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104-10173-10132

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. I phoned 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.

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 available.

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 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 clection could be presented as giving

him time to cool off. I thought we had to pursue tbe matter to be

sure we know the facts.

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 Watergate.

He said we are on the PLMHPLANK for

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

available, for any help we can give.

S. D. Brecknridge

---

## Page 2

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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 communi-

cations of which I was the author while assigned to Madrid, Spain

in the period July 1970 to. July 1973: Nothing pertinent was found.

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. Howärd Hunt in 1972. My standard reply was

that I knew only what I had heard rumored.

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.

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

assignéd 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 abreäst of

developments related to Vesco.

The Station did not pursue

that subject, as frecall, because it was not a topic of

reportable interest, according to requirements of the period.

E2. IMPCET.

- Ci

BY 058759

SECRET

---

## Page 3

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SECRET

-2-

SUBJICT: latergate Flic 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 2. Duven

Robert E.

O:ren

Chief, OPS/OSG

---

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UNCLASSIFIED

INE NAL

USE ONLY

-:

I CONFID-TIAL

ROUTING AND RECORD SHEET

I SECRET

FROM.

Director of finance

1212 Sex Building

1O, ¡Office designator room-miration, and

burtiling)

DATE

27 February 1974

DATE

OHININ'S

INITIALS

spector nener:

F. 24 HOS

пято.

917

zul.

FORWAROTO

3.

Sandy- Quadel - wi'

7.

10.

14.

83.

M INTERNAL

---

## Page 5

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SECRET

2. 7 FEG 1974

MEMORANDUM FOR:

Inspector General

SUBJECT

: "Howard Hunt

10 -

At the recent request of the Deputy Director for

Management and Services, the Office of Finance has searched

its records to determine if we could find any payment to

Mr. Hunt in an amount of approximately $30,000 that required

no accounting.

2. We have searched the following records:

a. The expense runs for the period July 1964 to

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, JWAVE 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.

Hunt

either

in his true name or his two identified

pseudonyms.

Mr. Hunt's travel claims for the period

1960-1972 and have found nothing in these

travel claims that were

not consistent with

normal travel expenses, i.e., transportation,

per dien.

d:

We made a specific analysis of Mr.

Hunt's

account for the period he was under

non-official cover (July

'65-Sept

66) and have

E2

IMPDET

CL BY:

006567

SECRET

---

## Page 6

SECRET

SUBJECT:

Howard Hunt

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 for write-off by Mr.

Desmond Fitzgerald on 1 June 1966 without

further

accounting.

3..

Also, we confirmed that no other Agency advance accounts

were

established for Mr. Hunt during this period.

4.

At the beginning of his non-official cover tou ine

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.

Nr. 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

22 July 1965

15 September 1965

6 October 1965

19 July 1966

13 July 1965

$10,000

5,000

5,000

•5,000

_5,000

$30,000

All of the above have been accounted for by submission

of travel and transportation accountings.

lie feel at this time hithout specific-guidelines that

further searching rould be sonewhat fruitless.

One strange

aspect of the non-official cover assignment in Madrid is that

all the costs nete charged to the support allotment of the

EUR Division nhich 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 voar on an operational assigment

tithout hin incurring operational cipenditures.

- 2 -

SECURI

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## Page 7

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SECRET

SUBJECT:

Howard Hunt

6..

The Office of Finance has not found operational

expenditures except for the $1,600

mentioned above.

Therefore, it is suggested that Mr. Karamessines be questioned

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

expenditures if incurred would have been charged.

Another possible course of action is to request the

Director to approve my asking a cleared contact at Chase

Manhattan Bank to provide a transcript of all entries into

Mr. Hunt's Chase Nanhattan Bank account.

We are currently

reviewing records of all cashier's

checks prepared and issued by Monetary to determine if any

were payable to Nr: Hunt:

finished by the end of the week.

Hopefully this effort will be

B;,

Director of Finance

SECRET

---

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COMFUANTAL

20 December 1973

MEMORANDUM FOR THE RECORD

SUBJECT: E. Howard Hunt

1 9141 6.79.0

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

reported activities involving Mrs. Hunt....

2. 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

Ryạn was C/EUR (of was it WE Division at the time). In early autumn

Ryan said that he had just been informed by the DDP (Karamessines)

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

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

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

called Coleman in and showed him & 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 Hurt

was COS Montevideo. He had a low opinion of Hunt and was counting

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

Eisenhower in the States, at which time le requested a personal favor

that Hunt be reassigned to Montevideo. - So Hunt took another tour.

Woodward was outraged, and had his revenge in 196% when Hunt was

to be sent.as DCOS to Madrid.

After a couple of months--carly 1965--Ryan called Coleman

in and, observing that there was more than one way to skin a cạt,

told him that Hunt was going to Spain under nonofficial cover. This

didn't require anything special, Ryan saying that he didn't know

much about it. It came 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 before he went out. He knows that there was

no operational reporting, to indicate that Hunt was doing anything:

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## Page 9

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CONRESENTAL

The vouchers were not large, although the documentation was poor.

Coleman ralsed the question with Ryan about his signing off, and

Ryan said he could talk to Karamessines it ho wished.

Because

Coleman had a close personal association with karamessines he:

did just that. He was told by Karamessines that he didn't know much

"about it eithor--"Helms said send him out." He was instrucied to go

ahcad..

sri

In carly July 1966 (4 July) Coleman went to Madrid, He

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

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

that Coloman need not worry because he was gone.

6.

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 ivas mentioned,...

but without any conclusions as to its significance.

7. Coleman 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.

4D. Ruchi

S. D. Breckinridge

---

## Page 10

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22 february 1974

• I6 Fil 1! Tub 38

NEMORANDUM FOR THE RECORD

SUBJECT: E. Hoard Hunt--Madrid Assigument

1.

On 22 February 1974, Mr. Frederick N. Evans

and the undersigned interviewed Mr. Edward Ryan,

Chief, Staff D, Deputy Director for Operations,

on

the subject of

Mr. E. Howard Hunt.

the period

CeNT. Hunts den sure secontract teen agent

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 intervieir was to determine if Mr. Ryan had any

infornation bearing on the matter of the operational

assignment of Mr. Hust during this period.

2.

Mr.

Ryan stated that the assigment of Mr.

Hunt both

to the European Division and to Madrid was

handled without benefit of the routine processing

procedures

through the Western Europcan

Division.

Mr. Hunt's

assignment was coordinated and directed

by Nr. Thomas Karanessines, the Assistant Veputy Director

for Plans.

With regard to operational dutics, ir. Ryan

vas unavare of any specific project or target for hr

Hunt.

Mr. Ryan made

the

specific observation that if

Mr. Hunt produced positive intelligence on the Iberian

target during this period the officials responsible

for this effort within the Western European Division

were totally unaware of it.

Nr. Pyan stated that nost of his knowledye of

Nit:

Hunt's activity and the nature of his assiunnent

during this period came note through hearsay than

direct official knowledge. For example, he cited the

corment nade by a mutual acquaintance of his and dr:

Hunt's to

the effect that Mr. Hunt stated that while

in Madrid he

was

going

to "play golf and write books."

ir. Ryan was asked specifically,!

whether or not he was

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## Page 11

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under

the impression that dr. lunt's triting activities

scre cither being

encouraged or subsidized dircctly

by this agency

in any unficial triost.

sponded that

he was personally not aare of any such

arrangenent.

He ndded as an expression of personal

opinion that Mr. Hunt had no operational function and

was simply granted the opportunity to write books for

his. on personal gain at Government expense during this

period:

Lawrence J. Hove

---

## Page 12

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TO

YUEN WILL CHECK CUST

TION TOP ANO LOTTON

•FIDHITIAL

OFFICIAL ROUTING SLIP

NAME AND ADOHESS

DATE

Mr. Howe

XCT10.4

APPROVAL

COHHEHT•

CONCURRENCE

Remarks!

•XX.

DIRECT. REPLY

DISZATCH.

FILE:

IMFORMATION

PREPARE REPLY

RECOMMENDATIQN

RETURN

SIGNATURE

...--

FOLO HERE TO RETURN TO SENDER

FROM:

NAME, ADDRESS AND PHONE NO:

0/1G/2E24. Hgs:/5527

USCHASSIFISD

237

tino peerious elitions

CONFIDENTIAL

DATE

22. Feb 74

SACHET

(40)

dig d6т.11.1.6-

---

## Page 13

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ENECK CLAS:

MON TOP ARONORTON

÷!!

