:

EditioR:- 30-76

Author:

EditorED TUNSTALI

Title:

EX-FBI OFFICIAL

OK'D BREAK-INS

Charactet' D DO IT AGAIN"

Classification: 66-26521

Submitting Office:

N.0.

Being Investigated

60-8938.217

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FBI - NEW ORLEANS

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## Page 6

FD-350 (Rev. 11-11-75)

(Mount Clipping in Space Below)

Kelley 'Can't Remember'

If He Requested Break-in

WASHINGTON (AP) - FBI Director

November of 1960 while head of the Bir-

Clarence M. Kelley said Thursday he

mingham FBI office.

does not remember if he requested

thorization for a break-in by bureau

agents while he was in charge of the

FBI's Birmingham, Ala., field office in

the late 1954s.

A spokesman for Kelley said the direc-

tor could neither confirm nor deny a

Washington Star report. that he had

asked FBI headquarters in Washington

to approve a break-in more than 16

years ago. He quoted Kelley as saying:

*If I did have a recollection. I would

have no hesitancy in admitting it."

The Star reported Thursday that a for-

mer top official of the FBI said Kelley

Toquested approval for a break-in some-

time between December of 1957 and.

Indicate page, name o

newspaper, city and state.

—SEC. 1 PAGE 10

—TIMES PICAYUNE

_ NEW ORLEANS, LA.

Kelley's spokesman said Thursday

that field agents assumed break-ins were

proper technique during the period they

were being used because the authoriza-

tion came from J. Edgar Hoover, then

head of the bureau. He said agents as-

sumed Hoover acted at the direction of

• the attorney general or the President.

The Senate Intelligence Committee

concluded in its report on the FBI that

there was no indication that any attor.

Dey general ever was informed by Hoov-

er or other FBI personnel of the break-

sent to

Batt: 8-27-76

Author:

ditc

itle: ED TUNSTAL

KELLEY "CAN'T

REMEMBER IF HE

Chara BEQUESTED BREAK-

Classification:

Submitting Office:

N.0.

[ Being Investigated.

SCA

SERIAL.Z

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Donatia.

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## Page 7

FD-350 (Rev. 11-11-75)

(Mount Clipping in Space Below)

Russell Baker

Government burglary

shows wastefulness

NEW YORK - Reading about the

Thus, by roundabout path we arrive at

tax retorm, that blessing to which every

government's burglary squads, one is

tatesman is committed. Jimmy Carter

dismayed at how wastefully they were

hreatens, if elected, to bring us tax re-

used. Here is a government billions and

form in a year or two. Worse, Congress

billions of dollars in debt. Its assets, is now writing a tax bill which threatens

however, include some of the nation's

to bring it about immediately. This ver-

most skillful burglars, highly advanced

sion, they will say, will reform the

equipment for breaking and entering,

and the will to put both to work.

norrors created the last time Congress

gave us tax reform.

Logically, we might expect the federal

burglars to come out the window with

The words "tax reform" send chills

truckloads of swag to invigorate a debili- clown the spine of every sentient Ameri-

: tated treasury. But we're not dealing in

can because each new reform deepens

logic. We're dealing in government. And

the nightmare of income tax law. Just

so, all we get is some microfilm snapped

when you have got a purchase on this

at the scene of the job by the CIA boys

monster, Congress reforms it and evely-

and the minutes of the last meeting o

body has to start all over again. It has

the Downtown Trotzky Athletic Club-and become a complexity to confound:

Revolution Society-Pilched by the FBI.

Dickens lawyer, a maze to make King

What a thin return on the tax dollar. Minos's labyrinth look like a playpen

Al right, maybe snapshots and minutes

are valuable to the security police, who

conduct these operations for national se-

curity. Still, the treasury needs money,

too, just as desperately as the police

need documents, and it is galling to re-

flect that these light-footed payrollers,

having broken in to steal papers, are too

delicate to pause on their way out and

pick up some cash, a few stones, a TV

set, or at least a typewriter, for the

treasury.

The conscientious citizen would have to

evote every waking hour to its studs if

he wanted to make a reasonably close

guess at what he owes his government

each April.

