CABLE REGARDING ACTIVITY IN VENEZUELA QUOTING DAVID PHILLIPS
Originator: CIA
To: DIRECTOR
Document date: 03/02/1977
Document type: PAPER - TEXTUAL DOCUMENT

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2023 RELEASE UNDER THE PRESIDENT JOHN F. KENNEDY ASSASSINATION RECORDS ACT OF 1992

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CITE CARACAS 32384

IMMEDIATE DIRECTOR.

WNINTEL RYBAT

C/S Comment:*Requested reactions

to U.S. media reperts that CIA has

made secret payments to past and

present foreign leaders.

EF: DIRECTOR 998535

1, NEW YORK TIMES ARTICLE OF 1 MARCH HAS BLOWN THE LID OFF

THE SITUATION HERE ONCE AGAIN. SPANISH TRANSLATION OF WHAT

APPEARS TO BE FULL ARTICLE HAS TWO QUOTES BY DAVID PHILLIPS TIED

TO "SOURCES OF INTELLIGENCE" AND "AN OLD OFFICIAL OF THE CIA" IN

SUCH A MANNER THAT ON QUICK REING IT APPEARS ALL IS ATTRIBUTABLE

TO DAVID PHILLIPS. THIS IS EXACTLY WHAT THE GOVERNMENT OF

•VENEZUELA DID, NET BURDEN OF THIS SECTION IS THAT WHILE DAVID

• PHILLIPS WOULD SWEAR CARLOS ANDRES PEREZ AND LUIS ECHEVERRIA

ALVAREZ NEVER RECEIVED ANY PERSONAL BRIBES, THE USG GAVE THE

GOV AND GOM FUNDS FOR JOINT OPS OF COMMON BENEFIT. THIS DAVID

PHILLISE KNEW BECAUSE HE WAS CIA CHIEF IN BOTH VENEZUELA AND MEXICO.

2. A GOV STATEMENT, ISSUED BY THE PRESIDENT'S PRESS OFFICE

LAST NIGHT, CATEGORICALLY DENINES THAT THE GOV HAS EVER RECEIVED

AID IN ANY FORM FROM A FOREIGN GOVERNMENT FOR USE IN INTELLIGENCE

OPERATIONS, IT SAYS: " IN THE NEW (NYT) VERSION OF THE SPECIFIC

SECRET

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SLANDER, DESIGNED TO DENIGRATE THE GOVERNMENT OF VENEZUELA, THEY TRY

TO MALICIOUSLY CLARIFY THE ABOMINABLE CALUMNY RE FUTED BY PRESIDENT

CARTER'S LETTER STATING THAT THE REPORTS HAVE NO BASED BY USING

TESTIMONY OF AN EX-AGENT OF THE CIA WHO SAYS HE SERVED IN VENEZUELA

WHEN PRESIDENT CARLOS ANDRES PEREZ WAS MINISTER OF INTERIOR". "FINALLY,

WE REJECT THE POSSIBLITY THAT THE DEMOCRATIC GOVERNMENTS ( PLURALS

OF VENEZUELA COULD ALLOW THEMSELVES TO BE ASSOCIATED IN ANY WAY IN THESE

ILLEGAL AND SHAMEFUL ACTIVITIES WITH THE CENTRAL INTELLIGENCE

AGENCY OF THE UNITED STATES GOVERNMENT".

3. EVENING OF 1 MARCH CHARGE (DOMS WAS CALLED IN BY

VENEZUELAN FOREIGN MINISTER ESCOVAR SALOM WHO SAID PRESIDENT PEREZ

WAS AGAIN GREATLY OFFENDED BY THE LATEST NEW YORK TIMES ARTICLE AND

..: DEMANDED AN EXPLANATION. DOM REPLIEDID DAVID PHILLIPS HAS RETIRED AND

IS NO LONGER ÁN ACTIVE EMPLOYEE OF THE CIA: 12) UNIDENTIFIED •

"INTELLIGENCE SOURCES" DO NOT NECESSARILY

ME AN EX-CIA PERSONNEL AND MÁY NOT EVEN BE USG IN TELL IG ENCE - A SS OC LA TE D

OFFICIALSI AND (3) NOWHERE IN THE LATEST STORY IS THERE ANY

INDICATION THAT ANY ACTIVE USG SPOKESMAN IS INVOLVED IN MAKING

STATEMENTS TO THE PRESS. ESCOVAR WAS SURPRISED AND

HIMSELF, AT LEAST, SOMEWHAT MOLLIFIED TO LEARN THAT DAVID PHILLIPS

SECRET

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WAS NO LONGER EMPLOYED BY THE CIA. ESCOVAR, SUPPOSEDLY AT THIS

POINT SPEAKING ONLY FOR HIMSELF AND NOT THE PRESIDENT, SUGGESTED

THAT THE CIA DISAVOW PHILLIPS' STATEMENT. DOM TOLD FORMIN -THAT

CIA HAS NO CAPABILITY FOR THIS SORT OF THING AND FOR

SOME TIME HAS BEEN UNDER STRICT INJUNCTION NOT TO TALK TO PRESS.