SEBZET

('l:

I6 Fele 10, Tale 32

22 February 1971

MEMORANDUM FOR THE RECORD

SUBJECT: Conversation with Sam Halpern

1.: 1 met with Sam Halpern for about 20 minutes this morning

in GG10, where he is cleaning up some details before he goos to

his new aggignment 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 öl Hunt's assignment in Spain in mid-1965 to the fall of 1966.

Halpern said that he tas no recollection about such an

assignment.

In June 1965 he moved from WH Division with Des

FitzGeräld when he became the DD/P. At about that time

Halpern's father died and he las in New York for the funeral

and ten days of religious observations following thai." 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 roturn

to that office until the end of June 1966.

Halpern observed that during this period Karamessines

was ADDP with Helms moving up to ba DDCI. He thought it entirely

possible that Helms and Karamessines could have handled this

on their own.

4.

Halpern said that Evan Parker had come inio the office

of the DD/P shortly before Helms became DDCI, and had returned

from Honolulu for that purpose. He stajed on for fit Gerald until

Halpern returned from the National War College.

He suggested

someone might talk to Evan Parker who may have known something

abnut il (although ha may not). He also suggested talking to Georgia.

US! S. D. Erestinige

S. D. Breckinridge

$÷2257

---

## Page 14

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16 Fele 12, Tele re

21 February 1974

MEMORANDUM FOR THE RECORD

SUBJECT: Watergate--Frank A. O'Nalley

MI.

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

Frederick N. Evans and Lawrence J. Howe interviered

11t. Frank A. O'Malley at his residence, 6419 Lakeview

Drive, Falls Church, Virginia.

Mr. O'Nalley retired

from this Agency in June of 1977.

Prior to retirement

HI. O'Malley was an officer in the External Employnent

Assistance Branch, Ketirement Activities Division of

the Office of Personnel.

It was Mr. O'Malley's function

to assist personnel retiring from this Agency in finding

post-retircment crployment.

In this capacity Mr. O'Malley

had been instrumental in the play-ment of Mr. E.

Hunt in the Robert R. Mullen public relations firn..

purpose of this intervier was to attempt to determine if

additional information could be developed from Me: O'Malley

with rogard to the placement of Mr. Hunt with the Mullen

Conpany.

Mr. O'Malley began the interview by recalling

the nature of his past Agency associations both with Mr.

Hunt and the Nullen Company. Mr. O'Malley stated that

prior to assuming his responsibilities in the Office of

Personnel he had served with Central Cover Staff in the

area decling with the funding of covert action projects.

In this capacity he had become familiar with the acti-

vities of Nr. Hunt wile Mr. Hunt functioned on the Covert

Activitics Staff primarily in the propaganda field.

Orally stated that he first came in contact with the

Mullen Company when he was attenpting to find an organi-

zation to handle the public relations effort of a covert

Agency activity known as the Free Cuba Comittee.

Mr.

O'Malley related

that he had arranged this cover

through

the Christiantorn Organization

and that his duties in-

volved all aspecis of the funding of this activity.

O'lialley described the nature of his vorking relationship

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## Page 15

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with dr. Robert R. Mullen as being close and cordial.

Pit. O'Malley stated that Mr.

Mullen mns in tho habit

of confiding io him irformation concerning other Mullen

business. contacts and projecis.

In response to a

specific question, ir. O'Nalley stated that during the

period of his contact with the huller Company dealing

With the Free Cuba Committee, Mr. Juilen told him the

Howard Hughes Organization was a client of the concern.

3.

Mr. OMalley reiterated his previous statements

that Mr. Hunt was referred

to his office for placement

assistance through the Office of the Exccutive Director,

then Colonel L. K. White.

then colore Hunt's interests in the public relations

that in

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

with Nr. Robert Mullen for the purpose of gaining the

benefit

of Mr. Mullen's guidance. Mr. O'Malley recalled,

after the

initial meeting, Mr. Mullen

mentioned having

met Mr. Hunt some years previousty in Paris,

France.

Nr. O'Malley's officcarranged interviers with various

organizations including Reader's Digest and the Kennecott

Copper Company.

Through the offices of the Nullen Company:

,an

interview was arranged with the General Foods Corpora-

tion,

Mullen client.

Mr. O'Malley stated there was

disappointment that Mr. Hunt had been unsuccessful in

"selling himself" during any of these interviews

and that

no job offers had resulted.

In response to a question

as to whether or not executive level: interest was still

being shown in Mr. Hunt's post-enployment placement,

Mr. O'Mallay recalled

that Mr. Richard Helas, then

Director of Central Intelligence, was listed as a charac-

ter reference on Mr. Hunt's resume and that Mr.. Holms

signed a letter of recommendation to the Kennecott Copper

Company on Mr. Hunt's behalf." Mr. O'Malley recalled being

contacted in the last month of Mr. Hunt's Agency service by

air. mullen, lno stated that a decision had been made to

expand theit operations.

In view of this expansion, Nr.

Mullen had decided he would hinself offer Mr. Hunt a job.

Mr. Mullen had stated that he las interested in having Mr.

liunt begin work inmediately.

However, r.

O'Malley re-

called that Mr. Hunt completed retirenent fornalities and

actually started work for the Mullen Coapany approximately

a week to 10 days later.

2

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## Page 16

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Mr. O'Malley stated thai contact was maintained

with dr.

Hunt while at the Millen Coupany

on a continuing

basis, because Me. O'Balley as interested in dir. Hunt

for possible refcrial of utier dyency retirees.

Mr.

O'Malley also understood that there was Cover ard Con-

nercial Siaff interest in the Mullen Conpany, and that

Mr. Hunt became

instrumental in discussing screral aspects

of the cover operations in his capacity as an officer of

the conpany.

Mr. O'Malley recalled referring various

Agency officers to Mr. Hunt for guidance when these indi-

viduals expressed an interest in

entering the puolic

relations field.

Mr. O'Malley did recall disappointent

in feeling Mr. Hunt had generaily been less helpful on

these occasions.

Mir: Hunt contacted Mr. O'Malley on several occasions

requesting referral of retiring Agency employees with

specific qualifications.

These instances occurred apparent-

1y after Mr. Hunt had assumed his responsibilities with

the White House.

instance Mr. Hunt requested re-

ferral of a

recently retired Agency secretary.

previous memoranda and discussions, Mr. O'Malley was unable

to recall the name of this individual..

He did, however,

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

individual whom he referred.

As a point of clarification,

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

been known to Mr. Hunt, nor had she previously worked

for him in

Nr. O'Malley also recalled a

request from Mr. liunt for an individual having skilis in

area of locks and surreptitious entry.

A resume of

Mr. Thomas C. Amato was provided to Mr. Hunt at that time.

It is Mr. O'Malley's recollection that Mir. Hunt specifically

that a person with Mr. Amato's qualifications was

reedel in connection with a requirement of the Howard

Hughes Organization in Las Vegas,

Nevada. sir. O'Malley

stated the opinion that it was his impression that the

duties involved vould include the monitoring of a listening

device in an undisclosed location.

Mr. O'Malley reiterated

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

cffer of employment.

Nr. O'nalley then recalled request from dr. Hunt

recornendation of a security sorvice organization

to carry out an clectronic countcrneasures "sweep."

O'Nalley recommended the lackenhut Corporation..:

3

---

## Page 17

O'Malley recalled

that dr. Hire expressed dissatisfaction

nith that suggestion in part because of that ir. ilunc

viewed as that firm's political oricatacian.

did not claborate further on that renar!.

ro. O'Malley

Nir. O'Malloy

then suggested the use ot anderson Socurity Consultants,

Incorporated, a commercial cover entity of the Office of

Securit).

Nr. O'Malley stated that insofar as this

organization was advertised in the yeilor pages

and that

Mr. Hunt could be assured of the reliability of the ser-

vices, he felt this to be a reasonable suggestion.

O'Malle) stated that during a subsequent phone call when

Mir. O'Malley asked how his suggestion had worled out,

dr. Hurt responded,

"Yes, they had done a fine job."