Even then, he would probably be

wrong. Last year a test of Internal Reve-

nue's workers — the people who help the

desperate fill out their forms - showed

that the majority even of these "experts"

didn't know what the law meant. So now,

This is probably because federal bur-

anless supernatural providence inter-

glary executives have failed to point out

venes; it is all going to be changed again.

that cash and other negotiables are even

I should like to propose a sensible?

more vital to national security than

reform. Burglary. The government i

snapshots. It is all very well to know

should repeal the present tax law for two

what hellishness is being hatched in dark

or three years and see what its existing

rooms, but as every defense contractor

burglary teams can bring in by way of

knows, the government has to put up

revenue.

money if anything is to be done about it.

Do not misunderstand. This is no

There ís no persuasive argument

squeamish

complaint about the ugt

against this elegantly simple reform.

necessities of national security. To the

Consider:

contrary, it is a tough, hard-nosed pleg

It would increase government efficien

for good, old fashioned horse sense. If we

dy by telling underworked federal bur

are going to burgle for national security,

glars already on the payroll to raise

we ought to do it right, and nothing con-

their productivity.

tributes more to national security than

plenty of money.

(Indicate page, name of

newspaper, city and state.)

_SECTION A

PAGE FIFTEEN

STATES- ITEM

NEW ORLEANS, LA.

Date: 9-9-76

Edition:F INAL

Author: RUSSELL BAKER

Editor: WALTER G. COWAN

Title:

GOVERNMENT

BURGLARY SHOWS

WASTEFULNESS

Character:

or

Classification 66=2132,

Submitting Office: N. 0.

Being Investigated

1010-29-31

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SERIALIZED GE FILED..

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FBI-NEW ORLEANS

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## Page 8

It would be in the national security.

It would be psychviogically satisfying

to the great majority of taxpayers, whi

already believe they are being robbed bs

the government but can never find ans

It would save billions of work hours by

relieving taxpayers of the obligation to

court duties and give them time to re-

store simple justice to the penniless anc

I tould eliminate the injustice of

loopholes and cheating by exposing th

secret vaults and mattresses of the un

ment so deep in crime? Well, they have

made the Mafia a best selling, box office

smash. They have lived happily with

bootients gored too there rackel and

ran up the costs, skimmed the take and

made it impossible to get a drink most

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## Page 9

OFFICE OF THE DIRECTOR

UNITED STATES DEPARTMENT OF JUSTICE

FEDERAL BUREAU OF INVESTIGATION

WASHINGTON, D.C. 20535

STATEMENT OF

CLARENCE M. KELLEY

DIRECTOR

FEDERAL BUREAU OF INVESTIGATION

BEFORE THE

SENATE

SELECT COMMITTEE ON INTELLIGENCE

SEPTEMBER 22, 1976

ASAC

#3

66-2832-40

Searched

Seriak

Fileu-

Caledo Ot

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## Page 10

Today marks my first appearance before the Senate

Select Committee on Intelligence. I want to assure you that

I sincerely welcome the opportunity to work with you.

I believe that we can and must develop a clear

base of understanding between the Executive and Legislative

Branches on the proper role of the FBI in the discharge of

its complex national security responsibilities.

As the Supreme Court so aptly observed in its

Keith Decision in 1972, "Unless Government safeguards its

own capacity to function and to preserve the security of its

people, society itself could become so disordered that all

rights and liberties

would be endangered."

Yet the maintenance of national security is a

hollow victory unless it can be achieved with the least

possible intrusion

I into the rights and privacy of our citizens.

Balancing these imperatives will require the greatest study

and

serious

thought.

Together, I feel we can reach a meaningful understanding

which will best serve our country.

Since

I became Director in 1973, there has been a

continuous examination of all major aspects of the FBI's

operations.

One

such study, initiated in 1974, established

that a quality, rather than a caseload quantity, approach in

the assignment of our manpower and other resources would

produce better results.

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## Page 11

Originally, this quality approach was tried on an

experimental basis in four of our 59 field divisions.

It

proved so

successful that we implemented it field-wide in 1975.

Today, the quality approach is being applied to all

areas of jurisdiction, including those in the foreign

intelligence and domestic security fields that are of prime

interest to this Committee.

In July, 1973, we had 21,414 domestic security cases.

By March 31, 1976, before the Attorney General's guidelines

took effect, we had--through application of the quality

approach--reduced this caseload to 4,868 investigative matters,

percent reduction. As of September 20, 1976, this figure

has been further reduced to 626. This includes investigations

of 78 organizations and 548 individuals.