ESCOVAR THEN SUGGESTED THAT USG AT SOME OTHER.

LEVEL REFUTE LATEST

NYT" DEFAMATION", PERHAPS THROUGH THE CARACAS EMBASSY, DOM REPLIED

THAT OF COURSE HE HAD NO AUTHORITY TO ACT ON ANYTHING LIKE THI'S

BUT WOULD REFER IDEA TO THE STATE DEPARTMENT FOR CONSIDE RATION.

ESCOVAR SAID WHOLE SUBJECT WAS PAINFUL TO PRESIDENT • THAT IT WOULD

BE USED AGAINST THE AD PARTY BY THE OPPOSITION IN THE FORTHCOMING

ELECTORAL CAMPAIGN, AND THE GOV WANTED TO LET IT DIE: WAS THERE

NOT SOME WAY THAT THE USG COULD RESTRAIN EX-INTELLIGENCE OFFICERS

AND THE NEW YORK TIMES FROM REOPENING THE WOUND. THE

DOM REPLIED THAT THE FOREIGN MINISTER SHOULD CERTAINLY REALIZE

IN THE UNITED STATES NO SUCH THING COULD BE DONE: TO WHICH THE

FOREIGN MINISTER RUEFULLY RESPONDED, " YES, BUT THE VENEZUELANS DON'T

KNOW THIS".

4. ACCORDING TO CARACAS DAILY "ULTIMAS NOTICIAS" OF 2 MARCH,

AD. DEPUTY LUIS GUEVARA IS ORGANIZING A PROTEST DEMONSTRATION

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AGAINST THE CIA AND THE PRESS ATTACKS ON PRESIDENT PEREZ.

DEMONSTRATION WILL BE FROM CATIA SUBURB OF CARACAS TO PLAZA

O'LEARY IN EL SILENCIO SECTION AND OTHER POLITICAL PARTIES_ WILL

BE INVITED TO JOIN IN. GUERVARA, WHO IS MEMBER OF JAIME LUSINCHI'S

PRESIDENTIAL CAMPAIGN COMMITTEE CLUSINCHI IS GENERALLY BELIEVED TO

BE CAP'S CHOICE FOR HIS SUCCESSORS, SAID THAT

PEOPLE FROM THE INTERIOR OF VENEZUELA HAVE ALSO EXPRESSED THEIR

• DESIRE TO JOIN IN THIS DEMONSTRATION. SNOTE THAT AREA CHOSEN

FOR DEMONSTRATION IS • PROBABLY BY DESIGN, FAR REMOVED FROM EMBASSY

AND OTHER U.S, INSTALLATIONS IN CARACAS AND SHOULD NOT INVOLVE

THEM UNLESS HOTHEADS TAKE OVER AND TRY SOMETHING ON THEIR OWN.I

5. ALL OF FOREGOING TENDS TO REACTIVATE DANGEROUS SITUATION

OF 22 FEBRUARY, ALTHUUGH SO FAR THIS PHASE DOES NOT APPEAR TO HAVE

AS MUCH STEAM IN IT AS WHEN CRISIS FIRST DEVELOPED. AS IS NOW

WELL-ESTABLISHED, CAP IS MOST SENSITIVE BORDERING ON PARANOIC,

HIGHLY VOLATILE, AND MORE THAN A LITTLE POLITICALLY OPPORTUNISTIC.

IF THERE IS FURTHER PROVOCATION, WE CAN PRETTY WELL GUARANTEE THAT

HE WILL REACT STRONGLY, QUITE POSSIBLY STRIKING BACK AT THES

CIA THROUGH FORMAL SEVERING OF LIAISON RELATIONSHIPS AND PNGS OF

DE CLARED OR IDENTIFIED CIA PERSONNEL, STATION OPS POSTURE AND

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COVER OF OTHER PERSONNEL IS NOW SUCH THAT THIS TYPE OF ACTION

SHOULD NOT SERIOUSLY DAMAGE OUR OVERALL EFFORT HERE, BUT HEAD-

QUARTERS SHOULD RECOGNIZE THAT FOR AWHILE WE WILL BE WORKING IN

WHAT IS A VERY HOSTILE OPS CLIMATE•

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