At this point Mr. O'Malley was asked whether or not from

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

the habit of naking glib connents which were not neces-

sarily accurate

in order to pass over a subject. Mr.

O'Malley stated that this was categorically so. He said

he was sure that Nr. Hunt had lied to him on a number of

occasions and that, therefors, he was in no position to

• be sure that Mr. funt had

actually, in fact, used the

services of Anderson Security Consultants.

Mr. O'Malley

volunteered the opinion that he suspected the clectronic

countermeasures

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

of the Committée

to Re-elect the President.

7.

In response to a quastion as to whether he had

ever

referred anyone

to NcCord Associates,

Me. O'Malley

replied that he remembered having referred walter Brayden.

Air:

Brayden for a time acted as bodyguard to Mrs. Martha

snitchell.

As an aside Mr. O'Malley mentioned that Mr.

Brayden had refused to carry a firearn in spite of the

fact that Mr. McCord told hin he could do so on the author-

ity of the Attorney General.

Asked specifically if he had

ever referred either Willian Sliea or Teresa Shea to Mr.

ReCord, Mr. O'Nalley stated that he did not recall specif-

ically icterring Teresa Shea and that he was sure that he

had not' roferred Willian Shea to hin.

So; contrary to

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

in all probability Mrs. Shea

was not refcred by this

agency to Mr. McCord.

---

## Page 18

8.

Rei.

ning to Mr.. O'Malley's pi-rious responsibilities

in

coordinating funding for the covert recion activities

0f dr. E. lioward Hunt, thie l5sue las raiseu as to wiether

or not the funding of dr. Hunt's projecis continuid beteen

July 1905 and Septender 1950 while Mr. Hunt vas a coniract

omployce stationed at Madrid

that at the time of Nr. Hurris

Spain.

O'Malley recalled

essagetend to dadrid the

statement disseminated

for. consumotion

within the Agency

was that Mr. Hunt was retiring.

Nr. O'Malley stated that

this was not genorally believed.

Mr. O'Nalley 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 Mr. Hunt's return to

staff employment the projects and funding which stopped in

July 1965 were again resumed.

Mr.. O'Malley was not aware

of any project names or funding mechanisas or post-assignment

accountings in connection with Mr. Hunt's activities in

Madrid.

Frederick N. Evans

lite

Lawrence

J.

Howe

---

## Page 19

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i!

21 Fobruary 1974

MENORIVOUM FOR THE RECORD

SUBJEGT: Offico of Finance Rocords • B. Howard Hunt

1:

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

of Oparations, PSI, the undersigned made an

appointment

for tha afternoon of 30 February 1974 to intervier Mi.

Willlan Cauflold,

Chief, Cortification and Liaison Divi.

sion, Office of Pinance, and Mr. Joseph Hudson of Pinance

on the subjact of Mr.

6. Howard Hunt.. At the outset of

the inierviow Mr. Cauriold advised the undersigned that

instruction had veen received from the Director of the

-Offica of Financa, Mr. Thomas Yalo, that discussion on

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

the Office.of tha Inspoctor General. Mr. Cauflold stated

that ha had intormed MI. Yalo of the requested interviow

and had roceived this instruction with the suggestion

that the undorsigned contact Mr. Yale. diroctly with any

inquiry.

2.

Accompanied by Mr. Caufield, the undarsigned

brisied. Mr: Tale on the natura of the reguest and idan:

tified tha "Task Force" effort heing undertaken by the

Office of Security in concert with the Offices of the

Inspoctor Ganeral and Logislative Counsel.

Mr. Yalo

responded that he recognized the legitimacy of the in-

quiry... It. Tale explained that subsaquent to inltiation

f to

complete audit being undertaken by Mr. Quinn of

the Audit Staff;

the Deputy Director for Management and

Mr. Harold L. Brownman, had requested the

Sercede France to discontian thed envestig, tion of

"r. Hunt to avoid duplication.

Yale aided paren-

thetically thai it was the nature of Finance Orficers

not to laire a job half done and tha: an

"informal"

inquiry into Mr. Hunt's financial racords had nevertha-

less continued

at 3

more subdued

pace.

E2 LAPDET

CL BY 011696

---

## Page 20

A rovior of the circunstancos surrounding dit.

Hunt's" convorsion

to Contract Type A erployment and

asstgnont was rbon undortaion by Messes. Yalo, Caufiold,

liudson and the undursignad.

Tho contract and payroll

files of Mr. lunt vare revlowed for possiblo indications

of the. nature. of tha operacional activley undertaken in

Madrid.: A review of travel vouchers. indicated that Mr.

Hunt and his family made accountings indicating dapartura

Iron washington, D.:0.,

on 5 August 1905 with an arrival

in Madrid, Spain, on l6 Mugust 1965.

Tha costs of this

trave, were: Charged to the budgat of the westor Haai-

sphara Division, Caputy Diroctorato for Plans, Nadrid

Station Support account:

A subsequent accounting sun-

maTilod PCS travel expansas and includod a payment for

apartaent contal for l6, 17 and 18 August 1965 vica s

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

this purpose.

4.

It was datorminad that an allottao bank account

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

Nazional Bank of Mashington. All salary and other non-

operational reimbursements iere nade. to Mr. Hunt through

sterile check to this account.

An oporational sccount

was established for Mr. Hunt with the Chaso Machattan

Sank of New York City.

A review of sil payments mado to

vir. Hunt through the Chase bank account through iir. Hunt's

aueratlonal

advance subsidiary account, or 1442 account,

had teen made.

Thore was no rocord of

any operational

accounts or advancas being procassod through this channel.

jir. Yals statod that this fact defined his concern.

felt that le was inconceivable that Mr. Hunt could have

undortaren oparational activity without some trangfer of

or accounting for funds.

To dats, no such records have

been developed.

No

reference to a project or projact

digraph or operational FAN number has been located.

A1

expenses connecied with Mr: Hunt identified to date worg

charged to the Madrid Station Support.

A review nade of

Jadrid Station records has not indicated any.

"Developmontal.

and Targat of Opportunity (DiTO)" funds or "Other Obera-

tlongi Ailvity (004)" funds expended by or on behalf of

it. Huni

These two accounts would normally be the source

of

operational

funding not charged against a specific pro-

jeci.acciriry.

2

022037/086615178

---

## Page 21

14-00000

5. A coron of all of tha traval vouchers on record

Enr Mr. lunt during this period also failed su identify

= projec=.

In judicion to cho PCS and Tolurn vouchero,

two ochor

accountiags ara on jocord. lino accounting

coyered a trip by the

the renoval of

visas. "entire lunt faally to Paria "for

A seconi voucher covered a TDy

tilp iron daurld to irashingson with roturn to dadrid

naja by it. lunt fron

5 January to 3 January 1966.

voucher statos in the space provided for the citation of

the travel order number - "no travol ordor."

Tha account-

ing ras approved and signed by Mr. Thonas farauossires,.

then tapusy Dirsitor for Plans.

No justification or

statement of purpose for this TDY was given on

the account-

.

"Mr. Yale decoralaad that furthor reviow of possible

Sourcos or identification of operational furiding way in

order.

BI. Yala gave instructions that tho ontito 1442.

alrance account of Mr. Hunt be reviered for other possiblo

channels of funding outsido oi the Nex York Chase account.

Aftor discussion, it was agrsed that particular atrention

be taen to any itons connucod with publishing or book

royalties.

Mr. Yals noted that the royalty offjot waivor

provision

arsended to Mr. Hunt's contract sas; in his ex-

perience,

somewhat unusual.

7.

NT. Yala vas inforned by the undorsigned of the

intention to intorview !t.

Edward Ryan, currently Chlef,

Division D, who was at the time of Mr.

Hunt's Madrid assign-

nent, Deputy Chiof of the Western Henisphero Division.

Yals

sugzested that Mr. Davis Powell also be intervioned.

Tha undarsigned informed MT.. Yals that thig had been done

and briefed Mr. Yala on the generally nogative results of

Ias intervior.

Ar. Yale then recormondad that Mr. San

Halgets be interiloved.