This reduction has been made possible largely because

we have discontinued investigations of rank and file members.

We are confident that the FBI can meet its responsibilities

by focusing our investigations on the activities of organ-

izations

and on individuals who are in a policy-making position

in those organizations or who have engaged in

activities which

indicate they are

likely to use force or violence in violation

of Federal

law.

In effecting this reduction, we have kept these

vital principles in

mind:

_2_

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## Page 12

First, there must he no sacrifice or compromise

of the

essential

security needs of the United States.

Second, there must be the least possible intrusion

on the rights

and privacy of our citizens, including

their sacred right of legitimate dissent.

Third, although domestic security cases differ in

some

respects

from ordinary criminal

investigations,

these cases should be tied as closely as possible to

actual or potential violations of Federal law. In

furtherance of this objective, last month I transferred

the supervision of all domestic security cases from our

Intelligence Division to our General Investigative

Division, which has responsibility over criminal matters.

an effort to insure uniform adherence to the

guidelines and laws applicable to these and all other areas

of our

jurisdiction, I have combined the Office of Planning

and Evaluation and

the Inspection Division. In this

new

Division I have created a Professional Responsibility Section.

It will report directly to me.

I have also expanded the role of the Legal Counsel

Division in reviewing all areas of FBI policies and operations.

Legal Counsel will report directly to me and to the Associate

Director.

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## Page 13

The investigations transferred include those

involving domestic organizations oriented toward violence

and individuals

affiliated

with

such groups, as well as civil

unrest and demonstration matters and basic revolutionary

groups dedicated to the

overthrow of the Government. The

General Investigative Division will also be responsible for

several categories of criminal investigations formerly

administered by the Intelligence Division. These are

bombing matters, sabotage, passport and visa violations,

and protection of foreign officials and official guests

of the United States.

The guidelines which the Attorney General issued

last March set forth standards and procedures for domestic

security investigations. But, the FBI regards these to be

minimum standards. FBI Headquarters has imposed stringent

criteria to insure we use our manpower resources in the most

productive manner.

There are

a number of reasons why we have been able

to bring about a major reduction in our domestic security

caseload.

The decade of the 1960's was marked by protests,

often violent, on our Nation's

streets and campuses.

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## Page 14

We entered the 1970s still engaged in an undeclared

conflict in Vietnam which was unpopular with some segments

of our population. Not in recent history had this country been

so divided over an issue, and this division was not limited

to rhetoric but included demonstrations that often erupted

into violence.

There were deliberate criminal acts, including

bombings and sabotage, by persons opposed to our involvement

in Vietnam.

The role of the FBI in this confrontation was

clearly to thwart the efforts of those who resorted to

violence as

an expression of their opposition.

With the cessation of the Vietnam War in early 1973,

a major cause for divisiveness in this country was eliminated, and

the potential for violence was lessened, but not eliminated.

The FBI began closing thousands of investigations

at that time as determinations were made that certain groups

and individuals no longer were engaged in activities that

were likely to involve violations of Federal law.

The FBI met the unusual challenges of the 1960s and

early 1970s.

The Senate Select Committee has examined

these

and other problems in the intelligence field which led

- 5 -

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## Page 15

to the creation of this Oversight Committee; and as the

Committee is aware, the FBI fully cooperated in that review.

You have my absolute assurance that your Committee

will receive the same full cooperation in carrying out its

responsibilities under Senate Resolution 400.

One of the tasks

confronting this Committee is the

formulation of a legislative charter defining the FBI's

jurisdiction in the domestic security and intelligence fields.

This will be a most precise and demanding undertaking.

As I remarked to Senator Church's Committee, the

legislative charter must be sufficiently flexible that it does

not stifle the FBI's effectiveness in combating the high

incidence of crime and violence across the United States.

The charter must clearly address the demonstrated problems

of the

past; yet, it must amply recognize the fact that times

change and so also do the nature and thrust of our criminal

and subversive challenges.

The fact that the Department of Justice has

undertaken the formulation of operational guidelines governing

this area of our activities does not in any manner diminish

the need

for legislation. The responsibility for conferring

jurisdiction

resides with the Congress.

-6-

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