Hr. Tale noted that Yr. Halpom

had boon an asgistant to it. Desmond Fitzgerald when the

lattar was Chief, Vesteon Henisphere Division and had ae-

companiod iT. Fitzgorald when he becare Deputy Diracon for

Plans. Ur. Yale recalled that subsequent to Mr. Fitzgerald's

oassing that do. Halper remalned on the state and actod ag

an Executivo Officor

for Mr,

Thonas Taranessinss.

dr. Yalg

seatad tist fros his experionce, Mi. Karanessizes would

havo dolegated all the arranging of "details" surrounding

un assignaent such as NT. Hunt's to Mr. lialpern.: 15. Yalo

offared tao parenthetical obserracion of his surpriso at

what he iniorpretod to be reticance to date to interrer

ir. Halben.

.3

57.

7

---

## Page 22

14-00000

325027/98393178

(

Tho undorsigned assured Mr. Yalo that he would be

informed of any inforuation Identliying any possible projact

activity daveloped in subsequent

invegtlgation.Mr.

Yalo

stated that any informacion in this area

would greatly

facilitate the Job of checking computorized financial

racOrdS..

Lawrenco J. Howe

I:= 39/0r610.01

---

## Page 23

4-00000

CHASE NESHATTAN BELIK SCCOUNT

Check No.

9

10

Date

Yayec

20 Octöber, 1965

Unknown

12 months rent as deposit plus l month

in advance at $550 per month:

Substan-

tiated by lease)

26 November, 1965

Casa

Guggenbuhl

(for storage of trunks during 3 mos.

temporary housing)

10 December, 1965

Security Storage Co.

(final destination charges per

attached

invoice.

Insurance chatge of $1.00 is

personal expense.)

amount

$ 1,050.00

$

69.34

$ 1,070.82

November 18, 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

7

ilowata

---

## Page 24

• Y

"''SERVICES OTHER THAN PERSONAL

-=.:-

Terence. S. CRABANAC

DESIRIPTION DE ERDENDITURE • ATTACH RICEIPTS ANO JINGA SLAPORTINE DOÍUNIDES

Dec 19G5

Flowers

for Sin. de Max Borrell.

Pesetas 150 @ 60/S1.00 - $2.50

Dinner at House of Jing.

At-Boliyian

Posetas 2250 0:60/$1.00--$37.50-*

• For operational security reasons a receipt was not obtained.

(Credit the Illi. 2 advanco account.)

ATIFY THAT THE DISBURSEMENTS ITEMIZED. ABOVE KERE NECESSARILY MADE BY ME IN THE CONDUCT.

DEFICIAL DUSINESS OF. A CONFIDENTIAL, EXTRAORDIMARY. OR ENERGENCY NATURE.

THAT I HAVE NOT

NOR WIÜL I DE. 'REINDURSEO THEREFOR FROM ANY OTHER SOURCE, AND THAT THIS CLAIM AND AT-

"HMENTS ARE TRUE AND: CORRECT.

see true name attachment)

CERTIFY FUNDS

ARE AVA:LABLE

APPROYED

нет.. но.

CHARGE FAN

ACCOUNT

NO.

SATE

6-2282

6136-1347 (code 3)

157166 VUM

il an! lone.

DATE

SIGNATURE OF PAYEE

DATE

SIGNATURE OF AGENT

RECEIPT FOR FILOS. RECEIVED

DATE

Charles 6i Satis

14

Feb 66: WE/BF

DESCRIPTION-ALL OTHER ACCOUNTS 1J.JJ

28.37

DESCAIPTION

•OVANCE ACCOUNTS 19-27

Э8.39.

STATION

CODE.

ici

CERTIFIEU FOR PATIENT OR CREDIT

DATE

2/25/66

SPACE BELEW FOR

SIGNAYERE OF

A Victo

EXCLUSIVE USE CE OFF ICE/S FINANCE

51-34

OBLIG.

REF.

но.

PAY

PER.

L1Q.

CODEI

CA

GENERAL

ACCOUNT SENDOL

LLOGER

÷ us

NO.

РАУНіТ

NT AMGUNT

RECEIVED

DATE

SIGNATURE OF. O PARCE DAGENT

CLASS

71.80

AMOUNT

DEFIT

DUE

DATE

CREDIT

CRABANAC CES ENE

RARANASLRS

SRABANDO TSI

88. 2392

S8

2282

36100

3601.0

6:1:36/347

3/651.06/361347

144.2

2:551

4,555

50:125

3750

2,50

PREPARED DY

-1i3/uun Evokerty

DATE

REVIENED. DY

SECRET

187090 10 1

TO /10rA18 10A18:15

40c01

313393

OyFR

-10-00

Icio

40n0

{a8)

---

## Page 25

14-00000

PCS to Madrid - Per dien/misc exp

Air fare (self & family)

HHE, POV, etc

TLA, quarters, etc

Education allowance

$

998.30

2,257.50

7,547.76.

6,662.00

I,440.00

TDY Madrid/Paris - reentry visa

Air fare only for self & family

PCS to Hqs - Per diem/misc exp

Air fare (self & family)

HHE, POV, ete

TLA

$ 178.82

1,394.55

10,731:97

599.34

Operational entertainment - Madrid Nov 65

Approved expenditure - LKD - Madrid 1 July. 1966

Total expenditures

Less advances received (bank deposit,.

$30,000;

cạsh $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 26

14-00000

15 February 1974

16 Fells! Fat 38

MENOR INDUM FOR THE RECORD

SUBJECT:

Interview of Me.

Davis Powell

on the David St.

John Novels

On the morning of 15 February 1974, tha

undersigned interviewed Mr. Davis Powell, currently

a Budgot Officer on the staff of the Daputy Director

for Management and Sarvices. Mr. Powell is locatod

in Room 7C18.

During 1965 Mx. Powell was Chief of!

Support of the then designated Western European

Divi-

sion.

In July 1905 & contract was writton authorizing

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

ment under non-official cover to Madrid, Spain.

The

purpose of this intervior was to dotormino if Mr. Powell

had any infornation on dr. Hunt's activitios during chis

period.

2.

Mir. Powall responded that from his recolloction,

it siss Mr.

Hunt's

habit to deal only with the most senior

OffiCEr

availabla.

with

In this casa MT. Hunt dealt directly

the then Chief of Western European Division, Mr.

Rolf Kingsley. Mr. Povell statos that, in his capacity

as Chief of Support, any activity undertaken to support

Nr. Hunt's assignment to Madrid was undortaken second

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

office:

He further stated that he was never briefed ón

the purpose of Mr. Hunt's mission and could add little in

terms of speculation.

Mo. Powell recommendod that Mr.

Edward Ryan, who was

then Deputy Chief of Western European

Division, ba contacted.

Mr. Powell also suggested that

Miss Marcha Sevilla be interviewed. Miss Seville was the

• Executive Secretary. in western suropean Division during the

tims that Mr. Hunt's contract was written and Miss Savillo

subsaquently seried in Madrid horself.

Mr. Powell under-

stands that Miss Seville is currently assigned to the

offtco of the Chief, European Division.

Lawrenco J. Howe

---

## Page 27

14-00000

1-3.

15 February 1978

16 Fell Tel 38

MEMORANDUM FOR THE RECORD

SUBJECT:

Intervion of MI.

Rogors Brooks

on the David St. John Novels

1.

At 0930 on tho morning of 15 February 1974,

the undsrsigned intervlowed. Mr.

Rogars Brooks, Chlof,

Contract Personnol Division, Offics of Personnal.

the purpose of this interview was tó determine if Mr.

Brooks had any information not contained in the Con

tract Personnel file of Mi. l. Howard Huni on the

latter's activitios whilo a Contract Type A employee.

Mr. Brooks summarized his recolloctions by

say no one longed to mate sensee contracts

to ba administerad without the contracting officar being

made awaro of the operational objective involved.

Mr.

stated that he rocally some of the controversy

involved

In proparing the contract dealing with the

question of offset and housing allowance, but he was

unablo to recall any of the details.

It Nas Mr. Brooks'

suggestion that the Offico of Finance be contactad and

that their contract personnel records on Mr. Hunt be.

checked for information.

Lawrence J. Howa.

---

## Page 28

4-00000

17 February 1974

•Ii feli!!, Teib-38

MENORLVDUM FOR THE RECORD

SUBJECT:

Intarviow. with Mr. saynond A. Rocca

on the David St. Joba Novals

1.

On the morning of l! February 1971 Nessrs.

Fredérick Evans and Lawrance Hove interviewed Mr. Raymond

A.

Rocca, Deputy Chief, Counter Intolligence Operationg.

The purpose of the intervier was so folloi up on infor-

mation contained in Office of Sscurity files which stated

the belief thst individuals in the

Countar. Intelligenco

Operations offico had knowledga of tha writing activitios

of ir. E. Howard Hunt. This belief vas a mattor of record

in tha files of the former Secuzity Research Staff and wag

attributed to Mr. Paul Gaynor, now retired, and Mr. Edward

Sayla.

2.

During this interview MT. Rocca was specifically

askad whether or not he had knonledge of the existence of

any form of official sponsorship or encouragement to Mr.

E. Honard Hunt to writo novels to inprove the imags of

this Agency.

Additionally, Mr. Rocca was asked whether

ox not any

assistance was ever raquastad of the Countat

Intelligence Operstions offica to be provided to Mr.

of whether or not

Hunt

that staff had ever had any relationship

with Mr. Hunt whatsoover.

"In responss to thess questions

responded ""on

the record" that ho has no knowledgo

of

any such

assistance

arrangaments not

ai any ¿ino was he party to any.

or any raquests for assistance to be. Hunt.

Mr.

Rocca stated that the particular section which he had been

nost accively concerned in the past years was responsible

for handling a variaty of tasks categorized under the area

of "setting the rocord straighi."

in this senso,

the "image"

nission of the offica was to countor nisinfornation: cur-

rently in tha media or othervise believed to be part of an

effort tó discredit the Agency.

dr. Rocca fauls that any

assumption that Mr. Hunt was engaged in aay form of Agency

sponsored inags activity would have probably load to the

conclusion that it was done under the Counter Intolligence

Operations.

Howover, Mr. Rocca enphatically stated that

this was not the caso.

---

## Page 29

3.

Mr. Rocca was thoroughly candid and cooporativo

durios the course of this intervicw.

do was unable to

suggest alternato neans of attempting to determing if

any official Agency sponsorship of Mr. Hunt did in fact

exist.

Mr. Rocca

did venture the opinion

that he folt

that in all probability an official acquiescence on tho

part of sonior officials might have been involved rathor

than an official sponsorship.

It was agrood by all lo

this discussion that the nature of any informal support

given to Mr. Hunt would be far nore difficult to defino

in the absence of any formalized agreements.

Lavronce J. Move

---

## Page 30

4-00001

6 Fobruaty 1974

MEMORINDUS FOR THE RECORD

SUBJECT:

The docalls summariziag an intorvion on 4 Fobruary

1973 Wits Mr. Walter Pforzhelner, Curator, Historical

Intelligenço Collection, soro sat forth in a minorandus

addrassed to MI. Stoven

La Kuhn dated & Fabruary 1974:

Mr.

Xuhn was briafed by tho

undarsigned on this information

during the afternoon of 5 February 1974.

Later the sane.

aftornoon, at Ms.

Kuhn's diraction, a conferenco nas bold

with Messis. Scott Brockenridge and Jobn Richards of the

Offica of the Inspoctor General.

Durtag this conforenco the speculation sas entertained

that Mr.

E. Howard Hunt had, la fact, boen under Agoncy

sponsorship with to kowlodgo of MI. Richard Holas in hig

preparation of a series of spy novels under the psaudonya,

David St. John

If it can be accepted as a roasonabla

supposition that it. Huat had some highly compartzented

financial atranganent authorized dy senlor Agency officials

to srite those books,

then it is likoly that this relation

saip contiauod after

Mr. Hunt officlally rotired. It is

specifically sorod that dr. Hunt retired 30 April 1970.

Subséquent to

the totiremont, a Dayid St.

John book appearod

in print in 1971 and another la 1972. Thesa nanuscripts

were apparently prepared during the time that Mr. Hunt nas.

eaployad by the lobert he illlen company live

¿lnutos fros the Offlee of Gonerst Counsel nako

reterences to a concorn of Sanator Saker oyer an allogod

continued subsequent to Mr. liunt's forual ratirenont.

Senator Baker has reportedly nada raference to a payzent

of soma thirty thousand dollars with tha parenitorical

that it. Holas would aot have that amount of sonay

---

## Page 31

to provido Mr. Hunt fron his privata funds.

Nt. Richards

of the Inspoctor Gagaral Staff opinioned that if tha

againcy had

sponsored

the st. John books, it was liloly

that Mr. Hunt had so inforaod Senator Baxer.

4 =

Addla8 possiblo voight to this line of speculation

is tho fact that subsequent to publishing the last St. John

suggastion is that this ariting effort was done by MI. Huat

froo of any fiduciary relationship wich tho Agency involved

In the use of tho st, John pen nase....

15. Howard J. Osborn, Disector of Security, was

briofad on the above by the undarsigned in the presence of

M. Juhs on the ovoning of 5 Fobruary 1974.

LaNtanco 3. Howa

---

## Page 32

4-00000

"??"

 Pobruary 1974.

NEMORANDUM FOR:

Mr.. Stevon I.. Kuhn

SUBJECT

: The David St. John Novels

Lei's

'=:.

On 41 Fabruary: 1974, Mr.

:7

Historical Intelligence Collection, was. interviewed by tat

Curatory

undersignod concerning his knowlodge of a serios. of novels:

written by M; B.: Howard Hunt..

This intervlow was undertaken

at your roquest in an effort to determine if MT. Hunt had

actad in any capacity in cooperation with Counter Intolligenco

Operations.

•Ir. has previously been alleged in Office of

Security records that Mossrs. Paul Gaynor and Edward Sayle

of Security Rosearch Staff, belloved that Mr. Hunt. had written

novels ne Agency request and that this effort had been known

to Mr. Jamos Angleton, Chief, CI Operations:

all tallatio

MT.

Pforzhoimer provided a verbal summary of his.

knovlodgo of Mi. Hunt's fictional writings under the pen...

name, David St. John.. MI. Pforzheiner stated that when the

Pforsheimer related that he checked with a source

in the copy-

right.offico only to find out that the truo name was not given

on the copyright application. The nailing address given

for

the

author was chockad against a telephone cross reference

directory. • The

address on the copyright application was..:

identified with Mr. E. Howard Hunt.

Nt. Pforzheimor stated

that

aftor making

the

identification, ho called Mr. Thomas

Karamessinos and folated his discovery. MI. Pforzheimer

rocalled from the naturo of Mi. Karamessines' roaction that

ha had uncovered a sensitive matter of senior officor concern.

Pforzheimer statod that he then recommended to ir.

Karamessinos that "if the Agency is involved in this thing

why not see to it that Hunt leaves his addross off the copy-

right applications in the future."'

Mt. Karamessines reportedly

---

## Page 33

accorted the suggestion and Mr. Pfortzheimer recalls that

subsequent copyright applicaiiors gre submitted without...

the address.

Within five minutes of the conversation with:

MT. Karagossinas, Mr. Pforzheimer recalls being callod by

Richard Holms, then Deputy Diroctor of Central. Intelligence.

MI. Pforsheimer recalls the substance of the conversation as

boing, "for Christ sako Walter, this is the first book to..:

come along and say sonething good about the Agency."

"Why

not leavö

the Goddann thing alone."

3:

The undersigned asked Mr. Pforsholes,

who to his

knowlodgo,

would bo in a position to confira or deny whether

Mr.

Hunt was under any form of Agency sponsorship in his

writing of the David St. John novels.

Mr.

Pfortzheimer replied

that he was never officially briofod on the matter and that

only Mr. Helms or MI. Karamessines could provida the answer.

Mr. Pforzheimer was then agked if oither MI.

Angleton or Mr.

Rocca of Counter Intelligence Operations would have any

knowledge of this activity. Mr. Pforzheimer roplied that ha

doubted it seriously.

Ms. Pforzheimer vent on to relate that ha nas

occasionally tagked to do rosearch for Mr. Hunt.

tie recallad

on ona occasion being asked to research the Indian raligious

rites involving use of funeral pjros.

Mr. Pforzheimer

rememberod that this theme figures significantly in Ni. Hunt's

subsequent novel Tower of Silenco

which appeared under the

St! John pen name in 1966.

TIT.

"forzheimer parenthetically

pointed out the origin of the pen nana as being the names os

MI. Hunt's two song--Lavid and St. John.

Tracing Mr. Hunt's career assignments, it is noted

that he was assigned to the Office of the Deputy Director

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

February 1965.

The first David St. John book was published

during 1905.

was assigned to Madrid,

1966,

• adrid, Spain arou Corertet Agent. During t

Spain as a Contract Agent.

three St. John books appeared in print, tha highest out-

out for any year.

Mr. Hunt published

one book under the

and 1972.

z

---

## Page 34

14-00000

б.

A check of Office of Security racords did not develo

any indication that any of the David St. John manuscripts were

ever submitted for review in accordance with Agency regulations.

There is no documentaty evidence currently. available to the

Offico of Security to either confirm or dony possible Agarcy

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

the pon name, David. St:: John..

Lawrence J. Howe

?..:

1:.÷9

110:1N

---

## Page 35

14-00000

Copy one of one copies

5.February 1977

MEMORANDUMI FOR: MI. Kuhn

SUBJECT: General Gaynor's Recollections

This data, at your instruction, I called Gen. 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:

a. He became aware that Hunt, while in WII, was accomplishing

a steady flow of spy books, and that security approval was not being re-

quested on the manuscripts before submission to publishers. Me stated

that this acticity continued later,

as he recalls it, in CI Staff, and

• agreed with idca that the volume of writings was sufficient to indicate

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

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

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

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

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

and that Hunt's books were a part of the program to do so. He stated that

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

recieved lead him to belicve this was the case.

b.

He suggested that tivo people might be able to assist in clearing

the issue, Ray Rocca and Walter Piorzheimer, both of whom were involved

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

of all the details - on an up to date basis - of tuat's departure from the:

Agency to join the public relations firm, to the degree that Gon. Gaynor

gained the belie! that Hunt was merely moving his dosk outside the building,

but being paid by the same source as before.

He also advised that he kept

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

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

recall aboat what he had learned and when and what resulted, might be:

better than his ai this date.

(He also mentioned an incident in which dorse

allen while on a TDY was told by a COS to ask Headquarters to remora Hunt

from the Aren because of his direct liaison with the presilunt of the country.

aid other activities which were confounding station operations. Later, the CUS

toil Norse to forget about relaying the message, with the implication that

kurt was being diracted by higher authority in the agency and the COS did not

wish io get in the middle by complaining. He said liorse rould proballs

---

## Page 36

14-01100

c. He also suggested that inother person--definitaly no friend of

Hunt--whu might have some recall or have picked up information about

the book writing matter migit be Anita Potochi of CI Stalf, formerly of

Dirision D.

I gather that she did not have official knowledge, but because

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

careeri)

Edward F.

---

## Page 37

14-00000

16 Fel 02, 60d2

19 Jeans 72

EVERETTS HOWARD HUNI. JR.

1. Subjaci, a farsiar GS-15 Guerations Cillcer assigaed

to DDP/Ecrope, is 53 years of aza and marriad. He sorved with

the Citice of Strategie Servicos dariag World War II, and was esploysd

by tbig Agency iron November 1919 until dis volcalary retirement

02 30 April 1970. la 1971,, Subjact served as an advisor to President

Nixon in calation to his trio to Chisa.. Subject is oi current iniarasi

to tas Eoai÷al Caver Siall.

?.

Subjaci graduated from Brown University in 1940. Ha

Jared wita the United Saiss Navy from cazly 1941 until lazo 1942.

Mitar a year wiih tima, Incorporated, be entered the Air Force,

where ha mas detaied to the Ollica di Siratagic Sarricas.

He gerrad

in the Far East antil January 1915. Subject eagaged in writiay, and

tbaa from May 1919 unil Fabruary 1919 was employed by tha Economic

Cooperation idaisiatration, serving in Paris, Frasca, a3 an aide to

Avaroll Fiasriman.

S.

A backg-onad investigation conducied by the Federal Sureau

of Invastigacion in July 1919 revealed so indication oi insissility on

Subjeci's part, da: il mag luier learned that Subjeci had beer saluged

an increase in salary mita tha Economic Cooperaiion Administration

and sad been parzaitiod io rasign. He mas described as ligaly istalligass;

but bliauly selfian and egosiatical....

Subject'a ris, Dorotay Louisa Goitera Hunt, was invastigaied

for Agency coployanes: is 1916. Her forster hasand was described

an a habitual danakard, and Subject's wis way described as sligaily

unstable and not inclined to remain ia one plaza io= aay leagib aí tiris.

Sie did ao: cater on deiy, Javiag accopied a position with the Economic

Cooperation Admidisication la Paris. Car Paria sourcas later reported

ta! Subject's wife ias formarly his miatress and was openly flosied

a3 such lo: saveral monisa. She was ilen daycribai as as amoral and

saagarous ladivical mo uadarbandely alacred those persona jo

incurred hor camily.

---

## Page 38

14-00000

5.

Subjece entored on duiy as an Ibiolliyeaco Cilleer, GS-13,

on 3 oranger 1949.

1a December 1950 Do as assirsed 23 Cble

of Station, Moxleo Ciey, did Chea served is Clisi of Slingion larre

unill August 1953.

He served in tokyo, Japan, from Juss 1954

Mail cohereary 1957. 1

Hia was thon absigaod as Chiol oi Sialion.

Monteridoo, Uruguay, Subject was cissi di Guilias la doresviro

natil early 1950.

Thara maro ladicalions that Subjec! allespied

to uso bis parsonal infuenco mila the Presidea of Uruguay to savo

his assigamant there erceaded, but do returded to sbe United Siates

1a June 1960 asd vas assigaad to idesico City on Projuci JMARE.

6. A cablo frora Montevideo, dated 6 November 1960, indicates.

that Subject had writtos formas Urugusyas contacia coramantia, 1ba:

ha was working on the Cabas problesa and pubilablaz an anti-Castro

nouspaper in Miaril.. I: was racommended that Subject bo waraed

about such indiscross remarta, but apparmally so action was taxes.

7. In Novezber 19ó1, Subject was reassigaed to the DDPl

Covari Action Siall, asd in January 1962 to tha Cilleo o! to Chiol

of tha sarce Stall.

• In July 1952 Subject was transferrad to the DODS

Research and Publication Section in Washingion, and is July 196%

tó the DODS Covert Action Siall. In February 1955 hu movad io isa

Cifico of loe DDP/ Opezaions Group.

FIOm JuDa 1965 to Septersbos

1966 Subject served ag a Contract Agost in Madrid, Spain, alter

which ha servad in the DDP as Chiel of Europaan Covert Operaiions

ustil hiù retiremest on 30 April 1970.

3. On 25 Januasy 1970 a source of the Oliico of Security

learned that Subjact was circulating through the pablishing community

"Givs Us This Day," a manuscrip! writtea under his forzer opa-atiazal

allas and dealiaz vita be evenis or tha Bay of Pigy. Investigation

discload tha: tao masusesist had baen in the possassion oi Ion liallace,

of Holt, Rischart, and Wission, Inc. as carly as 9 July 1908 ard ta:

i¿ saa sent on thai dato to William F. Ducklay, Jr., of the Natioral

The mazuacrip! was sent to tha Arliagion Houge and Waliss

and Company as well.

Botà rajaciad it as too conitovarsial, as did

Hall, Rinenart, aud minsion.

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## Page 39

14-00000

5. Subject was insarieved cogarilaz to mazuscripi on

17 gourma 1970 by be DO?. Headils profossad igaoranco, but

whoa told too tila admittad te lad irition it lur his on Seaofir a8 s

historloal secord.

Subject said no lad showa tho manuncrist about

¡no gears ago to bis ages, ilax ivilsiason, and so William E. Suckley.

J=:

He sald bo had daly maaled aa osigion from theso genilezies, aad

aúdod that lad manuscripi bad been retarned to him. So had, so said,

sot tradiad il publlabed. Subjec! was lastrucied is to the danger of sues

a manuscripi boing published, age vas so alionpi lo determino bow

magy cogies of it migt be in clrculation. Mo was sol to conlac: Walkar

and Compasy. Who more lee scures ol lsa original Informailos.

10, A roiavastigatioa di subjeci was conduciad by the Offico of

Sectsity in Jaly 1270. Subjeci and his wilo were described by sie

neighbors acquaigiod wich ison lor lo so nise years, as excellent

paresis, good soigarosy, dad fido community elliseng.

11, Ou19 Jaly 1971, Subjoci sao isportad by loo Jorday. City.

¡em 1a=90% Jonscaj io baro joised tho Mallo House Siast aa a

Consultest to President Nizoa praçazalory jo lno Prosident's visit to

sho Poorlos Republle of Chica:

12. On 6 roverador 1970, Sabject vas granted a Corort Security

Apporal fat use by Céairal Corer Stai gita Robert R. Mullen asd

Comçany, a Public Palaticas Irs wit oiliceg at 1729 # Stasei, Sorta-

wast, Mandiagton, D.ã. laquiry of tao Coairal Cover Sial od 19 Juna

1972 revealad that dis to a curzen rolatlonghis. Subject, da priacical

viñcas of Pohurt R. Mulled and Cospany, lo uliting of covst arrango-

meats for tra Agency asseis, Jares Everett in Amatardars, Neizerlazda;

32? Artzus Fiocäberg, la Siagagote.

tusject's escurity illa doflecia ihat Subject has, in ibe past,

beda of oporarlonal taigresi io dis, James Anglaion, Chiel, CI StEl/EDP.

¡a connecilon tilth so ageradoral matter. Ca 19 June 1973, Me. Frad

Bustard, Clot, adriaed sa, le pill provide informalion as to 1às

maLure Di la. Angieroa's utilization of saujecr.

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## Page 40

4-00000

-1

SHE,. 1955

BABURET:

maest for aception to proviston o

3'45-10D — TarCICO 3. C2121UC 1D

Ilo resorandan contalaa a jocontendation 1u pa-si

siznad to 250 Hadrid 3598 10 Seals to a songitive asyluant

inco Big cuntarblOn 120n 3 Stall I0lo7B3 On 4 July 1065.

2344С Tas 2 C915, sioo 7 (519, 330.00 per Dinua) and ba

15 baer Dald at the zuro nia 1a

hit Drasant contract

513 contract movides that ba will do entitlad to

¿ebla smalcatton aaplicable to lis aurolates personnel

3.

To basic 117122 quartem allorea for Class

II

9221a273 10 MadrId Is 33,000 per anun. Tho couse mica

anac ins located,

1 DA 15 10799

2355 0 1d Hovenat 1969, bag an 272131 rant 01 35, 300.00

Cherslore, for rant alone, La 7113 do

₫1,060.00 TAT ysa Dyar La 150 Tercent ErITua 211094

ỞOT TKE GIOTSIES OMN 1105. 01 2 75/25 305030:

39 TouLa 3a oui 01 social 33, 505.00.

4. Luo to the prerational sensitvity of CalLo's

1S9I2n7e04,

is raguast t0.?1a2 on big sonsing costa tas

handled by 15. Thonas sarressiass, SOD?.

On i5 SeptanCer

23 a 7523 percent basis 307

the e:casa 211072312 costa us

but cot to sucred, do percent abose 21a quriors allorasca.

2292÷1691353.

It 13I57u257a1

Jacuty Disectos

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## Page 41

4-00000

(

or Support autcordon the 75/25 parent sariag di tha ascesa

milomala costs un to an sarcart abova i1s quariers allorasca.

/51

Edward 3ya1

Act 1a5 05103

Masters Europe bilalon

Roconsendation la peragrasa 4

is autborized:

Charles M. Darfs

Baputy Director for stoport

9 NG/ 1965

Dato

DDP/JE/S3:Da71sB.Powell/aj/5189 (SNo7S5)

Distribution:

_2 - SSA-DD/S

-

12/O

IS/2T

FRET

- 102/5

---

## Page 42

4-00000

SObU:1L8

ATT

Chiel, Mastera Surora Erision

Support Start.

Concengation and Taz Dirision

Titlea or jenance

Luby Status Reporta-Taraaco S. C2421440, I220730

Mander 179C80

Felerguce&

FR3 20-1000-1, DarA5r906 5.

13 Ectudo= 1355

Is data tara 13 Do ricord of receipt of Foras 75i,

Puty Statua Reporta, for Tarenes S. CRUSATiO slice bia SCy

4 vuly 1905. These recorte any roquirad in order to saintain

big iAst9 cocount in accordare ulia tia taros of parsargos

ófe) cl iãa contret end to proalida sation to vithhola puj la

ascordance ul ta roguirementa of tha rofarensad bandocos.

2. it 10 regrestad that tois ordico de garised 13 to

the reason for the daley la tha subnigalos of tbase Duty States

Roports.

LUCIS F. TCOCOD

chia?,

Coatrast Employees Accorats Sactica

Agent Payroll French

Saaran age and as Dirtajon

Luelle F. Lagood

Chial ol SuppOrt, IS Diy1a100

Dez conversation Tith la. Ebonaa Jaranesaiges, adar.

Baty Stasas Bogorts (Tora T6i) suinistai

on Jazenca S. CRIBANAC.

Tals scould D usal as t3a autorit

to conclane 213 fay aizbout these reporis.

20911

But 1850

SECRET

89:75:18

---

## Page 43

4-00000

3 Septianes IÇ05

¡EMORA:DUL FOR: Chiel, Contract Persoaaal Division

SUBJECT

REFEROLICE

.: Gereral

: A. OGC Optios 65-2476a, dated 12 August 1955

3. Our fleno, datad 8 July 1965, Sabe Subjecé.

Ibis office herelo recommends an amendent to CRABANAC's

Supplement dated 4 July 1955, to delete paragrapa 7. entltled "Orisat."

2. This office acinonledges the OCC opision, Reicrence A, Which

deteruized CPAakAC may retain nithout Asacy salary offset any future

royaltles earued as a result of bis literary eftorts based on the fact

cover dosa not includa role of a writer.

3. As Suoject's cover "activities" have been officially clarified

a3 being only a lignt ore of a retired Foreigy Sarvice Orficar fo:

waich the Ageacy will be mailog all eutitlesent paguents and actually

ka t1ll recelve no funds fron aby coves, tais paragrapa, which is sisleadius,

has no reanlag in Subject's contract and it 13 bereby reconcended that

It be deleted iron CRABANAC's Supplesent.

4.. Funticer, in future cases when a cover is so light that Subject

will not be receivlog funda fros cover 1t 1s

reconcended that no "ortsat"

paragrapa be ibeluded in Supplerenta or Coatracts.

Attachzent

Raf. A and B

detalisod

VILLIR. QUEL

Chier, Corert Cisias Brasca

patien taller tro

this laser?.

---

## Page 44

4-00000

066 65-21763

& AUS 1335.

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 reiention of future royalties which might be carned by Terence S.

CRABANAC as a Icsult of his literary efforts. We believe that he is

entitled to retain such royalties withou an offset against his Agency

salary.

We have been advised by Mr. Gene Stevens, WE/Support, that

CRABANAC's cover does not include the role of a writer; CRABANAG'S

cover for status will only be a light ons of a retired Foreign Service

Therefore, paragraph 7 of his contraci dated 4 Jily 1965 may

remain as written. Royalties from the fictional works that he writes as

a profitable hobby will not ba emoluments received from or through his

'"cover activities."

Toman. D. Block

NOR VAN D. BLOCK

Office of General Counsel

cc: Chiei, Covert Claims Branch

MI. Gene Stevens,

WE/Support

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## Page 45

14-00000

'3

AUG 1093

MEMORANDUM FOR

: Office of General Counsel

ATIENTION

SUBJECT

: Normas Bloci

Terence S. Crabaiac --

Retention of Royaltias by

a Coniract Employee

1. Referonce la mado to the telaphone conversation

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

this Oilice vinerein badiground inforraation relatiaz lo ibe

assignment of Terence S. Crabasas vas discussed.

2. Subject will apparently develop a cover as a writes,

a field wherein he has an already desconstraied talent based

upon several publicationg.

Tine objective of the cover is to pro-

vide a basis of attribution for 30me of his income. di the tire

of the preparation of Mr. Crabazac's contract, the specific

detail of his cover was untnown.

3. Request your opinion in regard to the reiention of

poasible royalties carrad by Crabanas as a resuit of àis

literary efforts or whether such income should be proparly

offaat.

Josepo 3. Ragen

Chief, Contract Personnel Division

Aitschments.

OP/CPD: AC3ro0k3/ci: 2'August 1965

Distrisution:

Orig & 1

-- Addressce

_- CFD

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## Page 46

4J02y65

Nir. Terence S. Crabanac

Dear Ms. Crabanac:

The Uaited States Governaaaai,

as ragregenied by the Coatractig

Officer, hereby contacts with you as a Cossaci Impioyse for Me 1138

of your sarrices and tho pariorzance uf duties of a confideatial sature

under the foliowing terray and conditions:

1. Compeasalon. In full considerasion for ine use of your serrices

and the perioriasace of specified conidantial duties you will be congen-

sated in an 3a0unt calculated at tha raie vi $19, 830 per arauis. In addision,

you are herein authorized legislative salary adjustmenty, vittin-grado

pronsotiona aid, if applicabla, a post dillerential la substastial conioraancs

with rules aad regulations apolicabla to Governmeni appolated engloyeei.

Payments will be taade as raquestad by you in writing in an approved tran-

Taxes will be withheld thereirom and submitted by this organisation.

2. Allorances. You will be entilled io: (a) Living quarters allow-

ances in cariorsiance with regulations di this orgasization applicabla to

is appoinied personse!. In the event you are furnished quartars by tha

Governmant jou vill not be entitled to the liviag qua-tra allowances berein

indicaied..

(b) Coas-of-livinz allowances

in conjormance with applicable regulations of this organizason including,

but not limited so, a post allowance, a transfer allowancs aad a home Je=-

vice transier aliowance.

3. Travel.

You will ba advanced or reimburaed funda for travel

and transportation expenses far you, your dependents, your housahold

effects and your persocal automobile to and Com your permanen: pos:

of assignmeni, and for you alone jo= authorized operational travel. In

eddition, you will be entitled to storage of such household and personal

ellecis as are not shipped, in conformance with applicable Coveraraaz:

regulstiong: Tos raay ba entitled to per dies. in lieu of subaisience i.

the course of all travel periormod heresadar and, whea authorized, to=

you alona while oa teragorary duby aivay froz j0ur parzanaa: pog: of

assignizent.

All travel, ¿inspormation azd per dien provided ¿o= unda:..

mais paragizon must be properly autorised, and expenses incurred hero-

under are subjaci to pajgai and accoutag in comolaace wim applicabla

Goreinreat regulations.

1. Oaarattora! Expenses. You will be adianced or soimbursed funda

lo: nacs33a59 0323102a1 apen303 incladingo and noi limliod to, entertals-

ment and to purebage of information, du spscifically approved Sy lie ov-.

erameni. Such sunda will be aubjoc: to paymes: and accounting is compli-

anco will applicabie Coveraneni regitioni.

5. Balal 1i lo recognital dost your failure do Recoan: In= or

Chal Co 136l09019: D1 63 Mbd0130r 023y Garlor Cardo! 109..

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## Page 47

14-00000

•. •

ó. Benolta. lul jou will Do chiitléd do death and dicauility bonelles

egil do trono audioriced lusi tho ¿ciscal Employeas' Compensation delo

29 amendod, Gluino by jou, jour heira, oi legal repretentatives uador

Chio paragrapi vill be proceaued by this organizacion in acordance vii ito

procedras in buch manaor as not to Impair securizy. •

(5) Y0:1 wall ba enilied to the continuance ol pay and

allowances In a manner sirailar to that der forti in Che Missing Persons

Act (50 U.S. G.r., Aps. 1001-1015).

(c) You will be crüitled to sick, anaua! and hora leave

(irreluding traval expanzas incident thereto) equal to and subjact to tha arro

•Tules and regulations applicable to Governaient appointed employees.

Annual leavs may only be taier at times and places approved la advance by

appropristo Government repregentatives. All accruad but unused leave

credited to you: formes account aa an appoinied employes of this organiza-

tion will ba traasferred'to the leave ascoun: established for you hareunde..

{2) As a Govornment employee under contact converted

from staff status ilibout a break in serrice, it is required thai you costinue

to mase contributions to the Civil Service Retiremen: Fund. Such contri-

butions (presently six and one/hall par ceni (6-1/200)) will be daduciad by

the Governmeni from tha bagic compensation due you hereunder, i.c..

presently $19,860 per arnus.

(e) You are hercin authorized to apply for encollient

in a healta insurasce program for certain selected Contract Employeds of

this organizacion, s'ibject to all the tarras and conditions of thai program.

Il accepted, this organization is presently autorized to bear a portion of

tho premium cost, you iill ozar the sernaindar.: Your financial concribution

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

periodic intervala to ba asiaulianed by this osganization.

(5) (1) This organization ly authorized to pay the cost

of necessary hospitalization and related travel expenses for ilinase o, injury

incurred by a United Saisa citizen full-line Contract Einplojee in tha lisé

of dusy whila abroad.

(2) This organication may say certain necessary

cosia oi hoapitalization and relited travel espenses foi illness os injury

incurrad by tha dependento of a United States citigen full-time Contraci

Employes permanenily assigned aoroad, while they ara located abroad.

I: is undezatood and agreed that the eligioility ardi extent of the participation

Dy you and your dspendents in the above medical programa vill be ir. cor-

jornaace via the rules, regulations and policles o this organisatios la

cifoot ai the tima an illresa. 0r injury is incurred, tai all chaima will 5a

submisied only to this organication and thai adjudication oi such chuns by

this organization shall be final and conclusive. !

trouga your cover activinas are the aro pariy of the 3. S.

Procedurally, que!. caolmon. Mill ba cioet agairbiamount des youu

undos tria apreemon: and uro detonloded to be pagaioni be dio Ciovara-

murthgconader and 1or Fedail income iis parposes. li Core: 0:012z1113

arcoed tiosa dae you ualor sis contrace,

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## Page 48

8. Executoa of Pacumenis: So la ma performance di services undos

Mis contrace, jou ase:a Mo cus:ody 0! Governone inads or Mle delo

ol record to properly ol any daluro whalsoever Mad Macrover Jiiurio, Mileh

properly has in faci deon purchased with nionics o! L= U.S. Goveramea:,

you harady recogniza and icino ledge tho existenco oi a dust raiadionsalp..

citier excess o: constructive, and you nares to ciscuie shrivor docu-

menis nay be coquirui by the Goverrinen: do evidence this colationgais.

9. Secrecy. You will be required to leep forever secret tila contract

and all inormation which you may obtain by reason harcoi fueless selcazed

la writing by La Covernment fiom such obligation), with sull inoivledgo tiral

violadon of suca secrecy may suojec: you so criminal prósecurion uader tha

Espionaga LIns, dated 25 June 1918, a3 amended, and other applicadio law

and reguisions.

10. Instructions. Instrucions received by you from the Gorgrnment

in brieliag, trainiaz or otherwiso are a partoi this contract and are icor-

porated hereia, provided that such insiructions are noi inconsistent win

the terras hereos.

11. Urauthorizad Commitraints. No promises or commitrents per-

mining to righis, privilegas or benafiis other tin those expresaly stipulates

in wildag in this agreement or aby arentinesi therato siall be binding on

12. Teren. This contract is ellective as of 4 July 1965

.. and shall

continue tereafter for a period of two (2) years unless sooner terminaied:

(a) Upon sixty (50) days' acial polica by cither party bereto, o=

(b) Upon acial notica to you in the even: the resulis of an inisially

requirod medical carmination are determiaed by this organicalion

to be unsatisfactory, 0s..

(a) Without prior notice by tha Government, in tae eveni of a

breaca of this contract by your violation oi the security provisioas

hereof o= by your oberwise rendering yoursel unavailable for

acceptable service.

Subjaci to tas availabilit; of appropriationa, this agreement may be extendad

lipon rotice from the Coveranes!.

In the event of valuntary tarzication on

your cari or cermiation lor causa by the Covernment prico to tos expiration

of this agreemeni of any renewal thereo!, you will noi be entitied io resura

travel expendes to the Ünited Sat3. Termination of thie agreesanà vi!!

rot release you from die obligationa di any security oal you razy be requirei

to ta!'=.

UNITED STATES GOVERNMONT

ACCEPTED:

Contracing Oilicer

15;

FIENESS:

APPROVED:

1.51

151

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